Primerica Reports Fourth Quarter 2025 Results

DULUTH, Ga.--( BUSINESS WIRE)--Primerica, Inc. (NYSE: PRI) reported financial results for the quarter ended December 31, 2025. Total revenues were $853.7 million, an increase of 8% from the fourth quarter of 2024. Net income of $197.0 million increased 18% when compared to net income from continuing operations in the prior year period, while net earnings per diluted share of $6.13 increased 23% compared to net earnings per diluted share from continuing operations in the prior year period.

Adjusted operating revenues of $853.5 million increased 8% compared to the fourth quarter of 2024. Adjusted net operating income of $196.9 million increased 16%, while adjusted operating earnings per diluted share of $6.13 grew 22% compared to the prior year period.

Comparing financial results for the full year, net income of $751.2 million in 2025 increased 4% compared to net income from continuing operations in 2024, while net earnings per diluted share of $22.91 in 2025 increased 9% compared to net earnings per diluted share from continuing operations in 2024. Adjusted net operating income of $751.4 million in 2025 increased 10% compared to 2024, while adjusted operating earnings per diluted share of $22.92 in 2025 increased 16% compared to 2024.

Fourth quarter results were driven by record ISP sales and rising client asset values, supported by favorable equity market performance. The Term Life segment also saw continued earnings growth.

“I am pleased with our 2025 financial results, which reflected the complementary balance of our business model. The Term Life business continues to provide stability through its large in-force block of business, while the Investment and Savings Products business is increasingly driving growth,” said Glenn Williams, Chief Executive Officer of Primerica, Inc. “At the core of our success is the strength of our sales force and their continued commitment to serving middle-income families.”

Fourth Quarter Distribution & Segment Results

Distribution Results

Q4 2025

Q4 2024

% Change

Life-Licensed Sales Force

151,524

151,611

Recruits

75,369

95,497

(21

New Life-Licensed Representatives

10,998

14,620

(25

Life Insurance Policies Issued

76,143

89,664

(15

Life Productivity (1)

0.17

0.20

Issued Term Life Face Amount ($ billions) (2)

26.1

29.6

(12

ISP Product Sales ($ billions)

4.1

3.3

Average Client Asset Values ($ billions)

128.2

112.3

Closed U.S. Mortgage Volume ($ million brokered)

130.9

121.0

(1)

Life productivity equals the average monthly policies issued divided by the average number of life insurance licensed representatives.

(2)

Includes face amount on issued term life policies, additional riders added to existing policies, and face increases under increasing benefit riders.

Segment Results

Q4 2025

Q4 2024

% Change

($ in thousands)

Adjusted Operating Revenues:

Term Life Insurance

456,832

450,578

Investment and Savings Products

340,335

286,048

Corporate and Other Distributed Products (1)

56,341

53,508

Total adjusted operating revenues (1)

853,508

790,134

Adjusted Operating Income (Loss) before

income taxes:

Term Life Insurance

146,578

139,541

Investment and Savings Products

100,608

81,988

Corporate and Other Distributed Products (1)

(288

)

(993

)

Total adjusted operating income before income taxes (1)

246,898

220,536

(1)

See the Non-GAAP Financial Measures section and the Adjusted Operating Results reconciliation tables at the end of this release for additional information.

Life Insurance Licensed Sales Force

The Company’s life licensed sales force ended the fourth quarter of 2025 largely unchanged from year-end 2024 at 151,524 representatives. While recruiting and new licenses were lower than the prior year quarter, we recruited a total of 75,369 individuals and 10,998 new representatives obtained their life insurance licenses, demonstrating the continued interest in the Primerica opportunity and our commitment to helping families achieve financial independence.

Term Life Insurance

The number of new life insurance policies issued during the fourth quarter decreased 15% year-over-year. Productivity as measured by the average monthly rate of new policies issued per life-licensed independent sales representative was 0.17. The Company continues to support the sales force with training designed to help representatives guide clients in understanding and prioritizing their financial needs.

Fourth quarter revenues of $456.8 million increased 1% compared to the prior year period, while pre-tax operating income of $146.6 million increased 5%. The benefits and claims ratio was 57.8% compared to 58.6% in the prior year period. Excluding the $5.2 million remeasurement gain recognized in the current year period and the $1.5 million remeasurement loss recognized in the prior year period, the benefits and claims ratio was largely consistent year over year. The DAC amortization and insurance commissions ratio remained stable at 12.2%, while the insurance expense ratio at 8.5% was up modestly compared to 8.0% in the prior year period. The Term Life operating margin was 21.5%, up modestly compared to 21.3% in the prior year period.

Investment and Savings Products

During the fourth quarter of 2025, total product sales were $4.1 billion, a new Company record and a 24% increase compared to the prior year period. Strong demand across all major product lines supported sales growth, while favorable equity market performance led to a 15% increase in client asset values year-over-year. Net inflows during the fourth quarter of 2025 were $325 million.

Fourth quarter revenues of $340.3 million increased 19% year-over-year, while income before income taxes of $100.6 million increased 23%. Growth in sales-based commission revenues modestly outpaced revenue-generating sales due to the continued strong demand for variable annuities. Asset-based commission revenues grew 21%, supported by a favorable mix-shift toward U.S. managed accounts and Canadian mutual funds sold under the principal distributor model, compared to a 14% increase in average client asset values. Sales-based and asset-based commission expenses grew in line with related revenues.

Corporate and Other Distributed Products

During the fourth quarter of 2025, the segment recorded a pre-tax adjusted operating loss of $0.3 million compared to a pre-tax adjusted operating loss of $1.0 million in the prior year period. Adjusted net investment income increased $3.6 million compared to the prior year period largely due to the continued growth of the invested asset portfolio.

Taxes

The effective income tax rate was 20.2% during the fourth quarter of 2025 compared to the effective income tax rate from continuing operations of 23.3% in the fourth quarter of 2024. During the fourth quarter of 2025, we recognized an income tax benefit of $7.4 million, or $0.23 per diluted share, from the purchase of transferable federal income tax credits. Excluding the impact from these credits, our effective income tax rate was 23.3%.

Capital

During the fourth quarter, the Company repurchased $74.0 million of its common stock, completing the Board of Directors' authorization to repurchase $450 million of common stock during 2025. The Board of Directors authorized a new $475 million share repurchase program to occur through December 31, 2026. In addition, the Board of Directors approved a 15% increase to our first quarter dividend, now at $1.20 per share and payable on March 13, 2026 to stockholders of record on February 23, 2026. Primerica Life Insurance Company’s statutory risk-based capital (RBC) ratio was estimated to be 455% as of December 31, 2025.

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Company presents certain non-GAAP financial measures. Specifically, the Company presents adjusted direct premiums, other ceded premiums, adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income, diluted adjusted operating earnings per share and adjusted stockholders' equity.

Adjusted direct premiums and other ceded premiums are net of amounts ceded under coinsurance transactions that were executed concurrent with our initial public offering (the IPO coinsurance transactions) for all periods presented. We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate within this block of business.

Adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income and diluted adjusted operating earnings per share exclude the impact of investment gains (losses), including credit impairments, and fair value mark-to-market (MTM) investment adjustments for all periods presented. We exclude investment gains (losses), including credit impairments, and MTM investment adjustments in measuring these non-GAAP financial measures to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains (losses) and market pricing variations prior to an invested asset’s maturity or sale that are not directly associated with the Company’s insurance operations. Also excluded from these non-GAAP financial measures is the receipt of insurance proceeds in the second quarter of 2024 under a Representation and Warranty policy purchased in connection with the 2021 acquisition of e-TeleQuote Insurance, Inc. and subsidiaries (e-TeleQuote). We exclude this gain from our non-GAAP financial measures as it represents a non-recurring item that causes incomparability in the Company’s results.

Adjusted operating income before taxes, adjusted net operating income and diluted adjusted operating earnings per share also exclude corporate restructuring and related charges in 2024 associated with the decision to exit the senior health business. We exclude these items from our non-GAAP financial measures as they are not useful in evaluating the Company’s ongoing operations.

Adjusted net operating income and diluted adjusted operating earnings per share also exclude the tax effect of pre-tax operating adjustments and the valuation allowance recognized in the second quarter of 2024 for e-TeleQuote’s state net operating losses (NOLs), which is required to be reported in income taxes from continuing operations. We exclude these items from our non-GAAP financial measures as they represent the tax effect of pre-tax operating adjustments and/or non-recurring items that will cause incomparability between period-over-period results.

Adjusted stockholders’ equity excludes the impact of net unrealized investment gains (losses) recorded in accumulated other comprehensive income (loss) for all periods presented. We exclude unrealized investment gains (losses) in measuring adjusted stockholders’ equity as unrealized gains (losses) from the Company’s available-for-sale securities are largely caused by market movements in interest rates and credit spreads that do not necessarily correlate with the cash flows we will ultimately realize when an available-for-sale security matures or is sold. Adjusted stockholders’ equity also excludes the difference in future policy benefits calculated using the current discount rate and future policy benefits calculated using the locked-in discount rate at contract issuance recognized in accumulated other comprehensive income (loss). We exclude the impact from the difference in the discount rate in measuring adjusted stockholders' equity as such difference is caused by market movements in interest rates that are not permanent and may not align with the cash flows we will ultimately incur when policy benefits are settled.

Our definitions of these non-GAAP financial measures may differ from the definitions of similar measures used by other companies. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. Furthermore, management believes that these non-GAAP financial measures may provide users with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of the core ongoing business. These measures have limitations and users should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Reconciliations of GAAP to non-GAAP financial measures are attached to this release.

Earnings Webcast Information

Primerica will hold a webcast on Thursday, February 12, 2026, at 10:00 a.m. (ET), to discuss the quarter’s results. To access the webcast, go to https://investors.primerica.com at least 15 minutes prior to the event to register, download and install any necessary software. A replay of the call will be available for approximately 30 days. This release and a detailed financial supplement will be posted on Primerica’s website.

Forward-Looking Statements

Except for historical information contained in this press release, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from anticipated or projected results. Those risks and uncertainties include, among others, our failure to continue to attract and license new recruits, retain independent sales representatives or license or maintain the licensing of independent sales representatives; laws or regulations that could apply to our distribution model, which could require us to modify our distribution structure; changes to the independent contractor status of sales representatives; our or independent sales representatives’ violation of or non-compliance with laws and regulations; litigation and regulatory investigations and actions concerning us or independent sales representatives; differences between our actual experience and our expectations regarding mortality, persistency, disability or insurance as reflected in the pricing for our insurance policies; changes in federal, state and provincial legislation or regulation that affects our insurance, investment product and mortgage businesses; our failure to meet regulatory capital ratios or other minimum capital and surplus requirements; a significant downgrade by a ratings organization; the failure of our reinsurers or reserve financing counterparties to perform their obligations; the failure of our investment products to remain competitive with other investment options or the loss of our relationship with one or more of the companies whose investment products we provide; heightened standards of conduct or more stringent licensing requirements for independent sales representatives; inadequate policies and procedures regarding suitability review of client transactions; revocation of our subsidiary’s status as a non-bank custodian; a significant change to or disruption in the mortgage lenders’ mortgage businesses or an inability of the mortgage lenders to satisfy their contractual obligations to us; changes in prevailing mortgage interest rates or U.S. monetary policies that affect mortgage interest rates; economic downcycles that impact our business, financial condition and results of operations; major public health pandemics, epidemics or outbreaks or other catastrophic events; the failure of our or a third-party partner’s information technology systems, breach of our information security, failure of our business continuity plan or the loss of the Internet; any failure to protect the confidentiality of client information; the current legislative and regulatory climate with regard to privacy and cybersecurity; cyber-attack(s), security breaches; the effects of credit deterioration and interest rate fluctuations on our invested asset portfolio and other assets; incorrectly valuing our investments; changes in accounting standards may impact how we record and report our financial condition and results of operations; the inability of our subsidiaries to pay dividends or make distributions; laws and regulations in the U.S. and Canada, executive branch actions, orders and policies, judicial rulings and decisions by public officials impacting our business; the legislative and regulatory environment regarding climate change; litigation and regulatory investigations and actions; a significant change in the competitive environment in which we operate; the loss of key personnel or sales force leaders; the efficiency and success of business initiatives to enhance our technology, products and services; inability to effectively execute our corporate strategy; and fluctuations in the market price of our common stock or Canadian currency exchange rates. These and other risks and uncertainties affecting us are more fully described in our filings with the Securities and Exchange Commission, which are available in the "Investor Relations" section of our website at https://investors.primerica.com. Primerica assumes no duty to update its forward-looking statements as of any future date.

About Primerica, Inc.

Primerica, Inc., headquartered in Duluth, GA, is a leading provider of financial products and services to middle-income households in North America. Independent licensed representatives educate Primerica clients about how to better prepare for a more secure financial future by assessing their needs and providing appropriate solutions through term life insurance, which we underwrite, and mutual funds, annuities and other financial products, which we distribute primarily on behalf of third parties. We insured over 5.5 million lives and had approximately 3.1 million client investment accounts on December 31, 2025. Primerica, through its insurance company subsidiaries, was the #3 issuer of Term Life insurance coverage in the United States and Canada in 2024. Primerica stock is included in the S&P MidCap 400 and the Russell 1000 stock indices and is traded on The New York Stock Exchange under the symbol “PRI”.

PRIMERICA, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

December 31, 2025

December 31, 2024

(In thousands)

Assets

Investments:

Fixed-maturity securities available-for-sale, at fair value

3,265,246

2,946,126

Fixed-maturity security held-to-maturity, at amortized cost

1,175,380

1,303,880

Equity securities, at fair value

26,433

27,144

Trading securities, at fair value

12,801

3,011

Policy loans and other invested assets

56,233

50,881

Total investments

4,536,093

4,331,042

Cash and cash equivalents

756,227

687,821

Accrued investment income

30,122

28,100

Reinsurance recoverables

2,564,952

2,744,165

Deferred policy acquisition costs, net

3,915,998

3,680,430

Agent balances, due premiums and other receivables

275,171

282,607

Intangible asset

45,275

Income taxes

177,302

122,664

Operating lease right-of-use assets

41,900

47,023

Other assets

387,776

403,608

Separate account assets

2,281,520

2,209,287

Total assets

15,012,336

14,582,022

Liabilities and stockholders' equity

Liabilities:

Future policy benefits

6,818,179

6,503,064

Unearned and advance premiums

15,521

15,606

Policy claims and other benefits payable

495,356

488,350

Other policyholders' funds

356,427

402,323

Note payable

595,315

594,512

Surplus note

1,175,119

1,303,556

Income taxes

147,960

115,611

Operating lease liabilities

49,565

55,478

Other liabilities

546,596

549,160

Payable under securities lending

84,876

86,034

Separate account liabilities

2,281,520

2,209,287

Total liabilities

12,566,434

12,322,981

Stockholders' equity:

Common stock

318

334

Retained earnings

2,416,149

2,231,483

Accumulated other comprehensive income (loss), net of income tax:

Effect of change in discount rate assumptions on the liability for future policy benefits

134,594

224,833

Unrealized foreign currency translation gains (losses)

(15,836

)

(34,767

)

Net unrealized gains (losses) on available-for-sale securities

(89,323

)

(162,842

)

Total stockholders' equity

2,445,902

2,259,041

Total liabilities and stockholders' equity

15,012,336

14,582,022

PRIMERICA, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(Unaudited)

Three months ended December 31,

2025

2024

(In thousands, except per-share amounts)

Revenues:

Direct premiums

869,030

854,748

Ceded premiums

(420,843

)

(414,463

)

Net premiums

448,187

440,285

Commissions and fees

347,386

293,850

Net investment income

42,122

38,134

Investment gains (losses)

641

(1,179

)

Other, net

15,347

17,019

Total revenues

853,683

788,109

Benefits and expenses:

Benefits and claims

166,420

167,449

Future policy benefits remeasurement (gain) loss

(5,107

)

1,374

Amortization of deferred policy acquisition costs

82,813

76,905

Sales commissions

187,823

157,703

Insurance expenses

70,168

66,256

Insurance commissions

5,621

7,795

Interest expense

5,968

6,070

Other operating expenses

92,904

86,046

Total benefits and expenses

606,610

569,598

Income from continuing operations before income taxes

247,073

218,511

Income taxes from continuing operations

50,027

50,835

Income from continuing operations

197,046

167,676

Loss from discontinued operations, net of income tax

(606

)

Net income

197,046

167,070

Basic earnings per share:

Continuing operations

6.14

4.99

Discontinued operations

(0.02

)

Basic earnings per share

6.14

4.97

Diluted earnings per share:

Continuing operations

6.13

4.98

Discontinued operations

(0.02

)

Diluted earnings per share

6.13

4.96

Weighted-average shares used in computing earnings per share:

Basic

31,979

33,482

Diluted

32,032

33,541

PRIMERICA, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(Unaudited)

Year ended December 31,

2025

2024

(In thousands, except per-share amounts)

Revenues:

Direct premiums

3,462,780

3,393,604

Ceded premiums

(1,678,877

)

(1,664,433

)

Net premiums

1,783,903

1,729,171

Commissions and fees

1,275,864

1,082,889

Net investment income

167,152

155,501

Investment gains (losses)

(816

)

2,236

Other, net

65,610

119,346

Total revenues

3,291,713

3,089,143

Benefits and expenses:

Benefits and claims

665,927

648,163

Future policy benefits remeasurement (gain) loss

(37,389

)

(25,920

)

Amortization of deferred policy acquisition costs

322,903

298,136

Sales commissions

686,920

573,249

Insurance expenses

263,467

255,619

Insurance commissions

22,995

32,008

Interest expense

23,958

25,034

Other operating expenses

368,368

343,607

Total benefits and expenses

2,317,149

2,149,896

Income from continuing operations before income taxes

974,564

939,247

Income taxes from continuing operations

223,330

219,118

Income from continuing operations

751,234

720,129

Loss from discontinued operations, net of income tax

(249,611

)

Net income

751,234

470,518

Basic earnings per share:

Continuing operations

22.95

21.02

Discontinued operations

(7.29

)

Basic earnings per share

22.95

13.73

Diluted earnings per share:

Continuing operations

22.91

20.99

Discontinued operations

(7.28

)

Diluted earnings per share

22.91

13.71

Weighted-average shares used in computing earnings per share:

Basic

32,632

34,142

Diluted

32,680

34,199

PRIMERICA, INC. AND SUBSIDIARIES

Consolidated Adjusted Operating Results Reconciliation

(Unaudited)

Three months ended December 31,

2025

2024

% Change

(In thousands, except per-share amounts)

Total revenues

853,683

788,109

Less: Investment (losses) gains

641

(1,179

)

Less: 10% deposit asset MTM included in NII

(466

)

(846

)

Adjusted operating revenues

853,508

790,134

Income from continuing operations before income taxes

247,073

218,511

Less: Investment (losses) gains

641

(1,179

)

Less: 10% deposit asset MTM included in NII

(466

)

(846

)

Adjusted operating income before income taxes

246,898

220,536

Income from continuing operations

197,046

167,676

Less: Investment (losses) gains

641

(1,179

)

Less: 10% deposit asset MTM included in NII

(466

)

(846

)

Less: Tax impact of preceding items

(35

)

471

Adjusted net operating income

196,906

169,230

Diluted earnings per share from continuing operations

6.13

4.98

Less: Net after-tax impact of operating adjustments

(0.05

)

Diluted adjusted operating earnings per share

6.13

5.03

PRIMERICA, INC. AND SUBSIDIARIES

Consolidated Adjusted Operating Results Reconciliation

(Unaudited)

Year ended December 31,

2025

2024

% Change

(In thousands, except per-share amounts)

Total revenues

3,291,713

3,089,143

Less: Investment (losses) gains

(816

)

2,236

Less: 10% deposit asset MTM included in NII

567

1,037

Less: Insurance claim proceeds

50,000

Adjusted operating revenues

3,291,962

3,035,870

Income from continuing operations before income taxes

974,564

939,247

Less: Investment (losses) gains

(816

)

2,236

Less: 10% deposit asset MTM included in NII

567

1,037

Less Insurance proceeds

50,000

Less: Restructuring costs

(2,837

)

Adjusted operating income before income taxes

974,813

888,811

Income from continuing operations

751,234

720,129

Less: Investment (losses) gains

(816

)

2,236

Less: 10% deposit asset MTM included in NII

567

1,037

Less: Insurance claims proceeds

50,000

Less: Restructuring costs

(2,837

)

Less: Tax impact of preceding items

(123

)

Less: Valuation allowance on Senior Health NOLs

(11,080

)

Adjusted net operating income

751,412

680,896

Diluted earnings per share from continuing operations

22.91

20.99

Less: Net after-tax impact of operating adjustments

(0.01

)

1.15

Diluted adjusted operating earnings per share

22.92

19.84

TERM LIFE INSURANCE SEGMENT

Adjusted Premiums Reconciliation

(Unaudited)

Three months ended December 31,

2025

2024

% Change

(In thousands)

Direct premiums

865,138

850,667

Less: Premiums ceded to IPO coinsurers

183,123

195,039

Adjusted direct premiums

682,015

655,628

Ceded premiums

(419,273

)

(412,916

)

Less: Premiums ceded to IPO coinsurers

(183,123

)

(195,039

)

Other ceded premiums

(236,150

)

(217,877

)

Net premiums

445,865

437,751

CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT

Adjusted Operating Results Reconciliation

(Unaudited)

Three months ended December 31,

2025

2024

% Change

(In thousands)

Total revenues

56,516

51,483

Less: Investment gains (losses)

641

(1,179

)

Less: 10% deposit asset MTM included in NII

(466

)

(846

)

Adjusted operating revenues

56,341

53,508

Income (loss) before income taxes

(113

)

(3,018

)

Less: Investment gains (losses)

641

(1,179

)

Less: 10% deposit asset MTM included in NII

(466

)

(846

)

Adjusted operating income (loss) before income taxes

(288

)

(993

)

PRIMERICA, INC. AND SUBSIDIARIES

Adjusted Stockholders' Equity Reconciliation

(Unaudited)

December 31, 2025

December 31, 2024

% Change

(In thousands)

Stockholders' equity

2,445,902

2,259,041

Less: Net unrealized gains (losses)

(89,323

)

(162,842

)

Less: Effect of change in discount rate assumptions on the liability for future policy benefits

134,594

224,833

Adjusted stockholders' equity

2,400,631

2,197,050