Group 1 - Primerica's shares have performed well over the past year but have not yet returned to pre-Liberation Day levels despite the market reaching all-time highs [1] - The company has over fifteen years of experience in making contrarian bets based on macro views and stock-specific turnaround stories [1]

Core Insights - Primerica, Inc. reported strong first-quarter earnings driven by robust Term Life sales, Investment and Savings Product sales, and higher premiums, although increased benefits and expenses may have affected investor sentiment [1][4] Financial Performance - Adjusted earnings per share for Q1 2025 were $5.02, exceeding the Zacks Consensus Estimate by 5.2% and reflecting a 28.4% increase year-over-year [2] - Total revenue for the quarter rose 8.3% year-over-year to $803.6 million, surpassing the consensus estimate by 2.1% [2] - Net premiums reached $448.3 million, a 4% increase from the previous year, but fell short of the consensus by 0.7% [3] - Net investment income increased by 10.2% year-over-year to $41.7 million, beating the consensus by 4.8% [3] - Commissions and fees grew by 19.3% year-over-year to $297 million, exceeding the consensus by 7.3% [3] Expense and Income Analysis - Total benefits and expenses increased by 7.6% to $583.5 million, driven by higher claims and operating costs [4] - Adjusted net operating income rose 14% year-over-year to $168.1 million [4] Segment Performance - Term Life Insurance segment saw adjusted operating revenues increase by 4% to $457.8 million, with operating income before taxes rising 6% to $146.8 million [5] - Investment and Savings Products segment reported a 19% increase in adjusted operating revenues to $290.8 million, with operating income before taxes up 24% to $81.3 million [6] - Corporate and Other Distributed Products segment's adjusted operating revenues rose 8% to $54.9 million, although it reported an operating loss of $8 million [7] Financial Position - As of March 31, 2025, cash and cash equivalents were $625.1 million, down from $687.8 million at the end of 2024 [8] - Total assets remained stable at $14.6 billion, while total shareholders' equity decreased by 0.1% to $2.3 billion [8] Capital Management - The company repurchased shares worth $118 million during the first quarter [10] - A dividend of $1.04 per share was approved, to be paid on June 13, 2025 [11]

Financial Performance - GAAP营收为8.048亿美元，同比增长9%[7] - 来自持续经营业务的GAAP净利润为1.691亿美元，同比增长14%[7] - GAAP每股摊薄收益为5.05美元，同比增长19%[7] - 调整后的运营收入为8.036亿美元，同比增长9%[8] - 调整后的运营每股摊薄收益为5.02美元，同比增长20%[8] Capital Deployment - 公司回购了价值1.18亿美元的普通股[12] - 派发了3500万美元的普通股股东股息[12] Distribution - 人寿保险销售队伍增长7%，达到152,167人[13, 16] - 招募人数为100,867人，同比下降9%[13] Production - Term Life Insurance - 发放了超过86,000份人寿保险单[22] - 新增280亿美元的定期寿险保障，总保障额达到9570亿美元[22] Production - Investment and Savings Products (ISP) - 产品销售额创纪录，达到36亿美元，同比增长28%[23, 27] - 客户资产价值同比增长6%，达到1099亿美元[23, 27]

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)%2E) Primerica's Q1 2025 net income increased 23% to $169.1 million, driven by strong Investment and Savings Products performance and stable total assets [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Items | Balance Sheet Items | March 31, 2025 (In thousands) | December 31, 2024 (In thousands) | | :--- | :--- | :--- | | Total Investments | $4,444,803 | $4,331,042 | | Total Assets | $14,589,010 | $14,582,022 | | Total Liabilities | $12,332,601 | $12,322,981 | | Total Stockholders' Equity | $2,256,409 | $2,259,041 | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Income Statement Items | Income Statement Items | Three months ended March 31, 2025 (In thousands) | Three months ended March 31, 2024 (In thousands) | | :--- | :--- | :--- | | Total Revenues | $804,843 | $735,950 | | Total Benefits and Expenses | $583,528 | $542,561 | | Income from Continuing Operations | $169,051 | $148,414 | | Net Income | $169,051 | $137,904 | | Diluted Earnings Per Share | $5.05 | $3.93 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Activities | Cash Flow Activities | Three months ended March 31, 2025 (In thousands) | Three months ended March 31, 2024 (In thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $197,466 | $210,898 | | Net cash used in investing activities | ($98,752) | ($86,288) | | Net cash used in financing activities | ($161,440) | ($142,890) | | Change in cash and cash equivalents | ($62,749) | ($19,749) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company's Senior Health business results are now reported as discontinued operations, showing a **net loss of $10.5 million** for the three months ended March 31, 2024[33](index=33&type=chunk)[36](index=36&type=chunk) Segment Performance (Q1 2025 vs Q1 2024) | Segment Performance (Q1 2025 vs Q1 2024) | Total Revenues (In thousands) | Income before taxes (In thousands) | | :--- | :--- | :--- | | **Term Life Insurance** | | | | Q1 2025 | $457,841 | $146,785 | | Q1 2024 | $440,412 | $138,367 | | **Investment and Savings Products** | | | | Q1 2025 | $290,812 | $81,271 | | Q1 2024 | $243,716 | $65,562 | | **Corporate and Other** | | | | Q1 2025 | $56,190 | ($6,741) | | Q1 2024 | $51,822 | ($10,540) | - As of March 31, 2025, available-for-sale fixed-maturity securities had **gross unrealized losses of $192.3 million**, primarily due to interest rate changes[42](index=42&type=chunk)[53](index=53&type=chunk) - The company utilizes reinsurance extensively, with **86% of its direct life insurance in-force** being ceded to other companies as of March 31, 2025[69](index=69&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%2E) Total revenues grew 9% in Q1 2025, led by a 19% increase in the Investment and Savings Products segment, while the company repurchased $118.0 million in stock [Business Trends and Conditions](index=33&type=section&id=Business%20Trends%20and%20Conditions) Sales Force Metrics | Sales Force Metrics | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | New Recruits | 100,867 | 110,710 | | New Life-Licensed Reps | 12,339 | 12,949 | | Total Life-Licensed Reps (End of Period) | 152,167 | N/A | Investment & Savings Product Sales (In millions) | Investment & Savings Product Sales (In millions) | Q1 2025 | Q1 2024 | Change % | | :--- | :--- | :--- | :--- | | U.S. retail mutual funds | $1,318 | $1,162 | 13% | | Annuities and other | $1,110 | $837 | 33% | | Managed investments | $596 | $371 | 61% | | **Total product sales** | **$3,559** | **$2,770** | **28%** | - Average client asset values **increased by 14% to $113.0 billion** for Q1 2025 compared to Q1 2024, driven by strong market performance and net client inflows[122](index=122&type=chunk)[125](index=125&type=chunk) [Results of Operations](index=44&type=section&id=Results%20of%20Operations) Consolidated Results (In thousands) | Consolidated Results (In thousands) | Q1 2025 | Q1 2024 | Change % | | :--- | :--- | :--- | :--- | | Total Revenues | $804,843 | $735,950 | 9% | | Income from Continuing Operations | $169,051 | $148,414 | 14% | | Net Income | $169,051 | $137,904 | 23% | - The Term Life Insurance segment's pre-tax income **grew 6% YoY to $146.8 million**, driven by growth in the in-force book of business[158](index=158&type=chunk) - The Investment and Savings Products segment's pre-tax income **surged 24% YoY to $81.3 million**, fueled by higher sales and asset-based revenues[164](index=164&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) - The Parent Company held **$407.0 million in cash and invested assets** as of March 31, 2025, for dividends, debt service, and share repurchases[180](index=180&type=chunk) Cash Flow Summary (In thousands) | Cash Flow Summary (In thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $197,466 | $210,898 | | Net cash used in financing activities | ($161,440) | ($142,890) | - The company's U.S. and Canadian life insurance subsidiaries maintained statutory capital **substantially in excess of regulatory requirements** as of March 31, 2025[189](index=189&type=chunk)[190](index=190&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk%2E) The company reports no material changes in its market risk exposures since its 2024 year-end report - There have been **no material changes** in the company's exposures to market risk since December 31, 2024[213](index=213&type=chunk) [Item 4. Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures%2E) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - The CEO and CFO have concluded that the Company's disclosure controls and procedures are **effective** as of March 31, 2025[214](index=214&type=chunk) - There were **no material changes** in internal control over financial reporting during the quarter[215](index=215&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings%2E) The company reports no pending legal proceedings that require disclosure as of the filing date - As of the date of this report, the company does not believe any pending legal proceeding is required to be disclosed[217](index=217&type=chunk) [Item 1A. Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors%2E) Risk factors are incorporated by reference from the company's 2024 Annual Report on Form 10-K - The Risk Factors contained in the 2024 Annual Report are incorporated by reference[218](index=218&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds%2E) The company repurchased $118.0 million of its common stock in Q1 2025, with $332.0 million remaining under its current authorization Share Repurchase Activity (Q1 2025) | Period | Total Shares Purchased | Average Price Paid | Value of Shares Remaining for Repurchase | | :--- | :--- | :--- | :--- | | Jan 2025 | 133,718 | $284.16 | $412,003,329 | | Feb 2025 | 133,032 | $285.56 | $374,014,541 | | Mar 2025 | 176,783 | $285.99 | $332,017,789 | | **Total Q1 2025** | **443,533** | **$285.31** | **$332,017,789** | [Item 5. Other Information](index=59&type=section&id=Item%205.%20Other%20Information) CEO Glenn Williams adopted a Rule 10b5-1 trading plan for the potential sale of up to 10,000 shares of common stock - On March 14, 2025, CEO Glenn Williams adopted a Rule 10b5-1 trading plan to sell up to **10,000 shares** of the company's common stock[220](index=220&type=chunk) [Item 6. Exhibits](index=59&type=section&id=Item%206.%20Exhibits%2E) This section lists the exhibits filed with the quarterly report, including CEO and CFO certifications and XBRL data files - A list of exhibits filed with the report includes CEO/CFO certifications and Inline XBRL documents[222](index=222&type=chunk)

Financial Data and Key Metrics Changes - Adjusted net operating income for Q1 2025 was $168 million, up 14% year over year, while diluted adjusted operating EPS increased 20% to $5.20 [5] - Total stockholder returns during the quarter amounted to $153 million, comprising $118 million in share repurchases and $35 million in regular dividends [5] Business Line Data and Key Metrics Changes - Term Life segment operating revenues rose 4% year over year to $458 million, driven by a 5% growth in adjusted direct premiums [15] - ISP segment total sales were $3.6 billion, up 28% year over year, with net inflows of $839 million compared to $274 million in the prior year [10][11] - The mortgage business in the U.S. saw closed loans of $93.5 million, up 31%, while Canadian closed loans reached $43.3 million, up 78% [12][13] Market Data and Key Metrics Changes - The total number of life license representatives grew slightly, up 7% compared to March 2024, despite a 9% decline in recruiting year over year [7][8] - Client asset values at the end of the quarter were $110 billion, up 6% year over year, although down 2% during the first three months of 2025 due to negative market performance [11] Company Strategy and Development Direction - The company remains committed to growing its sales force, expecting around 3% growth during 2025, despite current economic pressures [8] - The focus on financial education for middle-income families is emphasized as a key driver of success, with a belief that there will always be a need for such services [13][14] Management's Comments on Operating Environment and Future Outlook - Management noted that economic uncertainty has impacted recruiting and term life insurance sales, leading to a cautious decision-making environment [6][9] - The company expects full-year policies issued to be broadly in line with 2024 levels, despite current challenges [9] Other Important Information - The corporate segment incurred a pretax adjusted operating loss of $8 million, an improvement from a loss of $12 million in the prior year [19] - The RBC ratio improved to 470%, reflecting a strong capital position to support growth and absorb uncertainties [22][48] Q&A Session Summary Question: Dynamic between Term Life sales and ISP sales - Management explained that the complementary business model allows different reactions to economic conditions, with term life sales facing more immediate pressure from cost of living while ISP sales remain strong due to demand for guarantees [25][26] Question: ISP sales outlook and ongoing headwinds - Management confirmed that the outlook for ISP sales growth is lower than the first quarter due to ongoing economic uncertainty and strong prior year comparisons [30][31] Question: Recruiting environment and its attractiveness - Management noted that economic uncertainty can make the Primerica opportunity more appealing as individuals seek additional income sources [39][40] Question: Differences in economic conditions between U.S. and Canada - Management indicated that both economies are similar, with recent Canadian election results providing clarity, but overall dynamics are expected to be consistent [55][56] Question: Stock repurchase program amidst market conditions - Management reassured that the stock repurchase program for 2025 remains intact, emphasizing a predictable return on capital for stockholders [58][59] Question: Higher net investment income in the corporate segment - Management attributed the increase in net investment income to portfolio growth and a shift to slightly higher-yielding investments while maintaining a conservative risk profile [66][67] Question: Lapse rates across the term book - Management reported that lapse rates have stabilized and are in line with expectations, despite some recent increases due to economic pressures [78][80] Question: ISP business sales sustainability - Management expressed confidence in the ISP business's ability to maintain sales levels, although market volatility could impact future performance [84][86]

Financial Data and Key Metrics Changes - Adjusted net operating income for Q1 2025 was $168 million, up 14% year over year, while diluted adjusted operating EPS increased 20% to $5.2 [4] - Total stockholder returns during the quarter amounted to $153 million, comprising $118 million in share repurchases and $35 million in regular dividends [4] Business Line Data and Key Metrics Changes - Term Life segment operating revenues rose 4% year over year to $458 million, driven by a 5% growth in adjusted direct premiums [13] - ISP segment total sales were $3.6 billion, up 28% year over year, with net inflows of $839 million compared to $274 million in the prior year [8][9] - The mortgage business in the U.S. saw closed loans of $93.5 million, up 31%, while Canada reported $43.3 million in closed loans, up 78% [10][11] Market Data and Key Metrics Changes - The total number of life license representatives grew slightly since year-end, up 7% compared to March 2024 [6] - Client asset values at the end of the quarter were $110 billion, up 6% year over year, despite a 2% decline in the first three months of 2025 due to negative market performance [9] Company Strategy and Development Direction - The company remains committed to growing its sales force, expecting around 3% growth during 2025 [6] - The focus on financial education for middle-income families is emphasized as a key driver of success, with a belief in the ongoing need for such services [11] Management's Comments on Operating Environment and Future Outlook - Management noted that economic uncertainty has impacted recruiting and term life insurance sales, leading to a 9% decline in recruiting year over year [5] - The company anticipates that the current uncertainty may persist, affecting decision-making and sales momentum [27][34] Other Important Information - The company maintains a full-year outlook for expenses to increase by around $40 million or 6% to 8% in 2025 [19] - The RBC ratio improved to 470%, reflecting a strong capital position to support growth and absorb uncertainties [21][45] Q&A Session Summary Question: Dynamic between Term Life sales and ISP sales - Management explained that the complementary business model allows different reactions to economic conditions, with term life sales facing more immediate pressure from cost of living while ISP sales remain strong due to demand for guarantees [24][25] Question: ISP sales outlook for the year - The outlook for ISP sales growth is lower than the first quarter due to ongoing economic uncertainty and strong comparisons from the previous year [28][29] Question: Recruiting environment - Management noted that uncertainty can slow down recruiting as potential recruits take more time to consider their options [36][37] Question: Health of the economy in Canada - Management indicated that the Canadian economy is similar to the U.S. economy, with both facing uncertainty, but expressed optimism about future growth in Canada [50][53] Question: Stock repurchase program - The company confirmed a stock repurchase program of $450 million for 2025, emphasizing a consistent return on capital for stockholders [55][56] Question: Lapse rates in the term business - Management reported that lapse rates have stabilized and are in line with expectations, despite some recent increases [75][76] Question: ISP business sales sustainability - Management acknowledged the challenges of market volatility but expressed confidence in the sustainability of ISP sales levels [80][81]

Core Insights - Primerica reported revenue of $803.56 million for Q1 2025, an increase of 8.4% year-over-year, with an EPS of $5.02 compared to $3.91 a year ago, exceeding both revenue and EPS consensus estimates [1][3] Financial Performance - Revenue surprise was +2.06% over the Zacks Consensus Estimate of $787.37 million, while the EPS surprise was +5.24% over the consensus estimate of $4.77 [1] - Primerica's stock has returned +7.9% over the past month, underperforming the Zacks S&P 500 composite's +10.6% change [3] Key Metrics - Life-Licensed Sales Force at the end of the period was 152,167, slightly above the average estimate of 152,073 [4] - Life Insurance Policies Issued totaled 86,415, below the average estimate of 90,432 [4] - Recruits numbered 100,867, compared to the average estimate of 111,314 [4] - Average Client Asset Values were $113 billion, in line with the average estimate of $113.01 billion [4] Revenue Breakdown - Revenues from Commissions and Fees were $296.96 million, exceeding the estimate of $276.77 million, representing a +16.4% year-over-year change [4] - Revenues from Other, net, were $17.13 million, slightly below the estimate of $17.34 million, showing a -1.6% year-over-year change [4] - Net Premiums revenue was $448.32 million, slightly below the estimate of $451.57 million, with a +4% year-over-year change [4] - Adjusted Operating Revenues from Investment and Savings Products were $290.81 million, exceeding the estimate of $271.16 million, with a +19.3% year-over-year change [4] - Adjusted Operating Revenues from Term Life Insurance were $457.84 million, below the estimate of $464.46 million, with a +4% year-over-year change [4] - Net Investment Income was $41.67 million, exceeding the estimate of $39.77 million, representing a +10.2% year-over-year change [4] - Adjusted Operating Revenues from Corporate and Other Distributed Products were $54.90 million, above the estimate of $52.47 million, with an +8.4% year-over-year change [4] - Direct Premiums revenue was $858.85 million, below the estimate of $863.84 million, with a +2.1% year-over-year change [4]

Primerica (PRI) came out with quarterly earnings of $5.02 per share, beating the Zacks Consensus Estimate of $4.77 per share. This compares to earnings of $3.91 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.24%. A quarter ago, it was expected that this life insurance and financial products company would post earnings of $4.96 per share when it actually produced earnings of $5.03, delivering a surprise of 1.41%.Over the las ...

Exhibit 99.2 Supplemental Financial Information First Quarter 2025 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 | | | T ...

Core Viewpoint - Analysts project Primerica (PRI) will report quarterly earnings of $4.77 per share, a 22% increase year over year, with revenues expected to reach $787.37 million, reflecting a 6.2% increase from the same quarter last year [1]. Earnings Projections - There has been a downward revision of 0.6% in the consensus EPS estimate over the last 30 days, indicating a collective reconsideration by covering analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - The consensus estimate for 'Revenues- Other, net' is $17.34 million, indicating a -0.4% year-over-year change [5]. - 'Revenues- Commissions and fees' are projected at $276.77 million, reflecting an 8.5% year-over-year increase [5]. - 'Revenues- Net premiums' are expected to reach $451.57 million, showing a 4.7% year-over-year increase [5]. - 'Adjusted Operating Revenues- Investment and Savings Products' are forecasted at $271.16 million, indicating an 11.3% year-over-year increase [6]. - 'Adjusted Operating Revenues- Term Life Insurance' is expected to be $464.46 million, reflecting a 5.5% increase from the prior-year quarter [6]. - 'Revenues- Net investment income' is projected to be $39.77 million, indicating a 5.2% year-over-year increase [7]. - 'Adjusted Operating Revenues- Corporate and Other Distributed Products' is expected to reach $52.47 million, reflecting a 3.6% year-over-year change [7]. Sales Force and Policy Metrics - The consensus estimate for 'Life-Licensed Sales Force, End of period' is 152,073, up from 142,855 in the same quarter last year [8]. - 'Life Insurance Policies Issued' is expected to be 90,432, compared to 86,587 in the same quarter of the previous year [8]. - 'Recruits' are projected to reach 111,314, slightly up from 110,710 year-over-year [9]. - 'Average Client Asset Values' are expected to arrive at $113.01 billion, compared to $99.5 billion in the previous year [9]. - 'New Life-Licensed Representatives' is estimated at 12,860, compared to 12,949 in the same quarter of the previous year [10]. Stock Performance - Shares of Primerica have returned +7.4% over the past month, while the Zacks S&P 500 composite has changed by +11.5% [10].