PRI - Earnings call transcript Q4 2019

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Operator

Good day. My name is Mike. And I will be your conference operator today. At this time, I would like to welcome everyone to Primerica's Inc. Q4 2019 Earnings Results Conference Call and Webcast. you. Thank Instructions] [Operator

to Head conference of like Miss. over Nicole Russell, Investor turn would call the to I Relations.

You may Ma’am. begin the conference,

Nicole Russell

operator, with our investors.primerica.com. posted materials on everyone. website morning are relevant Earnings at of and Investor call Primerica's that earnings you, are today's our along Quarter copy Call. Relations Welcome release press the to Fourth A Thank to good section of

Executive and Officer, Officer, Joining will Glenn and our our call and Financial Glenn today our open up remarks Alison prepared Chief Rand. will the Alison are, deliver Chief we for Williams; then call questions.

call, Safe may contain Harbor our Reform forward-looking the the of of with Litigation Securities accordance During our provisions Act. some statements comments in

statements our The refer subsequent could information. list Company results risks does recent assume most Form duty implied. a of not as uncertainties expressed those these reflect and you XX-Q to We any modified to to or XX-K revise Form to from that filing new for materially by differ actual filing or cause update

our also certain operations. Investor non-GAAP company's provide release website. insight at believe additional measures are their end we are our GAAP which the included the of reference measures and numbers of into respective available non-GAAP Reconciliations on also to earnings Relations We

would I now to call over turn the like Glenn. to

Glenn Williams

views review quick Nicole. perspective remarks, Alison as thanks XXXX a a fourth results. After I’d our of my recap everyone end offer on financial provide And then you, to our my Thank results for XXXX. Today, joining today. will a like us on with quarter whole, and

to adjusted adjusted income revenues reported of see three of X% of XXXX, XX%. our with you’ll slide operating we Starting quarter another up compared solid quarter fourth deck, the and pretax on presentation

ROAE earnings operating $X.XX represents year-over-year per XXXX. the increase quarter of XX% and XX.X% adjusted during fourth share which was Diluted a were

XX%. pretax similarly adjusted an income operating increase of a $X revenues strong Adjusted for Full record adjusted X%. annual increased while earnings million were with XX% setting represents share which year diluted results increased of XXXX $XXX billion in per

XX.X% met stockholders, our common ROAE In and count to of of million operating compared of we earnings reducing XXXX. million by XX% of approximately total paid repurchasing $XX a returning was and to in XXXX, stock X% year-over-year. XX.X% dividends goal share in our $XXX

The continued our financial our business gives in XXXX to of raise million increase strength confidence capital share. model and first XX% to by stability quarter $XXX us $X.XX dividend per and to deployment

added the quarter during the new added quarter Turning fewer X% now recruited than to comparable to review or We results. to Slide prior distribution which life the during fourth fourth year’s quarter of quarter, number four XXXX. fourth XX,XXX the insurance representatives and licenses, fourth is new the XX,XXX

XXX,XXX year XXXX. end life We with with which in insurance is line of the license ended the representatives,

positive on Slide life the see term For we business of our continue our five, impact efforts. to

line month, During per the X.XX fourth in which representative is quarter. last historical licensed line X.XX insurance per with insurance policies fourth X.XX life in our year’s year's we quarter, issued to prior with Productivity policies, at XX,XXX quarter. remains of life and range the within new fourth

our continue in new will to long-term mid-single that digits. policies forward, we Looking issued believe growth average rate

by quarter, last riders enhanced other mentioned growth has increasing additions. coverage also benefit premium and we As

and to were record. quarterly of savings six. and quarter Highlights from increasing XXXX the presented billion during quarter our setting $X the investments products new fourth a are on compared Slide Sales business XX%

year-end annual markets market in for Ending of XXXX, pullback. strong $XX client the asset net a mark billion inflows time values first recovery surpassed of $X.X equity from and client new to due billion the the combination the XXXX

management. continue that offer or solutions year-over-year total guaranteed streams assets increase to Middle look in protection. under income XX% investment income This for downside families represents a

remain annuities features attractive those demand. Variable with of growth. products sales offer partners driver annuity are high a Our major that in

Sales in XX% the of XX% year-over-year full variable last increased comparison. and to quarter compared fourth year's annuities

take reflect want is XXXX I moment a that to us, on the behind Now to full year.

and Following start in year-over-year years rep XXXX against productivity apps, several licensing, of recruiting, difficult had consecutive issued a weak life comparisons. strong growth

the progressed, we signs year the line quarter year. either By to were these most improvement. fourth of XXXX, as of back the However, saw prior of in very close or numbers levels of the

incentives. a including growth a to of our result efforts, Our process create and progress is improvements, our messaging for of our all efforts focus our our

in During XXXX. amount, provider issued we XXXX, term billion in term $XX we America life second milestones. believe largest which life insurance rank during as the We achieved face North will insurance several us

$XXX We now level insurance and force. amount a base record life of have billion term of

earlier, sold strong financial $XX performance also discussed noted a products, and values. to I in over These high levels all-time disciplined led reached and as investment of record our business We the $X.X billion production client an approach in asset billion earlier.

the More our with financial burden the simultaneously one, than associated families them against force loved helping a of a committed helping invest ever, for income sales loss future. protect while middle remains to

off our for of XXXX field we future. the ever momentum and the the largest is XXXX to started on senior of our the sales New force meeting communicate in most our leadership strong members with building to from Year end engage influential Dallas start, a priorities our by holding

the during from vision meeting. a message for our our across cast with strengthen U.S. senior added Canada and nine regional we to meetings leadership new decade January Vice and from the message, reinforce the Presidents To

such recruiting, designed drive we laser assist of beyond. events, as and these in a growing strengthening We're the wholesaling our insurance introduced messaging, intensity and our number training. including included life in higher licensing of product a in size force. to sales of business, on the practical technology and These focused initiatives XXXX new our growth At and sales very to support team implementation

We new increasing business market, forward making a continue business. fulfil experience, which we celebrate. New our a the opportunities view continue conduct a look also our we a the also marks XXXX in our with in for to representatives invest as to company, We with it not traded where client an our as beginning opportunity decade It anniversary all see marks to milestone It our important to need intelligently improve serving to XXth publicly to clients. while filled easier also only excitement. Year but of

over now that, With turn Alison. I'll to it

Alison Rand

and you, morning good Glenn Thank everyone.

the to segment Term turn briefly seven, expectations provide we on insight XXXX for our Slide results As then Life quarter and let fourth the segment. me into review

a revenues taxes direct million, fourth the before in quarter, X% grew increase Term $XX adjusted an $XXX In by premium. increase million. driven Operating Life income year-over-year income to of XX% XX% were

weaker our in was XX.X%. claims the the typically the individual due in amortization high The as ratio benefits ratio the Life Term year persistency which the year XX.X%. was the at generally well claims DAC quarter incurred elements for at to segment, ratio prior line were with of quarter XX.X% below Looking prior is of fourth seasonally in

the a throughout period several noteworthy a factor. DAC in are weaker of historical to XXXX persistency to ratio, After there back has XXXX, drivers persistency late persistency XXXX of and in improved and level. XXXX is While stabilized

last than quarter ratio shows the largest quarter. in improvement date for lower higher than had indicated year fourth the insurance we year. prior slightly was The to X%, period, but expense quarter prior X.X% versus the the the The

Life. expenses, During shifted cyber the of information year expenses quarter, security on segment and some trued we which our allocation of basis full a up Term out

insurance for as the quarter. the expenses XXXX, other and other for I in operating segment call. of company-wide operating expectations with the high-level as allocation expectations including line our insurance and later discuss for were a well will Company-wide expenses quarter view in

deeper with Life to discussion for Term our a premium. starting projections shift dive XXXX, adjusted direct Let's into

direct and co-insurers. premiums shown ceded adjusted first premiums issued on As policies IPO, direct the IPO pre-IPO Slide on include year, post eight, issued and renewal premium direct on policies premiums direct to

have drivers. and Direct our premiums policies of rider. increasing as first as by Each of each the increase within policies are mainly primarily of coupled issued year driven with premium well these benefit those additions the number growth components year, from size different

Post enforced IPO, from the premium to sales enforced premiums year often our grow direct referred back renewal the We've of of this block another to post building base. on as IPO. layering year each

off closed aggregate grew renewal premiums Total ceded post in to X% been premium direct XXXX XXXX. we end accelerated premiums around beginning stopped X%. of at which level the the in decline the have similar runs feeding reached Historically, that period, the declining their in however, Pre-IPO initial co-insurers premiums ran as rate, XX% block to the IPO a IPO about per rate year direct premiums off. of

side the expectations The premiums chart right component. growth direct our adjusted by of this on slide shows for

combined issued per assume policies growth X% from of edition growth year riders. First increasing year in with benefit premium in a premiums hypothetical

renewal force. continue diminishing business Post but the comparison as to added rate is in end smaller a block new at each premiums grow, growing IPO of to

annually X% continue We to toward expect a at to X% decrease to off and IPO ceded trending a of to co-insurers the premiums at run premium pre-IPO rate annually. rate direct

and by annual expect both for XXXX, approximately net Net, X% to in for sales at grow adjusted a premiums we X% by growth growth direct decline rate the X% in to and Continuing the XXXX. the or changes in not claims DAC in significant either and XXXX any aspects ratio foresee with performance, we Term XXXX. of other Life ratio do benefits amortization

a should remain that Term business. allowing DAC benefit increasing technologies business. Life investment ratio growing riders newly still recall, for Margin generally higher range support have and in in mid-XX% the ratio benefit lower block new than But of issued but the of

year-over-year slide while nine, products revenues Turning before income income XX% now $XX taxes to XX% of our $XXX.X to savings million. investments increased on increased million and segment

quarter sales. annuity percentage product during Sales-based revenues the line during as revenues in revenue higher net sales mix reflecting growth the generating in of grew generating of product period. sales a around with Sales-based increased revenue XX% a

the XX% asset Asset grew benefited growth market as from values, based conditions strong recovery average and from the throughout well pullback quarter with XXXX. of as revenues XXXX in sales market which client in fourth and the line

of historical amortization segregated was million in $X revenues from base to favorable setting benefiting due values well market average assumption fund annual as about were net percentage DAC levels for the lower than also as Asset performance as redemption. a quarter, asset higher that

largely in I operating earlier. due discussed the allocation was in expenses Rise segment revisions to segment

declined million of benefits other while X%. rose our corporate of to operating $XX.X segment, adjusted X% expenses Moving and $XX.X and distributed products revenues million

decrease as support block the revenues in allocated growth as lower in to well Term The the segment income NII income ancillary is segment Life to business. product lower investment of reflects as more net

the operating in amount block net, and C&O by in by benefits growth off lower driven expenses invested counterparty X million a ordered receivership. income overall expenses X% The to driven a higher asset net million reinsurer into company-wide basis, charge to by increase was $X.X closed yields. offset and other write ceded a On and business partially portfolio grew on a insurance of investment

to business XX new ceded particular not have this years. in over We reinsurer

XX insurance a of to for expenses. slide now discussion operating turn consolidated Let's other and

which million year-over-year $XXX.X fourth expenses our employee in our Term quarter, was was year-over-year to growth the a of salaries driven During support X% the increases growth that business. expenses Life by The line increased in with total of expectations. and

technology $X we've higher the a in technology around related included total initiatives costs million also It to year spend in discussed for of million $XX various incremental throughout XXXX.

will we expenses $XX X% million or XXXX, operating insurance anticipate increase other to between year-over-year. forward $XX to Looking and X% and million

expect XX% and split to expenses XX% XX% Term other. Life, insurance and to about be We total other and operating to IFC corporate to

Slide first components reminder, due in the equity about quarter main million quarters February. higher growth. generally expense a of annual than XX grant expenses the of to As $XX management other are awards shows

keeping includes fees. tied record such source fees revenue as directly taxes, asset base category premium first that expenses to are and a The

savings [ph] operational efficiencies $X increase in provider reflects approximately ISP changes past. the and contract $X discussed The year-over-year the service we million million shown from of in

employee Salaries merit is due cost. employee million. other staffing are to related a $X moment in to increases and to higher those The and I'll of benefit a which combination related technology, annual expected costs grow increase excluding by approximately discuss increases,

increase $X are costs Technology expected million. by to

Life and the Term new infrastructure process and intelligence business continued improvements, sales priorities modernization. client Our for include year engagement, rep

are both we Salaries and technology in are new for and included enhance opportunity, are that distribution. our this to growth benefits product existing and in To assigned employees contractors investing revenue initiatives category.

is which multi-year million embarking costs. of program, on to a are $X our to add We expected expansion mortgage XXXX

their adding to As Term wholesalers a efforts. included of mentioned and business are our $X team million support Life this we have in year's to earlier, Glenn support budget

potential we've and REG to require added and million SEC’s other other $X changes. associated the costs mailings cover Finally, BI with regulatory implementation

XX. me Let Slide up on statistics company with wrap holding some

our tax annual XX.X% was and which full XX.X% with is the for Our during rate estimate. quarter consistent the year rate

the be year expect XX.X%. XXXX about We full rate to

Our strong corporate ample sheet liquidity. balance remains with

take around the As XXX%. extent is goal of Life ordinary approximately company December our continue dividends is be of to RBC Primerica XXst, risk-based near-term and range. $XXX low-to-mid with We XXX% maintaining holding Life ratio to liquidity from in million to the to plan capital estimated statutory available the ratio Primerica

Operator, questions. let's open the line-up for

Operator

[Operator of have Ma’am. we go Hughes Instructions] Please question Mark first Yes, SunTrust. come And will the from ahead.

Glenn Williams

Good morning, Mark.

Mark Hughes

morning. Thank in did the and an recruiting. outlook Glenn, you. sales give for force the Good you headcount

I done missed I the didn't, if you you've sorry think that past. it. I'm

Glenn Williams

No, we it's tend same mid-single I extremely term, mentioned that's look I kind you didn't the as in of as range my policy long for a generally prepared term pretty relationship. life digit the force sales remarks, range Mark, issues. new over the And new direct out know business have and to a

half. XXXX first So long term, look dynamics half over we as start in then I recovery the a we very that and some describe from the the in second see with the weak

as with we over on go. either that multiple that's see we of of what anticipate kind as side extremes so we And years, that

Mark Hughes

if little bit you that be right? issued improvement that? the confidence – that mid-single in trend, new the the from is a digit, would What of recent The policies is gives

Glenn Williams

Yes, to our And of back we thought some quarter. that’s of the I'd couple in quarters have we Early that. hope I the to close from several take and the XXXX, we talked discussions the late what ago, getting we've that a in fourth quarters during of that seen But seen to key there on it mid-year long-term quarters as the kind by four that is confidence I I'd recovery. back be get did were average. even

the quarter the during we progressed. as quarter, saw strength even And

that's view what think based to seeing. on don't all at an I So unreasonable have we're

Mark Hughes

you sales force say sorry be anticipate where Yes. total say in from months Glenn, you did I'm would the to XX now?

Glenn Williams

No, we specific. haven't given that

of under lot moving a parts got that. You've

that haven't been So that in number. we specific

Mark Hughes

Any general sense of that?

Glenn Williams

grow that's no, I again, we But Well I the mean, whole we hope purpose. don't. mean hoped it. that I to

see or a little the you term, And a tell. to it again XXXX. XXXX, about feel good very you, But digits good did little to to early tell the to about the mid-single that. worse think start in I in You know long see feel you're going see, we whether little close better A can I XXXX. it's we close,

Mark Hughes

persistency. on then And

basis? improve improvement the persistency I'm also, And in quarter. a XXXX? you You whether nice some talked rolling about that a in of portend measure not fourth on Does that -- in sure it know you detail are explanation to some of that why you've is any the gives more but data underlying a improving? I that about you return got. was normalcy, seeing anything sort

Alison Rand

Sure.

in look historically, very I that So -- look we if do predictable range. actually if and in you similar go talk back very we business We're actually see about trends is like with historical mean, we our is how and -- now things range. productivity. in line we back persistency a that go much this

really today. a very don't now So, I be are are by should I fact in a low range. duration. see in why But we and meaning expect at so, be there where very look increase reason range There'll to volatility specifically from at obviously very persistency, historical that we even the you on range, the early duration strongly end our of in comfortably -- when dramatic

necessarily any So, think dramatic further I be shift. don't there'll

our always improve. Really, this our do to ourselves get to level. goal continue to back try we Obviously, particular to things been had in to business always

bank persistency. let do me banking are making able ensure on to basis over it get I get specifically it is for out that little any do account be years, we sometimes kind highlight tools upfront simply our But to has help range. can available make information Anything just didn't application. really silly, link the or sounds will great we things been say error a we a We we as have have the which help couple someone and to taking of kind numbers very a of to in information sure And always few in an we that says, convenient doing back the are advantage it with have the to we large filling ongoing know marketplace. of really a last but

or over the of a progress process. of billing But that gotten again ultimately, would and I accuracy historical with just we say, have back have collecting have this our we what some put administration improve year our tools I'd last, helped And really the ease do think that the several place in we And accelerated two persistency. and to norms. call

Mark Hughes

there? potential And some then as quarter. Advantage final a thoughts Any of Any initiative Medicare updated update question. were -- there discussion last

Glenn Williams

that We just on continue various that space looking We business to could the cannibalize very what do We're additional we looking still models to what opportunity. have don't We're any we immediate the launch than not compete do we simply force compensation to with our that at size additional to profitability, for do. growth, rather sales careful. try monitor plans additional anything. what radar. our today. complement of We're up for It's

very as there's the that we're so, we're And there into that we out future. opportunity. But optimistic still studying an somewhere look carefully

Mark Hughes

you. Thank

Glenn Williams

Mark. Thanks

Operator

next, have of Citi. we Dan And Bergman

Glenn Williams

Good morning, Dan.

Dan Bergman

of if drove different what a or in about if to the color that in Good Life segments you more just right I margin any XX% the the expenses I profitability? to more change believe mid across morning. guidance start, XX% guess on is just whether about of more it wanted for Term have remarks your And little than prior like quarter. better of improvement? talked sounded any it see view that prepared last there's range I you mentioned reallocation guidance core was I reflective done a

Alison Rand

sound doesn't Dan. like, This

if -- it this don't Dan. know I is So is

Dan Bergman

Yes.

Alison Rand

sorry. I'm Okay.

sounded different. You

been I wouldn't Anyway, told. Dan. was hearing. change. really your know, say I my it’s didn't Maybe else be there's that Truth line. any using Sorry, somebody

budgets XXXX. for We have our now actually finalized

had say would November more said said in what But on very would I back little consistent. then than our clarity really I have a bit call. what and I I back is now So

out were allocation did it perspective, you in of do going fall expenses where an which have to from my I remarks. to Some with prepared share with did

So us feeling pickup frankly be sort of which hoped fourth overall the would quite in did persistency to it is a bit the quarter see XXXX that we in had where going more -- we gave frankly, which be, was like quite range. just and historical little and comfort

change think So, don't in been there's any sentiment. I

at. Just slightly budget more a to because I have precision now look

Dan Bergman

the And Thanks. And a and VA environment. I continued -- Got report then lower given, annuities it. annuity strength. of annuity wanted to or you'd plans how product changes Or your sales rate some pricing of been source to features general providers. writers and in thoughts any variable Investment somewhat if are seen maybe there just on there've Products, changes just going or have to just forward? been number by great. we've That's there have expect those any the after see low to for trend be products Savings sales sales index a recently given of pricing

Glenn Williams

in my the continue period for the strong the said either be of by out to a is little in sales which appears as I significant clients They've any our we But driven a the political unusual the that be with that market, it time, with or length there long. product itself are close in to environment. to of for market bull strong be disruptions to stay remarks as concern there,

on I'm VA. people stability providers a aware value placing pricing discussion point. it and with has not changes high with any benefits this of our that so, product come pretty the on at And the

that of is, the not to So, providers. from answer of that I heard coming think any our have

and and anticipating The business harder the that So continued bigger obviously. in gets -- strength business. bigger get percentages harder numbers as we're the

a it's market VAs that. of favor mix of VA. strength the shifts think we might be But clients happen would that this But could left. disruptive. disruption to in math what little be disruption just period barring some of Looks momentum got like So gets But actually in dynamic. continue, been it's that fundamental there normalization our some some do performance with sentiment of hard the you could to an if demand expect in there. it marketplace some favor extended in unusual been the in the out of should and changes for But of the we're read and the have has and aware not of any --

Dan Bergman

you my Got Thanks for questions. taking it. Thanks. of to both

Glenn Williams

help to Happy and thanks. you

Operator

Kligerman have Suisse. next of Andrew And Credit we

Glenn Williams

Andrew. morning, Good

Andrew Kligerman

And Hey, definitely Andrew good morning. Kligerman. I'm

Alison Rand

voice. I recognize that

Andrew Kligerman

if you Glenn, checking, looked were Anyway, just levels were It and that your point, sales I historic force mid-single digit. at Alison. the I appreciate

people increase fact, look In XX. you nobody thought you going reps of years as and is yet were I from XX XXX,XXX going lot were think didn't to to ago -- recently

put force. I in just big digit You year XXX,XXX on going technology you're grew now highlighting? your that Life look X%, I flat. number you're gives to you this for that your higher what to -- you commentary adding intensity, you or finally reps. at something Term that And the confidence? growth XXXX X% gives that's mid-single that and wholesalers, Can get stalled finger confidence it's that we Have new a sales

Glenn Williams

you to everyone to with to growth normalize make things the was Well, it me exactly I we our at same with And share before. lot said, or while our and Because what whether I trend discussion miles share the force long as wait the sales in understands that in having, Alison move common a meetings. put tend sit describing We as very force was we fire that want sales for persistency. to the that back a term had trends our issue. January we've with frequent Alison persistency mentioned question. sure of is And recognize you just addressing on that's those January, productivity. of let I don't

back few the for we've ways done numbers of and trend as times to the top corridor. a those some in We out of are into looking move bump

response those that? you the can how decade. that XXXX, next only Andrew, so, directly do XX-year not you great a but when something a there's from in to long we accomplish of can And And because much start field accomplished there's that? we visualize about see meetings think in -- got you can we you to do the what leads period so So, question, talked over a during vision effect year. just how that start your I be no, But thinking for time. really is block, How impact people

trail, bow logic that beyond down huge took the grow is I first them can when where the at so, first just I you looking with in at this of today. exists right are -- And we now the need all, just you mean, we start marketplace what's out there moment.

as many in a $XX before, is trillion there's And that of market. is protection believe half middle gap, said times I've we about the

a So trillion before a yesterday have day There ton is We even turn don't $XX XX unmet. that's years plus. trillion need a company. of there We old yet. out in-force as

to population over like XX increase to population to market So a decade, estimates there's I see decade are I the easy dynamic. that Then it's found. we you look Canada beyond best mean, million at it's start and the the the in saturation in not where when number next starting point U.S. next is

end to areas population that fastest within the markets. that's tidal Primerica. when Gen Those look But diverse underneath is going in in and younger particular of the be for Z, The growth and that markets be strength happen recognize you that millennials of and the to growth coming. wave tail

very We organization. are diverse a

base customer extraordinarily is diverse. Our

competitors. Our extraordinarily sales compared diverse our force is to extraordinarily and young

we market. that positioned in believe in sweet to we be grows, market the happen spots as the So

are external in favor. we that And our believe dynamics those so,

to we are going with what do so that? And

to so, product our we're health to to our expand to learned the about Primerica business. our thing and mortgage our do And set. year attractive. We for at more kind We're business we're the last mortgage make a going going going lot We first looking the We business improve going mentioned of building support just thinking. phase. We're we're is moved senior pilot entrepreneurs.

our categorizing into we're moving as phase. the mortgage Now business startup

better product more set, support, financial increasing makes to people. better recruit So, opportunity more attractive us that we've got

Primerica sales very pull-through with all on things increase process those say, hard want then build do business. when can working improving then, to licensing to We're that I the people we of productivity. And the and the

the And see external limitation and So, I ever nobody's the we're other on ways done significant the Andrew, that. I it before. and there's any think there's I then that all think side than There's the of theoretical. don't working practical fact of that in

gosh, just vision all I get? we'll a that for to break just that grow. minute big that and big block And expand to there's middle can us that nobody's simply the think we'll it's do it it we I continue the now. my How room we have believe, and then mile. mean, four will

Andrew Kligerman

the on ISP following end EZ-KEY And then, very kind the launch mutual to I'm sell Life That's helpful. to reps sales sell very, Thank you. in uptick And an products of licensed that seen has of tool? topic, funds year the to were number many curious sales as how Primerica at XXXX? Term of willing reps

Glenn Williams

in somebody success the because area. number that yes. That's to side there record success and having business mean, interest. answer that front. number force continued in they year that do of one And attraction are growing sales the to that course business. on XXXX, another is, get that express call full other exact our is see wanting that give we seeing an and We'll is I -- The a is license that this we of you grow and we succeeding number, usually on of setting did in get we're

and our number EZ-KEY important XX,XXX so, about story, at has change. that part year-end of so because -- was been And an

Andrew Kligerman

much? how up was that And

Glenn Williams

That believe. about X% I was up

Alison Rand

X%.

Glenn Williams

Yes. that so number And America How two had we Canada. intimidating that's cause North which mutual this license, know, Those is number. a the fund pieces. said, bit a bit call, way licensing And by before exam are fund of of on I X% for wide new little gave we And people people did a said impact it registration. as recent us? changes year. was this has you into and that broken We've as going pause we process? Where for you a been to to seeing, the the the have the adapted slowdown includes pipeline. a a what continuous were mutual little

And the we ratios process. than we were our out under experience but old so found past that -- as they are have actually have higher actually

So it's down is, interesting got once start to people out. and actually trying they people then, human we nature and it, what check wait being slow cause But the performed it to this let's better. unknown

that us So that licensing. that go encourages forward, build momentum we can as in we

simpler advantage. We a huge getting continue attraction. like area. makes technology That's success into to that the then have a that huge EZ-KEY is intimidating that less and in And business

once again of a driven working the for we And that the to in term that. well primarily force So that. larger underlying that has to number been as and recognize growth numbers. working sales we But fronts long toward continue on need there productivity a grow it's

Andrew Kligerman

Thank you much.

Glenn Williams

Andrew. Thanks

Operator

And of have William Blair. Jeff next Schmitt we

Glenn Williams

morning, Jeff. Good

Jeff Schmitt

Hi. morning. Good Good morning.

product there? product is going looks else Or mean, and it shift something been Looking commissions net at I is the you're annuities? there on like or five on its X.XX% that driving that? sales, years a more selling more. higher What's than to just

Alison Rand

have net profile shift. within some There's of bit last -- Yes. little a a annuity product There's also We because on year the launch definitely revenue annuities. different ratio. that it's actually slightly actually of products

piece it. of also was that So

ratios. was So the variable slightly that of it But was well function us all new net it is give as some variable towards combination as of shift annuities overall revenue annuities. annuities higher in a answer short products mix a variable

Jeff Schmitt

but was in flat was good commissions the going say, stayed annuity. because growth really to I year, last Okay. net

are annuities some yet, there So, changes within I there guess?

Alison Rand

be on at And products new have relatively that. and XXXX. late I were few a for they launched it launched different -- launch at Could did earnings that profiles us you're were recently. think that's But We they wrong what seeing. slightly Yes. were

Jeff Schmitt

that sell Did then, you're not of from the there a fund for products, annuities agents Or see can that bigger Okay. mutual that products, those of can lower Growth sell this in the that seeing And you sell can than those a increase fund. tickup? is -- number. annuities? mutual already that bit been ones specifically terms just kind little has productivity

Glenn Williams

business our sophisticated traditional a of one more the larger of kind more different. annuity business. kind The within of lot probably overall dealers ways a Yes. of upper market looks is at and business broker our of end tickets, business little like our Even the than middle it's parts

you states registration an some go companies. the And that have annuities. varies, additional so, It have people get the two certification connection There's what or three you adding different and sell insurance is have capability. but of with to ways

smaller But also market, it we more and sophisticated case, do to they in that they just have that. markets the in more like that but then, just see do larger people across. see markets it in tickets. run generally with They're And people ticket case we larger in are

that drive flow go so really that people We've why get there's And a in that. things seen pretty constant two in and into business.

anything unusual. seen haven't We

the continue at does about So to it increase normal rate.

that. driven in majority gain. is productivity sales the to a It's fund mutual and numbers rate productivity you're our than So of are being sales the more is bigger seeing similar by what the increase of force because the growth force

the most driving means that obviously it's gain of increase. productivity that So

Alison Rand

I checked third my to Hey, Jack, back I quarter XXXX. actually referring a that was in product notes. the just we The of launched give

that. to clarify just So,

Jeff Schmitt

Thank you. great. Okay,

Operator

from have Hughes we next, SunTrust. Mark of a follow-up And

Glenn Williams

again, Hello, Mark.

Mark Hughes

mentioned growth Hello. writers you the Allison then and longer of count term would in notional also think forecast and in of you growth be Was -- I X% policy your a X% would influence writers the top on that. be to premiums. And that? annual growth kind from had new

Alison Rand

is That correct.

in driving the Glenn, I other was So, line obviously, and with the the to addition. described be had was call. have other of block we growing X% the way used scenario And component the on expected -- component. that would the comments, in a riders And the that it we earlier hypothetical

with had new do So, sales. really to X%

Mark Hughes

to had new in And those sustained very business? any riders. there reason Is that growth you've to slow down think what's of terms going on in good should relative

Alison Rand

over No. the several We as with I perspective, last to the we from consistent did the case seen and will assume forecasting years. be what don't be assume guess do well. believe we've that our that we growth

look in somewhere estimated to anywhere X% and So, if between you year-over-year from it's to it's financial issued year-over-year back XX% annualized XX% premium. of supplement our XX% ranged

that reference for Now an an it you that think good revenue number. just our is a are as gives what annualized number. actually But a point not estimate is to GAAP block. I assumptions to remind It of you

Mark Hughes

Thank you.

Glenn Williams

Thank you.

Operator

call. you again As there also attending you conference We may today's Take further day. for we session presentation. disconnect. questions, care, and time, you no everyone. thank all wonderful are Q&A today's will Thank At today's conclude this a have and

Primerica (PRI) 12 Feb 202019 Q4 Earnings call transcript