PRI - Earnings call transcript Q4 2017

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Operator

Good morning. My name is Kelly and I will be your conference operator today. At this time, I would like to welcome everyone to the Primerica Fourth Quarter Earnings Result Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator turn over now Ms. the will to call I Relations. President Kathryn Vice Investor Kieser, Executive of

You conference. begin may your

Kathryn E. Kieser

we'll in open certain Officer, Thank you, earnings press it our financial for Alison Kelly. are GAAP our Glenn fourth presentation, Financial quarter Williams, remarks. to Good Webcast Chief will all this reference morning, everyone. call. measures prepared and Executive and Web-site copy Welcome available A our on press attached of questions. at measures and on non-GAAP and Then financial non-GAAP today's Chief have our deliver Rand, release our We non-GAAP These reconciliations of release, are release. our supplement, earnings up financial call. call to investors.primerica.com. measures limitations, Primerica's and Officer, between

fourth during reflect GAAP recognize Act transition net effect $XX.X and of quarter. the the results of the benefit Jobs million Tax Cuts to of XXXX quarter Our a

one from this Given the nature removed non-GAAP results. our this of we benefit, operating time and unusual impact

During XX-K, could XX-Q. new updated the are Form those changes will or Securities Form the expressed the statements Harbor forward-looking to by The Safe events we annual subsequent discussed to make in of with XXXX on cause strategy. Reform or statements our reports in reflect uncertainties will these as accordance not provision Risks update differ Act. and Company that on report implied results in quarterly actual revise materially from the information, Company's or Litigation call, the

to Glenn. turn over Now, I'll the call

Glenn J. Williams

Good you, morning, Kathryn. Thank everyone.

the in quarter overview like the showcased while to of our regulatory In successfully to at accomplishments, and same our were adapting deliver changes the positive with to begin growth performance we results. up through strategic plans continue These across our and of as improvements rule to with role today the the significant we business, full Ongoing then and a model. an enhancements During a of core navigated I the DOL will licensing wrap accomplished the move XXXX, ability growth technology uncertainty, implementation fourth to and results of Canada. regime drive time implementing XXXX the play results, our future. for recap in fiduciary production financial new call

year the licensing starting the and representative the we their exposure revitalized beyond. During to and new process from through online training first Primerica experience,

on New in now based to deliver customized individual capabilities the real-time us their communications stage allow to business. unique representatives

our policy has strong better in for significantly technology XX,XXX increase XXXX. and end among representatives the momentum insurance to continued of in Midyear, insurance second transitioned and growth at half the account developing our These and be which amount over that force. value us We changes system new electronically, Platform XXXX, the sales This allowing of drove platform. state-of-the-art a effective appeal provided In to expanded receive life in insurance submitted assets. regardless initiatives, mutual the Products life These respectively have paper launched license mobile sales our app product surpassing this reduced we with we Savings proposition significant new issuers the issued XXX,XXX platform face we our XXXX ranking top use helped offerings order managed growth, and month XXXX. Investment Lifetime sales the insurance that North a the spectrum in efforts led and life in forms of fund by thousands. their with America. business, mobile personal also force to prospective interaction along platform of we to to $XX advisory electronic or billion launched of number to a continue enhanced representatives applications device each who And representatives tools our expect the with representatives clients and term Investment clients serve our to and broad we to allows sales our

of capital drive to combined with proven allowed financial XXXX. results management in successfully accomplishments us these All strong

the Kathryn in for As X, we were expand average to a operating with among to point basis of in as impact tax XXXX. ISP to values full earnings growth in by can year-over-year. be continue including adjusted a direct growth XXX results around share grew ROAE Slide XXXX, mentioned, operating performance, XX.X% year. operating ROAE our XX% ISP client reform compared XX% sales Term net In we XX% net you excluded we operating income XX% the On Financial adjusted results. our from well our see and and as it and XX% solid in expect in adjusted to driven total per should achieved the premiums increase asset best increase as and both the ISP industry, adjusted Life

to resulting the of stock flow to in us operating XX% diversified return XXXX. about and and of in X% XXXX of dividends, strong allowed earnings stockholder of outstanding form year-end our in repurchases Our cash as share retirement stockholders the of common our

reflected grew turn let's Adjusted fourth quarter ROAE to XX% Adjusted and of consistent XX% XXXX. line operating provided in quarter we fourth Life the compared net the XX% with fourth momentum continued Slide and XXXX. that results direct experience, increased Term adjusted in claims results Now revenues was operating to last quarter. X. business quarter of The guidance with operating on adjusted XX.X% in and persistency to premiums, increased $X.XX EPS income the expanded

fourth client perform values sales year-over-year. in well growth product Products Savings segment and asset to quarter due Our average higher Investment to the in and continued

trends force they the increase increase quarter. at a Slide X% quarters new in fees business licensing additional and of usual drove are strong the quarter. in independent waived The areas is sales who slightly to though ago licenses application that of fourth contributed the Turning half recruiting new year in licenses their growth the hurricane-affected obtaining to even X, size X% saw rate insurance less the from than We an representatives quarter, recruits from the rate. had year-over-year life recent and both licensing recruiting the in fourth

We expect strong life quarter, Life quarter continue experienced the size force an growth XXXX. we policies first increased Slide fourth year with similar X, over Insurance ago. grow to X% the annualized growth On the sales the can to Term in a insurance the in the rate of see you in X% results to

with in higher in productivity representative per a the well by grew per well-positioned forces productivity by Products the increase end following Savings remained the year-over-year, billion effectively a clients increased accounts record year. at products declined serving XX%, X%, among positive income a mutual slowed and for Investment one launch the lower largest prior America. trades insurance mutual Fourth-quarter driven sales sales retail this families shift $XXX to fund and end XX% as of policies at flows indexed the demand million remain principal managed sales client funds. continued license historical and life in annuity in were and services range Investment account managed versus protection a We year Although X.XX the to of annuity financial it outperform industry Net the line XXX% with retail exclusive to fourth earlier Lifetime XX% Variable sales our North the year-over-year, of reflecting increase asset of values in fixed industry, at the month. and $XX.X middle declined a in as larger-sized year. sales new quarter sales Platform

a make help become with these $XX provides to insurance sources, America. financial families retirement approximately falling of for approach and them households need savings savings short significant of we additional which income need their industry create protecting to retirement. additional need what and households the educational XX% There's do. $XX prudent middle American are for roadmap protected, income for all retirement decisions about Our trillion financial of According in targets, may to trillion life an properly reasonable saving

our We drive future for business to of our for value and by strategy management. are prudent executing through capital growth currently initiatives stakeholders striving all long-term

include; you have we see developed executing four and portfolio Investment and of to Products growth, developing Over the our products; the organized business; a digital strategy are and force our few business X, enhancing business sales Savings capabilities broadening years, protection components across our relationships. primary our of last that productivity; strategy Slide can course leadership of is On four and areas. deepen the client we maximizing our

clients. assessing distribution life our lifecycle. offering a better have Our currently a health We consider to other do partner couple in throughout offer We've have also to representatives license to allow with health their opportunities product significant also insurance of about their not but a areas. XX,XXX insurance have to products capabilities third-party to who us been clients' services and needs meet providers

see lending area We debt help provide we their opportunities. clients to quickly. partnering debt mortgage to how product also we show their payments out get prioritize believe Today more opportunity. to debt eliminate of as and insurance So clients in our an our health further budget presents a to consolidate order and of

make homes. plan a lending Products in families Later mortgage [EZ-Key] we mutual more will successful by [EZ-Key] better fewer program with and faster year a obtaining serve create application business to previous income and investment clients Our see productivity fund their many Savings complete now and more considering allowing which [ph] assets called [ph], this representatives could success the to equity license. ISP was drive an attractive business and very have new who applications. to long-term us should Investment launch it believe we also that efficiencies making tool, middle to convenient are

technology a execution commitment plan the digital year client in the This ongoing multiyear plan an and to We significant processes development delivery, invest representatives for processes. initiatives. in speed, initiative to investment innovation continuous about slower relationships. and complex have to in XXXX effectiveness to systems process. We and strategy Successful to the data lay systems, our enable agility, to $XX gathering to invest groundwork million deepen start we enhance and requires of modernize replacing end-to-end

drive We're accelerate our $XXX actively our around future to capital XX% by in prospects stockholder share to value XXXX. and In enables increasing Strong deployment to in by XXXX. to confident million our repurchases us generation in capital. about addition to expect capital we expected organic remain business growth, committed increase to initiatives and strategic deploying

of Had opportunity about We've XXXX. would We We dividend impacts an believe planned our have our actual back give also reform higher constituents. $X.XX from XX% raised net reform to Tax XXXX, positively our and accelerate experience. in this to million all invested communities, key for always $XX been in Primerica. our creates for us of people our to payable March clients. the than and been operating tax initiatives per our effective quarter share third income stockholder

more million carefully these expect to in $XX are we approximately While before considering XXXX. million we us, $X options the areas in invest to

Our commitment increase, to we the impact Primerica increase us the enabling our to will in communities foundation serve.

I'm We creating will non-management earmarking invest our and ability compensation to by growth. of the about our long-term for in new all value growth stakeholders. positions ahead people funds opportunities deliver for to support our optimistic and further additional our for employees

it to turn Alison. I'll over Now,

Alison S. Rand

business Slide premiums impacts reform adjusted continued year-over-year. and Thank on growth XX% subject pre-tax operating overview and Starting new behind of Term Term both in not key good the IPO-related margin share Adjusted XX%, how production you, consistent direct to into business, with prior and driven income were quarter agreements. revenues well the end-of-term X, quarter in results fourth our followed historical financial tax insight year and taxes before as Life operating you Today adjusted Glenn, reflect strength the the our the operating grew I an periods. and by current morning in to Life fourth in XXXX income XX% increased segment's as XX trends with Results drivers XX.X% expectations, coinsurance in quarter everyone. will from Incurred Primerica. by the year in period. claims .X% both fourth expanded in growth prior

slightly was year the expectations DAC assumptions of both this quarter, XX.X%, the in stabilize of a On period for which in fourth about The ratio is XXXX. in the XXX we year from for assumptions period impact ratio higher for Persistency period year. and prior XXXX with ratio largely On ratio, prior the locked and basis the not quarter, continued full-year in the XXXX. assumption claims prior as locking in XX.X% finalization due ratio and early-duration was XX.X%, As current such basis, ratio points year which do the up to our did that higher, typically was XX.X% The was claims the to benefits in benefits in persistency we persistency the the process issue second fourth year. basis, quarter full-year meaningfully half resulted of the the whereas mortality whereas was XX.X%, amortization the in consistent a period. XXXX a weaker and XX%.

look to below DAC from level. the non-deferred you we amortization or slightly commissions As insurance the our XXXX, financial notice will supplement, which XXXX at we to year full ratio, includes expect be

we fees change the non-deferred insurance commissions there $X.X The believe million shift expect of and will force lower adjusted level Life expense domicile was to experienced full-year the While we which weaker unchanged. the the to Tennessee, our to state changed this In see the in The net repeat see in taxes of deferred Company due timing we than quarter period. in EPS retaliatory for Insurance was compensation a will sales from Note and of first remains of of operating usual. increased change of about premium a program. insurance incurred results licensing $X.XX while X.X% recognition, the equity XXXX, a XXXX, XXXX, reduced be in half Primerica change the to do for a of recognized XXXX December not of fourth benefit for of expense modest year force the XXXX. ratio the in that representative sales persistency by

IPO-related investment this premiums in premium business to X% be to ratio basis, growth XXXX XX% the these beginning full-year seeding XXXX. direct in in the XXXX, that throughout On For continue was of net Glenn Retaining strong XXXX January due reinsurers. end-of-term reaching insurance the grew benefit it increase and recognized few to impacted to the the our sales stopped levels and positively which coinsurance, X.X% the XXXX slightly expect strategic years, level by Adjusted in just ratably largely a in a period, discussed. by on the that of year. initial approximately subject basis, we XXXX past premiums direct full-year when end driven policies will of runoff the business policies we in IPO the adjusted in expense

steady XXXX. continue We grow expect to to adjusted XX% premiums XX% long-term to produce and Term business continues by The Life to direct predictable in earnings.

in quarterly fluctuations Term and XXXX. was were margin persistency claims full-year there XXXX, While in consistent XX.X% margin during Life of the with the achieved

Term half would persistency from below we experience with stays slightly the XXXX earlier. normal modest level, experiences Life described to at and in margin mortality Assuming the XXXX be consistent XXXX, the Glenn levels reflecting second of expect the pressure business investments

on ago. sales our shift now managed Platform the Savings operating half other Moving Lifetime in the lower increased following segment, annuities XX our Advisors revenues product increased to a income revenue you'll during XX% operating sales-based Sales the sales-based year and June. Investment second in while reflecting revenue X%, of continued launch to of before sales of our earnings. a and increased products increased X% Year-over-year significantly XXXX, see from Primerica with accounts respectively ISP generating fourth Products taxes from Investment and quarter X% Slide income

While was $X the recordkeeping will in of contracts of account-based platform ratably in XXXX. by new a recordkeeping X% the these certain funds. economics growth do sales-based In XXXX the XXXX. we declined fee the client values. fourth change they XXXX, made provide in not driven asset-based our earnings what full-year retail to receive do average revenues, revenues asset recognized parties in related quarter million for improve above XX% of quarter, based fourth with in sales we benefit year-over-year, approximately our by December revenue growth was ongoing involved which largely mutual that with In XX% negotiated the U.S. asset-based Account generate structure throughout

expect in offset operating of result about to revenue the higher an incurred these new $XX increase generally of about million by we a of As contracts, XXXX $XX expenses, account-based will year. be which with in throughout both million

as levels assumption segregated XXXX, by typically the do updated fourth fund quarter Canadian the quarter lowered DAC to we redemption amortization we improve. emerging $X As continued this amortization experience. and reflect million In adjustments resulting redemption the quarter, about fourth to DAC both of in

portfolio, with subsidiary's experienced Products approximately insurance million assumption million also closed which in redemption performance you the reversal operating operating block products in normal can the current larger the income in of New Benefits asset strong Slide fourth invested York $X.X year, in DAC the resulted our reflects and before We XX life year the The combined was net update overall yields. XXXX. by segment quarter this period. of Corporate revenues low amortization and were a Other claims $X see investment continued impact investment when period, an than higher On market reflecting and $XX.X million were volatility. the partially increase Distributed prior taxes income for of offset of losses

rising While of impact somewhat reinvestment should provide yielding to better continue the rates will with gradual. us be investment opportunities,

XX or of an the approximately Over with average $XXX mature portfolio next will X.X%. months, million of around yield our XX%

Life's other expect quarter of agent lower were operating state and domicile to premium expenses. by move quarter we Company's were see quarter and discussion each than year. employee our fourth of you Tennessee. taxes a operating partially $XX.X of the in that million I'll normally change from XX, primarily the and last expenses The expenses can expenses. retaliatory fourth of increases change of typical related our reflects expenses the the see higher Slide million licensing XXXX, In year-over-year other and technology offset growth in $X the to These fees we Primerica first Now insurance year. insurance On higher

grant comparison retirement-eligible as and well annual annual the expect $XX the in related operational management period, higher premiums to by in first increase fully growth the costs, first year of unique asset spent and are to the other XXXX of our $X to As quarter. and increase approximately a values. related quarter million. Term as prior We expenses of are In expenses to million we awards granted, an reminder, Life employee employees first by about expenses quarter when anticipate ISP usually due equity to client driven

We million be account-based contracts, recordkeeping the increase by expect will increase more an ISP offset due $X revenue. to than in which new another

technology the which expect the be from employee technology discussed increase expenses, to We comes of Glenn and some in $XX million remaining investment related earlier.

and and concentrated systems the be will transform XXXX. modernize builds and future. segment two-thirds we'll About Other during initiatives, the in the our end-to-end the technology cost Distributed of Primerica way in Given Corporate delivers Products

our As other tax digital invest execute individual million initiatives. of based Glenn we an additional intention a to our expenses businesses strategy, our segments community, shift to $X these $XX in million will and as result to people also on mentioned reform.

We incurred to in working little plans, so XXXX. expected quarter very the through still first these is be of are

XXXX for Moving tax tax excess equity reflects the the reform in of the rate rate at was the now the excluding The the to $X reflected taxes, of awards which force of fourth difference income and year benefit equity of impact time sales when effective the prior the quarter million tax was stock in for XX.X%. restrictions lapsed, sales of grant between price period. approximately

rate quarter revalued of XXXX, Company's XX% increased result from were the U.S. reform, subsidiaries. include using net to of the deferred fourth Company's tax tax tax repatriated liability earnings taxes a deemed mandatory As was and Canadian in the a

income XX, the during was net transition these million the quarter. reduction on adjustments tax see Slide $XX.X of can to expense you effect As a

As Primerica adjusted from has income. net previously excluded this operating noted, benefit

in specific reform of offset the XX% mix to the the of two the impact XXXX. that rate our Primerica's tax for range Given benefit life Tax not lower U.S. rate insurance annual essentially do cash tax provisions effective insurance rate is tax but in XX% expected life effective to be includes corporate a between Canada, and business business.

tax non-life free not in from is materially a While reform. cash tax our businesses taxes change lower flow the Company's overall expected effective benefit from to rate, cash

and approximately the NAIC capital continue that to The to has committed be the Company's wrap ratio tax XXXX. with million Company's Primerica RBC to position statutory holding the be RBC remain calculate rate. federal to to points. ratio up, the or end estimated around RBC XXX% at a and strong in $XXX NAIC Insurance If the demonstrate of me let to company say negatively liquidity we risk-based the XX income capital XX balance I sheet maintaining of As Life strong reflect ratio been when calculation, would formula Company's basis the adjust impacted reduction not updated by a

tax corporate whether developments to and from rate calculated, the capital the be our at the RBC levels way does could view permanent NAIC While are ratio the strength. determine the agencies it monitoring change the We'll how targeted detract not responses changes is we rating by to lower RBC necessary.

generate from We flow significant free continue diverse to a cash our businesses.

in This business of block reserve distributable under our with create transactions, requirement need capital Term our with the repurchases to Life XXXX dividends. principle-based of million regulatory XXX about more Term reserving plans us As us the distribution when stockholder for capital in capital increase without combined grows, require from around growth Life lower have will XX% provides addition which which share the in to deployment the from approval. to increase financing ISP certainty our business, segment allowed

the open for let's questions. line up Now,

Operator

of comes Bergman from Citi. the Instructions] question from [Operator Our line Dan first

open. Your line is

Daniel Bergman

the look as improvements next talked the I you but each apologize color we missed expenses might should ongoing incremental the expenses over of how businesses, think years, about of of XXXX, we kind think for about, it how on and those, annual much both will should any if it, how technology appreciated. the of those isolated them couple be or community So I more

Alison S. Rand

the stays take that ahead Glenn, as It's I'll one. knows, believe, I interesting, specifically technology think everyone go same. the I and never technology

nature some our to will somewhere obviously we we continue earnings to invest would continue this of the those at our reform, we some type level see be improving one-time as I permanent are get going are do most fundamental in infrastructure, with annual our costs pretty changes items to to pieces benefits call expect those because be we trying one-time With to efforts. do to our while really associated would which to with of towards events. really benefits to So, so I'll have technology, employees tax around really that not regard long associated of

to of part expect expense would both I our fundamentally So, be going those base forward. of

Daniel Bergman

Great, Savings Investment thanks. over wanted strong with Products historically the just that and any run the really performance, given a funds see And sales thoughts of you sales to thoughts past then with would market or if or Any had you much correlation has recent on guess so, year what some and we had metric ISP annuity? maybe impact a had level market I mutual should volatility I shift might to have growth appreciated. continue and to on be expect from that

Glenn J. Williams

Obviously, on for tend that believe main insulated pretty to creates little quickly. street, communications confusion. I We main-street a of kind but a with of be lot volatility and it today's questions that gets from every market to ability,

of disruption very on the nervous. your I If volatility it's weeks quickly, sidelines If blip long much. people smoothes how is a our the tend the trajectory clearly business or to that's create that's it of I fairly something long-term and then nervousness period really to answer think question to continues think stand goes. months, a over the out when don't the some and going it impacts

of volatile a a for the time, exactly tell start little as period quickly, early to that of you longer see much be it a it's stayed it result a headwind question, fairly to it. assuming If answer rights that too would would right to be but think less shift itself disruption. I if So, of kind it's we'd in how

Operator

Mark Our of next the question comes SunTrust. of from Hughes line

open. is line Your

Mark Hughes

or Should greater over I stabilize be think treatment benefit the IPO the be it sustained, think will a for change the presumably year, X quarter. tailwind and that fourth that point said the should become the stronger issue, that should X I in even diminish it Alison, the should was time? but coinsurance of term bit X relative or for a impact, the impact you impact

Alison S. Rand

this I'm that singing are all but first there of So, you some okay. indicated to didn't we've Top, I benefit going time. Anyway, start disappointed correct Rocky quite be is that think for and you

a be might number Probably about lumpy grow the bit of off a remember, this little block starts think And of business. it got XXXX continue the to that. to I is for benefit. doesn't closer to a is, after X% tail reason to you really

what to estimate one we sold ago we premium the the whatever do incorporate XX% ahead But gave caution, what's coming our of see adjusted years growth, went benefit. growth XX to or thing XX, really it sort and So has number overall pipeline. and to direct to through for you with why that that's does of XX%

our You of have effect that down been we've one between that and seeing since legacy you be to IPO, business been remember, an putting we've of that's otherwise the old this sort since rate on business growth the would taking if been will, of mix, the things and sort the public. is new that we've

is last in adjusted overall of now level you a and few seen had we've premiums. with the component that this really combined haven't years Over to sort production, growth what because strong continuing maintain new trend that is business direct negative end-of-term

Mark Hughes

in managed managed that. move material to your moved quickly of revenue your it that change has up? Can up. that be how assets, for you assume model give it to sales account if a the revenue I asset-based of like asset-based percentage a account us I could could continue of looks sense Thank sales, that, assets understand The if properly. a sales that you as the contribute ratio be to that how quickly to account strong, is going managed

Alison S. Rand

our And model. permanent piece think is I a do of it

expanded energy for of have investing, the especially accumulated we we of who time lot and that population things a look been just their believe assets developing, the put you do have at our more people how over it time. do as a in component to If platform developing key XXXX, wants is we towards that

I component. permanent do So, think it's a

As a of assets a to for model bit shift, it does our really move. take time total quite

not under we've in So billion-plus that look $XX settling got management. assets We're managed. of quite you'll level

Again, more almost because or piece sales-based the mild up existing under pretty or weren't you slower. is shift that moderate no a adding Unfortunately base, but build large will be you assets it sales-based see we if will given in-force asset-based. management pretty it it hit will large, if are over will, think type sales-based there do between be a and so more be a the to asset-based our little immediately time. I profound. movement of So, would But component,

a lot the I good. I got Obviously ISP though we've really for high business. thing our it's say of that on a important very has – very a is we've got think It long rate there on it. retention tail

those quite there So, time. for some be should generating earnings assets

Mark Hughes

Then question, it was like bit a the quarter. weaker the little in a final persistency looked

it a little properly, was that? I bit I this but persistency think Am down little seeing looks anything here that has fourth bit still lower, year-over-year. then historically into a quarter, like to been read

Alison S. Rand

very that correct mildly are quarter year. if with last from. duration generally that sure. early earlier, the DAC are it coming not persistency what down. very and is fourth a where quarters, a much earlier quarter. in duration were persistency about not actually do weaker is really lapses does necessarily to I We're persistency Yu not say have would I'm maybe focused, and we better line, than was from perspective in talking is early It

you sure be where lapsation looking might you're not from from. I'm [indiscernible]. maybe getting that rate So at overall the

Mark Hughes

it got right. Yes, you

Alison S. Rand

supposed I too, those end-of-term, there. policy a I create last phenomenon think you're reaches where to from, does of policies bit and have unfortunately quarter, a little that Theoretically talked it you of all a to term, is the end about lapse. end-of-term If getting when are this remember

lifestyle, see and their or either we changes is of are is is What ahead they in and they there policy. go lapse. can are happening the their where they happening their in some lives, because market, whatever people, continue So renew in

depending consistent was early the again at if say, specifically volumes modestly to and but you So, we to from see that are looking year. on the can potentially details, the in which from the persistency hard lapsation. last see I going you if business period or if where underlying in block, at some for able you to you of to sort of end-of-term you what period, was in-force really look see, have it are improved And we will, is from are lift, roll-forward duration

Mark Hughes

was the Thank much. very it looking supplemental in at. and we're Yes, you there

Operator

Wells next line question Fargo. Sean the Dargan Our of comes from of

is line Your open.

Sean Dargan

the you a up It's made and of for targeted at the of representations around Tennessee question domicile keep the Tennessee. RBC that state change RBC I you're is about move RBC. from you to you'll in aside that which the run that product Putting have IPO, wondering the code, ratio to guess if given understanding going the let just high time lower of you to XXX%, I Massachusetts the a the selling. tax at the think seems my RBC hit

Alison S. Rand

quite we've Massachusetts, been the way early taken high keeping factor is the reason that organization attempt anything run a this capital stood really was RBC had their we quite always and in you decision our so we Again, But to not and a were or the do. when just newness the fact lower us it move has on the very separated tell what will we that a of of felt we I we to from in Part city. the the Tennessee. credit desire wanted work we've with to of on at willing to bit have of never operated out to has needed. based frankly

a trying be with Tennessee, understand I business' are. really it business to understand So, of with manage the what see had they from and it early needs relationships our and the dialog level. there can isn't the We RBC will very Massachusetts, that our strong same function open

on I ratio will to what simply think So, do. anybody don't a be looks focusing

Sean Dargan

free stock is think back by being ISP? driven capacity pay common that flow buy I about as of just and dividend, to the higher And cash Okay. out

Alison S. Rand

It's the other will financing two thing really under were things. specifically is here it time unique that could be build, is while free not the new does always able to distributable. the for be. that what past us did say very reserving, execute would our required going therefore One with felt the what but Whereas would approval or we ISP. cash regulatory we is XXX, One certainty transactions, or require principle-based absolutely and flow and take our like to what never out of for will they regime some have reserves under capital be around certainty are reserves we to in be item we higher

effort are certainty with looking the ISP. are that now you our as what So, well in what have and you seen of at for XXXX as seeing is here our strength deployment to increase a we having combination

Operator

[indiscernible] from from question line Our the Peter KBW. of next comes

is Your line open.

Peter

follow a repurchase. on increased up the share Just quick

represent proxy cash So free at good million the this does flow a XXX generation point? for

Alison S. Rand

believe for we a the good be available what at represents company. holding proxy It will

Peter

question start momentum growth it. Thanks. at last do three now, prior another recruiting, got getting strong year quick And the this comparisons see you years going has so for tougher continued and Okay, point agent on been really do this forward? so

Glenn J. Williams

see directly bigger, need often the the that's do mean same the comparisons believe opportunity. tougher. as we number clearly that at Peter, get which the time, for by in ever-increasing I our we impacts just the are offset we the marketplace, attractiveness But of fact what

most in tailwinds. got life, combination and like a So, headwinds of you things

continuing the we same be experienced you've a time we expect Just as we does at the vicinity believe to we momentum into growth to same incredible what and story we've mathematically, harder the seen in continue do got general of powerful the get XXXX. able recently but have head

Peter

Thank you, Good. everyone.

Operator

of last Adam from Blair. William our from question comes line Klauber And the

open. is Your line

Adam Klauber

look growing reps are pipeline doing sell get that licensed, fund for new sales amount a being mutual the of reps mutual how does Are Clearly or license well. the is funds? to to

Glenn J. Williams

which mutual at about both expected. little And Number our the is of reps, it's somewhat to time in little is calls insurance not sales force, timing remarks, same we The talked level we opportunities, of a higher sales prepared one pull growing. goes and being also a mutual to is still since XX,XXX, previous effort to our fund more have the my that look as get at force, reported people been second and it licensing the and due on quite be at is it and as that But to of growth. it both and group that as But we has more maintain, kind probably rate level exam growing about difficult size opportunities at Yes, of to of and be rate. a number expect first push we the commitment those a first. to from pool difficult, get the has just license. to also go the that's insurance that and delayed that process, of bit sales we which have resources it slower force fund one increase move license we that is because of so to our

as that [ph] will our licensing and after tool that to business easier. We have is The [EZ-Key] good rate trying going ISP a made for try mentioned, as changes take I right FINRA our growth make are well. business making people that to assisting are preparing before those we we some building of There we we technology believe And find make license. people changes future in attractive. both and to then, more accelerate on the for for they planned as has business, that are to that are now on we lot action reasons sure work get process that

a of the grow gets have sales that to force of initiatives growth. series hopefully a rate whole increase the little closer and to life so we so, to of growth continue rate And on it going that

Adam Klauber

some be will health one up? others. take new Will or that bid it XXXX more it till Okay. two year really the And then year till you products, of and did testing next mention ramps

Glenn J. Williams

things I about are are we from think I have take history. deliberate I right – as you seen exactly mean, you these think our very that.

to that succeeding recognize do we don't we is and important our businesses that. capabilities want the distribution to proud are of are very to now grow We in disrupt but we anything continuing also

So with Traditionally, unintended we roll hope to results it both methodically intended get consequences then start it once for, if we we move we an opportunity identify and from test it, project and then deliberately. pilot out there. that the bid and to the we very and a see

dead think I are you on. So,

after happens, and as on that I we'll it is look evaluation and to XXXX start success keep that. possibly think measurable posted piloting, year then you of and some to we'll achieve

Adam Klauber

Thanks lot. Okay. a

Operator

you our for Webcast. the was Quarter That day. call conclude the XXXX Fourth This like question to may Earnings the I last joining and Primerica thank now of disconnect. does everyone Results would

Primerica (PRI) 8 Feb 182017 Q4 Earnings call transcript