Primerica Inc. did well in the first quarter, and one of the most serious obstacles it faces now is delays in getting new life insurance agent recruits licensed.
Glenn Williams, the chief executive officer of the Duluth, Georgia-based life insurer, talked about the licensing delays Thursday, in a conference call the company held with securities analysts to go over first-quarter earnings.
Primerica focuses on issuing life insurance and related products for middle-income people in the United States and Canada, through a large network of career agents. It also sells financial services products for other companies.
Overall, in the long run, Primerica would prefer to operate in a thriving economy, with high levels of employment, than in an economy with high unemployment, Williams said.
Today, however, high unemployment is making attracting easier, he said.
- Links to Primerica earnings documents are available here.
- An earlier article about Primerica’s earnings is available here.
“However, the stay-at-home orders did have a negative impact on the first quarter licensing totals due to the need to postpone live licensing preparation classes and testing providers closing their testing centers,” Williams said.
About half of the states are offering temporary licensing options, and a few have started to offer remote licensing exam options, Williams said.
He said Primerica has tried to make up for serious licensing exam obstacles in many states to improving its field training bonus program, which encourages recruits to start building their businesses even before they’re licensed.
Primerica is also encouraging recruits to sell products that can be sold without a license, and it has been asking states to add alternatives to the traditional licensing process, Williams said.
Primerica is reporting $72 million in net income for the first quarter on $525 million in revenue, up from $79 million in net income on $495 million in revenue for the first quarter of 2019.
Primerica leaves premiums ceded to reinsurers out of the revenue totals. Ceded premiums fell to $387 million, from $390 million.