Sales and Distribution - As of December 31, 2024, approximately 25,493 independent sales representatives were licensed to distribute mutual funds in the U.S. and Canada[88]. - During 2024, Franklin Templeton, Invesco, American Funds, and Fidelity collectively accounted for approximately 98% of mutual fund sales in the U.S.[90]. - The Lifetime Investment Program requires clients to have at least 25,000ofinvestableassetsandutilizes12unaffiliatedinvestmentadvisersasofDecember31,2024[97].−InCanada,salesofsegregatedfundsproductsunderwrittenbyPrimericaLifeCanadahavesignificantlydecreasedduetoregulatorychangeseffectiveJune2023[101].−PrimericareachedanagreementwithCanadaLifetodistributenewsegregatedfundcontracts,withrolloutbeginninginearly2025[105].RevenueSources−RevenuefromInvestmentandSavingsProductsintheU.S.isearnedthroughupfrontcommissions,trailingfees,andaccount−basedrevenue[106].−PFSLInvestmentsCanadaearnsrevenuefromPDFundsprimarilythroughfeesbasedonclientassetvaluesandsales−basedcommissions[109].−Thecompanyreceivescompensationfrommortgagelendersbasedonafixedpercentageoftheloanamountformortgagebrokeringservicesprovided[113].−ThecompanyoffersaPrimerica−brandedprepaidlegalservicesprogramonasubscriptionbasis,generatingcommissionsfromsalesandrenewals[114].−ThecompanyhasacontractualarrangementwithAnswerFinancial,receivingcommissionsbasedoncompletedautoandhomeowners′insuranceplacementsandpolicyrenewals[115].−ThecompanyreceivescommissionsfromreferralstoVivint′shomeservices,payingindependentsalesrepresentativesareferralfeeforeachsubscription[116].−InCanada,thecompanyhasareferralprogramformortgageloanproducts,earningreferralfeesbasedonthefundedloanamount[118].FinancialPerformance−Totalrevenuesfor2024increasedby123,089,143,000 compared to 2,748,507,000in2023,drivenbyhighercommissionsandfees,netpremiums,andnetinvestmentincome[408].−Netpremiumsroseby41,729,171,000 in 2024 from 1,660,314,000in2023,reflectinggrowthintheTermLifeInsurancesegment[408].−Commissionsandfeessurgedby211,082,889,000 in 2024, up from 892,853,000in2023,indicatingstrongperformanceintheInvestmentandSavingsProductssegment[408].−Netinvestmentincomeincreasedby14155,501,000 in 2024, compared to 135,837,000in2023,highlightingimprovedreturnsoninvestedassets[408].−Totalbenefitsandexpensesroseby92,149,896,000 in 2024, primarily due to higher sales commissions and amortization of deferred acquisition costs (DAC)[411]. - Net income attributable to Primerica, Inc. decreased by 18% to 470,518,000in2024from576,601,000 in 2023, reflecting the loss from discontinued operations[408]. Employee and Management - As of December 31, 2024, the company employed 2,874 individuals, with 2,531 in the U.S. and 343 in Canada[174]. - The diversity of U.S. employees includes 50.6% female representation in executive management and 61.8% female representation in non-executive management[174]. - The employee retention rate for 2024 is 91%, indicating high employee satisfaction[180]. - Approximately 720 employees participate in an annual incentive program for 2024, which is tied to both corporate performance and individual achievement[178]. - The company has been recognized as a Top Workplace for eleven consecutive years from 2014 through 2024 by the Atlanta Journal-Constitution[180]. - The company was awarded by Forbes as one of America's Best Midsize Employers in 2024[180]. Regulatory Compliance - PFS Investments is registered and regulated in all 50 U.S. states and certain territories, ensuring compliance with various financial regulations[146]. - PFS Investments is required to file quarterly reports and annual audited financial statements with the SEC, adhering to minimum net capital requirements[148]. - The independent sales representatives in Canada must be registered in their respective provinces and territories, subject to regulation by the Autorité des marchés financiers and CIRO[156]. - Primerica Mortgage must hold an active mortgage company license in each state where mortgage products are offered, with independent sales representatives also needing individual licenses[161]. - The company’s U.S. insurance subsidiaries are required to conduct annual analyses of the sufficiency of their life insurance statutory reserves[135]. - The company’s U.S. insurance subsidiaries must submit an annual risk-based capital report to state regulators based on four categories of risk[138]. - OSFI has not requested Primerica Life Canada to enter into any prudential agreement nor issued any order against it[139]. - The company’s insurance subsidiaries are subject to extensive laws and regulations that may become more restrictive, potentially affecting operations[121]. Investment Strategy - The company maintains a conservative investment strategy, with no issuer concentrations outside the U.S. or Canada exceeding 5% of the fair value of the invested asset portfolio[440]. - As of December 31, 2024, the total investments in fixed-maturity securities amounted to 3,155,494,anincreaseof6.82,953,595 in 2023[448]. - The distribution of fixed-maturity securities by rating shows that 42% are rated BBB, up from 39% in 2023, while AAA rated securities increased from 19% to 20%[448]. - Deferred policy acquisition costs increased by 7% to 3,680,430in2024,drivenbynewbusinessnotsubjecttoIPOcoinsuranceagreements[452].−Futurepolicybenefitsdecreasedby46,503,064 in 2024, attributed to higher market observable interest rates used for discounting[453]. Cash Flow and Financing - Cash provided by operating activities increased to 862,088in2024from692,517 in 2023, primarily due to increased net income and insurance proceeds[459]. - Cash used in investing activities rose to 232,250in2024,influencedbytimingfluctuationsindebtsecuritiesandanincreaseintheinvestmentportfoliosize[461].−Cashusedinfinancingactivitiesincreasedto551,141 in 2024, reflecting higher share repurchases and stockholder dividends[463]. - As of December 31, 2024, the company maintained statutory capital and surplus well above regulatory requirements, supporting future growth[465]. - The company has established Vidalia Re as a special purpose financial captive insurance company to manage redundant reserve financing more efficiently[469]. - The company has an unsecured $200.0 million Revolving Credit Facility with a termination date of June 22, 2026[475]. - As of December 31, 2024, no amounts were outstanding under the Revolving Credit Facility, and the company was in compliance with its covenants[476]. - The applicable margins for SOFR rate loans range from 1.000% to 1.625% per annum, while base rate loans range from 0.000% to 0.625% per annum[476]. - The company expects to fully fund future policy benefits from cash flows from general account invested assets, claims reimbursed by reinsurers, and future premiums[477].
Primerica(PRI)2025-02-28 19:53