Primerica, Inc. · NYSE:PRI
Primerica — Q4 2023 Earnings Presentation
11 slides from Primerica's earnings presentation, Feb 14, 2024
Slide 1: Earnings Results Quarter Ended December 31, 2023
Earnings Results Quarter Ended December 31, 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 ● Net income grew 4%, while diluted EPS ($ in millions, except per share amounts) Q4 2023 Q4 2022 % Change grew 9% year-over-year Revenues $726.3 $686.9 6% ● Results reflect the continued strength and Net income $151.9 $146.7 4% Stockholders’ equity(1) $2,
Slide 4: Distribution Highlights
Distribution Highlights Sales Force ● Attractiveness of entrepreneurial business opportunity continues to fuel Q4 2023 Q4 2022 % Change Distribution recruiting Recruits 89,992 77,025 17% New life-licensed representatives 13,029 11,117 17% ● Continue to enhance our processes to Life-licensed sales fo
Slide 5: Production Highlights: Term Life Insurance
Production Highlights Term Life Insurance Production ● Strong demand for insurance products ($ in billions) Q4 2023 Q4 2022 % Change — Simple and convenient application process Issued life insurance policies 88,757 79,282(1) 12% Term Life — Advances in underwriting technology help Productivity(2) 0.
Slide 6: Production Highlights: Investment and Savings Products
Production Highlights Investment and Savings Products ● Strong demand fueled investment Production product sales, up 13% year-over-year ($ in billions) Q4 2023 Q4 2022 % Change Total product sales $2.4 $2.1 13% — Sales of U.S. mutual funds grew 10% and ISP variable annuities grew 23% Client asset va
Slide 7: Production Highlights: Senior Health
Production Highlights Senior Health ● Key statistics on a per policy basis for the fourth quarter of 2023 include: — LTV of $1,109, including the reclass of $182 in marketing development funds — CAC of $878, increased 22% year-over-year o Lower productivity due to fewer tenured ETQ agents — LTV/CAC
Slide 8: Operating Results: Term Life Segment
Operating Results Term Life Segment ● Operating income before income taxes grew 6%, driven by 6% growth in adjusted direct premiums ($ in millions) Q4 2023 Q4 2022 % Change ● Key financial ratios remained largely unchanged Direct premiums $829.9 $807.8 3% — Benefits and claims ratio was 58.2% Premiu
Slide 9: Operating Results: Investment & Savings Products Segment
Operating Results Investment & Savings Products Segment ● Operating income before income taxes ($ in millions, except as noted) Q4 2023 Q4 2022 % Change grew 11%, driven by: Sales-based revenues $76.3 $66.5 15% Asset-based revenues $118.3 $105.4 12% — Strong demand for mutual funds and Account-based
Slide 10: Investment Income and Invested Asset Portfolio
Investment Income and Invested Asset Portfolio Key Portfolio Attributes ● Adjusted net investment income of $36 million up 26% compared to prior year (based on amortized cost (except for market Q4 2023 value); excludes cash, period end) period ● New money rate of 6.67% Fixed income / other mix 99% /
Slide 11: Insurance & Operating Expense Highlights
Insurance & Operating Expense Highlights Insurance & Operating Expense ● Insurance and other operating expenses of $142 million grew 2% year-over-year — Prior year period included elevated costs of new product launch ● 2024 Outlook: —Project growth of around $40 million —Breakdown: $17 million growt