Primerica's Q1 2025 Earnings Call: Navigating Contradictions in Term Life Sales and Recruiting Dynamics

Impact of cost of living on Term Life sales, recruiting environment, recruiting and licensing dynamics, Term Life sales performance, and lapse rate expectations are the key contradictions discussed in Primerica's latest 2025Q1 earnings call.



Adjusted Financial Performance:
- Primerica reported adjusted net operating income of $168 million for the quarter, up 14% year-over-year, while diluted adjusted operating EPS increased 20% to $5.02.
- The growth was driven by the strength of the investment savings product business and steady contributions from the Term Life business.

Term Life and Recruitment Trends:
- Primerica issued 86,415 new Term Life policies, maintaining stability compared to prior years, but faced a 9% decline in new recruits and a 5% decline in new life licenses year-over-year.
- Economic uncertainty and cost of living pressures affected recruiting and insurance sales, impacting overall growth in the sales force.

Investment and Savings Product Segment Growth:
- Total sales for the Investment and Savings Product segment were $3.6 billion, up 28% year-over-year, with net inflows at $839 million.
- Growth was driven by strong demand across various products, including mutual funds, variable annuities, and managed accounts.

Capital Position and Return to Shareholders:
- Primerica's holding company ended the quarter with $407 million in cash and invested assets, with an estimated RBC ratio of 470%.
- The company returned $153 million to stockholders through share repurchases and dividends, reflecting the predictability of their cash flow and commitment to shareholder value.