Primerica Q2 earnings surpass estimates on 11% term life growth

Aug 13, 2019

  1. Insurance Forums Staff
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  2. Allen Trent
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    Math doesn't seem to match up. how can something both be a record & have declined? If term life sales were down 6% from prior quarter, wouldn't the prior quarter have been the record in sales?

    I am guessing N&R premiums are a record, not new sales. this could happen if persistency is better or if clients are paying the ever increasing premiums after the initial level premium period.

    crazy part is always reading .2 life apps per month per appointed producer. That is 1 life app every 22 weeks, including personal business. even with Primericas high rates & if they are Yuge Bigly term policies, tough to make a living with 2.4 policies sold per year.
     
    Last edited: Aug 13, 2019
  3. Robert Barney
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    I think the answer is obvious. Most of the people they got licensed, and who are still licensed, produce nothing. They are part time and have lost interest.

    Production is coming from a very small minority of their licensed agents.

    As I recall, that's pretty much how it works with most companies.
     
  4. toolbelt
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    Well when you consider that they sold a total of 301,589 polices with approx 5200 RVP field offices, it works out to only 58 policies per office (which includes the RVP) for the year. Furthermore, that average was before cancellations/non-renewals which averaged about 46 per office, plus about 3 policy claims. That minority must be exceptionally small.
     
    toolbelt, Aug 14, 2019
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  5. toolbelt
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    Or if they sold a lot of Increasing Benefit Rider Policies (which have increasing premiums).
     
    toolbelt, Aug 14, 2019
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  6. Allen Trent
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    At 2.4 policies per year, that means they have about 125,000 appointed reps, 2-3k in every state. that is crazy. wow
     
  7. toolbelt
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    129,500 was their recently disclosed force size and they typically express their policy sale average as a "per month" figure rather than an annual average, even on their annual reports. I suppose stating 0.19 per month sounds better than 2.28 per year, especially to those with limited math skills. But again, that figure is based on "issued" policies, regardless if they are cancelled later in the year. It would also include all policies issued, including those purchased internally.
     
    toolbelt, Aug 14, 2019
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  8. Robert Barney
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    So I looked for the closest Primerica office to me:

    Google Maps

    Sorry, but that's not much of an office.
     
  9. Allen Trent
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    Looks big enough to get .2 apps per month from. Now, paying the rent would require either a bit more apps or signing up 2 new recruits per month to pay the ante up cost
     
  10. WinoBlues
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    You are forgetting about their daytime job. And of course their working spouse. Until the divorce anyway.
     
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