Primerica, Inc.

Primerica, Inc. is a leading provider of financial products and services to middle-income households in the United States and Canada, with 151,524 ¹ life insurance-licensed sales representatives as of December 31, 2025. The company operates in the financial services industry, specifically focusing on term life insurance, which it underwrites, and mutual funds, annuities, managed investments, and other financial products, which it distributes primarily on behalf of third parties. Primerica insured over 5.5 million ² lives and had approximately 3.1 million ³ client investment accounts as of December 31, 2025. The company defines its target middle-income clients as households with $30,000 to $130,000 ⁴ of annual income, and according to the 2024 U.S. Census Bureau Current Population Survey, approximately 52% ⁵ of U.S. households fall in this range. The company believes there is significant opportunity to meet the increasing array of financial services needs of its clients.

Primerica operates in a highly competitive environment with respect to the sale of financial products and the retention of the more productive members of the independent sales force. Competitors with respect to its term life insurance products consist both of stock and mutual insurance companies, as well as other financial intermediaries. In offering its securities products, independent sales representatives compete with a range of other advisers, broker-dealers and direct channels, including wirehouses, regional broker-dealers, independent broker-dealers, insurers, banks, asset managers, registered investment advisers, mutual fund companies and other direct distributors. The mutual funds that Primerica offers face competition from other mutual fund families and alternative investment products, such as exchange-traded funds, while its managed investment programs compete with other fee-based advisory services offered by financial services firms. Its annuity products compete with products from numerous other companies. Primerica is a leading provider of individual term life insurance in the United States.

Primerica's business model is a modified traditional insurance agency model designed to reach and serve middle-income consumers efficiently through an independent sales force of independent contractors. The company generates revenue through three operating segments: Term Life Insurance, Investment and Savings Products, and Corporate and Other Distributed Products. The Term Life Insurance segment benefits from the stability of a large in-force block of life insurance policies, with a substantial portion of revenues generated from recurring premiums, and since the company reinsures up to 90% of the mortality risk, claims expense is largely fixed, resulting in revenues that exhibit characteristics similar to those of a fee-based model. The Investment and Savings Products segment revenues are entirely fee-based, including sales commissions and investment advisory and administrative service fees. Collectively, the company's revenue streams, which are either fee-based or exhibit characteristics similar to fee-based revenues, generate substantial cash flow and contribute to strong returns on invested capital.

The Term Life Insurance segment offers term life insurance to clients in the United States, its territories, and Canada through three life insurance subsidiaries: Primerica Life Insurance Company, National Benefit Life Insurance Company, and Primerica Life Insurance Company of Canada. The segment's products include the Primerica PowerTerm rapid issue product for face amounts up to $300,000 ⁶ and the Primerica PrecisionTerm traditionally underwritten product for face amounts in excess of $150,000 ⁷. The average face amount of in-force policies issued in 2025 was approximately $252,900 ⁸. During 2025, the company issued 331,787 ⁹ new policies, and at year-end had 3,010,563 ¹⁰ policies in force with a total face amount of $967,612 million ¹¹. The segment's results are primarily driven by sales volumes, how closely actual experience matches actuarial assumptions, terms and use of reinsurance, and expenses. The company reinsures between 80% and 90% ¹² of the mortality risk for all term life insurance policies, excluding coverage under certain riders.

The Investment and Savings Products segment distributes and sells a variety of investment products including mutual funds, managed investments, variable annuities, fixed indexed annuities, fixed annuities, and segregated funds. As of December 31, 2025, approximately 25,620 ¹³ independent sales representatives were licensed to distribute mutual funds in the United States and Canada, approximately 13,655 ¹⁴ were licensed and appointed to distribute annuities in the United States, and approximately 11,136 ¹⁵ were licensed to sell segregated funds in Canada. During 2025, Franklin Templeton, Invesco, American Funds and Fidelity collectively accounted for approximately 99% ¹⁶ of the company's mutual fund sales in the United States. The segment earns fee revenue from up-front commissions and payments earned on the sale of such products, trailing fees and payments earned based upon client asset values, and account-based revenue. Total product sales for the segment in 2025 were $14,930 million ¹⁷, and average client asset values were $119,571 million ¹⁸. The Corporate and Other Distributed Products segment includes mortgage loan originations, prepaid legal services, auto and homeowners' insurance referrals, and other financial products, all originated by third parties, as well as net investment income and corporate expenses.

In 2025, the company recruited 358,316 ¹⁹ new independent sales representatives and added 48,722 ²⁰ newly life insurance-licensed independent sales representatives. The number of life insurance-licensed independent sales representatives at period end was 151,524 ²¹, relatively flat compared to 151,611 ²² at the end of 2024. The company processed over 17,000 ²³ life insurance death benefit claims in 2025 on policies underwritten by it and sold by independent sales representatives. Primerica paid $1,764,049 thousand ²⁴ in death benefits, $65,191 thousand ²⁵ in waiver of premium benefits, and $20,674 thousand ²⁶ in terminal illness benefits during 2025. The company's insurance subsidiaries paid $271,700 thousand ²⁷ in dividends from Primerica Life and $45,256 thousand ²⁸ from Primerica Life Canada during 2025. On November 19, 2025, the Board of Directors authorized a new share repurchase program for purchases of up to $475.0 million ²⁹ of outstanding common stock from November 19, 2025 through December 31, 2026.

For the fiscal year ended December 31, 2025, total revenues were $3,291,713 thousand ³⁰, compared to $3,089,143 thousand ³¹ in 2024. Net income from continuing operations was $543,315 thousand ³² in 2025, compared to $478,807 thousand ³³ in 2024. Diluted earnings per share from continuing operations was $16.88 ³⁴ in 2025, compared to $14.18 ³⁵ in 2024. The company's Term Life Insurance segment generated net premiums of $1,783,903 thousand ³⁶ in 2025, up 3% from $1,729,171 thousand ³⁷ in 2024. The Investment and Savings Products segment generated commissions and fees of $1,275,864 thousand ³⁸ in 2025, up 18% from $1,082,889 thousand ³⁹ in 2024. Net investment income was $167,152 thousand ⁴⁰ in 2025, compared to $155,501 thousand ⁴¹ in 2024.

Primerica's strategic plan includes growth pillars focused on understanding and solving the financial challenges faced by current and prospective clients, enabling leaders in the independent sales force to grow their teams and build new leaders, expanding representative and client digital experiences to create connected conversations, deepening the talent pool to ensure success, and proactively ensuring the company's image accurately reflects who it is. The company believes there is significant opportunity to meet the increasing array of financial services needs of its clients and intends to leverage the independent sales force to meet such client needs. In Canada, the company rolled out distribution of segregated fund contracts underwritten by The Canada Life Assurance Company as its primary segregated fund product offering in 2025, with a full rollout in December 2025. The company also continued to expand its mortgage program into new states in 2025.

The company's growth in the Investment and Savings Products segment is being driven by sustained positive investor sentiment following generally strong equity market performance in 2023 through 2025, with variable annuity product sales continuing to grow as guarantees became more appealing. The increase in product sales for managed investments resulted from continued strength in investor demand as well as the expansion of investment strategies offered on the platform. These trends have been further aided by the growing population of investors reaching retirement age seeking the protection provided by annuity products as well as the investment advisory services and broader products offered through the managed accounts program. The company also sees opportunity in the mortgage brokerage business, having continued to expand its mortgage program into new states in 2025.The company's operational outlook includes a focus on enhancing information technology, its client relationship manager tool, updates to client and independent sales representative-facing software tools and applications, implementation of AI technologies to improve efficiencies, and streamlining of communications systems. The company's data center houses an enterprise-class IBM mainframe as well as modern distributed and cloud technology infrastructure. The company has 2,833 ⁴² employees as of December 31, 2025, with 2,530 ⁴³ in the U.S. and 303 ⁴⁴ in Canada. The company's employee retention rate in 2025 was 91% ⁴⁵.

The company's capital allocation strategy includes share repurchases and dividends. On November 19, 2025, the Board of Directors authorized a share repurchase program for purchases of up to $475.0 million ⁴⁶ of outstanding common stock from November 19, 2025 through December 31, 2026. In the first quarter of 2026, the company declared a quarterly dividend to stockholders of $1.20 ⁴⁷ per share. The company's primary liability is $600.0 million ⁴⁸ in principal amount of senior unsecured notes. The company also has a redundant reserve financing transaction and a Revolving Credit Facility.

The company faces headwinds from elevated cost of living for middle-income families, which has adversely impacted persistency for term life insurance policies, with policy lapse rates remaining above long-term historical levels in 2025. Economic uncertainty has impacted consumer behavior and could adversely impact demand for products. Elevated mortgage interest rates have lowered demand for refinance mortgages and purchase-money mortgages offered by Primerica Mortgage. The company also faces headwinds from regulatory changes in Canada, including the Canadian Securities Administrators' proposal to ban multiple fund manager relationships with one principal distributor, which could require restructuring of the Principal Distributor model for mutual fund sales. The Canadian Council of Insurance Regulators mandated a cessation of deferred sales charges on segregated fund contracts entered into after May 31, 2023, leading to a decline in segregated funds product sales beginning in June 2023.

The company faces constraints from the regulatory environment, including heightened standards of conduct such as the SEC's Regulation Best Interest and state-level fiduciary rules, which increase regulatory and litigation risk. Changes to state or provincial licensing examination processes may make it more difficult for independent sales representatives to obtain or retain their life insurance and/or securities licenses. The company also faces risks from currency fluctuations in the United States dollar versus the Canadian dollar, as the Canadian dollar is the functional currency for its Canadian subsidiaries and financial results reported in U.S. dollars are affected by changes in the currency exchange rate.

Primerica's business is materially dependent on its ability to continue to attract new recruits and retain independent sales representatives, as the company experiences a high rate of turnover among part-time representatives and the loss of key Regional Vice Presidents with large sales organizations could adversely affect recruitment and sales. The company faces significant risk from potential adverse tax, legal, or financial consequences if the classification of its independent contractor sales representatives is changed by the IRS, DOL, or other authorities, which could result in significant costs for tax withholding, social security payments, and employee benefits. The life insurance business is subject to significant losses if actual mortality, persistency, or disability experience differs from actuarial assumptions, and while the company reinsures 90% ⁴⁹ of mortality risk on new business, the waiver of premium benefit is not reinsured and material changes in assumptions can have a disproportionate impact. The Investment and Savings Products segment is heavily dependent on a limited platform of mutual fund and annuity products offered by a relatively small number of companies, with Franklin Templeton, Invesco, American Funds and Fidelity collectively accounting for approximately 99% ⁵⁰ of U.S. mutual fund sales in 2025, and a decision by one or more of these companies to alter or discontinue arrangements could materially adversely affect the business. The company's U.S. mortgage brokerage business is impacted by U.S. mortgage interest rates, and elevated rates have lowered demand for refinance and purchase-money mortgages, with continued elevated rates potentially continuing to impact consumer demand.

Management's message emphasizes the company's purpose of creating financially independent families and its strategic vision to build unparalleled financial services distribution capabilities that enable clients, the independent sales force, home office associates, and stockholders to achieve their financial goals. The guiding principles underlying this vision are serving middle-income families, maximizing the success of the independent sales force, preserving and strengthening the company's culture, and protecting the business model. Management highlights five growth pillars: understanding and solving financial challenges of clients, enabling leaders in the independent sales force to grow their teams, expanding digital experiences, deepening the talent pool, and proactively ensuring the company's image accurately reflects who it is. The company believes there is significant opportunity to meet the increasing array of financial services needs of its clients and intends to leverage the independent sales force to meet such needs, which will drive long-term value for all stakeholders. Management notes that the company updated its corporate strategy in early 2025 to re-align its mission, strategic vision, guiding principles, and growth pillars.