Security National Financial Corporation (SNFC) is the last of our seven companies that comprise the Death Care Index (DCI) to report financial numbers for the April thru June 2022 period. . . which they did last week. You can see the SNFC press release and numbers here.
As you may know, SNFC operates three divisions — two of which are of much interest to the death care profession. Those being their Life Insurance/Preneed business and another division which they call their Cemetery/Mortuary Segment that operates funeral homes and cemeteries.
Since public company Assurant sold their preneed business many of us look to the public reports from SNFC to get a small glimpse into what is happening in the death care based life insurance industry. Scott M. Quist, President of SNFC made the following comment in the press release concerning death rates, “Referring to the ongoing effects of COVID 19, in our Life Insurance Segment we believe we are seeing a leveling off (albeit at a seemingly higher base) of death claims, which is financially positive.”
Quist was quick to point out, however, while that news is good for SNFC’s Life Insurance Segment it did have an effect on the company’s Cemetery/Mortuary Segment. He commented, “However, we are seeing a corresponding decrease in case volumes from 2020/2021 levels in our Cemetery Mortuary Segment, which is financially negative”.
Here are some of the financial results for Security National Financial Corporation for the April thru June 2nd Quarter of 2022:
- Life Insurance Segment revenues of $41.1 million as compared to 2Q 2021 numbers of $40.6 million. . .an increase of about 1.3%
- Cemetery/Mortuary Segment revenues of $ 7.2 million as compared to 2Q 2021 numbers of $6.8 million. . an increase of about 7.1%
It should be noted that both segments, even with higher revenues, had lower earnings for the quarter. . . more than likely an indication of inflationary costs not yet being absorbed in the pricing equations. Here are those results:
- Life Insurance Segment “Earnings before Taxes” of $3.9 million compared to 2Q 2021 earnings of $4.6 million. . a decrease of about 16.2%
- Cemetery/Mortuary Segment “Earnings before Taxes” of $1.4 million as compared to 2Q 2021 earnings of $2.2 million. . a decrease of about 34.5%
Finally, like some other entities in the death care field, SNFC has three divisions — the two which we just reported on and their Mortgage Segment. The Mortgage Segment is the largest revenue producer of the three who for the first-half of 2022 brought in revenue to the company, which totaled about $198 million for that time period, in the following proportion:
- Mortgage Segment – 50.5%
- Life Insurance Segment – 41.7%
- Cemetery/Mortuary Segment – 7.4%
SNFC Related Information: Security National Life Insurance announced last week in this press release that they have entered into a relationship with Live Oak Bank in an effort to make funeral home refinancing and acquisition financing more readily available to funeral home businesses nationwide. The press release states “Security National Life Insurance will participate in Live Oak’s SBA Loan Referral Program and Conventional Loan Program. This partnership will enable both companies to provide expanded financing options to business owners, such as larger loans to help with large refinance and acquisition opportunities.”
Here’s what Scott Quist, President and CEO of Security National Life Insurance said in the press release, “As a national provider of preneed funeral insurance, for years Security National has worked directly with funeral home owners seeking to strengthen their business through expansion, acquisition and debt refinancing. Security National is excited to have the opportunity to work with a company of Live Oak Bank’s caliber in bringing financing products to the funeral industry. With our Conventional Loan Program and SBA Referral Program we will be able to offer financing tailored to needs of the funeral industry,”
More news from the world of Death Care:
- Dead woman talks to mourners at her own funeral thanks to AI (Artificial Intelligence). The Daily Mail (Great Britain)
- Minnesota’s first memorial forest allows “pet parents” to spend eternity with their animals. Minneapolis Star Tribune (MN)
- UK funeral homes use drones to scatter ashes of the departed. DroneDJ.com
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