Primerica (NYSE:PRI) executives highlighted what they described as a record year in 2025, driven by growth in earnings, cash generation, and continued strength in the company’s investment and savings products business. On the company’s fourth-quarter earnings call, CEO Glenn Williams and CFO Tracy Tan also detailed a more cautious outlook for term life sales amid lingering pressure on middle-income household budgets, while pointing to signs that purchasing power may be improving.
Record-year results and capital return
Williams said 2025 was “another record year,” citing “solid earnings growth and strong cash flows” that reflected the “strength, stability, and balance” of Primerica’s model. He noted that the sales force set records including $968 billion in total in-force protection and a new high in client asset values of $129 billion.
Financial highlights shared on the call included:
- Fourth-quarter adjusted net operating income up 16% and diluted adjusted operating EPS up 22%.
- Full-year adjusted net operating income up 10% to $751 million, with diluted adjusted operating EPS of $22.92 up 16%.
- Tan said the company delivered record adjusted operating revenues of $3.3 billion (up 8%), record net operating income of $761 million (up 10%), and record EPS of $22.92 (up 16%) compared to 2024.
Distribution: recruiting softened in 2025, growth expected in 2026
Williams said both recruiting and licensing activity declined versus the fourth quarter of 2024 and also declined for the full year, which he attributed to uncertainty in the 2025 economic environment and difficult comparisons to “record-setting activity” in 2024.
Primerica ended 2025 with 151,524 life-licensed representatives, “largely unchanged” from the prior year-end. Williams added that 25,620 representatives held a securities license.
Looking ahead, Williams said the business opportunity continues to resonate with recruits, particularly as a way to supplement household income. Management expects full-year growth in recruiting and licensing in 2026, translating to about 1% growth in the life-licensed sales force.
Term life: demand pressured, conservative outlook for 2026
Williams said sales were mixed in 2025, with “headwinds” in term life tied to higher cost-of-living pressures affecting demand. In the fourth quarter, Primerica issued 76,143 new policies, providing $26 billion of new term life protection.
For the full year, the number of new policies issued fell 10% from prior-year record levels, while estimated annualized issued term life premiums (including both new policies and coverage additions) declined 7% compared to the 12 months ended December 31, 2024.
On the Q&A, Williams said the company’s 2026 outlook for 2%-3% policy growth assumes momentum improves over the year as middle-income purchasing power increases. He referenced the company’s Household Budget Index, noting it improved in 10 of 12 months during the year and crossed above the 100% baseline midyear, which he described as indicating purchasing power outpacing cost-of-living pressures for the population measured. However, he also said the company is maintaining a conservative outlook until trends are clearly materializing.
Tan provided more detail on the term life segment’s quarterly performance and 2026 expectations. She said adjusted direct premiums drove term life revenue to $457 million in the fourth quarter, while pre-tax income was $147 million, up 5% year-over-year, aided by a remeasurement gain in the current period versus a remeasurement loss in the prior period. She emphasized that even with a 15% decline in policies issued in the quarter, direct premiums and adjusted direct premiums still increased due to the stability of the in-force block and recurring premium payments.
Key term life metrics and guidance discussed included:
- Benefits and claims ratio of 57.8% versus 58.6% a year ago; the quarter included a $5 million remeasurement gain tied to favorable mortality experience and lower persistency.
- Lapse rates remained elevated relative to long-term reserve assumptions but were stable year-over-year; Tan said persistency should “gradually normalize” as families adjust to economic pressures.
- Term life operating margin of 21.5% versus 21.3% a year ago; Tan guided to about 21% for full-year 2026.
- For 2026, management expects adjusted direct premiums to grow about 4%, with key ratios roughly stable (benefits and claims around 58% and DAC/amortization/insurance commissions around 12%-13%).
Investment and savings products continue to drive growth
Primerica’s investment and savings products (ISP) results were a major focus, with Williams calling performance “very strong” and attributing it to client demand and the role of investment-licensed representatives in financial education.
In the fourth quarter, investment and savings product sales were $4.1 billion, up 24% year-over-year. Full-year sales reached $14.9 billion, also up 24%. Williams said growth was supported by demand across product lines, favorable demographic trends as clients approach retirement, and interest in more investment options on the managed account platform. Client asset values ended the year at $129 billion, up 15%, on net inflows of $1.7 billion and equity market momentum.
Tan said ISP has become a larger part of the company, rising from 32% of consolidated operating revenues in 2022 to 38% in 2025. In the fourth quarter, ISP operating revenues were $340 million (up 19%) and pre-tax income was $101 million (up 23%). She said sales-based revenues rose 21%, aided by strong demand for variable annuities, while asset-based revenues increased 21% on a favorable mix shift toward products with higher recurring fees.
Williams said the divergence between term life and ISP trends reflects different behaviors within the company’s target market, with ISP benefiting from “big dollars in motion” associated with retirement assets moving toward annuity solutions, while first-time term buyers are more affected by monthly budget constraints.
Looking to 2026, Williams said the company is mindful that ISP is sensitive to equity market conditions and maintained a conservative view, projecting 5%-7% sales growth for the year despite preliminary January results indicating continued growth.
Expenses, investments, AI initiatives, and other updates
Tan said consolidated insurance and other operating expenses were $163 million in the fourth quarter, up 7% year-over-year, reflecting higher variable costs tied to ISP growth and a ramp-up in technology investment at year-end. For 2026, she guided to 7%-8% expense growth and noted the first quarter is typically higher in dollars due to annual equity compensation vesting.
Asked about artificial intelligence, Williams said the company views AI as an opportunity to increase efficiency and improve workflows in both home-office processing and the sales process. He cited current uses including AI-powered licensing training tools that personalize study paths, employee productivity tools, and language translation tools. He also said the company plans to use AI to improve financial needs analysis, quoting, and the client app. Williams added that he does not see AI replacing Primerica’s relationship-driven sales model in the near term, emphasizing personalization and the motivation to act.
Management also discussed mortgage activity. Williams said the company ended 2025 with nearly 3,500 licensed U.S. representatives who closed more than $500 million in mortgage loan volume, up 26% from 2024. In Canada, a mortgage referral program delivered more than 18% year-over-year volume growth.
On capital and liquidity, Tan said the holding company ended the quarter with $521 million in cash and invested assets, and Primerica Life’s estimated RBC ratio was 455%. Responding to a question on capital movement, Tan said the company arranged a loan between its key U.S. life company and the holding company to increase cash available at the holding company, supporting a step-up in buybacks from $450 million to $475 million and a 15% dividend increase, along with continued organic investment.
About Primerica (NYSE:PRI)
Primerica, Inc is a financial services company that focuses on delivering term life insurance and investment products to middle-income households in the United States and Canada. The firm operates a network of independent, licensed representatives who provide personalized guidance on coverage needs, retirement planning, and wealth accumulation. Primerica’s core mission is to help clients obtain affordable life insurance protection while also offering a suite of savings and investment solutions designed for long-term financial security.
In addition to term life insurance, Primerica offers a range of financial products and services that include mutual funds, annuities, auto and home insurance through partner carriers, and personal lending solutions such as secured and unsecured loans.
