Investor Presentaiton
Consolidated Income Statement
Variance
Commissions and fees
($ in millions, except EPS)
Direct premiums
Ceded premiums
Net premiums
Adjusted net investment income
Other, net
FY
2021
FY
to Prior Year
2020
$
%
$
3,122 $ 2,907 $
(1,616)
215
7%
(1,581)
(35)
2%
1,506
1,326
180
14%
83
86
(3)
-3%
1,043
751
292
39%
75
61
14
22%
-
Adjusted operating revenues
2,706
2,225
482
22%
Comments
2021 adjusted net operating income increased 18% versus 2020, while operating
EPS increased 20% with the additional benefit of share repurchases
22% increase in adjusted operating revenue driven by:
COVID-19 pandemic created significant demand for life insurance in the form
of strong sales and policy persistency of Term Life policies
Commission & fee revenue driven by strong growth in ISP product sales and
average client asset values
$60 million of Senior Health commission & fee revenue following the
acquisition of e-TeleQuote
23% increase in adjusted benefits & expenses driven by:
-
-
Incurred approximately $30 million higher excess net claims than in 2020,
most of which is related to COVID-19
Strong policy persistency led to a $48 million reduction in DAC amortization
versus pre-pandemic levels, compared to $53 million in 2020, partially offset
by a $26 million increase in reserves in both 2020 and 2021
Commission expense consistent with ISP commission & fee revenue
$53 million of Senior Health contract acquisition costs following the acquisition
of e-TeleQuote
Insurance and other operating expenses excluding $16 million of Senior
Health expenses increased 9% versus the prior year, reflecting product
growth-related expenses, employee-related expenses, and higher technology
development costs
Continued strong operating ROAE
PRIMERICA
Benefits and claims
Amortization of DAC
723
251
107 17%
27 12%
16%
Insurance commissions
Sales commission expense
35
2 7%
522
146
39%
Contract acquisition costs
53
53
Interest expense
31
2 6%
Insurance expenses
203
14
8%
13%
•
Other operating expenses
286
40 16%
Adjusted benefits and expenses
2,102
392
23%
NCI before income taxes
(2)
(2)
Adjusted operating income
before income taxes
Adjusted income taxes
606
514
92
18%
144
122
22 18%
Adjusted net operating income
$
462 $
392 $
71 18%
Diluted adjusted operating EPS
Adjusted operating ROAE
$
11.61 $
24.3%
9.70
24.7%
$
1.91
20%
Operating Adjustments to Net Income:
Investment gains/(losses)
$
$
MTM investment adjustments
e-TeleQuote transaction-related costs
(3)
(13)
(5)
(2)
52
Equity comp for awards exchanged during acq.
Goodwill impairment
(76)
Loss on extinguishment of debt
(9)
NCI before income taxes
(2)
Tax impact of adjustments
Net Income
5
2
$
372
$
386
99
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