Company overview

Security National Financial Co’s largest business sells life insurance, with an emphasis on policies that pay funeral and burial costs when the insured person dies. Policyholders pay premiums, and the insurance subsidiaries also earn income from investing policyholder and surplus funds in assets such as bonds, real estate and mortgage loans. They sell annuities too, whose profitability depends on investment income exceeding interest credited to customers and expenses. Insurance rules restrict permitted investments, require minimum capital and limit transfers of funds to the parent; subsidiary dividends require regulatory approval.

Mortgage lending is the other major revenue source. SecurityNational Mortgage makes home-purchase and refinancing loans, using funding from group companies and outside financial institutions, then sells the loans to investors. It earns fees from borrowers and from investors buying the loans, with loan sales providing most of the mortgage business’s revenue. This business depends on access to funding and buyers for the loans.

The smaller cemetery and mortuary business serves families in Utah, California and New Mexico. Customers pay for burial space, funeral arrangements and cremation, either in advance or when someone dies. Some funeral insurance policies name a cemetery or mortuary as beneficiary, so the insurance payout pays for the services and products provided.