Primerica reports record year, sees AI as a tool to improve sales and operations
Primerica reported a record year for 2025, returning 79% of capital to stockholders through share repurchases and dividends and improving return on adjusted equity by 200 basis points.
The company ended the year with 151,524 life licensed representatives, largely unchanged from the prior year, including 25,620 who also hold securities licenses to support clients with savings and retirement needs.
In the fourth quarter, Primerica issued 76,143 new term life policies, representing $26 billion in new coverage. For the full year, new policy volume declined 10% from the prior year’s record level, while estimated annualized issued premiums fell 7%.
Fourth quarter operating revenues were $340 million, up 19% year over year. On a reported basis, total revenues reached $853.7 million, an 8% increase, while net income rose 18% to $197.0 million. Earnings per diluted share increased 23% to $6.13.
Within the Term Life segment, fourth quarter revenues were $456.8 million, up 1%, and pre tax operating income increased 5% to $146.6 million. The operating margin improved slightly to 21.5%, while the benefits and claims ratio remained stable year over year.
Policy productivity remained modest, with an average of 0.17 new policies per representative per month, and the number of new policies issued declined 15% compared to the prior year quarter.
Management said the company is using artificial intelligence to improve efficiency and support its sales force. Current use cases include personalized licensing training, employee productivity tools, and language translation to serve multilingual clients. Primerica also plans to apply AI to financial needs analysis, quoting, and its client app.
Despite broader concerns about AI disrupting insurance distribution, the company said its relationship driven model remains a key advantage. Management noted that selling term life still requires personalized guidance and motivation, areas where representatives’ existing relationships and shared life experience with clients are difficult to replicate through automation. Primerica said it views AI as a way to enhance its business rather than a threat, helping streamline workflows while strengthening the role of its representative network.
