Primerica, Inc. reported total revenues of $637.7 million in the first quarter of 2021, a 21% increase over the same quarter of 2020. Net income increased by 35%, to $97.9 million, while earnings per diluted share increased 41% to $2.46. Important to note is that last year’s first quarter results included pre-tax realized losses on the invested asset portfolio of $10 million, with a mark-to-market adjustment on the reinsurance deposit asset of $6.4 million, due to a sharp downturn at the beginning of the pandemic. ROE was 21.1% for Q1 2021, compared to 18.2% in Q1 2020.
Recruiting for the company was up 12%, but it was the strong performance by the company’s Investment and Savings Products (ISP) category, which increased 27% to $2.9 billion, that built momentum for the quarter. This increase is in part due to the increased demand for mutual funds and managed accounts. Term Life products also saw increased sales, as well as higher claims due to the pandemic, incurring approximately $21 million in COVID-related death claims.
“Our exceptional first quarter results reflect the strength of our business and the continuing momentum created by our ability to meet the financial needs of middle-market families,” said Glenn Williams, Chief Executive Officer. “The impact of COVID has heightened consumer awareness concerning their finances, helping to drive record production results for Primerica, including in recruiting, issued life policies and investment sales.”