Primerica, Inc. launched its monetary outcomes for the fourth quarter of 2021, together with complete revenues of $724.1 million, a 21% enhance over the fourth quarter of 2020. Adjusted internet working revenue was $117 million and diluted adjusted working earnings per share have been $2.94, a 20% enhance for each over the prior 12 months’s quarter.
COVID continued to affect Primerica’s Time period Life section favorably. Over 75,000 new time period life insurance coverage insurance policies have been issued throughout the fourth quarter and after peaking, nonetheless stay 5% above pre-pandemic ranges. When in comparison with full 12 months 2020, the Time period Life section working revenue was up 11% earlier than revenue taxes. This sturdy section elevated the corporate’s pre-tax working revenue by $24 million.
“Leads to our time period life insurance coverage and funding companies have been sturdy, reflecting purchasers’ continued precedence for cover merchandise and investing for the longer term,” stated Glenn Williams, Chief Government Officer. “Efficiency in our newly added Senior Well being section was weaker than anticipated reflecting significant headwinds round coverage churn and contract acquisition prices. These elements, amongst others, led to the goodwill impairment acknowledged within the section this era.”
The corporate’s life insurance coverage licensed gross sales drive was down from the earlier 12 months, with 129,515 on the finish of 2021, in comparison with 134,907 on the finish of 2020. Nonetheless, the corporate believes that adjusting for COVID-related short-term measures, that quantity has remained comparatively unchanged. Pandemic-related pressures resulted in a 23% lower in licensure throughout the fourth quarter of 2021.
Favorable fairness markets and investor confidence positively impacted the Funding and Financial savings Merchandise class. Funding product gross sales exceeded $3 billion, a 46% enhance from final 12 months’s quarter, and internet shopper inflows have been virtually twice as excessive because the earlier 12 months’s quarter. Consumer asset values have been up virtually 20% on the finish of the 12 months from 2020, totaling $97.3 billion.
Through the fourth quarter, $19 million of the licensed $50 million of further licensed repurchase of the corporate’s widespread inventory was deployed. The whole quantity licensed by the tip of 2022 now quantities to $325 million. The board of administrators additionally accredited a 17% enhance in dividends for stockholders, or $0.55 per share, which shall be payable on March 14, 2022 to stockholders of file on February 22, 2022.
