On Aug 27, 2014, shares of
) scaled a 52-week high of $50.81 on a second-quarter earnings
beat. With about 0.1 million shares exchanging hands in the last
trading session, shares closed at $50.76, gaining 1.4%.
The year-to-date return from the stock came in at 18.3%, which was
ahead of the S&P return of 8.2%.
With respect to earnings performance, this life insurer delivered
positive surprises in three of the last four quarters with an
average beat of 2.6%. In second-quarter 2014, Primerica recorded a
net operating income of 88 cents per share that was higher than the
Zacks Consensus Estimate by 6% and year-ago quarter figure by 25%.
The performance was primarily attributable to improvement in Term
Life premiums as well as Investment and Savings Products.
Primerica reported total revenue of $331 million, which marginally
came ahead of the Zacks Consensus Estimate. It also improved year
over year by 9.1% driven by increase in net premiums as well as
commissions and fees.
The quarter witnessed lower expenses due to the settlement of the
Florida Retirement System (FRS) in first-quarter 2014.
As part of Primerica's efforts to improve shareholders' value,
Primerica completed reserve financing transaction on Jul 31, 2014.
The move will enable the company to deploy capital worth $150
million annually through 2016. Additionally, in the reported
quarter, the company repurchased 0.5 shares worth $21.9 million
taking the year to date tally to 0.8 million shares bought back for
a total of $35 million.
On the strength of its solid operational performance, Primerica
generated return on equity was 15.4% in the second quarter,
improving from 14.2% in the year ago quarter.
This Zacks Rank #3 (Hold) stock has been witnessing upward
revisions in the Zacks Consensus Estimate in the last 30 days. For
2014, the Zacks Consensus Estimate moved north by 1.2% to $3.35 per
share as 3 of 4 estimates moved up, while for 2015, it rose 1.6% to
$3.74 as 1 of 4 estimates moved north.
Last week, another life insurer Voya Financial, Inc. (
) reported a 52 week-high of $38.88 on solid second-quarter 2014
Stocks to Consider
Investors interested in life insurance companies could consider
stocks like Fidelity & Guaranty Life Common (
) and Health Insurance Innovations, Inc. (
). While Fidelity & Guaranty Life Common sports a Zacks Rank #1
(Strong Buy), Health Insurance Innovations has a Zacks Rank #2
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HEALTH INS INN (HIIQ): Free Stock Analysis
PRIMERICA INC (PRI): Free Stock Analysis Report
FIDELITY&GUARNT (FGL): Free Stock Analysis
VOYA FINANCIAL (VOYA): Free Stock Analysis
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