Primerica, Inc. (NYSE:PRI) Q3 2019 Earnings Conference Call Transcript

Nov 07, 2019 • 10:00 am ET

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Primerica, Inc. (NYSE:PRI) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

At this time, I would like to welcome everyone to Primerica's Inc. Q3 Earnings Results Conference Call and Webcast. [Operator Instructions] Thank you.

I'd now like to turn the call over to Nicole Russell, Head of Investor Relations. You may begin your conference.

Executive
Nicole Russell

Thank you April and good morning everyone. Welcome to Primerica's Third Quarter Earnings Conference Call. A copy of our earnings press release along with materials that are relevant to today's call are posted on our Investor Relations section of our website at investors.primerica.com. Joining our call today are our Chief Executive Officer Glenn Williams; and our Chief Financial Officer Alison Rand. Glenn and Alison will deliver prepared remarks and then we'll open the call up for questions. During our call some of our comments may contain forward-looking statements in accordance with the safe harbor provisions of the Securities Litigation Reform Act.

The company does not assume any duty to update or revise these statements to reflect new information. We reference you to our most recent Form 10-K filing as modified by subsequent Form 10-Q filing for a list of risks and uncertainties that could cause actual results to differ -- to materially differ from those expressed or implied. We will also reference certain non-GAAP measures which we believe provide additional insight into the company's operations. Reconciliations of non-GAAP measures to their respective GAAP numbers are included at the end of our earnings press release and are also available on our Investor Relations website.

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

Executive
Glenn J. Williams

Thank you Nicole. And thanks everyone for joining us today. I'll focus my prepared remarks on the highlights from our most recent quarter and share our game plan as we close 2019 and prepare to enter the next decade then Alison will review our financial results. Starting with Slide 3 in our presentation deck you can see adjusted operating revenues increased 7% and adjusted net operating income increased 13%. Adjusted operating earnings per diluted share was up 17% and operating ROAE was 24.9% increasing 120 basis points compared to last year's third quarter. These results attest to the strength of our business model and reflect another quarter of solid financial performance. We continue to execute steadily against our capital deployment plan. During the quarter we repurchased $70 million of Primerica common stock for a year-to-date total of $181 million.

We are on pace to repurchase $225 million by year-end and believe we will have the ability to deploy capital at or above this level in 2020. Turning now to Slide 4 for a review of distribution results. We ended the quarter with a total of 130871 life licensing representatives which is up slightly since the beginning of the quarter reflecting the growth in newly licensed reps. Compared to last year's third quarter recruiting declined 5% while the number of new life licensed reps increased 8% reflecting successful recruiting efforts in June and July and the solid pull-through of those recruits to new life licensed