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Primerica, Inc. (symbol: PRI) is a leading provider of financial services dedicated to helping middle-income families achieve financial independence. Founded in 1977, Primerica revolutionized the life insurance industry with its 'buy term and invest the difference' philosophy. This approach encourages families to purchase affordable term life insurance, allowing them to allocate more funds toward investments for their future.
Primerica's commitment extends beyond life insurance to address the critical issue of household debt. The company offers comprehensive solutions designed to help families eliminate debt and boost their savings. Operating in the U.S., Canada, and Puerto Rico, Primerica serves over 6 million clients with the support of more than 100,000 licensed representatives and 24,000 licensed mutual fund representatives, making it the largest sales force in North America.
The company's primary subsidiaries include Primerica Financial Services, specializing in marketing, Primerica Life Insurance Company, the principal life insurance underwriting entity, and PFS Investments, which provides investment and savings products, brokerage services, and registered investment advisory.
Primerica operates through four main segments: Term Life Insurance, Investment and Savings Products, Senior Health, and Corporate and Other Distributed Products. The majority of its revenue is derived from operations in the United States. Securities clients under Primerica have nearly $25 billion in assets under management, and in 2008, the company placed in force more than $90 billion in life insurance.
With its steadfast focus on financial empowerment, Primerica continues to support families in reaching their financial goals through innovative products and dedicated service.
Primerica reported robust results for the second quarter of 2024. The company saw a 14% increase in new life licenses, reaching 145,789 representatives. Term Life net premiums rose by 4%, while adjusted direct premiums increased 5%. Primerica issued $33 billion in Term Life face amounts and held $951 billion in total in-force coverage. Investment and Savings Products (ISP) sales surged by 29% to $3.1 billion, with client asset values up 15% to a record $105 billion.
GAAP diluted EPS was $0.03, with adjusted EPS at $4.71. The company declared a 20% dividend increase to $0.90 per share, payable on September 12, 2024, and repurchased $143 million in common stock. Total revenue increased 17% year-over-year to $803.4 million, while adjusted operating revenue rose 9% to $753.3 million. The exit from the Senior Health business impacted GAAP earnings but contributed to a 12% increase in adjusted net operating income to $162.7 million.
Strong sales of investment products, rising client asset values, and steady premium growth drove positive results despite some weakness in the Senior Health segment.
Primerica, Inc. (NYSE: PRI) has released its latest Primerica Household Budget Index™ (HBI™) for June 2024, showing a modest improvement in purchasing power for middle-income households. The index rose to 101.0% from 100.3% in May 2024, marking the second consecutive month of increase. This improvement is primarily attributed to declining gas and food prices coupled with rising incomes.
Despite this positive trend, economic consultant Amy Crews Cutts notes that middle-income families have made progress in recovering from the high inflation period of 2021-2023. The total gain in earned incomes over necessity goods prices is approximately $45, which is described as 'barely making a dent' in the financial setback caused by previous inflation.
Primerica (NYSE:PRI) has announced a webcast scheduled for Thursday, August 8, 2024, at 10:00 a.m. Eastern time. The webcast will discuss the company's financial results for the second quarter ended June 30, 2024, along with other business-related matters and future expectations. A news release detailing the quarter's results will be distributed after market close on Wednesday, August 7, 2024. Investors can access the earnings news release, financial supplement, and live webcast on the Primerica Investors website. A replay of the call will be available for approximately 30 days following the event.
Primerica (NYSE:PRI) has announced its decision to exit the senior health business by relinquishing ownership of e-TeleQuote Insurance, Inc. The Board of Directors determined that the senior health subsidiary, acquired in July 2021, lacks a clear path to profitability within an acceptable timeframe. Primerica plans to terminate its rights to e-TeleQuote no later than September 30, 2024. The company expects e-TeleQuote to issue shares to a yet-to-be-identified third party, who will ultimately own the business. This decision was driven by significant structural changes in the sector and an uncertain regulatory environment. Primerica will continue to support client relationships and maintain staffing levels at e-TeleQuote during the transition.
The 2024 Primerica International Convention, hosted by Primerica, a leading financial services provider, kicks off today in Atlanta and will run through July 13. Expected to attract 40,000 attendees, the event will have an estimated economic impact of $46 million on the local economy.
Primerica, which has nearly 146,000 life insurance-licensed representatives, achieved a significant milestone with $951 billion in term life coverage in force. The company has seen a 15% year-to-date increase in new recruits and life insurance-licensed representatives.
Preliminary data shows that client asset values have reached $105 billion as of June 30, 2024, with investment product sales increasing by 25% year-to-date to $5.8 billion. The company has averaged $1.8 billion in death claim payouts annually over the last five years.
The event aims to celebrate Primerica's successes and plan for further growth through its 50th anniversary in 2027.
Primerica's Financial Security Monitor™ (FSM™) survey for Q2 2024 highlights the financial struggles of middle-income families. Despite reports of an improving economy, two-thirds of these families feel they are falling behind the cost of living. The Household Budget Index™ (HBI™) shows a slight rise in purchasing power to 100.3% in May 2024, up from 100.1% in April 2024, marking the first increase in five months. The survey reveals that 80% of households prefer cooking at home due to budget concerns and high restaurant prices. Savings behaviors remain strained, with many families cutting costs or using credit cards more frequently. Financial confidence is high for basic money management but lower for complex tasks like retirement planning. Anxiety and time are major barriers to financial planning. The survey also notes a small improvement in the number of households with an emergency fund and a slight decline in credit card debt.
Primerica has released its latest Household Budget Index™ (HBI™), highlighting a decline in purchasing power for middle-income families.
In April 2024, the index fell to 100.1%, down from 100.5% in March 2024, marking the fourth consecutive month of decline from a high of 102.5% in December 2023.
The primary cause of this decline is a 12% increase in gas prices over the past two months.
Primerica released its latest Financial Security Monitor™ survey, indicating that most middle-income Canadians lack basic financial education. The survey reveals 68% believe their education didn't prepare them for managing finances. Specific gaps include understanding taxes (85%), managing loans (81%), and setting budgets (77%). Despite financial challenges and inflation concerns, 65% rate their personal finances positively, though 75% see their province's economic health as poor. Saving habits are improving, with 72% holding a savings account. Inflation and health expenses are top worries (61% each). Most (72%) think financial advice should be universal, but only 38% think they can afford it.
Primerica, Inc. (NYSE: PRI) reported strong financial results for the first quarter of 2024, with total revenues up 8% to $742.8 million. Net income increased by 8% to $137.9 million, and earnings per diluted share rose by 14% to $3.93. The company saw growth in recruiting and licensing, with a 5% increase in the life-licensed sales force and a 16% increase in new representatives. Term life net premiums grew by 5%, and Investment and Savings Products sales increased by 20% to $2.8 billion. Client asset values also rose by 18% to $103 billion. Adjusted operating EPS increased by 10% to $3.91, and the company declared a dividend of $0.75 per share. Primerica remains optimistic about future growth opportunities.
Primerica, Inc. (NYSE: PRI) reported a decline in the Primerica Household Budget Index™ for middle-income households for the third consecutive month. The average purchasing power in March 2024 dropped to 100.5% from 101.2% in February 2024, attributed to the increasing prices of necessity goods, with gas prices rising by 6.4% since the beginning of the year.
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