SNFCA Security National Financial Corp

Management Discussion

• Total revenues increased by $2,693,000, or 1.0%, to $279,619,000 for 2018 from $276,926,000 for the fiscal year 2017. Contributing to this increase in total revenues was a $26,890,000 increase in gains on investments and other assets, a $5,517,000 increase in insurance premiums and other considerations, a $4,850,000 increase in net investment income, a $1,204,000 increase in other revenues, a $1,069,000 increase in net cemetery and mortuary sales, and a $774,000 decrease in other than temporary impairments.  This increase in total revenues was offset by a $37,611,000 decrease in mortgage fee income.
• Insurance premiums and other considerations increased by $5,517,000, or 7.8%, to $75,929,000 for 2018, from $70,412,000 for the comparable period in 2017. This increase was due to an increase in renewal premiums primarily from the resurgence of the Company’s Final Expense block of business along with improved persistency.
• Net investment income increased by $4,850,000, or 13.8%, to $39,913,000 for 2018, from $35,063,000 for the comparable period in 2017. This increase was primarily attributable to a $5,967,000 increase in interest from mortgage loans held for investment, a $1,482,000 increase in insurance assignment income, a $721,000 increase in income from cash and cash equivalents, a $312,000 decrease in investment expenses, and a $122,000 increase in income from other investments. This increase was partially offset by a $3,078,000 decrease in rental income from real estate held for investment, a $585,000 decrease in fixed maturity securities income, a $79,000 decrease in policy loan income, and a $12,000 decrease in equity securities income.