Primerica Inc., reported strong operating results in the third quarter of 2011 due to a strong term life performance as well as an increase in Investment and Savings Product Sales. Recruitment also surged in the quarter, leaving the company poised for a share repurchase from Citi that the company announced on Nov 1, 2011.
Primerica Inc, Duluth, Ga., (NYSE:PRI), on heels of their healthy third-quarter results announced a repurchase of $200 million, or 8.9 million share from Citi which will be accretive to earnings per share and return on equity.
Total revenues increased by 14% to $275.8 million in the quarter compared with $241.2 million in the same quarter of 2010.
Net income was up 3% to 40.6 million for the quarter or $0.53 per diluted share, compared with $39.6 million, or $0.52 per diluted share in 2010.
Operating revenues increased by 15% to 276.0 million compared with 240.2 million in third quarter 2010 while net operating income was up 5% to $42.8 million or $0.56 per diluted share.
Representative recruitment increased 43% to 83,074 compared with third quarter 2010 results. The growth was attributed to a recruiting push in July after their June convention.
Although moderately offset by a higher expense base, the year-over-year results were indicative growth in new term premium, investment and savings products and client asset values.