Primerica Q1 2023 results

Primerica hosted its Q1 ’23 earnings call yesterday. The highlights –

• Adjusted operating revenues of $695 million remained largely unchanged 11,000 new life licensed reps added during the quarter, which represents an 11% increase year-over-year, while adjusted net operating income of $129 million grew 10%.
• ~93,500 individuals joined Primerica during the first quarter; a 10% increase over the prior year period.
• Over 11,000 new life licensed reps added during the quarter; an 11% increase YoY.
• Ended the quarter with 136,430 life licensed reps.
• Term Life – introduced more rate classes – “we’re able to better match risk and price, which allows our clients to purchase more insurance coverage.”
• Issued 84,500 new life insurance policies during the quarter; a 2% increase YoY.
• Productivity at 0.21 policies per life license rev per month.
• Estimated annualized issued term life premiums were $89 million; up 6%.
• Issued face amount of term life – $28.1 billion; up 14% YoY – “we believe the high cost of living will moderate sales growth in the near term, but we believe full year growth in issued policies will be in the mid-single-digit range.”
• Entered the 2022 enrollment and the 2023 renewal periods with about half the number of agents compared to the previous year and a focus on agent productivity.
• CAC per approved policy improved to $814 during the quarter.
• “And what we’re seeing is that we’re getting better at telling our story. There’s a better story to tell with our success as we go forward. And we just see the desire in a disrupted kind of employment dynamic around us of people looking for alternatives, looking for additional part-time income to offset the higher cost of living or looking for alternative career paths. And so we just believe that right now, we’ve got a very appealing story, which is being well received, but there was no artificial stimulus used in the first quarter.” – Primerica CEO Glenn Williams.