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 ...

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]

Primerica (PRI) came out with quarterly earnings of $4.71 per share, beating the Zacks Consensus Estimate of $4.45 per share. This compares to earnings of $3.99 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 5.84%. A quarter ago, it was expected that this life insurance and financial products company would post earnings of $4.11 per share when it actually produced earnings of $3.91, delivering a surprise of -4.87%. Over the l ...

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 7. On the other hand, if they miss, the stock may move lower. This life insurance and financial products company is expected to post quarterly earnings of $4.45 per share in its upcoming report, which represents a year-over-year change of +11.5%. The consensus EPS estimate for the quarter has been revised 0.13% higher over the last 30 days to the current level. This i ...

Primerica's (PRI) shares have gained 15.3% year to date, outperforming the industry's increase of 9%, the Finance sector's rise of 5.3% and the Zacks S&P 500 composite's increase of 15% in the said time frame. A compelling portfolio, strong market presence and a solid capital position drive this Zacks Rank #3 (Hold) life insurer. 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 pres ...

Primerica (PRI) is well-poised to grow, banking on the strength of a compelling portfolio, strong market presence and a solid capital position. These, coupled with optimistic growth projections, make the stock worth retaining in one's portfolio. Shares of this Zacks Rank #3 (Hold) company have gained 10.6% compared with the industry's increase of 10.7%. It has a VGM Score of B. Northbound Estimate Revision The Zacks Consensus Estimate for 2024 and 2025 earnings has moved 5 cents and 7 cents north, respectiv ...

The investigation concerns whether Primerica and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. [Click here for information about joining the class action] On April 18, 2024, The Bear Cave published a short report on Primerica, which described the Company as "a pyramid scheme". The Bear Cave cited "extensive evidence suggesting that Primerica's highest producing agents are engaged in misleading, false, or deceptive conduct including 1) a recor ...

Primerica, Inc. (NYSE:PRI) Q1 2024 Earnings Conference Call May 7, 2024 10:00 AM ET Company Participants Nicole Russell - Head, IR Glenn Williams - CEO Tracy Tan - CFO Conference Call Participants Ryan Krueger - KBW Maxwell Fritscher - Truist Securities Bob Huang - Morgan Stanley Suneet Kamath - Jefferies Mark Hughes - Truist Securities Operator Greetings, and welcome to the Primerica's First Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It ...

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, 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) | 27-1204330 | Delaware | | --- | --- | | (State o ...