Security National Financial Corporation (SNFC), the Utah based multi-pronged company with divisions in funeral homes and cemeteries and also with its insurance division involved in preneed insurance, had its full-year after-tax earnings drop from $55.5 million in 2020 to $39,5 million in 2021.  It’s Earnings before taxes also dropped about $20 million for the three segment company.

However, all of that reduced profitability occurred in the company’s Mortgage Division while earnings before taxes from its Life Insurance Division and Memorial Division jumped 25.6% and 80.2% respectively.  SNFC’s Life Insurance segment, which includes preneed insurance, had their revenues increase 7.9% in 2021 to $163.0 million from 2020’s total revenue of $151.0 million.  Earnings before taxes for the division jumped to $14.9 million in 2021 as compared to $11.9 million in 2020.

The company’s Memorial segment, which consists of cemeteries and mortuaries, had their revenue jump by over 29% in 2021 to $27.6 million as compared to revenue of $21.0 million in 2020.  Earnings before taxes jumped an incredible 80.2% from 2020’s $4.3 million to 2021’s $7.9 million.  Earlier in the 1st Quarter of 2022, SNFC announced two funeral home company acquisitions. . . one in Utah and one in New Mexico.  Those two additions should add to revenues and earnings going forward.

Here’s what SNFC’s CEO Scott Quist said of the 2021 results, “There have been major economic and societal currents that have had very mixed effects over the last two years. The pandemic caused horrific increases in mortality, which did economically benefit our death care segment, but correspondingly stressed our insurance segment. Additionally, the decline in interest rates stressed our insurance segment, but correspondingly benefitted our mortgage segment. As those currents reverse themselves, as they seem to be doing, I anticipate that the corresponding economic stresses and benefits will also reverse to some degree. The speed, and sometimes even the direction of those currents, is difficult to anticipate.

During the last two years our death care segment has overcome staffing shortages due to pandemic related illnesses and restrictions, coupled with unprecedented demand. Their performance in providing care during this most difficult time has been exceptional. . . . .  our insurance segment, while also converting to working from home, processed huge increases in death claims while remarkably maintaining our pre-pandemic levels of service for our 700,000 insurance policies. I believe we should all be justifiably proud of our Company’s performance.”

You can see the full press release of SNFC’s 2021 performance here.

Funeral Director Daily note:  SNFC is the last of our seven Death Care Index (DCI) companies to report 2021 annual financial results.  Look for a short article on our business conclusions to the 2021 financial results shortly.  Death Care Index companies include Hillenbrand, Matthews International, StoneMor, Park Lawn Corporation, Carriage Services, Service Corporation International, and Security National Financial Corporation.

Disclaimer — The author of today’s article holds a stock position in Security National Financial Corporation

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