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Mar 31, 2021

Primerica Q1 2021 Earnings Report

Primerica's first quarter performance in 2021 was marked by significant growth and strong financial results. The company experienced a notable increase in investment and savings products sales, issued term life policies, and new recruits. Earnings per share and return on equity also saw substantial gains, reflecting the company's ability to capitalize on heightened consumer awareness of financial needs.

Key Takeaways

Primerica reported a strong first quarter in 2021, with total revenues increasing by 21% to $637.7 million and net income rising by 35% to $97.9 million. The company saw significant growth in investment and savings products sales, as well as issued term life policies. Earnings per share increased by 41% to $2.46, and the return on equity reached 21.1%.

Investment and Savings Products sales increased 27% to a record $2.9 billion.

Issued Term Life policies grew 16%.

New recruits were up 12%, indicating strong momentum in recruiting.

Net earnings per diluted share (EPS) increased 41% to $2.46, with a return on stockholders’ equity (ROE) of 21.1%.

Total Revenue
$638M
Previous year: $525M
+21.5%
EPS
$2.44
Previous year: $2.05
+19.0%
Client Asset Values
$85.9B
Previous year: $66.6B
+29.0%
Life-Licensed Sales Force
132.03K
Previous year: 130.1K
+1.5%
ISP Product Sales
$2.85B
Previous year: $2.25B
+26.7%
Gross Profit
$565M
Previous year: $459M
+23.0%
Cash and Equivalents
$440M
Previous year: $273M
+61.1%
Total Assets
$15.1B
Previous year: $13.3B
+13.9%

Primerica

Primerica

Primerica Revenue by Segment

Forward Guidance

The company temporarily suspended its stock repurchase program to fund the planned acquisition of e-TeleQuote. Consequently, there were no shares repurchased during the first quarter of 2021 and the Company does not plan any repurchase activity during the remainder of 2021. Given the Company’s strong capital generation, repurchases are expected to resume in 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income