Primerica (PRI)
NYSE:PRI
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Primerica
(NYSE:PRI)
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Rating:74Outperform
Price Target:
$314.00
â–²(15.06% Upside)
Action:ReiteratedDate:02/28/26
The score is driven primarily by strong financial performance (high margins/ROE and solid cash generation) and a favorable valuation (low P/E with a modest dividend). Earnings call commentary is constructive but tempered by conservative 2026 outlook items (Term Life sales/recruiting softness, persistency risk, and higher expenses). Technicals are the main near-term drag, with the stock trading below major moving averages and negative MACD.
Positive Factors
High ROE and strong profitability
Sustained high ROE (~33%) and strong operating/net margins indicate Primerica generates superior returns on capital versus peers. That profitability enables durable internal funding for growth, supports repeatable shareholder returns, and gives management flexibility for buybacks or reinvestment over the medium term.
Negative Factors
Declining Term Life policy issuance
A persistent drop in new term policy issuance reduces future premium flows and long‑term liability scale. For a company whose core economics depend on representative-driven life sales, sustained issuance declines can erode revenue growth, reduce cross‑sell opportunities, and pressure long‑run earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
High ROE and strong profitability
Sustained high ROE (~33%) and strong operating/net margins indicate Primerica generates superior returns on capital versus peers. That profitability enables durable internal funding for growth, supports repeatable shareholder returns, and gives management flexibility for buybacks or reinvestment over the medium term.
Read all positive factors
Primerica (PRI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.77B
Dividend Yield1.59%
Average Volume (3M)195.00K
Price to Earnings (P/E)10.5
Beta (1Y)0.75
Revenue Growth5.63%
EPS Growth67.55%
CountryUS
Employees2,289
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)6.13
Shares Outstanding31,397,081
10 Day Avg. Volume194,672
30 Day Avg. Volume194,997
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)3.45
Price to Sales (P/S)2.61
P/FCF Ratio9.57
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue3.03
Enterprise Value/Gross Profit5.84
Enterprise Value/Ebitda9.75
Forecast
1Y Price Target
$279.00Price Target Upside2.24% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)23.95
Revenue Forecast (FY)$3.46B
Primerica Business Overview & Revenue Model
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; a...
How the Company Makes Money
Primerica makes money primarily through (1) insurance underwriting/distribution economics and (2) fees and commissions from securities and investment account services.
1) Term life insurance and other insurance-related revenue
- Premiums and unde...
Primerica Key Performance Indicators (KPIs)
Primerica Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call emphasized multiple record financial metrics, strong growth and profitability driven by the ISP segment, improved return on adjusted equity, healthy client asset growth, and disciplined capital returns—highlighting the company's balanced fee-based model and strong liquidity. Offsetting factors include weaker Term Life sales and recruiting versus 2024, elevated lapse/persistency considerations, expense growth from technology and scaling investments, and sensitivity to equity markets. Management provided conservative 2026 guidance for policy growth and ISP sales while outlining initiatives to drive recruiting, productivity and technology-led efficiencies.Positive Updates
Record Financial Performance
Full-year adjusted net operating income of $751 million, up 10% year-over-year; record adjusted operating revenues of $3.3 billion, up 8%; diluted adjusted operating income per share of $22.92, up 16% year-over-year. Fourth quarter adjusted net operating income rose 16% and fourth quarter diluted adjusted operating income per share increased 22%.
Negative Updates
Term Life Sales Decline
Full-year new term policies declined 10% versus record 2024 levels; estimated annualized issued term life premiums declined 7% year-over-year. Q4 experienced 76,143 new term policies ($26 billion of new term protection) but also a 15% decline in the number of issued policies in the quarter.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Financial Performance
Full-year adjusted net operating income of $751 million, up 10% year-over-year; record adjusted operating revenues of $3.3 billion, up 8%; diluted adjusted operating income per share of $22.92, up 16% year-over-year. Fourth quarter adjusted net operating income rose 16% and fourth quarter diluted adjusted operating income per share increased 22%.
Read all positive updates
Company Guidance
Primerica’s 2026 guidance is conservative but constructive: management expects full-year growth in recruiting and licensing that should translate to about 1% growth in the life sales force; Term Life policy growth is guided to roughly 2–3% with adjusted direct premiums (ADP) expected to grow ~4%, a benefits-and-claims ratio near 58%, DAC amortization and insurance commissions around 12–13%, and a full‑year Term Life operating margin of ~21%; ISP sales are projected to grow about 5–7% (ISP has become a larger contributor), consolidated expenses are expected to rise ~7–8% (Q1 dollars modestly higher but at the low end of that percentage range), and the company enters the year with $521M of HoldCo cash, Primerica Life estimated RBC ~455%, an invested asset portfolio duration of 5.2 years, and new investment yields near 4.92%, while maintaining a conservative stance on market sensitivity and continued capital returns.Primerica Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.23B | 3.09B | 2.75B | 2.66B | 2.71B |
| Gross Profit | 2.60B | 1.31B | 1.10B | 1.03B | 1.06B |
| EBITDA | 1.02B | 987.68M | 830.30M | 780.07M | 703.98M |
| Net Income | 751.23M | 470.52M | 576.60M | 472.07M | 477.36M |
Balance Sheet | |||||
| Total Assets | 15.01B | 14.58B | 15.03B | 14.64B | 16.12B |
| Cash, Cash Equivalents and Short-Term Investments | 4.02B | 1.68B | 1.62B | 3.05B | 3.18B |
| Total Debt | 1.82B | 1.95B | 2.04B | 2.08B | 2.04B |
| Total Liabilities | 12.57B | 12.32B | 12.96B | 12.61B | 14.03B |
| Stockholders Equity | 2.45B | 2.26B | 2.07B | 2.03B | 2.08B |
Cash Flow | |||||
| Free Cash Flow | 880.76M | 832.86M | 658.62M | 731.86M | 632.27M |
| Operating Cash Flow | 906.81M | 862.09M | 692.52M | 757.66M | 656.96M |
| Investing Cash Flow | -235.57M | -232.25M | -90.05M | -200.05M | -923.38M |
| Financing Cash Flow | -595.73M | -551.14M | -479.62M | -457.85M | 107.97M |
Primerica Technical Analysis
Positive
272.89
Price Trends
256.95
Positive
257.76
Positive
260.77
Positive
Market Momentum
4.80
Negative
69.50
Neutral
87.88
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRI, the sentiment is Positive. The current price of 272.89 is above the 20-day moving average (MA) of 257.81, above the 50-day MA of 256.95, and above the 200-day MA of 260.77, indicating a bullish trend. The MACD of 4.80 indicates Negative momentum. The RSI at 69.50 is Neutral, neither overbought nor oversold. The STOCH value of 87.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRI.
Primerica Risk Analysis
Primerica disclosed 40 risk factors in its most recent earnings report. Primerica reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Primerica Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $11.93B | 10.08 | 20.92% | 0.74% | 3.96% | 18.84% | |
74 Outperform | $8.77B | 10.48 | 32.29% | 1.59% | 5.63% | 67.55% | |
73 Outperform | $12.46B | 12.91 | 6.63% | 2.22% | 1.22% | -55.13% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $3.82B | 15.25 | 5.75% | 2.91% | 0.16% | -62.88% | |
61 Neutral | $7.18B | 6.91 | 12.03% | 3.93% | -9.46% | -70.45% | |
58 Neutral | $8.05B | 276.83 | 0.26% | 2.98% | 104.31% | -102.85% |
* Financial Sector Average
PRI
Primerica
280.80
22.98
8.91%
LNC
Lincoln National
37.38
7.00
23.03%
GL
Globe Life
152.67
30.37
24.84%
UNM
Unum Group
77.82
1.99
2.62%
JXN
Jackson Financial Incorporation
115.49
40.22
53.44%
FG
F&G Annuities & Life Inc
28.62
-5.09
-15.10%
Primerica Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Primerica Updates Bylaws to Expand Special Meeting Rights
Neutral
Feb 23, 2026
On February 20, 2026, Primerica’s board approved a Fourth Amended and Restated set of bylaws that formalizes stockholders’ ability to demand special meetings, provided they collectively hold at least a majority of the company’s v...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Primerica Posts Record 2025 Results, Boosts Shareholder Returns
Positive
Feb 11, 2026
On February 11, 2026, Primerica reported its fourth-quarter and full-year 2025 results, highlighted by record investment and savings products sales, which rose 24% year over year, and a 15% increase in client asset values to a record $129 billion....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.