Financial Performance - Adjusted operating revenue increased by 18% [5] - Adjusted net operating income grew by 14% [5] - Diluted adjusted operating earnings per share increased by 19% [5] - Adjusted operating ROAE was 22.2% compared to 21.8% in the prior year period [5] - GAAP revenues increased by 21% to $637.7 million [5] - GAAP net income increased by 35% to $97.9 million [5] - GAAP diluted EPS increased by 41% to $2.46 [5] Distribution - New recruits increased by 12% year-over-year, reaching 94,633 [8] - The sales force totaled approximately 132,000 representatives [8] Production - Issued life insurance policies increased by 16% year-over-year, totaling 82,667 [11] - Life insurance face amount issued increased by 15% to $26.6 billion [11] - Life insurance face amount in force increased by 8% to $869.6 billion [11] - Investment and Savings Products (ISP) sales increased by 27% to $2.85 billion [15] - Average client asset values for ISP increased by 25% to $83.13 billion [15] - Ending client asset values for ISP increased 45% to $85.89 billion [15] Segment Performance - Term Life adjusted direct premiums grew by 16% [19] - Investment & Savings Products sales-based revenues increased by 21% [22] - Investment & Savings Products asset-based revenues increased by 24% [22]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-34680 Primerica, Inc. (Exact name of registrant as specified in its charter) Delaware 27-1204330 (State or other jurisdiction o ...

PART I [Item 1. Business](index=6&type=section&id=Item%201.%20Business) Primerica provides financial products to middle-income households in the U.S. and Canada via a large independent sales force - Primerica serves middle-income households in the U.S. and Canada with **134,907 licensed sales representatives** as of December 31, 2020, providing term life insurance (underwritten) and distributing mutual funds, annuities, and other financial products (primarily third-party)[18](index=18&type=chunk) - The company's mission is to help middle-income families make informed financial decisions and achieve financial independence through its distribution model[19](index=19&type=chunk) New Recruits and Life Insurance-Licensed Sales Representatives (2018-2020) | Metric | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Number of new recruits | 400,345 | 282,207 | 290,886 | | Number of newly life insurance-licensed sales representatives | 48,106 | 44,739 | 48,041 | | Number of life insurance-licensed sales representatives, at period end | 134,907 | 130,522 | 130,736 | | Average number of life insurance-licensed sales representatives during period | 133,302 | 130,370 | 128,977 | - The company's sales force compensation structure is **performance-based**, including sales commissions, fees on client assets under management, and quarterly agent equity awards, with advances on insurance commissions subject to chargebacks[41](index=41&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) Life Insurance Product Portfolio (2018-2020) | Metric | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Life insurance issued:** | | | | | Number of policies issued | 352,868 | 287,809 | 301,589 | | Face amount issued (in millions) | $109,436 | $93,994 | $95,209 | | **Life insurance in force (Dec 31):** | | | | | Number of policies in force | 2,787,992 | 2,641,483 | 2,606,825 | | Face amount in force (in millions) | $858,818 | $808,262 | $781,041 | Benefits Paid by Claim Category (2018-2020, in thousands) | Claim Category | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Death | $1,676,017 | $1,447,375 | $1,391,755 | | Waiver of premium | $51,823 | $49,712 | $46,690 | | Terminal illness | $11,501 | $14,584 | $16,474 | - The company extensively uses reinsurance, typically ceding **80% to 90% of mortality risk** for term life insurance policies to reduce volatility, with agreements allowing for discontinuation on future policies with notice and rate increases with recapture rights[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk) - As of December 31, 2020, Primerica had **1,966 full-time U.S. employees** and **264 full-time Canadian employees**, with a U.S. employee retention rate of **92%** in 2020[162](index=162&type=chunk)[165](index=165&type=chunk)[169](index=169&type=chunk) [Item 1A. Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks related to its distribution model, regulatory changes, insurance underwriting, and cybersecurity - **Failure to attract new recruits**, retain sales representatives, or maintain licensing would materially adversely affect business, as new representatives are crucial for client access and sales growth[174](index=174&type=chunk)[175](index=175&type=chunk) - Adverse tax, legal, or financial consequences could arise if the **independent contractor status** of sales representatives is overturned, leading to significant compliance costs or liabilities[182](index=182&type=chunk)[184](index=184&type=chunk) - Significant losses may occur if actual **mortality or persistency rates differ from pricing expectations**, potentially requiring accelerated DAC amortization or increased future policy benefit reserves[188](index=188&type=chunk)[189](index=189&type=chunk)[190](index=190&type=chunk) - The Investment and Savings Products segment is **heavily dependent on a small number of mutual fund and annuity companies**; changes in product competitiveness or loss of relationships could materially affect results[210](index=210&type=chunk) - Major public health crises, such as the **COVID-19 pandemic**, could lead to elevated mortality claims, negatively impact recruiting and sales force productivity, and cause significant market volatility affecting investment portfolios[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[233](index=233&type=chunk) - **Information technology system failures**, security compromises, or internet unavailability could cause significant operational interruptions, reputational harm, and material adverse effects on the business[236](index=236&type=chunk)[238](index=238&type=chunk)[240](index=240&type=chunk) - Changes in accounting standards, particularly **ASU 2018-12 for long-duration contracts**, are difficult to predict and could materially impact reported financial condition and results of operations[248](index=248&type=chunk)[249](index=249&type=chunk) [Item 1B. Unresolved Staff Comments](index=41&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments from the SEC [Item 2. Properties](index=41&type=section&id=Item%202.%20Properties) The company's primary operations are located in a leased 345,000 square foot facility in Duluth, Georgia, expiring in June 2028 - The company's main executive offices and business operations are in a leased **345,000 sq ft facility** in Duluth, Georgia, with the lease expiring in June 2028[269](index=269&type=chunk) - Regional head offices are maintained in Mississauga, Ontario (Canadian operations) and Long Island City, New York (NBLIC subsidiary), both under long-term leases[270](index=270&type=chunk) - Existing facilities in the U.S. and Canada are considered adequate for current and foreseeable operational requirements[271](index=271&type=chunk) [Item 3. Legal Proceedings](index=41&type=section&id=Item%203.%20Legal%20Proceedings) No pending legal proceedings require disclosure as of the report date - The company is involved in legal disputes, regulatory inquiries, and arbitration proceedings in the normal course of business[272](index=272&type=chunk) - As of the report date, no pending legal proceeding is deemed to require disclosure under this item[272](index=272&type=chunk) [Item 4. Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Primerica, Inc [Item X. Information About Our Executive Officers and Certain Significant Employees](index=41&type=section&id=Item%20X.%20Information%20About%20Our%20Executive%20Officers%20and%20Certain%20Significant%20Employees) This section provides biographical information for Primerica's executive officers and key employees as of March 1, 2021 Executive Officers and Significant Employees (as of March 1, 2021) | Name | Age | Position | | :--- | :-- | :--- | | Glenn J. Williams | 61 | Chief Executive Officer | | Peter W. Schneider | 64 | President | | Alison S. Rand | 53 | Executive Vice President and Chief Financial Officer | | Gregory C. Pitts | 58 | Executive Vice President and Chief Operating Officer | | John A. Adams | 62 | Chief Executive Officer, Primerica Life Insurance Company of Canada | | Michael C. Adams | 64 | Executive Vice President and Chief Business Technology Officer | | Lisa A. Brown | 51 | Executive Vice President and Chief Administrative Officer | | Estee Faranda | 46 | Chief Executive Officer, PFS Investments | | Jeffrey S. Fendler | 64 | Executive Vice President and Chief Compliance and Risk Officer | | William A. Kelly | 65 | Executive Vice President and Co-Head of Business Technology | | Kathryn E. Kieser | 51 | Executive Vice President and Chief Reputation Officer | | Michael W. Miller | 43 | Executive Vice President, Head of Corporate Development and Strategic Planning and President of Primerica Mortgage, LLC | | Robert H. Peterman, Jr. | 55 | Executive Vice President and Chief Marketing Officer | | Brett A. Rogers | 55 | Executive Vice President and General Counsel | | Julie A. Seman | 51 | Executive Vice President, Field Distribution, Primerica Life, Client Solutions and Strategic Markets | - **Glenn J. Williams** has served as CEO since April 2015, having been with Primerica since 1981[276](index=276&type=chunk) - **Lisa A. Brown**, Executive Vice President and Chief Administrative Officer since October 2020, leads Human Resources, Talent Management, Facilities, Physical Securities, and diversity, equality, and inclusion efforts[284](index=284&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=44&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on the NYSE, with details on dividends, share repurchases, and stock performance provided - Primerica's common stock is listed on the New York Stock Exchange (NYSE) under the symbol **'PRI'**[296](index=296&type=chunk) - As of February 28, 2021, there were **140 holders of record** of the company's common stock[296](index=296&type=chunk) - In the first quarter of 2021, a quarterly dividend of **$0.47 per share** was declared, with expectations to continue comparable payments, subject to Board discretion and Delaware law[297](index=297&type=chunk) Issuer Purchases of Equity Securities (Q4 2020) | Period | Total shares purchased | Average price paid per share | Total shares purchased under announced plans | Approximate dollar value remaining under plans | | :--- | :--- | :--- | :--- | :--- | | October 1 - 31, 2020 | 115,433 | $115.68 | 115,433 | $68,605,883 | | November 1 - 30, 2020 | 44 | $111.65 | - | $68,605,883 | | December 1 - 31, 2020 | 419 | $134.06 | - | $68,605,883 | | **Total** | **115,896** | **$115.74** | **115,433** | **$68,605,883** | - On February 9, 2021, the Board authorized a new share repurchase program for up to **$300.0 million** of outstanding common stock, including $68.6 million remaining from the prior program, through June 30, 2022[301](index=301&type=chunk) Stock Performance Comparison (2015-2020, $100 invested) | Index | 12/31/2015 | 12/31/2016 | 12/31/2017 | 12/31/2018 | 12/31/2019 | 12/31/2020 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Primerica, Inc. | $100.00 | $148.33 | $219.88 | $213.54 | $288.50 | $299.77 | | S&P 500 Insurance | $100.00 | $117.58 | $136.62 | $121.30 | $156.94 | $156.25 | | S&P MidCap 400 | $100.00 | $120.74 | $140.35 | $124.80 | $157.49 | $179.01 | [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes financial results for the three years ended December 31, 2020, including business trends and segment performance - The **COVID-19 pandemic** significantly impacted 2020, causing economic uncertainty, market volatility, elevated unemployment, and fluctuations in consumer spending, which will continue to affect the business[309](index=309&type=chunk)[310](index=310&type=chunk) - New recruits increased in 2020 due to positive momentum and discounted application fees, while new life-licensed sales representatives faced challenges from pandemic-related closures of licensing centers[314](index=314&type=chunk) Primerica, Inc. and Subsidiaries Results of Operations (2018-2020, in thousands) | Metric | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Revenues:** | | | | | Direct premiums | $2,907,149 | $2,753,866 | $2,667,104 | | Ceded premiums | $(1,580,766) | $(1,569,729) | $(1,581,164) | | Net premiums | $1,326,383 | $1,184,137 | $1,085,940 | | Commissions and fees | $751,271 | $713,804 | $677,607 | | Net investment income | $83,814 | $94,073 | $81,430 | | Realized investment gains (losses) | $(4,996) | $4,965 | $(2,121) | | Other, net | $61,069 | $55,525 | $56,987 | | **Total revenues** | **$2,217,541** | **$2,052,504** | **$1,899,843** | | **Benefits and expenses:** | | | | | Benefits and claims | $615,569 | $493,820 | $457,583 | | Amortization of DAC | $224,321 | $254,552 | $239,730 | | Sales commissions | $376,636 | $357,198 | $335,384 | | Insurance expenses | $188,117 | $178,817 | $168,156 | | Insurance commissions | $32,134 | $25,051 | $24,490 | | Interest expense | $28,839 | $28,811 | $28,809 | | Other operating expenses | $245,195 | $237,144 | $229,607 | | **Total benefits and expenses** | **$1,710,811** | **$1,575,393** | **$1,483,759** | | **Income before income taxes** | **$506,730** | **$477,111** | **$416,084** | | Income taxes | $120,566 | $110,720 | $91,990 | | **Net income** | **$386,164** | **$366,391** | **$324,094** | - **Total revenues increased 8%** in 2020 from 2019, driven by strong sales and persistency in term life insurance and growth in Investment and Savings Products' client asset values[375](index=375&type=chunk) - **Net income increased 5%** in 2020, reaching **$386.2 million**, primarily due to higher revenues, partially offset by increased benefits and claims (due to COVID-19 mortality) and operating expenses[374](index=374&type=chunk)[380](index=380&type=chunk) - Cash provided by operating activities increased in 2020 due to direct premium growth and positive persistency trends, despite higher cash outlays for policy acquisition costs[413](index=413&type=chunk) - The company maintains strong liquidity, with cash flows from operations expected to be sufficient for operating needs, and insurance subsidiaries' capital and surplus exceeding regulatory requirements (RBC in U.S., LICAT in Canada)[410](index=410&type=chunk)[417](index=417&type=chunk)[419](index=419&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=68&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is primarily exposed to interest rate risk, Canadian currency risk, and credit risk - **Market risk** is the potential loss of fair value from adverse changes in market rates and prices, such as interest rates and foreign currency exchange rates[438](index=438&type=chunk) - Shock-tests are used to model the effects of hypothetical changes in interest rates and Canadian exchange rates on financial condition and results of operations[439](index=439&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=70&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Primerica's audited consolidated financial statements and the independent auditor's report for the period - **KPMG LLP issued an unqualified opinion** on Primerica's consolidated financial statements for the three-year period ended December 31, 2020, and on the effectiveness of internal control over financial reporting as of December 31, 2020[451](index=451&type=chunk)[452](index=452&type=chunk) - A **critical audit matter** was the evaluation of mortality, persistency, and disability rate assumptions used to estimate future policy benefits for term life insurance contracts, due to high measurement uncertainty and complex auditor judgment[455](index=455&type=chunk)[457](index=457&type=chunk) [Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=108&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There were no changes in or disagreements with accountants on accounting and financial disclosure matters - No changes in, or disagreements with, accountants on accounting and financial disclosure matters occurred during the years ended December 31, 2020 and 2019[651](index=651&type=chunk) [Item 9A. Controls and Procedures](index=108&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective - The company's disclosure controls and procedures were evaluated and deemed **effective as of December 31, 2020**, with no material changes in internal control over financial reporting during Q4 2020[652](index=652&type=chunk)[653](index=653&type=chunk) - Management concluded that internal control over financial reporting was **effective as of December 31, 2020**, based on the COSO framework[654](index=654&type=chunk) - KPMG LLP issued an **unqualified attestation report** on the effectiveness of Primerica's internal control over financial reporting as of December 31, 2020[655](index=655&type=chunk)[658](index=658&type=chunk) [Item 9B. Other Information](index=110&type=section&id=Item%209B.%20Other%20Information) This item is not applicable to Primerica, Inc PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=111&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, officers, and corporate governance is incorporated by reference from the 2021 Proxy Statement - Information on directors, executive officers, and corporate governance is **incorporated by reference** from the 2021 Proxy Statement[666](index=666&type=chunk)[671](index=671&type=chunk) - A list of executive officers is also provided in Part I, Item X of this report[669](index=669&type=chunk) - Primerica has a written **Code of Conduct** for all directors, officers, and employees, with a separate code for principal executive and senior financial officers, available on its website[670](index=670&type=chunk) [Item 11. Executive Compensation](index=111&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the 2021 Proxy Statement - Information on executive compensation is **incorporated by reference** from the 2021 Proxy Statement, covering the Compensation Committee, director compensation, and executive compensation[671](index=671&type=chunk)[672](index=672&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=112&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section details securities authorized for issuance under equity compensation plans Securities Authorized for Issuance Under Equity Compensation Plans (as of December 31, 2020) | Plan | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance | | :--- | :--- | :--- | :--- | | Primerica, Inc. Second Amended and Restated 2020 Omnibus Incentive Plan | 344,089 | $44.23 | 1,870,633 | | Primerica, Inc. Stock Purchase Plan for Agents and Employees | - | - | 1,847,874 | | **Total** | **344,089** | **$44.23** | **3,718,507** | - The **344,089 securities to be issued** include 192,371 unvested restricted stock units, 69,922 outstanding stock options, and 81,796 performance stock units (at target performance)[674](index=674&type=chunk) - Further information on security ownership is **incorporated by reference** from the Proxy Statement[675](index=675&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=112&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related transactions and director independence is incorporated by reference from the 2021 Proxy Statement - Information on certain relationships and related transactions, and director independence is **incorporated by reference** from the 2021 Proxy Statement[676](index=676&type=chunk)[677](index=677&type=chunk) [Item 14. Principal Accounting Fees and Services](index=112&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information on principal accounting fees and services is incorporated by reference from the 2021 Proxy Statement - Information on principal accounting fees and services is **incorporated by reference** from the 2021 Proxy Statement, including the ratification of KPMG LLP and details on the Audit Committee[677](index=677&type=chunk) PART IV [Item 15. Exhibits, Financial Statement Schedules](index=113&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements, supplementary schedules, and exhibits filed with the report - The report includes consolidated financial statements (Balance Sheets, Statements of Income, Comprehensive Income, Stockholders' Equity, Cash Flows) and notes[678](index=678&type=chunk) - Financial statement schedules include Consolidated Summary of Investments, Condensed Financial Information of Registrant, Supplementary Insurance Information, and Reinsurance[679](index=679&type=chunk) - An **Exhibit Index** details various agreements and documents, including corporate governance documents, credit agreements, coinsurance agreements, and share-based compensation plans, incorporated by reference or filed[680](index=680&type=chunk)[684](index=684&type=chunk)[685](index=685&type=chunk)[686](index=686&type=chunk) [SIGNATURES](index=126&type=section&id=SIGNATURES) The report is certified by the company's principal executive and financial officers and directors as of March 1, 2021 - The report is signed by **Alison S. Rand**, Executive Vice President and Chief Financial Officer, and **Glenn J. Williams**, Chief Executive Officer, along with other directors, on March 1, 2021[729](index=729&type=chunk)

Earnings Results Quarter ended December 31, 2020 1 Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation may contain forward-looking statements and information. Additional information on factors that could cause results to differ materially from those projected in this presentation is available in our Form 10-K for the year ended December 31, 2019, as may be updated by our quarterly reports on Form 10-Q, available in the "Investor Relations" section of our w ...

Financial Data and Key Metrics Changes - Adjusted operating revenues for Q4 2020 were $595 million, a 12% increase compared to Q4 2019, while diluted adjusted operating income per share was $2.45, up 10% year-over-year [9] - Full year adjusted operating revenues reached $2.2 billion, growing 9%, and diluted adjusted operating income per share was $9.70, a 15% increase [9] - Adjusted operating ROAE for Q4 was 23.4%, slightly down from 23.7% in the previous year, while full year adjusted operating ROE was 24.7%, up from 23.5% in 2019 [9] Business Line Data and Key Metrics Changes - In the term life segment, operating revenues increased 16% year-over-year to $369 million, with operating income growing 9% to $89 million [19] - The number of new policies issued in the term life segment rose by 22% year-over-year, reaching a record level of base amount issued in 2020 [20] - Investment and Savings Products segment saw operating revenues of $193 million, a 6% increase, with pretax income rising 7% to $57 million [24] Market Data and Key Metrics Changes - The company reported annual term life placed in force of over $109 billion and investment sales exceeding $7.8 billion, with client asset values totaling $82 billion at year-end [7] - Fourth quarter net client inflows in the investment segment were robust at $642 million, significantly outpacing the prior year due to higher sales and lower redemptions [12] Company Strategy and Development Direction - The company plans to continue capital deployment, with a Board authorization to repurchase up to $300 million in common stock through June 2022 and an 18% increase in the first quarter dividend to $0.47 per share [10] - The company is focusing on adapting to the ongoing pandemic by rescheduling its biannual convention to summer 2022 and planning a series of virtual meetings and incentives to maintain momentum [14] Management's Comments on Operating Environment and Future Outlook - Management noted that the pandemic revealed weaknesses in financial planning for many middle-income families, leading to increased demand for financial solutions [6] - The company anticipates that while sales volume may moderate from record 2020 levels, there will be sustained client sentiment in favor of their products and opportunities [15][17] - The uncertainty surrounding the COVID pandemic makes it difficult to project results, but management expects adjusted direct premiums to continue growing in the 12% to 13% range for the full year [23] Other Important Information - The company returned a total of $296 million in capital to stockholders in 2020, representing a 5% increase compared to 2019, with a total payout rate of 76% of adjusted operating earnings [10] - The invested assets portfolio remains well diversified, with a net unrealized gain of $153 million at year-end and a strong liquidity position with $350 million in cash [28][29] Q&A Session Summary Question: Can you provide expectations on operating margin within the term life business? - Management indicated that it is unusually difficult to predict outcomes for the year, but they continue to see strong results in sales and persistency [32][33] Question: How should we think about persistency normalizing later in the year? - Management noted that while persistency may revert to historical levels, it could still be considered positive as it reflects a return to normalcy [34] Question: What are the expectations for the benefit ratio moving forward? - Management mentioned that the benefit ratio could trend closer to 58% versus 59%, but predicting future trends remains challenging due to ongoing uncertainties [39] Question: Are agents showing more interest in selling investment products? - Management confirmed that agents are attracted to successful lines of business, and there is a positive dynamic as agents shift focus between life insurance and investment products [40][41]

Financial Data and Key Metrics Changes - Adjusted operating revenues for the third quarter were $567 million, an increase of 9% year-over-year [8] - Adjusted net operating income rose to $111 million, reflecting a 16% increase [8] - Diluted adjusted operating income per share increased by 23% to $2.78 [9] - Operating return on average equity (ROAE) improved to 28% from 24.9% in the previous year [9] Business Line Data and Key Metrics Changes - Term Life segment operating revenues grew 14% year-over-year to $358 million, with operating income before taxes increasing by 26% to $105 million [19] - Investment and Savings Products (ISP) segment operating revenues increased by 2% to $176 million, while pre-tax income grew by 5% to $51 million [26] - New life insurance policies issued reached 100,199, a 36% increase year-over-year [12] - Sales of managed accounts increased by 26%, while mutual fund sales rose by 5% [13] Market Data and Key Metrics Changes - Client asset values ended the quarter at $73 billion, up 10% year-over-year, with average client asset values increasing by 8% to $71.5 billion [14] - Net client inflows during the third quarter were $508 million, significantly higher than the previous year [14] - The number of temporary and permanent licenses issued during the quarter was 13,138, up 4% year-over-year [11] Company Strategy and Development Direction - The company is focusing on technology infrastructure and digital initiatives to modernize its business [28] - There is a strong emphasis on maintaining recruiting momentum and adapting to the operational challenges posed by COVID-19 [7][10] - The mortgage distribution business is progressing, with strong demand for refinancing mortgage and consumer debt [16] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are positive impacts from the pandemic, such as increased demand for insurance, there are also challenges like market uncertainty affecting ISP sales [7][8] - The company expects fourth quarter ISP sales to decline approximately 5% compared to the same period in 2019, while life insurance sales are projected to increase by 15% to 20% [15][16] - Management expressed confidence in the ability to meet increased demand for life insurance protection, aiming to issue over $100 billion of new face amount during 2020 [15] Other Important Information - The company declared a $0.40 per share dividend and completed approximately $231 million in share repurchases through the end of October [30] - The average credit rating of the invested assets portfolio remains at A, with a manageable below investment grade mix of about 4% [29] Q&A Session Summary Question: Impact on recruiting due to COVID-19 - Management indicated that the momentum prior to the pandemic contributed positively to recruiting, and the use of remote capabilities has enhanced outreach [37][39] Question: Changes in recruiting methods - The recruiting process has shifted significantly towards electronic methods, with Zoom and social media playing a crucial role in connecting with potential recruits [40][44] Question: Future expense guidance - Management noted that it is early to provide specific guidance for next year, but expenses are expected to increase moderately due to ongoing investments in technology and infrastructure [46][48] Question: Conversion rates for new life licensed representatives - Management reported improvements in the conversion rates for permanent licenses, although challenges remain due to testing and processing delays [52][53] Question: Update on sales agents for investment products - The number of sales agents licensed to sell investment products has remained flat, with slight increases noted [57][58]

Earnings Results Quarter ended September 30, 2020 Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation may contain forward-looking statements and information. Additional information on factors that could cause results to differ materially from those projected in this presentation is available in our Form 10-K for the year ended December 31, 2019, as may be updated by our quarterly reports on Form 10-Q, available in the "Investor Relations" section of our we ...

Primerica, Inc. (NYSE:PRI) Q2 2020 Earnings Conference Call August 6, 2020 10:00 AM ET Company Participants Nicole Russell - Head of Investor Relations Glenn Williams - Chief Executive Officer Alison Rand - Chief Financial Officer Conference Call Participants Andrew Kligerman - Credit Suisse Dan Bergman - Citi Mark Hughes - Truist Securities Operator Hello. I would like to welcome everyone to the Primerica Second Quarter Earnings Results Conference Call and Webcast. [Operator Instructions] As a reminder tod ...

Earnings Results Quarter Ended March 31, 2020 Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation may contain forward-looking statements and information. Additional information on factors that could cause results to differ materially from those projected in this presentation is available in our Form 10-K for the year ended December 31, 2019, as may be updated by our quarterly reports on Form 10-Q, available in the "Investor Relations" section of our websit ...