Primerica reports Q4 2024 results

Primerica  held its Q4’24 earnings call on Feb 12, 2025. Key highlights:

• Financial Performance – Adjusted net operating income rose 11% YoY, with EPS up 17%. Full-year adjusted net operating income increased 14%, with EPS up 20%.
• Revenue Growth – Q4 revenue reached $788 million, surpassing consensus estimates by 2%. Full-year revenue hit $3.09 billion, exceeding $3 billion for the first time.
• Shareholder Returns – Primerica repurchased $425 million in stock and paid $113 million in dividends, returning 79% of adjusted net operating income to shareholders.
• Salesforce – Ended the year with a record-high 151,611 life-licensed representatives, a 7% increase from 2023.
• Life Insurance Growth – Issued 89,700 term life policies in Q4, providing $30 billion in coverage.
• Investment & Savings Products (ISP) – Sales reached $3.3 billion, up 41% YoY, with net client inflows of $731 million (up from $172 million in Q4 2023).
• Persistency & Lapses – Lapse rates remained elevated due to cost-of-living pressures but stabilized in Q4, with long-term policies showing strong retention.
• Variable Annuities & Managed Accounts – VA sales rose 44% YoY, while managed account sales increased 47%, driven by demand for retirement income solutions.
• Mortgage Business – Closed $400 million in US mortgage volume, up 35% YoY, and expanded licensing to 33 states. As background, Primerica Mortgage, LLC partners with Rocket Mortgage to offer mortgage brokerage services, including home purchase loans, refinancing, and home equity solutions.
• Technology Investment – Increased tech spending to enhance automation, agent productivity, and client experience.
• 2025 Outlook – Expecting moderate sales force growth (3%), life policy growth (2%), and ISP sales growth in the mid-to-high single digits, while maintaining financial discipline.