August 09, 2016
Primerica Reports Q2 Growth Boosted by Life Insurance
Primerica (NYSE: PRI) beat analyst estimates with second quarter earnings growth of 8 percent on total revenue of $379.2 million, compared to the second quarter of 2015. Operating revenue jumped 7 percent to $375.8 million for the quarter.
Diluted earnings per share were $1.19. That’s an increase of 27 percent and 13 cents better than the analyst estimate of $1.06.
The Duluth, Georgia, company reported growth in its life insurance segment:
- 14 percent boost in life insurance policies issues.
- 11 percent increase in life insurance licensed representatives to 112,365.
CEO Glenn Williams says Primerica continues to see strong performance throughout the business.
“Our sales force leaders delivered distribution growth and strong life insurance productivity in the second quarter,” Williams says.
Primerica’s investment and savings products (ISP) also performed well despite uncertainty in the market. ISP revenue dropped 2 percent to $132.7 million. Income before income taxes decreased 4 percent to $36.1 million compared to a year ago. These results show a 6 percent decline in product sales to $1.47 billion. The company says this is due to lower variable annuity sales.