February 11, 2015 Leave a comment
Strong sales of investment and savings products contributed to a solid fourth quarter at Primerica Inc. (PRI—NYSE). This week the financial services provider posted quarterly revenue of $345.4 million, up 9 percent versus the prior-year period.
Fourth quarter earnings were 84 cents per share, narrowly missing the Zacks Investment Research consensus estimate of 85 cents. The company reported record annual sales of its investment and savings offerings, which increased 14 percent in the fourth quarter to close out the year at $5.68 billion. The quarter also yielded a 13 percent increase in new representatives, primarily due to improved incentive programs and messaging.
The Duluth, Georgia-based company logged another year of growth in 2014, generating revenue of $1.34 billion, a 9 percent year-over-year increase. Net income totaled $182.8 million. Primerica attributes the strong performance to growth in its Term Life net premiums as well as the aforementioned investment and savings category.
“Our full year 2014 results were marked by solid performance across segments including 11 percent growth in Term Life net premiums, 9 percent growth in ISP sales and an 8 percent increase in ending client asset values, while the size of the life insurance licensed sales force grew 3 percent,” said Rick Williams, Chairman of the Board and Co-CEO. “John Addison and I believe the positive 2014 results make this the perfect time for a leadership transition and are confident that [incoming CEO] Glenn Williams will take the company to the next level.”
Primerica’s board of directors has also announced an increased quarterly dividend of 16 cents per share for the fourth quarter of 2014. The company will pay out the dividend on March 16, 2015 to stockholders of record as of Feb. 20, 2015.