Primerica Continues to Face Agent Licensing Friction

Mortality

Primerica's term life business "incurred an estimated $21 million in COVID-related death claims, net of reinsurance, in line with expectations," Primerica said.

Primerica said in its Form 10-K for 2020 that it generally reinsures 80% to 90% of mortality risk for all term life policies, excluding certain riders. More than half of its reinsurance came from affiliates of Swiss Re.

Earnings

Primerica (PRI) is reporting $97 million in net income for the latest quarter on $638 million in revenue, up from $72 million in net income on $525 million in revenue for the first quarter of 2020.

Here's how some of the company's distribution indicator numbers changed, year-over-year:

• Life-licensed sales force: 132,030 (up from 130,095).
• Recruits: 94,633 (up from 84,762).
• Average number of policies sold per rep per month: 0.21 (up from 0.18).

The sales force count includes about 2,400 agents who are using temporary licenses due to COVID-19, who are unlikely to convert to permanent licenses, or who are using licenses that have been extended due to the pandemic and are unlikely to renew their licenses, Primerica estimated.

The number of life insurance policies sold increased to 82,667 policies, from 71,318 policies.

Spending on sales-based sales commissions increased to $122 million, from $97 million.

(Image: alphaspirit/Shutterstock.com)