Profile: Security National Financial Corp (SNFCA.OQ)
9 Dec 2013
Security National Financial Corporation, incorporated on December 29, 1978, is a holding company. The Company operates in three business segments: life insurance, cemetery and mortuary, and mortgage loans. The life insurance segment is engaged in the business of selling and servicing selected lines of life insurance, annuity products and accident and health insurance. The cemetery and mortuary segment of the Company consists of five cemeteries in the state of Utah and one cemetery in the state of California, and seven mortuaries in the state of Utah and one mortuary in the state of Arizona. The Company also engages in pre-need selling of funeral, cemetery, mortuary and cremation services through its Utah, Arizona and California operations. The mortgage loan segment is an approved government and conventional lender that originates and underwrites or otherwise purchases residential and commercial loans for new construction, existing homes and real estate projects. In April 2013, the Company acquired two stories commercial office building located at 5201 South Green Street in Murray, Utah. In July 2013, the Company purchased a commercial office building, Wasatch 16, located in Draper, Utah.
The Company, through Security National Life and its insurance subsidiaries, Memorial Insurance Company of America (Memorial Insurance Company) and Southern Security Life Insurance Company (Southern Security), issues and distributes selected lines of life insurance and annuities. The Company's life insurance business includes funeral plans, and interest-sensitive life insurance, as well as other traditional life and accident and health insurance products. The Company is licensed to sell insurance in 38 states. The Company, in marketing its life insurance products, seeks to locate, develop and service specific niche markets. The Company sells its life insurance products through direct agents, brokers and independent licensed agents who may also sell insurance products of other companies. The commissions on life insurance products range from approximately 50% to 120% of first year premiums.
The Company's annuity business includes single premium deferred annuities, flexible premium deferred annuities and immediate annuities. Annuities have guaranteed interest rates that range from 1% to 6.5% per annum. An immediate annuity is a contract in which the individual remits to the Company a sum of money in return for the Company's obligation to pay a series of payments on a periodic basis, such as an individual's life, or for such other period as may be designated. The market for the Company's annuities is middle to older age individuals who wish to save or invest their money in a tax-deferred environment. The source of annuity considerations comes from direct agents. Annuities are also sold in conjunction with other insurance sales.
The Company is offers low-cost comprehensive diver’s accident policies. These policies provide worldwide coverage for medical expense reimbursement in the event of diving accidents. The primary purpose of reinsurance is to enable an insurance company to write a policy in an amount larger than the risk it is willing to assume for itself. The Company cedes and assumes certain risks with various authorized unaffiliated reinsurers pursuant to reinsurance treaties, which are renewable annually. The premiums paid by the Company are based on a number of factors, including the age of the insured and the risk ceded to the reinsurer.
Cemetery and Mortuary
The Company has six wholly owned non denominational cemeteries and eight wholly owned mortuaries. Through its cemetery and mortuary operations, the Company markets a range of products and services both on a pre-need basis (prior to death) and an at-need basis (at the time of death). The products include plots, interment vaults, mausoleum crypts and niches, markers, caskets, flowers and other related products. The services include professional services of funeral directors, opening and closing of graves, use of chapels and viewing rooms, and use of automobiles and clothing. The Company has a funeral chapel at each of its cemeteries, other than Holladay Memorial Park and Singing Hills Memorial Park, and has four separate stand-alone mortuary facilities.
The Company, through its wholly owned subsidiary, SecurityNational Mortgage Company (SecurityNational Mortgage) has been active in the residential real estate market. The Company has approvals through Housing and Urban Development HUD, Fannie Mae, Freddie Mac and other substantial secondary market investors, which enable it to originate a variety of residential mortgage loan products that are subsequently sold to investors. The Company also uses internal and external funding sources with unaffiliated financial institutions. Security National Life, an affiliate of SecurityNational Mortgage, originates commercial real estate loans both for internal investment as well as for sale to unaffiliated investors and also originates residential construction loans. . Security National Life, an affiliate of SecurityNational Mortgage, originates commercial real estate loans both for internal investment, as well as for sale to unaffiliated investors and also originates residential construction loans. The Company's residential mortgage lending services are marketed to mortgage originators. SecurityNational Mortgage maintains its retail origination presence in the Utah, Florida, California, Illinois and Texas markets in addition to five wholesale branch offices located in California, Florida, Kansas, Texas and Utah, with sales representatives in these and other states.
Security National Financial Corp
Suite 250, 5300 South 360 West
SALT LAKE CITY UT 84123