Primerica Corp. sets a record with '92 earnings

January 19, 1993

Despite a mild drop in revenues, Primerica Corp. sai yesterday that strong growth in consumer finance and the sale of assets boosted its earnings 22 percent to a record $593 million last year.

The New York-based company, which employs 400 at its Consumer Credit division in Baltimore, saw revenues drop primarily because of the weak performance of its Wall Street operations, but finished the year in the "strongest capital position ever," said Sanford I. Weill, Primerica's chairman and chief executive.

`We couldn't be more pleased with Primerica's performance for this quarter and the year, despite the sluggish economy, as well as with all we've accomplished in 1992," Mr. Weill said in a statement.

The strength of last year's results fueled speculation on Wall Street that Mr. Weill was in a position to plan a new bout of takeovers or buyouts.

"I don't think that they're actively seeking a new company, but I am sure that if something interesting comes along, they are poised," said David S. Penn, an analyst at Legg Mason Wood Walker Inc. in Baltimore.

Primerica recently bought a 27 percent stake in Travelers Corp., a leading insurance company, and also owns Smith Barney, Harris Upham & Co. Inc., a top Wall Street brokerage firm that reported record earnings for 1992 yesterday but on lower revenue.

Disappointment with the drop in earnings pushed the stock down 25 cents yesterday to $51.375.

( Three months ended 12/31

.. .. .. ... .. Revenue.. .. .. .. .. .. Net* .. .. .. .. Share*

'92 .. .. .. .. 1,269,000,000.. .. .. .. 221,300,000 .. .. 1.93

'91 .. .. .. .. 1,354,400,000 .. .. ... 132,100,000 .. .. 1.18

% change .. .. .. .. .. -6.3 .. .. .. .. ... +67.5 .. .. +63.6

* 1992's fourth quarter includes a $68 million gain, or 61 cents a share, related to the sale of stock in subsidiaries and affiliates. Operating net for the fourth quarter was $153.3 million, or $1.32 a share.

Twelve months ended 12/31

.. .. .. .. .. .. Revenue .. .. .. .. .. Net** .. .. .. Share**

'92.. .. .. .. $5,095,800,000 .. .. .. 728,100,000 ... 6.43

'91.. .. .. .. 5,179,800,000 .. .. .. 478,800,000 .. 4.27

% change .. .. .. .. .. .. 1.7.. .. .. .. .. 52.1 ... +50.6

** 1992 earnings include gain of $134.9 million, or$1.21 a share, from sale of securities of subsidiaries and affiliates.

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.