Primerica (PRI) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $169.1 million, up 23% year-over-year, with adjusted net operating income up 14% and adjusted operating EPS up 20%.

• Revenues increased 9% to $804.8 million, driven by higher commissions, fees, and net premiums.

• Life-licensed sales force grew 7% year-over-year to 152,167, though new recruits and new licenses declined.

• Returned $153 million to stockholders through $118 million in share repurchases and $35 million in dividends; declared $1.04/share dividend for June 2025.

• Completed the disposal of the Senior Health business in 2024, with discontinued operations showing a Q1 2025 net loss of $10.5 million.

Financial highlights

• Diluted adjusted operating EPS rose 20% to $5.02; diluted EPS from continuing operations was $5.05, up 19% year-over-year.

• Adjusted net operating income reached $168 million, a 14% increase year-over-year.

• Term Life operating revenues grew 4% to $458 million; pre-tax operating income up 6% to $147 million.

• ISP segment operating revenues increased 19% to $291 million; pre-tax income up 24% to $81 million; record $3.6 billion in product sales, up 28% year-over-year.

• Return on stockholders' equity (ROE) was 30.0%, up from 27.9% in the prior year period.

Outlook and guidance

• Expect full-year ISP sales growth in the mid to high single-digit range for 2025, reflecting anticipated ongoing market volatility.

• Term Life policies issued in 2025 expected to be broadly in line with 2024 levels.

• Full-year adjusted direct premium (ADP) growth for Term Life projected around 5%, with benefits and claims ratio at ~58%, DAC amortization and insurance commissions ratio at ~12%, and operating margin at ~22%.

• Full-year expenses expected to increase by $40 million, or 6%-8%.

• Management expects the balanced business model and personalized client support to provide resilience amid increasing economic uncertainty.