Primerica (PRI) Q3 2024 earnings summary

Executive summary

• Achieved double-digit growth in adjusted operating earnings and EPS, with adjusted net operating income up 21% and adjusted EPS up 28% year over year.

• Total revenues reached $774.1 million in Q3 2024, up 11% year over year, driven by strong performance in Term Life and Investment and Savings Products.

• Net income from continuing operations rose 24% to $194.7 million; diluted EPS from continuing operations increased 31% to $5.72.

• Life-licensed sales force grew 7% year over year to 148,890, with a 17% increase in new life licenses and record recruiting momentum.

• Exited the senior health business, with results now reported in discontinued operations.

Financial highlights

• Adjusted net operating income reached $193.2 million, a 21% increase; adjusted operating revenues up 10% to $770.1 million.

• Diluted adjusted operating EPS was $5.68, up 28% year over year.

• Repurchased $129 million of common stock and paid $31 million in dividends in Q3; $463 million returned to shareholders year to date.

• Revenues in the term life segment rose 5% to $450 million; pre-tax income up 26%.

• Investment and savings product segment revenues increased 22% to $266 million; pre-tax income up 24%.

Outlook and guidance

• Projecting full-year growth in the life license sales force of 5% and full-year life sales growth of 3%.

• Raising 2024 ISP sales forecast to a range of 22%-25%.

• Fourth-quarter guidance: benefits and claims ratio around 58%, debt amortization ratio around 12%, and operating margin around 22%.

• Board declared a $0.90 per share dividend payable December 12, 2024.

• Management expects continued growth in sales force and in-force policies, with sufficient liquidity and capital.