Primerica (PRI) Q4 2024 earnings summary

Executive summary

• Achieved record-breaking results in 2024, including a record life-licensed sales force of 151,611, up 7% year-over-year, and robust investment product and term life business performance.

• Adjusted Net Operating Income rose 11% in Q4 and 14% for the year; Adjusted Operating Income per Share up 17% in Q4 and 20% for the year.

• Ended the year with $3 billion in revenue for the first time; Q4 revenues rose 12% to $788.1 million.

• Board declared a 16% dividend increase to $1.04 per share and authorized a new $450 million share repurchase program for 2025.

• Returned 79% of adjusted net operating income to shareholders in 2024 through buybacks and dividends.

Financial highlights

• Q4 adjusted operating revenues grew 12% to $790.1 million; adjusted net operating income up 11% to $169.2 million.

• Full-year adjusted operating revenues rose 10% to $3.04 billion; adjusted net operating income up 14% to $680.9 million.

• Q4 Term Life revenues grew 4% to $451 million; ISP revenues up 29% to $286 million; ISP sales up 41% in Q4; client asset values reached $112.1 billion, up 16%.

• Net client inflows for Q4 were $731 million; Q4 return on equity from continuing operations was 31.9%.

• Repurchased $425 million in stock and paid $113 million in dividends in 2024.

Outlook and guidance

• Expect Life Sales Force growth to normalize to around 3% in 2025; continued focus on recruiting and licensing.

• Anticipate full-year issued life policies to grow around 2% in 2025 due to cost-of-living headwinds.

• Project full-year sales growth in ISP segment in the mid to high single-digit range for 2025; favorable equity market conditions anticipated.

• Term Life ADP growth expected at 5% in 2025, with stable Benefits and Claims and DAC ratios.

• Full-year consolidated insurance and other operating expenses expected to rise by $40 million (6%-8%).