Security National Financial Corporation reported after‑tax earnings of $7.8 million for the third quarter of 2025, a 34 % decline from $11.8 million in the same period a year earlier. Nine‑month earnings fell 30 % to $18.9 million from $26.6 million year‑over‑year, reflecting a sharp drop in investment income and higher reserve charges.
The mortgage division returned to profitability, marking its third profitable quarter in three years, while the life‑insurance segment posted weaker results driven by lower investment gains and higher CECL reserves. The death‑care segment saw modest improvements in pre‑need sales and interment volumes, offsetting some of the pressure on overall earnings.
Investors noted that the decline in investment income was largely due to a 20‑30 % reduction in the life‑insurance portfolio’s yield, compounded by the company’s transition to the new accounting standard for long‑duration insurance contracts scheduled for Q4 2025. The higher reserve charges associated with this transition further compressed earnings.
President Scott M. Quist emphasized that personnel costs were flat for the quarter, a significant improvement over the 10 % year‑to‑date increase seen in June, and highlighted a 7.9 % return on equity for the nine‑month period, indicating that cost discipline and operational efficiency are beginning to offset the headwinds in the life‑insurance business. He also noted that the company is investing in talent development, particularly in sales, to support future growth.
Management did not provide forward guidance for the remainder of the year, but indicated that the upcoming earnings call on November 14 would address the impact of the accounting changes and outline the company’s outlook. No market reaction data were available at the time of reporting.
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