NYSE$PRI

Primerica Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Primerica's financial performance was impacted by market volatility, leading to a decline in investment and savings product sales, while term life earnings partly offset the negative impact. The life-licensed sales force grew, and the company continued to address challenges in the senior health distribution marketplace.

Primerica reported a decrease in total revenues by 3% to $673.3 million and a net income decrease of 54% to $51.8 million compared to Q3 2021. Adjusted operating EPS increased by 1% to $3.02. The results reflect a non-cash goodwill impairment charge of $60.0 million. Despite market volatility, the company saw growth in its life-licensed sales force and continued progress in the term life insurance segment.

  • Life-licensed sales force grew 3% driven by strong new life licenses.
  • Term Life net premiums increased 6%; adjusted direct premiums increased 7%.
  • Investment and Savings Products sales declined 23% due to market conditions, but net client inflows remained positive at $0.7 billion.
  • Net earnings per diluted share decreased 51%; return on stockholders’ equity was 12.2%.

Headline financials

Total Revenue

$673M

Previous: $693M-2.9%
EPS (adj)

$3.02

Previous: $2.98+1.3%
ISP Product Sales

$2.16B

Previous: $2.79B-22.6%
Average Client Asset Values

$83.3B

Previous: $91.8B-9.2%
Life-Licensed Sales Force

134.3K

Previous: 130.0K+3.3%
Dividend Per Share

$0.55

Previous: $0.47+17.0%
Free Cash Flow

$51.8M

Previous: $112M-53.9%
Net Income

$51.8M

Previous: $112M-53.9%
Operating Income

$66M

Previous: $133M-50.2%
Gross Profit

$660M

Previous: $670M-1.5%
Cash & Equivalents

$438M

Previous: $326M+34.5%
Total Assets

$15B

Previous: $15.8B-4.9%
Stock-Based Comp

$1.06M

Previous: $642K+65.3%

Revenue & EPS history

Primerica · Revenue · Quarterly

$673M

Q3 2022-2.9%vs Q3 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Primerica · $659M total across 3 segments · Q3 2022

  • Term Life Insurance
    $428M+6.6%
  • Investment and Savings Products
    $202M-13.6%
  • Corporate and Other Distributed Products
    $29.3M-15.5%

Forward guidance

The Company expects to complete an additional $32 million in share repurchases by the end of 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 Q3 2022

Historical avgQ3 2022

+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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