Primerica's Q2 2025: Unraveling Contradictions in Term Life Sales and Annuity Growth Amid Economic Uncertainty

Term life sales and economic uncertainties, sales force productivity and growth, term life sales trends and economic conditions, annuity sales growth and market dynamics are the key contradictions discussed in Primerica's latest 2025Q2 earnings call.



Financial Strength and Performance:
- Primerica reported adjusted net operating income of $180 million for Q2 2025, up 6% year-over-year, with diluted adjusted operating EPS increasing 10% to $5.46.
- The growth was driven by strong results in the investment savings products segment and steady contributions from the Term Life business, despite economic uncertainties.

Term Life and Sales Force Trends:
- Recruitment of 80,000 individuals and licensing of nearly 13,000 new representatives in Q2 2025, with a decline of 10% from the previous year's record.
- Challenges in Term Life sales include cost of living pressures and economic uncertainties, causing a year-over-year decrease in new Term Life insurance policies and face amount issued.
- However, Primerica remains optimistic about its sales force growth, expecting an increase of 2% to 3% in the full year of 2025.

Investment and Savings Products Growth:
- ISP segment sales increased 15% to $3.5 billion in Q2 2025, with net inflows of $487 million compared to $227 million in the prior year.
- Growth was attributed to strong demand for variable annuities and managed accounts, as well as a significant increase in client asset values to $120 billion, up 14% year-over-year.

Mortgage Business Expansion:
- The company's mortgage business in the U.S. and Canada showed strong year-over-year growth, with $133 million and $45 million in closed loan volumes, respectively, up 33% and 30% year-over-year.
- This expansion is viewed as a valuable financial tool for clients and a diversified income stream for the mortgage licensed sales force, with potential for further growth as interest rates adjust.