Primerica reports Q3’23 financial results
Primerica shared its Q3’23 financial results on November 8, 2023. The highlights:
- Welcomed more than 92,000 individuals as new recruits to Primerica.
- The company reported progress in licensing, with 12,311 individuals acquiring new life licenses in the quarter, increasing the life licensed sales force to over 139,000.
- Issued approximately 88,500 new term life policies during the quarter, up 9% compared to the adjusted policy count in the prior year.
- Issued $29.5 billion in new term life protection, a 13% increase compared to the face amount issued in the prior year period.
- The productivity of sales force remains at 0.21 policies per life license rep per month compared to 0.20 in the prior year period.
- Expect fourth quarter policies issued to grow approximately 6% to 7% year-over-year or around 6% on a full year basis.
- Sales of annuity products rose 17% compared to the prior year period as annuity providers continue to enhance products, leading to higher investor demand for variable annuities and the guarantee features they offer.
- In the senior health sector, the company maintained stable LTVs for the fourth consecutive quarter during the challenging third quarter. However, higher contract acquisition costs per approved policy ($1,263) and lower sales volumes were impacted by a larger number of newer, less productive agents. Despite an increase in agent count, the company experienced higher attrition among experienced agents and delays in onboarding and training new hires.
- The company expects that Primerica representatives will remain a significant source of quality leads for e-TeleQuote. They predict that referrals from these representatives will account for over 20% of the applications submitted during this year’s Annual Enrollment Period (AEP).
- Alison Rand has announced her retirement as CFO effective April 1, 2024, after nearly 23 years of service. Tracy Tan, an experienced leader with 20 years as a CFO in various industries, including financial services, has recently joined Primerica as Alison’s successor.
- The company’s Term Life segment showed profit growth, with a 7% year-over-year increase in pretax operating income, reaching $141 million.
- Primerica is addressing an increase in policy lapses, especially those policies that were sold around the beginning of or during the pandemic.
- Expect a minor loss in the fourth quarter but do not foresee the need to provide additional capital to this segment in 2023, nor do they anticipate a requirement for it in 2024.
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