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Primerica (PRI)
NYSE:PRI
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Primerica
(NYSE:PRI)
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Select Model
Rating:72Outperform
Price Target:
$281.00
▲(11.03% Upside)
Action:ReiteratedDate:12/09/25
Primerica's overall stock score reflects strong financial performance and positive earnings call insights, which are somewhat offset by weak technical indicators. The company's attractive valuation adds to its appeal, but the bearish technical trend and challenges in life sales temper the overall score.
Positive Factors
ISP Segment Growth
The strong growth in the Investment and Savings Products (ISP) segment indicates a robust demand for Primerica's financial products, enhancing revenue diversification and long-term market position.
Cash Flow Management
Effective cash flow management supports ongoing operations and potential investments, ensuring financial stability and capacity for strategic initiatives.
Share Repurchase Program
The share repurchase program reflects confidence in long-term growth prospects and enhances shareholder value by reducing outstanding shares.
Negative Factors
Decline in Life Sales
A decline in life insurance sales could impact revenue from a core business segment, potentially affecting overall growth and market share.
Recruiting Challenges
Recruiting challenges may hinder the expansion of Primerica's sales force, affecting future sales growth and market penetration.
Economic Pressures
Economic uncertainties affecting the middle market could suppress demand for financial products, impacting revenue growth and profitability.
Primerica (PRI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.29B
Dividend Yield1.59%
Average Volume (3M)226.39K
Price to Earnings (P/E)11.3
Beta (1Y)0.79
Revenue Growth5.63%
EPS Growth67.39%
CountryUS
Employees2,289
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)6.13
Shares Outstanding31,916,058
10 Day Avg. Volume264,216
30 Day Avg. Volume226,389
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)3.45
Price to Sales (P/S)2.61
P/FCF Ratio0.00
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue2.81
Enterprise Value/Gross Profit5.41
Enterprise Value/Ebitda9.07
Forecast
1Y Price Target
$300.00Price Target Upside18.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Primerica Business Overview & Revenue Model
Company DescriptionPrimerica, 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.
How the Company Makes MoneyPrimerica generates revenue through several key streams. The primary source is the sale of life insurance policies, where the company earns premium income from policyholders. Additionally, Primerica earns commissions and fees from the sale of investment products, such as mutual funds and annuities, which are marketed through its licensed representatives. The company also generates income from client fees associated with financial planning and debt management services. A significant aspect of Primerica's business model is its network of independent representatives, who are compensated through commissions based on their sales performance, creating a direct link between sales volume and company revenue. Partnerships with various financial institutions and product providers further enhance its offerings and revenue potential.
Primerica Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 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.Q4-2025 Updates
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%.
Strong ISP (Investment & Savings Products) Momentum
ISP full-year sales of $14.9 billion, up 24% year-over-year; Q4 ISP sales $4.1 billion, up 24% versus 2024. Q4 ISP operating revenues were $340 million, up 19%; Q4 ISP pre-tax income rose 23% to $101 million. ISP now represents 38% of consolidated operating revenues (from 32% in 2022). Annual net inflows of $1.7 billion and expected ISP sales growth of ~5%–7% in 2026, with strong tailwinds from demographic trends and product demand.
Client Assets and Market-Driven Growth
Client asset values reached $129 billion at year-end, up 15% versus 12/31/2024, supported by sustained equity market momentum and annual net inflows of $1.7 billion.
Improved Return on Adjusted Equity and Capital Deployment
Return on adjusted equity increased 200 basis points to 33.1%. Returned approximately 79% of net operating income in 2025 via share repurchases and dividends; buyback increased from $4.50 to $4.75 and the dividend was increased by 15%.
Term Life Revenue Resilience and Margin Stability
Despite policy issuance declines, adjusted direct premiums (ADP) and direct premiums grew; Q4 adjusted direct premiums totaled $457 million. Q4 Term Life pre-tax income was $147 million, up 5% year-over-year. Term Life operating margin remained stable at 21.5% (vs. 21.3% prior period) and benefit & claims ratio improved to 57.8% from 58.6%.
Strong Balance Sheet and Liquidity
Holding company cash and invested assets of $521 million at year-end; Primerica Life estimated RBC ratio of 455%. Invested asset portfolio duration 5.2 years, average quality A, average credit rating A+ on new purchases, and average yield on new investment purchases of 4.92% for the quarter.
Mortgage and Canadian Referral Growth
U.S. mortgage activity: nearly 3,500 licensed reps closed over $500 million in mortgage loan volume in 2025, up 26% year-over-year. Canadian mortgage referral volume grew more than 18% year-over-year.
Operational Cash Conversion and Consistent Returns
Historically consistent cash conversion around ~80%; management emphasized continued high conversion and disciplined capital deployment to shareholders while investing organically in growth and technology.
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.
Recruiting and Licensing Weakness
Recruiting and licensing activity were down compared to 2024; full-year life-licensed representatives ended at 151,524, largely unchanged year-over-year. Management cited economic uncertainty and difficult 2024 comparisons as drivers and guided to modest sales force growth of approximately 1% in 2026.
Elevated Lapse Rates and Persistency Concerns
Lapse rates remained elevated relative to long-term reserve assumptions (though stable year-over-year). Management expects persistency will gradually normalize but will continue monitoring policyholder experience.
Expense Growth and Technology Ramp
Consolidated insurance and other operating expenses were $163 million in Q4, up 7% year-over-year. Full-year 2026 consolidated expenses expected to grow ~7%–8%, driven by higher variable costs in ISP and ramp-up in technology investments; Q1 expected to be higher in dollar terms due to equity compensation vesting.
Market Sensitivity and Conservative Outlook
Management highlighted ISP sensitivity to equity market conditions and maintained a conservative approach to full-year sales projections given market uncertainty. Term Life policy growth guidance for 2026 was conservative at 2%–3% until clearer evidence of sustained consumer purchasing power emerges.
Net Unrealized Loss in Investment Portfolio
Net unrealized loss modestly improved but remained at approximately $113 million as of December; management attributes this to interest rate impacts (intent and ability to hold to maturity) rather than credit issues.
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
Primerica demonstrates strong financial health with consistent revenue growth, robust profitability, and effective cash flow management. The company maintains a balanced leverage position, supporting its growth strategy while managing risks. However, the decline in gross profit margin slightly tempers the overall financial performance.Income Statement
Primerica's income statement shows strong profitability with a solid net profit margin of 22.47% for TTM, indicating efficient cost management. The revenue growth rate of 2.08% in TTM is modest but consistent, reflecting steady business expansion. The EBIT and EBITDA margins are robust at 29.70% and 30.15% respectively, showcasing operational efficiency. However, the gross profit margin has decreased compared to previous years, which could indicate rising costs or pricing pressures.85
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.82, indicating a balanced approach to leveraging. Return on equity is impressive at 31.64%, demonstrating strong profitability relative to shareholder equity. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing. Overall, the company maintains a healthy balance between debt and equity.78
Positive
Cash Flow
Cash flow analysis reveals a positive trajectory with a free cash flow growth rate of 2.71% in TTM, indicating effective cash management. The operating cash flow to net income ratio of 6.50 suggests strong cash generation relative to net income. The free cash flow to net income ratio is nearly 1, highlighting efficient conversion of income to cash. These metrics suggest solid cash flow stability, supporting ongoing operations and potential investments.80
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 | 998.52M | 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 | 1.87B | 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 | 0.00 | 832.86M | 658.62M | 731.86M | 632.27M |
| Operating Cash Flow | 0.00 | 862.09M | 692.52M | 757.66M | 656.96M |
| Investing Cash Flow | 0.00 | -232.25M | -90.05M | -200.05M | -923.38M |
| Financing Cash Flow | 0.00 | -551.14M | -479.62M | -457.85M | 107.97M |
Primerica Technical Analysis
Negative
253.08
Price Trends
259.67
Negative
259.72
Negative
262.42
Negative
Market Momentum
-1.29
Positive
43.48
Neutral
58.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRI, the sentiment is Negative. The current price of 253.08 is below the 20-day moving average (MA) of 259.95, below the 50-day MA of 259.67, and below the 200-day MA of 262.42, indicating a bearish trend. The MACD of -1.29 indicates Positive momentum. The RSI at 43.48 is Neutral, neither overbought nor oversold. The STOCH value of 58.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRI.
Primerica Risk Analysis
Primerica disclosed 39 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.88B | 8.60 | 6.05% | 2.91% | -4.58% | ― | |
72 Outperform | $8.29B | 11.34 | 31.86% | 1.59% | 5.63% | 67.39% | |
72 Outperform | $7.95B | -336.71 | 0.27% | 2.98% | 24.94% | ― | |
70 Outperform | $11.43B | 10.21 | ― | 0.74% | 3.73% | 17.47% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $7.95B | 7.17 | 12.27% | 3.93% | 35.76% | 636.97% | |
63 Neutral | $12.00B | 17.15 | 6.69% | 2.22% | 1.80% | -44.44% |
* Financial Sector Average
PRI
Primerica
253.08
-17.68
-6.53%
LNC
Lincoln National
35.69
0.07
0.20%
GL
Globe Life
142.65
20.93
17.19%
UNM
Unum Group
70.84
-2.21
-3.02%
JXN
Jackson Financial Incorporation
109.91
29.23
36.22%
FG
F&G Annuities & Life Inc
23.32
-16.52
-41.47%
Primerica Corporate Events
Business Operations and StrategyFinancial Disclosures
Primerica Reports Strong Q3 2025 Financial Results
Positive
Nov 5, 2025
On November 5, 2025, Primerica, Inc. reported its financial results for the third quarter of 2025, highlighting record sales in investment and savings products and a significant increase in client asset values. The company saw an 8% rise in total revenues and a 6% increase in net income compared to the same period in 2024. Despite a decline in new life insurance policies issued, Primerica’s term life segment showed steady growth in premiums. The company also completed its annual actuarial assumption review, resulting in a net remeasurement gain. These results underscore the strength of Primerica’s business model and its commitment to supporting middle-income families.
The most recent analyst rating on (PRI) stock is a Buy with a $340.00 price target. To see the full list of analyst forecasts on Primerica stock, see the PRI Stock Forecast page.
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.