Impact of New Prereed Insurance Provider Transition on Sales Production
SCI transitioned to a new preneed insurance provider in July 2024, which temporarily reduced SCI Direct's sales production by 14% or $10 million in Q2 2025.
Management expects comparable core preneed sales growth in the second half of 2025 as the transition stabilizes.
The transition involved extensive training, licensing, and payment term changes for sales counselors, contributing to short-term sales decline.
As of today, 95% of markets have completed the transition, with expectations of year-over-year growth in 2026.
Dafinchi