Primerica (PRI) investor relations material

Business overview and strategy

• Focuses on providing financial education and diversified financial services to middle-income households, aiming to help families achieve financial independence and security.

• Offers a broad range of products including term life insurance, investment and savings products, and other financial solutions for every stage of life.

• Utilizes a unique distribution model with an independent sales force, leveraging warm market lead generation and tailored training.

• Business segments are complementary and countercyclical, balancing insurance and investment products to mitigate market risks.

• Significant opportunities exist in addressing the $14 trillion life insurance protection gap and the $124 trillion wealth transfer expected through 2048.

Financial performance and key metrics

• Achieved record 2025 financial results: $3.3B adjusted operating revenues (+8% YoY), $751M adjusted net operating income (+10% YoY), $22.92 adjusted operating EPS (+16% YoY), and 33.1% ROAE (+200 bps YoY).

• 91% of revenues are fee-based or distribution-related, with 48% from reinsured life insurance, 43% from sales commissions and fees, and 9% from retained life insurance risk.

• Maintains a sizable licensed sales force: 151,524 life-licensed, 25,620 mutual fund-licensed, and 3,922 investment advisor representatives.

• Ended 2025 with $968B total face amount in-force and $129B in client asset values.

• Returned 79% of adjusted net operating income to shareholders in 2025 through dividends and share repurchases.

Business model and risk management

• Difficult-to-replicate model with significant underwriting experience in the middle-income market and a variable cost structure supporting high transaction volumes.

• Extensive compliance and supervision systems, with approximately 150 compliance employees and 4,900 licensed branch managers.

• Reinsures 80–90% of mortality risk on new policies to manage claim volatility and capital efficiency.

• Conservative investment portfolio: $4.1B, 99% investment grade, average rating A, 5.2-year duration, and 4.3% book yield.

• Strong financial strength ratings from major agencies, including A+ (AM Best) and AA- (S&P).