Primerica, Inc. announced the results of its fourth quarter ending December 31, 2020. Total revenues increased 12% compared to Q4 of 2019 and brought in $598.3 million. Net income was $100.1 million, increasing 7%, while earnings per diluted share of $2.52 increased 13% compared to the same quarter last year. ROE was 22.5% for the current quarter.
Adjusted operating revenues increased 12% compared to Q4 of 2019, equaling $594.7 million, and adjusted net operating income was $97.3 million, a 5% increase. Diluted adjusted operating earnings per share of $2.45 increased 10% compared to the same quarter last year. ROAE was 23.4% during the fourth quarter of 2020.
Primerica’s Term Life segment was significantly impacted by the pandemic, and COVID-19 related death claims totaled approximately $14 million, the highest level since the beginning of the pandemic. The pandemic also influenced customer behavior, and sales were strong throughout the quarter. Favorable market performance in Q4 drove client asset values to a record $82 billion. The Investment and Savings Products (ISP) sales in Q4 showed a leaning toward mutual funds and managed accounts rather than annuity products.
“The COVID-19 pandemic caused middle income consumers to clearly understand their need for protection today and investments for tomorrow,” said Glenn Williams, Chief Executive Officer. “The adaptability of our sales force allowed us to meet those needs more than ever before. I am very proud of how our Primerica team navigated the unique challenges of 2020 to continue to help clients achieve their financial goals.”
Year-end totals were also greatly affected by COVID-19. Some notable year-end results and trends:
- COVID-19 related death claims, net of reinsurance, were approximately $33 million. Issued life policies increased 23% year-over-year, with a record $109 billion of face amount issued.
- Policy persistency reached record levels.
- ISP sales for 2020 hit a record $7.8 billion, an increase of 4% year-over-year.
- Term Life and ISP income before taxes increased 16% and 6% year-over-year, respectively.
- Total revenues increased 8% year-over-year, to $2.2 billion, a new annual record for the company.
- Net income was $386.2 million, increasing 5%, and earnings per diluted share was $9.57, increasing 11% and setting even more company records.
- Life-licensed sales force rallied to 134, 907 members by year-end.
- The Board of Directors approved a share repurchase program that will total $300 million through June 2022, and an 18% increase in dividends to $0.47 per share, which will be payable March 15, 2021.