0000950170-24-092932.txt : 20240807 0000950170-24-092932.hdr.sgml : 20240807 20240807165028 ACCESSION NUMBER: 0000950170-24-092932 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 16 CONFORMED PERIOD OF REPORT: 20240807 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20240807 DATE AS OF CHANGE: 20240807 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Primerica, Inc. CENTRAL INDEX KEY: 0001475922 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] ORGANIZATION NAME: 02 Finance IRS NUMBER: 271204330 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-34680 FILM NUMBER: 241184620 BUSINESS ADDRESS: STREET 1: 1 PRIMERICA PARKWAY CITY: DULUTH STATE: GA ZIP: 30099 BUSINESS PHONE: 7703811000 MAIL ADDRESS: STREET 1: 1 PRIMERICA PARKWAY CITY: DULUTH STATE: GA ZIP: 30099 8-K 1 pri-20240807.htm 8-K 8-K
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT (Date of earliest event reported): August 7, 2024

img186809205_0.jpg

Primerica, Inc.

(Exact Name of Registrant as Specified in Its Charter)


Delaware


001-34680


27-1204330

(State or other jurisdiction of
incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

1 Primerica Parkway

Duluth, Georgia 30099

(Address of Principal Executive Offices, and Zip Code)

(770) 381-1000

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

PRI

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 

 



 

Item 2.02 Results of Operations and Financial Condition.

On August 7, 2024, Primerica, Inc. (the “Company”) announced its results of operations for the quarter ended June 30, 2024. A copy of the press release is attached hereto as Exhibit 99.1.

The information provided pursuant to this Item 2.02, including Exhibit 99.1 in Item 9.01, is “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section, and shall not be incorporated by reference in any filing made by the Company under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), except to the extent expressly set forth by specific reference in any such filings.

 

Use of Non-GAAP Financial Measures

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company presents certain non-GAAP financial measures. Specifically, the Company presents adjusted direct premiums, other ceded premiums, adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income, adjusted stockholders’ equity and diluted adjusted operating earnings per share.

Adjusted direct premiums and other ceded premiums are net of amounts ceded under coinsurance transactions that were executed concurrent with our initial public offering (the “IPO coinsurance transactions”) for all periods presented. We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate within this block of business.

Adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income and diluted adjusted operating earnings per share exclude the impact of investment gains (losses), including credit impairments, and fair value mark-to-market (“MTM”) investment adjustments for all periods presented. We exclude investment gains (losses), including credit impairments, and MTM investment adjustments in measuring these non-GAAP financial measures to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains (losses) and market pricing variations prior to an invested asset’s maturity or sale that are not directly associated with the Company’s insurance operations. Also excluded from these non-GAAP financial measures is the receipt of insurance proceeds under a Representation and Warranty policy negotiated and purchased in connection with the acquisition of e-TeleQuote. We exclude this gain from our non-GAAP financial measures as it represents a non-recurring item that causes incomparability in the Company’s results.

Adjusted operating income before taxes, adjusted net operating income, and diluted adjusted operating earnings per share also exclude non-cash goodwill and intangible asset impairment charges. We exclude non-cash goodwill and intangible asset impairment charges as non-recurring items that cause incomparability between period-over-period results. Also excluded from these non-GAAP financial measures is restructuring and related charges incurred with the exit of our senior health business. We exclude these items from our non-GAAP financial measures as they are not useful in evaluating the Company’s ongoing operations.

Adjusted net operating income and diluted adjusted operating earnings per share also exclude the tax effect of pre-tax operating adjustments, the deferred tax benefit recognized in association with the impairment of intangible assets and the valuation allowance recognized for state operating losses in the Company’s Senior Health segment. We exclude these items from our non-GAAP financial measures as they represent the tax effect of pre-tax operating adjustments and/or non-recurring items that will cause incomparability between period-over-period results.

2

 



 

Adjusted stockholders’ equity excludes the impact of net unrealized investment gains (losses) recorded in accumulated other comprehensive income (loss) for all periods presented. We exclude unrealized investment gains (losses) in measuring adjusted stockholders’ equity as unrealized gains (losses) from the Company’s available-for-sale securities are largely caused by market movements in interest rates and credit spreads that do not necessarily correlate with the cash flows we will ultimately realize when an available-for-sale security matures or is sold. Adjusted stockholders’ equity also excludes the difference in future policy benefits calculated using the current discount rate and future policy benefits calculated using the locked-in discount rate at contract issuance recognized in accumulated other comprehensive income. We exclude the impact from the difference in the discount rate in measuring adjusted stockholders' equity as such difference is caused by market movements in interest rates that are not permanent and may not align with the cash flows we will ultimately incur when policy benefits are settled.

Our definitions of these non-GAAP financial measures may differ from the definitions of similar measures used by other companies. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. Furthermore, management believes that these non-GAAP financial measures may provide users with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of the core ongoing business. These measures have limitations and users should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Reconciliations of GAAP to non-GAAP financial measures are attached to this release.

Reconciliations of GAAP to non-GAAP financial measures are included as attachments to the press release which has been posted in the “Investor Relations” section of our website at https://investors.primerica.com.

 

Item 7.01 Regulation FD Disclosure.

On August 7, 2024, the Company posted to the “Investor Relations” section of its website certain supplemental financial information relating to the quarter ended June 30, 2024. A copy of the supplemental financial information is attached hereto as Exhibit 99.2.

The information provided pursuant to this Item 7.01, including Exhibit 99.2 in Item 9.01, is “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of such section, and shall not be incorporated by reference in any filing made by the Company under the Exchange Act or the Securities Act, except to the extent expressly set forth by specific reference in any such filings.

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Item 9.01.

 

Financial Statements and Exhibits.

(d) Exhibits.

99.1

 

Press Release dated August 7, 2024 – Primerica Reports Second Quarter 2024 Results

 

99.2

 

Primerica, Inc. Supplemental Financial Information – Second Quarter 2024

 

104

 

Cover Page from this Current Report on Form 8-K, formatted in Inline XBRL

 

 

4

 



 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: August 7, 2024

 

PRIMERICA, INC.

 

 /s/ Tracy Tan

 

Tracy Tan

Executive Vice President and Chief Financial Officer

 

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EX-99.1 2 pri-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

img164271198_0.jpg 

PRIMERICA REPORTS SECOND QUARTER 2024 RESULTS

New life licenses up 14%, driving sales force to record 145,789 representatives

Term Life net premiums increased 4%; adjusted direct premiums increased 5%

Issued Term Life face amount of $33 billion; total in force coverage of $951 billion

Investment and Savings Products sales of $3.1 billion, up 29%

Investment and Savings Products client asset values up 15%, ending the quarter at record $105 billion

GAAP diluted earnings per share of $0.03; diluted adjusted operating earnings per share of $4.71

Declared a 20% increase in dividend to $0.90 per share, payable on September 12, 2024; repurchased $143 million of common stock during the quarter

Duluth, GA, Aug. 7, 2024 – Primerica, Inc. (NYSE: PRI) today announced financial results for the quarter ended June 30, 2024. The Company’s previously announced decision to exit the Senior Health business and associated write-offs of non-cash items impacted GAAP earnings with net income ending at $1.2 million, or $0.03 per diluted share. Core business results from the quarter were strong. Adjusted net operating income of $162.7 million increased 12%, while adjusted operating earnings per diluted share of $4.71 grew 18% year-over-year. Total revenue of $803.4 million, which included $50 million in proceeds from payments under an insurance claim, increased 17% compared to the second quarter of 2023. Adjusted operating revenue of $753.3 million increased 9% year-over-year.

The Company’s decision to exit the Senior Health business led to several non-cash adjustments in the second quarter of 2024. These included write-offs of the remaining goodwill and intangibles and the recognition of a tax benefit from the removal of the deferred tax liabilities associated with the intangible assets and a valuation allowance for state net operating losses. The quarter’s results also included income recognized from the receipt of cash proceeds paid under a previously disclosed insurance claim. The Company excluded these non-recurring items from adjusted operating results to provide

1

 


a comparable basis to the prior period results. A reconciliation of these items to GAAP results is included in the tables at the end of this release.

Second quarter operating results were driven by strong sales of investment products and rising client asset values as well as steady premium growth and the predictable margins of the Term Life business. Investment income benefited from higher yielding investments and growth in the Company’s invested asset portfolio. Results were partially offset by weakness in the Senior Health business. Distribution results were strong during the quarter, driven by recruiting and growth in new life-licensed representatives.

“I am pleased with the continued momentum of our business and the ongoing efforts of our sales force to educate clients and help them navigate these uncertain times,” said Glenn Williams, Chief Executive Officer of Primerica, Inc. “We welcomed nearly 40,000 teammates during our international convention in July and believe the event will build momentum for the future.”

 

 

 

2

 


Second Quarter Distribution & Segment Results

 

Distribution Results

 

 

 

Q2 2024

 

 

Q2 2023

 

 

% Change

 

Life-Licensed Sales Force

 

 

145,789

 

 

 

137,806

 

 

 

6

%

Recruits

 

 

96,563

 

 

 

86,124

 

 

 

12

%

New Life-Licensed Representatives

 

 

14,402

 

 

 

12,638

 

 

 

14

%

Life Insurance Policies Issued

 

 

100,768

 

 

 

96,953

 

 

 

4

%

Life Productivity (1)

 

 

0.23

 

 

 

0.24

 

 

*

 

Issued Term Life Face Amount ($ billions) (2)

 

$

33.2

 

 

$

32.2

 

 

 

3

%

ISP Product Sales ($ billions)

 

$

3.1

 

 

$

2.4

 

 

 

29

%

Average Client Asset Values ($ billions)

 

$

103.0

 

 

$

88.8

 

 

 

16

%

Senior Health Submitted Policies (3)

 

 

15,767

 

 

 

13,885

 

 

 

14

%

Senior Health Approved Policies (4)

 

 

14,646

 

 

 

12,915

 

 

 

13

%

Closed U.S. Mortgage Volume ($ million brokered)

 

$

99.6

 

 

$

82.2

 

 

 

21

%

 

 

 

 

 

 

 

 

 

 

 

(1)
Life productivity equals the average monthly policies issued divided by the average number of life insurance licensed representatives.
(2)
Includes face amount on issued term life policies, additional riders added to existing policies, and face increases under increasing benefit riders.
(3)
Represents the number of completed applications that, with respect to each such application, the applicant has authorized us to submit to the health insurance carrier.
(4)
Represents an estimate of submitted policies approved by health insurance carriers during the indicated period. Not all approved policies will go in force.

* Not calculated

 

Segment Results

 

 

Q2 2024

 

 

Q2 2023

 

 

% Change

 

 

 

 

($ in thousands)

Adjusted Operating Revenues:

 

 

 

 

 

 

 

 

 

 

Term Life Insurance

 

$

426,944

 

 

$

411,873

 

 

 

4

%

 

Investment and Savings Products

 

 

260,906

 

 

 

214,509

 

 

 

22

%

 

Senior Health

 

 

12,420

 

 

 

14,890

 

 

 

(17

)%

 

Corporate and Other Distributed Products (1)

 

 

53,015

 

 

 

48,293

 

 

 

10

%

 

    Total adjusted operating revenues (1)

 

$

753,285

 

 

$

689,565

 

 

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income (Loss) before
  income taxes:

 

 

 

 

 

 

 

 

 

 

Term Life Insurance

 

$

147,779

 

 

$

140,113

 

 

 

5

%

 

Investment and Savings Products

 

 

74,782

 

 

 

59,583

 

 

 

26

%

 

Senior Health (1)

 

 

(11,365

)

 

 

(6,032

)

 

 

88

%

 

Corporate and Other Distributed Products (1)

 

 

942

 

 

 

(3,588

)

 

NM

 

 

Total adjusted operating income before income taxes (1)

 

$

212,138

 

 

$

190,076

 

 

 

12

%

 

 

(1)
See the Non-GAAP Financial Measures section and the Adjusted Operating Results reconciliation tables at the end of this release for additional information.

 

 

3

 


Life Insurance Licensed Sales Force

During the second quarter, the Company successfully leveraged the excitement leading into its convention and the efforts of its field leaders to help new recruits effectively navigate the licensing process. The appeal of Primerica’s business opportunity continued to generate significant interest. The Company recruited a total of 96,563 individuals, a 12% increase compared to the prior year period. Licensing remained similarly strong with a total of 14,402 new life licenses during the quarter, a 14% increase compared to the prior year period, fueling 6% growth in the size of the sales force year-over-year to 145,789 life-licensed representatives.

Term Life Insurance

Life insurance policies issued during the second quarter increased 4% to 100,768, helping drive $33.2 billion in new term life face amount issued during the three months ended June 30, 2024. Productivity was at the higher end of the historical range at a monthly average of 0.23 policies issued per life-licensed representative. We believe higher cost of living pressures continued to impact middle-income families, contributing to elevated lapse rates during the quarter.

During the second quarter, Term Life revenues of $426.9 million increased 4% compared to the second quarter of 2023 driven by 5% growth in adjusted direct premiums, while pre-tax operating income of $147.8 million increased 5%. The benefits and claims ratio of 57.4% benefited from a $4.3 million remeasurement gain largely due to better than anticipated claims experience. The DAC amortization and insurance commissions ratio of 11.8% remained stable year-over-year. The Term Life operating margin was 23.1%, in line with the prior year period.

Investment and Savings Products

Total product sales during the quarter were $3.1 billion, increasing 29% compared to the prior year period, driven by the strong demand for mutual funds, annuities and managed accounts. On June 30, 2024, client asset values were $105 billion, up 15% year-over-year primarily due to strong equity market appreciation. Net client inflows were $423 million during the quarter.

Second quarter ISP revenues of $260.9 million increased 22% compared to the prior year period, while pre-tax operating income of $74.8 million increased 26% due to strong sales and an increase in average client asset values. Revenues from sales-based commissions and fees increased 35%, rising at a slightly higher rate than sales due to a favorable mix shift. Sales-based commission expenses increased 31%, in line with the increase in correlated sales. Asset-based revenues increased 17%, largely consistent with the growth in average client asset values. The change in asset-based commission expenses was in line with asset-based revenues, excluding revenues on Canadian segregated funds. Expenses related to Canadian segregated funds are reflected in insurance commissions and amortization of DAC.

Senior Health

4

 


During the second quarter of 2024, a total of 14,646 policies were approved by carriers, representing a 13% increase compared to the prior year period. The lifetime value of commissions per approved policy (“LTV”) was $914, while contract acquisition costs per approved policy (“CAC”) were $1,074 for a LTV/CAC ratio of 0.9.

Second quarter Senior Health revenues were $12.4 million, including a $1.8 million negative tail revenue adjustment due to higher policy churn. The adjusted operating loss during the quarter was $11.4 million, driven by higher contract acquisition costs, which rose 25% as e-TeleQuote onboarded agents in preparation for the upcoming enrollment period.

Corporate and Other Distributed Products

During the second quarter of 2024, the segment recorded pre-tax adjusted operating income of $0.9 million compared to a pre-tax adjusted operating loss of $3.6 million in the prior year period. The year-over-year change was primarily driven by the continued benefit of higher interest rates and growth in the size of the invested asset portfolio, which added an additional $5.0 million of adjusted net investment income to current quarter revenues.

Taxes

The effective tax rate was 85.0% in the second quarter of 2024 compared to 23.5% in the prior year period. The increase in the effective tax rate during the second quarter of 2024 was primarily driven by the non-cash goodwill impairment charge that is not deductible for income tax purposes and a valuation allowance established against e-TeleQuote’s state net operating losses. The impact of those two items was partially offset by the representation and warranty insurance proceeds, which will be excluded from taxable income, and the write-off of deferred tax liabilities on the intangibles that were fully impaired in the quarter. Excluding the impact of the four aforementioned items, the effective tax rate in the second quarter of 2024 would have been 23.3%.

Capital

The Company repurchased 629,378 shares of common stock for $142.7 million during the second quarter of 2024 and the Board of Directors has approved a 20% increase in the dividend to $0.90 per share, payable on September 12, 2024 to stockholders of record on August 21, 2024. Primerica Life Insurance Company’s statutory risk-based capital (RBC) ratio was estimated to be about 445% as of June 30, 2024.

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company presents certain non-GAAP financial measures. Specifically, the Company presents adjusted direct premiums, other ceded premiums, adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income, and diluted adjusted operating earnings per share.

5

 


Adjusted direct premiums and other ceded premiums are net of amounts ceded under coinsurance transactions that were executed concurrent with our initial public offering (the “IPO coinsurance transactions”) for all periods presented. We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate within this block of business.

Adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income and diluted adjusted operating earnings per share exclude the impact of investment gains (losses), including credit impairments, and fair value mark-to-market (“MTM”) investment adjustments for all periods presented. We exclude investment gains (losses), including credit impairments, and MTM investment adjustments in measuring these non-GAAP financial measures to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains (losses) and market pricing variations prior to an invested asset’s maturity or sale that are not directly associated with the Company’s insurance operations. Also excluded from these non-GAAP financial measures is the receipt of insurance proceeds under a Representation and Warranty policy negotiated and purchased in connection with the acquisition of e-TeleQuote. We exclude this gain from our non-GAAP financial measures as it represents a non-recurring item that causes incomparability in the Company’s results.

Adjusted operating income before taxes, adjusted net operating income, and diluted adjusted operating earnings per share also exclude non-cash goodwill and intangible asset impairment charges. We exclude non-cash goodwill and intangible asset impairment charges as non-recurring items that cause incomparability between period-over-period results. Also excluded from these non-GAAP financial measures is restructuring and related charges incurred with the exit of our senior health business. We exclude these items from our non-GAAP financial measures as they are not useful in evaluating the Company’s ongoing operations. Adjusted net operating income and diluted adjusted operating earnings per share also exclude the tax effect of pre-tax operating adjustments, the deferred tax benefit recognized in association with the impairment of intangible assets and the valuation allowance recognized for state operating losses in the Company’s Senior Health segment. We exclude these items from our non-GAAP financial measures as they represent the tax effect of pre-tax operating adjustments and/or non-recurring items that will cause incomparability between period-over-period results.

Our definitions of these non-GAAP financial measures may differ from the definitions of similar measures used by other companies. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. Furthermore, management believes that these non-GAAP financial measures may provide users with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of the core ongoing business. These measures have limitations and users should not

6

 


consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Reconciliations of GAAP to non-GAAP financial measures are attached to this release.

Earnings Webcast Information

Primerica will hold a webcast on Thursday, August 8, 2024, at 10:00 a.m. Eastern, to discuss the quarter’s results. To access the webcast, go to https://investors.primerica.com at least 15 minutes prior to the event to register, download and install any necessary software. A replay of the call will be available for approximately 30 days. This release and a detailed financial supplement will be posted on Primerica’s website.

Forward-Looking Statements

Except for historical information contained in this press release, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from anticipated or projected results. Those risks and uncertainties include, among others, our failure to continue to attract and license new recruits, retain sales representatives or license or maintain the licensing of sales representatives; new laws or regulations that could apply to our distribution model, which could require us to modify our distribution structure; changes to the independent contractor status of sales representatives; our or sales representatives’ violation of or non-compliance with laws and regulations; litigation and regulatory investigations and actions concerning us or sales representatives; differences between our actual experience and our expectations regarding mortality, persistency, disability or insurance as reflected in the pricing for our insurance policies; changes in federal, state and provincial legislation or regulation that affects our insurance, investment product and mortgage businesses; our failure to meet regulatory capital ratios or other minimum capital and surplus requirements; a significant downgrade by a ratings organization; the failure of our reinsurers or reserve financing counterparties to perform their obligations; the failure of our investment products to remain competitive with other investment options or the loss of our relationship with one or more of the companies whose investment products we provide; heightened standards of conduct or more stringent licensing requirements for sales representatives; inadequate policies and procedures regarding suitability review of client transactions; revocation of our subsidiary’s status as a non-bank custodian; inability to abandon our ownership of e-TeleQuote by the anticipated date, or at all, which would cause us to exit the senior health insurance distribution business by an alternative method that may not be as beneficial to stockholder value as the planned abandonment; a significant change to or disruption in the mortgage lenders’ mortgage businesses or an inability of the mortgage lenders to satisfy their contractual obligations to us; economic downcycles that impact our business, financial condition and results of operations; major public health pandemics, epidemics or outbreaks or other catastrophic events; the failure of our or a third-party partner’s information technology systems, breach of our information security, failure of our business continuity plan or the

7

 


loss of the Internet; any failure to protect the confidentiality of client information; the current legislative and regulatory climate with regard to privacy and cybersecurity; cyber-attack(s), security breaches or if e-TeleQuote is otherwise unable to safeguard the security and privacy of confidential data, including personal health information; the effects of credit deterioration and interest rate fluctuations on our invested asset portfolio and other assets; incorrectly valuing our investments; changes in accounting standards may impact how we record and report our financial condition and results of operations; the inability of our subsidiaries to pay dividends or make distributions; litigation and regulatory investigations and actions; a significant change in the competitive environment in which we operate; the loss of key personnel or sales force leaders; the efficiency and success of business initiatives to enhance our technology, products and services; any acquisition or investment in businesses that do not perform as we expect or are difficult to integrate; and fluctuations in the market price of our common stock or Canadian currency exchange rates. These and other risks and uncertainties affecting us are more fully described in our filings with the Securities and Exchange Commission, which are available in the "Investor Relations" section of our website at https://investors.primerica.com. Primerica assumes no duty to update its forward-looking statements as of any future date.

About Primerica, Inc.

Primerica, Inc., headquartered in Duluth, GA, is a leading provider of financial products and services to middle-income households in North America. Independent licensed representatives educate Primerica clients about how to better prepare for a more secure financial future by assessing their needs and providing appropriate solutions through term life insurance, which we underwrite, and mutual funds, annuities and other financial products, which we distribute primarily on behalf of third parties. We insured approximately 5.7 million lives and had approximately 2.9 million client investment accounts on December 31, 2023. Primerica, through its insurance company subsidiaries, was the #2 issuer of Term Life insurance coverage in the United States and Canada in 2023. Primerica stock is included in the S&P MidCap 400 and the Russell 1000 stock indices and is traded on The New York Stock Exchange under the symbol “PRI”.

Investor Contact:

Nicole Russell

470-564-6663
Email: Nicole.Russell@primerica.com

Media Contact:

Susan Chana

404-229-8302

Email: Susan.Chana@Primerica.com

 

8

 


PRIMERICA, INC. AND SUBSIDIARIES

 

Condensed Consolidated Balance Sheets

 

 

 

 

(Unaudited)

 

 

 

 

 

 

June 30, 2024

 

 

December 31, 2023

 

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

Fixed-maturity securities available-for-sale, at fair value

 

$

2,796,030

 

 

$

2,719,467

 

Fixed-maturity security held-to-maturity, at amortized cost

 

 

1,353,370

 

 

 

1,386,980

 

Short-term investments available-for-sale, at fair value

 

 

-

 

 

 

276

 

Equity securities, at fair value

 

 

26,026

 

 

 

29,680

 

Trading securities, at fair value

 

 

3,158

 

 

 

18,383

 

Policy loans and other invested assets

 

 

49,791

 

 

 

51,175

 

     Total investments

 

 

4,228,375

 

 

 

4,205,961

 

Cash and cash equivalents

 

 

627,292

 

 

 

613,148

 

Accrued investment income

 

 

25,687

 

 

 

23,958

 

Reinsurance recoverables

 

 

2,833,055

 

 

 

3,015,777

 

Deferred policy acquisition costs, net

 

 

3,566,126

 

 

 

3,447,234

 

Renewal commissions receivable

 

 

171,022

 

 

 

190,258

 

Agent balances, due premiums and other receivables

 

 

288,766

 

 

 

273,066

 

Goodwill

 

 

-

 

 

 

127,707

 

Intangible assets, net

 

 

45,275

 

 

 

175,025

 

Income taxes

 

 

118,379

 

 

 

123,514

 

Operating lease right-of-use assets

 

 

50,646

 

 

 

53,693

 

Other assets

 

 

357,115

 

 

 

382,549

 

Separate account assets

 

 

2,253,966

 

 

 

2,395,842

 

Total assets

 

$

14,565,704

 

 

$

15,027,732

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Future policy benefits

 

$

6,436,332

 

 

$

6,742,025

 

Unearned and advance premiums

 

 

17,076

 

 

 

14,876

 

Policy claims and other benefits payable

 

 

478,773

 

 

 

513,803

 

Other policyholders' funds

 

 

412,570

 

 

 

435,094

 

Note payable

 

 

594,110

 

 

 

593,709

 

Surplus note

 

 

1,353,014

 

 

 

1,386,592

 

Income taxes

 

 

135,049

 

 

 

135,247

 

Operating lease liabilities

 

 

58,756

 

 

 

61,358

 

Other liabilities

 

 

613,303

 

 

 

583,434

 

Payable under securities lending

 

 

90,995

 

 

 

99,785

 

Separate account liabilities

 

 

2,253,966

 

 

 

2,395,842

 

   Total liabilities

 

 

12,443,944

 

 

 

12,961,765

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

340

 

 

 

350

 

Paid-in capital

 

 

-

 

 

 

-

 

Retained earnings

 

 

2,122,832

 

 

 

2,276,946

 

Accumulated other comprehensive income (loss), net of income tax:

 

 

 

 

 

 

Effect of change in discount rate assumptions on the liability for future policy benefits

 

 

201,441

 

 

 

(39,086

)

Unrealized foreign currency translation gains (losses)

 

 

(15,507

)

 

 

(2,235

)

Net unrealized gains (losses) on available-for-sale securities

 

 

(187,346

)

 

 

(170,008

)

Total stockholders' equity

 

 

2,121,760

 

 

 

2,065,967

 

Total liabilities and stockholders' equity

 

$

14,565,704

 

 

$

15,027,732

 

 

 

9

 


PRIMERICA, INC. AND SUBSIDIARIES

 

Condensed Consolidated Statements of Income

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

 

 

2024

 

 

2023

 

 

 

(In thousands, except per-share amounts)

 

Revenues:

 

 

 

 

 

 

Direct premiums

 

$

845,358

 

 

$

828,296

 

Ceded premiums

 

 

(427,561

)

 

 

(425,266

)

Net premiums

 

 

417,797

 

 

 

403,030

 

Commissions and fees

 

 

279,769

 

 

 

233,130

 

Net investment income

 

 

38,452

 

 

 

32,398

 

Investment gains (losses)

 

 

(99

)

 

 

(328

)

Other, net

 

 

67,456

 

 

 

20,155

 

Total revenues

 

 

803,375

 

 

 

688,385

 

 

 

 

 

 

 

 

Benefits and expenses:

 

 

 

 

 

 

Benefits and claims

 

 

150,030

 

 

 

148,911

 

Future policy benefits remeasurement (gain) loss

 

 

(4,329

)

 

 

(1,867

)

Amortization of deferred policy acquisition costs

 

 

73,643

 

 

 

68,110

 

Sales commissions

 

 

142,154

 

 

 

113,623

 

Insurance expenses

 

 

62,685

 

 

 

59,093

 

Insurance commissions

 

 

7,399

 

 

 

9,142

 

Contract acquisition costs

 

 

15,724

 

 

 

12,602

 

Interest expense

 

 

6,099

 

 

 

6,686

 

Impairment of goodwill and other long-lived assets (1)

 

 

253,607

 

 

 

-

 

Other operating expenses

 

 

88,566

 

 

 

83,189

 

Total benefits and expenses

 

 

795,578

 

 

 

499,489

 

Income before income taxes

 

 

7,797

 

 

 

188,896

 

Income taxes

 

 

6,626

 

 

 

44,392

 

Net income

 

$

1,171

 

 

$

144,504

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

Basic earnings per share

 

$

0.03

 

 

$

3.97

 

Diluted earnings per share

 

$

0.03

 

 

$

3.97

 

 

 

 

 

 

 

 

Weighted-average shares used in computing
  earnings per share:

 

 

 

 

 

 

Basic

 

 

34,383

 

 

 

36,215

 

Diluted

 

 

34,383

 

 

 

36,290

 

 

(1)
Other long-lived assets impairment consists of intangible assets ($124.5 million) and other assets ($1.4 million).

 

10

 


PRIMERICA, INC. AND SUBSIDIARIES

 

Consolidated Adjusted Operating Results Reconciliation

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

 

 

 

 

 

2024

 

 

2023

 

 

% Change

 

 

 

(In thousands, except per-share amounts)

 

 

 

 

Total revenues

 

$

803,375

 

 

$

688,385

 

 

 

17

%

Less: Investment (losses) gains

 

 

(99

)

 

 

(328

)

 

 

 

Less: 10% deposit asset MTM included in NII

 

 

189

 

 

 

(852

)

 

 

 

Less: Gain on insurance proceeds

 

 

50,000

 

 

 

-

 

 

 

 

Adjusted operating revenues

 

$

753,285

 

 

$

689,565

 

 

 

9

%

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

$

7,797

 

 

$

188,896

 

 

NM

 

Less: Investment (losses) gains

 

 

(99

)

 

 

(328

)

 

 

 

Less: 10% deposit asset MTM included in NII

 

 

189

 

 

 

(852

)

 

 

 

Less: Gain on insurance proceeds

 

 

50,000

 

 

 

-

 

 

 

 

Less: Restructuring costs

 

 

(824

)

 

 

-

 

 

 

 

Less: Impairment of goodwill

 

 

(127,707

)

 

 

-

 

 

 

 

Less: Impairment of other long-lived assets

 

 

(125,900

)

 

 

-

 

 

 

 

Adjusted operating income before income taxes

 

$

212,138

 

 

$

190,076

 

 

 

12

%

 

 

 

 

 

 

 

 

 

 

Net income

 

$

1,171

 

 

$

144,504

 

 

NM

 

Less: Investment (losses) gains

 

 

(99

)

 

 

(328

)

 

 

 

Less: 10% deposit asset MTM included in NII

 

 

189

 

 

 

(852

)

 

 

 

Less: Gain on insurance proceeds

 

 

50,000

 

 

 

-

 

 

 

 

Less: Restructuring costs

 

 

(824

)

 

 

-

 

 

 

 

Less: Impairment of goodwill

 

 

(127,707

)

 

 

-

 

 

 

 

Less: Tax impact of preceding items

 

 

18,720

 

 

 

277

 

 

 

 

Less: Impairment of other long-lived assets

 

 

(125,900

)

 

 

-

 

 

 

 

Less: Deferred tax benefit of impairment of other long-lived assets

 

 

35,126

 

 

 

-

 

 

 

 

Less: Valuation allowance on Senior Health state net operating losses

 

 

(11,080

)

 

 

-

 

 

 

 

Adjusted net operating income

 

$

162,746

 

 

$

145,407

 

 

 

12

%

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

0.03

 

 

$

3.97

 

 

NM

 

Less: Net after-tax impact of operating adjustments

 

 

(4.68

)

 

 

(0.02

)

 

 

 

Diluted adjusted operating earnings per share

 

$

4.71

 

$

3.99

 

 

 

18

%

 

 

11

 


TERM LIFE INSURANCE SEGMENT

 

Adjusted Premiums Reconciliation

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

 

 

 

 

 

2024

 

 

2023

 

 

% Change

 

 

 

(In thousands)

 

 

 

 

Direct premiums

 

$

840,668

 

 

$

823,297

 

 

 

2

%

Less: Premiums ceded to IPO coinsurers

 

 

201,566

 

 

 

216,740

 

 

 

 

Adjusted direct premiums

 

 

639,102

 

 

 

606,557

 

 

 

5

%

 

 

 

 

 

 

 

 

 

 

Ceded premiums

 

 

(426,348

)

 

 

(423,704

)

 

 

 

Less: Premiums ceded to IPO coinsurers

 

 

(201,566

)

 

 

(216,740

)

 

 

 

Other ceded premiums

 

 

(224,782

)

 

 

(206,964

)

 

 

 

Net premiums

 

$

414,320

 

 

$

399,593

 

 

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENIOR HEALTH SEGMENT

 

Adjusted Operating Results Reconciliation

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

 

 

 

 

 

2024

 

 

2023

 

 

% Change

 

 

 

(In thousands)

 

 

 

 

Income (loss) before income taxes

 

$

(264,972

)

 

$

(6,032

)

 

NM

 

Less: Impairment of goodwill

 

 

(127,707

)

 

 

-

 

 

 

 

Less: Impairment of other long-lived assets

 

 

(125,900

)

 

 

-

 

 

 

 

Adjusted operating income (loss) before income taxes

 

$

(11,365

)

 

$

(6,032

)

 

 

88

%

 

 

 

 

 

 

 

 

 

 

 

 

CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT

 

Adjusted Operating Results Reconciliation

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

 

 

 

 

 

2024

 

 

2023

 

 

% Change

 

 

 

(In thousands)

 

 

 

 

Total revenues

 

$

103,105

 

 

$

47,113

 

 

NM

 

Less: Investment gains (losses)

 

 

(99

)

 

 

(328

)

 

 

 

Less: 10% deposit asset MTM included in NII

 

 

189

 

 

 

(852

)

 

 

 

Less: Gain on insurance proceeds

 

 

50,000

 

 

 

-

 

 

 

 

Adjusted operating revenues

 

$

53,015

 

 

$

48,293

 

 

 

10

%

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

$

50,208

 

 

$

(4,768

)

 

NM

 

Less: Investment gains (losses)

 

 

(99

)

 

 

(328

)

 

 

 

Less: 10% deposit asset MTM included in NII

 

 

189

 

 

 

(852

)

 

 

 

Less: Restructuring costs

 

 

(824

)

 

 

-

 

 

 

 

Less: Gain on insurance proceeds

 

 

50,000

 

 

 

-

 

 

 

 

Adjusted operating income (loss) before income taxes

 

$

942

 

 

$

(3,588

)

 

NM

 

 

12

 


EX-99.2 3 pri-ex99_2.htm EX-99.2 EX-99.2

Exhibit 99.2

 

 

 

 

img165194719_0.jpg 

 

Supplemental Financial Information

Second Quarter 2024


 

Table of Contents

PRIMERICA, INC.

Financial Supplement

 

 

 

Page

Preface, definition of non-GAAP financial measures

3

Condensed balance sheets and reconciliation of balance sheet non-GAAP to GAAP financial measures

4

Financial results and other statistical data

5

Statements of income

6

Reconciliation of statement of income GAAP to non-GAAP financial measures

7-8

Segment operating results

 

Term Life Insurance segment - financial results, financial analysis, and key statistics

9-10

Investment and Savings Products segment - financial results, financial analysis, and key statistics

11-12

Senior Health segment - financial results, financial analysis, and key statistics

13

Corporate & Other Distributed Products segment - financial results

14

Investment portfolio

15-17

Five-year historical key statistics

18

 

 

This document may contain forward-looking statements and information. Additional information and factors that could cause actual results to differ materially from any forward-looking statements or information in this document is available in our Form 10-K for the year ended December 31, 2023.

 

2 of 18

 


 

 

Preface

PRIMERICA, INC.

Financial Supplement

 

 

Second Quarter 2024

 

This document is a financial supplement to our first quarter 2024 earnings release. It is designed to enable comprehensive analysis of our ongoing business using the same core metrics that our management utilizes in assessing our business and making strategic and operational decisions. Throughout this document we provide financial information that is derived from our U.S. GAAP financial statements and adjusted for three different purposes, as follows:

Operating adjustments exclude the impact of investment gains/losses, including credit impairments and mark-to-market (MTM) investment adjustments. We exclude investment gains/losses, including credit impairments, and MTM investment adjustments in measuring adjusted operating revenues to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains and losses and other factors prior to an invested asset's maturity or sale that are not directly associated with the Company's insurance operations. Operating adjustments also exclude the gain recognized for insurance proceeds from a Representation and Warranty insurance policy negotiated and purchased in connection with the acquisition of e-TeleQuote. We exclude this as it represents a non-recurring item that causes incomparability in the Company’s results. Operating adjustments also exclude non-cash goodwill and intangible asset impairment charges as non-recurring items that cause incomparability between period-over-period results. Operating adjustments also exclude restructuring and related charges incurred with the exit of our senior health business. We exclude these charges as they are not useful in evaluating the Company’s ongoing operations. Adjusted net operating income and diluted adjusted operating earnings per share also exclude the tax effect of pre-tax operating adjustments, the deferred tax benefit recognized in association with the impairment of intangible assets and the valuation allowance recognized for state net operating losses (NOLs) in the Company’s Senior Health segment. We exclude these items from our non-GAAP financial measures as they represent the tax effect of pre-tax operating adjustments and/or non-recurring items that will cause incomparability between period-over-period results.

Adjusted stockholders’ equity refers to the removal of the impact of net unrealized gains and losses on invested assets. We exclude unrealized investment gains and losses in measuring adjusted stockholders' equity as unrealized gains and losses from the Company's invested assets are largely caused by market movements in interest rates and credit spreads that do not necessarily correlate with the cash flows we will ultimately realize when an invested asset matures or is sold. Adjusted stockholders' equity also excludes the difference in future policy benefits calculated using the current discount rate and future policy benefits calculated using the locked-in discount rate at contract issuance recognized in accumulated other comprehensive income. We exclude the impact from the difference in the discount rate in measuring adjusted stockholders' equity as it is caused by market movements in interest rates that are not permanent and may not align with the cash flow we will ultimately incur when policy benefits are settled.

IPO coinsurance transactions adjustments relate to transactions in the first quarter of 2010, where we coinsured between 80% and 90% of our business that was in-force at year-end 2009 to entities then affiliated with Citigroup Inc. that were executed concurrent with our initial public offering (IPO). We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate within this block of business.

 

Management utilizes these non-GAAP financial measures in managing the business and believes they present relevant and meaningful analytical metrics for evaluating the ongoing business. Reconciliations of non-GAAP to GAAP financial measures are included in this financial supplement.

 

Certain items throughout this supplement may not add due to rounding and as such, may not agree to other public reporting of the respective item. Certain items throughout this supplement are noted as ‘na’ to indicate not applicable. Certain variances are noted as ‘nm’ to indicate not meaningful. Certain reclassifications have been made to prior-period amounts to conform to current-period reporting classifications. These reclassifications had no impact on net income or total stockholders’ equity.

3 of 18

 


 

 

Balance Sheets and Reconciliation of Balance Sheet Non-GAAP to GAAP Financial Measures

PRIMERICA, INC.

Financial Supplement

 

(Dollars in thousands)

Mar 31,
2023

 

Jun 30,
2023

 

Sep 30,
2023

 

Dec 31,
2023

 

Mar 31,
2024

 

Jun 30,
2024

 

Sep 30,
2024

Dec 31,
2024

Balance Sheets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments and cash excluding securities held to maturity

$

3,246,388

 

$

3,226,056

 

$

3,174,938

 

$

3,432,129

 

$

3,456,543

 

$

3,502,298

 

 

 

 

Securities held to maturity

 

1,460,000

 

 

1,433,520

 

 

1,417,460

 

 

1,386,980

 

 

1,376,400

 

 

1,353,370

 

 

 

 

 

 

Total investments and cash

 

4,706,388

 

 

4,659,576

 

 

4,592,398

 

 

4,819,109

 

 

4,832,943

 

 

4,855,668

 

 

 

 

Reinsurance recoverables

 

3,217,354

 

 

3,084,520

 

 

2,954,245

 

 

3,015,777

 

 

2,920,417

 

 

2,833,055

 

 

 

 

Deferred policy acquisition costs

 

3,250,753

 

 

3,319,844

 

 

3,374,627

 

 

3,447,234

 

 

3,503,940

 

 

3,566,126

 

 

 

 

Goodwill

 

127,707

 

 

127,707

 

 

127,707

 

 

127,707

 

 

127,707

 

 

 

 

 

 

Other assets

 

1,191,286

 

 

1,201,266

 

 

1,200,647

 

 

1,222,064

 

 

1,189,436

 

 

1,056,890

 

 

 

 

Separate account assets

 

2,329,968

 

 

2,358,823

 

 

2,183,435

 

 

2,395,842

 

 

2,334,911

 

 

2,253,966

 

 

 

 

 

 

Total assets

$

14,823,457

 

$

14,751,736

 

$

14,433,059

 

$

15,027,732

 

$

14,909,354

 

$

14,565,704

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Future policy benefits

$

6,561,624

 

$

6,491,564

 

$

6,045,151

 

$

6,742,025

 

$

6,548,050

 

$

6,436,332

 

 

 

 

Other policy liabilities

 

996,747

 

 

970,198

 

 

938,665

 

 

963,773

 

 

954,350

 

 

908,419

 

 

 

 

Income taxes

 

201,850

 

 

169,487

 

 

227,866

 

 

135,248

 

 

197,714

 

 

135,050

 

 

 

 

Other liabilities

 

659,734

 

 

642,149

 

 

636,927

 

 

644,792

 

 

641,836

 

 

672,058

 

 

 

 

Debt obligations

 

593,106

 

 

593,307

 

 

593,508

 

 

593,709

 

 

593,909

 

 

594,110

 

 

 

 

Surplus note

 

1,459,565

 

 

1,433,101

 

 

1,417,056

 

 

1,386,592

 

 

1,376,028

 

 

1,353,014

 

 

 

 

Payable under securities lending

 

74,452

 

 

77,643

 

 

77,956

 

 

99,785

 

 

76,648

 

 

90,995

 

 

 

 

Separate account liabilities

 

2,329,968

 

 

2,358,823

 

 

2,183,435

 

 

2,395,842

 

 

2,334,911

 

 

2,253,966

 

 

 

 

 

 

Total liabilities

 

12,877,046

 

 

12,736,272

 

 

12,120,564

 

 

12,961,765

 

 

12,723,446

 

 

12,443,945

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock ($0.01 par value) (1)

 

364

 

 

358

 

 

353

 

 

350

 

 

346

 

 

340

 

 

 

 

Paid-in capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retained earnings

 

2,177,428

 

 

2,190,223

 

 

2,215,378

 

 

2,276,947

 

 

2,285,937

 

 

2,122,832

 

 

 

 

Treasury stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated other comprehensive income (loss), net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gains (losses)

 

(208,157

)

 

(226,250

)

 

(269,604

)

 

(170,008

)

 

(181,537

)

 

(187,346

)

 

 

 

 

Effect of change in discount rate assumptions on the liability for future policy benefits

 

(11,966

)

 

55,386

 

 

377,637

 

 

(39,086

)

 

92,853

 

 

201,441

 

 

 

 

 

Cumulative translation adjustment

 

(11,259

)

 

(4,253

)

 

(11,269

)

 

(2,235

)

 

(11,691

)

 

(15,507

)

 

 

 

 

 

Total stockholders’ equity

 

1,946,411

 

 

2,015,464

 

 

2,312,495

 

 

2,065,967

 

 

2,185,908

 

 

2,121,759

 

 

 

 

 

 

Total liabilities and stockholders' equity

$

14,823,457

 

$

14,751,736

 

$

14,433,059

 

$

15,027,732

 

$

14,909,354

 

$

14,565,704

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Total Stockholders' Equity to Adjusted Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

$

1,946,411

 

$

2,015,464

 

$

2,312,495

 

$

2,065,967

 

$

2,185,908

 

$

2,121,759

 

 

 

 

Less: Net unrealized gains (losses)

 

(208,157

)

 

(226,250

)

 

(269,604

)

 

(170,008

)

 

(181,537

)

 

(187,346

)

 

 

 

Less: Effect of change in discount rate assumptions on the liability for future policy benefits

 

(11,966

)

 

55,386

 

 

377,637

 

 

(39,086

)

 

92,853

 

 

201,441

 

 

 

 

 

 

Adjusted stockholders’ equity

$

2,166,533

 

$

2,186,328

 

$

2,204,462

 

$

2,275,062

 

$

2,274,592

 

$

2,107,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Stockholders' Equity Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

$

2,141,707

 

$

2,166,533

 

$

2,186,328

 

$

2,204,462

 

$

2,275,062

 

$

2,274,592

 

 

 

 

Net Income

 

128,099

 

 

144,504

 

 

152,063

 

 

151,935

 

 

137,904

 

 

1,171

 

 

 

 

Shareholder dividends

 

(23,910

)

 

(23,598

)

 

(23,336

)

 

(22,870

)

 

(26,256

)

 

(25,835

)

 

 

 

Retirement of shares and warrants

 

(96,323

)

 

(112,606

)

 

(106,479

)

 

(72,886

)

 

(116,570

)

 

(142,744

)

 

 

 

Net foreign currency translation adjustment

 

1,020

 

 

7,005

 

 

(7,016

)

 

9,035

 

 

(9,456

)

 

(3,817

)

 

 

 

Other, net

 

15,941

 

 

4,490

 

 

2,902

 

 

5,386

 

 

13,909

 

 

4,297

 

 

 

Balance, end of period

$

2,166,533

 

$

2,186,328

 

$

2,204,462

 

$

2,275,062

 

$

2,274,592

 

$

2,107,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred Policy Acquisition Costs Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

$

3,188,502

 

$

3,250,753

 

$

3,319,844

 

$

3,374,627

 

$

3,447,234

 

$

3,503,940

 

 

 

 

General expenses deferred

 

10,777

 

 

10,692

 

 

10,764

 

 

9,910

 

 

11,156

 

 

11,235

 

 

 

 

Commission costs deferred

 

118,386

 

 

119,676

 

 

119,976

 

 

125,335

 

 

125,811

 

 

127,800

 

 

 

 

Amortization of deferred policy acquisition costs

 

(67,923

)

 

(68,110

)

 

(69,405

)

 

(70,378

)

 

(72,049

)

 

(73,643

)

 

 

 

Foreign currency impact and other, net

 

1,011

 

 

6,833

 

 

(6,551

)

 

7,739

 

 

(8,211

)

 

(3,207

)

 

 

Balance, end of period

$

3,250,753

 

$

3,319,844

 

$

3,374,627

 

$

3,447,234

 

$

3,503,940

 

$

3,566,126

 

 

 

 

(1)
Outstanding common shares exclude restricted stock units.

 

 

 

4 of 18

 


 

Financial Results and Other Statistical Data

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q2

 

 

 

 

 

YOY YTD

 

(Dollars in thousands, except per-share data)

Q1
2023

 

Q2
2023

 

Q3
2023

 

Q4
2023

 

Q1
2024

 

Q2
2024

 

Q3
2024

Q4
2024

$
Change

 

%
Change

 

YTD 2023

 

YTD 2024

 

$
Change

 

%
Change

 

Earnings per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares and fully vested equity awards

 

36,709,525

 

 

36,215,232

 

 

35,760,090

 

 

35,148,919

 

 

34,882,824

 

 

34,383,344

 

 

 

 

(1,831,888

)

 

-5.1

%

 

36,461,013

 

 

34,633,084

 

 

(1,827,929

)

 

-5.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

128,099

 

$

144,504

 

$

152,063

 

$

151,935

 

$

137,904

 

$

1,171

 

 

 

$

(143,334

)

 

-99.2

%

$

272,603

 

$

139,074

 

$

(133,529

)

 

-49.0

%

 

Less income attributable to unvested participating securities

 

(579

)

 

(609

)

 

(643

)

 

(648

)

 

(572

)

 

(96

)

 

 

 

513

 

 

84.2

%

 

(1,190

)

 

(547

)

 

643

 

 

54.1

%

 

 

Net income used in computing basic EPS

$

127,520

 

$

143,896

 

$

151,420

 

$

151,287

 

$

137,331

 

$

1,075

 

 

 

$

(142,821

)

 

-99.3

%

$

271,413

 

$

138,528

 

$

(132,885

)

 

-49.0

%

 

 

Basic earnings per share

$

3.47

 

$

3.97

 

$

4.23

 

$

4.30

 

$

3.94

 

$

0.03

 

 

 

$

(3.94

)

 

-99.2

%

$

7.44

 

$

4.00

 

$

(3.44

)

 

-46.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net operating income

$

131,883

 

$

145,407

 

$

153,804

 

$

150,354

 

$

137,005

 

$

162,746

 

 

 

$

17,339

 

 

11.9

%

$

277,290

 

$

299,751

 

$

22,460

 

 

8.1

%

 

Less operating income attributable to unvested participating securities

 

(596

)

 

(612

)

 

(650

)

 

(642

)

 

(569

)

 

(604

)

 

 

 

9

 

 

1.5

%

 

(1,210

)

 

(1,178

)

 

32

 

 

2.6

%

 

 

Adjusted net operating income used in computing basic operating EPS

$

131,288

 

$

144,794

 

$

153,154

 

$

149,713

 

$

136,436

 

$

162,142

 

 

 

$

17,348

 

 

12.0

%

$

276,080

 

$

298,572

 

$

22,492

 

 

8.1

%

 

 

Basic adjusted operating income per share

$

3.58

 

$

4.00

 

$

4.28

 

$

4.26

 

$

3.91

 

$

4.72

 

 

 

$

0.72

 

 

18.0

%

$

7.57

 

$

8.62

 

$

1.05

 

 

13.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares and fully vested equity awards

 

36,709,525

 

 

36,215,232

 

 

35,760,090

 

 

35,148,919

 

 

34,882,824

 

 

34,383,344

 

 

 

 

(1,831,888

)

 

-5.1

%

 

36,461,013

 

 

34,633,084

 

 

(1,827,929

)

 

-5.0

%

 

Dilutive impact of contingently issuable shares

 

94,123

 

 

74,712

 

 

62,182

 

 

59,473

 

 

53,938

 

 

56,591

 

 

 

 

(18,121

)

 

-24.3

%

 

84,418

 

 

55,265

 

 

(29,153

)

 

-34.5

%

 

 

Shares used to calculate diluted EPS

 

36,803,648

 

 

36,289,944

 

 

35,822,272

 

 

35,208,392

 

 

34,936,762

 

 

34,439,935

 

 

 

 

(1,850,009

)

 

-5.1

%

 

36,545,431

 

 

34,688,349

 

 

(1,857,082

)

 

-5.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

128,099

 

$

144,504

 

$

152,063

 

$

151,935

 

$

137,904

 

$

1,171

 

 

 

$

(143,334

)

 

-99.2

%

$

272,603

 

$

139,074

 

$

(133,529

)

 

-49.0

%

 

Less income attributable to unvested participating securities

 

(577

)

 

(608

)

 

(642

)

 

(647

)

 

(572

)

 

(96

)

 

 

 

512

 

 

84.2

%

 

(1,188

)

 

(546

)

 

641

 

 

54.0

%

 

 

Net income used in computing diluted EPS

$

127,521

 

$

143,897

 

$

151,421

 

$

151,288

 

$

137,332

 

$

1,075

 

 

 

$

(142,822

)

 

-99.3

%

$

271,415

 

$

138,528

 

$

(132,887

)

 

-49.0

%

 

 

Diluted earnings per share

$

3.46

 

$

3.97

 

$

4.23

 

$

4.30

 

$

3.93

 

$

0.03

 

 

 

$

(3.94

)

 

-99.2

%

$

7.43

 

$

3.99

 

$

(3.44

)

 

-46.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net operating income

$

131,883

 

$

145,407

 

$

153,804

 

$

150,354

 

$

137,005

 

$

162,746

 

 

 

$

17,339

 

 

11.9

%

$

277,290

 

$

299,751

 

$

22,460

 

 

8.1

%

 

Less operating income attributable to unvested participating securities

 

(595

)

 

(611

)

 

(649

)

 

(641

)

 

(568

)

 

(603

)

 

 

 

9

 

 

1.4

%

 

(1,208

)

 

(1,177

)

 

31

 

 

2.6

%

 

 

Adjusted net operating income used in computing diluted operating EPS

$

131,289

 

$

144,795

 

$

153,155

 

$

149,714

 

$

136,437

 

$

162,143

 

 

 

$

17,348

 

 

12.0

%

$

276,082

 

$

298,574

 

$

22,492

 

 

8.1

%

 

 

Diluted adjusted operating income per share

$

3.57

 

$

3.99

 

$

4.28

 

$

4.25

 

$

3.91

 

$

4.71

 

 

 

$

0.72

 

 

18.0

%

$

7.55

 

$

8.61

 

$

1.06

 

 

14.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average stockholders' equity

$

1,988,832

 

$

1,980,938

 

$

2,163,980

 

$

2,189,231

 

$

2,125,938

 

$

2,153,834

 

 

 

$

172,896

 

 

8.7

%

$

1,984,885

 

$

2,139,886

 

$

155,001

 

 

7.8

%

 

Average adjusted stockholders' equity

$

2,154,120

 

$

2,176,431

 

$

2,195,395

 

$

2,239,762

 

$

2,274,827

 

$

2,191,128

 

 

 

$

14,698

 

 

0.7

%

$

2,165,275

 

$

2,232,978

 

$

67,702

 

 

3.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income return on stockholders' equity

 

25.8

%

 

29.2

%

 

28.1

%

 

27.8

%

 

25.9

%

 

0.2

%

 

 

 

-29.0

%

nm

 

 

27.5

%

 

13.0

%

 

-14.5

%

nm

 

 

Net income return on adjusted stockholders' equity

 

23.8

%

 

26.6

%

 

27.7

%

 

27.1

%

 

24.2

%

 

0.2

%

 

 

 

-26.3

%

nm

 

 

25.2

%

 

12.5

%

 

-12.7

%

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net operating income return on adjusted stockholders' equity

 

24.5

%

 

26.7

%

 

28.0

%

 

26.9

%

 

24.1

%

 

29.7

%

 

 

 

3.0

%

nm

 

 

25.6

%

 

26.8

%

 

1.2

%

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Structure

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt-to-capital (1)

 

23.4

%

 

22.7

%

 

20.4

%

 

22.3

%

 

21.4

%

 

21.9

%

 

 

 

-0.9

%

nm

 

 

22.7

%

 

21.9

%

 

-0.9

%

nm

 

 

Debt-to-capital, excluding AOCI (1)

 

21.4

%

 

21.3

%

 

21.1

%

 

20.7

%

 

20.6

%

 

21.9

%

 

 

 

0.6

%

nm

 

 

21.3

%

 

21.9

%

 

0.6

%

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and invested assets to stockholders' equity

 

2.4

x

 

2.3

x

 

2.0

x

 

2.3

x

 

2.2

x

 

2.3

x

 

 

 

(0.0

x)

nm

 

 

2.3

x

 

2.3

x

 

(0.0

x)

nm

 

 

Cash and invested assets to adjusted stockholders' equity

 

2.2

x

 

2.1

x

 

2.1

x

 

2.1

x

 

2.1

x

 

2.3

x

 

 

 

0.2

x

nm

 

 

2.1

x

 

2.3

x

 

0.2

x

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share count, end of period (2)

 

36,407,876

 

 

35,845,525

 

 

35,342,474

 

 

34,995,613

 

 

34,609,005

 

 

33,993,897

 

 

 

 

(1,851,628

)

 

-5.2

%

 

35,845,525

 

 

33,993,897

 

 

(1,851,628

)

 

-5.2

%

 

Adjusted stockholders' equity per share

$

59.51

 

$

60.99

 

$

62.37

 

$

65.01

 

$

65.72

 

$

62.00

 

 

 

$

1.01

 

 

1.7

%

$

60.99

 

$

62.00

 

$

1.01

 

 

1.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Strength Ratings - Primerica Life Insurance Co

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Moody's

A1

 

A1

 

A1

 

A1

 

A1

 

A1

 

 

 

na

 

na

 

na

 

na

 

na

 

na

 

 

S&P

AA-

 

AA-

 

AA-

 

AA-

 

AA-

 

AA-

 

 

 

na

 

na

 

na

 

na

 

na

 

na

 

 

A.M. Best

A+

 

A+

 

A+

 

A+

 

A+

 

A+

 

 

 

na

 

na

 

na

 

na

 

na

 

na

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Holding Company Senior Debt Ratings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Moody's

Baa1

 

Baa1

 

Baa1

 

Baa1

 

Baa1

 

Baa1

 

 

 

na

 

na

 

na

 

na

 

na

 

na

 

 

S&P

A-

 

A-

 

A-

 

A-

 

A-

 

A-

 

 

 

na

 

na

 

na

 

na

 

na

 

na

 

 

A.M. Best

a-

 

a-

 

a-

 

a-

 

a-

 

a-

 

 

 

na

 

na

 

na

 

na

 

na

 

na

 

 

 

 

 

(1)
Debt-to-capital is that of the parent company only. Capital in the debt-to-capital ratio includes stockholders' equity and the note payable.
(2)
Share count reflects outstanding common shares, which excludes restricted stock units (RSUs).

 

 

 

 

5 of 18

 


 

Statements of Income

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q2

 

 

 

 

 

YOY YTD

 

(Dollars in thousands)

Q1
2023

 

Q2
2023

 

Q3
2023

 

Q4
2023

 

Q1
2024

 

Q2
2024

 

Q3
2024

Q4
2024

$
Change

 

%
Change

 

YTD 2023

 

YTD 2024

 

$
Change

 

%
Change

 

Statements of Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct premiums

$

817,872

 

$

828,296

 

$

831,681

 

$

834,275

 

$

841,046

 

$

845,358

 

 

 

$

17,062

 

 

2.1

%

$

1,646,169

 

$

1,686,404

 

$

40,236

 

 

2.4

%

 

Ceded premiums

 

(405,347

)

 

(425,266

)

 

(411,015

)

 

(410,182

)

 

(409,764

)

 

(427,561

)

 

 

 

(2,295

)

 

-0.5

%

 

(830,613

)

 

(837,325

)

 

(6,712

)

 

-0.8

%

 

 

Net premiums

 

412,525

 

 

403,030

 

 

420,666

 

 

424,093

 

 

431,283

 

 

417,797

 

 

 

 

14,767

 

 

3.7

%

 

815,555

 

 

849,079

 

 

33,524

 

 

4.1

%

 

Net investment income

 

31,065

 

 

32,398

 

 

34,730

 

 

37,644

 

 

37,806

 

 

38,452

 

 

 

 

6,054

 

 

18.7

%

 

63,462

 

 

76,258

 

 

12,796

 

 

20.2

%

 

Commissions and fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales-based (1)

 

72,388

 

 

74,958

 

 

72,996

 

 

76,274

 

 

88,746

 

 

101,178

 

 

 

 

26,220

 

 

35.0

%

 

147,346

 

 

189,924

 

 

42,577

 

 

28.9

%

 

 

Asset-based (2)

 

111,904

 

 

113,335

 

 

119,413

 

 

118,303

 

 

128,532

 

 

132,765

 

 

 

 

19,430

 

 

17.1

%

 

225,239

 

 

261,297

 

 

36,058

 

 

16.0

%

 

 

Account-based (3)

 

22,790

 

 

23,095

 

 

23,344

 

 

23,960

 

 

23,180

 

 

23,740

 

 

 

 

644

 

 

2.8

%

 

45,886

 

 

46,919

 

 

1,034

 

 

2.3

%

 

 

Other commissions and fees

 

24,464

 

 

21,742

 

 

23,149

 

 

28,300

 

 

14,563

 

 

22,087

 

 

 

 

345

 

 

1.6

%

 

46,206

 

 

36,650

 

 

(9,556

)

 

-20.7

%

 

Investment (losses) gains

 

(4,608

)

 

(328

)

 

(1,795

)

 

835

 

 

1,305

 

 

(99

)

 

 

 

228

 

nm

 

 

(4,936

)

 

1,206

 

 

6,142

 

nm

 

 

Other, net

 

19,508

 

 

20,155

 

 

18,429

 

 

16,929

 

 

17,415

 

 

67,457

 

 

 

 

47,302

 

nm

 

 

39,663

 

 

84,871

 

 

45,208

 

 

114.0

%

 

                  Total revenues

 

690,036

 

 

688,385

 

 

710,932

 

 

726,338

 

 

742,829

 

 

803,375

 

 

 

 

114,990

 

 

16.7

%

 

1,378,422

 

 

1,546,205

 

 

167,783

 

 

12.2

%

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and claims

 

163,267

 

 

148,911

 

 

162,062

 

 

168,739

 

 

166,321

 

 

150,030

 

 

 

 

1,118

 

 

0.8

%

 

312,179

 

 

316,351

 

 

4,172

 

 

1.3

%

 

Future policy benefits remeasurement (gain)/loss

 

559

 

 

(1,867

)

 

179

 

 

746

 

 

55

 

 

(4,329

)

 

 

 

(2,463

)

 

-131.9

%

 

(1,308

)

 

(4,274

)

 

(2,966

)

nm

 

 

Amortization of DAC

 

67,923

 

 

68,110

 

 

69,405

 

 

70,378

 

 

72,049

 

 

73,643

 

 

 

 

5,533

 

 

8.1

%

 

136,033

 

 

145,692

 

 

9,659

 

 

7.1

%

 

Insurance commissions

 

8,138

 

 

9,142

 

 

7,911

 

 

9,030

 

 

9,634

 

 

7,399

 

 

 

 

(1,743

)

 

-19.1

%

 

17,281

 

 

17,033

 

 

(248

)

 

-1.4

%

 

Insurance expenses

 

61,125

 

 

59,093

 

 

57,821

 

 

57,420

 

 

63,149

 

 

62,685

 

 

 

 

3,591

 

 

6.1

%

 

120,219

 

 

125,834

 

 

5,615

 

 

4.7

%

 

Sales commissions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales-based (1)

 

52,452

 

 

53,630

 

 

52,343

 

 

54,057

 

 

62,814

 

 

70,509

 

 

 

 

16,878

 

 

31.5

%

 

106,082

 

 

133,322

 

 

27,240

 

 

25.7

%

 

 

Asset-based (2)

 

54,276

 

 

55,085

 

 

58,793

 

 

58,388

 

 

64,208

 

 

66,525

 

 

 

 

11,440

 

 

20.8

%

 

109,361

 

 

130,733

 

 

21,372

 

 

19.5

%

 

 

Other sales commissions

 

4,147

 

 

4,907

 

 

5,064

 

 

4,303

 

 

4,117

 

 

5,120

 

 

 

 

213

 

 

4.3

%

 

9,054

 

 

9,237

 

 

183

 

 

2.0

%

 

Interest expense

 

6,690

 

 

6,686

 

 

6,632

 

 

6,586

 

 

6,771

 

 

6,099

 

 

 

 

(587

)

 

-8.8

%

 

13,376

 

 

12,870

 

 

(505

)

 

-3.8

%

 

Contract acquistion costs (4)

 

14,984

 

 

12,602

 

 

12,568

 

 

15,079

 

 

13,533

 

 

15,724

 

 

 

 

3,122

 

 

24.8

%

 

27,586

 

 

29,257

 

 

1,671

 

 

6.1

%

 

Other operating expenses

 

89,534

 

 

83,189

 

 

79,354

 

 

84,572

 

 

100,943

 

 

88,567

 

 

 

 

5,378

 

 

6.5

%

 

172,723

 

 

189,510

 

 

16,787

 

 

9.7

%

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

#DIV/0!

 

 

 

 

 

 

 

#DIV/0!

 

 

                  Total benefits and expenses

 

523,095

 

 

499,489

 

 

512,131

 

 

529,297

 

 

563,594

 

 

795,578

 

 

 

 

296,089

 

 

59.3

%

 

1,022,584

 

 

1,359,172

 

 

336,588

 

 

32.9

%

 

 Income before income taxes

 

166,942

 

 

188,896

 

 

198,801

 

 

197,041

 

 

179,236

 

 

7,797

 

 

 

 

(181,099

)

 

-95.9

%

 

355,838

 

 

187,033

 

 

(168,805

)

 

-47.4

%

 

 

Income taxes

 

38,843

 

 

44,392

 

 

46,738

 

 

45,106

 

 

41,332

 

 

6,626

 

 

 

 

(37,765

)

 

-85.1

%

 

83,235

 

 

47,958

 

 

(35,277

)

 

-42.4

%

 

 

 

Net Income

$

128,099

 

$

144,504

 

$

152,063

 

$

151,935

 

$

137,904

 

$

1,171

 

 

 

$

(143,334

)

 

-99.2

%

$

272,603

 

$

139,074

 

$

(133,529

)

 

-49.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes by Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Life Insurance

$

130,540

 

$

140,115

 

$

141,223

 

$

140,285

 

$

138,367

 

$

147,780

 

 

 

$

7,665

 

 

5.5

%

$

270,655

 

$

286,147

 

$

15,493

 

 

5.7

%

Investment & Savings Products

 

56,107

 

 

59,583

 

 

64,374

 

 

62,763

 

 

65,563

 

 

74,783

 

 

 

 

15,200

 

 

25.5

%

 

115,691

 

 

140,346

 

 

24,655

 

 

21.3

%

Senior Health

 

(3,762

)

 

(6,033

)

 

(7,583

)

 

(2,681

)

 

(14,153

)

 

(264,972

)

 

 

 

(258,939

)

nm

 

 

(9,795

)

 

(279,125

)

 

(269,330

)

nm

 

Corporate & Other Distributed Products

 

(15,944

)

 

(4,769

)

 

787

 

 

(3,327

)

 

(10,542

)

 

50,206

 

 

 

 

54,975

 

nm

 

 

(20,713

)

 

39,664

 

 

60,377

 

nm

 

 

Income before income taxes

$

166,942

 

$

188,896

 

$

198,801

 

$

197,041

 

$

179,236

 

$

7,797

 

 

 

$

(181,099

)

 

-95.9

%

$

355,838

 

$

187,033

 

$

(168,805

)

 

-47.4

%

 

(1)
Sales-based - revenues or commission expenses relating to the sales of mutual funds and variable annuities.
(2)
Asset-based - revenues or commission expenses relating to the value of assets in client accounts for which we earn ongoing service, distribution, and other fees.
(3)
Account-based - revenues relating to the fee generating client accounts we administer.
(4)
Contract acquisition costs (CAC) - Includes direct marketing costs incurred to acquire Senior Health product leads through internal and external sources, including commissions paid to Primerica representatives, as well as Senior Health agent compensation, training and licensing costs.

 

6 of 18

 


 

 

Reconciliation of Statement of Income GAAP to Non-GAAP Financial Measures

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q2

 

 

 

 

 

YOY YTD

 

(Dollars in thousands)

Q1
2023

 

Q2
2023

 

Q3
2023

 

Q4
2023

 

Q1
2024

 

Q2
2024

 

Q3
2024

Q4
2024

$
Change

 

%
Change

 

YTD 2023

 

YTD 2024

 

$
Change

 

%
Change

 

Reconciliation from Term Life Insurance Direct Premiums to Term Life Insurance Adjusted Direct Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Life Insurance direct premiums

$

812,880

 

$

823,297

 

$

826,665

 

$

829,918

 

$

836,321

 

$

840,668

 

 

 

$

17,371

 

 

2.1

%

$

1,636,177

 

$

1,676,989

 

$

40,812

 

 

2.5

%

 

Less: Premiums ceded to IPO Coinsurers

 

220,240

 

 

216,740

 

 

212,951

 

 

210,310

 

 

206,502

 

 

201,566

 

 

 

 

(15,174

)

 

-7.0

%

 

436,980

 

 

408,068

 

 

(28,912

)

 

-6.6

%

 

Term Life Insurance adjusted direct premiums

$

592,640

 

$

606,557

 

$

613,714

 

$

619,608

 

$

629,819

 

$

639,102

 

 

 

$

32,545

 

 

5.4

%

$

1,199,197

 

$

1,268,921

 

$

69,724

 

 

5.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Term Life Insurance Ceded Premiums to Term Life Insurance Other Ceded Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Life Insurance ceded premiums

$

(404,044

)

$

(423,704

)

$

(409,801

)

$

(410,456

)

$

(408,558

)

$

(426,348

)

 

 

$

(2,644

)

 

-0.6

%

$

(827,747

)

$

(834,906

)

$

(7,159

)

 

-0.9

%

 

Less: Premiums ceded to IPO Coinsurers

 

(220,240

)

 

(216,740

)

 

(212,951

)

 

(210,310

)

 

(206,502

)

 

(201,566

)

 

 

 

15,174

 

 

7.0

%

 

(436,980

)

 

(408,068

)

 

28,912

 

 

6.6

%

 

Term Life Insurance other ceded premiums

$

(183,804

)

$

(206,964

)

$

(196,849

)

$

(200,146

)

$

(202,056

)

$

(224,782

)

 

 

$

(17,818

)

 

-8.6

%

$

(390,767

)

$

(426,838

)

$

(36,071

)

 

-9.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Investment Income to Adjusted Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

$

31,065

 

$

32,398

 

$

34,730

 

$

37,644

 

$

37,806

 

$

38,452

 

 

 

$

6,054

 

 

18.7

%

$

63,462

 

$

76,258

 

$

12,796

 

 

20.2

%

 

Less: MTM investment adjustments

 

(327

)

 

(852

)

 

(481

)

 

1,215

 

 

(137

)

 

189

 

 

 

nm

 

nm

 

 

(1,179

)

 

52

 

nm

 

nm

 

 

Adjusted net investment income

$

31,392

 

$

33,250

 

$

35,212

 

$

36,429

 

$

37,943

 

$

38,263

 

 

 

$

5,013

 

 

15.1

%

$

64,642

 

$

76,206

 

$

11,564

 

 

17.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Other Operating Expenses to Adjusted other operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other operating expenses

$

89,534

 

$

83,189

 

$

79,354

 

$

84,572

 

$

100,943

 

$

88,567

 

 

 

$

5,378

 

 

6.5

%

$

172,723

 

$

189,510

 

$

16,787

 

 

9.7

%

 

Less: Restructuring costs

 

 

 

 

 

 

 

 

 

 

 

824

 

 

 

nm

 

nm

 

 

 

 

824

 

nm

 

nm

 

 

Adjusted other operating expenses

$

89,534

 

$

83,189

 

$

79,354

 

$

84,572

 

$

100,943

 

$

87,743

 

 

 

$

4,554

 

 

5.5

%

$

172,723

 

$

188,686

 

$

15,963

 

 

9.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Total Revenues to Adjusted Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

$

690,036

 

$

688,385

 

$

710,932

 

$

726,338

 

$

742,829

 

$

803,375

 

 

 

$

114,990

 

 

16.7

%

$

1,378,422

 

$

1,546,205

 

$

167,783

 

 

12.2

%

 

Less: Investment (losses) gains

 

(4,608

)

 

(328

)

 

(1,795

)

 

835

 

 

1,305

 

 

(99

)

 

 

nm

 

nm

 

 

(4,936

)

 

1,206

 

nm

 

nm

 

 

Less: MTM investment adjustments

 

(327

)

 

(852

)

 

(481

)

 

1,215

 

 

(137

)

 

189

 

 

 

nm

 

nm

 

 

(1,179

)

 

52

 

nm

 

nm

 

 

Less: Insurance claim proceeds

 

 

 

 

 

 

 

 

 

 

 

50,000

 

 

 

nm

 

nm

 

 

 

 

50,000

 

nm

 

nm

 

 

Adjusted operating revenues

$

694,972

 

$

689,565

 

$

713,208

 

$

724,288

 

$

741,661

 

$

753,285

 

 

 

$

63,720

 

 

9.2

%

$

1,384,537

 

$

1,494,946

 

$

110,410

 

 

8.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Income Before Income Taxes to Adjusted Operating Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

$

166,942

 

$

188,896

 

$

198,801

 

$

197,041

 

$

179,236

 

$

7,797

 

 

 

$

(181,099

)

 

-95.9

%

$

355,838

 

$

187,033

 

$

(168,805

)

 

-47.4

%

 

Less: Investment (losses) gains

 

(4,608

)

 

(328

)

 

(1,795

)

 

835

 

 

1,305

 

 

(99

)

 

 

nm

 

nm

 

 

(4,936

)

 

1,206

 

nm

 

nm

 

 

Less: MTM investment adjustments

 

(327

)

 

(852

)

 

(481

)

 

1,215

 

 

(137

)

 

189

 

 

 

nm

 

nm

 

 

(1,179

)

 

52

 

nm

 

nm

 

 

Less: Insurance claim proceeds

 

 

 

 

 

 

 

 

 

 

 

50,000

 

 

 

nm

 

nm

 

 

 

 

50,000

 

nm

 

nm

 

 

Less: Restructuring costs

 

 

 

 

 

 

 

 

 

 

 

(824

)

 

 

nm

 

nm

 

 

 

 

(824

)

nm

 

nm

 

 

Less: Impairment of goodwill

 

 

 

 

 

 

 

 

 

 

 

(127,707

)

 

 

nm

 

nm

 

 

 

 

(127,707

)

nm

 

nm

 

 

Less: Impairment of other long-lived assets

 

 

 

 

 

 

 

 

 

 

 

(125,900

)

 

 

nm

 

nm

 

 

 

 

(125,900

)

nm

 

nm

 

 

Adjusted operating income before income taxes

$

171,877

 

$

190,076

 

$

201,077

 

$

194,991

 

$

178,067

 

$

212,138

 

 

 

$

22,063

 

 

11.6

%

$

361,953

 

$

390,205

 

$

28,253

 

 

7.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Income to Adjusted Net Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

128,099

 

$

144,504

 

$

152,063

 

$

151,935

 

$

137,904

 

$

1,171

 

 

 

$

(143,334

)

 

-99.2

%

$

272,603

 

$

139,074

 

$

(133,529

)

 

-49.0

%

 

Less: Investment (losses) gains

 

(4,608

)

 

(328

)

 

(1,795

)

 

835

 

 

1,305

 

 

(99

)

 

 

nm

 

nm

 

 

(4,936

)

 

1,206

 

nm

 

nm

 

 

Less: MTM investment adjustments

 

(327

)

 

(852

)

 

(481

)

 

1,215

 

 

(137

)

 

189

 

 

 

nm

 

nm

 

 

(1,179

)

 

52

 

nm

 

nm

 

 

Less: Insurance claim proceeds

 

 

 

 

 

 

 

 

 

 

 

50,000

 

 

 

nm

 

nm

 

 

 

 

50,000

 

nm

 

nm

 

 

Less: Restructuring costs

 

 

 

 

 

 

 

 

 

 

 

(824

)

 

 

nm

 

nm

 

 

 

 

(824

)

nm

 

nm

 

 

Less: Impairment of goodwill

 

 

 

 

 

 

 

 

 

 

 

(127,707

)

 

 

nm

 

nm

 

 

 

 

(127,707

)

nm

 

nm

 

 

Less: Tax impact of preceding items

 

1,151

 

 

277

 

 

535

 

 

(469

)

 

(269

)

 

18,720

 

 

 

nm

 

nm

 

 

1,428

 

 

18,451

 

nm

 

nm

 

 

Less: Impairment of other long-lived assets

 

 

 

 

 

 

 

 

 

 

 

(125,900

)

 

 

nm

 

nm

 

 

 

 

(125,900

)

nm

 

nm

 

 

Less: Deferred tax benefit of preceding item

 

 

 

 

 

 

 

 

 

 

 

35,126

 

 

 

nm

 

nm

 

 

 

 

35,126

 

nm

 

nm

 

 

Less: Valuation allowance on Senior Health NOLs

 

 

 

 

 

 

 

 

 

 

 

(11,080

)

 

 

nm

 

nm

 

 

 

 

(11,080

)

nm

 

nm

 

 

Adjusted net operating income

$

131,883

 

$

145,407

 

$

153,804

 

$

150,354

 

$

137,005

 

$

162,746

 

 

 

$

17,339

 

 

11.9

%

$

277,290

 

$

299,751

 

$

22,460

 

 

8.1

%

 

 

 

 

 

 

 

 

 

 

 

 

7 of 18

 


 

Reconciliation of Statement of Income GAAP to Non-GAAP Financial Measures

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q2

 

 

 

 

 

YOY YTD

 

(Dollars in thousands)

Q1
2023

 

Q2
2023

 

Q3
2023

 

Q4
2023

 

Q1
2024

 

Q2
2024

 

Q3
2024

Q4
2024

$
Change

 

%
Change

 

YTD 2023

 

YTD 2024

 

$
Change

 

%
Change

 

Reconciliation from Senior Health Income Before Income Taxes to Senior Health Adjusted Operating Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

$

(3,762

)

$

(6,033

)

$

(7,583

)

$

(2,681

)

$

(14,153

)

$

(264,972

)

 

 

$

(258,939

)

nm

 

$

(9,795

)

$

(279,125

)

$

(269,330

)

nm

 

 

Less: Impairment of goodwill

 

 

 

 

 

 

 

 

 

 

 

(127,707

)

 

 

nm

 

nm

 

 

 

 

(127,707

)

nm

 

nm

 

 

Less: Impairment of other long-lived assets

 

 

 

 

 

 

 

 

 

 

 

(125,900

)

 

 

nm

 

nm

 

 

 

 

(125,900

)

nm

 

nm

 

 

Adjusted operating income before income taxes

$

(3,762

)

$

(6,033

)

$

(7,583

)

$

(2,681

)

$

(14,153

)

$

(11,365

)

 

 

$

(5,332

)

 

-88.4

%

$

(9,795

)

$

(25,518

)

$

(15,723

)

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from C&O Income Before Income Taxes to C&O Adjusted Operating Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

$

(15,944

)

$

(4,769

)

$

787

 

$

(3,327

)

$

(10,542

)

$

50,206

 

 

 

$

54,975

 

nm

 

$

(20,713

)

$

39,664

 

$

60,377

 

nm

 

 

Less: Investment (losses) gains

 

(4,608

)

 

(328

)

 

(1,795

)

 

835

 

 

1,305

 

 

(99

)

 

 

nm

 

nm

 

 

(4,936

)

 

1,206

 

nm

 

nm

 

 

Less: MTM investment adjustments

 

(327

)

 

(852

)

 

(481

)

 

1,215

 

 

(137

)

 

189

 

 

 

nm

 

nm

 

 

(1,179

)

 

52

 

nm

 

nm

 

 

Less: Insurance claim proceeds

 

 

 

 

 

 

 

 

 

 

 

50,000

 

 

 

nm

 

nm

 

 

 

 

50,000

 

nm

 

nm

 

 

Less: Restructuring costs

 

 

 

 

 

 

 

 

 

 

 

(824

)

 

 

nm

 

nm

 

 

 

 

(824

)

nm

 

nm

 

 

Adjusted operating income before income taxes

$

(11,008

)

$

(3,589

)

$

3,063

 

$

(5,377

)

$

(11,710

)

$

940

 

 

 

$

4,530

 

 

126.2

%

$

(14,598

)

$

(10,770

)

$

3,828

 

 

26.2

%

 

 

 

 

 

 

 

 

 

 

 

8 of 18

 


 

Term Life Insurance - Financial Results and Analysis

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q2

 

 

 

 

 

YOY YTD

 

(Dollars in thousands)

Q1
2023

 

Q2
2023

 

Q3
2023

 

Q4
2023

 

Q1
2024

 

Q2
2024

 

Q3
2024

Q4
2024

$
Change

 

%
Change

 

YTD 2023

 

YTD 2024

 

$
Change

 

%
Change

 

Term Life Insurance Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct Premiums

$

812,880

 

$

823,297

 

$

826,665

 

$

829,918

 

$

836,321

 

$

840,668

 

 

 

$

17,371

 

 

2.1

%

$

1,636,177

 

$

1,676,989

 

$

40,812

 

 

2.5

%

 

Premiums ceded to IPO coinsurers (1)

 

(220,240

)

 

(216,740

)

 

(212,951

)

 

(210,310

)

 

(206,502

)

 

(201,566

)

 

 

 

15,174

 

 

7.0

%

 

(436,980

)

 

(408,068

)

 

28,912

 

 

6.6

%

 

Adjusted direct premiums (2)

 

592,640

 

 

606,557

 

 

613,714

 

 

619,608

 

 

629,819

 

 

639,102

 

 

 

 

32,545

 

 

5.4

%

 

1,199,197

 

 

1,268,921

 

 

69,724

 

 

5.8

%

 

Other ceded premiums (3)

 

(183,804

)

 

(206,964

)

 

(196,849

)

 

(200,146

)

 

(202,056

)

 

(224,782

)

 

 

 

(17,818

)

 

-8.6

%

 

(390,767

)

 

(426,838

)

 

(36,071

)

 

-9.2

%

 

Net premiums

 

408,836

 

 

399,594

 

 

416,864

 

 

419,462

 

 

427,762

 

 

414,320

 

 

 

 

14,727

 

 

3.7

%

 

808,430

 

 

842,083

 

 

33,653

 

 

4.2

%

 

Other, net

 

12,233

 

 

12,280

 

 

11,909

 

 

11,865

 

 

12,649

 

 

12,624

 

 

 

 

345

 

 

2.8

%

 

24,513

 

 

25,274

 

 

761

 

 

3.1

%

 

Revenues

 

421,069

 

 

411,873

 

 

428,773

 

 

431,327

 

 

440,412

 

 

426,944

 

 

 

 

15,071

 

 

3.7

%

 

832,942

 

 

867,356

 

 

34,414

 

 

4.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and claims

 

158,940

 

 

143,855

 

 

158,508

 

 

160,782

 

 

163,847

 

 

146,268

 

 

 

 

2,413

 

 

1.7

%

 

302,795

 

 

310,115

 

 

7,320

 

 

2.4

%

 

Future policy benefits remeasurement (gain)/loss

 

1,035

 

 

(1,312

)

 

251

 

 

(187

)

 

(319

)

 

(4,280

)

 

 

 

(2,968

)

nm

 

 

(277

)

 

(4,599

)

 

(4,322

)

nm

 

 

Amortization of DAC

 

66,068

 

 

66,004

 

 

67,720

 

 

69,012

 

 

70,491

 

 

71,916

 

 

 

 

5,912

 

 

9.0

%

 

132,072

 

 

142,407

 

 

10,335

 

 

7.8

%

 

Insurance commissions

 

4,590

 

 

5,496

 

 

4,373

 

 

5,356

 

 

6,047

 

 

3,785

 

 

 

 

(1,710

)

 

-31.1

%

 

10,086

 

 

9,833

 

 

(253

)

 

-2.5

%

 

Insurance expenses

 

59,896

 

 

57,717

 

 

56,698

 

 

56,080

 

 

61,979

 

 

61,476

 

 

 

 

3,759

 

 

6.5

%

 

117,613

 

 

123,454

 

 

5,842

 

 

5.0

%

 

Benefits and expenses

 

290,529

 

 

271,759

 

 

287,549

 

 

291,042

 

 

302,044

 

 

279,164

 

 

 

 

7,406

 

 

2.7

%

 

562,288

 

 

581,209

 

 

18,921

 

 

3.4

%

 

Income before income taxes

$

130,540

 

$

140,115

 

$

141,224

 

$

140,285

 

$

138,367

 

$

147,780

 

 

 

$

7,665

 

 

5.5

%

$

270,655

 

$

286,147

 

$

15,493

 

 

5.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Term Life Insurance - Financial Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Post-IPO direct premiums (4)

$

477,227

 

$

489,826

 

$

495,769

 

$

499,965

 

$

508,687

 

$

517,691

 

 

 

$

27,865

 

 

5.7

%

$

967,054

 

$

1,026,378

 

$

59,324

 

 

6.1

%

 

Pre-IPO direct premiums (5)

 

335,652

 

 

333,471

 

 

330,896

 

 

329,953

 

 

327,634

 

 

322,977

 

 

 

 

(10,494

)

 

-3.1

%

 

669,123

 

 

650,611

 

 

(18,512

)

 

-2.8

%

 

Total direct premiums

$

812,880

 

$

823,297

 

$

826,665

 

$

829,918

 

$

836,321

 

$

840,668

 

 

 

$

17,371

 

 

2.1

%

$

1,636,177

 

$

1,676,989

 

$

40,812

 

 

2.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums ceded to IPO coinsurers

$

220,240

 

$

216,740

 

$

212,951

 

$

210,310

 

$

206,502

 

$

201,566

 

 

 

$

(15,174

)

 

-7.0

%

$

436,980

 

$

408,068

 

$

(28,912

)

 

-6.6

%

 

% of Pre-IPO direct premiums

 

65.6

%

 

65.0

%

 

64.4

%

 

63.7

%

 

63.0

%

 

62.4

%

 

 

nm

 

nm

 

 

65.3

%

 

62.7

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and claims, net (6)

$

343,779

 

$

349,506

 

$

355,608

 

$

360,741

 

$

365,584

 

$

366,770

 

 

 

$

17,264

 

 

4.9

%

$

693,285

 

$

732,353

 

$

39,068

 

 

5.6

%

 

% of adjusted direct premiums

 

58.0

%

 

57.6

%

 

57.9

%

 

58.2

%

 

58.0

%

 

57.4

%

 

 

nm

 

nm

 

 

57.8

%

 

57.7

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DAC amortization & insurance commissions

$

70,657

 

$

71,500

 

$

72,093

 

$

74,367

 

$

76,538

 

$

75,701

 

 

 

$

4,201

 

 

5.9

%

$

142,157

 

$

152,239

 

$

10,082

 

 

7.1

%

 

% of adjusted direct premiums

 

11.9

%

 

11.8

%

 

11.7

%

 

12.0

%

 

12.2

%

 

11.8

%

 

 

nm

 

nm

 

 

11.9

%

 

12.0

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance expenses, net (7)

$

47,663

 

$

45,437

 

$

44,789

 

$

44,215

 

$

49,329

 

$

48,851

 

 

 

$

3,414

 

 

7.5

%

$

93,100

 

$

98,181

 

$

5,081

 

 

5.5

%

 

% of adjusted direct premiums

 

8.0

%

 

7.5

%

 

7.3

%

 

7.1

%

 

7.8

%

 

7.6

%

 

 

nm

 

nm

 

 

7.8

%

 

7.7

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Term Life income before income taxes

$

130,540

 

$

140,115

 

$

141,224

 

$

140,285

 

$

138,367

 

$

147,780

 

 

 

$

7,665

 

 

5.5

%

$

270,655

 

$

286,147

 

$

15,493

 

 

5.7

%

 

Term Life operating margin (8)

 

22.0

%

 

23.1

%

 

23.0

%

 

22.6

%

 

22.0

%

 

23.1

%

 

 

nm

 

nm

 

 

22.6

%

 

22.6

%

nm

 

nm

 

 

(1)
Premiums ceded to IPO coinsurers - premiums ceded to IPO coinsurers under the IPO coinsurance transactions excluding any reimbursements from the IPO coinsurers on previously existing reinsurance agreements.
(2)
Adjusted direct premiums - direct premiums net of premiums ceded to IPO coinsurers.
(3)
Other ceded premiums - premiums ceded to non-IPO coinsurers net of any applicable reimbursements from the IPO coinsurers.
(4)
Post-IPO direct premiums - direct premiums not subject to the 2010 IPO coinsurance transactions.
(5)
Pre-IPO direct premiums - direct premiums subject to the 2010 IPO coinsurance transactions.
(6)
Benefits and claims, net - benefits & claims and remeasurement (gain)/loss net of other ceded premiums which are largely yearly renewable term.
(7)
Insurance expenses, net - insurance expenses net of other, net revenues.
(8)
Term Life Insurance operating margin - Term Life operating income before income taxes as a percentage of adjusted direct premiums.

9 of 18

 


 

 

Term Life Insurance - Key Statistics

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q2

 

 

 

 

 

YOY YTD

 

 

 

Q1
2023

 

Q2
2023

 

Q3
2023

 

Q4
2023

 

Q1
2024

 

Q2
2024

 

Q3
2024

Q4
2024

$
Change

 

%
Change

 

YTD 2023

 

YTD 2024

 

$
Change

 

%
Change

 

 

Key Statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life-insurance licensed sales force, beginning of period

 

135,208

 

 

136,430

 

 

137,806

 

 

139,053

 

 

141,572

 

 

142,855

 

 

 

 

6,425

 

 

4.7

%

 

135,208

 

 

141,572

 

 

6,364

 

 

4.7

%

 

 

New life-licensed representatives

 

11,118

 

 

12,638

 

 

12,311

 

 

13,029

 

 

12,949

 

 

14,402

 

 

 

 

1,764

 

 

14.0

%

 

23,756

 

 

27,351

 

 

3,595

 

 

15.1

%

 

 

Non-renewal and terminated representatives

 

(9,896

)

 

(11,262

)

 

(11,064

)

 

(10,510

)

 

(11,666

)

 

(11,468

)

 

 

 

(206

)

 

-1.8

%

 

(21,158

)

 

(23,134

)

 

(1,976

)

 

-9.3

%

 

Life-insurance licensed sales force, end of period

 

136,430

 

 

137,806

 

 

139,053

 

 

141,572

 

 

142,855

 

 

145,789

 

 

 

 

7,983

 

 

5.8

%

 

137,806

 

 

145,789

 

 

7,983

 

 

5.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated annualized issued term life premium ($mills) (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium from new policies

$

70.7

 

$

82.0

 

$

74.0

 

$

75.6

 

$

73.1

 

$

86.7

 

 

 

$

4.7

 

 

5.7

%

$

152.7

 

$

159.7

 

$

7.0

 

 

4.6

%

 

 

Additions and increases in premium

 

18.2

 

 

19.7

 

 

18.7

 

 

17.7

 

 

18.1

 

 

19.9

 

 

 

 

0.2

 

 

0.9

%

 

37.9

 

 

38.0

 

 

0.1

 

 

0.2

%

 

 

 

 

Total estimated annualized issued term life premium

$

88.9

 

$

101.7

 

$

92.7

 

$

93.3

 

$

91.2

 

$

106.5

 

 

 

$

4.9

 

 

4.8

%

$

190.6

 

$

197.7

 

$

7.1

 

 

3.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued term life policies

 

84,561

 

 

96,953

 

 

88,589

 

 

88,757

 

 

86,587

 

 

100,768

 

 

 

 

3,815

 

 

3.9

%

 

181,514

 

 

187,355

 

 

5,841

 

 

3.2

%

 

Estimated average annualized issued term life premium per policy (1)(2)

$

836

 

$

846

 

$

836

 

$

852

 

$

844

 

$

860

 

 

 

$

15

 

 

1.7

%

$

841

 

$

853

 

$

11

 

 

1.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term life face amount in-force, beginning of period ($mills)

$

916,808

 

$

922,845

 

$

934,867

 

$

937,856

 

$

944,609

 

$

947,101

 

 

 

$

24,256

 

 

2.6

%

$

916,808

 

$

944,609

 

$

27,802

 

 

3.0

%

 

 

Issued term life face amount (3)

 

28,124

 

 

32,203

 

 

29,452

 

 

29,322

 

 

28,725

 

 

33,155

 

 

 

 

952

 

 

3.0

%

 

60,327

 

 

61,880

 

 

1,553

 

 

2.6

%

 

 

Terminated term life face amount

 

(22,210

)

 

(22,583

)

 

(24,143

)

 

(25,293

)

 

(23,323

)

 

(28,241

)

 

 

 

(5,658

)

 

-25.1

%

 

(44,793

)

 

(51,564

)

 

(6,770

)

 

-15.1

%

 

 

Foreign currency impact, net

 

124

 

 

2,401

 

 

(2,320

)

 

2,724

 

 

(2,911

)

 

(1,134

)

 

 

 

(3,536

)

 

-147.2

%

 

2,525

 

 

(4,046

)

 

(6,571

)

nm

 

 

Term life face amount in-force, end of period

$

922,845

 

$

934,867

 

$

937,856

 

$

944,609

 

$

947,101

 

$

950,880

 

 

 

$

16,014

 

 

1.7

%

$

934,867

 

$

950,880

 

$

16,014

 

 

1.7

%

 

(1)
Estimated annualized issued term life premium - estimated as average premium per $1,000 of face amounts issued on new policies and additions (before free look returns) multiplied by actual face amount issued on new policies, rider additions and face amount increases.
(2)
In whole dollars.
(3)
Issued term life face amount - includes face amount on issued term life policies, additional riders added to existing policies, and face increases under increasing benefit riders.

 

 

10 of 18

 


 

 

Investment and Savings Products - Financial Results and Financial Analysis

 

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q2

 

 

 

 

 

YOY YTD

 

(Dollars in thousands, except as noted)

Q1
2023

 

Q2
2023

 

Q3
2023

 

Q4
2023

 

Q1
2024

 

Q2
2024

 

Q3
2024

Q4
2024

$
Change

 

%
Change

 

YTD 2023

 

YTD 2024

 

$
Change

 

%
Change

 

Investment & Savings Products Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commissions and fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales-based

$

72,388

 

$

74,958

 

$

72,996

 

$

76,274

 

$

88,746

 

$

101,178

 

 

 

$

26,220

 

 

35.0

%

$

147,346

 

$

189,924

 

$

42,577

 

 

28.9

%

 

Asset-based

 

111,904

 

 

113,335

 

 

119,413

 

 

118,303

 

 

128,532

 

 

132,765

 

 

 

 

19,430

 

 

17.1

%

 

225,239

 

 

261,297

 

 

36,058

 

 

16.0

%

 

Account-based

 

22,790

 

 

23,095

 

 

23,344

 

 

23,960

 

 

23,180

 

 

23,740

 

 

 

 

644

 

 

2.8

%

 

45,886

 

 

46,919

 

 

1,034

 

 

2.3

%

 

Other, net

 

3,120

 

 

3,121

 

 

3,145

 

 

3,119

 

 

3,258

 

 

3,224

 

 

 

 

103

 

 

3.3

%

 

6,240

 

 

6,482

 

 

242

 

 

3.9

%

 

Revenues

 

210,202

 

 

214,509

 

 

218,898

 

 

221,656

 

 

243,716

 

 

260,906

 

 

 

 

46,397

 

 

21.6

%

 

424,712

 

 

504,622

 

 

79,910

 

 

18.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of DAC

 

1,493

 

 

1,409

 

 

1,311

 

 

1,267

 

 

1,201

 

 

1,478

 

 

 

 

69

 

 

4.9

%

 

2,901

 

 

2,679

 

 

(223

)

 

-7.7

%

 

Insurance commissions

 

3,308

 

 

3,273

 

 

3,321

 

 

3,246

 

 

3,400

 

 

3,343

 

 

 

 

70

 

 

2.1

%

 

6,581

 

 

6,743

 

 

161

 

 

2.5

%

 

Sales commissions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales-based

 

52,452

 

 

53,630

 

 

52,343

 

 

54,057

 

 

62,814

 

 

70,509

 

 

 

 

16,878

 

 

31.5

%

 

106,082

 

 

133,322

 

 

27,240

 

 

25.7

%

 

Asset-based

 

54,276

 

 

55,085

 

 

58,793

 

 

58,388

 

 

64,208

 

 

66,525

 

 

 

 

11,440

 

 

20.8

%

 

109,361

 

 

130,733

 

 

21,372

 

 

19.5

%

 

Other operating expenses

 

42,567

 

 

41,529

 

 

38,757

 

 

41,935

 

 

46,531

 

 

44,269

 

 

 

 

2,740

 

 

6.6

%

 

84,095

 

 

90,800

 

 

6,704

 

 

8.0

%

 

Benefits and expenses

 

154,095

 

 

154,926

 

 

154,524

 

 

158,893

 

 

178,153

 

 

186,123

 

 

 

 

31,197

 

 

20.1

%

 

309,021

 

 

364,276

 

 

55,255

 

 

17.9

%

 

Income before income taxes

$

56,107

 

$

59,583

 

$

64,374

 

$

62,763

 

$

65,563

 

$

74,783

 

 

 

$

15,200

 

 

25.5

%

$

115,691

 

$

140,346

 

$

24,655

 

 

21.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees paid based on client asset values (1)

$

8,034

 

$

8,142

 

$

8,608

 

$

8,102

 

$

9,342

 

$

9,548

 

 

 

$

1,406

 

 

17.3

%

$

16,176

 

$

18,890

 

$

2,714

 

 

16.8

%

 

Fees paid based on fee-generating positions (2)

 

11,528

 

 

10,216

 

 

9,469

 

 

10,270

 

 

11,426

 

 

10,483

 

 

 

 

267

 

 

2.6

%

 

21,744

 

 

21,909

 

 

165

 

 

0.8

%

 

Other operating expenses

 

23,005

 

 

23,171

 

 

20,680

 

 

23,563

 

 

25,763

 

 

24,238

 

 

 

 

1,067

 

 

4.6

%

 

46,176

 

 

50,001

 

 

3,825

 

 

8.3

%

 

Total other operating expenses

$

42,567

 

$

41,529

 

$

38,757

 

$

41,935

 

$

46,531

 

$

44,269

 

 

 

$

2,740

 

 

6.6

%

$

84,095

 

$

90,800

 

$

6,704

 

 

8.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales-based variable margin as % of revenue-generating sales (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

1.21

%

 

1.21

%

 

1.22

%

 

1.27

%

 

1.25

%

 

1.33

%

 

 

nm

 

nm

 

 

1.21

%

 

1.29

%

nm

 

nm

 

 

Canada

 

0.33

%

 

0.37

%

 

0.41

%

 

0.45

%

 

0.48

%

 

0.37

%

 

 

nm

 

nm

 

 

0.34

%

 

0.43

%

nm

 

nm

 

 

Total

 

1.13

%

 

1.16

%

 

1.17

%

 

1.22

%

 

1.19

%

 

1.27

%

 

 

nm

 

nm

 

 

1.15

%

 

1.23

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-based variable margin as % of average asset values (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

0.042

%

 

0.041

%

 

0.042

%

 

0.042

%

 

0.041

%

 

0.041

%

 

 

nm

 

nm

 

 

0.084

%

 

0.082

%

nm

 

nm

 

 

Canada

 

0.102

%

 

0.104

%

 

0.105

%

 

0.105

%

 

0.104

%

 

0.104

%

 

 

nm

 

nm

 

 

0.206

%

 

0.208

%

nm

 

nm

 

 

Total

 

0.052

%

 

0.051

%

 

0.052

%

 

0.052

%

 

0.051

%

 

0.050

%

 

 

nm

 

nm

 

 

0.103

%

 

0.101

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Account-based variable margin per average fee generating position (5)(6)

$

3.58

 

$

4.07

 

$

4.36

 

$

4.29

 

$

3.67

 

$

4.10

 

 

 

nm

 

nm

 

$

7.65

 

$

7.77

 

nm

 

nm

 

 

(1)
Fees paid based on client asset values - administration fees on Canadian Segregated Funds and advisory fees on Managed Accounts that vary directly with client asset values.
(2)
Fees paid based on fee-generating positions - recordkeeping fees that vary with the number of fee-generating positions.
(3)
Sales-based variable margin - commission and fee revenue less commissions paid to the sales force based on product sales activity.
(4)
Asset-based variable margin - commission and fee revenue less administration and advisory fees paid to third-party providers and commissions paid to the sales force earned based on product account values including amortization of deferred acquisition costs for segregated funds.
(5)
Account-based variable margin - fee revenue less recordkeeping fees paid to third-party providers based on fee-generating positions and certain direct general expenses.
(6)
In whole dollars.

11 of 18

 


 

 

Investment and Savings Products - Key Statistics

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q2

 

 

 

 

 

YOY YTD

 

 

Q1
2023

 

Q2
2023

 

Q3
2023

 

Q4
2023

 

Q1
2024

 

Q2
2024

 

Q3
2024

Q4
2024

$
Change

 

%
Change

 

YTD 2023

 

YTD 2024

 

$
Change

 

%
Change

 

Key Statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales ($mills)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Retail Mutual Funds

$

971.7

 

$

998.5

 

$

956.9

 

$

970.9

 

$

1,162.2

 

$

1,228.6

 

 

 

$

230.1

 

 

23.0

%

$

1,970.2

 

$

2,390.7

 

$

420.6

 

 

21.3

%

 

 

Canada Retail Mutual Funds

 

149.8

 

 

106.2

 

 

110.1

 

 

112.0

 

 

179.6

 

 

147.6

 

 

 

 

41.4

 

 

38.9

%

 

256.0

 

 

327.2

 

 

71.2

 

 

27.8

%

 

 

Indexed Annuities

 

80.7

 

 

89.3

 

 

72.7

 

 

68.9

 

 

81.0

 

 

98.0

 

 

 

 

8.6

 

 

9.7

%

 

170.0

 

 

179.0

 

 

8.9

 

 

5.3

%

 

 

Variable Annuities and other

 

556.4

 

 

649.1

 

 

628.8

 

 

671.9

 

 

756.0

 

 

941.4

 

 

 

 

292.4

 

 

45.0

%

 

1,205.5

 

 

1,697.4

 

 

491.9

 

 

40.8

%

 

 

 

 

Total sales-based revenue generating product sales

 

1,758.6

 

 

1,843.1

 

 

1,768.5

 

 

1,823.7

 

 

2,178.8

 

 

2,415.6

 

 

 

 

572.5

 

 

31.1

%

 

3,601.7

 

 

4,594.3

 

 

992.7

 

 

27.6

%

 

 

Managed Accounts

 

306.1

 

 

317.0

 

 

236.0

 

 

353.2

 

 

370.9

 

 

456.1

 

 

 

 

139.1

 

 

43.9

%

 

623.1

 

 

827.0

 

 

203.8

 

 

32.7

%

 

 

Canada Retail Mutual Funds - no upfront sales comm

 

183.4

 

 

193.6

 

 

152.4

 

 

161.8

 

 

197.7

 

 

196.5

 

 

 

 

2.9

 

 

1.5

%

 

377.0

 

 

394.2

 

 

17.3

 

 

4.6

%

 

 

Segregated Funds

 

51.9

 

 

27.9

 

 

17.4

 

 

17.2

 

 

23.0

 

 

14.8

 

 

 

 

(13.2

)

 

-47.1

%

 

79.8

 

 

37.8

 

 

(42.1

)

 

-52.7

%

 

 

 

 

Total product sales

$

2,300.0

 

$

2,381.6

 

$

2,174.2

 

$

2,355.9

 

$

2,770.4

 

$

3,082.9

 

 

 

$

701.3

 

 

29.4

%

$

4,681.6

 

$

5,853.3

 

$

1,171.7

 

 

25.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Canada Retail Mutual Funds

$

333.2

 

$

299.8

 

$

262.5

 

$

273.8

 

$

377.4

 

$

344.1

 

 

 

$

44.3

 

 

14.8

%

$

633.0

 

$

721.4

 

$

88.5

 

 

14.0

%

 

 

Segregated Funds

 

51.9

 

 

27.9

 

 

17.4

 

 

17.2

 

 

23.0

 

 

14.8

 

 

 

 

(13.2

)

 

-47.1

%

 

79.8

 

 

37.8

 

 

(42.1

)

 

-52.7

%

 

 

 

Total Canada product sales

 

385.0

 

 

327.7

 

 

279.8

 

 

291.0

 

 

400.4

 

 

358.8

 

 

 

 

31.1

 

 

9.5

%

 

712.8

 

 

759.2

 

 

46.4

 

 

6.5

%

 

 

 

Total U.S. product sales

 

1,914.9

 

 

2,053.9

 

 

1,894.4

 

 

2,065.0

 

 

2,370.0

 

 

2,724.1

 

 

 

 

670.2

 

 

32.6

%

 

3,968.8

 

 

5,094.1

 

 

1,125.3

 

 

28.4

%

 

 

 

 

Total product sales

$

2,300.0

 

$

2,381.6

 

$

2,174.2

 

$

2,355.9

 

$

2,770.4

 

$

3,082.9

 

 

 

$

701.3

 

 

29.4

%

$

4,681.6

 

$

5,853.3

 

$

1,171.7

 

 

25.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Client asset values, beginning of period ($mills)

$

83,949

 

$

87,621

 

$

91,646

 

$

88,441

 

$

96,735

 

$

103,340

 

 

 

$

15,719

 

 

17.9

%

$

83,949

 

$

96,735

 

$

12,786

 

 

15.2

%

 

 

Inflows

 

2,300

 

 

2,382

 

 

2,174

 

 

2,356

 

 

2,770

 

 

3,083

 

 

 

 

701

 

 

29.4

%

 

4,682

 

 

5,853

 

 

1,172

 

 

25.0

%

 

 

Outflows (1)

 

(1,658

)

 

(1,839

)

 

(1,982

)

 

(2,184

)

 

(2,497

)

 

(2,660

)

 

 

 

(821

)

 

-44.6

%

 

(3,497

)

 

(5,157

)

 

(1,659

)

 

-47.4

%

 

 

 

 

Net flows

 

642

 

 

542

 

 

192

 

 

172

 

 

274

 

 

423

 

 

 

 

(119

)

 

-22.0

%

 

1,184

 

 

697

 

 

(488

)

 

-41.2

%

 

 

Foreign currency impact, net

 

16

 

 

315

 

 

(303

)

 

344

 

 

(392

)

 

(163

)

 

 

 

(478

)

nm

 

 

330

 

 

(555

)

 

(885

)

nm

 

 

 

Change in market value, net and other (2)

 

3,014

 

 

3,168

 

 

(3,094

)

 

7,777

 

 

6,724

 

 

1,512

 

 

 

 

(1,656

)

 

-52.3

%

 

6,182

 

 

8,236

 

 

2,054

 

 

33.2

%

 

Client asset values, end of period

$

87,621

 

$

91,646

 

$

88,441

 

$

96,735

 

$

103,340

 

$

105,112

 

 

 

$

13,467

 

 

14.7

%

$

91,646

 

$

105,112

 

$

13,467

 

 

14.7

%

 

 

Annualized net flows as % of beginning of period asset values

 

3.1

%

 

2.5

%

 

0.8

%

 

0.8

%

 

1.1

%

 

1.6

%

 

 

 

-0.8

%

nm

 

 

2.8

%

 

1.4

%

 

-1.4

%

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average client asset values ($mills)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Retail Mutual Funds

$

42,096

 

$

43,225

 

$

44,748

 

$

44,622

 

$

49,013

 

$

50,560

 

 

 

$

7,335

 

 

17.0

%

$

42,661

 

$

49,787

 

$

7,126

 

 

16.7

%

 

 

Canada Retail Mutual Funds

 

11,345

 

 

11,567

 

 

11,817

 

 

11,722

 

 

12,850

 

 

13,259

 

 

 

 

1,692

 

 

14.6

%

 

11,456

 

 

13,055

 

 

1,598

 

 

14.0

%

 

 

Managed Accounts

 

7,338

 

 

7,613

 

 

7,850

 

 

7,851

 

 

8,806

 

 

9,376

 

 

 

 

1,763

 

 

23.2

%

 

7,475

 

 

9,091

 

 

1,616

 

 

21.6

%

 

 

Indexed Annuities

 

2,729

 

 

2,760

 

 

2,793

 

 

2,807

 

 

2,824

 

 

2,868

 

 

 

 

108

 

 

3.9

%

 

2,745

 

 

2,846

 

 

101

 

 

3.7

%

 

 

Variable Annuities and other

 

20,744

 

 

21,323

 

 

21,999

 

 

21,762

 

 

23,665

 

 

24,663

 

 

 

 

3,340

 

 

15.7

%

 

21,034

 

 

24,164

 

 

3,131

 

 

14.9

%

 

 

Segregated Funds

 

2,329

 

 

2,324

 

 

2,298

 

 

2,232

 

 

2,344

 

 

2,266

 

 

 

 

(57

)

 

-2.5

%

 

2,326

 

 

2,305

 

 

(21

)

 

-0.9

%

 

 

 

 

Total

$

86,581

 

$

88,813

 

$

91,505

 

$

90,995

 

$

99,502

 

$

102,993

 

 

 

$

14,181

 

 

16.0

%

$

87,697

 

$

101,247

 

$

13,551

 

 

15.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada Retail Mutual Funds

$

11,345

 

$

11,567

 

$

11,817

 

$

11,722

 

$

12,850

 

$

13,259

 

 

 

$

1,692

 

 

14.6

%

$

11,456

 

$

13,055

 

$

1,598

 

 

14.0

%

 

 

Segregated Funds

 

2,329

 

 

2,324

 

 

2,298

 

 

2,232

 

 

2,344

 

 

2,266

 

 

 

 

(57

)

 

-2.5

%

 

2,326

 

 

2,305

 

 

(21

)

 

-0.9

%

 

 

 

Total Canada average client assets

 

13,674

 

 

13,891

 

 

14,115

 

 

13,954

 

 

15,194

 

 

15,526

 

 

 

 

1,635

 

 

11.8

%

 

13,782

 

 

15,360

 

 

1,577

 

 

11.4

%

 

 

 

Total U.S. average client assets

 

72,907

 

 

74,922

 

 

77,391

 

 

77,042

 

 

84,308

 

 

87,468

 

 

 

 

12,546

 

 

16.7

%

 

73,915

 

 

85,888

 

 

11,973

 

 

16.2

%

 

 

 

 

Total average client assets

$

86,581

 

$

88,813

 

$

91,505

 

$

90,995

 

$

99,502

 

$

102,993

 

 

 

$

14,181

 

 

16.0

%

$

87,697

 

$

101,247

 

$

13,551

 

 

15.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average number of fee-generating positions (thous) (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recordkeeping and custodial

 

2,316

 

 

2,331

 

 

2,342

 

 

2,351

 

 

2,359

 

 

2,378

 

 

 

 

47

 

 

2.0

%

 

2,324

 

 

2,369

 

 

45

 

 

1.9

%

 

 

Recordkeeping only

 

829

 

 

834

 

 

839

 

 

842

 

 

847

 

 

857

 

 

 

 

23

 

 

2.7

%

 

832

 

 

852

 

 

20

 

 

2.4

%

 

 

 

 

Total

 

3,145

 

 

3,165

 

 

3,181

 

 

3,193

 

 

3,206

 

 

3,235

 

 

 

 

70

 

 

2.2

%

 

3,155

 

 

3,221

 

 

65

 

 

2.1

%

 

(1)
Asset value outflows - include (a) redemptions of assets, (b) sales charges on the inflow sales figures, and (c) the net flow of money market funds sold and redeemed on the Company's recordkeeping platform. The redemptions of assets must be estimated for approximately 4% of account values as these figures are not readily available. Actual redemptions as a percentage of account values for similar known account values are used to estimate the unknown redemption values.
(2)
Change in market value, net - market value fluctuations net of fees and expenses.
(3)
Fee generating positions - mutual fund positions for which we receive recordkeeping fees. An individual client account may include multiple mutual fund positions. We may also receive fees earned for custodial services that we provide to clients with retirement plan accounts that hold positions in these mutual funds.

12 of 18

 


 

Senior Health - Financial Results, Financial Analysis Key Statistics

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q2

 

 

 

 

 

YOY YTD

 

(Dollars in thousands, except as noted)

Q1
2023

 

Q2
2023

 

Q3
2023

 

Q4
2023

 

Q1
2024

 

Q2
2024

 

Q3
2024

Q4
2024

$
Change

 

%
Change

 

YTD 2023

 

YTD 2024

 

$
Change

 

%
Change

 

Senior Health Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commissions and fees (1)

$

15,755

 

$

11,371

 

$

11,388

 

$

19,049

 

$

6,077

 

$

11,576

 

 

 

$

205

 

 

1.8

%

$

27,125

 

$

17,652

 

$

(9,473

)

 

-34.9

%

 

Other, net (2)

 

2,955

 

 

3,519

 

 

2,048

 

 

1,099

 

 

803

 

 

845

 

 

 

 

(2,674

)

 

-76.0

%

 

6,474

 

 

1,648

 

 

(4,826

)

 

-74.5

%

 

Revenues

 

18,710

 

 

14,889

 

 

13,436

 

 

20,148

 

 

6,880

 

 

12,420

 

 

 

 

(2,469

)

 

-16.6

%

 

33,599

 

 

19,300

 

 

(14,299

)

 

-42.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract acquisition costs (3)

 

14,984

 

 

12,602

 

 

12,568

 

 

15,079

 

 

13,533

 

 

15,724

 

 

 

 

3,122

 

 

24.8

%

 

27,586

 

 

29,257

 

 

1,671

 

 

6.1

%

 

Other operating expenses

 

7,488

 

 

8,320

 

 

8,451

 

 

7,750

 

 

7,500

 

 

8,061

 

 

 

 

(259

)

 

-3.1

%

 

15,808

 

 

15,561

 

 

(247

)

 

-1.6

%

 

Adjusted operating benefits and expenses

 

22,471

 

 

20,922

 

 

21,019

 

 

22,829

 

 

21,033

 

 

23,785

 

 

 

 

2,863

 

 

13.7

%

 

43,394

 

 

44,818

 

 

1,424

 

 

3.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income before income taxes

$

(3,762

)

$

(6,033

)

$

(7,583

)

$

(2,681

)

$

(14,153

)

$

(11,365

)

 

 

$

(5,332

)

 

-88.4

%

$

(9,795

)

$

(25,518

)

$

(15,723

)

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior Health EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income before income taxes

$

(3,762

)

$

(6,033

)

$

(7,583

)

$

(2,681

)

$

(14,153

)

$

(11,365

)

 

 

$

(5,332

)

 

-88.4

%

$

(9,795

)

$

(25,518

)

$

(15,723

)

nm

 

 

Less: Amortization of intangibles

 

(2,800

)

 

(2,800

)

 

(2,800

)

 

(2,800

)

 

(2,800

)

 

(2,800

)

 

 

 

 

nm

 

 

(5,600

)

 

(5,600

)

 

 

nm

 

 

Less: Depreciation

 

(200

)

 

(160

)

 

(166

)

 

(173

)

 

(144

)

 

(119

)

 

 

 

41

 

 

25.7

%

 

(360

)

 

(263

)

 

97

 

 

27.0

%

 

Adjusted EBITDA (4)

$

(762

)

$

(3,073

)

$

(4,617

)

$

292

 

$

(11,209

)

$

(8,446

)

 

 

$

(5,373

)

nm

 

$

(3,834

)

$

(19,655

)

$

(15,821

)

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Analysis and Key Statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior Health submitted policies (5)

 

19,826

 

 

13,885

 

 

10,718

 

 

18,663

 

 

16,068

 

 

15,767

 

 

 

 

1,882

 

 

13.6

%

 

33,711

 

 

31,835

 

 

(1,876

)

 

-5.6

%

 

Senior Health approved policies (6)

 

18,413

 

 

12,915

 

 

9,948

 

 

17,181

 

 

15,023

 

 

14,646

 

 

 

 

1,731

 

 

13.4

%

 

31,328

 

 

29,669

 

 

(1,659

)

 

-5.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primerica representatives Senior Health certified (7)

 

94,623

 

 

94,335

 

 

93,217

 

 

89,082

 

 

81,348

 

 

66,371

 

 

 

 

(27,964

)

 

-29.6

%

 

94,335

 

 

66,371

 

 

(27,964

)

 

-29.6

%

 

Senior Health submitted policies sourced by Primerica representatives

 

2,073

 

 

1,707

 

 

1,549

 

 

5,111

 

 

2,051

 

 

1,425

 

 

 

 

(282

)

 

-16.5

%

 

3,780

 

 

3,476

 

 

(304

)

 

-8.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LTV per approved policy (8)

$

856

 

$

880

 

$

911

 

$

1,109

 

$

926

 

$

914

 

 

 

$

34

 

 

3.8

%

$

866

 

$

920

 

$

54

 

 

6.3

%

 

CAC per approved policy (8)

$

814

 

$

976

 

$

1,263

 

$

878

 

$

901

 

$

1,074

 

 

 

$

98

 

 

10.0

%

$

881

 

$

986

 

$

106

 

 

12.0

%

 

LTV / CAC multiple

 

1.1

 x

 

0.9

 x

 

0.7

 x

 

1.3

 x

 

1.0

 x

 

0.9

 x

 

 

 

-0.1

 x

nm

 

 

1.0

 x

 

0.9

 x

 

-0.1

 x

nm

 

 

(1)
Commission revenue recognized based on the estimated Lifetime value (LTV) to be collected over the estimated life of an approved policy for the relevant period based on multiple factors, including but not limited to contracted commission rates, carrier mix, expected policy turnover, historical chargeback activity and applied constraints. Adjustments to revenue outside of LTV for approved policies from prior periods are recognized when our cash collections are different, or are expected to be, from the estimated constrained LTV’s which we refer to as tail revenue.
(2)
Primarily reflects marketing development revenues, which are non-commission revenues received from carriers to support marketing efforts and lead acquisition.
(3)
Contract acquisition costs (CAC) - Includes direct marketing costs incurred to acquire leads through internal and external sources, including commissions paid to Primerica representatives, as well as ETQ agent compensation, training and licensing costs.
(4)
Adjusted EBITDA - Earnings before interest, taxes, depreciation, amortization and certain adjustments for non-cash or non-recurring expenses including purchase accounting adjustments.
(5)
Senior Health submitted policies - represents the number of completed applications that, with respect to each such application, the applicant has authorized us to submit to the health insurance carrier. The applicant may need to take additional actions, including providing subsequent information before the application is reviewed by the health insurance carrier.
(6)
Senior Health approved policies - represent an estimate of submitted policies approved by health insurance carriers during the indicated period. Not all approved policies will go in force.
(7)
A Primerica independent contractor sales representative does not need to be life-insurance licensed in order to obtain a Primerica Senior Health certification.
(8)
In whole dollars.

 

13 of 18

 


 

 

Corporate Other Distributed Products - Financial Results

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q2

 

 

 

 

 

YOY YTD

 

(Dollars in thousands)

Q1
2023

 

Q2
2023

 

Q3
2023

 

Q4
2023

 

Q1
2024

 

Q2
2024

 

Q3
2024

Q4
2024

$
Change

 

%
Change

 

YTD 2023

 

YTD 2024

 

$
Change

 

%
Change

 

Corporate & Other Distributed Products Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct premiums

$

4,993

 

$

4,999

 

$

5,016

 

$

4,358

 

$

4,725

 

$

4,690

 

 

 

$

(309

)

 

-6.2

%

$

9,991

 

$

9,415

 

$

(576

)

 

-5.8

%

 

Ceded premiums

 

(1,304

)

 

(1,562

)

 

(1,215

)

 

273

 

 

(1,205

)

 

(1,213

)

 

 

 

349

 

 

22.3

%

 

(2,866

)

 

(2,419

)

 

447

 

 

15.6

%

 

Net premiums

 

3,689

 

 

3,436

 

 

3,801

 

 

4,631

 

 

3,520

 

 

3,477

 

 

 

 

40

 

 

1.2

%

 

7,125

 

 

6,997

 

 

(129

)

 

-1.8

%

 

Adjusted net investment income

 

31,392

 

 

33,250

 

 

35,213

 

 

36,429

 

 

37,943

 

 

38,263

 

 

 

 

5,013

 

 

15.1

%

 

64,641

 

 

76,206

 

 

11,564

 

 

17.9

%

 

Commissions and fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prepaid legal services

 

3,991

 

 

4,421

 

 

5,311

 

 

3,806

 

 

3,591

 

 

3,924

 

 

 

 

(497

)

 

-11.2

%

 

8,412

 

 

7,516

 

 

(896

)

 

-10.7

%

 

Auto and homeowners insurance

 

1,831

 

 

2,349

 

 

2,951

 

 

2,133

 

 

1,777

 

 

2,413

 

 

 

 

64

 

 

2.7

%

 

4,180

 

 

4,190

 

 

10

 

 

0.3

%

 

Mortgage loans

 

1,211

 

 

1,775

 

 

1,733

 

 

1,530

 

 

1,499

 

 

2,211

 

 

 

 

436

 

 

24.6

%

 

2,987

 

 

3,711

 

 

724

 

 

24.2

%

 

Other sales commissions

 

1,676

 

 

1,826

 

 

1,765

 

 

1,781

 

 

1,618

 

 

1,963

 

 

 

 

137

 

 

7.5

%

 

3,502

 

 

3,581

 

 

79

 

 

2.3

%

 

Adjusted other, net

 

1,200

 

 

1,236

 

 

1,327

 

 

846

 

 

704

 

 

764

 

 

 

 

(472

)

 

-38.2

%

 

2,436

 

 

1,467

 

 

(969

)

 

-39.8

%

 

Adjusted operating revenues

 

44,990

 

 

48,293

 

 

52,102

 

 

51,157

 

 

50,653

 

 

53,014

 

 

 

 

4,721

 

 

9.8

%

 

93,283

 

 

103,668

 

 

10,384

 

 

11.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and claims

 

4,327

 

 

5,057

 

 

3,554

 

 

7,957

 

 

2,475

 

 

3,762

 

 

 

 

(1,295

)

 

-25.6

%

 

9,384

 

 

6,236

 

 

(3,148

)

 

-33.5

%

 

Future policy benefits remeasurement (gain)/loss

 

(477

)

 

(554

)

 

(72

)

 

933

 

 

374

 

 

(49

)

 

 

 

505

 

 

91.1

%

 

(1,031

)

 

325

 

 

1,356

 

 

131.5

%

 

Amortization of DAC

 

362

 

 

697

 

 

375

 

 

99

 

 

357

 

 

250

 

 

 

 

(448

)

 

-64.2

%

 

1,060

 

 

606

 

 

(453

)

 

-42.8

%

 

Insurance commissions

 

241

 

 

373

 

 

217

 

 

429

 

 

187

 

 

271

 

 

 

 

(102

)

 

-27.4

%

 

614

 

 

458

 

 

(156

)

 

-25.4

%

 

Insurance expenses

 

1,229

 

 

1,377

 

 

1,123

 

 

1,341

 

 

1,171

 

 

1,209

 

 

 

 

(168

)

 

-12.2

%

 

2,606

 

 

2,380

 

 

(226

)

 

-8.7

%

 

Sales commissions

 

4,147

 

 

4,907

 

 

5,064

 

 

4,303

 

 

4,117

 

 

5,120

 

 

 

 

213

 

 

4.3

%

 

9,054

 

 

9,237

 

 

183

 

 

2.0

%

 

Interest expense

 

6,690

 

 

6,686

 

 

6,632

 

 

6,586

 

 

6,771

 

 

6,099

 

 

 

 

(587

)

 

-8.8

%

 

13,376

 

 

12,870

 

 

(505

)

 

-3.8

%

 

Adjusted other operating expenses

 

39,480

 

 

33,340

 

 

32,146

 

 

34,886

 

 

46,913

 

 

35,413

 

 

 

 

2,073

 

 

6.2

%

 

72,820

 

 

82,325

 

 

9,506

 

 

13.1

%

 

Adjusted benefits and expenses

 

55,999

 

 

51,882

 

 

49,039

 

 

56,533

 

 

62,363

 

 

52,074

 

 

 

 

192

 

 

0.4

%

 

107,881

 

 

114,437

 

 

6,556

 

 

6.1

%

 

Adjusted operating income before income taxes

$

(11,008

)

$

(3,589

)

$

3,063

 

$

(5,377

)

$

(11,710

)

$

940

 

 

 

$

4,530

 

 

126.2

%

$

(14,598

)

$

(10,770

)

$

3,828

 

 

26.2

%

 

14 of 18

 


 

 

Investment Portfolio - Summary of Holdings

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

As of or for the period ended June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of Total

 

Avg

 

 

 

 

 

 

 

 

 

 

Market

 

Amortized

 

Unrealized

 

Market

 

Amortized

 

Book

 

Avg

(Dollars in thousands)

 

Value

 

Cost

 

G/(L)

 

Value

 

Cost

 

Yield

 

Rating

Investment Portfolio by Asset Class

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash, Cash Equivalents, and Short Term

 

$

627,261

 

$

627,292

 

$

(31

)

 

18.2

%

 

17.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Treasury

 

 

16,689

 

 

17,280

 

 

(591

)

 

0.5

%

 

0.5

%

 

2.90

%

AAA

 

Government

 

 

241,161

 

 

262,376

 

 

(21,215

)

 

7.0

%

 

7.1

%

 

3.23

%

AA-

 

Tax-Exempt Municipal

 

 

32,846

 

 

35,805

 

 

(2,958

)

 

1.0

%

 

1.0

%

 

2.70

%

AA

 

Corporate

 

 

1,428,428

 

 

1,531,049

 

 

(102,621

)

 

41.4

%

 

41.5

%

 

4.10

%

BBB+

 

Mortgage Backed

 

 

447,159

 

 

516,426

 

 

(69,267

)

 

13.0

%

 

14.0

%

 

3.40

%

AAA

 

Asset Backed

 

 

232,211

 

 

240,767

 

 

(8,556

)

 

6.7

%

 

6.5

%

 

4.81

%

AA-

 

Cmbs

 

 

105,698

 

 

118,240

 

 

(12,542

)

 

3.1

%

 

3.2

%

 

3.67

%

AA-

 

Private

 

 

291,157

 

 

310,881

 

 

(19,723

)

 

8.4

%

 

8.4

%

 

4.92

%

BBB+

 

Redeemable Preferred

 

 

3,870

 

 

4,248

 

 

(378

)

 

0.1

%

 

0.1

%

 

5.37

%

BBB-

 

 

 

 

 

 

Total Fixed Income

 

 

2,799,219

 

 

3,037,072

 

 

(237,853

)

 

81.1

%

 

82.3

%

 

4.01

%

A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities and Other:

 

 

 

 

 

 

 

 

 

 

 

 

Perpetual Preferred

 

 

4,427

 

 

4,427

 

 

-

 

 

0.1

%

 

0.1

%

 

 

 

 

Common Stock

 

 

18,220

 

 

18,220

 

 

(0

)

 

0.5

%

 

0.5

%

 

 

 

 

Mutual Fund

 

 

3,379

 

 

3,379

 

 

(0

)

 

0.1

%

 

0.1

%

 

 

 

 

 

 

 

 

 

Total Equities

 

 

26,026

 

 

26,026

 

 

(0

)

 

0.8

%

 

0.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Invested Assets

 

$

3,452,506

 

$

3,690,391

 

$

(237,884

)

 

100.0

%

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Public Corporate Portfolio by Sector

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance

 

$

197,299

 

$

212,848

 

$

(15,548

)

 

13.8

%

 

13.9

%

 

 

 

 

Energy

 

 

175,605

 

 

185,947

 

 

(10,342

)

 

12.3

%

 

12.1

%

 

 

 

 

Consumer Non Cyclical

 

 

136,174

 

 

149,699

 

 

(13,525

)

 

9.5

%

 

9.8

%

 

 

 

 

Reits

 

 

124,908

 

 

137,847

 

 

(12,939

)

 

8.7

%

 

9.0

%

 

 

 

 

Consumer Cyclical

 

 

117,384

 

 

125,919

 

 

(8,534

)

 

8.2

%

 

8.2

%

 

 

 

 

Technology

 

 

100,563

 

 

106,335

 

 

(5,772

)

 

7.0

%

 

6.9

%

 

 

 

 

Capital Goods

 

 

89,208

 

 

94,325

 

 

(5,117

)

 

6.2

%

 

6.2

%

 

 

 

 

Electric

 

 

85,910

 

 

90,867

 

 

(4,958

)

 

6.0

%

 

5.9

%

 

 

 

 

Banking

 

 

85,154

 

 

86,838

 

 

(1,684

)

 

6.0

%

 

5.7

%

 

 

 

 

Basic Industry

 

 

66,036

 

 

72,685

 

 

(6,649

)

 

4.6

%

 

4.7

%

 

 

 

 

Finance Companies

 

 

61,824

 

 

65,640

 

 

(3,816

)

 

4.3

%

 

4.3

%

 

 

 

 

Communications

 

 

56,489

 

 

59,846

 

 

(3,357

)

 

4.0

%

 

3.9

%

 

 

 

 

Transportation

 

 

51,600

 

 

55,054

 

 

(3,453

)

 

3.6

%

 

3.6

%

 

 

 

 

Brokerage

 

 

48,389

 

 

52,645

 

 

(4,256

)

 

3.4

%

 

3.4

%

 

 

 

 

Natural Gas

 

 

13,940

 

 

14,218

 

 

(278

)

 

1.0

%

 

0.9

%

 

 

 

 

Industrial Other

 

 

5,890

 

 

6,765

 

 

(875

)

 

0.4

%

 

0.4

%

 

 

 

 

Financial Other

 

 

5,485

 

 

5,856

 

 

(371

)

 

0.4

%

 

0.4

%

 

 

 

 

Utility Other

 

 

4,625

 

 

5,390

 

 

(765

)

 

0.3

%

 

0.4

%

 

 

 

 

Owned No Guarantee

 

 

1,943

 

 

2,325

 

 

(382

)

 

0.1

%

 

0.2

%

 

 

 

 

 

 

 

 

 

Total Corporate portfolio

 

$

1,428,428

 

$

1,531,049

 

$

(102,621

)

 

100.0

%

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-Maturity Securities - Effective Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

< 1 Yr.

 

$

236,561

 

$

239,028

 

$

(2,467

)

 

8.5

%

 

7.9

%

 

3.88

%

 

 

 

1-2 Yrs.

 

 

279,794

 

 

287,007

 

 

(7,213

)

 

10.0

%

 

9.5

%

 

4.21

%

 

 

 

2-5 Yrs.

 

 

777,142

 

 

815,549

 

 

(38,407

)

 

27.8

%

 

26.9

%

 

4.15

%

 

 

 

5-10 Yrs.

 

 

1,110,095

 

 

1,254,878

 

 

(144,784

)

 

39.7

%

 

41.3

%

 

3.60

%

 

 

 

> 10 Yrs.

 

 

395,627

 

 

440,609

 

 

(44,982

)

 

14.1

%

 

14.5

%

 

4.84

%

 

 

 

 

 

 

 

Total Fixed Income

 

$

2,799,219

 

$

3,037,072

 

$

(237,853

)

 

100.0

%

 

100.0

%

 

4.01

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Duration

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Income portfolio duration

 

 

4.9

 

years

 

 

 

 

 

 

 

 

 

 

 

 

Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

 

15 of 18

 


 

 

Investment Portfolio - Quality Ratings As of June 30, 2024

PRIMERICA, INC.

Financial Supplement

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Portfolio Quality Ratings (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

% of Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Income portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AAA

 

$

556,083

 

 

18.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AA

 

 

427,055

 

 

14.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A

 

 

736,558

 

 

24.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BBB

 

 

1,272,114

 

 

41.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Below Investment Grade

 

 

45,065

 

 

1.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NA

 

 

197

 

 

0.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Income

 

$

3,037,072

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

% of Total

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

% of Total

 

Public Corporate asset class:

 

 

 

 

 

 

 

Private Placement asset class:

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

AAA

 

$

6,854

 

 

0.4

%

 

 

 

AAA

 

$

-

 

 

 

 

AA

 

 

63,318

 

 

4.1

%

 

 

 

AA

 

 

8,987

 

 

2.9

%

 

A

 

 

386,355

 

 

25.2

%

 

 

 

A

 

 

82,516

 

 

26.5

%

 

BBB

 

 

1,033,488

 

 

67.5

%

 

 

 

BBB

 

 

218,083

 

 

70.2

%

 

Below Investment Grade

 

 

40,859

 

 

2.7

%

 

 

 

Below Investment Grade

 

 

1,294

 

 

0.4

%

 

NA

 

 

176

 

 

0.0

%

 

 

 

NA

 

 

-

 

 

 

 

 

 

 

 

 

Total Corporate

 

$

1,531,049

 

 

100.0

%

 

 

 

 

 

 

 

 

Total Private

 

$

310,881

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMBS asset class:

 

 

 

 

 

 

 

Mortgage-Backed asset class:

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

AAA

 

$

52,552

 

 

44.4

%

 

 

 

AAA

 

$

397,383

 

 

76.9

%

 

AA

 

 

10,390

 

 

8.8

%

 

 

 

AA

 

 

118,856

 

 

23.0

%

 

A

 

 

55,298

 

 

46.8

%

 

 

 

A

 

 

105

 

 

0.0

%

 

BBB

 

 

-

 

 

 

 

 

 

BBB

 

 

-

 

 

 

 

Below Investment Grade

 

 

-

 

 

 

 

 

 

Below Investment Grade

 

 

61

 

 

0.0

%

 

NA

 

 

-

 

 

 

 

 

 

NA

 

 

21

 

 

0.0

%

 

 

 

 

 

 

Total CMBS

 

$

118,240

 

 

100.0

%

 

 

 

 

 

 

 

 

Total Mortgage-Backed

 

$

516,426

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Backed asset class:

 

 

 

 

 

 

 

Treasury & Government asset classes:

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

AAA

 

$

67,508

 

 

28.0

%

 

 

 

AAA

 

$

31,106

 

 

11.1

%

 

AA

 

 

32,962

 

 

13.7

%

 

 

 

AA

 

 

165,263

 

 

59.1

%

 

A

 

 

138,581

 

 

57.6

%

 

 

 

A

 

 

66,885

 

 

23.9

%

 

BBB

 

 

-

 

 

 

 

 

 

BBB

 

 

15,266

 

 

5.5

%

 

Below Investment Grade

 

 

1,715

 

 

0.7

%

 

 

 

Below Investment Grade

 

 

1,137

 

 

0.4

%

 

NA

 

 

-

 

 

 

 

 

 

NA

 

 

-

 

 

 

 

 

 

 

 

 

Total Asset-Backed

 

$

240,767

 

 

100.0

%

 

 

 

 

 

 

 

 

Total Treasury & Government

 

$

279,656

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NAIC Designations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

$

1,439,375

 

 

55.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

1,145,640

 

 

42.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

45,080

 

 

1.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

6,161

 

 

0.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

 

 

1,137

 

 

0.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

 

0

 

 

0.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Insurer Fixed Income (2)

 

 

2,637,393

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (3)

 

 

425,705

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

627,292

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Invested Assets

 

$

3,690,391

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)
Ratings method for split ratings: If by 2 NRSROs, use lower of the two; if by 3 or more NRSROs, use second lowest.
(2)
NAIC ratings for our U.S. insurance companies' fixed income portfolios.
(3)
Other consists of assets held by our non-life companies, Canadian insurance company, and unrated equities.

Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

16 of 18

 


 

 

Investment Portfolio - Supplemental Data and Trends

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q2

(Dollars in thousands)

Q1
2023

 

Q2
2023

 

Q3
2023

 

Q4
2023

 

Q1
2024

 

Q2
2024

 

Q3
2024

Q4
2024

$
Change

 

%
Change

Net Investment Income by Source

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity securities (available-for-sale)

$

25,806

 

$

26,357

 

$

27,380

 

$

29,218

 

$

29,936

 

$

30,618

 

 

 

$

4,261

 

16.2%

 

Fixed-maturity securities (held-to-maturity)

 

16,435

 

 

16,608

 

 

16,306

 

 

16,126

 

 

15,785

 

 

15,659

 

 

 

 

(950

)

-5.7%

 

Equity Securities

 

380

 

 

380

 

 

366

 

 

397

 

 

390

 

 

323

 

 

 

 

(57

)

-15.0%

 

Deposit asset underlying 10% reinsurance treaty

 

2,377

 

 

2,488

 

 

2,504

 

 

2,415

 

 

2,311

 

 

2,211

 

 

 

 

(277

)

-11.1%

 

Deposit asset - Mark to Market

 

(327

)

 

(852

)

 

(481

)

 

1,215

 

 

(137

)

 

189

 

 

 

 

1,041

 

122.2%

 

Policy loans and other invested assets

 

(72

)

 

352

 

 

475

 

 

542

 

 

461

 

 

544

 

 

 

 

192

 

54.5%

 

Cash & cash equivalents

 

5,128

 

 

5,840

 

 

6,609

 

 

6,024

 

 

6,981

 

 

6,640

 

 

 

 

800

 

13.7%

 

 

 

 

 

Total investment income

 

49,727

 

 

51,172

 

 

53,159

 

 

55,937

 

 

55,727

 

 

56,183

 

 

 

 

5,011

 

9.8%

 

Investment expenses

 

2,227

 

 

2,167

 

 

2,122

 

 

2,167

 

 

2,136

 

 

2,072

 

 

 

 

(95

)

-4.4%

 

Interest Expense on Surplus Note

 

16,435

 

 

16,608

 

 

16,306

 

 

16,126

 

 

15,785

 

 

15,659

 

 

 

 

(949

)

-5.7%

 

 

 

 

 

Net investment income

$

31,065

 

$

32,397

 

$

34,731

 

$

37,644

 

$

37,806

 

$

38,452

 

 

 

$

6,055

 

18.7%

 

 

Fixed income book yield, end of period

 

3.57

%

 

3.63

%

 

3.79

%

 

3.83

%

 

3.93

%

 

4.01

%

 

 

 

 

 

 

 

New money yield

 

5.57

%

 

5.46

%

 

6.04

%

 

6.67

%

 

5.70

%

 

5.78

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q2

 

 

 

 

 

 

 

 

 

Q1
2023

 

Q2
2023

 

Q3
2023

 

Q4
2023

 

Q1
2024

 

Q2
2024

 

Q3
2024

Q4
2024

% Pt
Change

 

 

Fixed Income Portfolio Quality Ratings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AAA

 

20.8

%

 

20.7

%

 

19.0

%

 

18.9

%

 

18.9

%

 

18.3

%

 

 

 

-2.4

%

 

 

AA

 

11.3

%

 

11.4

%

 

14.3

%

 

14.9

%

 

14.8

%

 

14.1

%

 

 

 

2.6

%

 

 

A

 

25.0

%

 

24.8

%

 

24.8

%

 

24.9

%

 

24.1

%

 

24.3

%

 

 

 

-0.5

%

 

 

BBB

 

40.5

%

 

40.9

%

 

39.7

%

 

39.4

%

 

40.5

%

 

41.9

%

 

 

 

1.0

%

 

 

Below Investment Grade

 

2.2

%

 

2.0

%

 

1.9

%

 

2.0

%

 

1.6

%

 

1.5

%

 

 

 

-0.5

%

 

 

NA

 

0.2

%

 

0.1

%

 

0.3

%

 

0.0

%

 

0.0

%

 

0.0

%

 

 

 

-0.1

%

 

 

 

 

 

 

 

 

100.0

%

 

100.0

%

 

100.0

%

 

100.0

%

 

100.0

%

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A

 

A

 

A

 

A

 

A

 

A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of June 30, 2024

 

 

 

As of June 30, 2024

 

 

 

 

 

 

As of June 30, 2024

 

 

 

 

 

 

 

 

Market
Value

 

Amortized
Cost

 

Credit
Rating

 

 

 

Market
Value

 

Amortized
Cost

 

 

 

 

 

 

Market
Value

 

Amortized
Cost

 

Top 25 Exposures

 

 

 

 

 

 

Foreign Exposure (1)

 

 

 

 

 

 

Government Investments (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

Province of Ontario Canada

$

15,425

 

$

15,928

 

A+

 

Canada

$

91,063

 

$

99,091

 

 

 

AAA

$

695

 

$

701

 

 

2

Canada

 

15,001

 

 

15,872

 

AAA

 

United Kingdom

 

26,614

 

 

26,775

 

 

 

AA

 

 

 

 

 

3

Province of Alberta Canada

 

14,572

 

 

15,636

 

AA-

 

Australia

 

15,891

 

 

16,960

 

 

 

A

 

10,776

 

 

12,438

 

 

4

Province of Quebec Canada

 

14,524

 

 

15,092

 

AA-

 

Ireland

 

11,578

 

 

11,100

 

 

 

BBB

 

14,010

 

 

14,816

 

 

5

Realty Income Corp

 

14,016

 

 

15,037

 

A-

 

Cayman Islands

 

11,093

 

 

11,043

 

 

 

Below Investment Grade

 

638

 

 

1,137

 

 

6

ONEOK Inc

 

13,881

 

 

14,385

 

BBB

 

Japan

 

6,667

 

 

6,700

 

 

 

NA

 

 

 

 

 

7

Ontario Teachers' Pension Plan

 

12,957

 

 

14,299

 

AA+

 

Mexico

 

6,611

 

 

7,682

 

 

 

 

Total

$

26,119

 

$

29,091

 

 

8

Boeing Co

 

11,569

 

 

11,838

 

BBB-

 

France

 

5,527

 

 

5,740

 

 

 

 

 

 

 

 

 

 

 

9

Intact Financial Corp

 

11,454

 

 

11,415

 

A+

 

Netherlands

 

5,419

 

 

5,490

 

 

 

 

 

 

 

 

 

 

 

10

Manulife Financial Corp

 

10,818

 

 

11,581

 

A

 

Bermuda

 

5,037

 

 

5,241

 

 

 

Non-Government Investments (1)

 

 

 

 

 

11

Berkshire Hathaway Inc

 

10,618

 

 

10,644

 

AA

 

Luxembourg

 

4,960

 

 

4,700

 

 

 

 

 

 

 

 

 

 

 

12

TC Energy Corp

 

10,038

 

 

11,168

 

BBB+

 

Israel

 

3,540

 

 

3,563

 

 

 

AAA

$

11,225

 

$

11,147

 

 

13

Province of Nova Scotia Canada

 

9,690

 

 

10,249

 

AA-

 

Malta

 

3,130

 

 

3,130

 

 

 

AA

 

11,996

 

 

11,946

 

 

14

Alimentation Couche-Tard Inc

 

9,536

 

 

9,668

 

BBB-

 

Germany

 

2,975

 

 

2,990

 

 

 

A

 

62,455

 

 

64,049

 

 

15

Morgan Stanley

 

9,428

 

 

9,617

 

BBB+

 

Brazil

 

2,227

 

 

2,351

 

 

 

BBB

 

141,791

 

 

149,489

 

 

16

Province of Saskatchewan Canada

 

9,291

 

 

9,596

 

AA

 

Emerging Markets (2)

 

11,339

 

 

12,855

 

 

 

Below Investment Grade

 

3,944

 

 

3,801

 

 

17

ConocoPhillips

 

9,174

 

 

10,712

 

A-

 

All Other

 

 

45,417

 

 

45,669

 

 

 

NA

 

1,557

 

 

1,557

 

 

18

Old Republic International Corp

 

8,679

 

 

8,720

 

BBB+

 

 

Total

$

259,087

 

$

271,080

 

 

 

 

Total

$

232,968

 

$

241,989

 

 

19

Fairfax Financial Holdings Ltd

 

8,577

 

 

9,734

 

BBB

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20

Walmart Inc

 

8,471

 

 

8,661

 

AA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21

Tokyo Century Corp

 

8,467

 

 

8,974

 

BBB

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22

Oglethorpe Power Corp

 

8,424

 

 

9,377

 

BBB+

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23

Kemper Corp

 

8,331

 

 

9,091

 

BBB-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24

Broadcom Inc

 

8,269

 

 

8,672

 

BBB

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

25

Brookfield Corp

 

8,255

 

 

8,434

 

A+

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

269,465

 

$

284,398

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of total fixed income portfolio

 

7.8

%

 

7.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)
US$ denominated investments in issuers outside of the United States based on country of risk.
(2)
Emerging markets is as defined by MSCI, Inc. which include Chile, India, Peru, Poland and South Africa.

Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

17 of 18

 


 

 

Five-Year Historical Key Statistics

PRIMERICA, INC.

Financial Supplement

 

(Dollars in millions)

2019

 

2020

 

2021

 

2022

 

2023

 

Q1
2023

 

Q2
2023

 

Q3
2023

 

Q4
2023

 

Q1
2024

 

Q2
2024

 

Q3
2024

Q4
2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recruits

 

282,207

 

 

400,345

 

 

349,374

 

 

359,735

 

 

361,925

 

 

93,540

 

 

86,124

 

 

92,269

 

 

89,992

 

 

110,710

 

 

96,563

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life-insurance licensed sales force, beginning of period

 

130,736

 

 

130,522

 

 

134,907

 

 

129,515

 

 

135,208

 

 

135,208

 

 

136,430

 

 

137,806

 

 

139,053

 

 

141,572

 

 

142,855

 

 

 

 

New life-licensed representatives

 

44,739

 

 

48,106

 

 

39,622

 

 

45,147

 

 

49,096

 

 

11,118

 

 

12,638

 

 

12,311

 

 

13,029

 

 

12,949

 

 

14,402

 

 

 

 

Non-renewal and terminated representatives

 

(44,953

)

 

(43,721

)

 

(45,014

)

 

(39,454

)

 

(42,732

)

 

(9,896

)

 

(11,262

)

 

(11,064

)

 

(10,510

)

 

(11,666

)

 

(11,468

)

 

 

Life-insurance licensed sales force, end of period

 

130,522

 

 

134,907

 

 

129,515

 

 

135,208

 

 

141,572

 

 

136,430

 

 

137,806

 

 

139,053

 

 

141,572

 

 

142,855

 

 

145,789

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued term life policies

 

287,809

 

 

352,868

 

 

323,855

 

 

291,918

 

 

358,860

 

 

84,561

 

 

96,953

 

 

88,589

 

 

88,757

 

 

86,587

 

 

100,768

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued term life face amount

$

93,994

 

$

109,436

 

$

108,521

 

$

103,822

 

$

119,102

 

$

28,124

 

$

32,203

 

$

29,452

 

$

29,322

 

$

28,725

 

$

33,155

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term life face amount in force, beginning of period

$

781,041

 

$

808,262

 

$

858,818

 

$

903,404

 

$

916,808

 

$

916,808

 

$

922,845

 

$

934,867

 

$

937,856

 

$

944,609

 

$

947,101

 

 

 

 

Issued term life face amount

 

93,994

 

 

109,436

 

 

108,521

 

 

103,822

 

 

119,102

 

 

28,124

 

 

32,203

 

 

29,452

 

 

29,322

 

 

28,725

 

 

33,155

 

 

 

 

Terminated term life face amount

 

(71,519

)

 

(60,848

)

 

(64,798

)

 

(82,894

)

 

(94,230

)

 

(22,210

)

 

(22,583

)

 

(24,143

)

 

(25,293

)

 

(23,323

)

 

(28,241

)

 

 

 

Foreign currency impact, net

 

4,746

 

 

1,968

 

 

862

 

 

(7,524

)

 

2,929

 

 

124

 

 

2,401

 

 

(2,320

)

 

2,724

 

 

(2,911

)

 

(1,134

)

 

 

Term life face amount in force, end of period

$

808,262

 

$

858,818

 

$

903,404

 

$

916,808

 

$

944,609

 

$

922,845

 

$

934,867

 

$

937,856

 

$

944,609

 

$

947,101

 

$

950,880

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated annualized issued term life premium

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium from new policies

$

244.8

 

$

303.6

 

$

297.2

 

$

271.9

 

$

302.4

 

$

70.7

 

$

82.0

 

$

74.0

 

$

75.6

 

$

73.1

 

$

86.7

 

 

 

 

Additions and increases in premium

 

60.2

 

 

68.9

 

 

77.0

 

 

76.7

 

 

74.3

 

 

18.2

 

 

19.7

 

 

18.7

 

 

17.7

 

 

18.1

 

 

19.9

 

 

 

 

 

Total estimated annualized issued term life premium

$

305.0

 

$

372.5

 

$

374.2

 

$

348.5

 

$

376.6

 

$

88.9

 

$

101.7

 

$

92.7

 

$

93.3

 

$

91.2

 

$

106.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment & Savings product sales

$

7,533.2

 

$

7,842.5

 

$

11,703.2

 

$

10,009.0

 

$

9,211.7

 

$

2,300.0

 

$

2,381.6

 

$

2,174.2

 

$

2,355.9

 

$

2,770.4

 

$

3,082.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment & Savings average client asset values

$

65,029

 

$

69,709

 

$

89,993

 

$

87,193

 

$

89,474

 

$

86,581

 

$

88,813

 

$

91,505

 

$

90,995

 

$

99,502

 

$

102,993

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Closed U.S. Mortgage Volume (brokered)

$

31.1

 

$

442.5

 

$

1,229.2

 

$

567.2

 

$

293.4

 

$

55.6

 

$

82.2

 

$

82.7

 

$

72.9

 

$

71.4

 

$

99.6

 

 

 

 

18 of 18

 


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Document and Entity Information
Aug. 07, 2024
Cover [Abstract]  
Amendment Flag false
Entity Central Index Key 0001475922
Document Type 8-K
Document Period End Date Aug. 07, 2024
Entity Registrant Name Primerica, Inc.
Entity Incorporation State Country Code DE
Entity File Number 001-34680
Entity Tax Identification Number 27-1204330
Entity Address, Address Line One 1 Primerica Parkway
Entity Address, City or Town Duluth
Entity Address, State or Province GA
Entity Address, Postal Zip Code 30099
City Area Code 770
Local Phone Number 381-1000
Written Communications false
Soliciting Material false
Pre commencement Tender Offer false
Pre commencement Issuer Tender Offer false
Security 12b Title Common Stock
Trading Symbol PRI
Security Exchange Name NYSE
Entity Emerging Growth Company false
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