Primerica, Inc. PRI reported third-quarter 2016 operating income of $1.22 per share, which surpassed the Zacks Consensus Estimate of $1.33 by nearly 8%. Also, the bottom line improved 24.5% year over year.
Revenues grew 7.8% year over year to $383.7 million on higher net premiums, commissions and fees, and net investment income. Revenues outpaced the Zacks Estimates Consensus of $378 million.
While Term Life Insurance revenues increased 13%, Investment and Savings Products revenues inched up 1%. Corporate and Other Distributed Products revenues improved 3% year over year.
Life Licensed Sales Force was $115.3 million at the end of the third quarter, up 10% year over year.
Total benefits and expenses of $295.2 million were up 5.1 % year over year due to higher benefits and claims, insurance expenses, insurance commissions, and other operating expenses.
Operating income jumped 18% year over year on 25% higher operating income at Term Life Insurance and 3% growth at Investment and Savings Products, partially offset by an 11% decline at Corporate and Other Distributed Products.
Cash and cash equivalents was $195.3 million as of Sep 30, 2016 compared with $152.3 million as of Dec 31, 2015.
Total investments were $2.3 billion compared with $2.2 billion at year-end 2015.
Notes payable were $372.8 million as against $372.6 million at year-end 2015.
Adjusted stockholders' equity totaled $1.15 billion compared with $1.11 billion as of Dec 31, 2016.
Primerica Life Insurance Company’s statutory risk-based capital (RBC) ratio was about 430% as of Sep 30, 2016.
Return on equity expanded 230 basis points to 19.1%.
Share Repurchase Update
Primerica spent $41.0 million to buy back 0.7 million shares in the quarter. This took the year-to-date tally to 2.7 million shares repurchased for $131.5 million.
PRIMERICA INC Price, Consensus and EPS Surprise
PRIMERICA INC Price, Consensus and EPS Surprise | PRIMERICA INC Quote
Zacks Rank and Performance of Other Life Insurers
Currently, Primerica holds a Zacks Rank #2 (Buy). Earnings of Torchmark Corp. TMK and Reinsurance Group of America Inc. RGA beat their respective Zacks Consensus Estimate, while that of Genworth Financial Inc. GNW missed our expectations in the third quarter. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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