Primerica Household Budget Index: Purchasing Power for Middle-Income Families Rose for the Fifth Consecutive Month as Gas Prices Sharply Declined

Rhea-AI Summary

Primerica (NYSE: PRI) released its latest Household Budget Index™ (HBI™) showing improved purchasing power for middle-income households. The index, which tracks families with incomes between $30,000 and $130,000, reached 102.7% in September 2024, up from 102.1% in August 2024. This marks the fifth consecutive monthly increase in purchasing power, primarily driven by sharp declines in gas prices.

Positive

• Purchasing power index increased to 102.7% from 102.1% month-over-month
• Fifth consecutive month of purchasing power growth
• Declining gas prices benefiting middle-income households

Negative

• None.

Insights

Market Research Analyst

The latest HBI data reveals a positive trend in middle-income household purchasing power, with a 0.6% month-over-month increase to 102.7%. The sustained five-month improvement, primarily driven by declining gas prices, indicates increasing financial flexibility for Primerica's core customer base. This metric is particularly significant as it directly impacts the company's target demographic ($30,000 to $130,000 income range), potentially influencing their ability to purchase financial products and services.

The strengthening purchasing power suggests a more favorable environment for Primerica's business model, as improved household finances typically correlate with increased investment in insurance and financial products. However, it's worth noting that while the trend is positive, the modest nature of the improvement indicates a gradual rather than dramatic market shift.

DULUTH, Ga.--(BUSINESS WIRE)-- Primerica, Inc. (NYSE: PRI), a leading provider of financial services and products in the United States and Canada, announced today the release of the Primerica Household Budget Index™ (HBI™), a monthly index illustrating the purchasing power of middle-income households with income between $30,000 and $130,000. In September 2024, the average purchasing power for middle-income families was 102.7%, up from 102.1% in August 2024. This marks the fifth consecutive month purchasing power rose for middle-income families. The sharp decline in gas prices was the primary driver for the modest improvements in spending power in September.

Primerica Household Budget Index™ - In September 2024, the average purchasing power for middle-income families was 102.7%, up from 102.1% in August 2024. This marks the fifth consecutive month purchasing power rose for middle-income families. (Graphic: Business Wire)

For more information on the Primerica Household Budget Index™, visit www.householdbudgetindex.com.

About the Primerica Household Budget Index™ (HBI™)

The Primerica Household Budget Index™ (HBI™) is constructed monthly on behalf of Primerica by its chief economic consultant Amy Crews Cutts, PhD, CBE®. The index measures the purchasing power of middle-income families with household incomes from $30,000 to $130,000 and is developed using data from the U.S. Bureau of Labor Statistics, the US Bureau of the Census, and the Federal Reserve Bank of Kansas City. The index looks at the cost of necessities including food, gas, utilities, and health care and earned income to track differences in inflation and wage growth.

The HBI™ is presented as a percentage. If the index is above 100%, the purchasing power of middle-income families is stronger than in the baseline period and they may have extra money left over at the end of the month that can be applied to things like entertainment, extra savings, or debt reduction. If it is under 100%, households may have to reduce overall spending to levels below budget, reduce their savings or increase debt to cover expenses. The HBI™ uses January 2019 as its baseline. This point in time reflects a recent “normal” economic time prior to the COVID-19 pandemic.

Periodically, prior HBI™ values may be revised due to revisions in the CPI series and Consumer Expenditure Survey releases by the U.S. Bureau of Labor Statistics (BLS). Beginning with the October 2023 release of the HBI™ data, health insurance costs will no longer be included in the calculation of the HBI™ data as part of the healthcare component because of some newly acknowledged methodology that has been used by the BLS to calculate the health insurance CPI. The health insurance CPI, as calculated by BLS, does not measure consumer costs of health insurance such as the cost of premiums paid or a combination of premiums and deductibles, but rather premium values retained by health insurers we do not believe it accurately reflects consumer experiences. The healthcare component will continue to include medical services, prescription drugs and equipment. Prior published values have been adjusted to reflect this change. For more information visit householdbudgetindex.com.

About Primerica, Inc.

Primerica, Inc., headquartered in Duluth, GA, is a leading provider of financial products and services to middle-income households in North America. Independent licensed representatives educate Primerica clients about how to better prepare for a more secure financial future by assessing their needs and providing appropriate solutions through term life insurance, which we underwrite, and mutual funds, annuities and other financial products, which we distribute primarily on behalf of third parties. We insured approximately 5.7 million lives and had approximately 2.9 million client investment accounts on December 31, 2023. Primerica, through its insurance company subsidiaries, was the #2 issuer of Term Life insurance coverage in the United States and Canada in 2023. Primerica stock is included in the S&P MidCap 400 and the Russell 1000 stock indices and is traded on The New York Stock Exchange under the symbol “PRI”.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241030072955/en/

Public Relations

Gana Ahn, 678-431-9266

gana.ahn@primerica.com

Investor Relations

Nicole Russell, 470-564-6663

nicole.russell@primerica.com

Source: Primerica, Inc.

FAQ

What is Primerica's (PRI) latest Household Budget Index reading for September 2024?

Primerica's Household Budget Index reached 102.7% in September 2024, up from 102.1% in August 2024.

How many consecutive months has Primerica's (PRI) Household Budget Index shown improvement?

The Household Budget Index has shown improvement for five consecutive months as of September 2024.

What income range does Primerica's (PRI) Household Budget Index track?

The Household Budget Index tracks middle-income households with incomes between $30,000 and $130,000.

What was the main factor driving the improvement in Primerica's (PRI) September 2024 Household Budget Index?

The sharp decline in gas prices was the primary driver for the improvement in spending power in September 2024.