Primerica, the Duluth, Georgia-based direct seller of financial services, announced financial results for the quarter ended March 31, 2017. Total revenues increased 12 percent and adjusted operating revenues increased 11 percent to $405.2 million and $405.0 million, respectively. Net income grew 15 percent to $52.1 million and adjusted net operating income grew 14 percent to $52.0 million compared with the first quarter of 2016.
“We achieved a 21 percent increase in EPS and a 130 basis points increase in return on equity (ROE), compared to the first quarter a year ago reflecting solid earnings and ongoing share repurchases,” said CEO Glenn Williams. “Strong organic growth continued with our life insurance licensed sales force reaching almost 118,000 representatives and a 6 percent year-over-year growth in life insurance policies issued. In addition, our Investment and Savings Products sales grew 15 percent year-over-year to a record $1.6 billion in first quarter 2017. We are optimistic about the future and our ability to drive growth and deliver long-term value for all of our stakeholders.”
Williams said that first quarter results reflect a 13 percent increase in Term Life net premiums. Continued organic growth was partially offset by weaker persistency and claims experience during the quarter. Strong ISP performance was driven by 15 percent growth in both sales and average client asset values year-over-year. Insurance and other operating expenses, which are typically highest in the first quarter due to annual employee equity award grants, increased year-over-year from growth in the size of the business, annual employee merit increases and continued development of technology platforms.
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Primerica was No. 12 on last’s month’s DSN Global 100 ranking of the top direct selling companies in the world. The company reported earnings of $1.52 billion for 2016.
Oriflame Up in both Local and Euro Sales
At Oriflame Cosmetics, local currency sales increased by 8 percent and Euro sales increased by 11 percent to €340.1m (€305.8m).
“During Q1 2017 we continued to focus on balancing sustainable sales development with healthy profitability improvements, reporting high single-digit underlying growth and double-digit Euro growth as well as an increase in net profit of over 80 percent,” said CEO Magnus Brännström. “Our strategic categories—skin care and wellness sets and routines—served as important drivers of growth and price mix development. In addition, our online strategy and the efficiency measures in manufacturing continued to render results.”
Europe and Africa accounted for 24 percent of sales; CIS, for 30 percent; Asia and Turkey, for 35 percent; and Latin America for 11 percent. Local currency sales increased by 21 percent in Latin America; by 16 percent in Asia and Turkey; and by 6 percent in Europe and Africa. Sales decreased 6 percent in CIS.
“The strong performance in Latin America and Asia and Turkey continued, despite a negative impact in India due to the demonetization,” said Brännström. “The underlying sales performance in CIS was weaker, although the current currency situation favorably impacted the margins and will allow us to focus further on growth. The local currency sales development for the group in the second quarter-to-date is solid. All in all, a positive start of 2017, even though macroeconomic challenges remain in several markets.”
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Oriflame was No. 15 on last’s month’s DSN Global 100 ranking of the top direct selling companies in the world. The company reported earnings of $1.4 billion for 2016.
