Some interesting numbers emerged from Primerica’s recently released second quarter 2021 report, with 90,000 sticking out for two reasons.
One, the company reported it recruited nearly 90,000 individuals, and two, issued over 90,000 life insurance policies during the Q2.
As for the top-line figures, total revenues of $654.7 million increased 25% compared to the second quarter of 2020. Net income of $128.2 million increased 26%, while earnings per diluted share of $3.22 increased 28% compared to the same quarter last year. ROE remained robust at 26.3%.
The company said in a statement that second quarter results reflect clients’ continued demand for investment products and term life protection, strength in equity markets, and elevated persistency across all durations of the company’s in-force term life insurance business.
Clients remain focused on the future and planning for retirement which, when combined with strong equity markets, pushed investment products sales over $3.0 billion for the first time in Company history. The term life segment continues to experience elevated death claims due to a combination of COVID-related deaths as well as excess mortality not identified as COVID.
“Sales results in our core businesses remain very strong,” said Primerica CEO Glenn Williams. “We are encouraged by our continued momentum and remain focused on growing our sales force as the licensing process starts to normalize and new recruits resume their pre-COVID activities.”
Life insurance licensed sales force
During the second quarter, over 10,000 representatives obtained a new life insurance license among the 90,000 recruited. Year-over-year comparisons are challenging due to measures introduced last year to mitigate the COVID shutdown. The company said it remains focused on converting new recruits to licensed representatives despite disruptions in the licensing process.
At June 30, 2021, Primerica had a total of 132,041 independent life-licensed representatives, including an estimated 2,400 individuals with COVID-related temporary licenses or licenses with an extended renewal date.
Experience suggests the likelihood of conversion to a permanent license or ultimately renewing an extended renewal diminishes over time. At this point, the 2,400 individuals are not expected to remain licensed.
Term life insurance
Term life continues to experience strong results with revenues increasing to $383.5 million, or 17% year-over-year, driven by 16% growth in adjusted direct premiums from strong sales and favorable persistency. Pre-tax income of $116.8 million increased 23% over the prior year period.
Client demand for term life insurance protection remains high. The 90,000 policies issued during the quarter is only 4% below the heightened level issued last year when the onset of COVID created a surge in demand for new policies. Productivity for the quarter, which is seasonally elevated in the second quarter, remained above the Company’s historical range at 0.23 policies per life-licensed representatives per month versus 0.24 in the prior year’s second quarter, reflecting the continued favorable sentiment for protection products.
COVID claims of approximately $6 million during the quarter were generally in line with expectations and $4 million lower than the prior year period. Primerica also experienced about $3 million in higher claims not identified as COVID in the current period that is believed to be normal volatility.
Persistency remains above historical levels and improved over the already strong persistency experienced a year ago. Better persistency reduced DAC amortization by $6 million, partially offset by a $2 million higher benefit reserve increase year-over-year. Insurance expenses increased 12% due to growth in the business, higher employee costs and investments in technology.
One policy per recruit. That is a solid business plan… For Primerica.
It’s called “the agency builder”. Get licensed, sell yourself a policy, sell your family, sell your friends and then when you run out of people and fail, the GA becomes collects all the renewal comp.
Actually, that's 9 per new licensed agent… in 3 months.
And that's expensive term…
But those 90k policies are not for the new agents, or the newly licensed agents. It is for the entire salesforce of 132k agents.
So 0.68 life policies per agent for the overall salesforce. Not even 1 per agent. Abysmal.
How do you claim 90K recruits if only 10K received a license to sell? Do people have to pay an upfront fee when they are "recruited"?
I know they get them to sell products that don't require licensing. What they are… I don't know. Probably pre-paid legal services.
Licensed agents can be recruited as well. Plenty of people out there who failed out of sales school week 1 looking for a new gig.
With some states they are allowed to get a temporary license until they pass the state exam.
They just have to be supervised by a resident licensed agent. I think Georgia allowed a temp for 6 months and a one time renewal.
Recruits may be considered those who filled out hiring packs. Last I heard it was $99 initial which includes licensing?
Crazy Stuff that Primerica.
The Primerica debate has been going on since the 70's and it looks like the recruit to sell concept works for them.
From what I know they sell a home alarm system. Legal plans and referral home and auto insurance.
It's rumored that they will soon if not now with some offices to offer med supps and med advantage plans by referral. If a license is going to be required I have no clue.
10000 new agents and 90000 new policies? How much was controlled business? BOD looks at the 90K new policies and says,"We all deserve bonuses". 10K new agents say ," I'm broke. I'm out of here" . 10000 more hired for next quarter and BOD says ," More new business on the way. Time for another bonus. Let's not look at retention of clients or agents"
AL would be proud??
AL would be proud??
AL would be proud??
It fluctuates but is historically less than 2.5 per agent per year, if you leave out the 40+k reps that leave each year, and don't subtract cancellations, and include policies purchased by their own people. The net gain per rep is about 1/4 policy per year.
They've had sales such as 1/2 price or free to veterans over the last couple of years. Online access fees still apply.
Is there a distinction????
looks like the recruit to buy concept works for them.
But during that same timespan, 10k+ agents also left, so the number involved in that quarter was actually 142k+, which further reduces the average..
$99 doesn't include licensing. It includes an attempt at passing the entry level state test.
Reminds me of a Billy Crystal / Robin Williams routine.
Billy – Lou Gehrig, You know, played for the Yankees. Died of Lou Gehrig’s disease.
Robin – Wow. What are the odds of that?
Reminds me of a Billy Crystal / Robin Williams routine.
Billy – Lou Gehrig, You know, played for the Yankees. Died of Lou Gehrig's disease.
Robin – Wow. What are the odds of that?
I love everything about Primerica, but I just cant condone in current times a company so blatantly supporting the far right rednecks & confederate anthems by including 'Merica in their name. Especially, if I recall my German class in high school, the root "Pri" means "to love".
So, for me, this company is less of a cult for all their MLM/Recruiting/BTID/Etc, but more of a cult for using German language (Hitler used many words in his books & speeches starting with "Pri") & for so blatantly espousing hate filled love for racist/bigoted/xenophobic "Merica.
Go to the petition to sign to get them cancelled or at least have their name changed.
http://[email protected]
Check out this company in India:
View attachment 7345
Life Insurance Company in India, Term insurance, Life Insurance Plan, Savings Plan, Protection Plan, Insurance Policy | Pramerica Life
Division of Prudential.
Can I insure my goat???
Not with them…
Sheep-Goat-Insurance Policy – OICL
Wow, at first I thought it was someone scamming the Prudential logo.
Pra is better cause it is of Czech origin meaning Great or Ancestor. So, no need to pressure this company into changing it's name
At minimum, that would amount to 3 policies, which is about 30% higher than the historical annual average…..before cancellations.
Guessing most of the licensees in the upline are there to merely collect the overides & MLM shares & that they don't practice what they preach about writing policies
The uplines act like toll booths, extracting money from everybody passing through.
Thanks for the morning laugh, the one policy was on themself as well.
I wonder if recruits ever talk with each other? I imagine if they discovered they all bought a policy, and there was 300,000 of them that year, and the company issued 300,000 policies, would they all have a eureka moment???
Primerica tried to recruit me years ago, but it seemed to much like a MLM to me.
I doubt it, haha!
Seemed????? https://www.dsa.org/forms/CompanyFormPublicMembers/search?action=find
it’s 100% MLM