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Introduction to Primerica
1
Forward-Looking Statements and Non-GAAP Financial MeasuresForward-Looking Statements
This presentation may contain forward-looking statements and information. Additional information on factors that could cause results to differ materially from those projected in this presentation is available in our Form 10-K for the year ended December 31, 2019, as may be updated by our quarterly reports on Form 10-Q, available in the “Investor Relations” section of our website http://investors.primerica.com.
Non-GAAP Financial Measures
This presentation also contains non-GAAP financial measures. A reconciliation of those measures to GAAP financial measures is included in our Financial Supplement, which is posted in the Investor Relations section of our website http://investors.primerica.com.
2
Compelling Investment Proposition
3
Growth Opportunity
Complementary Business Segments
Strong Financial Performance
• Industry-leading returns with demonstrated growth• Significant level of free cash flow• Balanced and disciplined approach to capital deployment
4
Culture of Excellence
“Our difference is our people”~2,200 dedicated employees
~130,500 life insurance licensed representatives as of Dec. 31, 2019
Highly experienced management team with long tenure & deep understanding of Primerica’s business and operations
Glenn WilliamsCEO since ‘15
President ’05 - ‘15Joined ‘81
Peter SchneiderPresident since ‘15
Joined ’00
“Our mission is to help middle-income families become properlyprotected, debt free and financially secure”
Greg PittsCOO since ‘09
Joined ‘85
Alison RandCFO since ‘09
Joined ‘95
5
Large Sales Force Allows Effective Penetration of the Vast, Frequently Underserved Middle-Income Market
130,522 life insurance licensed representatives
$808 billion of term life face amount in force
25,747 mutual fund licensed
representatives
$71 billion in client asset values
Approximately 5,500 Primerica Regional Vice President businesses in the U.S., Canada and Puerto Rico
287,809 term life issued policies
$7.5 billion in investment and
savings products sales
As of December 31, 2019, except for term life issued policies and investment products sales which are for the full year 2019
6
Average household income $67,000
Average face amount of term life policy $248,500
Average issue age of life insurance clients 37 years
Average initial retail mutual fund investment
$10,600
Assets in qualified retirement plans 74%
Primerica’s Middle-Income Clients
(1)
1. 2019 Primerica Financial Need Analysis Clients2. Full year 2019
(2)
(2)
(2)
(2)
Significant, Unmet Need
7
31%
46%
23%
~$12trillion
Protection Gap
Middle-Income households in the U.S. need ~$12 trillion of life insurance to be properly protected
Life Insurance Gap per Middle-Income Household, Estimate 2018
Conning Life-Annuity Consumer Markets Annual, November 2018■< $30,000 ■$30,000 to $100,000 ■ > $100,000
Source: U.S. Census Bureau, Census Population Survey 2019 Annual Social and Economic Supplement. Based on 128.6 mm households.
q Middle-Income households in the U.S. need ~$12 trillion of life insurance to be properly protected
q Primerica’s unique distribution model is designed to effectively serve middle-income families
Income Levels
8
_ ___ _
1. Diversity in the Insurance Agents’ Workforce-BestLifeRates.org2. McKinsey Affluent Consumer Insights Survey 2014
8
q 21% of Primerica’s Regional Vice Presidents (RVPs) are African American and 15% of RVPs are Hispanic
> Compared to industry statistics of 9% African-American and 12% Hispanic.
q Primerica representatives serve clients in their own communities
q 32% of Primerica’s RVPs are women
q Percentage of households with women as primary financial decision maker will continue to grow
q 44% of Primerica’s life insurance licensed representatives are millennials
q Primerica’s digitized marketing and entrepreneurial culture appeals to millennials
Growth Opportunity Alignedwith Demographic Trends
(1)
(2)
Business Model is Difficult to Replicate
Extensive controls, supervision and surveillance functions
Variable cost structure enables high volume of small transactions
Significant experience underwriting Term Life insurance for middle-income market
Exclusive independent contractor sales force
Extensive communications, training and pre-licensing infrastructure
Cutting-edge sales tools and customized sales support
9
10
Business Segments
q Term Life Insurance
– Term life policies issued by Primerica Life Insurance Company, National Benefit Life Insurance Company and Primerica Life Insurance Company of Canada
q Investment & Savings Products– Retail mutual funds (U.S. / Canada), managed accounts (U.S.),
annuities (U.S.), segregated funds (Canada)
q Corporate & Other Distributed Products
– Corporate income & expenses not allocated to other segments
– Net Investment income
– New York non-term life insurance business from several discontinued lines
– Other Distributed Products
• Prepaid Legal Services
• Auto & Homeowners Insurance
• Mortgages underwritten by Quicken Loans
Primerica’s Adjusted Operating Results($ in millions) 2019 2018
Adjusted Operating Revenues $2,042 $ 1,904
Total Adjusted Operating Income before Income Taxes $467 $420
Adjusted Net Operating Income $358 $324
Adjusted Shareholders’ Equity $1,588 $1,469
Adjusted Operating ROAE 23.5% 22.8%
Adjusted Operating Revenue (1)
2019 Adjusted Operating Revenues: $2.04 billion
(1) Operating adjustments remove the impact of realized investment gains and losses
% Change
7%
11%
11%
8%
11
Earnings DriversBusiness Segment Drivers
Term Life q Term Life issued policies, additions to existing policies and retention of in-force business
q Death Claims
q Acquisition costs and operating expenses
Investment & Savings Products
q Product sales, client asset values, and number of client accounts
q Operating expenses
Corporate & OtherDistributed Products
q Corporate and other operating expenses
q Net Investment Income
q Other product sales
q Interest expense
Business mix generates significant free cash flows and opportunity for strong capital deployment
12
Not a Traditional Life Insurance Company
Primerica TraditionalLife Company
Operating Revenue1
Fee-Based & Other Revenue 37%Significant Investment & Savings Products business with substantial recurring revenue 15%
Insurance Premiums 58% Stable margin through extensive reinsurance 61%
Investment Income 5% Minimal earnings dependency 24%
Investment Leverage2 2.5x Less susceptible to market volatility 9.1x
Net Annualized Operating Return onAverage Adjusted Equity3
23.5% ROAE above average 12.8%
Note: Traditional Life Company references the mean financial metrics of Globe Life, Lincoln Financial, MetLife , Prudential and Unum’s metrics are for Financial Services segment only. Peer Adjusted Equity defined as Common Equity less unrealized gains/(losses).
1 For full year 2019
2 Calculated as (Cash + Invested Assets) / Adjusted Equity without unrealized gains
3 Full year 2019 adjusted operating income divided by the quarterly average equity excluding unrealized gains/losses
Superior Financial Results
13
$4.53$5.52
$7.33 $8.43
2016 2017 2018 2019
Adjusted Operating Earnings per Diluted Share
(1) Net Income Return on Stockholders’ Equity for the comparable periods was 18.3% (2016), 27.4% (2017), 22.7% (2018 ) and 23.4% (2019)
(2) Diluted Earnings Per Share for the comparable periods was $4.59 (2016), $7.61 (2017), $7.33 (2018) and $8.62 (2019)
(2)
(1)
$33 $36 $44 $58
Dividends Share Repurchase
$150
14
5-year1-year
Total Stockholder Return has Consistently Outperformed the S&P 500 Index
(1) Total stockholder return measures the stock’s performance including dividends
(1)
▬ Primerica, Inc.▬ S&P 500 Index
15
Distribution
16
Primerica Life Insurance
Licensed Representatives
Brokers / Financial AdvisorsInsurance Representatives
Sales Force (in 000s)
PrimericaMutual Fund
Licensed Reps
§ Independent contractors exclusive to Primerica
§ ~90% of sales force is estimated to be part-time
§ Pay their own business expenses
§ Sales force leaders have significant longevity
− 26,000 → +10 years− 10,000 → +20 years
Distribution is a Competitive Advantage
AflacState Farm Allstate Globe Life Morgan Stanley Bank of America Edward Jones
Ameriprise Raymond James
(1) For the year ended December 31, 2019Source: company filings, annual reports and websites
(1)
Primerica’s Licensed Sales Force
17
Licensing Progression Rep License
AverageTenure
Total Life Insurance ~130,500 6 Years
Become Investment Advisor rep after success in ISP business
First obtain a Life Insurance License 4
Years
14 Years
16 Years
Obtain mutual fund license after success selling life insurance & building a business
(1)
(1) Largely part-time representatives
Sales Force Support
18
Marketing
q Proprietary digital sales tools allow representatives to work anywhere and anytime
q Efficient and secure electronic applications with automatic prompts to reduce errors
Communication & Training
q Weekly broadcasts from in-house TV Networkq Online Digital Library of training materialsq Face-to-face training in RVP offices
Licensing
q Mobile pre-licensing certification and test preparation
q 7,900 pre-licensing classes held in 2019
Business Model Mitigates Risks
19
Strong Sales Force Compliance Record
Business Model
q Warm market lead generation - representatives know their clients
q Basic and easy-to-understand products
q Part-time nature removes pressure to over-sell
q Sales force of independent contractors has an exclusive relationship with Primerica
Extensive Controls
q Supervision system structure based on SEC, FINRA & State DOI requirements
q Field Supervision
§ All FINRA Branch Managers are directly supervised by a staff of 43 Home Office Regional Securities Principals.
§ Branch office examinations are conducted by 16 Field Auditors in accordance with FINRA rules.
§ Approximately 100 compliance-related employees perform various surveillance and monitoring activities.
§ Approximately 4,500 principal licensed or Canadian equivalent securities licensed representatives
q Generate surveillance reports, conduct client and representatives surveys and audit all RVP offices
Sales Process
20
Client-centric Educational Process including Financial Needs Analysis
Face-to-Face Meetings“Across the Kitchen Table”
Warm Market Approach
Multiple Product Offerings
21
Products
Auto and Home Solutions: In the United States, insurance referrals are offered through Primerica SecureTM, an insurance referral program in which representatives may refer individuals to Answer Financial Inc., which offers insurance products and services through its licensed affiliates. Primerica, its representatives and the Primerica Secure program do not represent any of the insurers in the program. In Canada, Auto & Home Insurance is offered through a referral arrangement by contractual agreement between SurexDirect.com Ltd., SurexDirect.com (Ontario) Ltd., Primerica Life Insurance Company of Canada and PFSL Investments Canada Ltd. Auto & Home Insurance is not directly offered by Primerica. In the U.S. and Canada, home automation services (including home security) are offered through a referral arrangement by contractual agreement between Primerica Client Services, Inc., Primerica Client Services Inc., PFSL Investments Canada Ltd., Vivint, Inc. and Vivint Canada, Inc. Debt Solutions: In Canada, Primerica representatives make simple referral of clients to B2B Bank for debt consolidation loans secured by residential real estate. Disability Benefits: In Canada, Primerica’s representatives promote and market insurance products administered by The Edge Benefits Inc. and underwritten by various Canadian insurers unaffiliated with Primerica. Legal and Identity Protection: In the U.S., ID Theft Defense is a product of LegalShield that provides access to identity theft protection and restoration services, through contractual agreement between Primerica Client Services, Inc. and LegalShield. In the U.S., Primerica Legal Protection Program legal protection services are offered by Prepaid Legal Services, Inc. d/b/a LegalShield ("LegalShield") or applicable subsidiary, through contractual agreement between Primerica Client Services, Inc. and LegalShield. LegalShield provides access to legal services offered by a network of provider law firms to LegalShield members through membership-based participation. In Canada, Pre-Paid Legal Services and ID Theft Defense are each offered by contractual agreement between Primerica Client Services, Inc., PFSL Investments Canada Ltd. and PPL Legal Care of Canada Corporation. Life Insurance & Segregated Funds: Primerica representatives market term life insurance underwritten by National Benefit Life Insurance Company (Home Office: Long Island City, NY) in New York and Primerica Life Insurance Company (Executive Offices: Duluth, GA) in all other U.S. jurisdictions; in Canada, Primerica Life Insurance Company of Canada (Head Office: Mississauga, Ontario) offers term life insurance and segregated funds. Managed Investments: PFS Investments Inc. is an SEC Registered Investment Adviser doing business as Primerica Advisors. For additional information about managed investments, please ask your Primerica representative for a copy of the Form ADV Part 2A wrap fee program brochure for the Lifetime Investment Platform. Mutual Fund, Annuities and 401(k) Plans: In the U.S., securities are offered by PFS Investments Inc., 1 Primerica Parkway, Duluth, Georgia 30099-0001. Fixed index annuities are offered by Primerica Financial Services, LLC, an affiliate of PFS Investments Inc. Primerica Financial Services, LLC and PFS Investments Inc. are both subsidiaries of Primerica, Inc. In Canada, mutual funds are offered by PFSL Investments Canada Ltd., mutual fund dealer, Head Office: Mississauga, Ontario.
Primerica is the trademark of Primerica, Inc. All other trademarks and service marks are the property of their respective owners. All rights reserved.
22
Business Partners and Products
Simple Products for Long-Term Financial Needs
23
Investment & Savings Products
Investment & Savings Productsthrough third-party providers
Mutual FundsManaged Accounts
Annuities401(k) Plans
q $808 billion face amount in-force at year end
q $94 billion face amount issued
q 287,809 policies issued
q Segment operating income before taxes of $320 million
Scale of Business in 2019
q Younger families need more income protection: they have young children, higher debt and lower savings
q As they age they need less insurance because their liabilities lessen and their investments grow
q Primerica teaches basic investment principles like diversification and systematic investing through dollar cost averaging over time
Scale of Business in 2019
q $71 billion client asset values at year end
q $7.5 billion product sales
q Segment operating income before taxes of $192 million
Term Life Insurance Productsunderwritten by Primerica, Inc. companies
TermNow(10, 15, 20, 25, 30, 35 years)
CustomAdvantage(10, 15, 20, 25, 30, 35 years)
Term Life
Predictable Drivers of Term Life Issued Policies
24
New Life Licenses 45k Issued Policies 282k
q Productivity has been an historically stable metric in the range of 0.18 to 0.22 policies per life licensed representative per month
Recruits 282k
q Provides access to new clients as well as future sales reps
~16% Life insurance licensing rate
Size of Sales Force 131k
q ~34% annual non-renewal
~0.18x - 0.22x Life insurance policies per month
per life insurance licensed representative
Data for the year ended or on December 31, 2019
Primerica’s Use of Reinsurance
25
IPO Coinsurance
q At the IPO, coinsured 80% of in-force business. No use of coinsurance since thenq Coinsurance is similar to sharing a portion of the businessq Coinsurers receive their portion of all premiums and pay their portion of all claimsq Primerica receives allowances from the coinsurers to cover their portion of the company’s
expenses and commissionsq Decreases with the run-off of this closed blockq When policies reach the end of their initial level premium period in 2017 or thereafter, we
no longer cede the policy under the IPO coinsurance
Yearly Renewal Term (YRT) Reinsurance
Investment & Savings Products (ISP) Revenue Dynamics
26
q Diversified Mix of Revenues
‒ Sales-based revenues – fees and commissions received at point of sale
‒ Asset-based revenues – fees and commissions on client asset values
‒ Account-based revenues – record-keeping and custodial fees
q Low Capital Requirements with Largely Unrestricted Cash Flows
ISP Revenue Mix
41%
46%
13%
ISP Sales & Asset Values ($ in billions)
Investing Trends provide Opportunity
27
43%of middle-income Americans will not be
ready for retirement based on their investment and savings habits
Source: 2009 McKinsey Quarterly, Helping US Consumers Rethink Retirement
2009 McKinsey Retirement Readiness Index Report
More ready
Average
Less ready
Age
Retirement readiness by age and income level% of consumers “on track”
Income ($K)
<$100 $100-$200 $200+ Total
50-59 59 71 79 67
40-49 53 67 72 61
30-39 51 66 72 62
Total 57 68 76 65
q Primerica’s ~26,000 mutual fund licensed representatives are uniquely positioned to serve middle-income families
q Clients can systematically invest for as little as $25/month
q Lifetime Investment Platform managed accounts and annuity offerings cater to the investment needs of more affluent clients
Focused on Helping Middle Income Clients with Investments
28
Strategy
Strategy to Drive Stockholder Value
29
Growth in Stockholder Value
Strategic Pillars for Future Growth + Significant Free
Cash Flow
Strong Capabilities, Tools and Leadership
Strategic Pillars for Future Growth
30
Maximize
Sales Force
Growth, Leadership
and Productivity
Broaden and
Strengthen
Protection Product
Portfolio
Enhance
Investment
& Savings Products
to Expand Opportunity
Develop
Digital
Capabilities that
Deepen Client
Relationships
Initiatives to Drive Future Growth
31
CUSTOMIZED Communication, Training
& Licensing Platforms
BROADER Protection Product
Offerings to Increase Share of Client Wallet
SIMPLIFIED Investment & Savings
Products Sales Process and Expanded Product
Portfolio
MOBILE Client-centric Marketing Presentations and Videos
EFFICIENT Electronic Application & Customer Service
Processing
DIGITAL Client Relationship
Management Capabilities
Opportunities to Deepen Client Relationships
32
Retirement Savings Health Insurance Auto & Home Insurance Mortgage Lending
q Recently expanded ISP product offering with the launch of the Lifetime Advisor Platform to capitalize on the $5 trillion(1) managed account market opportunity
(1) Source: Cerulli Q1 Managed Account Report
q ~22,000 of Primerica’s life insurance licensed representatives are also health insurance licensed
q Assessing individual and senior health insurance opportunities
q Currently have an auto & homeowners insurance referral program that generated ~ 40k applications in 2019
q We offer a mortgage loan program in partnership with Quicken Loans Inc.
q Licensed in 5 states (1), plan to expand program to additional states as we continue to scale operations
(1) As of March 1, 2020
Middle-income households spend approximately:
q 15% on retirement savings
q 15% on health insurance
q 8% on auto and home insurance
q 40% on debtBureau of Labor Statistics, McKinsey
Opportunity: Millennials represent Next Wave of Growth
33
4Millennialsoutnumber Baby Boomers
Census.gov, November 2015
430% of affluent Millennials want to start a businessForbes.com, November 2015
44%of Primerica’s
representatives are Millennials
As of December 31, 2019
4Millennials will inherit over $30 billion in the coming years
Forbes.com, November 2015
83M 75M
Targeted Marketing Programs to drive Growth
Opportunity: Growth in Female Decision-Makers
34
�Women constitute 55% of household decision makers among the 30-39 age group, but make up only ~1/3 of investment firms’ client bases today
� An increasing share of total households will have women as the primary final decision-makers
�Women exhibit attitudinal differences in how they demand consumer financial advice
� 50% more likely than men to seek out an advisor that they can trust and craft a personalized portfolio
� 50% more likely to be uncomfortable conducting investment transactions online by themselves
Percentage of Household Decision-Makers that are women by age (1)
Proportion of Life Insurance Representatives who are Female
(1) McKinsey: Affluent Consumer Insights Survey 2014
Targeted Marketing Programs to Drive Growth
IndustryPrimerica
Opportunity: Business Aligned with Demographic Trends
35
U.S. is evolving towards a “Minority Majority” Society
q 20% of the U.S. population in 1980 were minorities. This is expected to increase to approximately 40% in 2020
q Hispanics are expected to contribute more than half of the U.S. population growth over the next 20 years
Source: U.S. Census Bureau, 2014 Tables
Primerica representatives serve families in their communities
Primerica representatives serve families in their communities
q 21% of Primerica’s Regional Vice Presidents (RVPs) are African-American
q 15% of Primerica’s RVPs are Hispanic As of December 31, 2019
Opportunity: Proven Business Model aligns with “Gig Economy” Trends
36
Primericaq Low Cost
q Begin Part-time to supplement income
q Path to become full-time and build a business
Number of workers in “Gig Economy” expected to more than double
Source: McKinsey
Low barrier to entry attracts workers to new model as a way to complement or replace income
3.2 million
2015
7.6 million
2020
Capital Strategy
37
Conservative Approach to Capital Management
38
Capital Strengthq Primerica Life Insurance Company (PLIC) statutory risked-based capital ratio (RBC)
to cover surplus strain of new business was approximately 440% at year-end 2019
q Deployed significant amount of operating earnings since the IPO in 2010
Modest Financial Leverage
q Modest debt / total capitalization ratio of 18.5% (1) at year-end 2019
q Coverage satisfied from non-insurance cash flows
High Quality Investment Portfolio
q Less dependence on investment income than most life insurers– ~2.5x (Cash + Invested Assets) / Adjusted Equity without unrealized gains at year-end 2019
q Conservative, high quality, fixed income portfolio in a net gain position
(1) Debt-to-Capital is that of the parent company only. Capital in the debt ratio includes stockholders’ equity and the note payable
(2) Primerica Life Insurance Company’s insurer financial strength rating
Agency Senior Notes Rating Financial Strength Rating (2)
Moody’s Baa1, stable outlook A1, stable outlookStandard & Poor’s A-, stable outlook AA-, stable outlookA.M. Best Company a-, stable outlook A+, stable outlook
Primerica’s Ratings
High Quality, Conservative Investment Portfolio
39
Approximate Effective Duration 3.6 years
Approximate Book Yield 3.54%
Average Rating A
Fixed Income ~98%
Inv. Grade / Below Inv. Grade Mix 97% / 3%
Key Metrics
Composition of Primerica’s $2.7 BillionInvestment Portfolio by Asset Class at end of 2019
Composition of Primerica’s $2.3 Billion Fixed Income Investment Portfolio by Rating at the end of 2019
q High quality, well diversified portfolio
q Manufacture Term Life which has no cash value, and little asset liability matching compared to firms which sell cash value life insurance products
Below Investment Grade / NA
As of December 31, 2019
Compelling Investment Proposition
40
Growth Opportunity
Complementary Business Segments
Strong Financial Performance
• Industry-leading returns with demonstrated growth• Significant level of free cash flow• Balanced and disciplined approach to capital deployment
41
Appendix
Consolidated Income Statement
42
Comments
• 2019 adjusted net operating income increased 11% versus 2018, while operating EPS increased 15% with the additional benefit of share repurchases
• 7% increase in adjusted operating revenue driven by:
– Incremental premiums on Term Life policies
– Commission & fee revenue driven by strong growth in average client account values and ISP product sales
• 6% increase in benefits & expenses driven by:
– Higher benefits & claims and DAC amortization due to growth in Term Life business
– Commission expense consistent with ISP commission & fee revenue
– Modest 5% increase in insurance and other operating expenses primarily reflects higher technology development costs, employee-related expenses, and product growth-related expenses
• Continued strong operating ROAE
Variance($ in millions, except EPS) to Prior Year
$ %
Direct premiums 2,754$ 2,667$ 87$ 3%Ceded premiums (1,570) (1,581) 11 -1%
Net premiums 1,184 1,086 98 9%Adjusted net investment income 89 83 6 7%Commissions and fees 714 678 36 5%Other, net 56 57 (1) -3%
Adjusted operating revenues 2,042 1,904 139 7%
Benefits and claims 494 458 36 8%Amortization of DAC 255 240 15 6%Insurance commissions 25 24 1 2%Sales commission expense 357 335 22 7%Interest expense 29 29 0 0%Insurance expenses 179 168 11 6%Other operating expenses 237 230 8 3%
Benefits and expenses 1,575 1,484 92 6%
Adjusted operating income before income taxes 467 420 47 11%
Adjusted income taxes 108 96 13 13%Adjusted net operating income 358$ 324$ 34$ 11%
Diluted adjusted operating EPS 8.43$ 7.33$ 1.10$ 15%Adjusted operating ROAE 23.5% 22.8%
Operating Adjustments to Net Income:Realized investment gains / (losses) 5$ (2)$ MTM investment adjustments 5 (2) Tax impact of adjustments (2) 1 Transition impact of tax reform - 3
Net Income 366$ 324$
7%
5%
FY2019
FY2018
Consolidated Balance Sheet
43
Comments
• Increase in invested assets & cash due to positive cash from operations, partially offset by share repurchases and shareholder dividends
• Held to maturity note and offsetting surplus note related to Vidalia Re transaction increase with corresponding reserve increases
• DAC and future policy benefits growing consistent with growth in Term Life business
• Invested assets to adjusted stockholder’s equity remains low at 2.5x
– Lower reliance on investment income than peer group
– Lower sensitivity to asset risk
• Leverage remained very manageable at 18.5%
($ in millions) Dec 2019 Dec 2018$ %
Assets:Invested Assets and Cash * 2,731$ 2,423$ 308$ 13%Securities Held to Maturity 1,184 970 214 22%Due From Reinsurers 4,170 4,142 28 1%Deferred Policy Acq Costs 2,326 2,134 192 9%Other Assets 792 731 61 8%Separate Account Assets 2,486 2,196 290 13%
Total Assets 13,689$ 12,595$ 1,093$ 9%
Liabilities:Future Policy Benefits 6,447$ 6,168$ 278$ 5%Other Policy Liabilities 744 700 44 6%Income Tax Payable 209 187 22 12%Other Liabilities 564 487 77 16%Notes Payable 374 374 0 0%Surplus Note 1,184 970 214 22%Payable Under Securities Lending 29 53 (24) -45%Separate Account Liabilities 2,486 2,196 290 13%
Total Liabilities 12,036 11,134 903 8%
Stockholders' Equity:Common Stock 0 0 (0) -4%Additional Paid in Capital - - - #DIV/0!Retained Earnings 1,593 1,490 104 7%Cummulative Translation Adj (6) (21) 15 nm
Adjusted Stockholders' Equity 1,588 1,469 119 8%
Net Unrealized Gains/Losses 65 (7) 72 nmTotal Stockholders' Equity 1,652 1,462 191 13%
Total Liab & Stockholders' Equity 13,689$ 12,595$ 1,093$ 9%
Debt-to-Capital 18.5% 20.4%Invested Assets to Adj Stockholders' Equity 2.5x 2.3x
Variance
* Invested assets and cash exclude the held-to-maturity asset held as part of a redundant reserve financing transaction