Wed, May 14, 4:18 PM (29 days ago)
**Summary of First Trinity Financial Corporation (FTFC) Q1 2025 Performance** **Company Overview:** First Trinity Financial Corporation (FTFC) is an insurance holding company focusing on life insurance products and annuity contracts. The company operates through its subsidiaries, Trinity Life Insurance Company (TLIC) and Family Benefit Life Insurance Company (FBLIC), and engages in marketing, underwriting, and distributing life insurance and annuity products. **Financial Performance (Q1 2025 vs. Q1 2024):** 1. **Revenue:** - Total revenue increased by $1,067,487,000 to $19,609,695,000. - Premiums rose by $508,071,000 to $10,159,076,000. - Net investment income decreased by $139,594,000 to $7,818,283,000. - Net realized investment gains surged by $822,143,000 to $862,204,000. - Service fees increased by $504,233,000 to $751,915,000. - Other income decreased by $627,366,000 to $18,217,000. 2. **Expenses:** - Total benefits, claims, and expenses increased by $2,617,154,000 to $18,881,760,000. - Increase in future policy benefits by $915,859,000 to $3,496,874,000. - Death benefits increased by $454,240,000 to $3,964,993,000. - Surrenders increased by $198,210,000 to $775,567,000. - Interest credited to policyholders increased by $1,104,120,000 to $4,771,604,000. 3. **Income:** - Income before federal income tax expense decreased by $1,549,667,000 to $727,935,000. - Federal income tax expense decreased by $323,628,000 to $159,821,000. - Net income decreased by $1,226,039,000 to $568,114,000. 4. **Earnings per Share:** - Class A common stock: $0.0600 (down from $0.1895). - Class B common stock: $0.0510 (down from $0.1610). **Financial Position (Q1 2025 vs. Q1 2024):** 1. **Assets:** - Total assets increased by $3,790,065,000 to $690,238,963,000. - Investment assets increased by $25,936,776,000 to $519,325,760,000. - Other assets decreased by $20,257,527,000 to $141,626,077,000. 2. **Liabilities:** - Total liabilities increased by $182,503,000 to $617,581,173,000. - Policy liabilities increased by $3,476,865,000 to $575,399,807,000. 3. **Shareholders' Equity:** - Increased by $3,607,562,000 to $72,657,790,000. **Segment Performance (Q1 2025 vs. Q1 2024):** 1. **Life Insurance Operations:** - Revenue increased by $415,990,000 to $12,266,168,000. - Income before federal income tax expense decreased by $1,465,860,000 to $422,370,000. 2. **Annuity Operations:** - Revenue increased by $88,015,000 to $6,266,530,000. - Income before federal income tax expense decreased by $810,327,000 to $(202,725,000). 3. **Corporate Operations:** - Revenue increased by $563,482,000 to $1,076,997,000. - Income before federal income tax expense increased by $726,520,000 to $508,290,000. **Cash Flow (Q1 2025 vs. Q1 2024):** 1. **Operating Activities:** - Net cash provided decreased by $20,646,252,000 to $5,542,992,000. 2. **Investing Activities:** - Net cash used increased by $48,257,474,000 to $(20,919,987,000). 3. **Financing Activities:** - Net cash used decreased by $44,817,007,000 to $(7,652,477,000). 4. **Cash and Cash Equivalents:** - Decreased by $23,029,472,000 to $41,314,650,000. **Investments:** 1. **Fixed Maturity Securities:** - Increased by $15,562,706,000 to $229,308,527,000. 2. **Equity Securities:** - Increased by $76,961,000 to $5,413,023,000. 3. **Mortgage Loans on Real Estate:** - Increased by $11,994,533,000 to $221,359,037,000. 4. **Investment Real Estate:** - Increased by $150,430,000 to $2,501,979,000. 5. **Other Long-Term Investments:** - Decreased by $2,010,695,000 to $56,212,819,000. **Uncertainties and Future Operations:** - **Interest Rate Risk:** The value of the investment portfolio and net investment income are sensitive to interest rate changes. - **Liquidity Risk:** The company faces risks related to policyholder withdrawals and the need to maintain liquidity. - **Credit Risk:** The company holds various investments that are subject to credit risk, including mortgage loans and fixed maturity securities. - **Operational Risk:** The company is exposed to risks related to its cybersecurity and data management practices. **Conclusion:** FTFC's Q1 2025 financial performance shows a mixed picture with increased revenues but decreased net income. The company faces various risks and uncertainties that could impact its future operations and financial health. Continued focus on risk management and strategic investments will be crucial for sustaining growth and stability.