Security National Financial Corporation (SNFCA): 5 FORCES Analysis [Nov-2025 Updated]

You're trying to map out the competitive terrain for Security National Financial Corporation right now, and frankly, their three-pronged business-insurance, deathcare, and mortgages-makes it complicated. That diversification is supposed to be a shield, but as we close out 2025, it means they face distinct pressures everywhere; for example, while their total assets reached $1.563 billion by Q3 2025, the mortgage segment still bled $1.7 million in Q2. To see clearly where the real leverage lies-whether it's in supplier negotiations, customer price sensitivity, or the looming impact of new standards like LDTI-you need to look at the core structure of their industry competition. Below, we break down exactly how Michael Porter's five forces are shaping Security National Financial Corporation's near-term strategy.

Security National Financial Corporation (SNFCA) - Porter's Five Forces: Bargaining power of suppliers

You're looking at the suppliers that feed Security National Financial Corporation (SNFCA)'s three main segments: Life Insurance, Mortgage Loans, and Cemeteries/Mortuaries. The power these vendors hold directly impacts your cost structure and operational flexibility, so let's break down the hard numbers we see as of late 2025.

The technology backbone for the Life Insurance segment faces supplier concentration. While we don't have SNFCA's specific core system vendor list, the broader industry trend shows a tight grip. Globally, the insurance platform market is expected to reach $116.16 billion in 2025, with nearly 40% of InsurTech investment going to B2B SaaS firms, meaning a few key players dominate the specialized software space for policy administration and underwriting. This concentration naturally elevates supplier leverage.

Switching costs are a major factor here, even if we can't pinpoint a precise $3.2 million figure for SNFCA's specific migration. What we do see is the general market pressure: vendors are capitalizing on AI trends, leading to steep price hikes for advanced functionality. For instance, some major software providers rolled out price increases ranging from 6% to 80% in 2025, depending on the product tier and deployment model. This forces Security National Financial Corporation to absorb significant cost increases or face massive disruption by moving core systems. It's a tough spot when your operational efficiency relies on systems that are expensive to replace.

Dependence on specialized actuarial data and risk assessment technology vendors is a quiet but significant lever for suppliers. These niche providers offer tools that are deeply embedded in the underwriting and pricing models of Security National Life Insurance Company. If you need cutting-edge AI integration, which the industry is pushing for, you pay the premium. For context on the segment's scale, Security National Financial Corporation's Life Segment profits in Q2 2025 actually surpassed those of Q2 2024, suggesting they are managing premium rates effectively, but the underlying technology costs remain a constant pressure point.

For the reinsurance side of the Life Insurance business, supplier power is more moderate. Reinsurance partners are essential for ceding large, catastrophic risks that exceed Security National Financial Corporation's retention limits. These partners are large, sophisticated entities, but their power is balanced by the competitive nature of the reinsurance market itself. Security National Financial Corporation's conservative financial principles mean they likely maintain strong relationships, but they aren't entirely beholden to a single provider for all their needs.

Now, let's look at the Cemeteries/Mortuaries segment, where the supplier dynamics flip. The local mortuary supply market appears much more fragmented, which generally keeps supplier power in check for Security National Financial Corporation's Memorial Mortuaries & Cemeteries. However, the segment's size matters when negotiating. For the half-year ended June 30, 2025, the Cemetery and Mortuary Revenue was $16.2 million, a 4.7% decline from the prior year's $17.0 million. This smaller scale, concentrated mostly in Utah, means Security National Financial Corporation might not command the same volume discounts that much larger players, like Service Corporation International, can secure.

Here's a quick look at the financial context surrounding these supplier-dependent areas as of the first half of 2025:

The key takeaways regarding supplier power for Security National Financial Corporation boil down to this:

• Core system vendors wield significant power due to high integration complexity.
• General SaaS price inflation reached up to 80% for certain advanced features in 2025.
• Reinsurance partners hold moderate power, necessary for large risk transfer.
• Mortuary supply power is lower due to market fragmentation.
• The Death Care Segment's H1 2025 revenue of $16.2 million limits its negotiation leverage versus industry leaders.

Security National Financial Corporation (SNFCA) - Porter's Five Forces: Bargaining power of customers

You're looking at Security National Financial Corporation (SNFCA) through the lens of buyer power, and honestly, it's a mixed bag across its segments. In the life insurance arena, the sheer number of players means customers have options, which generally translates to higher bargaining power.

The US life insurance market is fragmented. As of 2025, there are 1,152 Life Insurance & Annuities businesses operating in the US, a slight decline of -1.9% from 2024. Furthermore, 850 life and health insurers dominate the life insurance market, giving consumers plenty of alternatives to compare against Security National Financial Corporation's offerings. This competitive density definitely pushes power toward the buyer in standard life product sales.

For the niche funeral plan products, which Security National Financial Corporation targets toward low-to-moderate income individuals, price sensitivity is definitely high. When you consider the Cemeteries/Mortuaries segment's half-year revenue for the first six months of 2025 was $16.2 million, down 4.7% from the prior year's $17.0 million, it suggests consumers are either choosing less expensive options or delaying purchases, a classic sign of price sensitivity impacting top-line results.

Switching costs for mortgage customers are practically nonexistent. They can shop rates across numerous lenders easily, which keeps Security National Financial Corporation's Mortgage Segment under constant pressure to offer competitive terms. This pressure is reflected in the segment's performance; for the three months ended June 30, 2025, the Mortgage Segment posted a loss of $1.7 million, a significant swing from a profit of $134,000 in Q2 2024.

Conversely, the Cemetery/Mortuary customers exhibit low bargaining power when services are needed immediately (at-need services). These customers are geographically captive, meaning their decision is often dictated by proximity and immediate need rather than price shopping across hundreds of miles. Still, the segment's Earnings Before Taxes for the first half of 2025 fell to $4.03 million from $5.14 million in H1 2024, indicating that even in this captive market, consumer preferences, like the shift toward cremation, are influencing revenue mix and profitability.

Value-focused investors keep a close eye on the balance sheet strength as a counterpoint to market pressures. Security National Financial Corporation's book value per share was reported at $14.35 as of June 30, 2025, which is a tangible metric investors use when assessing the floor value against market volatility. This metric shows improvement from $13.76 at the end of 2024.

Here's a quick look at some key metrics that frame the customer power dynamic:

The overall bargaining power for Security National Financial Corporation's customers can be summarized by these forces:

• Life insurance buyers face a market with 1,152 competitors.
• Funeral plan buyers show high price sensitivity.
• Mortgage customers benefit from low switching costs.
• At-need cemetery/mortuary buyers are geographically constrained.
• Book value per share stood at $14.35 on June 30, 2025.
• The company's ROE of 8% in Q2 2025 is below its 13.3% 10-year average.

The September 30, 2025, book value per common share was $14.79, showing continued balance sheet movement.

Security National Financial Corporation (SNFCA) - Porter's Five Forces: Competitive rivalry

You're looking at a business operating in a space where competition is definitely not in short supply. Security National Financial Corporation (SNFCA) manages intense rivalry across its three distinct segments: life insurance, deathcare, and mortgages. This means you have to watch three different competitive landscapes simultaneously.

In the insurance space, Security National Financial Corporation competes against much larger national and global players. For instance, you see names like Globe Life and AIA Group in the mix, which operate at a scale that dwarfs Security National Financial Corporation's current footprint. This scale difference is reflected in the numbers; Security National Financial Corporation's total revenues for the nine months ended September 30, 2025, were $261.6 million, a figure that is small when you stack it up against industry giants.

The mortgage segment highlights the volatility you face when rivalry is high and market conditions shift. For the quarter ended June 30, 2025, the Mortgage segment posted a $1.7 million loss, specifically swinging from a $134,000 profit in Q2 2024 to a $1.67 million loss in Q2 2025. That's a tough swing, even if the company managed a profitable quarter in Q3 2025.

To put Security National Financial Corporation's current market position into perspective, the company is ranked 25th among 246 active competitors. That ranking suggests a limited market share, meaning every new customer or loan is hard-fought.

Here's a quick look at the recent financial scale across the segments for Security National Financial Corporation:

The competitive pressure manifests in several ways you need to monitor:

• Security National Financial Corporation is 25th out of 246 competitors.
• Mortgage segment profitability is highly volatile, reporting a $1.7 million loss in Q2 2025.
• Life Insurance Segment revenue increased 9.1% in Q2 2025 over Q2 2024.
• Nine-month after-tax earnings for the nine months ended September 30, 2025, were $18,866,000.

The mortgage market, for example, is described as highly competitive with a large number of companies in the operating areas.

Security National Financial Corporation (SNFCA) - Porter's Five Forces: Threat of substitutes

You're looking at how outside options are pressuring Security National Financial Corporation (SNFCA)'s core business lines right now. It's not just about direct competitors; it's about what customers choose instead of a traditional burial, a guaranteed annuity, or a standard mortgage process. Here's the quick math on the substitutes we're seeing as of late 2025.

The shift toward lower-revenue cremation services is definitely impacting the Death Care side of Security National Financial Corporation (SNFCA). For the second quarter of 2025, the Cemetery/Mortuary segment saw revenues decline by 1.7% year-over-year. Nationwide, the cremation rate has now exceeded 50%. For the first half of 2025, Cemetery and Mortuary Revenue fell from $17.0 Million in 2024 to $16.2 million in 2025. The Funeral Homes segment reported that cremation rates increased to 52.8% in Q2 2025.

General investment vehicles and retirement savings are substituting for Security National Financial Corporation (SNFCA)'s annuity products, even as the Life Segment showed some strength. LIMRA is forecasting total 2025 annuity sales to fall back to the $364-$410 billion range, down from over $430 billion in 2024. Specifically, Fixed Indexed Annuity (FIA) sales are projected to drop 5%-10% from the 2024 record but still exceed $100 billion. Still, Security National Financial Corporation (SNFCA)'s Life Segment profit was up $1MM versus Q2 2024, largely due to increased investment income.

The mortgage origination channel is being bypassed by direct-to-consumer online platforms. This is clear when you look at Security National Mortgage Company's performance. We can map out the contrast in the mortgage segment:

The broader digital mortgage platforms market, however, is still growing, projected to reach $8.28 billion in 2025 from $7.19 billion in 2024. Apparently, 72% of millennials favor digital lending for its convenience, speed, and transparent processes.

Term life insurance remains a low-cost substitute for whole life and funeral plans, which Security National Financial Corporation (SNFCA) offers. Term life is generally much more affordable; a healthy 30-year-old might pay $25/month for term versus over $200/month for whole life. For a $500,000 whole life policy, the average annual premium for a 30-year-old male non-smoker in 2025 was $4,311.

Finally, consumer preference is leaning toward pre-planning services outside of a single provider bundle, which is reflected in Security National Financial Corporation (SNFCA)'s own results. The overall End Of Life Planning Market is valued at USD 30.5 billion in 2025. For Security National Financial Corporation (SNFCA), preneed land sales are lagging behind 2024 performance. You need to look at how consumers are allocating their planning dollars:

• The End Of Life Planning Market is projected to grow at a CAGR of 9.9% through 2034.
• Proactive end-of-life planning is becoming an integral aspect of financial wellness.
• Demand surged for environmentally conscious end-of-life options.
• Security National Financial Corporation (SNFCA)'s preneed land sales are lagging 2024 results.

Finance: draft 13-week cash view by Friday.

Security National Financial Corporation (SNFCA) - Porter's Five Forces: Threat of new entrants

The threat of new entrants for Security National Financial Corporation (SNFCA) is generally low in its core insurance and banking segments due to substantial regulatory and capital barriers, but this dynamic is being tested by agile technology-focused competitors.

The life insurance and mortgage banking businesses Security National Financial Corporation operates in are heavily regulated, creating significant hurdles for any new player attempting to establish a foothold. For the insurance side, statutory minimum capital and surplus requirements act as a primary deterrent. For instance, in some jurisdictions, a new life and disability insurer must maintain a statutory minimum paid-in capital of at least $2 million and an initial surplus of at least $4 million. In other states, the minimum capital and surplus requirement is set at $2.5 million for both capital and surplus.

Security National Financial Corporation's own scale provides a strong, existing barrier. As of the third quarter of 2025, the company reported total assets of $1,562,986,091. This balance sheet size represents a massive capital base that a startup would need to match or overcome to compete on scale and perceived stability.

The mortgage banking segment also faces evolving regulatory capital pressures. New capital rules, such as the Basel III Endgame proposal effective in July 2025, suggest more stringent guidelines, potentially raising capital requirements by 9% for global systemically important banks (G-SIBs). Furthermore, Ginnie Mae is implementing a risk-weighted capital model requiring issuers to maintain an adjusted net worth divided by risk-weighted assets greater than or equal to 6% by December 31, 2024. These capital demands make launching a new, full-service mortgage bank a high-stakes financial proposition.

However, the digital landscape introduces a counter-pressure. FinTech and InsurTech startups are leveraging technologies like open banking to introduce lower-cost, digital-first products that directly challenge incumbent models. While the high cost of money has reportedly choked the funding for some startups, they still represent an opportunity to transform finance and must be accommodated by established firms. Regulators are also tightening their grip on the sector, meaning new entrants must also navigate complex compliance frameworks from day one.

The threat of entry into Security National Financial Corporation's deathcare segment is comparatively less severe, though not negligible. While the overall industry is described as an oligopoly with high start-up costs and competition, the specific requirements for a local funeral home can be less daunting than for a regulated financial entity. For example, some direct cremation providers face fewer barriers related to the 'ready to embalm' requirements that raise costs for full-service firms. Still, establishing a cemetery involves a large initial cost and low initial return on investment.

The complexity of regulatory shifts also favors established players like Security National Financial Corporation. The company is preparing for the adoption of Accounting Standards Update 2018-12, known as Long-Duration Targeted Improvements (LDTI), at year-end 2025. This standard became effective for non-public insurers on January 1, 2025. LDTI requires dynamic assumption updates and introduces significant complexity in actuarial and accounting processes, which established firms with integrated systems are better equipped to handle than new entrants.

Here is a quick comparison of the capital barriers for the regulated segments:

The complexity of new standards like LDTI creates an operational moat. You'll want to ensure your internal teams are fully integrated before the 2025 year-end reporting cycle, as this transition favors firms that can manage dynamic modeling.

Key factors influencing the threat level include:

• Regulatory capital minimums are high for insurance charters.
• Security National Financial Corporation's $1.563 billion asset base is a deterrent.
• FinTechs offer cost advantages via digital-first models.
• LDTI accounting complexity favors incumbents with mature systems.
• Deathcare entry requires local real estate and licensing.

Finance: draft sensitivity analysis on capital impact of mortgage rule changes by December 15th.