Security National Financial Corporation (SNFCA), headquartered in Salt Lake City, Utah, is a diversified holding company with a storied history of serving essential needs in life insurance, funeral services, and real estate.
Founded in 1965, the company has built a reputation for resilience and adaptability, navigating decades of economic changes while remaining a dependable provider of critical services. With its commitment to innovation and customer-centric solutions, SNFCA continues to grow as a trusted partner for individuals, families, and businesses alike.
SNFCA’s foundation lies in its ability to combine financial strength with operational diversity. Its three core business segments—life insurance, cemeteries and mortuaries, and mortgage loans—work in synergy to create steady revenue streams and mitigate risks during economic fluctuations. This strategic diversification allows the company to meet the evolving needs of its customers while providing consistent value to shareholders.
In the life insurance sector, SNFCA offers a range of policies that help families plan for their futures, secure financial stability, and manage estate planning. This division not only provides peace of mind to policyholders but also generates significant revenue growth for the company.
SNFCA’s funeral services segment, which includes cemeteries and mortuaries, has become a cornerstone of its operations, offering pre-need and at-need services that cater to families looking for comprehensive end-of-life planning solutions.
Meanwhile, its real estate and mortgage lending division serves as a stabilizing force, adapting to market changes and maintaining profitability even during challenging economic cycles.
A Diversified Business Model Built for Success
SNFCA’s strength lies in its ability to spread its operations across three interconnected industries: life insurance, funeral services, and mortgages. This diversification ensures steady revenue streams while minimizing risks. Each segment has delivered outstanding results in Q3 2024, reflecting the company’s operational efficiency and strategic focus.
In the life insurance segment, revenue grew to $48.9 million, up 3.5% from the previous year. Earnings before taxes surged by 72% to $12.4 million.
These gains were fueled by fewer death claims, a return to pre-pandemic trends in age distributions, and reduced costs for maintaining policies. The funeral services segment also performed strongly, with revenue increasing by 15.2% to $8.5 million and earnings before taxes nearly doubling to $2.8 million.
This growth is driven by the rising popularity of pre-need contracts, which allow families to plan ahead and lock in costs, providing a steady and predictable income stream for SNFCA.
The mortgage segment is perhaps the biggest turnaround story for SNFCA. After facing challenges in 2023, the division reported a 20.5% increase in revenue, reaching $30.9 million in Q3 2024.
The segment returned to profitability for the second consecutive quarter, with $3.5 million in additional earnings. SNFCA achieved this through smart cost-cutting measures and a strategic focus on capturing market share in key areas.
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A Record Year of Financial Performance
SNFCA’s financial results for the first nine months of 2024 reflect its remarkable growth. After-tax earnings reached $26.6 million, more than double the $11.6 million reported for the same period in 2023. Earnings per share climbed to $1.11 from $0.49, and the book value per share increased to $14.89, showcasing the company’s strengthening financial position.
This growth is a result of the company’s ability to capitalize on shifting consumer needs. The life insurance segment continues to benefit from increased awareness around financial security and estate planning.
The funeral services division is gaining traction due to demographic trends, particularly an aging population seeking pre-need funeral plans. Meanwhile, the mortgage segment has rebounded strongly by focusing on cost efficiency and market demand, despite rising interest rates.
Why SNFCA’s Growth is Important
SNFCA’s growth isn’t just about impressive numbers; it’s about delivering essential services that people rely on every day. Life insurance products align with growing consumer demand for financial protection and estate planning.
Pre-need funeral contracts are becoming a must-have for families who want to reduce stress and secure costs in advance. The mortgage segment, despite higher interest rates, has shown resilience by adapting to new market realities and contributing significantly to the company’s profitability.
This adaptability demonstrates SNFCA’s ability to stay relevant and thrive in changing market conditions. By offering essential services that remain in demand regardless of economic trends, SNFCA is building a strong foundation for sustainable growth.
Fitting Into Broader Trends
SNFCA operates in industries that are not only essential but also growing. Life insurance continues to gain importance as families prioritize financial security, while funeral services benefit from the increasing popularity of pre-need planning.
Real estate, though challenged by rising interest rates, remains a critical sector, and SNFCA’s strategic approach to mortgages has allowed it to stay ahead of the curve.
The company’s ability to align its operations with these trends sets it apart from competitors. It has shown that it can weather economic storms while capitalizing on opportunities to expand its market presence and profitability. This balanced approach makes SNFCA a resilient and forward-thinking company.
What’s Next for SNFCA
SNFCA’s future looks bright, with significant opportunities for growth across all three segments. The company’s strong cash reserves give it the flexibility to invest in expanding its operations, improving its product offerings, and entering new markets.
In the life insurance segment, SNFCA is well-positioned to develop higher-margin products that meet the needs of an evolving customer base. The funeral services division is expected to continue growing as more families turn to pre-need contracts. Meanwhile, the mortgage segment, having turned the corner to profitability, is poised to capture additional market share in key regions.
Investors should also watch for the company’s ongoing efforts to streamline operations and reduce costs, which could further boost profitability. SNFCA’s ability to adapt to changing economic conditions and customer needs will be critical as it looks to build on its 2024 success.
A Compelling Investment Opportunity
Security National Financial Corporation is proving itself as one of the most resilient and adaptable companies in its industries. With a 193% increase in after-tax earnings in Q3 2024 and a 128% year-to-date growth, SNFCA has shown that it can capitalize on opportunities across life insurance, funeral services, and real estate.
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