Unbundled PRI Q3

Once again while I’m waiting for my last two dividends to post to close out the quarter, an  update to the Primerica challenge is due.  Just to recap, a Primerica rep provided some advice to me a while back the gist being even if I bought no products, I might want to buy the stock since it has performed ‘pretty well’.  So I did – but got to thinking – do the pieces that are sold via the reps perform better as a standalone investment rather than packaged under the Primerica banner?  The results thus far have been mixed and as we head into the final quarter of this year long challenge, Primerica has taken the lead but the game remains a tossup.

Primerica had some tailwinds this quarter – notably the Department of Labor rules being released in April coupled with their business being largely North American centric.  Conversely, the basket faced headwinds on two fronts.   Being overweight in multinational financials resulted in a double whammy.  First from the Fed keeping rates unchanged and second from Brexit.

SCORE BOARD (cumulative, bucket vs PRI)

Q1 Q2 Q3 Q4
– 2.52% 8.91% -39.5% %

Headlines impacting Primerica going forward are their Women’s conference (held June 10-12, 2016) and the biannual meeting to be held in Indianapolis June 2017.  Both are capable of generating a ‘buzz factor’. I suspect next quarter

The unbundled group was handed a significant tailwind in the form of CCAR results.  The table  below illustrates this opportunity:


Bank of NY Mellon 11.76% 2.14B
Goldman Sachs Group n/a n/a
Bank of America Corp. 50.0% 5B
State Street Bank 11.76% 1.4B
Citigroup Inc 220.0% 8.6B

Goldman has yet to announce their plans and the others require board approval.  But I would say it makes for an interesting endgame.

One thought on “Unbundled PRI Q3

Comments are closed.