Security National Financial's Q3 after-tax earnings fall 39% due to challenging market conditions
Security National Financial's Q3 after-tax earnings fell nearly 39% year over year, while revenue declined 10.5%. Stockholders’ equity rose 8.2%, driven by revaluation of life reserves.
1. Quarterly results
Security National Financial's after-tax earnings fell nearly 39% year over year in the third quarter, and total revenue declined 10.5%. Stockholders’ equity rose 8.2%, driven by revaluation of life reserves.
2. Market pressures
Unfavorable geopolitical and deteriorating market conditions reduced volumes and hurt profitability. The mortgage segment swung to a loss, partly due to non-cash fair value adjustments to loans and derivatives; timing of home builder profit recognition, credit loss provisions and decreased funeral funding yields weighed on insurance segment profits.
3. Company outlook
The company said unfavorable geopolitical conditions continue to weigh on market conditions and volumes, and expects subdued housing and mortgage activity in most serviced markets. It anticipates profits from increased life insurance sales will be realized in future years.
