Primerica reported improved first-quarter operating profits on a rise in insurance and investment product revenue.
Duluth-based Primerica, which sells insurance and investment products to middle-income Americans, reported 27 percent growth in net operating income to $48.6 million, compared with first quarter 2010.
Total operating revenue was $267.3 million, up 19 percent from the quarter a year ago.
Primerica spun out of Citigroup in April 2010, and first-quarter earnings year-over-year are not directly comparable. Reports on continuing operations are a better performance guide.
“We believe Primerica’s continued operating income growth demonstrates the ability of our multifaceted business to effectively adjust to economic cycles,” D. Richard Williams, Primerica chairman and co-chief executive, said in an earnings release.
Term-life revenue was up 25 percent to $128.2 million. Revenue from savings and investment products rose 16 percent to $100.8 million.
The company now has $658.5 billion in term-life policies in force. Sales of investment and savings products grew 14 percent in the quarter from a year ago.
The company’s net income in the first quarter was $52.5 million, down 63 percent from a year ago, prior to the spinoff. Primerica had earnings per share of 68 cents, and 63 cents on an operating basis. The company wasn’t publicly traded in first quarter 2010.
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