Primerica (PRI) investor relations material

Executive summary

• Adjusted operating revenues rose 9% year-over-year in Q1 2026, with adjusted net operating income up 13% and adjusted operating EPS up 19% to $5.96; net income was $190.1 million, up 12% year-over-year.

• Growth was primarily driven by the Investment & Savings Products (ISP) segment, which saw record client demand, higher asset values, and 24% earnings growth, while Term Life Insurance remained stable.

• Returned $179 million to shareholders via $141 million in share repurchases and $38 million in dividends, with $135 million repurchased in Q1 2026 and $340 million remaining under the current program.

• Adapted distribution strategy to smaller, local events and launched new incentives to boost recruiting and licensing.

• Maintained a conservative investment strategy with a high-quality fixed-maturity portfolio and robust liquidity.

Financial highlights

• ISP sales rose 22% to a record $4.3 billion; client asset values reached $127 billion, up 15% year-over-year.

• Term Life operating revenues increased 1% to $464.6 million; pre-tax operating income up 6% to $154.9 million.

• Consolidated insurance and other operating expenses were $168 million, up 3% year-over-year.

• Mortgage loan volume in the U.S. was $113 million, a 21% increase year-over-year.

• Net premiums increased 2%, and adjusted direct premiums increased 4%.

Outlook and guidance

• Full-year 2026 ISP sales growth expected in the upper single-digit range, with continued growth supported by favorable demographic trends and strong client demand.

• Term Life policies issued projected to be flat to down 2% for 2026; adjusted direct premiums expected to grow ~4%.

• Benefits and claims ratio for Term Life anticipated around 58%, DAC amortization and insurance commissions ratio 12%-13%, and operating margin around 21%.

• Full-year expense growth expected at 7%-8%, with Q2 expenses up 10%-12%.

• Management anticipates sufficient liquidity and capital to support operations and growth over the next 12 months.