Primerica (PRI) Q2 2026 earnings summary

Executive summary

• Total revenues for Q2 2026 increased 9% year-over-year to $865.1 million, driven by record investment sales of $4.4 billion (up 23%) and higher net premiums in Term Life Insurance.

• Net income rose 13% to $202.3 million, with adjusted net operating income up 11% to $201 million and adjusted operating EPS up 17% to $6.41, aided by a $4.6 million tax benefit.

• Investment & Savings Products segment saw revenues up 21% and pre-tax income up 31%, with client asset values reaching a record $140 billion, up 16%.

• Life-licensed sales force totaled 148,612 at quarter-end, down 3% year-over-year, with recruiting up 2% but licensing and total life-licensed representatives below prior year.

• The effective tax rate decreased to 21.7% from 23.9% due to federal tax benefits from a new tax equity investment.

Financial highlights

• Net premiums increased 1% to $435.5 million; adjusted direct premiums up 3.4% year-over-year.

• Commissions and fees grew 20% to $368.6 million, reflecting strong asset-based and sales-based revenue growth.

• Consolidated insurance and other operating expenses were $166 million, up 8% year-over-year, mainly due to variable growth costs, compensation, and technology investments.

• Return on adjusted equity was 33.1%, up 90 basis points year-over-year.

• Cash and cash equivalents at quarter-end were $600.2 million; RBC ratio at 440%.

Outlook and guidance

• Management expects continued growth in the Investment and Savings Products segment, supported by favorable demographics and strong equity markets.

• Full year sales force size projected to be flat to down 2% versus 2025; issued life policies expected to decline by mid-single digits, with improvement anticipated in the second half.

• Full year ISP sales projected to increase 10%-15% in 2026; adjusted direct premiums expected to grow ~3.5% for the year.

• Expense growth forecasted at 10%-12% in Q3 and 6%-7% in Q4, with full year expense growth at 7%-8%.

• The company anticipates sufficient liquidity and capital to support operations and growth over the next 12 months.