Primerica(US:PRI)2025-05-08 18:06PART I – FINANCIAL INFORMATION Item 1. Financial Statements (unaudited) 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 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 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 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 - 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, 20243336 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 changes4253 - The company utilizes reinsurance extensively, with 86% of its direct life insurance in-force being ceded to other companies as of March 31, 202569 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 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 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 inflows122125 Results of Operations 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 business158 - The Investment and Savings Products segment's pre-tax income surged 24% YoY to $81.3 million, fueled by higher sales and asset-based revenues164 Liquidity and Capital Resources - The Parent Company held $407.0 million in cash and invested assets as of March 31, 2025, for dividends, debt service, and share repurchases180 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, 2025189190 Item 3. Quantitative and Qualitative Disclosures About Market Risk 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, 2024213 Item 4. Controls and Procedures 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, 2025214 - There were no material changes in internal control over financial reporting during the quarter215 PART II – OTHER INFORMATION Item 1. Legal Proceedings 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 disclosed217 Item 1A. Risk Factors 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 reference218 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 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 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 stock220 Item 6. Exhibits 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 documents222