Security National Financial Corporation (SNFC), the Utah based company with segments in the preneed insurance, funeral home assignment, mortuary, and cemetery business, released their 4th Quarter of 2020 and Year End 2020 results last week. The first line from that press release which you can read here, states, “For the twelve months ended December 31, 2020, SNFC’s after-tax earnings from operations increased 410% from $10,894,000 in 2019 to $55,597,000 in 2020, on a 70% increase in revenues to $481,463,000.”
To be sure, SNFC’s business is based on a three-leg stool with the legs representing, what we would term, businesses in the mortgage, funeral financial including preneed, and funeral/cemetery services. Each of those legs had an increase in revenues with a disproportionate share in the mortgage side. . . which showed a year over year revenue increase of 119.7%.
Here’s what SNFC’s CEO Scott Quist said of the mortgage business, “Our mortgage segment was able to take great advantage of the financial market circumstances presented this year. The pandemic-created interest rate declines spurred refinance volumes, made purchase transactions more affordable, and provided generally higher margins.”
It should be noted, however, that the Life Insurance leg of the stool increased revenue 20.1% on the year and the Mortuary/Cemetery division raised revenue 27.5%. That translates into revenue of $151.0 million in the Life Insurance segment and $21.0 million in the Mortuary/Cemetery segment.
CEO Quist had this to say about those divisions:
About Life Insurance: “Our Insurance Segment also provided spectacular results improving profitability 81% in, again, a very challenging year. While year-over-year death claim comparisons are difficult for a number of reasons, to include the acquisition of Kilpatrick Life and the vagaries inherent in determining COVID related claims, what I can say is that death claims increased 40% YOY. While it does seem that the pace of COVID related claims has been abating, I think it fair to say that COVID will continue to have a financial impact for some time to come. ”
“Our Kilpatrick Life Insurance Company acquisition has been integrated with much of that work being accomplished during difficult COVID related circumstances.” Here is a past Funeral Director Daily article on the Kilpatrick acquisition.
About Funeral/Cemetery: “Our Memorial segment also provided spectacular results with operational income increasing 83% YOY. Again, this was accomplished during difficult COVID related circumstances where, for a period of time, traditional funeral services were essentially banned and even when bans were lifted there were significant size and other restrictions placed upon the funeral services. Substantially contributing to that profit improvement was increased preneed cemetery sales, but basic mortuary and cemetery operations were also significant contributors. “
Here is the Security National Financial Corporation website.
Disclaimer: The author of this article holds a stock position in Security National Financial Corporation.
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