Key Takeaways:
Primerica (NYSE: PRI) reported first-quarter adjusted earnings of $5.96 per share, beating analyst estimates of $5.45 and marking a 19 percent increase from a year earlier.
"Another quarter of strong financial performance was driven by continued momentum in our Investment and Savings Products business and supported by the stability of our Term Life business," Glenn Williams, Chief Executive Officer, said in a statement. "ISP remains a key driver of growth and reflects the trust clients place in our long‑term savings solutions."
The financial services company posted strong top- and bottom-line growth, though its sales force numbers saw a decline. The company did not disclose an updated forecast for the upcoming quarter.
The company's positive results were largely powered by its Investment and Savings Products (ISP) division, which saw revenues climb 21 percent to $350.6 million. Pre-tax income for the segment jumped 24 percent to $100.9 million, benefiting from a 15 percent increase in average client asset values to $129.9 billion and strong investor demand for variable annuities.
The Term Life Insurance segment produced stable results, with revenues up 1 percent to $464.6 million and pre-tax operating income growing 6 percent to $154.9 million. However, the company reported a 2 percent year-over-year decrease in its life-licensed sales force to 149,732 representatives and a 17 percent drop in new recruits.
Primerica continued its capital return program, buying back $135 million of its common stock in the first quarter. The Board of Directors also approved a dividend of $1.20 per share, payable on June 12, 2026.
The sustained growth in the high-margin investment business signals that Primerica's strategy to meet the needs of middle-income families is paying off, even as it faces challenges in expanding its sales network. Investors will watch the company's earnings webcast on May 7 for more details on its strategy to address the decline in recruitment.
This article is for informational purposes only and does not constitute investment advice.
