Primerica Announces Agreement to Acquire e-TeleQuote

  • Senior health insurance distribution to expand Primerica’s broad financial services portfolio
  • Enhances Primerica’s middle-income focused client reach

Business Wire, April 19, 2021

(Duluth) – Primerica, Inc. (NYSE: PRI), a leading provider of financial services to middle-income families throughout the United States and Canada, and e-Telequote Limited, a senior health insurance distributor of Medicare-related insurance policies, announced today that they have signed a definitive agreement under which Primerica will acquire 80% of e-Telequote Limited’s operating subsidiaries (collectively, “e-TeleQuote”) at an enterprise value of $600 million. Under the terms of the agreement, Primerica will purchase the remaining 20% stake over a period of up to four years. The companies also signed a distribution agreement for Primerica’s U.S. sales force to refer Medicare Advantage and Medicare Supplement sales to e-TeleQuote. The transaction is expected to close in July 2021.

“This acquisition will combine the strengths of two successful companies, positioning both for expanded growth,” said Glenn Williams, Primerica Chief Executive Officer. “The synergies between the client relationships of our sales force and e-TeleQuote’s expertise in senior health insurance plans are a major factor in our decision to enter this space. e-TeleQuote’s specialized technology platform and dynamic sales centers align perfectly with Primerica’s powerful distribution capabilities, allowing us to deliver additional value to our clients, sales representatives, employees, and stockholders.”

Williams continued: “This announcement is the culmination of several years of work by our strategy and leadership teams and furthers our long-term strategic plan. e-TeleQuote is the right size acquisition for us in an adjacent, high-growth sector. We look forward to welcoming the e-TeleQuote team to the Primerica family and working together to expand our positive impact on the financial lives of middle-market clients of all ages.”

Headquartered in Clearwater, FL, e-TeleQuote is an innovative, fast growing business in the senior health insurance distribution space with a broad geographic reach into all 50 U.S. states and Puerto Rico. Led by strong entrepreneurial management, the 10-year-old company is well-positioned to expand its role as a distributor of Medicare-related plans, which help seniors defray medical expenses and provide peace of mind.

One of e-TeleQuote’s core strengths is the breadth of its carrier relationships. e-TeleQuote offers products from a wide array of carriers (including United Healthcare, Humana, and Anthem) with over 2,700 Medicare Advantage plans available. e-TeleQuote also has a growing Medicare supplement business with 4 carriers. This breadth aligns well with Primerica’s distribution footprint and will enable Primerica to serve the financial needs of clients more fully throughout their lifecycle. Consumers may obtain information on available plans through e-TeleQuote agents or its consumer facing website

“We are excited about the many opportunities that present themselves through the combination of our two organizations,” said Anthony P. Solazzo, CEO and Founder of e-TeleQuote. “We believe that e-TeleQuote’s carrier agnostic approach to helping Medicare beneficiaries find solutions to their healthcare needs, as well as our other core values, align perfectly with Primerica. Both organizations are dedicated to serving constituents who have long been underserved and do so through an educational approach that meets the needs of consumers. It is the similar commitment to consumers, employees, and our communities that makes this a mutually beneficial arrangement.”

Financial Terms

Under the terms of the share purchase agreement, Primerica will acquire 80% of e-TeleQuote at a $600 million enterprise value and a $450 million implied equity value based on an estimated $150 million in net debt at closing. Primerica will fund the transaction – which includes the 80% equity stake for $360 million as well as replacing e-TeleQuote’s existing debt with lower cost funding provided by Primerica – with $370 million in cash, a $125 million draw on its revolving credit facility, and a $15 million seller’s note. e-TeleQuote’s stockholders will have a potential earnout of up to $50 million payable in cash if specified financial targets are achieved in 2021 and 2022.

Specifically, Primerica will acquire 70.25% of e-TeleQuote from The Resource Group International, Limited, representing its entire ownership stake, and 9.75% of e-TeleQuote from e-TeleQuote management. Following the closing, the remaining stake will be held by e-TeleQuote’s management. Structural components such as the potential earnout, call and put options and a new management incentive plan are expected to incentivize and encourage retention of key members of the e-TeleQuote team. The call and put options will be exercisable over up to a four-year period. The transaction is expected to be immediately accretive to Primerica’s earnings.

As a result of this announcement, Primerica has suspended stock buybacks through the remainder of 2021 but expects to resume repurchases in 2022.

Strategic Rationale

Primerica’s acquisition of e-TeleQuote is a natural extension of its strategy to distinguish itself as the leading distributor of financial services products to meet middle-income families’ evolving needs. With a product portfolio that provides a solid foundation for financial security – term life insurance, annuities, IRAs, managed investment accounts, mortgage lending, pre-paid legal services, and the coming addition of senior health insurance plans – Primerica is positioning itself to become an even more important part of the financial lives of the overlooked middle-income market. Senior health insurance plans play a critical role in bridging the gap between Medicare and the healthcare expenses seniors often face after turning 65 years of age. Acquiring e-TeleQuote will support Primerica’s already formidable distribution capabilities, enhance Primerica’s earning streams, extend Primerica’s reach into new markets and create recruitment and referral opportunities for Primerica’s sales force.

Approvals and Timing

The transaction has been approved by both companies' boards of directors and is expected to close on July 1. The transaction is subject to regulatory and other customary closing conditions.


Goldman Sachs & Co. LLC served as financial advisor to Primerica and Sidley Austin LLP served as legal counsel to Primerica. J.P. Morgan Securities LLC served as financial advisor to e-TeleQuote, and Orrick, Herrington & Sutcliffe LLP served as legal counsel to e-TeleQuote.

Webcast/Conference Call

Primerica will conduct a webcast at 5:30 p.m. Eastern on April 19, 2021 to discuss the planned acquisition. The investor webcast can be accessed at the Company’s investor relations website, A webcast replay will be available on the website after the call. For additional information on the pending transaction, please see

Forward-looking Statement

This press release contains forward-looking statements made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this press release do not constitute guarantees of future performance. Those statements, which are not strictly historical statements, including, without limitation, statements regarding the proposed acquisition of a majority stake in e-TeleQuote; the benefits of the acquisition of a majority stake in e-TeleQuote, including the expansion of Primerica’s distribution and lead curation capabilities, potential new cross-selling opportunities and market reach, diversification of Primerica’s earning streams, acceleration of Primerica’s long-term strategic plans and movement into an adjacent sector, potential enhancement of growth and earnings expectations, and the potential value and synergies that the strategic partnership may deliver, including to Primerica’s clients, sales force, employees and stockholders; expectations regarding new debt; and the expected timing of the proposed transactions, constitute forward-looking statements.

Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by the forward-looking statements, including, without limitation, the ability of Primerica and the selling shareholders to close the announced transaction; the ability of Primerica to realize the potential benefits of the acquisition of a majority stake in e-TeleQuote; the possibility that the closing of the transaction may be delayed; potential disruptions to Primerica’s and e-TeleQuote’s operations, distraction of management and other risks related to Primerica’s integration of e-TeleQuote’s business, team, technology and sales centers; e-TeleQuote’s ability to recruit agents; e-TeleQuote’s ability to retain management and key employees; the ability of e-TeleQuote’s sales agents to place policies based on leads provided by Primerica; revenue growth and recognition of revenue; products and services, and their development and distribution; risks related to economic, regulatory and competitive factors; risks related to Primerica and e-TeleQuote’s key strategic relationships, including e-TeleQuote’s carrier relationships; and other risks detailed in Primerica’s filings with the Securities and Exchange Commission. Primerica assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.


Primerica Hits Single Month Investment & Savings Products Sales Record of Approximately $1.1 Billion in March

Company Projects Investment Sales of nearly $2.8 Billion in Q1 2021

Moody's Investors Service - April 20, 2021

(Duluth) – Primerica, Inc. (NYSE: PRI), a leading provider of financial services to middle-income families throughout the United States and Canada, today announced that for the first time in its 44-year history, it achieved a single month Investment & Savings Products (ISP) sales record of more than $1 billion in March 2021. The Company noted that it expects first quarter 2021 ISP sales of approximately $2.8 billion.

“Over the past year, the COVID-19 pandemic caused middle-income families to clearly understand their need for protection today and investments for tomorrow. As a result, more consumers are turning to Primerica’s representatives for financial guidance as they work to prepare for the future,” said Glenn Williams, Chief Executive Officer. “In March, we experienced record ISP production in both the U.S. and Canada, which is a clear indication that middle-income consumers are taking action in this important area of their financial game plans.”

The Company noted that momentum in its ISP business has been building since early in the 4th quarter of 2020, and the production has been driven primarily by strong mutual funds sales and increased activity on the managed investments front. Primerica also saw increased client demand for products with guarantees, as evidenced by strong variable annuities sales during the first quarter, as well.

“In addition to health challenges, middle-income families throughout North America have faced unprecedented financial challenges brought on by the global pandemic,” added Williams. “Our sales force and the entire Primerica team remain focused on putting our clients’ needs first as we continue our work to guide them in reaching their financial goals.”


Primerica Included in 2021 Bloomberg Gender-Equality Index

Business Wire, January 27, 2021

Duluth – Primerica, Inc. (NYSE: PRI), a leading provider of financial services to families in the United States and Canada, today announced that the Company has been selected as one of 380 companies across 11 sectors to be included in the 2021 Bloomberg Gender-Equality Index (GEI). The GEI represents 44 countries and regions and companies reflect a variety of industries, including financial services, automotive, consumer services, engineering and construction, and retail.

“Primerica is committed to diversity, equality and inclusion in all areas of our business, including the number of women in leadership roles and in our talent and succession planning programs,” said Glenn Williams, Primerica CEO. “We’re proud our Company has been recognized as one of the 138 U.S.-headquartered companies to be included in the 2021 Bloomberg Gender-Equality Index.”

The GEI brings transparency to gender-related practices and policies at publicly listed companies increasing the breadth of environmental, social, governance (ESG) data available to investors. The comprehensive, transparent GEI scoring methodology allows investors to assess company performance and compare across industry peer groups.

The reference index measures gender equality across five pillars: female leadership and talent pipeline, equal pay and gender pay parity, inclusive culture, sexual harassment policies, and pro-women brand.

Primerica was also one of the companies included in the 2020 GEI, which included 325 companies headquartered across 42 countries and regions.

“The companies included in the 2021 GEI are expanding the ESG data universe to include gender-related data that investors are demanding today,” said Peter T. Grauer, Chairman of Bloomberg. “Their commitment to disclosure is making the business case for inclusion and driving transparency in the markets.”

Through disclosure of gender-related metrics using the GEI framework, the firms included in the 2021 GEI have committed to providing a comprehensive look at their investment in workplace gender equality and the communities in which they operate, raising the bar of what should be expected from other companies within the same industry. Primerica was included in this year’s index for scoring at or above a global threshold established by Bloomberg to reflect a high level of disclosure and overall performance across the framework’s five pillars.

Both the framework and the GEI are voluntary and have no associated costs. The GEI is a reference index and is not for use as a financial benchmark. The index is not ranked. While all public companies are encouraged to disclose supplemental gender data for their company’s investment profile on the Bloomberg Terminal, those that have a market capitalization of USD1 billion are eligible for inclusion in the index.


Primerica to Hold Virtual 2021 Senior Leadership Meeting

Odessa American, January 7, 2021

Primerica, Inc. (NYSE : PRI), a leading provider of financial services to families throughout the United States and Canada, will kick off the new year with a virtual conference for its top sales leaders on January 7-8, 2021. The event, which will center on initiatives for 2021 and beyond, replaces the Company’s traditional in-person leadership meeting, and it is expected that more than 800 Primerica field leaders will participate. The meeting also provides a platform for our most successful representatives to share their methods for helping even more middle-income families become properly protected and financially secure.

“The disruption during 2020 confirmed that more families than ever need the financial solutions that Primerica provides to help them achieve their financial goals,” said Glenn Williams, Primerica CEO. “Thanks to the outstanding efforts of our sales force and home office team, we exhibited adaptability that enabled us to effectively meet the financial needs of middle-income families despite the new realities brought on by the global pandemic.”

Williams continued, “In 2021, we will continue to serve our clients in this new environment and work to build on the momentum we achieved in 2020. Over the past several years, we have deployed industry-leading technology to make our client interactions safer, faster, and more convenient. These improvements also helped make our business opportunity more attractive to thousands of entrepreneurs across the U.S. and Canada. We enter the new year more resilient, more confident, and better positioned to help families than ever before.”

The Company also will celebrate 2020 production1 success during the meeting, including total face amount of life insurance in force of approximately $859 billion at year end, as well as an increase in projected client asset values to more than $80 billion. As of December 31, 2020, Primerica had 134,907 independent life-licensed representatives, including 3,597 licenses that were issued on a temporary basis due to COVID-19 and 2,508 licenses in states where the renewal date was extended. Additionally, Primerica ended 2020 with more than 25,800 mutual fund-licensed representatives. Other 2020 production results include:

  • Recruiting of New Representatives: 400,345
  • Term Life Insurance Face Amount Issued: $109 billion
  • Term Life Insurance Claims Paid to Policy Beneficiaries: $1.5 billion
  • Investment and Savings Products Sales: $7.8 billion
  • Closed US Mortgage Volume (brokered): $442 million
  • Closed Canada Mortgage Volume (referred): $66 million CAD

“In 2020, our field leaders were challenged to rise to new levels. Their shared passion for helping our clients produced record success in one of the most disruptive years of our generation. Due to their hard work and that of our employees, Primerica is well-positioned to continue to deliver value to all of our stakeholders in 2021 and beyond,” says Williams.

1. All production results contained herein are projected.


In the Face of COVID-19, Primerica Survey Finds American Families Have Mixed Feelings About Personal Finances

Odessa American, October 28, 2020

A new study finds the majority of middle-income families are positive about their current financial situation in the face of COVID-19, but many are worried about the future. Sixty-four percent rate their personal finances positively, but 50% report that their income is falling behind the cost of living, and just 31% think they’ll be able to save for a comfortable retirement.

These are the initial findings of the Middle-Income Financial Security Monitor (“the Monitor”) from Primerica Inc. (NYSE: PRI), a leading provider of financial services to middle-income families. The Monitor is a recurring quarterly poll that gauges the financial preparedness, habits, and concerns of those with annual household incomes of $30,000-$100,000.

“We are encouraged by the findings in Primerica’s latest Financial Security Monitor. Middle-income families are taking steps to save for the future and protect their assets, despite facing challenging economic times,” said Glenn J. Williams, CEO of Primerica. “Overall, they remain positive about their finances, which is a testament to their resiliency. Every day throughout North America, Primerica’s representatives are proud to help hard-working families plan for their financial futures.”

Key Findings from Primerica’s Middle-Income Financial Security Monitor

How are families doing financially?

  • Households worry about both their physical and financial health. Their most common worry was of their physical health (43%); however, saving for retirement (27%), the current state of their finances (23%), making housing payments (20%), and paying off credit card debt (19%) are their next most common worries.
  • They aren’t as prepared for the unexpected as they need to be. 39% do not have an emergency fund that would cover an expense of $1,000 or more, and 51% would run out of money to meet basic needs within three months if they or their family’s primary breadwinner lost their job.
  • Families are taking steps to save for the future and protect what they have, but they could do more. 78% have a savings account, 56% have a retirement account provided through work, and 63% have a life insurance policy to protect what they have.

Are families equipped with the financial information they need?

  • More than 80% of families we studied are confident in their knowledge of important financial fundamentals like building good credit, budgeting and saving. However, they are less confident in more complex financial matters like setting up an Individual Retirement Account (IRA) (65% confident), buying life insurance (64%), and investing in stocks (50%). Only 42% know where to find a financial professional who could provide assistance.

How is the pandemic affecting the lives of middle-class families?

  • The ongoing pandemic has caused 27% of working families to decrease spending and 20% to increase personal debt.
  • More than 75% of working Americans feel the Coronavirus Aid, Relief, and Economic Security (CARES) Act helped at least a little, but 19% feel it was no help at all. If another government payment is sent this fall, families would use it to pay bills (42%) or pay down debt (34%).

The Value of Professional Financial Advice
Primerica’s Monitor graded study participants based on whether or not they engage in five financial preparedness fundamentals, including saving for their future and protecting their income through life insurance. The average grade was a C, but 21% of those who have met with a financial professional earned an “A” compared to just 8% of those who have not.

About Primerica’s Middle-Income Financial Security Monitor
The Monitor is a quarterly national survey to monitor the financial health of those with annual household incomes of $30,000-$100,000. Change Research conducted online polling from September 25-28, 2020. Using Dynamic Online Sampling, Change Research polled 837 adults. Post-stratification weights were made on gender, age, race, education and Census region to reflect the population of these adults based on the five-year averages in the 2018 American Community Survey published by the U.S. Census. The sampling error is 5%.


AM Best Affirms Credit Ratings of Primerica, Inc. and Its Subsidiaries

Business Wire, October 1, 2020

Duluth – AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” of Primerica Life Insurance Company (Nashville, TN) and its affiliates, National Benefit Life Insurance Company (Long Island City, NY) and Primerica Life Insurance Company of Canada (Mississauga, Ontario), collectively referred to as Primerica Life. Additionally, AM Best has affirmed the Long-Term ICR of “a-” of Primerica, Inc. (Primerica) (headquartered in Duluth, GA) [NYSE: PRI], which is the holding company for the group’s insurance and non-insurance operating companies. AM Best also has affirmed the Long-Term Issue Credit Rating of “a-” on $375 million 4.75% senior unsecured notes due 2022 of Primerica. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Primerica Life’s balance sheet strength, which AM Best categorizes as very strong, as well as its very strong operating performance, favorable business profile and appropriate enterprise risk management.

Primerica Life’s ratings recognize the group’s favorable risk-adjusted capitalization and generally high quality investment portfolio, as well as its favorable reserve profile, which is almost exclusively composed of term life insurance and is viewed as low risk on AM Best’s product continuum. However, the group continues to maintain higher allocations to NAIC class 2 bonds relative to industry averages. Risk-adjusted capitalization ratios are dampened qualitatively by heavy reliance on captive reinsurance solutions to fund its Regulation XXX reserves, which will moderate as new business is issued under principles-based reserving practices. The ratings also reflect strong liquidity and positive financial flexibility, as well as solid financial leverage and interest coverage ratios that are within AM Best’s guidelines for these ratings.

Primerica Life’s earnings have been consistent with AM Best’s expectations, as the group continuously has generated solid levels of GAAP and statutory net income due to favorable loss ratios, although there has been some uptick in claims as a result of COVID-19. Premium growth has been generally favorable, and the company has been able to pivot sales efforts during the pandemic successfully. Premium growth has been offset partially by higher-than-industry lapse rates, and general expenses per policy remain on an upward trend. Primerica Life’s operating profile benefits from non-insurance revenues that represent a substantial portion of overall GAAP revenues through the sale of mutual funds and other investment savings products, along with distribution of other manufacturers’ life and annuity products, which generates fee-based revenues and provides a source of earnings diversification.

Primerica Life’s ratings also recognize its status as one of the largest writers of term life insurance in the United States, with its continued strong market position attributable to its dedicated distribution affiliate, Primerica Financial Services, LLC. This integrated distribution includes slightly over 130,000 life agents with almost 26,000 mutual fund-licensed representatives across the country. Primerica Life’s business profile in the United States and Canada is reinforced further by its experienced management team, which successfully built and supports its sizable sales force. However, its business model is heavily reliant upon the need to continuously recruit agents to maintain its competitive advantage, and initially the COVID-19 pandemic created some challenges with agent licensing, which are now normalizing. Offsetting rating factors is Primerica Life’s somewhat narrow insurance business profile focus, which is almost exclusively focused on term life products. However, Primerica continues to expand its affiliated relationships, and AM Best notes a new mortgage brokerage program initiated in partnership with Quicken Loans, whereby Primerica’s licensed Mortgage Loan Originators can now broker mortgage loans in an effort to further diversify its business profile.


This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit


Being Financially Prepared Matters in a Pandemic

These steps can help safeguard your family’s financial future now and well after the crisis is over.

Estee Faranda, Contributor, U.S. News & World Report, September 21, 2020

The financial impact of the COVID-19 global health crisis has been wide, but there are some hopeful signs. The unemployment rate has fallen from its high in April, surprising many economic observers. Still, roughly 8.5% of working Americans were jobless in August, and there's much more work to be done to safeguard the financial futures of many households.

Many Americans are being squeezed during the crisis. A recent Primerica study shared that in a survey of 662 adults with annual incomes between $30,000 and $100,000, 86% responded that they have been financially affected by the pandemic to some extent and 54% are reassessing how they approach managing money.

Despite the difficulties and uncertainties of the moment, investors don't have to feel powerless. There are several things you can do to strengthen your financial future and weather today's economic challenges, as well as future storms.

Develop a Game Plan for Financial Preparedness

The most important step you can take right now is to meet with a licensed financial professional to create a strategy for the future. I've seen time and again that people with guidance on money matters are more likely than people with no guidance to feel prepared for a personal or national crisis and to have a personal financial safety net in place.

Even an investor who doesn't make six figures can talk to a professional about developing a financial game plan to prepare for the future. Look for a financial services provider who works with middle-income families, with experience guiding people through difficult times. A good financial professional will help you think through what matters to you. At this time, that's likely to be bolstering your ability to care for your family financially without sacrificing future goals.

As intended and expected, many people are using their stimulus checks for household essentials, bill payments and grocery purchases. But if you can, use part of your check to take steps toward securing your financial future. By consulting with a financial professional, you can decide if that means investing, adding to or starting a retirement account, or learning more about your options.

Speak with the Right Financial Advisor For You

Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with top fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is legally bound to act in your best interests. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.

Invest in Your Financial Future

With an uncertain economy, it's both reasonable and easy to focus on the needs of today rather than working to secure your financial future. But if you wait, you will miss out on valuable years for compounding your money or worse, you may never get started. Every day counts, so use this moment to work toward your financial goals.

Now might be the perfect moment to invest in your future, as many people are delaying travel plans, eating out less and spending less on leisure activities. If you have fewer expenses and the same income, the benefits of investing this additional money could be life changing; however, you don't need a lot of additional money to make a big impact on your future. For example, if you started investing $100 a month for 40 years, here's how much you would earn at different interest rates, compounded annually:

  • 3% interest: $90,481.51
  • 5% interest: $144,959.73
  • 9% interest: $405,458.93

Here's a pro tip to get started: Consider creating different investment accounts for each of your financial goals, and then automatically allocating funds into each account. You might set up a 401(k), Roth or traditional individual retirement account (IRA) for your retirement, a 529 plan for education or a money market account for building up a three-month emergency fund. Even if you're only able to contribute a little today, making a habit of it will have a big impact on your financial strength and security in the future.


Disclosure: Primerica is not responsible for, and does not endorse or otherwise adopt, any third-party content hyperlinked or advertised from this article, which may include information about products and services that are not relevant or applicable to or offered by Primerica or its financial representatives. In the U.S., Primerica offers securities and advisory services through PFS Investments Inc., 1 Primerica Parkway, Duluth, Georgia 30099-0001, member FINRA.

Estee Faranda is CEO of PFS Investments. She heads up the securities division of Primerica, Inc., including the retail broker-dealer and investment advisory business lines. With 25 years in Financial Services, she has had leadership roles ranging from operations to distribution. She is on the board of the American Securities Association, was named a 2018 Women to Watch by Investment News, one of 16 Top Women in Wealth Tech by Investment Advisor magazine and spent six years in the U.S. Naval Reserve.


Two COVID Americas: One Struggles, While the Other Saves and Spends

Jessica Menton, USA Today, July 20, 2020

There are two COVID Americas. One hopes for an extension of federal unemployment and stimulus. The other is saving and spending.

It’s been a rough few months for Chelsie Caudle.

The mother of two has run into delays applying for unemployment and food stamps in Portland, Oregon, after Grace Salon, a hair salon that specializes in cutting and coloring, was forced to shutter in March when the coronavirus pandemic hit.

Caudle, who is self-employed, sublet a spot at Grace Salon to run her own business called Benjamin LLC. But with no income coming in for months, bills piled up, making it hard for her to afford groceries for her family, she says.

“I’m panicked. I’ve run through my entire savings,” says Caudle, who returned to work a few weeks ago. But she has put in fewer hours with less clients due to social-distancing measures.

“If the state shuts down the salon again, I don’t know what I’ll do,” says Caudle, 35.

Across the country, Sarah Walker, 31, was more fortunate. She and her husband, who live in Lehigh Valley, Pennsylvania, have cut down on their daycare and driving expenses during the pandemic since they’re both working from home, saving her family nearly $2,000 a month. That’s helped them stash more money away in their retirement accounts.

“As soon as our expenses were cut, I immediately started saving more,” says Walker, who’s a Senior Credit and Collections Specialist at a cement manufacturer. Her husband works with children in youth services.

The coronavirus recession has split America in two: those who are still financially intact, and others facing lasting scars.

Congress is set to reconvene this week at a critical juncture following a two-week recess as the $600 weekly unemployment benefits under the CARES Act are set to expire at the end of the month. Policymakers will debate whether more emergency stimulus checks and extra unemployment payments are needed to keep jobless people afloat as workers and businesses continue to grapple with the economic fallout of the pandemic.

More than two-thirds of Americans say they still need a second stimulus check from the government to help make ends meet, according to recent data from tax preparer Jackson Hewitt. And about a third of that group said the $1,200 checks needed to be more than the previous round. Only about a quarter of them say they wouldn’t need another emergency payment.

“Another round of stimulus is badly needed,” says Gregory Daco, Chief U.S. Economist of Oxford Economics. The expiring of enhanced unemployment benefits could represent a “severe shock” to people’s income since another potential round of stimulus checks likely won’t be as large as they previously were, he added.

More states have paused or rolled back their reopening plans following a resurgence in coronavirus cases, which could cause more people to lose their jobs, experts say. A staggering 51.3 million Americans have filed for unemployment over the past 17 weeks during the pandemic.

“If we do get a big pullback in income in August, that will directly affect people’s ability to spend, which creates a risk for the economic rebound,” Daco says.

In April, Caudle received a $2,200 stimulus check, which temporarily helped tide her over to cover her rent, car loan and auto insurance, she says.

“I have terrible anxiety because of the unknown,” Caudle says. “Another stimulus check would be a huge help.”

A quarter of Americans are using the stimulus money to cover major bills including their rent or mortgage, student or car loans and hospital bills. And 20% are using the money to pay for essentials like groceries or medical supplies, the Jackson Hewitt data showed.

“This should give us all pause for concern because some Americans are still in dire need of more money,” says Mark Steber, Chief Tax Information Officer at Jackson Hewitt. “People are in real pain.”

Some Americans remain unscathed

There are workers who have been more insulated from the recession and have used the pandemic as a time to build their nest egg. Nearly a third of Americans have put their stimulus money into a savings or retirement account, Jackson Hewitt data showed.

Walker, for instance, upped her 401(k) contributions and maxed out her Roth IRA.
“We’re young. I want to save as much as I can now when the market is down and stock prices are cheaper,” says Walker.

She and her husband received a $3,400 stimulus check and used part of it to pay off credit card debt, and used the remaining portion to invest.

“It’s conflicting. In one way I want the world to go back to normal because we miss our friends and our fun activities,” Walker says. “But it’s also nice to save more money and see those retirement balances shooting up.”

Some Americans are still sticking with their long-term investment strategy and are contributing more to their retirement accounts. According to Voya Financial’s retirement plan participant data, of those who changed their savings rate with the investment management company, 64% increased plan contributions in the second quarter.

The couple also has been giving back to those less fortunate during the pandemic. About 3% of people donated their stimulus checks to those in need, according to Jackson Hewitt.

Low-wage workers bear the brunt

Job losses among low-wage workers represented 56% of the total employment decline during the coronavirus recession, with the unemployment rate rising as high as 50% in the most exposed industries like leisure, hospitality and retail, according to Oxford Economics.

While the employment rebound has been stronger for the lowest earners, their level of employment remained 16% lower in June than in February, a shortfall about 2.5 times greater than for the mid- and high-wage groups.

White-collar workers who had been relatively less affected at the onset of the pandemic appear more exposed now to permanent layoffs, Daco says.

“With nearly seven million low-income workers still unemployed and many lacking the financial buffer to weather a long jobless spell, a failure to provide additional fiscal support would put the nascent recovery at risk,” Daco says. “The recent flare-up in COVID-19 infections nationwide, with some states rolling back their reopening, also risks another wave of layoffs at the bottom.”

Middle-class households face hurdles, too

The pandemic has revealed how much middle-income households are financially vulnerable, according to Peter Schneider, President at Primerica, a financial services provider.

“It’s understandable that people have anxiety about the future,” says Peter Schneider, President at Primerica. “There’s much concern about future employment and bills being paid.”

About 51% of the middle-income families who have been financially affected by the pandemic are concerned about running out of money to pay for basic necessities by the end of the year, according to a recent survey from Primerica. The survey gauged the financial outlook and preparedness of those with annual household incomes between $30,000 to $100,000.

About 86% of middle-income households that said they have been financially impacted by the pandemic in at least some way. And respondents expressed concern about their ability to weather a medium or long-term economic downturn. Just over a third of respondents believe their personal finances will recover from the effects of the recession in the next year.

Of the more than two-thirds of respondents who received a stimulus payment, the most common uses included paying bills (49%), buying groceries (36%) and adding to savings (25%), the Primerica study showed.

About 61% of middle-income Americans have had to cut spending in the wake of the pandemic.
“We are encouraged that middle-income families are making adjustments to their budgets by reducing their spending on non-necessities,” Schneider says. “That’s an important step toward getting on better financial footing.”

Will there be a second round of stimulus?

The White House signaled its support for additional cash payments as part of the next recovery package. The House passed a Democratic bill calling for a second round of direct payments of up to $1,200 for individuals and $2,400 for joint filers. Senate Republicans also appear to be on board with an additional round of stimulus payments, although they want to limit who would qualify.

Senate Majority Leader Mitch McConnell, R-Ky., suggested distributing the money to people who earn $40,000 or less per year, arguing they would benefit the most from another round of stimulus payments. But House Democrats in their bill, the Health and Economic Recovery Omnibus Emergency Solutions Act, or HEROES Act, are calling for the next round of $1,200 stimulus payments to go to Americans earning less than $75,000 a year.

When it comes to enhanced unemployment, Republicans argue that the $600 boost was too high and a disincentive for Americans to go back to work. Democrats have said the program should be renewed and pointed to the still-high unemployment rate, currently 11.1%.

Republicans have floated a variety of options that include reforming the enhanced benefits or even replacing them with a back-to-work bonus, but they are not keen to continue the $600 program.

Some experts argue that the government shouldn’t continue to add to the growing U.S. budget deficit since improving retail sales and the labor market data point to an economic rebound.

The U.S. budget deficit reached $3 trillion in the 12 months through June as stimulus spending jumped to combat the effects of the pandemic, with the federal government headed for its largest annual deficit as a share of the economy since World War II.

“If we do need more stimulus, let’s give it more time and reconsider,” says Dr. Michael Busler, a Public Policy Analyst and a Professor of Finance at Stockton University in New Jersey. “We could be going through a second wave of the pandemic, which could slow the economic rebound. But if the recovery is strong enough, it could withstand it.”


Primerica Names Lisa Brown as Executive Vice President and Chief Administrative Officer

Business Wire, September 1, 2020

Duluth – Primerica, Inc. (NYSE: PRI), a leading provider of financial services to middle-income families throughout North America, today announced the appointment of Lisa Brown to the role of Executive Vice President and Chief Administrative Officer, effective October 19, 2020. Brown will oversee Human Resources, Talent Development, Facilities and Physical Security for the Company. In her new role, she will become a member of Primerica’s Operating Team, and will report to Chief Operating Officer, Greg Pitts.

Glenn Williams, Primerica Chief Executive Officer, said, "We are fortunate to have an executive of Lisa’s experience assume this critical role. She is a seasoned global business executive with more than 25 years of experience and will provide leadership and guidance to help us execute against our strategic priorities. Given Lisa’s recognized success in this area, we’re confident that we have the right leader at the right time in our Company’s history to support our continuing growth.”

Ms. Brown is an accomplished business leader who comes to Primerica from Delta Air Lines, where she spent the past 21 years. During her tenure with Delta, she served in several leadership roles across the enterprise and she brings a strong record of successfully leading organizations through periods of tremendous growth and transformation. Brown has extensive experience with leadership and employee development, start-ups, labor campaigns, and creating positive employee relations environments. She earned a Bachelor of Science degree in Human Resources from Michigan State University, and a Master of Business Administration degree from Kennesaw State University.


Primerica Reports Second Quarter 2020 Results

Issued Term Life policies grow 20%

Term Life net premiums grow 10%; adjusted direct premiums grow 11%

Life-Licensed Sales Force of 134,157 aided by temporary COVID-19 state licensing measures

Investment and Savings Products client asset values recover from the first quarter market disruption, ending the quarter at $68 billion

Investment and Savings Products sales decline 13%; in line with Company expectations

Net earnings per diluted share (EPS) of $2.51, up 10%; return on stockholders’ equity (ROE) of 25.6%

Diluted adjusted operating EPS of $2.44, up 10%; adjusted net operating income return on adjusted stockholders’ equity (ROAE) of 25.6%

Declared dividend of $0.40 per share, payable on September 14, 2020

BUSINESS WIRE, August 07, 2019 – Primerica, Inc. (NYSE: PRI) today announced financial results for the quarter ended June 30, 2020. Total revenues of $525.8 million increased 4% compared to the second quarter of 2019. Net income of $101.5 million increased 4%, while earnings per diluted share of $2.51 increased 10% compared to the same quarter last year. ROE remained robust at 25.6%.

Compared to the second quarter of 2019, adjusted operating revenues of $521.8 million increased 4%, adjusted operating net income of $98.5 million increased 4% and diluted adjusted operating earnings per share of $2.44 increased 10%. ROAE increased to 25.6% during the quarter from 25.1% during the second quarter of 2019.

Second quarter results were positively impacted by strong public sentiment toward owning life insurance, which increased demand for new term life insurance policies and drove higher retention of existing policies. Term Life financial results were strong despite elevated COVID-19 claims. Investment and Savings Product (ISP) average client assets values recovered during the quarter, however market uncertainty negatively impacted ISP sales. The Company continued to invest in projects that enhance business opportunities such as digital technologies and the rollout of the mortgage distribution program. Savings from COVID-19 related business travel restrictions and event cancellations generally offset these costs with operating expenses remaining flat year-over-year. During the quarter, the Company repurchased $86.5 million of common stock and is on track to achieve its $250 million repurchase target for the year.

“Our second quarter performance reflects the complementary nature of our two product lines. Term Life sales grew, aided by clients’ increased priority on preserving the financial security of their families, as momentum slowed in ISP sales due to uncertainty in the markets,” said Glenn Williams, Chief Executive Officer. “Our sales force’s resilience and our ability to adapt to the challenges posed by the crisis positioned us well to quickly respond to clients’ needs.”


Second Quarter Distribution & Segment Results

Distribution Results

Q2 2020 Q2 2019 % Change
Life-Licensed Sales Force (1) 134,157 129,550 4%
Recruits 133,123 86,173 54%
New Life-Licensed Representatives 12,250 10,919 12%
Life Insurance Policies Issued 94,044 78,664 20%
Life Productivity (2) 0.24 0.20 *
ISP Product Sales ($ billions) $ 1.69 $ 1.94 (13%)
Average Client Asset Values ($ billions) $ 64.64 $ 64.43 *

End of period
Life productivity equals policies issued divided by the average number of life insurance licensed representatives per month

* Not calculated or less than 1%

Segment Results

Q2 2020 Q2 2019 % Change
($ in thousands)
Adjusted Operating Revenues:
Term Life Insurance $ 328,233 $ 296,868 11%
Investment and Savings Products 164,181 173,086 (5%)
Corporate and Other Distributed Products (1) 29,400 31,434 (6%)
Total adjusted operating revenues (1) $ 521,814 $ 501,388 4%
Adjusted Operating Income (Loss)
before income taxes:
Term Life Insurance $ 94,904 $ 83,997 13%
Investment and Savings Products 46,860 47,343 (1%)
Corporate and Other Distributed Products (1) (11,703) (7,394) 58%
Total adjusted operating income before income taxes (1) $ 130,061 $ 123,946 5%

(1) See the Non-GAAP Financial Measures section and the Adjusted Operating Results reconciliation tables at the end of this release for additional information.

Life Insurance Licensed Sales Force

Recruiting and field training incentives introduced at the onset of the COVID-19 pandemic were extended through the second quarter, which led to a total of 133,123 new recruits during the period. New life-licensed representatives increased 12% year-over-year to 12,250 and included a number of individuals with temporary licenses. These temporary licenses were concentrated in several states that started issuing such licenses in response to testing disruptions from COVID-19. At quarter end, a total of 3,400 representatives with temporary licenses were included in the size of the sales force. Many states have also extended licensing renewal dates due to COVID-19. There were about 4,400 of these extended licenses included in the 134,157 independent life-licensed representatives at quarter-end. The number of COVID-19 temporary licenses that become permanent and the number of extended licenses that renew will emerge over the next few quarters.

Term Life Insurance

Life insurance policies issued during the second quarter increased 20% year-over-year, reflecting the heightened awareness of the value of protection products that has emerged with the COVID-19 pandemic. The sales force quickly adapted to using virtual communication tools which, combined with our extensive point-of-sale technologies and existing products, allowed our life-licensed representatives to readily meet clients’ needs. Productivity for the quarter was 0.24 policies per life insurance licensed representative, up from 0.20 policies per life insurance licensed representative in the prior year’s second quarter.

Revenues of $328.2 million increased 11% compared to the second quarter of 2019 and pre-tax income of $94.9 million increased 13% year-over-year. Strong sales and persistency drove an 11% increase in adjusted direct premiums. Extremely favorable persistency during the quarter led to a decline in DAC amortization year-over-year, partially offset by higher benefit reserve increases. Benefits and claims also included approximately $10 million in COVID-19 related claims in the quarter.

Investment and Savings Products

Market volatility and economic uncertainty impacted clients’ willingness to make investment decisions during the quarter. As we expected, total product sales declined 13% year-over-year to $1.7 billion, while net client inflows were a robust $613 million, twice the level recorded in the prior year period due to a significant reduction in client redemptions. Average client asset values at $64.6 billion were flat year-over-year and down 3% compared to the first quarter of 2020. Markets recovered as the quarter progressed and quarter-ending client asset values were $68.2 billion, up 4% year-over-year.

Revenues of $164.2 million during the quarter declined 5% compared to the same quarter in 2019 and pre-tax income of $46.9 million decreased 1%. Sales-based revenues declined 12% in line with the decrease in revenue-generating product sales and asset-based revenues declined 1% due to average client asset values remaining flat year-over-year. Sales and asset-based commission expenses declined in correlation with associated revenues. Canadian segregated fund DAC amortization was favorable $2 million during the quarter due to market recoveries, which effectively reversed the accelerated amortization recognized in the first quarter of 2020.

Net Investment Income

Consolidated net investment income during the quarter decreased approximately $2.2 million versus the prior year period due to lower investment yields, partially offset by an increase in the size of the invested asset portfolio. On a segment basis, net investment income allocated to the Term Life segment continues to increase as the block of business grows, which reduces net investment income recognized in the Corporate and Other Distributed Products segment. The invested asset portfolio had a fair market value of $2.4 billion at the end of the second quarter, reflecting a net unrealized gain of $120 million.


The second quarter effective income tax rate was 24.3% versus 23.5% in the prior year period, in part due to a lower tax benefit being recognized on vested equity awards.


During the second quarter, the Company repurchased 848,450 shares of common stock for $86.5 million, bringing the total through June 30 to $176.6 million. The Company expects to repurchase $250 million of its common stock during 2020. The Board of Directors has approved a dividend of $0.40 per share, payable on September 14, 2020, to stockholders of record on August 21, 2020.

Primerica has a strong balance sheet and continues to be well-capitalized to meet future needs. Primerica Life Insurance Company’s statutory risk-based capital (RBC) ratio was estimated to be about 400% and holding company liquidity was $256 million as of June 30, 2020. The RBC ratio declined during the quarter due to the growth in the business and higher commissions and acquisition expenses related to that growth.

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company presents certain non-GAAP financial measures. Specifically, the Company presents adjusted direct premiums, other ceded premiums, adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income, adjusted stockholders’ equity and diluted adjusted operating earnings per share. Adjusted direct premiums and other ceded premiums are net of amounts ceded under coinsurance transactions that were executed concurrent with our initial public offering (the “IPO coinsurance transactions”) for all periods presented. We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate within this block of business. Adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income and diluted adjusted operating earnings per share exclude the impact of realized investment gains (losses) and fair value mark-to-market (“MTM”) investment adjustments, including credit impairments, for all periods presented. We exclude realized investment gains (losses), including credit impairments, and MTM investment adjustments in measuring these non-GAAP financial measures to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains (losses) and market pricing variations prior to an invested asset’s maturity or sale that are not directly associated with the Company’s insurance operations. Adjusted stockholders’ equity excludes the impact of net unrealized investment gains (losses) recorded in accumulated other comprehensive income (loss) for all periods presented. We exclude unrealized investment gains (losses) in measuring adjusted stockholders’ equity as unrealized gains (losses) from the Company’s available-for-sale securities are largely caused by market movements in interest rates and credit spreads that do not necessarily correlate with the cash flows we will ultimately realize when an available-for-sale security matures or is sold.

Our definitions of these non-GAAP financial measures may differ from the definitions of similar measures used by other companies. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. Furthermore, management believes that these non-GAAP financial measures may provide users with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of the core ongoing business. These measures have limitations, and investors should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Reconciliations of GAAP to non-GAAP financial measures are attached to this release.

Earnings Webcast Information

Primerica will hold a webcast on Thursday, August 6, 2020 at 10:00 am EST, to discuss the quarter’s results. To access the webcast, go to at least 15 minutes prior to the event to register, download and install any necessary software. A replay of the call will be available for approximately 30 days on Primerica’s website, This release and a detailed financial supplement will be posted on Primerica’s website.

Forward-Looking Statements

Except for historical information contained in this press release, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from anticipated or projected results. Those risks and uncertainties include, among others, major public health pandemics, epidemics or outbreaks, specifically the novel COVID-19 pandemic; our failure to continue to attract and license new recruits, retain sales representatives or license or maintain the licensing of sales representatives; new laws or regulations that could apply to our distribution model, which could require us to modify our distribution structure; changes to the independent contractor status of sales representatives; our or sales representatives’ violation of or non-compliance with laws and regulations; any failure to protect the confidentiality of client information; differences between our actual experience and our expectations regarding mortality or persistency as reflected in the pricing for our insurance policies; the occurrence of a catastrophic event; changes in federal, state and provincial legislation or regulation that affects our insurance, investment product, and mortgage businesses; our failure to meet regulatory capital ratios or other minimum capital and surplus requirements; a downgrade or potential downgrade in our insurance subsidiaries’ financial strength ratings or our senior debt ratings; inadequate or unaffordable reinsurance or the failure of our reinsurers to perform their obligations; the failure of our investment products to remain competitive with other investment options or the change to investment and savings products offered by key providers in a way that is not beneficial to our business or a significant change in the competitive environment in which we operate; fluctuations in the performance of client assets under management; litigation and regulatory investigations and actions concerning us or sales representatives; heightened standards of conduct or more stringent licensing requirements for sales representatives; inadequate policies and procedures regarding suitability review of client transactions; the failure of, or legal challenges to, the support tools we provide to the sales force; the failure of our information technology systems, breach of our information security, failure of our business continuity plan or the loss of the Internet; the effects of credit deterioration and interest rate fluctuations on our invested asset portfolio; incorrectly valuing our investments; changes in accounting standards may impact how we record and report our financial condition and results of operations; economic down cycles that impact our business, financial condition and results of operations; the inability of our subsidiaries to pay dividends or make distributions; our inability to generate and maintain a sufficient amount of working capital; our non-compliance with the covenants of our senior unsecured debt; the loss of key personnel or sales force leaders; and fluctuations in the market price of our common stock or Canadian currency exchange rates. These and other risks and uncertainties affecting us are more fully described in our filings with the Securities and Exchange Commission, which are available in the "Investor Relations" section of our website at Primerica assumes no duty to update its forward-looking statements as of any future date.

About Primerica, Inc.

Primerica, Inc., headquartered in Duluth, GA, is a leading provider of financial services to middle-income households in North America. Independent licensed representatives educate Primerica clients about how to better prepare for a more secure financial future by assessing their needs and providing appropriate solutions through term life insurance, which we underwrite, and mutual funds, annuities and other financial products, which we distribute primarily on behalf of third parties. We insured over 5 million lives and had approximately 2.5 million client investment accounts at December 31, 2019. Primerica, through its insurance company subsidiaries, was the #2 issuer of Term Life insurance coverage in North America in 2019. Primerica stock is included in the S&P MidCap 400 and the Russell 1000 stock indices and is traded on The New York Stock Exchange under the symbol “PRI”.

Condensed Consolidated Balance Sheets
(Unaudited) - In thousands

June 30, 2020 December 31, 2019
Fixed-maturity securities available-for-sale, at fair value $ 2,357,154 $ 2,356,996
Fixed-maturity security held-to-maturity, at amortized cost 1,278,580 1,184,370
Equity securities, at fair value 33,689 40,684
Trading securities, at fair value 22,399 43,233
Policy loans 31,471 32,927
Total Investments 3,723,293 3,658,210
Cash and cash equivalents 360,351 256,876
Accrued investment income 16,940 17,361
Reinsurance recoverables 4,217,129 4,169,823
Deferred policy acquisition costs, net 2,434,462 2,325,750
Agent balances, due premiums and other receivables 270,421 227,100
Intangible assets, net 45,275 45,275
Income taxes 69,408 70,492
Operating lease right-of-use assets 48,487 47,265
Other assets 401,129 384,634
Separate account assets 2,377,654 2,485,745
Total assets $ 13,964,549 $ 13,688,531
Liabilities and Stockholders' Equity
Future policy benefits $ 6,567,169 $ 6,446,569
Unearned and advance premiums 18,619 15,470
Policy claims and other benefits payable 412,446 339,954
Other policyholders' funds 424,018 388,663
Notes payable 374,226 374,037
Surplus note 1,277,970 1,183,728
Income taxes 265,369 209,221
Operating lease liabilities 54,680 53,487
Other liabilities 519,745 510,443
Payable under securities lending 29,973 28,723
Separate account liabilities 2,377,654 2,485,745
Total liabilities 12,321,869 12,036,040
Stockholders' equity:
Common stock 397 412
Paid-in capital - -
Retained earnings 1,569,689 1,593,281
Accumulated other comprehensive income (loss), net of income tax 72,594 58,798
Total stockholders' equity 1,642,680 1,652,491
Total liabilities and stockholders' equity $ 13,964,549 $ 13,688,531

Condensed Consolidated Statements of Income
(Unaudited) - (In thousands, except per-share amounts)

Three months ended June 30,
2020 2019
Direct premiums $ 717,088 $ 687,262
Ceded premiums (402,549) (400,588)
Net premiums 314,539 286,674
Commissions and fees 171,788 178,468
Net investment income 22,710 24,868
Realized investment gains (losses) 1,742 1,067
Other, net 15,036 13,825
Total revenues 525,815 504,902
Benefits and expenses:
Benefits and claims 139,646 115,068
Amortization of deferred policy acquisition costs 53,177 58,762
Sales commissions 85,492 90,099
Insurance expenses 43,753 44,570
Insurance commissions 6,333 5,829
Interest expense 7,200 7,201
Other operating expenses 56,152 55,913
Total benefits and expenses 391,753 377,442
Income before income taxes 134,062 127,460
Income taxes 32,552 30,014
Net income $ 101,510 $ 97,446
Earnings per share:
Basic earnings per share $ 2.52 $ 2.28
Diluted earnings per share $ 2.51 $ 2.28
Weighted-average shares used in computing earnings per share:
Basic 40,132 42,483
Diluted 40,246 42,619


Consolidated Adjusted Operating Results Reconciliation
(Unaudited – in thousands, except per share amounts)

Three months ended June 30,
2020 2019 % Change
Total revenues $ 525,815 $ 504,902 4%
Less: Realized investment gains 1,742 1,067
Less: 10% deposit asset MTM included in NII 2,259 2,447
Adjusted operating revenues $ 521,814 $ 501,388 4%
Income before income taxes $ 134,062 $ 127,460 5%
Less: Realized investment gains 1,742 1,067
Less: 10% deposit asset MTM included in NII 2,259 2,447
Adjusted operating income before income taxes $ 130,061 $ 123,946 5%
Net income $ 101,510 $ 97,446 4%
Less: Realized investment gains 1,742 1,067
Less: 10% deposit asset MTM included in NII 2,259 2,447
Less: Tax impact of preceding items (972) (828)
Less: Tax impact of preceding items (972) (828)
Adjusted net operating income $ 98,481 $ 94,760 4%
Diluted earnings per share (1) $ 2.51 $ 2.28 10%
Diluted adjusted operating earnings per share (1) $ 2.44 $ 2.21 10%

(1) Percentage change in earnings per share is calculated prior to rounding per share amounts.


Adjusted Premiums Reconciliation
(Unaudited – in thousands)

Three months ended June 30,
2020 2019 % Change
Direct premiums $ 711,188 $ 681,004 4%
Less: Premiums ceded to IPO coinsurers 257,529 272,596
Adjusted direct premiums $ 453,659 $ 408,408 11%
Ceded premiums $ (400,919) $ (398,927)
Less: Premiums ceded to IPO coinsurers (257,529) (272,596)
Other ceded premiums $ (143,390) $ (126,331)
Other ceded premiums $ 310,269 $ 282,077 10%

Adjusted Operating Results Reconciliation
(Unaudited – in thousands)

Three months ended June 30,
2020 2019 % Change
Total revenues $ 33,401 $ 34,948 (4)%
Less: Realized investment gains 1,742 1,067
Less: 10% deposit asset MTM included in NII 2,259 2,447
Adjusted operating revenues $ 29,400 $ 31,434 (6)%
Loss before income taxes $ (7,702) $ (3,880) 99%
Less: Realized investment gains 1,742 1,067
Less: 10% deposit asset MTM included in NII 2,259 2,447
Adjusted operating loss before income taxes $ (11,703) $ (7,394) 58%

Adjusted Stockholders' Equity Reconciliation
(Unaudited – in thousands)

June 30, 2020 December 31, 2019 % Change
Stockholders' equity $ 1,642,680 $ 1,652,491 (1)%
Less: Unrealized net investment gains (losses) recorded in stockholders' equity, net of income tax 93,726 64,563
Adjusted stockholders' equity $ 1,548,954 $ 1,587,928 (2)%