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Who has the most 6 figure earners?
Primerica claims to be. If that is the case, prove it. A post on a blog does not prove anything
Dude I don't work for the company but I know several people that are in it there's over 80 that make over 1 million Dollar and they're almost 3000 that make over 100,000 a year. I haven't been on this board for a long time so don't have time or want to take the time to prove anything to you!
What business isn't structured like that in direct sales or multi level marketing whatever you want to call it
What's your point?
Primerica keeps denying they are MLM, but they are. My sources:
- Wikipedia https://en.wikipedia.org/wiki/Primerica
- Was name in a MLM magazine for 2017 https://bestcompany.com/mlm/company/primerica/
- They are members of the DSA and actually in number 12th place biggest MLM's
http://directsellingnews.com/index.php/view/dsn_announces_the_2017_global_100#.WUfbs-srLRY
- Refer to page 15 on the IPO prospectus from Primerica. They fully acknowledge "they need to recruit. I quote the sentence and under it I will put the link to the IPO documents
QUOTE "If our new business opportunities and products do not generate sufficient interest to attract new recruits, motivate them to become licensed sales representatives and incentivize them to sell our products and recruit other new sales representatives, our business would be materially adversely affected" UNQUOTE
Link (page 15 under "Risk Factors" https://www.sec.gov/Archives/edgar/data/1475922/000119312510075332/d424b5.htm#toc59788_2?
- Finally, they have the 3x3 fast track. An incentive to recruit 3 persons in 30 days to receive 300 bonus. Yet they don't such a thing for just being a good seller!
Primerica keeps denying they are MLM, but they are. My sources:
- Wikipedia https://en.wikipedia.org/wiki/Primerica
- Was name in a MLM magazine for 2017 https://bestcompany.com/mlm/company/primerica/
- They are members of the DSA and actually in number 12th place biggest MLM's
http://directsellingnews.com/index.php/view/dsn_announces_the_2017_global_100#.WUfbs-srLRY
- Refer to page 15 on the IPO prospectus from Primerica. They fully acknowledge "they need to recruit. I quote the sentence and under it I will put the link to the IPO documents
QUOTE "If our new business opportunities and products do not generate sufficient interest to attract new recruits, motivate them to become licensed sales representatives and incentivize them to sell our products and recruit other new sales representatives, our business would be materially adversely affected" UNQUOTE
Link (page 15 under "Risk Factors" https://www.sec.gov/Archives/edgar/data/1475922/000119312510075332/d424b5.htm#toc59788_2?
- Finally, they have the 3x3 fast track. An incentive to recruit 3 persons in 30 days to receive 300 bonus. Yet they don't such a thing for just being a good seller!
Primerica keeps denying they are MLM, but they are. My sources:
- Wikipedia https://en.wikipedia.org/wiki/Primerica
- Was name in a MLM magazine for 2017 https://bestcompany.com/mlm/company/primerica/
- They are members of the DSA and actually in number 12th place biggest MLM's
http://directsellingnews.com/index.php/view/dsn_announces_the_2017_global_100#.WUfbs-srLRY
- Refer to page 15 on the IPO prospectus from Primerica. They fully acknowledge "they need to recruit. I quote the sentence and under it I will put the link to the IPO documents
QUOTE "If our new business opportunities and products do not generate sufficient interest to attract new recruits, motivate them to become licensed sales representatives and incentivize them to sell our products and recruit other new sales representatives, our business would be materially adversely affected" UNQUOTE
Link (page 15 under "Risk Factors" https://www.sec.gov/Archives/edgar/data/1475922/000119312510075332/d424b5.htm#toc59788_2?
- Finally, they have the 3x3 fast track. An incentive to recruit 3 persons in 30 days to receive 300 bonus. Yet they don't such a thing for just being a good seller!
if Primerica is the company with the most 6 figures 100 figures earnings, point to a report/link to reliable source to back up this information. (answer.com is not one)
Primerica Schedules Third Quarter 2015 Financial Results Webcast
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Primerica, Inc. (NYSE:PRI)
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1 Month : From Sep 2015 to Oct 2015
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Primerica, Inc. (NYSE:PRI) announced today that it will hold a webcast on Thursday, November 5, 2015 at 10:00 a.m. Eastern Time to discuss its results for the third quarter ended September 30, 2015, as well as other business-related matters. The earnings news release announcing the third quarter 2015 financial results will be distributed on Wednesday, November 4, 2015, after the close of the market.
The earnings news release, financial supplement and live webcast will be available on the Primerica Investors website at http://investors.primerica.com. A replay of the call will be available for approximately 30 days.
About Primerica, Inc.
Primerica, Inc., headquartered in Duluth, GA, is a leading distributor of financial products to middle income households in North America. Primerica representatives educate their Main Street 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 the company underwrites, and mutual funds, annuities and other financial products, which are distributed primarily on behalf of third parties. In addition, Primerica provides an entrepreneurial full or part-time business opportunity for individuals seeking to earn income by distributing the company’s financial products. The company insured more than 4 million lives and had over 2 million client investment accounts at December 31, 2014. Primerica stock is included in the S&P MidCap 400 and the Russell 2000 stock indices and is traded on The New York Stock Exchange under the symbol “PRI”.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151006006811/en/
Primerica, Inc.
Investors
Kathryn Kieser, 866-694-0420
investorrelations@primerica.com
or
Media
Keith Hancock, 470-564-6328
Keith.Hancock@Primerica.com
I'm a Shareholder as of now and was an RVP with the Co. until 2012!!
GREAT Company and is a AMAZING long term investment.
I still have MANY friends in the Co. They are positioned to keep growing.
Daretodream, just wanted to let you know you aren't the only one following here. Are you an employee or even a shareholder any longer?
Primerica Announces Repurchase of $60 Million of Shares Held By Warburg Pincus
Primerica, Inc. (NYSE:PRI)
Intraday Stock Chart
Today : Thursday 4 October 2012
Primerica, Inc. (NYSE:PRI) today announced that it has entered into an agreement to repurchase 2,087,682 shares of Primerica common stock beneficially owned by Warburg Pincus Private Equity X, L.P. and Warburg Pincus X Partners, L.P. at a purchase price of $28.74 per share. The purchase price was determined based on the closing price of Primerica common stock on October 3, 2012. Following the repurchase transaction, Warburg Pincus will own approximately 15.0% of Primerica’s outstanding common stock and approximately 20.7% taking into account Warburg Pincus’ warrants to purchase Primerica common stock.
This capital deployment completes the $75 million repurchase program Primerica began executing in the third quarter of 2012. Primerica repurchased 488,214 shares of common stock for $14.3 million through an open market purchase program prior to this transaction.
"We are pleased to support Primerica in their deployment of $60 million to repurchase Primerica common stock. We continue to be a large and supportive shareholder and strongly believe in the ability of management and the sales force to continue to generate shareholder value," said Michael Martin, Managing Director and Head of Warburg Pincus' financial services group.
“Accelerating our previously announced $75 million share repurchase program enhances shareholder value as we continue to follow-through with capital initiatives and business enhancements targeted to deliver strong financial and operating results,” said Rick Williams, Chairman of the Board and Co-CEO of Primerica.
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, our failure to continue to attract and license new recruits, retain sales representatives or maintain the licensing of our sales representatives; our or our sales representatives’ violation of or non-compliance with laws and regulations; incorrect assumptions used to price our insurance policies; the failure of our investment products to remain competitive with other investment options; our failure to meet RBC standards or other minimum capital and surplus requirements; a downgrade or potential downgrade in our insurance subsidiaries’ financial strength ratings; inadequate or unaffordable reinsurance or the failure of our reinsurers to perform their obligations; heightened standards of conduct or more stringent licensing requirements for our sales representatives; the inability of our subsidiaries to pay dividends or make distributions; the loss of key personnel; conflicts of interests due to Warburg Pincus' significant interests in us; and general changes in economic and financial conditions, including the effects of credit deterioration and interest rate fluctuations on our invested asset portfolio. 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 http://investors.primerica.com. 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 distributor of financial products to middle-income families in North America. Primerica representatives educate their Main Street 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. In addition, Primerica provides an entrepreneurial full or part-time business opportunity for individuals seeking to earn income by distributing the company’s financial products. We insure more than 4.3 million lives and approximately 2 million clients maintain investment accounts with us. Primerica is a member of the Russell 2000 stock index and is traded on The New York Stock Exchange under the symbol “PRI”.
Primerica Schedules Third Quarter 2012 Financial Results Webcast
Primerica, Inc. (NYSE:PRI)
Intraday Stock Chart
Today : Tuesday 25 September 2012
Primerica, Inc. (NYSE: PRI), the largest independent financial services marketing company in North America, announced today that it will hold a webcast on Thursday, November 8, 2012 at 10:00 a.m. Eastern Time to discuss its results for the third quarter ended September 30, 2012, as well as other business-related matters.
The earnings news release announcing the third quarter 2012 financial results will be distributed on Wednesday, November 7, 2012, after the close of the market.
The earnings news release, financial supplement and a live webcast will be available on Primerica’s website at http://investors.primerica.com. A replay of the call will be available for approximately 30 days at http://investors.primerica.com.
Primerica, Inc., headquartered in Duluth, GA, is a leading distributor of financial products to middle-income families in North America. Primerica representatives educate their Main Street 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. In addition, Primerica provides an entrepreneurial full or part-time business opportunity for individuals seeking to earn income by distributing the company’s financial products. We insure more than 4.3 million lives and approximately 2 million clients maintain investment accounts with us. Primerica is a member of the Russell 2000 stock index and is traded on The New York Stock Exchange under the symbol “PRI”.
New Report: Middle Class Americans Acknowledge Past Financial Mistakes
Primerica, Inc. (NYSE:PRI)
Intraday Stock Chart
Today : Tuesday 18 September 2012
In an analysis of two new sources of information about family finances, the Consumer Federation of America and Primerica found that two-thirds of middle class Americans acknowledge having made financial mistakes, often costly ones.
The new report, “The Financial Status and Decision-Making of the American Middle Class,” also concluded that the financial condition of most middle class families is challenging. For example, in 2010 the typical middle class family had financial assets of $27,300 – including retirement savings but not pensions – which was 28 percent less than the $37,800 held in 2007.
The comprehensive analysis includes a national survey of 2015 representative adult Americans by ORC International in July of this year and a statistical examination of the Federal Reserve Board’s 2010 Survey of Consumer Finances, by Professor Catherine Montalto of The Ohio State University.
In the ORC International survey, 843 out of 2015 respondents reported household incomes between $30,000 and $100,000 and were considered to be middle class. Key findings from an analysis of the survey data are:
Two-thirds of middle class Americans (67%) said that, in the past, they had made at least one “really bad financial decision,” and nearly half of those questioned (47%) acknowledged that they had made more than one bad decision. The typical (median) cost of these bad decisions was $5,000, but the average cost was $23,000.
Few of these Americans said their main source of information or advice about specific financial decisions would be from the Internet, books, magazines, or TV. And a number said they would not seek information or advice in making these decisions. For example, for “saving and investing,” only 15 percent said they would rely on the Internet, publications, or TV for the information, yet another 17 percent said they “wouldn’t seek any information or advice, and just make a decision.” However, for this kind of decision, 45 percent said they would use information and advice from a financial professional.
These middle class Americans are much more risk-averse than those with higher incomes. If given $1,000,000 to invest for retirement, only 21 percent of middle class Americans, compared to 48 percent of higher-income persons (incomes $100,000 and over), would invest mainly in “stocks, bonds, and/or mutual funds.” And 19 percent of the middle class group would “invest” most of their funds in a savings account while 25 percent would invest mainly in real estate.
Yet, large majorities of these Americans believe their ability to make financial decisions is “good” or “excellent” – for example, 81 percent for ability to budget income and 80 percent for ability to manage credit card debt though only 63 percent for ability to save for retirement and 67 percent for their ability to purchase a mortgage loan.
“Considering their past mistakes and the complexity of the financial services marketplace, we were surprised at how highly most middle class Americans rate their ability to make a variety of financial decisions and how infrequently they rely on information from the Internet and publications,” said CFA Executive Director Stephen Brobeck.
The second source of information was the Federal Reserve Board’s 2010 Survey of Consumer Finances, which was released several months ago. Professor Catherine Montalto of The Ohio State University used its database, and that of the Fed’s 2007 survey, to compute financial statistics for the 40 percent of households in the third and fourth income quintiles -- incomes between $35,600 and $94,600 in 2010. Analysis of these data revealed that:
This typical middle class family had financial assets of $27,300, including $3,900 in checking and/or savings accounts. These financial assets were 28 percent less than the $37,800 held in 2007.
Most of these financial assets represented money in contributory retirement accounts, but only about three-fifths of all families (61%) had such an account (though a number of middle class families did have pensions).
For middle class families, the typical debt payments to income ratio was 20 percent with only 9 percent having debt payments that were overdue by 60 days or more. But nearly half (49%) still carried credit card debt from month to month, and the typical (median) debt for these families was $2,700.
The decline in housing prices was the main reason that the net assets of the typical middle income family declined 35 percent, from $145,600 to $94,700.
“Families without a lot of resources are balancing difficult and expensive priorities such as saving enough for college and retirement or paying off a mortgage and consumer debt. When you consider these demands within the context of the last decade’s falling incomes, we are nearing a crisis in this country,” said John Addison, Primerica Co-CEO. “Primerica’s representatives specialize in working with families that earn between $30-$100,000, and trust me, this can be a lonely field to be in. The trend on Wall Street is to work with wealthier and wealthier clients, but this report lays out very clearly the urgent need for more financial services aimed at middle income earners.”
Other findings from the analysis of the Fed data include:
Only 21 percent of the middle class families had a cash value life insurance policy, 15 percent stocks outside a retirement account, 14 percent certificates of deposit, and 13 percent U.S. Savings Bonds.
Over half of these families (53%) had installment debt whose typical amount was $13,500. Almost all of this debt represented auto loans and student loans.
These families held consumer and mortgage debt that was, typically, $85,400 in 2007 and $84,400 in 2010.
Other findings from the analysis of the ORCI survey data include:
More older middle class persons (65 and older) than younger persons (18-34 years) rated their financial decision-making ability as good or excellent, for example, 56 percent vs. 27 percent for budgeting one’s income.
Two-fifths of middle class persons (40%) said they would not seek information or advice about managing credit card debt, and about one-quarter would not do so for purchasing auto insurance (25%) and life insurance (24%).
Few said they would use information and advice from a financial professional for managing credit card debt (18%) and purchasing auto insurance (13%).
The least well-educated middle class persons were the least likely to seek information or advice. For example, 23 percent of those with a high school degree or less, but only 10 percent of those with a college degree, would not seek information about saving and investing.
A very small percentage would invest the bulk of $10,000 (7%), $100,000 (6%), or $1,000,000 (6%) in gold or precious metals.
Fewer middle class persons (63%) than those with incomes of $100,000 or higher (76%) rated their decision-making about saving for retirement as good or excellent.
More middle class persons (67%) than upper income persons (61%) said they had made at least one bad financial decision but the latter group lost more money -- $61,000 vs. $23,000 on average, presumably because they had more to lose.
The Consumer Federation of America is a nonprofit association of some 270 consumer groups that was established in 1968 to advance the consumer interest through research, advocacy, and education. While its primary focus is public policy issues, CFA founded and manages the America Saves campaign in which more than 300,000 Americans have enrolled or pledged as Savers.
Primerica, Inc. headquartered in Duluth, GA, is a leading distributor of financial products to middle-income families in North America. Primerica representatives educate their Main Street 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. In addition, Primerica provides an entrepreneurial full or part-time business opportunity for individuals seeking to earn income by distributing the company’s financial products. We insure more than 4.3 million lives and approximately 2 million clients maintain investment accounts with us. Primerica is a member of the Russell 2000 Stock index and is traded on The New York Stock Exchange under the symbol “PRI”.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50408839&lang=en
Primerica, Inc. Executives to Present at KBW, Inc. 2012 Insurance Conference
Primerica, Inc. (NYSE:PRI)
Intraday Stock Chart
Today : Tuesday 28 August 2012
Primerica, Inc. (NYSE:PRI) today announced that John Addison, Co-Chief Executive Officer, and Alison Rand, Chief Financial Officer, will discuss the Company and recent developments at the Keefe, Bruyette and Woods 2012 Insurance Conference on Thursday, September 6, 2012 at 10:20 AM (EDT) in New York, NY.
The Primerica presentation will be available live on Primerica’s Investor Relations website at http://investors.primerica.com. Supporting presentation materials will also be available on the web site during the webcast.
About Primerica
Primerica, Inc., headquartered in Duluth, GA, is a leading distributor of financial products to middle-income families in North America. Primerica representatives educate their Main Street 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. In addition, Primerica provides an entrepreneurial full or part-time business opportunity for individuals seeking to earn income by distributing the company’s financial products. We insure more than 4.3 million lives and approximately 2 million clients maintain investment accounts with us. Primerica is a member of the Russell 2000 stock index and is traded on The New York Stock Exchange under the symbol “PRI”.
Board of Directors of Primerica, Inc. Declares $0.07 Quarterly Dividend
Primerica, Inc. (NYSE:PRI)
Intraday Stock Chart
Today : Tuesday 14 August 2012
The Board of Directors of Primerica, Inc. (NYSE:PRI), the largest independent financial services marketing company in North America, today approved payment of a quarterly dividend of $0.07 per share for the second quarter of 2012. The dividend will be payable on September 10, 2012, to stockholders of record as of August 24, 2012.
About Primerica
Primerica, Inc., headquartered in Duluth, GA, is a leading distributor of financial products to middle-income families in North America. Primerica representatives educate their Main Street 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. In addition, Primerica provides an entrepreneurial full or part-time business opportunity for individuals seeking to earn income by distributing the company’s financial products. We insure more than 4.3 million lives and approximately 2 million clients maintain investment accounts with us. Primerica is a member of the Russell 2000 stock index and is traded on The New York Stock Exchange under the symbol “PRI”.
I'm glad I did. The primerica of yesteryear appears to be much different than it is now. Good luck to you.
I'd find a new circle...
Warburg Pincus.. spent 10mil and 6 month doing research and invested 231mil in the IPO and then another 100mil on the open market. The stock is up 90% from the IPO April 1st 2010.
Warburg Pincus, Baron Fund & many other companies are investors in Primerica.
Accredited member of Better Business Bureau
Primerica’s life companies rated A+ (Superior) by A.M. Best
I was a freshman in university at the time the DD was obviously lacking. I'm a personal injury lawyer now. The gentleman I spoke with said the company has undergone serious changes. I wish Primerica and all it's stock holders the best. Looking forward to positive news. At the time in 2006 this company was not well received at least in my immediate circle.
'hoksh'.. you pay for a background check and life Insurance class.. and they pay for your Life insurance lic and 6 & 63 Sec Lic. the company doesn't make money from that. you need to do some more DD before making statements like that. and what do you do now?
Lol just got a call from one of the primerica monkeys trying to bait me in to their MLM scheme. I was aware of these guys in 06 and refused to join their ranks when they asked for me to pay for training. I wish the company all the best and profit for all
Primerica Announces $75 Million Stock Repurchase Program
Primerica, Inc. (NYSE:PRI)
Intraday Stock Chart
Today : Wednesday 8 August 2012
Primerica, Inc. (NYSE: PRI) announced today that its Board of Directors has authorized a share repurchase program of up to $75 million of its common stock. The Company expects any repurchases under the program to commence on or about August 10, 2012 and to occur over the following four to six months. The share repurchases may be made from time to time through open market transactions, block trades, privately negotiated transactions or otherwise and are subject to market conditions, as well as corporate, regulatory, and other considerations. This share repurchase program may be discontinued at any time by the Board of Directors and the Company has no obligation to repurchase any amount of its common stock under the program. The company intends to make all repurchase in compliance with applicable regulatory guidelines and to administer the plan in accordance with applicable laws, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended.
Rick Williams, Chairman of the Board and Co-Chief Executive Officer said, “This action reaffirms our commitment to creating shareholder value and our positive view on the long-term outlook for the company. In addition to adopting the share repurchase program, we increased our dividend in the first quarter of 2012 to 5 cents per share.”
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, our failure to continue to attract and license new recruits, retain sales representatives or license or maintain the licensing of our sales representatives; our or our sales representatives’ violation of or non-compliance with laws and regulations; incorrect assumptions used to price our insurance policies; the failure of our investment products to remain competitive with other investment options; our failure to meet RBC standards 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; heightened standards of conduct or more stringent licensing requirements for our sales representatives; the inability of our subsidiaries to pay dividends or make distributions; the loss of key personnel; and general changes in economic and financial conditions, including the effects of credit deterioration and interest rate fluctuations on our invested asset portfolio. 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 http://investors.primerica.com. 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 distributor of financial products to middle-income families in North America. Primerica representatives educate their Main Street 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. In addition, Primerica provides an entrepreneurial full or part-time business opportunity for individuals seeking to earn income by distributing the company’s financial products. We insure more than 4.3 million lives and approximately 2 million clients maintain investment accounts with us. Primerica is a member of the Russell 2000 stock index and is traded on The New York Stock Exchange under the symbol “PRI”.
Primerica Reports Second Quarter 2012 Results
Primerica, Inc. (NYSE:PRI)
Intraday Stock Chart
Today : Tuesday 7 August 2012
Primerica, Inc. (NYSE: PRI) announced today financial results for the second quarter ended June 30, 2012. Total revenues were $300.5 million in the second quarter of 2012 and net income was $46.2 million, or $0.72 per diluted share. Operating revenues increased by 8% to $296.2 million in the second quarter of 2012, compared with $273.1 million in the second quarter of 2011. Net operating income grew by 18% to $45.5 million, or $0.71 per diluted share, in the second quarter of 2012, compared with $38.6 million, or $0.51 per diluted share, in the second quarter of 2011. The year-over-year trends reflect strong performance in the Term Life segment and the impact of our share repurchases as well as higher prior year insurance and operating expenses. Net operating income return on adjusted stockholders’ equity (ROAE) was 14.8% (13.9% on a net income and stockholders’ equity basis) for the quarter ended June 30, 2012, the highest since becoming a public company in 2010.
Rick Williams, Chairman of the Board and Co-Chief Executive Officer said, “Our 18% increase in net operating income in the second quarter and share repurchases drove a 40% increase in net operating earnings per diluted share and increased net operating return on adjusted stockholders equity to 14.8% from 11.6% in the year ago period. Our simple products and disciplined approach to business enhancements and capital management will continue to provide opportunities for strong long-term results.”
John Addison, Chairman of Primerica Distribution and Co-Chief Executive Officer said, “Sales force distribution development showed strength this quarter with the size of our life licensed sales force growing and our focus on licensing resulting in a 21% increase in new life insurance licenses. Our Investment and Savings Products sales also grew 5% in the second quarter as we continued to demonstrate the power of our large scale distribution model by producing over $100 million of fixed indexed annuity sales in the first full quarter the product was offered.”
Distribution Results
The size of our life-licensed insurance sales force grew to 90,868 at June 30, 2012 from 90,519 at June 30, 2011 and 89,651 at March 31, 2012. Sales force growth was driven by 9,786 new life licenses in the second quarter of 2012, a 21% increase from the second quarter of 2011 and a 28% increase from the first quarter of 2012. Recruiting of new representatives in the second quarter of 2012 declined 25% to 48,976 compared with the second quarter of 2011 and was down 16% from the first quarter of 2012 largely reflecting the strong focus on getting new representatives through the licensing process. Recruiting in the second quarter of 2011 also benefited from the post-convention recruiting surge in June and July of 2011.
Term life insurance policies issued increased slightly to 60,583 in the second quarter of 2012, compared with the year ago period. Sequentially, term life insurance policies issued increased 8% compared with the first quarter of 2012, largely reflecting typical seasonality. Term Life net premium revenue increased 28% to $138.3 million in the second quarter of 2012, compared with the second quarter a year ago and increased by 8% from the first quarter as we continue to build the Term Life book of business.
Investment and Savings Products sales grew 5% to $1.19 billion in the second quarter of 2012 from the year ago quarter primarily as a result of sales growth in our recently launched fixed indexed annuity and managed account products. Total sales levels were consistent with the first quarter of 2012. Client asset values at June 30, 2012 declined 2% to $35.29 billion relative to a year ago and declined 3% compared with March 31, 2012, primarily reflecting market conditions in the U.S. and Canada.
Segment Results
Primerica operates in two primary business segments: Term Life Insurance and Investment and Savings Products, and has a third segment, Corporate and Other Distributed Products. Results for the segments are shown below.
Actual Operating (1)
Q2 2012 Q2 2011 (2) % Change Q2 2012 Q2 2011 (2) % Change
Revenues: ($ in thousands) ($ in thousands)
Term Life Insurance $ 162,732 $ 131,641 24 % $ 162,732 $ 131,641 24 %
Investment and Savings Products 102,967 104,586 -2 % 102,967 104,586 -2 %
Corporate and Other Distributed Products 34,826 38,868 -10 % 30,505 36,833 -17 %
Total revenues $ 300,525 $ 275,095 9 % $ 296,204 $ 273,060 8 %
Income (loss) before income taxes:
Term Life Insurance $ 51,724 $ 36,026 44 % $ 51,724 $ 36,026 44 %
Investment and Savings Products 29,444 30,470 -3 % 29,444 30,470 -3 %
Corporate and Other Distributed Products (9,247 ) (8,031 ) -15 % (10,376 ) (6,520 ) -59 %
Total income before income taxes $ 71,921 $ 58,465 23 % $ 70,792 $ 59,976 18 %
(1) See the Non-GAAP Financial Measures section and the segment Operating Results Reconcilations at the end of this release for additional information.
(2) Reflects revised accounting standards related to costs associated with acquiring or renewing insurance contracts.
Term Life Insurance. Operating revenues grew by 24% to $162.7 million in the second quarter of 2012, compared with the same period a year ago. Net premiums continue to build with the in force block, up 28% from the prior year period. Net investment income increased year-over-year consistent with the growth in assets allocated to support the Term Life business. Net investment income was not notably impacted by low prevailing market interest rates.
Operating income before income taxes increased by 44% over the prior year period to $51.7 million additionally reflecting higher deferrals of commissions consistent with incentive program changes as well as prior year new product launch and convention-related expenses, partially offset by growth in premium-related expenses. Interest expense increased in the quarter due to the redundant reserve financing executed in March 2012. Persistency and mortality experience were both consistent with the prior year period.
Sequentially, operating income before income taxes increased by 17% reflecting continued premium growth, seasonally stronger persistency and lower incurred claims in the second quarter of 2012, compared with the first quarter of 2012. The stronger seasonal second quarter persistency resulted in lower DAC amortization partially offset by higher reserve increases in the second quarter of 2012, compared with the prior quarter. Results were also impacted by higher interest expense associated with the new redundant reserve financing and higher life insurance licensing-related expenses.
Investment and Savings Products. Operating revenues declined 2% to $103.0 million and operating income before income taxes declined 3% to $29.4 million in the second quarter of 2012, compared with the second quarter of 2011, reflecting a slight decline in average client asset values consistent with market performance. We also experienced a modest shift in sales mix towards managed accounts, which provide ongoing asset-based revenues rather than sales-based revenues.
Sequentially, operating income before income taxes increased 2% from the first quarter of 2012 reflecting higher sales of sales-based revenue generating products and slightly higher average client asset values.
Corporate and Other Distributed Products. Operating revenues decreased by 17%, or $6.3 million, to $30.5 million in the second quarter of 2012 from the second quarter of 2011 largely reflecting a lower invested asset base following our stock repurchases. As is the case with the Term Life segment, the low interest rate environment did not meaningfully impact Corporate and Other Distributed Products segment results. Year-over-year operating losses before income taxes for this segment increased by $3.9 million to $10.4 million as lower investment income was partially offset by lower claims on the short-term disability products underwritten by our New York insurance subsidiary.
Taxes
Our effective income tax rate for the second quarter of 2012 was 35.8%, compared with 35.7% for the same quarter a year ago. Our effective income tax rate increased from 34.2% in the first quarter of 2012 due to a lower effective Canadian tax rate in the first quarter of 2012.
Capital and Liquidity
In April 2012, we repurchased 5.7 million shares of common stock from equity funds managed by Warburg Pincus for a purchase price of $150 million. As of June 30, 2012, our investments and cash totaled $2.02 billion, compared with $2.17 billion as of March 31, 2012. Our invested asset portfolio had a net unrealized gain of $166.7 million (net of unrealized losses of $6.2 million) at June 30, 2012, down from a net unrealized gain of $170.6 million (net of unrealized losses of $5.9 million) at March 31, 2012. Net realized gains for the quarter were $4.3 million, which included $0.1 million of other-than-temporary impairments.
Primerica Life Insurance Company’s statutory risk-based capital (RBC) ratio is estimated to be in excess of 570% as of June 30, 2012, and well positioned to support existing operations and fund future growth.
Our debt-to-capital ratio remained low at 19.0% as of June 30, 2012. In July 2012, we completed our first public debt offering of $375 million in aggregate principal amount of Senior Notes due 2022. The notes bear an annual interest rate of 4.750%. The majority of the offering proceeds were used to repay Primerica’s $300 million note payable to a subsidiary of Citigroup Inc. and the remaining proceeds will be used for general corporate purposes including share repurchases. If this offering had been completed as of June 30, 2012 our debt-to capital ratio would have been 22.7%.
Non-GAAP Financial Measures
We report financial results in accordance with U.S. generally accepted accounting principles (GAAP). We also present operating revenues, operating income before income taxes, net operating income and adjusted stockholders’ equity. Operating revenues, operating income before income taxes and net operating income exclude the impact of realized investment gains and losses for all periods presented. Operating income before income taxes and net operating income exclude the expense associated with our IPO-related equity awards for all periods presented. Adjusted stockholders' equity excludes the impact of net unrealized gains and losses on invested assets for all periods presented. 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 our financial 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 our core ongoing business. These measures have limitations, and investors should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Reconciliations of non-GAAP to GAAP financial measures are attached to this release.
Earnings Webcast Information
Primerica will hold a webcast Wednesday, August 8, 2012 at 9:00 am EDT, to discuss second quarter results. This release and a detailed financial supplement will be posted on Primerica’s website. Investors are encouraged to review these materials. To access the webcast go to http://investors.primerica.com 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, http://investors.primerica.com.
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, our failure to continue to attract and license new recruits, retain sales representatives or license or maintain the licensing of our sales representatives; our or our sales representatives’ violation of or non-compliance with laws and regulations; incorrect assumptions used to price our insurance policies; the failure of our investment products to remain competitive with other investment options; our failure to meet RBC standards 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; heightened standards of conduct or more stringent licensing requirements for our sales representatives; the inability of our subsidiaries to pay dividends or make distributions; the loss of key personnel; and general changes in economic and financial conditions, including the effects of credit deterioration and interest rate fluctuations on our invested asset portfolio. 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 http://investors.primerica.com. 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 distributor of financial products to middle-income families in North America. Primerica representatives educate their Main Street 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. In addition, Primerica provides an entrepreneurial full or part-time business opportunity for individuals seeking to earn income by distributing the company’s financial products. We insure more than 4.3 million lives and approximately 2 million clients maintain investment accounts with us. Primerica is a member of the Russell 2000 stock index and is traded on The New York Stock Exchange under the symbol “PRI”.
PRIMERICA, INC. AND SUBSIDIARIES
Condensed Balance Sheets
June 30, December 31,
2012 (1) 2011 (2)
(In thousands)
Assets
Investments:
Fixed maturity securities available for sale, at fair value $ 1,823,729 $ 1,959,156
Equity securities available for sale, at fair value 31,811 26,712
Trading securities, at fair value 29,038 9,640
Policy loans and other invested assets 24,201 25,996
Total investments 1,908,779 2,021,504
Cash and cash equivalents 108,062 136,078
Accrued investment income 20,220 21,579
Due from reinsurers 3,903,028 3,855,318
Deferred policy acquisition costs 990,558 904,485
Premiums and other receivables 167,746 163,845
Intangible assets 70,226 71,928
Other assets 281,818 268,485
Separate account assets 2,500,640 2,408,598
Total assets $ 9,951,077 $ 9,851,820
Liabilities and Stockholders' Equity
Liabilities:
Future policy benefits $ 4,723,359 $ 4,614,860
Unearned premiums 9,476 7,022
Policy claims and other benefits payable 236,717 241,754
Other policyholders' funds 347,763 340,766
Note payable 300,000 300,000
Income taxes 82,755 81,316
Other liabilities 329,538 381,496
Payable under securities lending 143,963 149,358
Separate account liabilities 2,500,640 2,408,598
Total liabilities 8,674,211 8,525,170
Stockholders' equity:
Common stock 599 649
Paid-in capital 693,717 835,232
Retained earnings 426,936 344,104
Accumulated other comprehensive income, net of income tax 155,614 146,665
Total stockholders' equity 1,276,866 1,326,650
Total liabilities and stockholders' equity $ 9,951,077 $ 9,851,820
(1) Unaudited
(2) Reflects revised accounting standards related to costs associated with acquiring or renewing insurance contracts.
PRIMERICA, INC. AND SUBSIDIARIES
Condensed Statements of Income
Three months ended June 30,
2012 (1) 2011 (1) (2)
(In thousands, except per-share amounts)
Revenues:
Direct premiums $ 570,073 $ 560,881
Ceded premiums (415,815 ) (435,564 )
Net premiums 154,258 125,317
Commissions and fees 106,761 108,698
Net investment income 23,605 27,229
Realized investment gains, including OTTI 4,321 2,035
Other, net 11,580 11,816
Total revenues 300,525 275,095
Benefits and expenses:
Benefits and claims 68,925 57,272
Amortization of deferred policy acquisition costs 28,205 23,975
Sales commissions 51,475 50,273
Insurance expenses 24,589 26,988
Insurance commissions 6,458 9,534
Interest expense 8,506 6,998
Other operating expenses 40,446 41,590
Total benefits and expenses 228,604 216,630
Income before income taxes 71,921 58,465
Income taxes 25,741 20,845
Net income $ 46,180 $ 37,620
Earnings per share:
Basic $ 0.73 $ 0.50
Diluted $ 0.72 $ 0.49
Shares used in computing earnings per share:
Basic 61,531 73,457
Diluted 62,687 74,201
(1) Unaudited
(2) Reflects revised accounting standards related to costs associated with acquiring or renewing insurance contracts.
PRIMERICA, INC. AND SUBSIDIARIES
Consolidated Operating Results Reconciliation
(Unaudited – in thousands)
Three months ended June 30,
2012
2011 (1)
% Change
Operating revenues $ 296,204 $ 273,060 8 %
Realized investment gains, including OTTI 4,321 2,035
Total revenues $ 300,525 $ 275,095 9 %
Operating income before income taxes $ 70,792 $ 59,976 18 %
Realized investment gains, including OTTI 4,321 2,035
Other operating expense - equity awards (3,192 ) (3,546 )
Income before income taxes $ 71,921 $ 58,465 23 %
Net operating income $ 45,455 $ 38,592 18 %
Realized investment gains, including OTTI 4,321 2,035
Other operating expense - equity awards (3,192 ) (3,546 )
Tax impact of reconciling items (404 ) 539
Net income $ 46,180 $ 37,620 23 %
Diluted operating earnings per share $ 0.71 $ 0.51 40 %
Net after-tax impact of operating adjustments 0.01 (0.02 )
Diluted earnings per share $ 0.72 $ 0.49 46 %
(1) Reflects revised accounting standards related to costs associated with acquiring or renewing insurance contracts.
CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT
Operating Results Reconciliation
(Unaudited – in thousands)
Three months ended June 30,
2012 2011 (1)
Operating revenues $ 30,505 $ 36,833
Realized investment gains, including OTTI 4,321 2,035
Total revenues $ 34,826 $ 38,868
Operating loss before income taxes $ (10,376 ) $ (6,520 )
Realized investment gains, including OTTI 4,321 2,035
Other operating expense - equity awards (3,192 ) (3,546 )
Loss before income taxes $ (9,247 ) $ (8,031 )
(1) Reflects revised accounting standards related to costs associated with acquiring or renewing insurance contracts.
PRIMERICA, INC. AND SUBSIDIARIES
Adjusted Stockholders' Equity Reconciliation
(Unaudited – in thousands)
June 30, 2012
Adjusted stockholders' equity $ 1,171,710
Unrea