Primerica, Inc. · NYSE:PRI
Primerica — Q2 2023 Earnings Presentation
11 slides from Primerica's earnings presentation, Aug 8, 2023
Slide 1: Earnings Results, Quarter Ended June 30, 2023
Earnings Results Quarter Ended June 30, 2023
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation may contain forward-looking statements. Information on factors that could cause results to differ materially from those projected in this presentation is available in our Form 10-K for the year en
Slide 3: Financial Highlights
Financial Highlights GAAP Financial Results ● Adjusted net operating income of $145 ($ in millions, except per share amounts) Q2 2023 Q2 2022 % Change million grew 11%, while diluted adjusted Revenues $688.4 $668.7 3% operating EPS of $3.99 grew 18% year- Net income attributable to Primerica, Inc. $
Slide 4: Distribution Highlights
Distribution Highlights Sales Force ● Life-insurance licensed sales force grew to approximately 138,000 Q2 2023 Q2 2022 % Change Distribution ● Attractiveness of entrepreneurial Recruits 86,124 70,215 23% business and opportunity for additional New life-licensed representatives 12,638 11,529 10% inc
Slide 5: Production Highlights: Term Life Insurance
Production Highlights Term Life Insurance Production ● Continued to see high demand for new term life products ($ in billions) Q2 2023 Q2 2022 % Change Issued life insurance policies 96,953 89,316(1) 9% Term Life — Issued nearly 97,000 new life insurance policies, increasing 9% year-over-year Issued
Slide 6: Production Highlights: Investment and Savings Products
Production Highlights Investment and Savings Products Production ● Client asset values rose as equity ($ in billions) Q2 2023 Q2 2022 % Change markets recovered Total product sales $2.4 $2.7 (11%) ISP ● New sales remained under pressure Client asset values(1) $91.6 $82.3 11% from higher cost of livi
Slide 7: Operating Results: Term Life Segment
Operating Results Term Life Segment ($ in millions) % Change ● Higher demand for new term life products Q2 2023 Q2 2022 offset the revenue impact of higher lapses Direct premiums $823.3 $803.5 3% Premium ceded to IPO coinsurers (1) ($216.7) ($231.8) 7% ● Favorable claims experience in both periods a
Slide 8: Operating Results: Investment & Savings Products Segment
Operating Results Investment & Savings Products Segment ($ in millions, except as noted) Q2 2023 Q2 2022 % Change ● ISP results reflected lower sales activity Sales-based revenues $75.0 $88.7 (15%) — Sales-based revenues negatively impacted Asset-based revenues $113.3 $108.1 5% by lower sales volume
Slide 9: Operating Results: Senior Health Segment
Operating Results Senior Health Segment ● LTV improvement driven by higher carrier ($ in thousands) Q2 2023 Q2 2022 % Change commission rates Commissions and fees $11,371 $9,343 22% ● No negative tail revenue adjustment as Operating revenues $14,889 $11,814 26% policy churn has been stable Contract
Slide 10: Investment Income and Invested Asset Portfolio
Investment Income and Invested Asset Portfolio Key Portfolio Attributes (based on amortized cost (except for market value); ● New money rate of 5.46% excludes cash, period end) Q2 2023 ● Expect ~$34 million in NII each quarter Fixed income / other mix 99% / 1% Fixed income average book yield 3.63% f
Slide 11: Insurance & Operating Expense Highlights
Insurance & Operating Expense Highlights INSURANCE & OPERATING EXPENSES ● Insurance and other operating expenses of $142 million, 3% higher than prior year quarter — Driven by continued investments in technology, market wage adjustments, fewer open positions, legal costs and normal growth in the bus