PART I – FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited).) This section presents Primerica's unaudited condensed consolidated financial statements and detailed notes for the period ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets, liabilities, and stockholders' equity increased to $14.83 billion, $12.52 billion, and $2.31 billion respectively, as of June 30, 2025 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$14,829,833** | **$14,582,022** | | Total Investments | $4,436,299 | $4,331,042 | | Deferred policy acquisition costs, net | $3,817,119 | $3,680,430 | | **Total Liabilities** | **$12,522,318** | **$12,322,981** | | Future policy benefits | $6,719,044 | $6,503,064 | | Note payable | $594,913 | $594,512 | | **Total Stockholders' Equity** | **$2,307,515** | **$2,259,041** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net income for Q2 2025 was $178.3 million, up from $1.2 million in Q2 2024 due to discontinued operations, while continuing operations income decreased to $178.3 million Income Statement Summary (in thousands, except per-share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $793,334 | $790,955 | $1,598,177 | $1,526,904 | | Income from Continuing Operations | $178,344 | $209,302 | $347,395 | $357,715 | | Loss from Discontinued Operations | - | $(208,131) | - | $(218,641) | | **Net Income** | **$178,344** | **$1,171** | **$347,395** | **$139,074** | | Diluted EPS (Continuing) | $5.40 | $6.07 | $10.45 | $10.28 | | **Diluted EPS (Total)** | **$5.40** | **$0.03** | **$10.45** | **$3.99** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to $360.0 million for the six months ended June 30, 2025, with investing and financing activities resulting in a $66.6 million net decrease in cash and cash equivalents Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $360,042 | $384,182 | | Net cash used in investing activities | $(100,471) | $(56,509) | | Net cash used in financing activities | $(328,745) | $(311,533) | | **Change in cash and cash equivalents** | **$(66,623)** | **$14,144** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail financial statements, covering discontinued Senior Health operations, segment performance, investment portfolio, reinsurance, and the share repurchase program - The company abandoned its ownership in e-TeleQuote Insurance, Inc. (the "Senior Health business") on **September 30, 2024**, with its results now reported in **discontinued operations** for all periods presented[32](index=32&type=chunk)[33](index=33&type=chunk) Discontinued Operations Summary (in thousands) | Metric | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $12,420 | $19,300 | | Impairment of goodwill and other long-lived assets | $253,607 | $253,607 | | Loss before income taxes | $(264,972) | $(279,125) | | **Loss from discontinued operations, net of taxes** | **$(208,131)** | **$(218,641)** | Income Before Income Taxes by Segment (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Term Life Insurance | $155,012 | $147,779 | $301,797 | $286,148 | | Investment and Savings Products | $79,421 | $74,782 | $160,691 | $140,345 | | Corporate and Other | $64 | $50,208 | $(6,676) | $39,664 | - As of June 30, 2025, the company had repurchased **901,663 shares** for **$247.1 million** under its current share repurchase program, with approximately **$202.9 million** remaining available for future repurchases through December 31, 2025[78](index=78&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses financial performance, business trends, and operational drivers, including economic impacts on policy persistency and sales force, alongside financial condition, liquidity, and capital resources [Business Trends and Conditions](index=35&type=section&id=Business%20Trends%20and%20Conditions) Economic conditions, including inflation, are impacting middle-income households, adversely affecting term life insurance persistency and slowing sales force recruiting, despite strong equity markets benefiting investment products - The cumulative impact of inflation has led to an elevated cost of living, which has adversely impacted **persistency for term life insurance policies**, with lapse rates remaining above long-term historical levels[108](index=108&type=chunk) Sales Force Recruiting and Licensing Activity | Metric | Three Months Ended June 30, 2025 (count) | Three Months Ended June 30, 2024 (count) | Six Months Ended June 30, 2025 (count) | Six Months Ended June 30, 2024 (count) | | :--- | :--- | :--- | :--- | :--- | | New recruits | 80,924 | 96,563 | 181,791 | 207,273 | | New life-licensed reps | 12,903 | 14,402 | 25,242 | 27,351 | Term Life Insurance Policies Issued | Metric | Three Months Ended June 30, 2025 (count) | Three Months Ended June 30, 2024 (count) | Six Months Ended June 30, 2025 (count) | Six Months Ended June 30, 2024 (count) | | :--- | :--- | :--- | :--- | :--- | | Number of new policies issued | 89,850 | 100,768 | 176,265 | 187,355 | Investment and Savings Product Sales (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total product sales | $3,548 | $3,083 | $7,108 | $5,853 | [Results of Operations](index=48&type=section&id=Results%20of%20Operations) For Q2 2025, total revenues were flat at $793.3 million, while income from continuing operations decreased 15% to $178.3 million, primarily due to a prior year one-time gain affecting segment results Consolidated Results Summary (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $793,334 | $790,955 | $2,379 | * | | Total Benefits and Expenses | $558,837 | $518,186 | $40,651 | 8% | | Income from Continuing Operations | $178,344 | $209,302 | $(30,958) | (15)% | - The decrease in income from continuing operations in Q2 2025 was primarily due to a **one-time $50.0 million gain** recognized in Other, net revenue in the Corporate and Other Distributed Products segment in Q2 2024[155](index=155&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=55&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) The company maintains a conservative investment strategy with an 'A' rated fixed-maturity portfolio, holding $371.0 million in Parent Company cash, and subsidiaries exceeding regulatory capital requirements, ensuring sufficient liquidity - The company follows a conservative investment strategy to preserve assets and provide liquidity, with its fixed-maturity portfolio having an average rating of **'A'** as of June 30, 2025[186](index=186&type=chunk)[191](index=191&type=chunk) - As of June 30, 2025, the Parent Company had **$371.0 million** in cash and invested assets, primarily sourced from subsidiary dividends[192](index=192&type=chunk) - The company's U.S. life insurance subsidiaries maintained statutory capital substantially in excess of regulatory **RBC requirements**, and the Canadian subsidiary was in compliance with **OSFI's minimum capital requirements**[201](index=201&type=chunk)[202](index=202&type=chunk) - The company maintains a **$200.0 million unsecured Revolving Credit Facility**, which had no outstanding balance as of June 30, 2025[211](index=211&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) There have been no material changes in the Company's exposures to market risk since December 31, 2024 - There have been **no material changes** in the Company's exposures to market risk since December 31, 2024[226](index=226&type=chunk) [Item 4. Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management, including the CEO and CFO, concluded the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the Company's **disclosure controls and procedures were effective** as of June 30, 2025[227](index=227&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter ended June 30, 2025[228](index=228&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=65&type=section&id=Item%201.%20Legal%20Proceedings.) The company is involved in various legal disputes and regulatory inquiries, but as of the report date, no pending legal proceeding is believed to require disclosure - The company reports that it does not believe any **pending legal proceeding requires disclosure** as of the date of this report[230](index=230&type=chunk) [Item 1A. Risk Factors](index=65&type=section&id=Item%201A.%20Risk%20Factors.) This section updates a risk factor heading to "Risks Related to Legislative and Regulatory Changes and Government Policy Uncertainty," highlighting exposure to laws and regulations that could require business adjustments - The company updated a risk factor heading to "**Risks Related to Legislative and Regulatory Changes and Government Policy Uncertainty**" to better reflect risks from laws, regulations, and government policies that could require business practice alterations[231](index=231&type=chunk)[232](index=232&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) During Q2 2025, the company repurchased **488,027 shares** of common stock at an average price of **$264.55** per share, with approximately **$202.9 million** remaining available for repurchase as of June 30, 2025 Share Repurchases for Quarter Ended June 30, 2025 | Period | Total Shares Purchased (shares) | Average Price Paid per Share (USD) | Value Remaining Under Program (USD) | | :--- | :--- | :--- | :--- | | April 2025 | 173,466 | $259.45 | $287,020,932 | | May 2025 | 157,252 | $270.25 | $244,523,936 | | June 2025 | 157,309 | $264.48 | $202,919,455 | | **Total** | **488,027** | **$264.55** | **$202,919,455** |

Financial Data and Key Metrics Changes - Adjusted net operating income was $180 million in Q2 2025, up 6% year over year, while diluted adjusted operating EPS increased 10% to $5.46 [5] - Total stockholder returns during the quarter amounted to $163 million, comprising $129 million in share repurchases and $34 million in regular dividends [5] - Consolidated insurance and other operating expenses were $154 million, an increase of 8% year over year, primarily due to higher variable growth-related costs and technology investments [19] Business Line Data and Key Metrics Changes - Term Life segment revenues were $442 million, up 3% year over year, with pretax income of $155 million, also up 5% [14] - ISP segment sales increased 15% to $3.5 billion, with net inflows of $487 million compared to $227 million in the prior year [9] - The mortgage business reported closed loan volume of $133 million in the U.S., up 33% year over year, and $45 million in Canada, up 30% [12] Market Data and Key Metrics Changes - The number of new term life insurance policies issued was 89,850, with a total face amount in force reaching a record $968 billion [8] - The average client asset values in the ISP segment ended the quarter at $120 billion, up 14% year over year [9] - The recruiting activity saw over 80,000 individuals recruited in Q2, with nearly 13,000 new representatives licensed, down 10% from the previous year [6] Company Strategy and Development Direction - The company aims to grow its sales force by 23% in 2025, focusing on attracting new recruits amid economic uncertainties [7] - The complementary nature of the ISP and Term Life businesses is emphasized, with ISP sales helping to offset headwinds in life sales [13] - The company is committed to maintaining a strong capital position while supporting growth initiatives and returning capital to stockholders [21] Management's Comments on Operating Environment and Future Outlook - Management noted that economic and government policy uncertainties continue to impact middle-income families, leading to a wait-and-see attitude affecting term life sales [28] - The company expects the total number of new life policies issued to decline around 5% in 2025 compared to 2024, reflecting ongoing cost of living pressures [8] - Management remains optimistic about the long-term value delivery for clients and stockholders despite current challenges [13] Other Important Information - The company corrected its methodology for calculating outflows and market value for Canadian mutual fund assets, which had no impact on financial statements [10] - The RBC ratio for Primerica Life was reported at 490%, indicating a strong capital position [21] Q&A Session Summary Question: Decline in term life sales and revised guidance - Management attributed the decline to cost of living pressures and uncertainty, leading to a wait-and-see attitude among middle-income families [28] Question: Impact of cost of living on recruiting new agents - Management confirmed that financial stress can create opportunities for recruiting as individuals seek additional income [32] Question: Favorable mortality trends and potential changes in assumptions - Management indicated that favorable mortality trends have been observed for over ten quarters, with a review planned for Q3 [38] Question: ISP sales margin dynamics - Management explained that variable growth-related expenses and higher commissions impacted the ISP sales margin [40] Question: Outlook for ISP sales growth - Management expects continued strength in ISP sales but anticipates more difficult comparisons in the second half of the year [46] Question: Trends in mortgage business growth - Management expressed optimism about the mortgage business, particularly if interest rates decrease, which could drive refinancing opportunities [69] Question: Expense results in Q2 - Management noted that Q2 expenses were influenced by timing and technology investments, with a full-year guidance of a 6% to 8% increase [76] Question: Efforts to grow ISP sales force - Management highlighted ongoing efforts to grow the sales force and improve diversity in selling both Term Life and ISP products [80] Question: Term Life sales relative to the industry - Management indicated that the company is experiencing similar challenges as the industry, with a slight lag in performance this year [88] Question: Productivity concerns in the sales force - Management acknowledged that productivity is affected by the growth of the sales force and the current economic environment, but expects it to normalize over time [95]

Financial Data and Key Metrics Changes - Adjusted net operating income for Q2 2025 was $180 million, reflecting a 6% year-over-year increase, while diluted adjusted operating EPS rose 10% to $5.46 [5] - Total capital returned to stockholders during the quarter was $163 million, comprising $129 million in share repurchases and $34 million in regular dividends [5] - The company ended the quarter with $371 million in cash and invested assets, with an estimated RBC ratio of 490% [20][56] Business Line Data and Key Metrics Changes - Term Life segment revenues for Q2 2025 were $442 million, up 3% year-over-year, driven by a 5% growth in adjusted direct premiums [13] - ISP segment sales increased 15% to $3.5 billion, with net inflows of $487 million compared to $227 million in the prior year [8] - The mortgage business saw closed loan volume of $133 million in the U.S., up 33% year-over-year, and $45 million in Canada, up 30% [11] Market Data and Key Metrics Changes - The number of new term life insurance policies issued declined by 19% year-over-year, with a total face amount in force reaching a record $968 billion [7] - Client asset values in the ISP segment ended the quarter at $120 billion, up 14% year-over-year [8] - The company recruited over 80,000 individuals in Q2, with 13,000 new representatives licensed, a 10% decrease from the previous year [5][6] Company Strategy and Development Direction - The company aims to grow its sales force by 23% in 2025, emphasizing the importance of recruiting during economic uncertainty [6] - The complementary nature of ISP and Term Life products is highlighted, with ISP sales helping to offset headwinds in life sales [12] - The company is committed to investing in technology and infrastructure to support growth in the ISP segment [18] Management's Comments on Operating Environment and Future Outlook - Management noted that cost of living pressures and economic uncertainty have led to a "wait and see" attitude among middle-income families, impacting term life sales [25][29] - There is confidence that middle-income families will adapt to economic conditions over time, and the company expects a normalization of persistency rates [14][46] - The company anticipates continued strong demand for retirement savings products, driven by demographic trends [9][62] Other Important Information - The company corrected its methodology for calculating outflows and market value for Canadian mutual fund assets, which had no impact on financial statements [9] - The net unrealized loss in the investment portfolio improved, ending the quarter with a loss of $158 million, attributed to interest rates rather than credit concerns [19] Q&A Session Summary Question: Decline in term life sales and cost of living impact - Management indicated that the decline in term life sales is due to cost of living pressures and uncertainty, leading to a wait-and-see attitude among families [25][29] Question: Recruitment opportunities amid economic pressures - Management confirmed that financial stress can create opportunities for recruiting new agents, as individuals seek additional income [31] Question: Favorable mortality trends - Management noted that favorable mortality trends have been observed for over ten quarters, with potential adjustments to long-term assumptions being considered [36] Question: ISP sales growth expectations - Management expects ISP sales growth to moderate but remain strong, with continued strength observed in July [44] Question: Capital deployment and RBC ratio - Management explained that the RBC ratio is influenced by regulatory restrictions and the desire to maintain a strong capital position to support growth [56] Question: Dynamics in different product areas - Management discussed the mix shift in product sales, noting that variable annuities are gaining traction due to market conditions [62] Question: Trends in mortgage business - Management expressed optimism about the mortgage business, particularly if interest rates decline, which could lead to refinancing opportunities [67] Question: Expense results in Q2 - Management indicated that Q2 expenses were influenced by timing and technology investments, with a full-year guidance of a 6% to 8% increase [74] Question: Efforts to grow ISP sales force - Management highlighted ongoing efforts to grow the ISP sales force and increase diversity in sales across product lines [78]

Financial Performance - GAAP revenues reached $793.3 million, slightly up from $791.0 million in Q2 2024 [11] - GAAP net income was $178.3 million, a significant increase compared to $1.2 million in Q2 2024, which was impacted by a loss from discontinued operations [11] - Adjusted operating revenues increased by 7% to $796.0 million from $740.9 million in Q2 2024 [12] - Adjusted net operating income rose by 6% to $180.4 million from $171.0 million in Q2 2024 [12] - Diluted adjusted operating EPS increased by 10% to $5.46 from $4.95 in Q2 2024 [12] Sales & Distribution - The life-licensed sales force grew by 5% year-over-year, reaching 152,592 [16, 19] - Recruits decreased by 16% to 80,924 from 96,563 in Q2 2024 [16] - New life-licensed representatives decreased by 10% to 12,903 from 14,402 in Q2 2024 [16] Production Highlights - Issued life insurance policies decreased by 11% to 89,850 from 100,768 in Q2 2024 [22] - Total product sales for Investment and Savings Products (ISP) increased by 15% to $3.5 billion from $3.1 billion in Q2 2024 [29] - Client asset values for ISP increased by 14% to $120.2 billion from $105.1 billion in Q2 2024 [29]

[Preface and Non-GAAP Financial Measures](index=3&type=section&id=Preface%2C%20definition%20of%20non-GAAP%20financial%20measures) This section defines non-GAAP financial measures like adjusted operating income and stockholders' equity, and notes a correction to Canadian mutual fund asset methodology with no financial statement impact - The company uses several non-GAAP measures to provide what management believes are more relevant and meaningful analytical metrics. These include: - **Operating adjustments:** Exclude investment gains/losses, MTM adjustments, and certain non-recurring items like restructuring charges to better show core insurance operations - **Adjusted stockholders' equity:** Removes unrealized gains/losses on invested assets and the effect of discount rate changes on future policy benefits to reduce volatility from market movements - **IPO coinsurance transactions adjustments:** Exclude amounts ceded under 2010 IPO-related coinsurance transactions to show premiums economically maintained by the company[5](index=5&type=chunk)[6](index=6&type=chunk)[7](index=7&type=chunk) - A correction was made in Q2 2025 to the methodology for presenting outflows and calculating market value changes for Canadian mutual fund assets. This correction, which was assessed as immaterial, had no impact on the financial statements, product sales, or client asset values. Historical data back to 2023 has been restated[9](index=9&type=chunk) [Financial Statements and Key Metrics](index=5&type=section&id=Financial%20Statements%20and%20Key%20Metrics) [Condensed Balance Sheets and Reconciliations](index=5&type=section&id=Condensed%20balance%20sheets%20and%20reconciliation%20of%20balance%20sheet%20non-GAAP%20to%20GAAP%20financial%20measures) Balance sheet highlights **$14.83 billion** in total assets and **$2.31 billion** in stockholders' equity as of June 30, 2025, reflecting growth Balance Sheet Highlights (as of June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Assets | $14,829.8M | $14,565.7M | | Total Liabilities | $12,522.3M | $12,443.9M | | Total Stockholders' Equity | $2,307.5M | $2,121.8M | | Adjusted Stockholders' Equity | $2,257.5M | $2,107.7M | [Financial Results and Other Statistical Data](index=7&type=section&id=Financial%20results%20and%20other%20statistical%20data) Q2 2025 diluted EPS decreased **11.0%** to **$5.40**, while adjusted operating EPS increased **10.3%** to **$5.46**, maintaining strong financial ratings Q2 2025 Earnings Per Share Summary | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Diluted EPS | $5.40 | $6.07 | -11.0% | | Diluted Adjusted Operating EPS | $5.46 | $4.95 | +10.3% | Q2 2025 Return on Equity | Metric | Q2 2025 | | :--- | :--- | | Net Income ROE | 31.3% | | Adjusted Net Operating Income ROAE | 32.2% | - The company's key financial strength ratings remain stable and strong: - **Primerica Life Insurance Co:** A1 (Moody's), AA- (S&P), A+ (A.M. Best) - **Holding Company Senior Debt:** Baa1 (Moody's), A- (S&P), a- (A.M. Best)[15](index=15&type=chunk) [Statements of Income](index=9&type=section&id=Statements%20of%20income) Q2 2025 total revenues increased **0.3%** to **$793.3 million**, while net income decreased **14.8%** to **$178.3 million** Q2 2025 Income Statement Highlights | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | $793.3M | $791.0M | +0.3% | | Total Benefits and Expenses | $558.8M | $518.2M | +7.8% | | Income from Continuing Operations | $178.3M | $209.3M | -14.8% | Q2 2025 Pre-Tax Income by Segment | Segment | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Term Life Insurance | $155.0M | $147.8M | +4.9% | | Investment & Savings Products | $79.4M | $74.8M | +6.2% | | Corporate & Other | ($0.06M) | $50.2M | -99.9% | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=11&type=section&id=Reconciliation%20of%20statement%20of%20income%20GAAP%20to%20non-GAAP%20financial%20measures) Q2 2025 adjusted operating revenues grew **7.4%** to **$796.0 million**, and adjusted net operating income increased **5.5%** to **$180.4 million** Reconciliation to Adjusted Net Operating Income (Q2) | ($ in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net income from continuing operations (GAAP)** | **$178,344** | **$209,301** | | Less: Investment (losses) gains | ($2,866) | ($99) | | Less: MTM investment adjustments | $182 | $189 | | Less: Insurance claim proceeds | — | $50,000 | | Less: Restructuring costs | — | ($824) | | Less: Tax impact & other adjustments | $643 | ($11,033) | | **Adjusted net operating income (Non-GAAP)** | **$180,385** | **$170,964** | Reconciliation to Adjusted Operating Revenues (Q2) | ($ in thousands) | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total revenues (GAAP) | $793,334 | $790,955 | +0.3% | | **Adjusted operating revenues (Non-GAAP)** | **$796,018** | **$740,865** | **+7.4%** | [Segment Operating Results](index=14&type=section&id=Segment%20operating%20results) [Term Life Insurance Segment](index=14&type=section&id=Term%20Life%20Insurance%20segment) Term Life income before taxes increased **4.9%** to **$155.0 million** in Q2 2025, supported by premium growth [Financial Results and Analysis](index=14&type=section&id=Term%20Life%20Insurance%20-%20Financial%20Results%20and%20Analysis) Term Life's pre-tax income grew **4.9%** to **$155.0 million**, with adjusted direct premiums up **5.4%** and a **23.0%** operating margin Q2 2025 Term Life Financial Highlights | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Income Before Income Taxes | $155.0M | $147.8M | +4.9% | | Adjusted Direct Premiums | $673.9M | $639.1M | +5.4% | | Term Life Operating Margin | 23.0% | 23.1% | -0.1 ppt | [Key Statistics](index=16&type=section&id=Term%20Life%20Insurance%20-%20Key%20Statistics) Term Life's licensed sales force grew **4.7%**, new policies declined, but face amount in-force increased **1.8%** to **$968.3 billion** Q2 2025 Term Life Operational Metrics | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Licensed Sales Force (EOP) | 152,592 | 145,789 | +4.7% | | Issued Term Life Policies | 89,850 | 100,768 | -10.8% | | Est. Annualized Issued Premium | $98.7M | $106.5M | -7.4% | | Face Amount In-Force (EOP) | $968.3B | $950.9B | +1.8% | [Investment and Savings Products Segment](index=18&type=section&id=Investment%20and%20Savings%20Products%20segment) ISP segment income before taxes rose **6.2%** to **$79.4 million**, with product sales up **15.1%** and client assets up **14.4%** [Financial Results and Analysis](index=18&type=section&id=Investment%20and%20Savings%20Products%20-%20Financial%20Results%20and%20Financial%20Analysis) ISP pre-tax income grew **6.2%** to **$79.4 million** on **14.3%** higher revenues, with strong growth in both sales-based and asset-based fees Q2 2025 ISP Financial Highlights | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Income Before Income Taxes | $79.4M | $74.8M | +6.2% | | Total Revenues | $298.3M | $260.9M | +14.3% | | - Sales-based Revenue | $115.9M | $101.2M | +14.6% | | - Asset-based Revenue | $154.7M | $132.8M | +16.5% | [Key Statistics](index=19&type=section&id=Investment%20and%20Savings%20Products%20-%20Key%20Statistics) ISP total product sales increased **15.1%** to **$3.55 billion**, with client assets growing **14.4%** to **$120.2 billion** Q2 2025 ISP Product Sales | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Product Sales | $3,548.4M | $3,082.9M | +15.1% | Client Asset Values Rollforward (Q2 2025) | ($ in millions) | Amount | | :--- | :--- | | Beginning Client Assets | $112,081 | | Inflows | $3,548 | | Outflows | ($3,062) | | Net Flows | $487 | | Market/FX/Other | $7,656 | | **Ending Client Assets** | **$120,224** | [Corporate & Other Distributed Products Segment](index=21&type=section&id=Corporate%20%26%20Other%20Distributed%20Products%20segment) Corporate & Other segment adjusted operating income before taxes significantly improved to **$2.7 million** in Q2 2025, driven by **5.4%** revenue growth Q2 2025 Corporate & Other Financial Highlights | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Adjusted Operating Revenues | $55.9M | $53.0M | +5.4% | | Adjusted Benefits and Expenses | $53.1M | $52.1M | +2.0% | | Adjusted Operating Income (Pre-Tax) | $2.7M | $0.9M | +190% | [Investment Portfolio](index=22&type=section&id=Investment%20portfolio) [Summary of Holdings](index=22&type=section&id=Investment%20Portfolio%20-%20Summary%20of%20Holdings) Total invested assets reached **$3.75 billion** as of June 30, 2025, with **82.8%** in fixed-income securities, primarily corporate bonds Investment Portfolio by Asset Class (as of June 30, 2025) | Asset Class | Market Value | % of Total | | :--- | :--- | :--- | | Cash & Equivalents | $621.2M | 16.6% | | Fixed Income | $3,099.7M | 82.8% | | Equities and Other | $24.8M | 0.7% | | **Total Invested Assets** | **$3,745.7M** | **100.0%** | - The fixed-income portfolio has a duration of 5.3 years, with the largest concentration (39.2%) in securities with effective maturities of 5-10 years[44](index=44&type=chunk) [Quality Ratings](index=23&type=section&id=Investment%20Portfolio%20-%20Quality%20Ratings) The investment portfolio maintains high credit quality, with **99.1%** of fixed-income holdings rated investment grade (BBB or higher) as of June 30, 2025 Fixed Income Portfolio Quality Ratings (as of June 30, 2025) | Rating | % of Total (Amortized Cost) | | :--- | :--- | | AAA | 19.3% | | AA | 14.0% | | A | 23.8% | | BBB | 41.9% | | Below Investment Grade | 0.9% | | NA | 0.1% | [Supplemental Data and Trends](index=24&type=section&id=Investment%20Portfolio%20-%20Supplemental%20Data%20and%20Trends) Q2 2025 net investment income increased **6.4%** to **$40.9 million**, with a new money yield of **5.64%** and stable 'A' average credit quality Net Investment Income and Yields (Q2) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Investment Income | $40.9M | $38.5M | +6.4% | | New Money Yield | 5.64% | 5.78% | -0.14 ppt | | Fixed Income Book Yield (EOP) | 4.26% | 4.01% | +0.25 ppt | - The company's largest single issuer exposure is to the Government of Canada, with a market value of **$16.6 million**[54](index=54&type=chunk) [Five-Year Historical Key Statistics](index=26&type=section&id=Five-year%20historical%20key%20statistics) [Five-Year Historical Key Statistics](index=26&type=section&id=Five-year%20historical%20key%20statistics) This section presents five-year historical trends, showing consistent growth in licensed sales force, term life face amount in-force, and ISP sales Historical Trend: Life-Insurance Licensed Sales Force (End of Period) | Period | Count | | :--- | :--- | | 2020 | 134,907 | | 2021 | 129,515 | | 2022 | 135,208 | | 2023 | 141,572 | | 2024 | 151,611 | | Q2 2025 | 152,592 | Historical Trend: Term Life Face Amount In-Force (End of Period) | Period | Amount ($ in billions) | | :--- | :--- | | 2020 | $858.8 | | 2021 | $903.4 | | 2022 | $916.8 | | 2023 | $944.6 | | 2024 | $953.6 | | Q2 2025 | $968.3 |

Group 1 - Primerica's shares have performed well over the past year but have not yet returned to pre-Liberation Day levels despite the market reaching all-time highs [1] - The company has over fifteen years of experience in making contrarian bets based on macro views and stock-specific turnaround stories [1]

Core Insights - Manulife Financial Corporation (MFC) has achieved a 52-week high of $33.07 and closed at $31.94, reflecting a 23.7% increase over the past year, outperforming the industry, sector, and S&P 500 composite [1][2] Company Performance - MFC has outperformed peers such as Primerica, Inc. (PRI), Reinsurance Group of America, Incorporated (RGA), and Voya Financial, Inc. (VOYA), with PRI gaining 21.8%, while RGA and VOYA saw declines of 1.2% and 11.2%, respectively [2] - MFC's market capitalization stands at $54.78 billion, with an average trading volume of 2.3 million shares over the last three months [2] Technical Analysis - MFC shares are trading above the 50-day and 200-day simple moving averages of $30.55 and $30.12, indicating strong upward momentum [5] Growth Strategy - MFC is focusing on high-growth, capital-light, and higher-return businesses to enhance earnings momentum, maintaining a target leverage ratio of 25% for financial flexibility [7] - The company aims for its Asia business to contribute half of its core earnings by 2025, indicating a strategic focus on this region for long-term growth [16] Valuation Metrics - MFC shares are trading at a price-to-earnings ratio of 10.53X, which is above the industry average of 8.13X, indicating a premium valuation [8] - The average price target from 12 analysts for MFC is $34.84 per share, suggesting an 8.9% upside from the last closing price [9] Earnings Projections - The Zacks Consensus Estimate for MFC's 2025 earnings per share indicates a year-over-year increase of 4.2%, with a projected increase of 7.7% for 2026 [13] - Analyst sentiment is positive, with three out of six analysts raising estimates for 2025 and five for 2026 in the past 30 days [14] Financial Health - MFC's return on equity over the trailing 12 months is 15.8%, surpassing the industry average of 15.3%, showcasing efficient use of shareholders' funds [15] - The company has maintained a free cash flow conversion rate of over 100% in recent quarters, reflecting strong earnings [18] Dividend Policy - MFC has increased its dividend at a seven-year compound annual growth rate (CAGR) of 10% and targets a dividend payout ratio of 35-45% over the medium term [18] Conclusion - MFC is positioned for growth driven by its strong Asia business, expanding Wealth and Asset Management operations, and solid capital position, with a medium-term expense efficiency ratio target of less than 45% [19]

Core Insights - Primerica, Inc. reported strong first-quarter earnings driven by robust Term Life sales, Investment and Savings Product sales, and higher premiums, although increased benefits and expenses may have affected investor sentiment [1][4] Financial Performance - Adjusted earnings per share for Q1 2025 were $5.02, exceeding the Zacks Consensus Estimate by 5.2% and reflecting a 28.4% increase year-over-year [2] - Total revenue for the quarter rose 8.3% year-over-year to $803.6 million, surpassing the consensus estimate by 2.1% [2] - Net premiums reached $448.3 million, a 4% increase from the previous year, but fell short of the consensus by 0.7% [3] - Net investment income increased by 10.2% year-over-year to $41.7 million, beating the consensus by 4.8% [3] - Commissions and fees grew by 19.3% year-over-year to $297 million, exceeding the consensus by 7.3% [3] Expense and Income Analysis - Total benefits and expenses increased by 7.6% to $583.5 million, driven by higher claims and operating costs [4] - Adjusted net operating income rose 14% year-over-year to $168.1 million [4] Segment Performance - Term Life Insurance segment saw adjusted operating revenues increase by 4% to $457.8 million, with operating income before taxes rising 6% to $146.8 million [5] - Investment and Savings Products segment reported a 19% increase in adjusted operating revenues to $290.8 million, with operating income before taxes up 24% to $81.3 million [6] - Corporate and Other Distributed Products segment's adjusted operating revenues rose 8% to $54.9 million, although it reported an operating loss of $8 million [7] Financial Position - As of March 31, 2025, cash and cash equivalents were $625.1 million, down from $687.8 million at the end of 2024 [8] - Total assets remained stable at $14.6 billion, while total shareholders' equity decreased by 0.1% to $2.3 billion [8] Capital Management - The company repurchased shares worth $118 million during the first quarter [10] - A dividend of $1.04 per share was approved, to be paid on June 13, 2025 [11]

Core Viewpoint - Reinsurance Group of America (RGA) shares are trading at a discount compared to the Zacks Life Insurance industry, with a forward price-to-book value of 1.19X, lower than the industry average of 1.80X and the Finance sector's 4.09X [1] Group 1: Financial Performance - RGA has a market capitalization of $13.64 billion and an average trading volume of 0.4 million shares over the last three months [1] - RGA's shares have lost 1% over the past year, while the industry has grown by 14.3%, the Finance sector by 16.3%, and the S&P 500 by 10% [5][6] - The company has a decent earnings surprise history, beating estimates in three of the last four quarters with an average surprise of 7.85% [9] Group 2: Growth Projections - The Zacks Consensus Estimate for RGA's 2025 earnings per share indicates a year-over-year increase of 1.9%, with revenues projected at $24.28 billion, reflecting a 6.2% improvement [10] - Earnings have grown by 15.3% over the past five years, outperforming the industry average of 7.8% [11] - The consensus estimates for 2026 earnings per share and revenues suggest increases of 11.4% and 9.4%, respectively, from the 2025 estimates [10] Group 3: Operational Efficiency - RGA's return on invested capital (ROIC) has consistently increased, reaching 6.1% in the trailing 12 months, significantly higher than the industry average of 0.6% [12] - The company has effectively managed capital through share buybacks, dividend payments, and prudent investments, maintaining a free cash flow conversion of over 85% in recent quarters [18][19] Group 4: Market Position and Strategy - RGA is a leader in the traditional U.S. and Latin American markets, with a strong product line and capabilities that contribute to risk diversification [13] - In Canada, RGA is well-positioned with a sizable block of in-force business, anticipating long-term growth in longevity insurance [14] - The company is capitalizing on the growing demand for protection products among the emerging global middle class and aging populations [15] Group 5: Future Outlook - RGA's new business volumes, favorable longevity experience, diversified business model, and effective capital deployment are expected to support long-term growth [20] - The stock has a VGM Score of A, indicating attractive value, growth, and momentum [20] - The recommendation is to hold the stock, given its affordability and potential for future performance [21]

Financial Performance - GAAP营收为8.048亿美元，同比增长9%[7] - 来自持续经营业务的GAAP净利润为1.691亿美元，同比增长14%[7] - GAAP每股摊薄收益为5.05美元，同比增长19%[7] - 调整后的运营收入为8.036亿美元，同比增长9%[8] - 调整后的运营每股摊薄收益为5.02美元，同比增长20%[8] Capital Deployment - 公司回购了价值1.18亿美元的普通股[12] - 派发了3500万美元的普通股股东股息[12] Distribution - 人寿保险销售队伍增长7%，达到152,167人[13, 16] - 招募人数为100,867人，同比下降9%[13] Production - Term Life Insurance - 发放了超过86,000份人寿保险单[22] - 新增280亿美元的定期寿险保障，总保障额达到9570亿美元[22] Production - Investment and Savings Products (ISP) - 产品销售额创纪录，达到36亿美元，同比增长28%[23, 27] - 客户资产价值同比增长6%，达到1099亿美元[23, 27]