Primerica (PRI) Q3 2024 earnings summary

Executive summary

• Achieved 11% year-over-year revenue growth to $774.1 million in Q3 2024, with adjusted net operating income up 21% and adjusted EPS up 28%.

• Net income from continuing operations rose 24% to $194.7 million; diluted EPS from continuing operations increased 31% to $5.72.

• Life-licensed sales force grew 7% year-over-year to 148,890, surpassing 150,000 in October, driven by record recruiting and a 17% increase in new licenses.

• Exited the senior health business in Q3 2024, with results reported in discontinued operations and a $98 million tax benefit recognized.

• Robust investment and savings product sales, up 34% year-over-year, fueled by favorable equity markets and product enhancements.

Financial highlights

• Q3 2024 total revenues: $774.1 million, up 11% year-over-year; adjusted operating revenues up 10% to $770.1 million.

• Adjusted net operating income reached $193.2 million, up 21% year-over-year; diluted adjusted operating EPS was $5.68, up 28%.

• Term Life segment revenues grew 5% to $450.3 million, with pre-tax income up 26% to $178.4 million.

• Investment and Savings Products segment revenues rose 22% to $266.1 million, with pre-tax income up 24% to $79.9 million.

• $129 million in share repurchases and $31 million in dividends paid during Q3; $463 million returned to shareholders year-to-date.

Outlook and guidance

• Projecting full-year growth in life license sales force of 5% and life sales growth of 3%.

• ISP sales forecast for 2024 raised to 22%-25% growth.

• Fourth-quarter guidance: benefits and claims ratio ~58%, debt amortization ratio ~12%, operating margin ~22%.

• Full-year insurance and other operating expenses expected to grow 9% over 2023, excluding senior health.

• Board declared a $0.90 per share dividend payable December 12, 2024.