Primerica (PRI) came out with quarterly earnings of $5.68 per share, beating the Zacks Consensus Estimate of $4.78 per share. This compares to earnings of $4.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 18.83%. A quarter ago, it was expected that this life insurance and financial products company would post earnings of $4.45 per share when it actually produced earnings of $4.71, delivering a surprise of 5.84%.Over the la ...

Financial Performance - The financial supplement for Primerica, Inc. provides a comprehensive analysis of the third quarter 2024 earnings, focusing on core metrics used by management for strategic decisions[2]. - Adjusted net operating income and diluted adjusted operating earnings per share exclude the tax effect of pre-tax operating adjustments and non-recurring items, ensuring comparability in results[2]. - The company reported significant operating adjustments, excluding investment gains/losses and corporate restructuring charges related to exiting the senior health business[2]. - Adjusted stockholders' equity removes the impact of net unrealized gains and losses on invested assets, reflecting a more stable financial position[2]. - The document includes reconciliations of non-GAAP to GAAP financial measures, highlighting the importance of these metrics in evaluating ongoing business performance[2]. - Total revenues for Q1 2024 reached $735.95 million, an increase of 11.0% year-over-year[8]. - Net income from continuing operations for Q1 2024 is $148.41 million, representing a year-over-year increase of 26.3%[6]. - Basic earnings per share for Q1 2024 is $4.24, a decrease of 5% compared to Q4 2023[6]. - The company reported a return on equity of 38.9% for Q1 2024, up from 27.9% in Q4 2023[6]. - The company reported a total of 364 million common shares outstanding as of June 30, 2023, an increase from 358 million at the end of March 31, 2023[3]. Investment Portfolio - Primerica's investment portfolio is detailed, providing insights into asset management and performance metrics[1]. - The company emphasizes the impact of market movements on unrealized investment gains and losses, which do not correlate with cash flows from matured assets[2]. - The company’s cash and investments, excluding securities held to maturity, totaled $3,226.05 million as of June 30, 2023, slightly down from $3,246.38 million at the end of March 31, 2023[3]. - The total reinsurance recoverables decreased to $3,084.52 million as of June 30, 2023, from $3,217.35 million at the end of March 31, 2023, a decline of approximately 4.1%[3]. - The fixed income portfolio has a duration of 5.2 years, with total fixed income valued at $2,998,190,000 and an amortized cost of $3,129,474,000[26]. - The effective maturity of fixed-maturity securities shows that 39.3% are in the 5-10 years range, valued at $1,179,081,000[26]. - The total fixed income portfolio has increased from $288.815 million to $292.729 million, representing a percentage of total fixed income portfolio growth from 7.9% to 8.1%[30]. Segment Performance - The financial results include segment operating results for Term Life Insurance and Investment and Savings Products, showcasing key statistics and financial analysis[1]. - Total term life income before income taxes for Q3 2023 was $4 million, representing a 12.8% increase year-over-year[18]. - The Corporate & Other segment showed a loss of $19.9 million, indicating challenges in this area[10]. - Total revenues for Q4 2023 amounted to $770.08 million, representing a year-over-year growth of 9.5%[12]. - Term Life Insurance adjusted direct premiums for Q4 2023 reached $648.90 million, reflecting a year-over-year increase of 5.8%[12]. Future Outlook - Future outlook includes continued expansion in the mutual funds and variable annuities market, focusing on asset-based revenues[11]. - The company plans to enhance its service offerings to increase ongoing fees from client accounts[11]. - Market expansion strategies are being implemented to capture a larger share of the financial services sector[11]. - The company plans to focus on market expansion and new product development in the upcoming quarters[15]. - Future guidance indicates a cautious outlook due to ongoing restructuring and market conditions[15]. Client and Sales Metrics - The beginning of the life-insurance licensed sales force was 135,208 representatives, increasing to 141,572 by Q1 2024, representing a 4.7% year-over-year growth[19]. - The life-insurance licensed sales force increased to 361,925 in 2023, up from 359,735 in 2022, reflecting a growth of approximately 0.3%[31]. - Issued term life policies reached 287,809 in 2023, a decrease of 11.5% compared to 323,800 in 2021[31]. - The estimated annualized issued term life premium from new policies was $302.4 million in 2023, showing an increase from $271.9 million in 2022[31]. - The total estimated annualized issued term life premium was $376.6 million in 2023, up from $348.5 million in 2022, reflecting a growth of approximately 8.5%[31]. Financial Ratios and Metrics - The debt-to-capital ratio for Q1 2024 is 21.4%, a decrease from 22.3% in Q4 2023[6]. - Cash and invested assets to adjusted stockholders' equity ratio improved to 2.3x, up from 2.1x[7]. - The average stockholders' equity for Q1 2024 is $2,239,762 thousand, an increase from $2,189,231 thousand in Q4 2023[6]. - Adjusted stockholders' equity per share decreased by 5.2% to $62.37 from $65.72[7]. - The company reported a net change in market value of assets, reflecting fluctuations net of fees and expenses[23].

Primerica (PRI) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on November 6, 2024, might help the stock move higher if these key numbers are better than ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Whi ...

Shares of Primerica Inc. (PRI) closed at $263.34 on Tuesday, near a 52-week high of $265.67. A compelling portfolio, strong market presence and solid capital position are driving the share price higher. This second-largest issuer of term-life insurance coverage in North America envisions being a successful senior health business while continuing to enhance its shareholders' value. PRI's earnings have risen 17.6% in the past five years, outperforming the industry average of 4.6%. Shares of PRI have gained 11 ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Whi ...

Primerica Inc. (PRI) is set to benefit from its compelling portfolio, strong market presence and solid capital position. These, along with growth projections as well as positive analyst sentiment, make this Zacks Rank #2 (Buy) life insurer worth adding to your portfolio. PRI's earnings have risen 17.6% in the past five years, outperforming the industry average of 5.9%. This second-largest issuer of term-life insurance coverage in North America envisions being a successful senior health business while contin ...

BostjanT Written by Nick Ackerman We had previously touched on Primerica, Inc. (NYSE:PRI) after The Bear Cave took aim at this company. We rejected the short report as a lack of understanding of the underlying business. From my previous experience, it seemed like the short report highlighted what is simply business as usual in the financial sector. Primerica also took a shot back against the bears with their strong Q2 results. The top and bottom lines both beat expectations by a wide margin, with solid grow ...

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 June 30, 2024 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) | --- | --- | --- | |------------------------------ ...

Financial Data and Key Metrics Changes - Adjusted net operating income for the second quarter was $163 million, reflecting a 12% increase year-over-year, while diluted adjusted operating income per share rose 18% to $4.71 [4] - Operating revenues in the term life segment increased by 4% to $427 million, driven by a 5% growth in adjusted direct premiums [12] - Total expenses on asset-based products increased in line with asset-based revenues, with adjusted consolidated insurance and other operating expenses rising 6% year-over-year to $150 million [16] Business Line Data and Key Metrics Changes - The investment and savings product segment saw operating revenues of $261 million, a 22% increase, driven by a 31% rise in sales-based revenue and a 16% increase in average client asset values [14] - The term life segment's pre-tax operating income increased by 5% to $148 million, with a benefits and claims ratio of 57.4%, consistent with the prior year [12][13] - The senior health segment reported revenues of $12 million, with a pre-tax adjusted operating loss of $11 million, indicating unfavorable performance compared to the prior year [15] Market Data and Key Metrics Changes - Client asset values reached $105 billion, reflecting a 15% year-over-year increase, with net flows remaining positive at $423 million during the quarter [8] - The company issued over 100,000 new term-like policies, a 4% increase year-over-year, adding $33 billion of coverage for middle-income families [6] Company Strategy and Development Direction - The company plans to exit the senior health market due to challenges in achieving profitability, focusing instead on serving middle-income families in the U.S. and Canada [8] - The company anticipates full-year growth in the size of its sales force to be around 5% during 2024, supported by strong recruiting efforts [6][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth, citing the increasing need for protection and saving solutions among underserved middle-income households [9] - The household budget index remains over 100%, indicating that while families are not getting worse off, they are still facing compounding challenges from the cost of living [32][33] Other Important Information - The company repurchased $143 million of its common stock and paid $26 million in dividends during the second quarter, returning a total of $304 million to stockholders in the first half of 2024 [5] - The company expects full-year sales in investment products to grow around 15% in 2024, driven by strong demand across various product lines [7] Q&A Session Summary Question: Could you talk about the recruiting trends? - Management noted strong recruiting activity post-convention, with expectations for continued growth in the distribution channel [18][19] Question: Can you discuss the mortgage balance increase and sales program? - Management indicated a significant increase in mortgage loan originators and activity, anticipating further momentum with expected interest rate cuts [21][22][24] Question: What is driving the strong demand for investment and savings products? - Demand is primarily driven by confidence in the market, with larger transactions overshadowing pressures on small investors [27][28] Question: How does the convention impact licensing? - The convention typically boosts recruiting and licensing, with benefits expected to materialize in the following months [29][30] Question: What is the status of the household budget index and its impact on policies? - The index remains over 100%, indicating ongoing challenges for families, which may affect their insurance purchasing behavior [32][33] Question: How does the company ensure compliance? - Management described a robust multi-layered compliance plan, including real-time surveillance and regular communication [40][41][43]