Security National Financial (SNFCA) Q3 2024 earnings summary

Executive summary

• Achieved strong revenue and net earnings growth for Q3 and nine months ended September 30, 2024, driven by higher mortgage fee income, insurance premiums, and investment gains.

• All three business segments—life insurance, cemetery/mortuary, and mortgage—contributed to improved profitability year-over-year.

• Maintained robust liquidity and capital position, with increased cash flows from operations and compliance with all regulatory and debt covenants.

Financial highlights

• Q3 2024 revenues rose 10% to $88.3M; net earnings increased to $11.8M from $4.0M year-over-year.

• Nine-month revenues grew 4.8% to $255.3M; net earnings more than doubled to $26.6M from $11.6M year-over-year.

• Mortgage fee income up 21% in Q3 and 6% for nine months; insurance premiums up 4% in both periods.

• Net investment income declined 7.5% in Q3 and 2.5% for nine months, mainly due to lower mortgage loan and real estate income.

• Gains on investments and other assets swung to $1.3M in Q3 and $2.6M YTD, from losses in 2023.

Outlook and guidance

• Management expects continued focus on niche insurance products, expansion in cemetery/mortuary, and leveraging housing market opportunities for mortgage originations.

• Ongoing analysis and implementation of new accounting standards, with no material impact expected in the near term.