Tue, May 14, 4:06 PM (303 days ago)
First Trinity Financial Corporation (FTFC) reported an increase in revenues and net income for Q1 2024. Total revenue rose by $854,267, primarily driven by higher premiums ($542,696) and net investment income ($330,061). Premiums increased due to higher ordinary life renewals and first-year premiums, despite a slight decline in final expense first-year premiums. Net investment income benefited from increased mortgage loan yields and fixed maturity securities investments. Total benefits, claims, and expenses decreased by $175,408. This reduction was mainly due to a $706,649 decrease in future policy benefits and a $442,409 decline in death benefits. These decreases were partially offset by higher surrenders and policyholder interest credited. Operating cash flow improved significantly, reaching $26.2 million, primarily due to increased premiums and investment income collections. Investing activities provided $27.3 million, largely from mortgage loan payments. However, financing activities used $52.5 million, reflecting substantial policyholder withdrawals. Shareholders' equity increased by $1.2 million, driven by net income and a reduction in accumulated other comprehensive loss. The company maintains strong liquidity with $34.9 million in cash and equivalents. Future liquidity is supported by a diversified investment portfolio and stable policyholder behavior.