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Dec 31, 2021

Primerica Q4 2021 Earnings Report

Primerica's Q4 2021 financial results were announced, showcasing growth in revenues and adjusted operating EPS, but also revealing challenges in the Senior Health segment leading to a goodwill impairment.

Key Takeaways

Primerica reported a 21% increase in total revenues, reaching $724.1 million, and a 20% increase in diluted adjusted operating EPS to $2.94. The company faced headwinds in its Senior Health segment, resulting in a $76 million goodwill impairment charge. The Board of Directors approved an increase of $50 million to the share repurchase program.

Total revenues increased by 21% to $724.1 million compared to Q4 2020.

Diluted adjusted operating EPS rose by 20% to $2.94.

A preliminary non-cash goodwill impairment charge of $76 million was recorded in the Senior Health segment.

The Board of Directors approved an additional $50 million for share repurchases.

Total Revenue
$724M
Previous year: $598M
+21.0%
EPS
$2.94
Previous year: $2.45
+20.0%
Client Asset Values
$94.8B
Previous year: $82B
+15.6%
Life-Licensed Sales Force
129.52K
Previous year: 134.91K
-4.0%
ISP Product Sales
$3.02B
Previous year: $2.1B
+43.8%
Gross Profit
$427M
Previous year: $1.97B
-78.3%
Cash and Equivalents
$393M
Previous year: $548M
-28.3%
Total Assets
$16.1B
Previous year: $14.9B
+8.2%

Primerica

Primerica

Primerica Revenue by Segment

Forward Guidance

The board of directors has authorized the repurchase of an additional $50 million of the company’s common stock, bringing the total amount authorized through December 2022 to $325 million, of which $19 million was deployed during the fourth quarter of 2021. In addition, as announced on February 8, 2022, the board of directors has approved an increase of 17% in stockholder dividends to $0.55 per share, payable on March 14, 2022, to stockholders of record on February 22, 2022.

Positive Outlook

  • Board authorized repurchase of an additional $50 million of common stock.
  • Total amount authorized through December 2022 to $325 million.
  • $19 million was deployed during the fourth quarter of 2021.
  • Board approved an increase of 17% in stockholder dividends to $0.55 per share.
  • Dividends payable on March 14, 2022, to stockholders of record on February 22, 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income