Financial Data and Key Metrics Changes - The company reported net flows of $15.8 billion for FY 2025, representing a 40.4% increase compared to the previous year [2][27] - Funds Under Administration (FUA) grew to a record $112.8 billion, a 28.2% increase [3][28] - Total income reached $324.4 million, reflecting a 27.1% increase year-on-year [3][28] - EBITDA was $163.5 million, with an EBITDA margin of 50.4%, up 3.2% from the previous year [3][28] - Net Profit After Tax (NPAT) increased by 39.8% to CAD 116.5 million [3][28] Business Line Data and Key Metrics Changes - Managed accounts grew by 33.5%, while managed funds increased by 21.9% [4] - Domestic trade volume rose by 28.5%, and international trade volume surged by 121.9% [5] - Ancillary fee income grew by 32.8% [8] Market Data and Key Metrics Changes - The company increased its market share to 8.7%, a 1.1% increase [18] - The platform market is growing at $1.2 trillion with a two-year CAGR of 10.2% [19] Company Strategy and Development Direction - The company aims to continue investing in wealth solutions, wealth tech, insights, and analytics [10][12] - A focus on enhancing digital experiences and user interfaces has been emphasized [12][13] - The company plans to launch new products tailored for high net worth and ultra-high net worth clients [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth, citing strong demand for complex financial advice and a robust pipeline of new advisory relationships [41][42] - The company anticipates maintaining strong net flows similar to the previous year [41][42] - There is a focus on leveraging technology and AI to improve efficiency and service delivery [21][22] Other Important Information - The company declared a final dividend of $0.21 per share, a 50% increase from the previous year [36] - The Rule of 40 score exceeded 77, indicating a strong combination of growth and profitability [36] Q&A Session Summary Question: Can you provide the actual number of flows? - Management indicated that the flows were in the vicinity of about 45% [47] Question: What drove the elevated trading fees? - Management noted that significant tailwinds from the shift to T+1 for U.S. equity settlements and elevated market volatility contributed to increased trading activity [50][51] Question: What is the organic growth rate from existing clients? - Management stated that most firms are experiencing organic growth rates between 15-20% [53] Question: How do you manage the intersection of growth and margin versus investment? - Management emphasized the importance of investing appropriately to maximize efficiencies while also pursuing growth opportunities [61] Question: What is the outlook for revenue margins into FY 2026? - Management expects some continuing trends but noted that transaction fee growth may not replicate the previous year's performance [108]

Financial Data and Key Metrics Changes - Net flows for FY 2025 were $15,800,000,000, a 40.4% increase from the prior corresponding period [2] - Funds under administration (FUA) grew to $112,800,000,000, a 28.2% increase [3] - Total income reached $324,400,000, representing a 27.1% increase [3] - EBITDA was $163,500,000, resulting in an EBITDA margin of 50.4%, a 3.2% increase from the previous year [3] - NPAT surged to CAD116.5 million, a 39.8% increase [3] Business Line Data and Key Metrics Changes - Managed accounts grew by 33.5%, while managed funds increased by 21.9% [4] - Domestic trade volume increased by 28.5%, and international trade volume surged by 121.9% [5] - Ancillary fee income grew by 32.8% [6] Market Data and Key Metrics Changes - The company’s market share increased to 8.7%, up 1.1% [18] - The platform market is growing at $1,200,000,000,000 with a two-year CAGR of 10.2% [18] - There are 7,200,000 Australians with complex financial circumstances seeking advice, with only 10,000 to 11,000 advisors available [19] Company Strategy and Development Direction - The company’s strategy focuses on wealth solutions, wealth tech, insights and analytics, and partnerships [9][10] - Plans to enhance digital capabilities and user experience through a major upgrade to the user interface [12][13] - The company aims to create capacity internally and reduce reliance on third-party systems [21] Management's Comments on Operating Environment and Future Outlook - The company expects strong flows and account growth, with a well-diversified pipeline [44] - Management is optimistic about new offerings and investments in key market segments [45] - The outlook for full net flows is expected to be similar to the previous year, with strong profitability and cash generation [46][47] Other Important Information - The company declared a final dividend that is 50% higher than the previous year, equating to a 90% payout ratio [37] - The company added over 80 employees, with 55% focused on growth initiatives [38] Q&A Session Summary Question: Can you provide the actual number of flows? - The exact number was not disclosed, but it was in the vicinity of about 45% [50] Question: What drove the elevated trading fees? - Significant tailwinds from the shift to T+1 for U.S. equity trading and elevated volatility contributed to increased transaction volumes [52][53] Question: What is the organic growth rate from existing clients? - Most firms are experiencing organic growth rates between 15-20% [55] Question: How do you manage the intersection of growth and margin versus investment? - The company aims to invest appropriately to maximize efficiencies while optimizing opportunities [63] Question: What are the expectations for revenue margins into FY 2026? - Transaction fees are expected to be good, but some one-off benefits from the previous year may not be replicated [104] Question: What is the outlook for operating expenses? - Expected operating expenses are around $190,000,000, excluding any potential impacts from ongoing investigations [75]

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]

Second-Quarter 2025 Supplemental Presentation July 30, 2025 This presentation contains forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995. These statements are based on our current expectations about future events or future financial performance. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, and often contain words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estima ...

Financial Data and Key Metrics Changes - Adjusted net operating income for Q1 2025 was $168 million, up 14% year over year, while diluted adjusted operating EPS increased 20% to $5.20 [5] - Total stockholder returns during the quarter amounted to $153 million, comprising $118 million in share repurchases and $35 million in regular dividends [5] Business Line Data and Key Metrics Changes - Term Life segment operating revenues rose 4% year over year to $458 million, driven by a 5% growth in adjusted direct premiums [15] - ISP segment total sales were $3.6 billion, up 28% year over year, with net inflows of $839 million compared to $274 million in the prior year [10][11] - The mortgage business in the U.S. saw closed loans of $93.5 million, up 31%, while Canadian closed loans reached $43.3 million, up 78% [12][13] Market Data and Key Metrics Changes - The total number of life license representatives grew slightly, up 7% compared to March 2024, despite a 9% decline in recruiting year over year [7][8] - Client asset values at the end of the quarter were $110 billion, up 6% year over year, although down 2% during the first three months of 2025 due to negative market performance [11] Company Strategy and Development Direction - The company remains committed to growing its sales force, expecting around 3% growth during 2025, despite current economic pressures [8] - The focus on financial education for middle-income families is emphasized as a key driver of success, with a belief that there will always be a need for such services [13][14] Management's Comments on Operating Environment and Future Outlook - Management noted that economic uncertainty has impacted recruiting and term life insurance sales, leading to a cautious decision-making environment [6][9] - The company expects full-year policies issued to be broadly in line with 2024 levels, despite current challenges [9] Other Important Information - The corporate segment incurred a pretax adjusted operating loss of $8 million, an improvement from a loss of $12 million in the prior year [19] - The RBC ratio improved to 470%, reflecting a strong capital position to support growth and absorb uncertainties [22][48] Q&A Session Summary Question: Dynamic between Term Life sales and ISP sales - Management explained that the complementary business model allows different reactions to economic conditions, with term life sales facing more immediate pressure from cost of living while ISP sales remain strong due to demand for guarantees [25][26] Question: ISP sales outlook and ongoing headwinds - Management confirmed that the outlook for ISP sales growth is lower than the first quarter due to ongoing economic uncertainty and strong prior year comparisons [30][31] Question: Recruiting environment and its attractiveness - Management noted that economic uncertainty can make the Primerica opportunity more appealing as individuals seek additional income sources [39][40] Question: Differences in economic conditions between U.S. and Canada - Management indicated that both economies are similar, with recent Canadian election results providing clarity, but overall dynamics are expected to be consistent [55][56] Question: Stock repurchase program amidst market conditions - Management reassured that the stock repurchase program for 2025 remains intact, emphasizing a predictable return on capital for stockholders [58][59] Question: Higher net investment income in the corporate segment - Management attributed the increase in net investment income to portfolio growth and a shift to slightly higher-yielding investments while maintaining a conservative risk profile [66][67] Question: Lapse rates across the term book - Management reported that lapse rates have stabilized and are in line with expectations, despite some recent increases due to economic pressures [78][80] Question: ISP business sales sustainability - Management expressed confidence in the ISP business's ability to maintain sales levels, although market volatility could impact future performance [84][86]