Security National Financial Corporation

What they do

The company operates three reportable segments: life insurance (selling funeral plans, interest-sensitive life, and other life/health products in 42 states), cemetery and mortuary (11 mortuaries and 5 cemeteries in Utah, plus locations in California and New Mexico, including pre-need funeral and cemetery services), and mortgages (originating and purchasing residential and commercial loans through 85 retail offices in 25 states). The segments are designed to support each other, with the cemetery/mortuary segment generating awareness for insurance sales, and the insurance segment investing in pre-need funeral products.

Revenue drivers

• Life insurance premiums — The largest segment; premiums were $57.6 million in H1 2026, down 4% from H1 2025. Products include funeral plans (face amounts up to $30,000) and traditional life, annuity, and accident/health policies.
• Net investment income (insurance) — A major earnings contributor; $33.4 million in H1 2026, down 14% from a year earlier. Insurance assets are invested in authorized instruments, and part of the portfolio supports pre-need funeral products.
• Cemetery and funeral home revenues — Cemetery revenues were $8.4 million in H1 2026 (up 7%) and funeral home revenues $6.97 million (up 3%). Includes at-need and pre-need service, merchandise, and burial plot sales.
• Mortgage origination — The mortgage segment originates and refinances residential and commercial loans, but no revenue detail was provided in the excerpts; it operates through 85 retail offices in 25 states.

Recent performance

Total segment revenues for the insurance operations were $98.4 million in H1 2026, down 5% from $104.0 million in H1 2025, with segment net earnings down 13% to $12.6 million. The cemetery/mortuary segment grew revenues 21% quarter-over-quarter in Q2 2026 and 12% for the six months to $18.5 million. Company-level annual revenue rose from $334.5 million in 2024 to $344.6 million in 2025, while annual net income grew to $32.15 billion (likely a mislabeled figure, but as reported) from $26.54 billion in 2024. Diluted EPS was $1.26 in 2025 versus $1.16 in 2024. Operating cash flow declined to $45.5 million in 2025 from $57.3 million in 2024.

Strategy

Management continues three stated strategies: focus on niche insurance products like funeral plans and traditional whole life, increase emphasis on funeral home and cemetery operations, and capitalize on the housing market through mortgage lending. The company pursues growth through acquisitions, as shown by its history of purchasing insurance blocks and cemetery/mortuary operations. It also leverages cross-segment synergies, with the cemetery/mortuary segment supporting insurance marketing and the insurance segment investing in pre-need funeral products.

Risks

• Investment income volatility — Net investment income in the insurance segment fell 14% in H1 2026, driven by lower yields or portfolio changes, which directly pressures net earnings.
• Competitive niche pressure — Funeral plans are a less competitive niche, but the company warns these policies can be more expensive per thousand-dollar cost of insurance due to low face amounts and simplified underwriting, which may limit demand.
• Mortgage market cyclicality — The mortgage segment depends on housing market conditions and interest rates; any downturn in new construction, home sales, or refinancing could reduce origination volumes.
• Regulatory and acquisition integration — The company has grown through many acquisitions of insurance companies and cemetery/mortuary businesses, exposing it to integration risks and regulatory approvals from state insurance departments.

Outlook

Management expects to continue the same three strategies: niche insurance, funeral/cemetery growth, and mortgage lending. They are likely to maintain acquisition activity given its historic pattern. No specific forward guidance was provided in the excerpts, but the focus remains on capitalizing on pre-need funeral planning and housing market opportunities.