NYSE$PRI

Primerica Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

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.

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%.

Headline financials

Total Revenue

$638M

Previous: $525M+21.5%
EPS (adj)

$2.44

Previous: $2.05+19.0%
ISP Product Sales

$2.85B

Previous: $2.25B+26.7%
Average Client Asset Values

$85.9B

Previous: $66.6B+29.0%
Life-Licensed Sales Force

132.0K

Previous: 130.1K+1.5%
Dividend Per Share

$0.47

Previous: $0.40+17.5%
Return on Stockholder's Equity

21.1%

No prior period
Free Cash Flow

$97.9M

Previous: $72.5M+35.1%
Net Income

$97.9M

Previous: $72.5M+35.1%
Operating Income

$118M

Previous: $86.6M+36.7%
Gross Profit

$388M

Previous: $320M+21.3%
Cash & Equivalents

$440M

Previous: $273M+61.1%
Total Assets

$15.1B

Previous: $13.3B+13.9%
Stock-Based Comp

$11.7M

Previous: $11.2M+4.4%

Revenue & EPS history

Primerica · Revenue · Quarterly

$638M

Q1 2021+21.5%vs Q1 2020
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Primerica · $637M total across 3 segments · Q1 2021

  • Term Life Insurance
    $382M+16.6%
  • Investment and Savings Products
    $223M+20.7%
  • Corporate and Other Distributed Products
    $31.3M+9.5%

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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.5%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+1.1%

Avg return

30 days after

53%

34 / 64 earnings

Positive

+22.3%

Q3 2016

Best reaction

-14.0%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.4%-1.2%-4.1%
Q4 2025-1.3%+2.3%-1.7%
Q3 2025-2.1%+0.2%-0.8%
Q1 2025+2.3%+1.7%+1.8%
Q4 2024-3.9%-3.1%-1.6%
Q3 2024+5.0%+8.6%+6.8%
Q2 2024+3.4%+4.5%+5.8%
Q1 2024+0.6%+2.7%+3.5%
Q4 2023+0.4%+3.3%+2.9%
Q3 2023+0.7%+1.6%+3.0%
Q2 2023+0.5%-0.3%-6.7%
Q1 2023-1.2%-0.7%+5.5%
Q4 2022+9.0%+15.4%-2.3%
Q3 2022-3.2%-2.7%-1.2%
Q2 2022+0.1%+6.4%-4.0%
Q1 2022-14.0%-11.5%-7.5%
Q4 2021-10.7%-11.9%-14.4%
Q3 2021-8.0%-8.5%-14.8%
Q2 2021+2.6%+4.3%+4.9%
Q1 2021+0.3%+0.2%+1.8%
Q4 2020-3.4%-5.4%+1.0%
Q3 2020+5.1%+12.7%+23.5%
Q2 2020+8.4%+10.3%+4.1%
Q1 2020+3.0%+0.7%+12.6%
Q4 2019+5.7%+10.9%-27.6%
Q3 2019+0.0%+0.2%+5.2%
Q2 2019+2.8%-2.3%+4.7%
Q1 2019-2.9%-3.2%-9.1%
Q4 2018+2.6%+2.3%+4.3%
Q3 2018+2.3%+3.1%-4.5%
Q2 2018+3.0%+1.3%+6.1%
Q1 2018-2.2%-1.1%+6.3%
Q4 2017-1.9%-1.5%+6.2%
Q3 2017+12.2%+12.0%+15.3%
Q2 2017-2.0%-1.6%-11.9%
Q1 2017-8.1%-10.6%-14.5%
Q4 2016+1.8%+4.1%+5.7%
Q3 2016+22.3%+30.4%+27.3%
Q2 2016+4.0%+5.8%+10.2%
Q1 2016+1.3%
Q4 2015-2.4%
Q3 2015+2.3%
Q2 2015-8.6%
Q1 2015+0.5%
Q4 2014+1.0%
Q3 2014+2.1%
Q2 2014+0.7%
Q1 2014-4.3%
Q4 2013+9.5%
Q3 2013-0.8%
Q2 2013-1.0%
Q1 2013-0.2%
Q4 2012+2.1%
Q3 2012-1.0%
Q2 2012+6.0%
Q1 2011-1.7%
Q1 2012+1.9%
Q4 2011-0.2%
Q4 2010-0.2%
Q3 2011-1.8%
Q3 2010-1.8%
Q2 2010-1.0%
Q2 2011-1.0%
Q1 2010-0.6%

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