Primerica Household Budget Index™: Declining Gas Prices Support Middle-Income Families’ Ability to Get Ahead

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 103.1% in October 2024, up from 102.7% in September 2024. This represents the sixth consecutive monthly increase and the highest level since January 2021. The index shows a 3.4% year-over-year improvement, primarily attributed to declining gas prices in October.

Positive

• Sixth consecutive month of purchasing power increases
• Purchasing power up 3.4% year-over-year
• HBI reached highest level since January 2021 at 103.1%

Negative

• None.

Insights

Market Research Analyst

The latest Primerica Household Budget Index™ reveals a meaningful economic trend that could positively impact Primerica's business model. The 3.4% year-over-year improvement in middle-income purchasing power suggests a more financially stable customer base, potentially increasing their capacity to invest in financial products and services.

The sustained six-month improvement trend, reaching 103.1% in October, indicates middle-income households have more discretionary income. This could translate to increased sales of insurance products and investment services, Primerica's core revenue streams. The data also suggests improved consumer sentiment, which historically correlates with higher financial product adoption rates.

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 October 2024, the average purchasing power for middle-income families was 103.1%, up from 102.7% in September 2024. This marks the sixth consecutive month purchasing power rose for middle-income families. Spending power is at its highest level since January 2021 and is up 3.4% from a year ago. The recent recovery is driven primarily by gas prices continuing to fall in October.

Primerica Household Budget Index™ - In October 2024, the average purchasing power for middle-income families was 103.1%, up from 102.7% in September 2024. This marks the sixth 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 U.S. 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/20241125052332/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 October 2024?

Primerica's Household Budget Index reached 103.1% in October 2024, up from 102.7% in September 2024.

How much has Primerica's (PRI) Household Budget Index increased year-over-year?

The Household Budget Index has increased 3.4% compared to the previous year.

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 is driving the improvement in Primerica's (PRI) Household Budget Index?

The improvement in the Household Budget Index is primarily driven by falling gas prices in October 2024.