Primerica (PRI) investor relations material

Executive summary

• Q2 2025 delivered 6% growth in adjusted net operating income and a 10% increase in diluted adjusted operating EPS, with balanced performance across product lines despite economic uncertainty.

• Life-licensed sales force grew 5% year-over-year to 152,592, with 12,903 new representatives licensed in Q2.

• Total revenue reached $793.3M, nearly flat year-over-year, while adjusted operating revenues rose 7%.

• ISP segment achieved record client asset values, up 14% year-over-year, and sales rose 15% to $3.5B.

• Returned $163M to stockholders in Q2 via $129M in share repurchases and $34M in dividends.

Financial highlights

• Adjusted net operating income reached $180.4M, up 6% year-over-year; diluted adjusted operating EPS rose 10% to $5.46.

• Net income for Q2 2025 was $178.3M, down from $209.3M in Q2 2024 due to prior year non-recurring gains and higher expenses.

• Term Life revenues grew 3% to $442M, with pretax income up 5% to $155M; ISP segment revenues increased 14% to $298M, pretax income up 6% to $79M.

• Book value per share rose 14% to $70.90; adjusted book value per share up 12%.

• Return on equity (ROE) was 31.3%, with adjusted ROAE at 32.2%.

Outlook and guidance

• Projecting full-year ISP sales growth above 10%, with continued strong sales in July.

• Full-year Term Life guidance unchanged: ADP growth ~5%, benefit and claims ratio ~58%, DAC amortization and insurance commissions ratio ~12%, operating margin ~22%.

• Sales force expected to grow 2–3% for full year 2025.

• Persistency and productivity may remain pressured by elevated cost of living and economic conditions.

• Management remains confident in the sales force's ability to support clients amid economic uncertainty.