Primerica reports Q3 2024 results

Primerica held its Q3’24 earnings call on Nov 7, 2024. Key highlights:

• According to CEO Glenn Williams, “The appeal of our entrepreneurial business opportunity continues to resonate, supporting our ability to grow distribution and serve more middle-income families in the U.S. and Canada.”
• The company recruited over 142,000 individuals during the quarter and licensed 14,349 individuals, marking a 17% increase compared to the prior year. This sustained success in recruiting and licensing fueled a 7% increase in the life-licensed sales force year-over-year, totaling 148,890 life-licensed representatives as of September 30, 2024, and surpassing 150,000 licensed representatives at the end of October for the first time.
• Primerica projects that the life-licensed sales force will grow by 5% for the full year 2024, leveraging recruiting trends that historically drive strong licensing results over several months.
• The company issued 93,377 new term life policies during the quarter, a 5% increase from the previous year, adding $31 billion in new term life protection for middle-income families. Year-over-year productivity held steady, with an average monthly issuance rate of 0.21 new policies per life-licensed representative.
• Primerica expects full-year life sales growth of approximately 3%.
• Primerica recently entered into a new distribution agreement with Canada Life, granting its representatives access to a curated selection of Canada Life segregated funds. This expansion enhances product choice and offers additional options to better serve underserved Canadian families. The new funds are expected to be rolled out to representatives in phases starting next year.
• Sales volume in Primerica’s mortgage business has begun to improve, positioning the company to assist middle-income families with new mortgages or refinancing to consolidate debt. With licenses in 33 states and over 3,000 licensed representatives, the company has closed nearly $300 million in US mortgage volume year-to-date, reflecting a 25% increase compared to the first nine months of 2023.
• Primerica also offers a mortgage referral program in Canada, providing clients with opportunities for refinancing and new mortgages.
• As of September 30, 2024, Primerica exited its senior health business by relinquishing ownership of e-TeleQuote Insurance.
• John Barnidge from Piper Sandler asked about the potential for a mortgage refinancing wave given Fed’s influence primarily on the short end of the curve and the backdrop of rising living costs. CEO Glenn Jackson Williams explained that Primerica’s mortgage business takes a unique approach by advising clients on debt consolidation and payment acceleration, often achieving lower average interest rates and enabling clients to reallocate freed-up funds toward their living expenses or other financial services. This approach is interest rate-sensitive but provides value, especially when rising consumer debt rates outpace mortgage rate increases. He noted that Primerica aims for deliberate growth within the regulatory constraints of the mortgage sector and sees potential for expansion if interest rates decline, which would benefit clients and Primerica’s business.
• On annuities – “We do recognize that society and our client base is aging. So we have a larger percentage of people moving into the retirement or the decumulation phase, if you would. And then our representatives are getting better every day at combining the need with the solution.” – CEO Glenn Williams.