Finance

Security National keeps growing revenues

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Security National Financial Corporation (SNFC) continues to reel in the revenue in each of their three divisions according to this press release from mid-May containing their 1st Quarter 2020 results.  The Utah based company conducts business in the death care field both in the financial services realm and the funeral and cemetery services realm.

In the financial services sector SNFC is involved with preneed funeral insurance and insurance assignment business with participating funeral homes.  They also conduct business with their own group of funeral homes and cemeteries in the Utah and California markets.  In addition, outside of the death care business, the company has a mortgage service division.

For 1Q 2021, SNFC recorded a revenue increase to over $122 million for the quarter as compared to $79.6 million for their overall businesses in 1Q 2020. . . . an increase in revenues of 54% year over year.  Profits increased to a 1Q number of $16.3 million for the company.

Looking at the Cemetery/Mortuary segment on its own, revenues jumped 74% to $6.9 million from a 1Q 2020 number of $4.0 million.  Earnings before taxes in the Cemetery/Mortuary segment grew to $2.7 million in 1Q 2021 as compared to $105,000 in 1Q 2020.

The company report states that the Life Insurance segment of the business had death claims increase 37% year over year with “the major part of that increase being Covid related”.

Here’s part of what CEO and President Scott Quist said of the report, “The low interest rate environment has provided our Mortgage Segment a favorable tailwind but note that every segment’s earnings are up triple digits. The Covid induced climate brings blessings and curses.  In no way do we minimize the personal hardships and losses the Pandemic has inflicted on so many individuals and families – our insurance and memorial businesses essentially have front row seats to observe some of those effects. ” 

Quist continued by saying this, “From a financial point of view, low interest rates have helped our Mortgage Segment, but low rates and higher death claims have hurt our Life Segment. . . .  While our Memorial segment has experienced higher death counts, a major factor in its increased profitability has been improved preneed sales.” 

Disclaimer:  The author of this article holds a stock position in Security National Financial Corporation

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