Primerica Q2 Earnings Call Highlights

Primerica NYSE: PRI reported second-quarter results that reflected continued strength in its investment and savings products business, while life insurance sales remained pressured by financial uncertainty among middle-income households. Chief Executive Officer Glenn Williams said adjusted operating revenues increased 8% from a year earlier and adjusted net operating income rose 11%. Adjusted operating earnings per share increased 17% to $6.41. The quarterly EPS result included a $4.6 million income-tax benefit from a tax equity investment, adding about $0.15 per diluted share. The company returned $173 million to stockholders during the quarter, including $135 million in share repurchases and $37 million in dividends. Year-to-date capital returns totaled $352 million. Primerica’s investment and savings products, or ISP, segment was the principal contributor to earnings growth. Segment revenues rose 21% year over year and pretax operating income increased 31%, according to Williams. Total securities sales increased 23%, with managed account sales up 43%, mutual fund sales up 20%, and variable annuity sales up 17%. Assets under management reached a record $140 billion at the end of June, up 16% from June 30, 2025. The company generated approximately $397 million of net inflows during the quarter. Chief Financial Officer Tracy Tan said the ISP segment accounted for about 42% of consolidated revenue, compared with 37% in the prior-year period. Sales-based revenue increased 17%, while asset-based revenue rose 28%, exceeding the 19% increase in average client asset values. Tan attributed the faster growth in asset-based revenue in part to demand for U.S. managed accounts and Canadian mutual funds distributed under the principal distributor model. She said those offerings generate higher levels of recurring fee revenue. About 75% of client assets are invested for retirement purposes, which Tan said supports the durability of the company’s asset-based revenue. Primerica expects full-year ISP sales to increase 10% to 15% in 2026, although management said comparisons will become more difficult in the second half of the year. Primerica’s Term Life operating revenue was largely unchanged from a year earlier at $444 million, while adjusted direct premiums increased 3.4%. However, estimated annualized issued premiums, including additions to existing policies, declined 9%, and issued policies fell 12% from the prior-year quarter. Williams said demand for life insurance has been affected by economic uncertainty and pressure on middle-income families’ budgets. Productivity improved sequentially to 0.18 policies per life-licensed representative but remained below historical levels. The company expects full-year issu