Financial Data and Key Metrics Changes - Fourth quarter adjusted net operating income increased by 11% year-over-year, while diluted adjusted operating income per share rose by 17% [7] - For the full year, adjusted net operating income increased by 14%, and adjusted operating income per share increased by 20% [7] Business Line Data and Key Metrics Changes - In the term life segment, fourth quarter revenue was $451 million, an increase of 4% year-over-year, with a benefits and claims ratio of 58.6% compared to 58.2% in the prior year [11][12] - The investment and savings product segment saw fourth quarter revenues of $286 million, a 29% increase, driven by favorable equity market conditions and strong demand for investment solutions [18] - The corporate and other distributed product segment incurred a pre-tax adjusted operating loss of $1 million, an improvement from a loss of $5.4 million in the prior year [20] Market Data and Key Metrics Changes - The invested asset portfolio ended the year with a net unrealized loss of $206 million, compared to a loss of $131 million at the end of September [22] - The estimated RBC ratio for Primerica Life was 430% as of December 31, 2024, indicating a strong capital position [26] Company Strategy and Development Direction - The company aims for a 5% growth in adjusted client premiums (ADP) for 2025, considering the runoff of co-insurance and higher lapses [16][30] - There is a focus on improving operational efficiency through technology investments to enhance productivity and client experience [56][102] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of cost of living pressures on sales, particularly in the life insurance segment, but noted that the investment and savings product segment remains strong [35][49] - The company expects elevated operating expenses in the first quarter due to annual employee-related costs but anticipates normalization in the fourth quarter of 2025 [25][26] Other Important Information - The company returned 79% of earnings to shareholders in 2024, with expectations to maintain a similar ratio in 2025 [93][94] - The technology spend is expected to be a new run rate going forward, aimed at supporting organic growth and improving client interactions [102] Q&A Session Summary Question: Is 5% ADP growth a good run rate? - Management confirmed that the 5% growth guidance considers the runoff of co-insurance and higher lapses [30] Question: What is driving strong ISP sales despite cost of living pressures? - Management noted that larger retirement plan rollovers are less affected by cost of living pressures, contributing to strong ISP sales [36] Question: What is the expected duration of cost of living pressures? - Management indicated that improvement in cost of living is necessary for consumer behavior to normalize, but the timeline is uncertain [49] Question: How does the company plan to increase operational leverage? - Management emphasized ongoing efforts to improve processes through technology to enhance efficiency and productivity [52][56] Question: What is the outlook for term life issued policies? - Management acknowledged that cost of living headwinds have impacted sales but did not quantify the exact effect [108] Question: What are the drivers behind lower ISP redemption rates? - Management explained that a significant portion of accounts are retirement accounts, which typically have lower redemption rates [115]

Earnings Results Quarter Ended December 31, 2024 Forward-Looking Statements This presentation may contain forward-looking statements. Information on factors that could cause results to differ materially from those projected in this presentation is available in our Form 10-K for the year ended December 31, 2023, as may be modified by subsequent Forms 10-Q. These documents are available in the Investor Relations section of our website, https://investors.primerica.com. The forward- looking statements speak as ...

Core Insights - Primerica reported revenue of $790.13 million for the quarter ended December 2024, reflecting a 9.1% increase year-over-year, with EPS at $5.03 compared to $4.25 in the previous year [1] - The revenue exceeded the Zacks Consensus Estimate of $767.24 million by 2.98%, and the EPS also surpassed the consensus estimate of $4.96 by 1.41% [1] Financial Performance Metrics - The Life-Licensed Sales Force at the end of the period was 151,611, slightly below the average estimate of 152,342 [4] - Life Insurance Policies Issued totaled 89,664, compared to the estimated 91,743 [4] - Recruits numbered 95,497, exceeding the average estimate of 93,175 [4] - Average Client Asset Values were reported at $112.3 billion, slightly below the estimate of $112.64 billion [4] - Revenues from Commissions and Fees reached $293.85 million, a 19.1% increase year-over-year, surpassing the estimate of $269.24 million [4] - Revenues from Other, net, were $17.02 million, slightly below the estimate of $17.22 million, with a year-over-year change of 0.5% [4] - Net Premiums revenue was $440.29 million, compared to the estimate of $441.28 million, reflecting a 3.8% increase year-over-year [4] - Adjusted Operating Revenues from Investment and Savings Products were $286.05 million, exceeding the estimate of $263.01 million, with a year-over-year change of 29.1% [4] - Adjusted Operating Revenues from Term Life Insurance were $450.58 million, slightly above the estimate of $447.61 million, with a 4.5% year-over-year increase [4] - Net Investment Income was reported at $38.13 million, below the estimate of $38.76 million [4] - Adjusted Operating Revenues from Corporate and Other Distributed Products were $53.51 million, exceeding the estimate of $52.46 million, with a year-over-year change of 4.6% [4] - Direct Premiums revenue was $854.75 million, slightly below the estimate of $855.99 million, reflecting a 2.5% year-over-year increase [4] Stock Performance - Primerica's shares returned +7% over the past month, outperforming the Zacks S&P 500 composite's +4.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Primerica reported quarterly earnings of $5.03 per share, exceeding the Zacks Consensus Estimate of $4.96 per share, and showing an increase from $4.25 per share a year ago, indicating a positive earnings surprise of 1.41% [1] Group 1: Earnings Performance - The company surpassed consensus EPS estimates three times over the last four quarters, with a revenue of $790.13 million for the quarter ended December 2024, which was 2.98% above the Zacks Consensus Estimate and an increase from $724.29 million year-over-year [2] - Primerica's earnings for the previous quarter were $5.68 per share, significantly higher than the expected $4.78, resulting in a surprise of 18.83% [1][2] Group 2: Stock Performance and Outlook - Primerica shares have increased by approximately 8% since the beginning of the year, outperforming the S&P 500's gain of 3.1% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Group 3: Earnings Estimates and Industry Context - The current consensus EPS estimate for the upcoming quarter is $4.63 on revenues of $775.19 million, and for the current fiscal year, it is $20.45 on revenues of $3.16 billion [7] - The Zacks Industry Rank indicates that the Insurance - Life Insurance sector is currently in the bottom 36% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Performance - The financial supplement for Primerica, Inc. covers the fourth quarter of 2024, providing insights into ongoing business metrics and performance evaluations[5] - Total revenues for Q4 2023 reached $854.74 million, reflecting a year-over-year increase of 20.4%[19] - Net income for the quarter ending December 2023 was $167.071 million, up from $151.935 million in the previous quarter, indicating a growth of approximately 9.4%[12] - The company reported a year-to-date net income of $601 million, which is a 4% increase compared to the previous year[19] - Adjusted net operating income for Q4 2023 was $231,000, reflecting a 43.2% increase compared to Q4 2022[15] - Adjusted operating income for the quarter was $39.08 million, reflecting a 14.2% increase year-over-year[23] - The overall performance indicates a strong financial position with positive trends in revenue and net income growth[19] Adjusted Financial Metrics - Adjusted net operating income and diluted adjusted operating earnings per share exclude the tax effect of pre-tax operating adjustments and non-recurring items, ensuring comparability in financial results[5] - Adjusted stockholders' equity removes the impact of net unrealized gains and losses on invested assets, providing a clearer picture of the company's financial health[6] - The document includes reconciliations of non-GAAP to GAAP financial measures, emphasizing the importance of these metrics in management's decision-making process[8] - Adjusted stockholders' equity per share increased to $65.8, reflecting a 1.3% growth compared to the previous period[16] Segment Performance - The financial results will be analyzed across different segments, including Term Life Insurance and Investment and Savings Products, highlighting key statistics and performance[2] - Term Life Insurance direct premiums increased to $850.6 million in Q4 2023, representing a 2.5% year-over-year growth[22] - The company anticipates continued growth in the Term Life Insurance segment, with a projected increase in direct premiums for 2024[22] - Investment & Savings product sales totaled $12,070 million in Q1 2024, a significant increase from $9,211 million in Q4 2023, marking a growth of 31.1%[61] Asset and Liability Management - Total assets increased from $14,433 million in September 2023 to $15,027 million in December 2023, representing a growth of approximately 4.1%[12] - Total liabilities rose from $12,120 million in September 2023 to $12,961 million in December 2023, an increase of about 6.9%[12] - Stockholders' equity at the end of December 2023 was $2,197.05 million, reflecting a decrease from $2,275.0 million in September 2023[12] - The company’s retained earnings increased from $2,215.3 million in September 2023 to $2,276.9 million in December 2023, reflecting a growth of approximately 2.8%[12] Investment Performance - Primerica's investment portfolio details will be provided, showcasing the company's asset management strategies and performance metrics[2] - Net investment income increased to $38.134 million in Q4 2023, a rise of 1.3% from the previous quarter, with year-to-date growth of 14.5%[19] - Adjusted net investment income reached $2,551 million, reflecting a 7.0% increase compared to the previous year[22] - The fixed income portfolio represents 80.5% of total invested assets, with an amortized cost of $3,155,494,000[49] Guidance and Future Outlook - The company provided a guidance for Q1 2024 with expected earnings per share in the range of $4.20 to $4.30[15] - Future outlook includes continued market expansion and potential new product launches, although specific details were not provided[23] - The company plans to expand its market presence and invest in new product development to drive future growth[19] - The company anticipates continued growth in revenues and income for 2024, driven by new product launches and market expansion[37] Operational Metrics - Basic earnings per share for Q4 2023 was $4.36, a decrease of 1.8% compared to Q4 2022[15] - Share count at the end of Q4 2023 was 34.9 million, a decrease of 4.7% year-over-year[15] - Life-insurance licensed sales force increased from 139.0 thousand in Q4 2023 to 141.5 thousand in Q1 2024, representing a 1.8% growth[33] - Non-renewal and terminated representatives decreased from 11.06 thousand in Q3 2023 to 10.51 thousand in Q4 2023, a decline of 4.9%[33] Credit Ratings and Financial Stability - Moody's and S&P maintained the company's credit ratings at A1 and AA- respectively, indicating strong financial stability[16] - The company has consistently received an A+ rating from A.M. Best, showcasing its strong insurance financial strength[16]

Core Viewpoint - Primerica (PRI) is expected to report quarterly earnings of $4.96 per share, reflecting a 16.7% increase year-over-year, with revenues projected at $767.24 million, a 5.9% increase from the previous year [1] Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been adjusted downward by 2.2%, indicating a reassessment by analysts [1][2] - Changes in earnings estimates are crucial for predicting investor reactions to stock performance [2] Revenue Projections - Analysts predict 'Revenues- Other, net' to be $17.22 million, a year-over-year increase of 1.7% [4] - 'Revenues- Commissions and fees' are estimated at $269.24 million, reflecting a 9.1% increase from the prior year [4] - 'Revenues- Net premiums' are expected to reach $441.28 million, indicating a 4.1% year-over-year change [4] Adjusted Operating Revenues - 'Adjusted Operating Revenues- Investment and Savings Products' is forecasted at $263.01 million, a significant increase of 18.7% from the previous year [5] - 'Adjusted Operating Revenues- Term Life Insurance' is expected to be $447.61 million, showing a 3.8% increase [5] - 'Adjusted Operating Revenues- Corporate and Other Distributed Products' is projected at $52.46 million, a 2.6% year-over-year change [6] Key Metrics - The consensus estimate for 'Life-Licensed Sales Force, End of period' is 152,342, up from 141,572 a year ago [7] - 'Life Insurance Policies Issued' are expected to reach 91,743, compared to 88,757 last year [7] - 'Recruits' are projected to be 93,175, an increase from 89,992 [7] Client Asset Values - 'Average Client Asset Values' are anticipated to reach $112.64 billion, up from $91 billion year-over-year [8] - 'New Life-Licensed Representatives' are expected to total 15,575, compared to 13,029 last year [8] Stock Performance - Over the past month, Primerica shares have increased by 6.3%, outperforming the Zacks S&P 500 composite's 2.1% change [8][9] - Based on its Zacks Rank 3 (Hold), PRI is expected to perform in line with the overall market in the upcoming period [9]

Company Overview - Primerica (PRI) is positioned well in the Zacks Insurance - Life Insurance industry and has a strong track record of exceeding earnings estimates, with an average surprise of 12.34% over the past two quarters [1][3]. Recent Earnings Performance - In the most recent quarter, Primerica reported earnings of $5.68 per share, surpassing the expected $4.78 per share by 18.83%. The previous quarter also saw a positive surprise, with actual earnings of $4.71 per share against an expectation of $4.45 per share, resulting in a 5.84% surprise [2]. Earnings Estimates and Predictions - Recent estimates for Primerica have been increasing, and the Zacks Earnings ESP (Expected Surprise Prediction) is positive, indicating a strong likelihood of another earnings beat. The company currently has an Earnings ESP of +0.03% and a Zacks Rank of 2 (Buy) [3][6]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise. This suggests that out of 10 stocks with this combination, up to seven may beat consensus estimates [4]. Importance of Earnings ESP - The Earnings ESP metric compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions. A positive Earnings ESP indicates bullish sentiment among analysts regarding the company's earnings prospects [5][6]. Upcoming Earnings Report - Primerica's next earnings report is anticipated to be released on February 11, 2025, and the current positive indicators suggest a potential for continued strong performance [6].

Industry Overview - The Zacks Life Insurance industry includes companies offering life insurance, retirement benefits, and wealth management solutions, with products such as annuities, term life insurance, and health insurance [3] - The industry is expected to grow, with gross written premiums projected to reach $1.34 trillion in 2025, driven by increasing demand for protection products and retirement benefits [4] - The global life insurance market is forecasted to reach $2.5 trillion by 2026, with a CAGR of 3.54% from 2025 to 2029 [9] Key Trends - **Interest Rate Cuts**: The Fed cut interest rates three times in 2024, totaling 150 basis points, with two more cuts expected in 2025, impacting life insurers' investment returns [5][6] - **Product Redesign**: Insurers are shifting from long-duration term life insurance to bundled investment products offering guaranteed retirement income, life, and healthcare benefits [7] - **Technology Adoption**: Increased automation, digital platforms, and online sales are driving premium growth and operational efficiency, with investments in AI, blockchain, and cognitive intelligence [11][12] Industry Performance - The life insurance industry has collectively gained 26.9%, outperforming the Finance sector's 22% increase and matching the S&P 500's 26.9% growth [15] - The industry's trailing 12-month price-to-book (P/B) ratio is 1.91X, lower than the S&P 500's 8.67X and the Finance sector's 3.97X [16] Companies to Watch - **Reinsurance Group of America (RGA)**: Zacks Rank 1, with a 5.5% YoY earnings increase expected in 2025 and a four-quarter average earnings surprise of 17.74% [18][19] - **Primerica (PRI)**: Zacks Rank 2, with a 7.2% YoY earnings increase expected in 2025 and a four-quarter average earnings surprise of 4.89% [20][21] - **Sun Life Financial (SLF)**: Zacks Rank 3, with a 10.6% YoY earnings increase expected in 2025 and a long-term earnings growth rate of 7% [22][23] - **Lincoln National (LNC)**: Zacks Rank 3, with a 9% YoY earnings increase expected in 2025 and a long-term earnings growth rate of 17% [24][25] - **Voya Financial (VOYA)**: Zacks Rank 3, with a 26.3% YoY earnings increase expected in 2025 and a long-term earnings growth rate of 15.9% [26][27] Growth Drivers - Rising demand for retirement benefits due to the aging baby boomer population [4] - Strong sales in emerging markets like China, India, and Latin America, expected to boost premiums by 5.7% in 2025 [10] - Increased automation and digitalization driving premium growth and operational efficiency [11][12]

Primerica (PRI) has been on a downward spiral lately with significant selling pressure. After declining 10% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is ...

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