AM Best Affirms Credit Ratings of Primerica, Inc. and Its Subsidiaries

Rhea-AI Summary

Primerica Inc. (NYSE: PRI) Receives Affirmation of A+ Financial Strength Rating from AM Best, Expands Product Distribution, and Demonstrates Strong Operating Performance

Positive

• AM Best has affirmed Primerica Inc.'s Financial Strength Rating of A+ and Long-Term Issuer Credit Ratings of aa-, reflecting very strong balance sheet strength and operating performance.
• Primerica's steady premium growth, extensive distribution system, and high level of return-on-equity measures contribute to its consistently high-level earnings.
• The group's appropriate enterprise risk management assessment and solid liquidity and financial flexibility are also recognized by AM Best, contributing to the stable outlook of its credit ratings.

Negative

• None.

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” (Superior) of Primerica Life Insurance Company (Nashville, TN) and its affiliates, National Benefit Life Insurance Company (Long Island City, NY) and Primerica Life Insurance Company of Canada (Mississauga, Ontario), collectively referred to as Primerica Group. Additionally, AM Best has affirmed the Long-Term ICR of “a-” (Excellent) of Primerica, Inc. (Primerica) (headquartered in Duluth, GA) [NYSE: PRI], which is the holding company for the group’s insurance and non-insurance operating companies. AM Best also has affirmed the Long-Term Issue Credit Rating of “a-” (Excellent) on $600 million, 2.8% senior unsecured notes, due 2031, of Primerica. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Primerica Group’s balance sheet strength, which AM Best assesses as very strong, as well as its very strong operating performance, favorable business profile and appropriate enterprise risk management.

Primerica’s ratings continue to recognize the group’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). In addition, the ratings reflect good liquidity, financial flexibility and an investment portfolio that is focused on fixed income with no alternative asset classes, and modest exposure to commercial mortgage-backed securities. Primerica continues to operate and report earnings on a consistently high level with its return-on-equity measures among the highest across its industry peers. This performance is supported by steady premium growth driven by its vast distribution system geographically diversified in U.S. and Canadian marketplaces. Primerica has an extensive agent recruitment process with a well established monitoring system to ensure compliance of its processes and procedures. This is also a reflection of Primerica’s appropriate enterprise risk management assessment, which is capable of identifying, assessing, monitoring and mitigating the company’s risks. Much of these risks have been managed through ceding business to highly rated reinsurance partners and using captive reinsurance companies quite extensively, reflecting higher reinsurance leverage ratios compares to its peers.

The group’s business profile revolves centrally around its core term life insurance offering and in particular, the investments made in its simplified issue product. Those not qualifying for a simplified issue term life product have the option to apply for a traditional underwritten product. Beyond the Primerica Group, Primerica also offers the distribution of primarily third-party Investment & Savings Products and other non-life products. Recently Primerica’s strategy has included a product expansion beyond its core term life and investments offerings. With its expansion through e-TeleQuote and easyMed Insurance Services, its product distribution has expanded to Medicare Advantage and Medicare Supplement products.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231115963412/en/

Wayne Kaminski

Senior Financial Analyst

+1 908 882 1916

wayne.kaminski@ambest.com

Jacqalene Lentz

Director

+1 908 882 2011

jacqalene.lentz@ambest.com

Christopher Sharkey

Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com

Al Slavin

Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

Source: AM Best

FAQ

What are the Credit Ratings affirmed by AM Best for Primerica Inc.?

AM Best has affirmed the Financial Strength Rating of A+ and the Long-Term Issuer Credit Ratings of aa- for Primerica Inc.

What are the key factors contributing to Primerica's strong operating performance?

Primerica's strong operating performance is attributed to its steady premium growth, extensive distribution system, high return-on-equity measures, and appropriate enterprise risk management assessment.

What is the outlook of Primerica's credit ratings according to AM Best?

AM Best has assigned a stable outlook to Primerica's credit ratings, reflecting the group's solid balance sheet strength, operating performance, and enterprise risk management assessment.

What products has Primerica recently expanded into?

Primerica has expanded its product distribution to include Medicare Advantage and Medicare Supplement products through e-TeleQuote and easyMed Insurance Services.

Where can I find more information about AM Best's recent rating activity?

For all rating information and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, visit AM Best’s Recent Rating Activity web page.