Primerica Q4 Earnings Beat on Higher Premiums, Revenues Up Y/Y

Core Insights - Primerica, Inc. (PRI) reported fourth-quarter 2024 adjusted earnings of $5.03 per share, beating the Zacks Consensus Estimate by 1.4% and reflecting an 18.4% increase from the prior-year quarter [2] - The company's total revenue for the quarter increased by 9.1% year over year to$ 790.1 million, surpassing the consensus mark by 3% [2] - Despite strong performance in Term Life and Investment and Savings Products, shares fell 4.3% post-earnings report due to higher benefits and expenses impacting investor confidence [1] Financial Performance - Net premiums for Q4 2024 were $440.3 million, a 3.8% increase from the previous year, but slightly missed consensus expectations [3] - Net investment income rose 1.3% year over year to$ 38.1 million, also missing consensus by 1.6% [3] - Commissions and fees increased by 29% year over year to $293.9 million, exceeding consensus by 9.1% [3] - Total benefits and expenses rose 12.5% to$ 569.6 million, driven by higher amortization of deferred policy acquisition costs and increased operating expenses [4] - Adjusted net operating income increased by 11% year over year to $169.2 million [4] Segment Performance - Term Life Insurance segment saw adjusted operating revenues increase by 4% to$ 450.6 million, but adjusted operating income before income taxes declined by 1% to $139.5 million, missing consensus by 3.9% [5] - Investment and Savings Products segment reported a 29% increase in adjusted operating revenues to$ 286 million, with adjusted operating income before income taxes rising 31% to $82 million, beating consensus by 6.5% [6] - Corporate and Other Distributed Products segment's adjusted operating revenues rose 5% to$ 53.5 million, with an adjusted operating loss of $1 million [7] Capital and Shareholder Returns - As of December 31, 2024, Primerica had cash and cash equivalents of$ 687.8 million, down from $594.1 million at the end of 2023 [8] - Total assets decreased to$ 14.6 billion from $15 billion at the end of 2023, while total shareholders' equity increased to$ 2.3 billion from $2.1 billion [8] - The company repurchased shares worth$ 44.4 million in Q4 and authorized a new share repurchase program of $450 million [11] - A dividend hike of 16% to$ 1.04 per share was approved, payable on March 14, 2025 [11] Full-Year Update - For the full year 2024, adjusted operating revenues rose by 10% year over year, and net investment income increased by 14.5% [12] - Diluted EPS for 2024 rose by 20% year over year to $19.84 per share [12]