Primerica (PRI) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 results with adjusted operating revenues of $3.3B, adjusted net operating income of $751M, and adjusted EPS of $22.92, reflecting year-over-year growth of 8%, 10%, and 16% respectively.

• ISP sales reached a record $14.9B for the year, up 24% year-over-year, with client asset values at an all-time high of $129B, up 15%.

• Returned 79% of net operating income to shareholders via buybacks and dividends, with a 15% dividend increase and new $475M repurchase program for 2026.

• Earnings growth was driven by the ISP segment, while the Term Life segment provided stability despite a decline in new policies issued.

• Life-licensed sales force ended the year at 151,524, nearly unchanged from prior year.

Financial highlights

• Adjusted operating revenues reached $3.3B, up 8% year-over-year; full-year adjusted net operating income was $751M, up 10%; adjusted EPS was $22.92, up 16%.

• Q4 2025 adjusted net operating income was $197M, up 16% year-over-year; Q4 diluted EPS was $6.13, up 23%.

• Return on adjusted equity increased to 33.1%, up 200 basis points year-over-year.

• Benefits and claims ratio for Q4 was 57.8%, down from 58.6% in the prior period.

• Adjusted stockholders' equity at year-end was $2.40B, up 9% year-over-year.

Outlook and guidance

• Expect 2026 adjusted direct premiums to grow ~4%, with stable benefit and claims ratio (~58%) and DAC ratio (12%-13%).

• Project full-year operating margin around 21%, with some seasonal variation.

• ISP sales growth forecasted at 5%-7% for 2026; life license sales force expected to grow ~1%.

• Dividend increased by 15% in Q1 2026, with a $475M share repurchase program approved for 2026.

• Consolidated expenses projected to rise 7%-8% in 2026, with Q1 expenses higher due to equity compensation vesting.