Executive Summary

Q1 2025 delivered broad-based strength: adjusted EPS of $5.02 grew 20% y/y and GAAP diluted EPS of $5.05 grew 19% y/y, driven by record ISP sales and steady Term Life performance . Versus S&P Global consensus, PRI posted a beat on EPS ($5.02 vs $4.79*) and revenue ($804.8M vs $783.9M*) as ISP momentum outpaced expectations and Term Life remained stable (see Estimates Context).
Distribution and ISP were standouts: life-licensed sales force rose 7% y/y to 152,167; ISP product sales hit a record $3.6B (+28% y/y) and net inflows reached $839M, with average client assets up 14% y/y to $113B .
Term Life metrics were steady: benefits & claims ratio 58.2%, DAC+commission 12.0%, insurance expense ratio 7.7%, and operating margin 22.1%—all roughly in line with the prior year .
Capital deployment remained robust: PRI repurchased $118M of stock and declared a $1.04 dividend; RBC improved to ~470% from ~430% at 4Q, underscoring balance sheet strength . Management reiterated FY25 Term Life and expense outlooks, but flagged April moderation in investment activity amid macro uncertainty—an important near‑term stock narrative catalyst .

What Went Well and What Went Wrong

What Went Well
- Record ISP performance and strong client asset trends: “Total [ISP] product sales during the first quarter of 2025 reached $3.6 billion, a 28% increase… Net inflows were $839 million… Average client asset values were up 14% year-over-year” .
- Consistent Term Life margins: benefits & claims 58.2%, DAC+commission 12.0%, insurance expense 7.7%, operating margin 22.1%—all stable vs. prior year .
- Capital strength and returns: $118M buybacks, dividend of $1.04, and RBC ~470% at quarter‑end; CFO emphasized “significant deployable capital… and… ability to sustain capital strength” .
What Went Wrong
- Softer recruiting/licensing vs. 2024 comps: recruits fell 9% y/y and new life-licensed reps decreased 5% y/y as economic uncertainty weighed on activity .
- April moderation in investment sales momentum: management noted a “wait‑and‑see” client attitude amid volatility and macro uncertainty, tempering the strong Q1 ISP cadence .
- Life productivity slightly below historical range (0.19 vs 0.20–0.24): cost‑of‑living pressures on middle‑income families continue to be a headwind for new policy sales productivity .

Financial Results

Headline metrics vs prior quarters and consensus

Metric	Q3 2024	Q4 2024	Q1 2025 (Actual)	Q1 2025 Consensus*
Total Revenues ($M)	774.1	788.1	804.8	783.9
Diluted EPS (GAAP)	$5.72	$4.98	$5.05	$4.79
Diluted Adjusted Operating EPS	$5.68	$5.03	$5.02	—

Segment results (Adjusted Operating)

Segment ($000s)	Q1 2024	Q1 2025
Term Life Insurance – Revenues	440,412	457,841
Term Life Insurance – Income Before Tax	138,367	146,785
Investment & Savings Products – Revenues	243,716	290,812
Investment & Savings Products – Income Before Tax	65,562	81,271
Corporate & Other – Revenues	50,654	54,903
Corporate & Other – Income Before Tax	(11,708)	(8,028)

Margins

Margin	Q1 2024	Q4 2024	Q1 2025
Term Life Operating Margin	22.0%	21.3%	22.1%

KPIs

KPI	Q1 2024	Q1 2025
Life-Licensed Sales Force	142,855	152,167
Recruits	110,710	100,867
New Life-Licensed Reps	12,949	12,339
Life Insurance Policies Issued	86,587	86,415
Life Productivity (policies per rep per mo.)	0.20	0.19
Issued Term Life Face Amount ($B)	28.7	28.5
ISP Product Sales ($B)	2.8	3.6
Avg. Client Asset Values ($B)	99.5	113.0
ISP Net Inflows ($M)	274	839
Share Repurchases ($M)	—	118
Dividend per share	—	$1.04
RBC ratio (PLI Co.)	—	~470%

Non-GAAP reconciliation note: Adjusted EPS differs from GAAP by ~$0.03 due to investment/MTM adjustments and tax effects .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Term Life Adjusted Direct Premium (ADP) growth	FY 2025	~5% (reiterated)	~5%	Maintained
Benefits & Claims ratio	FY 2025	~58% (reiterated)	~58%	Maintained
DAC + Insurance Commissions ratio	FY 2025	~12% (reiterated)	~12%	Maintained
Term Life Operating Margin	FY 2025	~22% (reiterated)	~22%	Maintained
Consolidated Insurance & Other Operating Expenses	FY 2025	Increase by ~$40M or 6–8%	Increase by ~$40M or 6–8%; Q2 growth consistent	Maintained
ISP Sales Growth	FY 2025	Mid- to high-single-digit growth (outlook)	Mid- to high-single-digit growth	Maintained

Management indicated April investment sales showed some moderation vs Q1 momentum, reflecting market volatility/uncertainty .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3–Q4 2024)	Current Period (Q1 2025)	Trend
Macro: Cost of living pressures on middle-income	Continued headwind; acknowledged in Q4 commentary	Still impacting productivity and sales decisions	Persistent headwind
ISP momentum and mix (VAs/managed accounts)	Strong sales; higher asset-based revenues on mix	Record sales; “flight to guarantees” lifts VAs; mix shift to higher-fee products	Positive, moderating in April
Term Life persistency/mortality	Q3 remeasurement gain aided margins	Persistency stabilizing; mortality favorable vs expectations	Normalizing/stable
Recruiting/licensing	Strong 2024 surge to record sales force	Softer y/y in Q1; still historically strong base; ~3% rep growth expected in 2025	Slower near-term, long-term constructive
Capital and RBC	RBC ~440% (Q3), ~430% (Q4)	RBC ~470%; $118M buybacks; dividend $1.04	Strengthened
Expenses/technology investment	Tech investments rising in 2024	Expense growth to ramp as delayed projects resume; +$40M or 6–8% in 2025	Up modestly in 2025

Management Commentary

CEO on business resilience: “Our results this quarter highlight the strength and consistency of our business… Momentum in our Investment and Savings Products segment, along with steady performance in our Term Life business, contributed to strong financial results” .
CEO on macro uncertainty and client behavior: “Since April, we’re starting to see some resistance to investment sales momentum… a wait‑and‑see attitude… beginning to slow down some of the movement of money” .
CFO on Term Life outlook/margins: “We reiterate our full year 2025 outlook… ADP growth around 5%, the benefits and claims ratio around 58%, the [DAC + insurance commission] ratio around 12% and operating margin around 22%” .
CFO on expenses: “First quarter expense levels were a couple of million dollars lower than planned… We are maintaining our full year outlook for expenses to increase by around $40 million or 6% to 8% in 2025 with second quarter growth consistent” .
CFO on capital: “Our holding company ended the quarter with $407 million in cash and invested assets. Primerica Life estimated RBC ratio was 470%” .

Q&A Highlights

Divergence between Term Life and ISP: Cost-of-living pressures hit term protection more quickly; VA demand benefits from guarantees in volatile markets; uncertainty is a headwind for both recruiting and ISP rollovers .
Outlook for ISP sales: Management assumes mid- to high-single-digit FY growth after an exceptionally strong Q1; April trends positive but decelerating with volatility .
Persistency/lapses: Lapses above pre‑pandemic assumption for older cohorts, but recent‑vintage lapse rates are at expectations; overall persistency stabilizing and expected to normalize over time .
Capital/RBC: RBC improved to ~470% with strong holdco liquidity; capital plan remains intact with a $450M 2025 buyback authorization .
Expenses/flex: Organization runs lean; can reduce expenses if necessary, but priority is to overcome macro headwinds rather than immediate cost cuts .

Estimates Context

Q1 2025 vs S&P Global consensus: Adjusted EPS $5.02 vs $4.79* (beat ~4.9%); Revenue $804.8M vs $783.9M* (beat ~2.7%). Consensus had 9 EPS and 5 revenue estimates for the quarter* (see table above).
Near-term consensus trajectory: EPS estimates for the next two quarters are ~$5.54* (Q4 2025) and ~$5.49* (Q1 2026), with revenue estimates ~$836.5M* and ~$846.9M*, respectively*.
Values retrieved from S&P Global.

Key Takeaways for Investors

Broad beat and robust mix: Strength in ISP (record sales, higher‑fee product mix) and steady Term Life margins yielded y/y EPS growth and a beat vs consensus*, supporting durability of the model .
Margin quality: Term Life ratios remain aligned with long‑term targets, reinforcing predictability of in‑force driven earnings amid variable new sales .
Capital cushion and returns: RBC ~470%, $118M buybacks, and $1.04 dividend underpin shareholder returns and confidence in capital generation .
Near-term watch items: April moderation in investment activity and softer recruiting/licensing suggest some deceleration vs Q1; track ISP sales cadence and distribution productivity into Q2 .
Guidance intact: Management reiterated FY25 Term Life (ADP +5%, ~58% B&C, ~12% DAC+comm, ~22% operating margin) and expense outlooks; narrative depends more on macro clarity than on company‑specific execution .
Trading setup: With beats on EPS and revenue*, stable Term Life margins, and visible capital returns, the tape may react to any incremental signs of stabilization in ISP flows and recruiting or to macro headlines reducing uncertainty.
Values retrieved from S&P Global.

Footnotes:

Values retrieved from S&P Global.

Sources: Q1 2025 8‑K/press release/supplement ; Press release ; Q1 2025 earnings call transcript ; Prior quarters for trend analysis: Q4 2024 8‑K/press release/supplement ; Q3 2024 8‑K/press release/supplement .

Primerica, Inc. (PRI)·Q1 2025 Earnings Summary