Security National Financial Corporation Reports Financial Results For The Quarter Ended September 30, 2021
For the three months ended
“A common measure of a financial firm’s profitability performance is its “return on assets”. Generally speaking, a 1.0% annualized return on total assets is considered a good, if not best in class, performance. Year to date, our ROA is 2.11%, or twice that benchmark - and that is with the 4th quarter still to go. Our return on equity for the first 9 months is 11.5% - again, a very solid performance by almost any measure. Given the extraordinary circumstances of 2021, a comparison to 2019 pre-pandemic results is instructive. At
“The mortgage market in 2020, following the pandemic-related government mandated forbearances on foreclosures and mortgage and rental payments, was very confused. We were able to take advantage of that confusion because of our strong capital position, and profited financially. In 2021 the markets have been much more orderly, and while we have performed at very high levels in my opinion, the extraordinary opportunities presented by last year’s confused markets simply have not been available. In a nutshell, our financial performance in 2021 has been very solid and, in many respects, the best in our Company’s history, but the extraordinary gains fueled by the 2020 markets are not being replicated.
“Our insurance segment’s year-to-date operational income reflects similar solid results, increasing 105% YOY. Death claims are continuing at elevated levels, probably 20% above 2019 baselines. Obviously, COVID-19 claims are having, and will continue to have, an impact. Nevertheless, profitability increased 105% on essentially flat revenues. Looking deeper into the revenues, investment income improved significantly, leading to the improved profitability, but premium collections, expenses, and new sales have been essentially flat. While we have been able to grow our investment income, obtaining necessary investment yields within acceptable risk tolerances is becoming more difficult in this low interest rate environment. We do not anticipate those economic circumstances changing over the near term.
“Our Memorial segment also delivered very solid Quarter 3 and year-to-date results with revenues increasing 22% for the quarter and operational income increasing 125% year-to-date. Contributing substantially to those results is an increase in preneed cemetery sales, with improvement in mortuary and cemetery operations also being significant contributors. This excellent performance is not an isolated occurrence. It is instructive to note that our Memorial segment has achieved an average 24% compound annual growth rate in operational income over the last six years. In my view, such excellent financial results are the natural consequence of continuously providing superb customer care and consumer experiences during very difficult times.”
SNFC has three business segments. The following table shows the revenues and earnings before taxes for the three months ended
|Revenues||Earnings before Taxes|
For the nine months ended
|Revenues||Earnings before Taxes|
Net earnings per common share was
The Company has two classes of common stock outstanding, Class A and Class C. There were 20,216,456 Class A equivalent shares outstanding as of
If there are any questions, please contact Mr.
P.O. Box 57250
Phone (801) 264-1060
Fax (801) 265-9882
Source: Security National Financial Corporation