Primerica, Inc. (PRI) | Investment Case

1. Company Snapshot

1.a. Company Description

Primerica, Inc., together with its subsidiaries, provides financial products to middle-income households in the United States and Canada.The company operates in four segments: Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products.The Term Life Insurance segment underwrites individual term life insurance products.

The Investment and Savings Products segment provides mutual funds and various retirement plans, managed investments, variable and fixed annuities, and fixed indexed annuities.The Senior Health segment offers segregated funds; and medicare advantage and supplement products.The Corporate and Other Distributed Products segment provides mortgage loans; prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense, and motor vehicle-related matters; ID theft defense services; auto and homeowners' insurance; home automation solutions; and insurance products, including supplemental health, accidental death, and disability for small businesses.

It distributes and sells its products through a network of 129,515 licensed sales representatives.Primerica, Inc.was founded in 1927 and is headquartered in Duluth, Georgia.

Show Full description

1.b. Last Insights on PRI

The recent 3-month performance of Primerica, Inc. was negatively impacted by escalating financial uncertainty and inflation concerns among middle-income Americans. The company's Household Budget Index (HBI) revealed a decline in purchasing power for necessities, with a 0.6% decrease in January and a 0.3% decrease in February. Additionally, Primerica's Financial Security Monitor (FSM) reported a 62% increase in financial stress among middle-income Americans, with 46% expecting to be worse off financially in the next year.

1.c. Company Highlights

Last Price	253.17
Change Percentage	0.24%
Open	253.04
Previous Close	252.56
Market Cap ( Millions)	8080
Volume	135484
Year High	298.75
Year Low	230.98
M A 50	263.16
M A 200	268.06

FCF Yield	10.28%
Dividend Yield	1.64%
ROE	31.64%
Debt / Equity	82.20%
Net Debt / EBIDTA	128.39%
Price To Book	3.57
Price Earnings Ratio	11.37
Price To FCF	9.72
Price To sales	2.52
EV / EBITDA	9.63

2. Primerica's Q3 2025 Earnings: A Strong Performance Amidst Economic Headwinds

Primerica delivered a robust financial performance in the third quarter of 2025, with adjusted net operating income reaching $206 million, up 7% year-over-year, and diluted adjusted operating EPS increasing 11% to $6.33, surpassing estimates of $5.52. The company's revenues in the Term Life segment rose 3% year-over-year to $463 million, driven by a 5% increase in adjusted direct premiums. The company's strong cash generation, driven by its fee-based ISP business and the steady premium contribution from its large in-force block of insurance policies, resulted in a holding company cash and invested assets balance of $370 million.

Publication Date: Nov -14

                                    📋 Highlights
                                    Adjusted Earnings Growth:
                                                Diluted adjusted operating EPS rose 11% to $6.33, outpacing 7% net income growth to $206 million.
ISP Segment Record Sales:
                                                Revenues surged 28% to $3.7 billion, driven by $363 million in net inflows and $127 billion in client assets (+14% YoY).
Term Life Sales Decline:
                                                New Term Life policies fell 15% to 79,379, but in-force coverage reached $967 billion, with 0.17 productivity per rep.
Strong Capital Position:
                                                Holding company cash reserves hit $370 million, while Primerica Life’s RBC ratio stood at 515%, exceeding regulatory targets.
Margin Expansion Outlook:
                                                Term Life Q4 margin targets 21% (2025 full-year margin >22%) through tech investments and digital marketing efficiency.

                                

Segment Performance

The ISP segment recorded a record $3.7 billion in sales, up 28% year-over-year, driven by strong demand across all product categories, including managed accounts, variable annuities, and mutual funds. Net inflows for the quarter were $363 million, an improvement from $255 million in the prior year period. The company's life sales, although down 15% year-over-year, still contributed $27 billion in new protection for clients, bringing the total in-force coverage to $967 billion.

Valuation and Outlook

With a Price-to-Book Ratio (P/B) of 3.58 and a Return on Equity (ROE) of 31.64%, Primerica's valuation appears reasonable. Analysts estimate next year's revenue growth at 5.2%. The company's ability to generate strong cash flows and its confidence in long-term growth prospects are positives. As Primerica navigates economic headwinds, its diversified business model and commitment to serving middle-income families position it for continued success.

Key Drivers and Challenges

As discussed during the earnings call, the company's sales force remains committed to serving clients amidst economic uncertainty. Glenn Williams noted that while cost of living headwinds are still a challenge, clients are adapting, and the business is expected to improve over time. The company's plans to increase capital release from its insurance companies and improve cash conversion in the fourth quarter are also expected to drive growth.

3. NewsRoom

Franklin Resources Inc. Cuts Stake in Primerica, Inc. $PRI

Dec -02

Source: defenseworld.net

American Century Companies Inc. Boosts Position in Primerica, Inc. $PRI

Dec -01

Source: defenseworld.net

Primerica Concert™ Allocation Series of Fund Portfolio Adviser Changes

Nov -20

Source: businesswire.com

Primerica Reloads Buyback Canon With a Fresh $475M Program

Nov -20

Source: zacks.com

Primerica Announces $475 Million Share Repurchase Program for 2026

Nov -19

Source: businesswire.com

CSSB and the UN-Supported Principles for Responsible Investment (PRI) to Host Sustainability Disclosure in Canada: Overcoming the Headwinds During Canada Climate Week Xchange

Nov -18

Source: newsfilecorp.com

Special Report Shows How Middle-Income Families Are Navigating the ‘Inflation Hangover'

Nov -18

Source: businesswire.com

Boston Partners Buys New Stake in Primerica, Inc. $PRI

Nov -17

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.66%)

6. Segments

Term Life Insurance

Expected Growth: 3.5%

Primerica's Term Life Insurance growth is driven by increasing demand for affordable protection products, a large underserved middle-income market, and a robust distribution network of independent representatives. Additionally, the company's focus on term life insurance and investment products for Main Street families, as well as its cost-effective business model, contribute to its 3.5% growth.

Investment and Savings Products

Expected Growth: 3.8%

Primerica's 3.8% growth in Investment and Savings Products is driven by increasing demand for retirement planning, rising middle-class income, and a growing need for financial literacy. Additionally, the company's distribution model, which leverages a large network of independent representatives, enables efficient customer acquisition and retention.

Corporate and Other Distributed Products

Expected Growth: 4.2%

Primerica's Corporate and Other Distributed Products segment growth of 4.2% is driven by increasing demand for investment and savings products, expansion of distribution channels, and strategic partnerships. Additionally, the company's digital transformation efforts and cost savings initiatives have improved operational efficiency, contributing to the segment's growth.

Senior Health

Expected Growth: 4.5%

Primerica's Senior Health segment growth of 4.5% is driven by increasing demand for Medicare Advantage and Supplement plans, expansion of distribution channels, and strategic partnerships. Additionally, the company's focus on digital transformation, improved customer engagement, and competitive pricing strategies contribute to the growth.

7. Detailed Products

Term Life Insurance

Provides temporary life insurance coverage for a specified period of time (e.g., 10, 20, or 30 years) with a fixed premium rate.

Investments

Offers a range of investment products, including mutual funds, exchange-traded funds (ETFs), and variable annuities, to help clients achieve their long-term financial goals.

Auto and Home Insurance

Provides insurance coverage for vehicles and homes, offering protection against accidents, theft, and natural disasters.

Long-Term Care Insurance

Helps cover the cost of long-term care services, such as assisted living, home care, or nursing home care, in the event of a chronic illness or disability.

Debt Consolidation Loans

Offers loans to consolidate high-interest debt, providing a single, lower-interest loan to simplify finances and reduce debt.

Identity Theft Protection

Provides monitoring and protection services to help prevent and respond to identity theft, including credit monitoring and restoration.

8. Primerica, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Primerica's insurance and financial services are not easily substitutable, but customers may choose to invest in other financial instruments or seek alternative insurance providers.

Bargaining Power Of Customers

Primerica's customers have limited bargaining power due to the company's diversified product offerings and large customer base.

Bargaining Power Of Suppliers

Primerica has a diversified supplier base, and its suppliers have limited bargaining power due to the company's large scale and negotiating power.

Threat Of New Entrants

The insurance and financial services industry has high barriers to entry, including regulatory hurdles and significant capital requirements, making it difficult for new entrants to compete with Primerica.

Intensity Of Rivalry

The insurance and financial services industry is highly competitive, with many established players competing for market share, which increases the intensity of rivalry for Primerica.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	49.01%
Debt Cost	3.95%
Equity Weight	50.99%
Equity Cost	9.42%
WACC	6.74%
Leverage	96.13%

11. Quality Control: Primerica, Inc. passed 6 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Unum

A-Score: 6.8/10

Value: 7.4

Growth: 5.7

Quality: 6.4

Yield: 5.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

CNO Financial Group

A-Score: 6.3/10

Value: 6.7

Growth: 6.4

Quality: 5.1

Yield: 4.0

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

Primerica

A-Score: 6.2/10

Value: 5.6

Growth: 7.3

Quality: 7.4

Yield: 3.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

F&G Annuities & Life

A-Score: 5.9/10

Value: 8.4

Growth: 8.4

Quality: 6.2

Yield: 5.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

American Equity

A-Score: 5.4/10

Value: 9.6

Growth: 7.3

Quality: 6.1

Yield: 1.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

Genworth Financial

A-Score: 5.0/10

Value: 7.3

Growth: 2.4

Quality: 6.0

Yield: 0.0

Momentum: 7.5

Volatility: 6.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-5.31%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.74%

Primerica, Inc. - US74164M1080

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on PRI

1.c. Company Highlights

Expensive

Higher Growth

Medium Volatility

Earnings Miss

Average Yield

Earnings Beats

Revenues Beats

Average Quality

Less Volatile

Revenues Miss

2. Primerica's Q3 2025 Earnings: A Strong Performance Amidst Economic Headwinds

Segment Performance

Valuation and Outlook

Key Drivers and Challenges

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.66%)

6. Segments

Term Life Insurance

Expected Growth: 3.5%

Investment and Savings Products

Expected Growth: 3.8%

Corporate and Other Distributed Products

Expected Growth: 4.2%

Senior Health

Expected Growth: 4.5%

7. Detailed Products

Term Life Insurance

Investments

Auto and Home Insurance

Long-Term Care Insurance

Debt Consolidation Loans

Identity Theft Protection

8. Primerica, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Primerica, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

253.17$

Current Price

253.17$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA