Core Insights - Nabeel Bukhari combines legal expertise in company and corporate law with self-taught financial analysis skills, providing a unique perspective on business dynamics [1] - His work has been published on respected platforms such as InvestorPlace and GuruFocus, and featured in notable publications like Forbes, Yahoo Finance, and MSN [1] Group 1 - Nabeel Bukhari is a law graduate specializing in company and corporate law [1] - He possesses self-taught expertise in financial analysis, enhancing his insights into business dynamics [1] - His contributions extend beyond traditional academics, making him a valuable asset in the financial realm [1] Group 2 - Bukhari's insights have been recognized and published by respected financial platforms [1] - He has collaborated with other authors, including Saba Sadiq, indicating a network within the financial analysis community [1]

Core Insights - The Primerica Household Budget Index (HBI) was reported at 100.2% in August, reflecting a 0.1% increase from the previous month and a 0.8% increase from the same month last year [1] Economic Indicators - The Consumer Price Index (CPI) rose by 2.9% in August compared to the previous year, indicating inflationary pressures on a comprehensive basket of goods for all U.S. households [1]

Group 1 - Primerica (NYSE:PRI) was upgraded at BMO, indicating that the company is still performing well despite facing some macroeconomic challenges [1] - Shares of Primerica increased by 0.83% in pre-market trading, reaching a price of $274.53 [1] - The company has demonstrated to investors that a captive or exclusive salesforce is effective [1]

Analyst Upgrades and Price Target Changes - Citigroup analyst Paul Diamond upgraded Antero Resources Corporation (AR) from Neutral to Buy, raising the price target from $37 to $39, with shares closing at $32.58 [6] - Wells Fargo analyst Michael Turrin upgraded CoreWeave, Inc. (CRWV) from Equal-Weight to Overweight, increasing the price target from $105 to $170, with shares closing at $133.23 [6] - Guggenheim analyst Vamil Divan upgraded Johnson & Johnson (JNJ) from Neutral to Buy, raising the price target from $167 to $206, with shares closing at $174.21 [6] - Deutsche Bank analyst Niall Alexander upgraded Alvotech (ALVO) from Hold to Buy, announcing a price target of $14, with shares closing at $8.01 [6] - BMO Capital analyst Jack Matten upgraded Primerica, Inc. (PRI) from Market Perform to Outperform, increasing the price target from $292 to $318, with shares closing at $272.28 [6]

Industry Overview - The Zacks Life Insurance industry includes companies providing life insurance coverage and retirement benefits, with products such as annuities, whole and term life insurance, and health insurance [2] - The life insurance market is projected to grow, with gross written premiums expected to reach $1.34 trillion by 2025, driven by increasing demand for protection products and retirement benefits due to a rising number of baby boomers [2] - The industry is experiencing accelerated technology adoption, although rising mortality trends may impact profitability [2] Trends Impacting the Industry - The Federal Reserve has lowered interest rates by 25 basis points to a range of 4%-4.25%, with indications of further cuts, which may challenge life insurers as they invest premiums to meet guaranteed obligations [3][4] - Life insurance sales are expected to grow by 2%-6% in 2025, with new annualized premium growth across various life insurance products [3] - Insurers are redesigning products to focus on bundled covers that provide living benefits, reflecting customer preferences [4] Technological Advancements - The U.S. life insurance market is shifting towards digital platforms, with insurers leveraging AI and machine learning for customized coverages and premium calculations [5] - Increased automation is anticipated to enhance premium growth and operational efficiency, while also helping to manage costs [5] Industry Performance - The Zacks Life Insurance industry currently holds a Zacks Industry Rank of 73, placing it in the top 30% of 255 Zacks industries, indicating strong near-term prospects [7][8] - Year-to-date, the Life Insurance industry has underperformed compared to the Finance sector and the S&P 500, with a collective gain of 0.1% against 14.7% and 13.8% respectively [9] Valuation Metrics - The industry is trading at a trailing 12-month price-to-book (P/B) ratio of 1.91X, compared to the S&P 500's 8.7X and the Finance sector's 4.36X [11] Company Highlights - **Aviva**: Expected earnings growth of 23.6% and 13.2% for 2025 and 2026 respectively, with a strong performance across all business lines [16][17] - **Primerica**: Anticipated earnings growth of 8.1% and 8.5% for 2025 and 2026, benefiting from strong demand for protection products [20][21] - **Lincoln Financial**: Projected earnings growth of 5.8% and 3.2% for 2025 and 2026, supported by a recovering Group Protection business [24][25] - **Voya Financial**: Expected earnings growth of 26.3% for 2025, driven by a focus on high-growth, capital-light businesses [28][29] - **Jackson Financial**: Anticipated earnings growth of 8.8% and 8.6% for 2025 and 2026, with a strong focus on diversified product sales [32][33]

Market Overview - The current market is characterized by a split, with gold prices rising, bonds declining, and stocks fluctuating as new sectors emerge to replace technology [1] - The end of a historic yield-curve inversion and a potential Federal Reserve cutting cycle are significant for investors, particularly in precious metals and bonds [1][2] Gold and Bonds - Traditional bond benchmarks may not provide the safety that investors expect, while gold is experiencing a breakout due to renewed deflation risks [2] - Central bank gold buying and ETF flows are important factors for investors to consider when balancing inflation and deflation in their portfolios [2] Dollar and Inflation - The purchasing power of the dollar has decreased by nearly 50% over the past 25 years, while gold has increased by over 1,052% in the same period [4][5] - The dollar's decline is attributed to expansive monetary policies and rising national debt, which has grown from $5.6 trillion in 2000 to over $36.2 trillion in 2025 [8][9] Primerica Inc. (PRI) Performance - Primerica provides term life insurance and has shown strong historical performance, with earnings per share (EPS) growing at a compound annual rate of 15.6% over the past decade [10] - As of June 30, Primerica insured over 5.5 million lives and had approximately three million client investment accounts, with total adjusted operating revenue increasing by 7.4% year-over-year to $796 million [11] - The company's adjusted EPS of $5.46 grew 10.3% compared to the previous year, exceeding analyst consensus by $0.26 [12] - Primerica is expected to grow EPS at about 10% annually over the next five years, driven by sales force expansion and share repurchases [13]

Group 1: Market Trends and Insights - Technology stocks experienced significant selling pressure as investors shifted focus from high-performing stocks to previously underperforming ones [1] - Nicholas Bohnsack discussed the implications of monetary policy, inflation trends, and labor market pressures, highlighting key investing themes for 2025 [2][3] - The current market environment is influenced by factors such as AI's growing impact and the realities of deglobalization, prompting a reevaluation of traditional investment strategies [3] Group 2: Stock Buybacks and Foreign Investment - US companies have announced a record $983.6 billion in stock buybacks this year, with the largest 20 companies accounting for nearly half of these repurchases [3] - Since 2006, foreign investments in US assets have exceeded US investments abroad by approximately $26 trillion, with nearly $2 trillion in foreign capital inflows recorded in 2023 [4] Group 3: Primerica Inc. Financial Performance - Primerica Inc. reported a 7.4% year-over-year increase in total adjusted operating revenue, reaching $796 million for the second quarter ended June 30 [9] - The company's adjusted EPS grew by 10.3% year-over-year to $5.46, surpassing analyst expectations by $0.26 [10] - Primerica is projected to achieve an annual EPS growth rate of about 10% over the next five years, driven by sales force expansion and share repurchases [11] Group 4: Investment Characteristics - The Tweedy, Browne Insider and Value ETF targets value, international, and small-cap stocks, focusing on low price-to-book and price-to-earnings multiples, share repurchases, and above-average dividend yields [12]

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited).) This section presents Primerica's unaudited condensed consolidated financial statements and detailed notes for the period ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets, liabilities, and stockholders' equity increased to $14.83 billion, $12.52 billion, and $2.31 billion respectively, as of June 30, 2025 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$14,829,833** | **$14,582,022** | | Total Investments | $4,436,299 | $4,331,042 | | Deferred policy acquisition costs, net | $3,817,119 | $3,680,430 | | **Total Liabilities** | **$12,522,318** | **$12,322,981** | | Future policy benefits | $6,719,044 | $6,503,064 | | Note payable | $594,913 | $594,512 | | **Total Stockholders' Equity** | **$2,307,515** | **$2,259,041** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net income for Q2 2025 was $178.3 million, up from $1.2 million in Q2 2024 due to discontinued operations, while continuing operations income decreased to $178.3 million Income Statement Summary (in thousands, except per-share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $793,334 | $790,955 | $1,598,177 | $1,526,904 | | Income from Continuing Operations | $178,344 | $209,302 | $347,395 | $357,715 | | Loss from Discontinued Operations | - | $(208,131) | - | $(218,641) | | **Net Income** | **$178,344** | **$1,171** | **$347,395** | **$139,074** | | Diluted EPS (Continuing) | $5.40 | $6.07 | $10.45 | $10.28 | | **Diluted EPS (Total)** | **$5.40** | **$0.03** | **$10.45** | **$3.99** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to $360.0 million for the six months ended June 30, 2025, with investing and financing activities resulting in a $66.6 million net decrease in cash and cash equivalents Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $360,042 | $384,182 | | Net cash used in investing activities | $(100,471) | $(56,509) | | Net cash used in financing activities | $(328,745) | $(311,533) | | **Change in cash and cash equivalents** | **$(66,623)** | **$14,144** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail financial statements, covering discontinued Senior Health operations, segment performance, investment portfolio, reinsurance, and the share repurchase program - The company abandoned its ownership in e-TeleQuote Insurance, Inc. (the "Senior Health business") on **September 30, 2024**, with its results now reported in **discontinued operations** for all periods presented[32](index=32&type=chunk)[33](index=33&type=chunk) Discontinued Operations Summary (in thousands) | Metric | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $12,420 | $19,300 | | Impairment of goodwill and other long-lived assets | $253,607 | $253,607 | | Loss before income taxes | $(264,972) | $(279,125) | | **Loss from discontinued operations, net of taxes** | **$(208,131)** | **$(218,641)** | Income Before Income Taxes by Segment (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Term Life Insurance | $155,012 | $147,779 | $301,797 | $286,148 | | Investment and Savings Products | $79,421 | $74,782 | $160,691 | $140,345 | | Corporate and Other | $64 | $50,208 | $(6,676) | $39,664 | - As of June 30, 2025, the company had repurchased **901,663 shares** for **$247.1 million** under its current share repurchase program, with approximately **$202.9 million** remaining available for future repurchases through December 31, 2025[78](index=78&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses financial performance, business trends, and operational drivers, including economic impacts on policy persistency and sales force, alongside financial condition, liquidity, and capital resources [Business Trends and Conditions](index=35&type=section&id=Business%20Trends%20and%20Conditions) Economic conditions, including inflation, are impacting middle-income households, adversely affecting term life insurance persistency and slowing sales force recruiting, despite strong equity markets benefiting investment products - The cumulative impact of inflation has led to an elevated cost of living, which has adversely impacted **persistency for term life insurance policies**, with lapse rates remaining above long-term historical levels[108](index=108&type=chunk) Sales Force Recruiting and Licensing Activity | Metric | Three Months Ended June 30, 2025 (count) | Three Months Ended June 30, 2024 (count) | Six Months Ended June 30, 2025 (count) | Six Months Ended June 30, 2024 (count) | | :--- | :--- | :--- | :--- | :--- | | New recruits | 80,924 | 96,563 | 181,791 | 207,273 | | New life-licensed reps | 12,903 | 14,402 | 25,242 | 27,351 | Term Life Insurance Policies Issued | Metric | Three Months Ended June 30, 2025 (count) | Three Months Ended June 30, 2024 (count) | Six Months Ended June 30, 2025 (count) | Six Months Ended June 30, 2024 (count) | | :--- | :--- | :--- | :--- | :--- | | Number of new policies issued | 89,850 | 100,768 | 176,265 | 187,355 | Investment and Savings Product Sales (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total product sales | $3,548 | $3,083 | $7,108 | $5,853 | [Results of Operations](index=48&type=section&id=Results%20of%20Operations) For Q2 2025, total revenues were flat at $793.3 million, while income from continuing operations decreased 15% to $178.3 million, primarily due to a prior year one-time gain affecting segment results Consolidated Results Summary (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $793,334 | $790,955 | $2,379 | * | | Total Benefits and Expenses | $558,837 | $518,186 | $40,651 | 8% | | Income from Continuing Operations | $178,344 | $209,302 | $(30,958) | (15)% | - The decrease in income from continuing operations in Q2 2025 was primarily due to a **one-time $50.0 million gain** recognized in Other, net revenue in the Corporate and Other Distributed Products segment in Q2 2024[155](index=155&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=55&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) The company maintains a conservative investment strategy with an 'A' rated fixed-maturity portfolio, holding $371.0 million in Parent Company cash, and subsidiaries exceeding regulatory capital requirements, ensuring sufficient liquidity - The company follows a conservative investment strategy to preserve assets and provide liquidity, with its fixed-maturity portfolio having an average rating of **'A'** as of June 30, 2025[186](index=186&type=chunk)[191](index=191&type=chunk) - As of June 30, 2025, the Parent Company had **$371.0 million** in cash and invested assets, primarily sourced from subsidiary dividends[192](index=192&type=chunk) - The company's U.S. life insurance subsidiaries maintained statutory capital substantially in excess of regulatory **RBC requirements**, and the Canadian subsidiary was in compliance with **OSFI's minimum capital requirements**[201](index=201&type=chunk)[202](index=202&type=chunk) - The company maintains a **$200.0 million unsecured Revolving Credit Facility**, which had no outstanding balance as of June 30, 2025[211](index=211&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) There have been no material changes in the Company's exposures to market risk since December 31, 2024 - There have been **no material changes** in the Company's exposures to market risk since December 31, 2024[226](index=226&type=chunk) [Item 4. Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management, including the CEO and CFO, concluded the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the Company's **disclosure controls and procedures were effective** as of June 30, 2025[227](index=227&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter ended June 30, 2025[228](index=228&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=65&type=section&id=Item%201.%20Legal%20Proceedings.) The company is involved in various legal disputes and regulatory inquiries, but as of the report date, no pending legal proceeding is believed to require disclosure - The company reports that it does not believe any **pending legal proceeding requires disclosure** as of the date of this report[230](index=230&type=chunk) [Item 1A. Risk Factors](index=65&type=section&id=Item%201A.%20Risk%20Factors.) This section updates a risk factor heading to "Risks Related to Legislative and Regulatory Changes and Government Policy Uncertainty," highlighting exposure to laws and regulations that could require business adjustments - The company updated a risk factor heading to "**Risks Related to Legislative and Regulatory Changes and Government Policy Uncertainty**" to better reflect risks from laws, regulations, and government policies that could require business practice alterations[231](index=231&type=chunk)[232](index=232&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) During Q2 2025, the company repurchased **488,027 shares** of common stock at an average price of **$264.55** per share, with approximately **$202.9 million** remaining available for repurchase as of June 30, 2025 Share Repurchases for Quarter Ended June 30, 2025 | Period | Total Shares Purchased (shares) | Average Price Paid per Share (USD) | Value Remaining Under Program (USD) | | :--- | :--- | :--- | :--- | | April 2025 | 173,466 | $259.45 | $287,020,932 | | May 2025 | 157,252 | $270.25 | $244,523,936 | | June 2025 | 157,309 | $264.48 | $202,919,455 | | **Total** | **488,027** | **$264.55** | **$202,919,455** |

Financial Data and Key Metrics Changes - Adjusted net operating income was $180 million in Q2 2025, up 6% year over year, while diluted adjusted operating EPS increased 10% to $5.46 [5] - Total stockholder returns during the quarter amounted to $163 million, comprising $129 million in share repurchases and $34 million in regular dividends [5] - Consolidated insurance and other operating expenses were $154 million, an increase of 8% year over year, primarily due to higher variable growth-related costs and technology investments [19] Business Line Data and Key Metrics Changes - Term Life segment revenues were $442 million, up 3% year over year, with pretax income of $155 million, also up 5% [14] - ISP segment sales increased 15% to $3.5 billion, with net inflows of $487 million compared to $227 million in the prior year [9] - The mortgage business reported closed loan volume of $133 million in the U.S., up 33% year over year, and $45 million in Canada, up 30% [12] Market Data and Key Metrics Changes - The number of new term life insurance policies issued was 89,850, with a total face amount in force reaching a record $968 billion [8] - The average client asset values in the ISP segment ended the quarter at $120 billion, up 14% year over year [9] - The recruiting activity saw over 80,000 individuals recruited in Q2, with nearly 13,000 new representatives licensed, down 10% from the previous year [6] Company Strategy and Development Direction - The company aims to grow its sales force by 23% in 2025, focusing on attracting new recruits amid economic uncertainties [7] - The complementary nature of the ISP and Term Life businesses is emphasized, with ISP sales helping to offset headwinds in life sales [13] - The company is committed to maintaining a strong capital position while supporting growth initiatives and returning capital to stockholders [21] Management's Comments on Operating Environment and Future Outlook - Management noted that economic and government policy uncertainties continue to impact middle-income families, leading to a wait-and-see attitude affecting term life sales [28] - The company expects the total number of new life policies issued to decline around 5% in 2025 compared to 2024, reflecting ongoing cost of living pressures [8] - Management remains optimistic about the long-term value delivery for clients and stockholders despite current challenges [13] Other Important Information - The company corrected its methodology for calculating outflows and market value for Canadian mutual fund assets, which had no impact on financial statements [10] - The RBC ratio for Primerica Life was reported at 490%, indicating a strong capital position [21] Q&A Session Summary Question: Decline in term life sales and revised guidance - Management attributed the decline to cost of living pressures and uncertainty, leading to a wait-and-see attitude among middle-income families [28] Question: Impact of cost of living on recruiting new agents - Management confirmed that financial stress can create opportunities for recruiting as individuals seek additional income [32] Question: Favorable mortality trends and potential changes in assumptions - Management indicated that favorable mortality trends have been observed for over ten quarters, with a review planned for Q3 [38] Question: ISP sales margin dynamics - Management explained that variable growth-related expenses and higher commissions impacted the ISP sales margin [40] Question: Outlook for ISP sales growth - Management expects continued strength in ISP sales but anticipates more difficult comparisons in the second half of the year [46] Question: Trends in mortgage business growth - Management expressed optimism about the mortgage business, particularly if interest rates decrease, which could drive refinancing opportunities [69] Question: Expense results in Q2 - Management noted that Q2 expenses were influenced by timing and technology investments, with a full-year guidance of a 6% to 8% increase [76] Question: Efforts to grow ISP sales force - Management highlighted ongoing efforts to grow the sales force and improve diversity in selling both Term Life and ISP products [80] Question: Term Life sales relative to the industry - Management indicated that the company is experiencing similar challenges as the industry, with a slight lag in performance this year [88] Question: Productivity concerns in the sales force - Management acknowledged that productivity is affected by the growth of the sales force and the current economic environment, but expects it to normalize over time [95]

Financial Data and Key Metrics Changes - Adjusted net operating income for Q2 2025 was $180 million, reflecting a 6% year-over-year increase, while diluted adjusted operating EPS rose 10% to $5.46 [5] - Total capital returned to stockholders during the quarter was $163 million, comprising $129 million in share repurchases and $34 million in regular dividends [5] - The company ended the quarter with $371 million in cash and invested assets, with an estimated RBC ratio of 490% [20][56] Business Line Data and Key Metrics Changes - Term Life segment revenues for Q2 2025 were $442 million, up 3% year-over-year, driven by a 5% growth in adjusted direct premiums [13] - ISP segment sales increased 15% to $3.5 billion, with net inflows of $487 million compared to $227 million in the prior year [8] - The mortgage business saw closed loan volume of $133 million in the U.S., up 33% year-over-year, and $45 million in Canada, up 30% [11] Market Data and Key Metrics Changes - The number of new term life insurance policies issued declined by 19% year-over-year, with a total face amount in force reaching a record $968 billion [7] - Client asset values in the ISP segment ended the quarter at $120 billion, up 14% year-over-year [8] - The company recruited over 80,000 individuals in Q2, with 13,000 new representatives licensed, a 10% decrease from the previous year [5][6] Company Strategy and Development Direction - The company aims to grow its sales force by 23% in 2025, emphasizing the importance of recruiting during economic uncertainty [6] - The complementary nature of ISP and Term Life products is highlighted, with ISP sales helping to offset headwinds in life sales [12] - The company is committed to investing in technology and infrastructure to support growth in the ISP segment [18] Management's Comments on Operating Environment and Future Outlook - Management noted that cost of living pressures and economic uncertainty have led to a "wait and see" attitude among middle-income families, impacting term life sales [25][29] - There is confidence that middle-income families will adapt to economic conditions over time, and the company expects a normalization of persistency rates [14][46] - The company anticipates continued strong demand for retirement savings products, driven by demographic trends [9][62] Other Important Information - The company corrected its methodology for calculating outflows and market value for Canadian mutual fund assets, which had no impact on financial statements [9] - The net unrealized loss in the investment portfolio improved, ending the quarter with a loss of $158 million, attributed to interest rates rather than credit concerns [19] Q&A Session Summary Question: Decline in term life sales and cost of living impact - Management indicated that the decline in term life sales is due to cost of living pressures and uncertainty, leading to a wait-and-see attitude among families [25][29] Question: Recruitment opportunities amid economic pressures - Management confirmed that financial stress can create opportunities for recruiting new agents, as individuals seek additional income [31] Question: Favorable mortality trends - Management noted that favorable mortality trends have been observed for over ten quarters, with potential adjustments to long-term assumptions being considered [36] Question: ISP sales growth expectations - Management expects ISP sales growth to moderate but remain strong, with continued strength observed in July [44] Question: Capital deployment and RBC ratio - Management explained that the RBC ratio is influenced by regulatory restrictions and the desire to maintain a strong capital position to support growth [56] Question: Dynamics in different product areas - Management discussed the mix shift in product sales, noting that variable annuities are gaining traction due to market conditions [62] Question: Trends in mortgage business - Management expressed optimism about the mortgage business, particularly if interest rates decline, which could lead to refinancing opportunities [67] Question: Expense results in Q2 - Management indicated that Q2 expenses were influenced by timing and technology investments, with a full-year guidance of a 6% to 8% increase [74] Question: Efforts to grow ISP sales force - Management highlighted ongoing efforts to grow the ISP sales force and increase diversity in sales across product lines [78]