Repeat pull from proven relationships plus room left

Primerica, Inc. (PRI) — this company's answers

The model's full reasoning — Q3 2016 call → NOWe need to answer YES or NO based on the transcript. The question asks: does management describe that counterparties the company has ALREADY SERVED AND PROVEN ITSELF WITH — existing customers, accounts, partners, members, or programs — are CURRENTLY, ON THEIR OWN INITIATIVE, TAKING OR COMMITTING TO MEANINGFULLY MORE from the company than they previously did (larger or earlier reorders, broader deployments, added sites, products, or scope, relationships stepped up to bigger phases), AND does management convey that these same relationships remain LIGHTLY PENETRATED — that what these counterparties have taken so far is still a small share of what they could take — so that the expansion now visible is early? We need to look for evidence in the transcript. The company is Primerica, an insurance and financial services company. They have a sales force of representatives. The "counterparties" could be the representatives themselves, or clients, or product providers. The question is about existing relationships deepening. In the transcript, management discusses growth in the sales force, recruiting, licensing, etc. They talk about growth in Term Life policies issued, and growth in ISP sales. But is there any mention of existing customers or partners taking more? For example, the sales force representatives are the distribution channel. They are growing in number, but that's new recruits, not necessarily existing ones taking more. However, they also mention productivity: "Productivity in the quarter of 0.22 policies issued per life-licensed representative per month was consistent with the third quarter a year ago." So productivity is flat, not increasing. So existing representatives are not taking more per rep. They also mention that "approximately 22% of our life insurance applications in 2015 were from clients who were also Primerica recruits or licensed representatives at the time of purchase." That's about representatives buying policies themselves, but that's not expansion of existing relationships. They talk about ISP sales: "net flows were positive, $201 million in the third quarter, ISP sales declined 2% to $1.34 billion year-over-year as U.S.

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