Primerica (PRI) Q2 2025 earnings summary

Executive summary

• Adjusted net operating income rose 6% year-over-year to $180.4 million, with adjusted operating EPS up 10% to $5.46 for Q2 2025.

• Total revenue reached $793.3 million, nearly flat year-over-year, while adjusted operating revenues grew 7%.

• Net income for Q2 2025 was $178.3 million, down from $209.3 million in Q2 2024 due to prior year non-recurring gains and higher expenses.

• Life-licensed sales force grew 5% year-over-year to 152,592 representatives, with 12,903 new licenses in Q2.

• ISP segment achieved record client asset values, up 14% year-over-year, and sales rose 15% to $3.5 billion.

Financial highlights

• Adjusted net operating income was $180.4 million, up 6% year-over-year; diluted adjusted operating EPS rose 10% to $5.46.

• Net income from continuing operations was $178.3 million, down from $209.3 million in Q2 2024.

• ISP segment revenues increased 14% to $298.3 million; pre-tax income up 6% to $79.4 million.

• Term Life segment revenues rose 3% to $441.8 million; pre-tax income up 5% to $155 million.

• Book value per share rose 14% to $70.90; adjusted book value per share up 12%.

Outlook and guidance

• Expect full-year ISP sales growth to exceed 10%.

• Project total new life policies issued to decline around 5% in 2025 versus 2024.

• Full-year guidance for term life: ADP growth around 5%, benefits and claims ratio near 58%, DAC amortization and insurance commissions ratio at 12%, and operating margin at 22%.

• Expense outlook for 2025: increase by $40 million or 6%-8%.

• Management expects continued growth in the independent sales force and client asset values, but notes potential headwinds from economic uncertainty and regulatory changes in Canada.