D. Richard Williams, Chairman and Co-CEO of Primerica (PRI), Interviews with The Wall Street Transcript
67 WALL STREET, New York - June 10, 2013 - The Wall Street Transcript has just published its Insurance Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Low Profitability and Low Interest Rates - Commercial Line Brokers and Underwriters - Consolidation Trends - Emerging Market Expansion - Analysis Of Personal, Commercial & Reinsurance Subsectors
Companies include: Primerica (PRI) and many more.
In the following excerpt from the Insurance Report, the Chairman and Co-CEO of Primerica (PRI) discusses company strategy and the outlook for this vital industry:
TWST: You released your first-quarter results last week. Can you share some highlights from the quarter with us?
Mr. Williams: We reported an 8% growth in operating revenues, driven by a 13% increase in term life net premium and a 15% increase in investment and savings products sales. Our net operating income per diluted share increased 6% as a result of active capital management. In 2012, we repurchased 9.5 million shares or stock or 15% of outstanding shares for $258 million driving increase in EPS. Our net operating income return on adjusted stockholder equity was 13.3% at the end of the first quarter. This should expand as we begin repurchasing an additional $150 million of shares in second quarter from recently freed-up capital.
TWST: Can you give us an overview of your business lines? In which lines, or even specific products, do you currently see the best opportunities for growth and how are you positioning the company to take advantage of those opportunities?
Mr. Williams: Our focus is on serving the financial needs of the very large middle-income market, which represents about 49% of all U.S. households. We define this market as households with $30,000 to $100,000 in income. Our average customer has $65,000 in household income. We are the middle of the middle market. Our exclusive distribution system of over 90,000 life license representatives and 21,000 mutual fund license representatives gives us a competitive edge in this market. Ninety percent of our life license reps are part-time. They make the majority of the sales, earning supplemental income are managed by the full-time representatives who earn a majority of the income. It is this leverage that allows us to economically write the smaller-average-size transactions of the middle income market when other companies cannot.
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