Primerica, Inc. · NYSE:PRI
Primerica — Q1 2023 Earnings Presentation
12 slides from Primerica's earnings presentation, May 9, 2023
Slide 1: Earnings Results, Quarter Ended March 31, 2023
Earnings Results Quarter Ended March 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 ● Adjusted net operating income of $129 GAAP Financial Results million grew 10%, while diluted adjusted ($ in millions, except per-share amounts) Q1 2023 Q1 2022 % Change operating EPS of $3.49 grew 18% year- Revenues $690.0 $691.2 0% over-year Net income attributable to Primeri
Slide 4: Distribution Highlights
Distribution Highlights ● Life-insurance licensed sales force grew Sales Force 5% year-over-year to 136,430 Q1 2023 Q1 2022 % Change Distribution Recruits 93,540 84,707 10% ● Recruiting momentum remained solid New life-licensed representatives 11,118 9,983 11% with a 10% increase in the number of Li
Slide 5: Production Highlights: Term Life Insurance
Production Highlights Term Life Insurance ● Issued more than 84,500 new life Production insurance policies, a 2% increase in issued policies on a consistent one life per policy ($ in billions) Q1 2023 Q1 2022 % Change basis Issued life insurance policies 84,561 83,050(1) 2% Term Life — Productivity
Slide 6: Production Highlights: Investment and Savings Products
Production Highlights Investment and Savings Products Production ● Sales of $2.3 billion, down 25% year- ($ in billions) Q1 2023 Q1 2022 % Change over-year, driven by continued equity Total product sales $2.30 $3.07 (25%) market volatility ISP Client asset values(1) $87.6 $93.7 (6%) ● Client asset v
Slide 7: Production Highlights: Senior Health
Production Highlights Senior Health ● Made progress improving unit economics —LTV/CAC of 1.1x ● Moderated sales volume and focused on agent productivity ● Primerica-sourced leads remain attractive — Better conversion rates and indications of more favorable persistency ● Remained judicious about plan
Slide 8: Operating Results: Term Life Segment
Operating Results Term Life Segment Q1 2023 versus Q1 2022 ($ in millions) Q1 2023 Q1 2022 % Change ● Operating revenues increased 3% and Direct premiums $812.9 $793.3 2% operating income before income taxes Premium ceded to IPO coinsurers (1) ($220.2) ($234.6) 6% increased 7% Adjusted direct premiu
Slide 9: Operating Results: Investment & Savings Products Segment
Operating Results Investment & Savings Products Segment Q1 2023 versus Q1 2022 ($ in millions, except as noted) Q1 2023 Q1 2022 % Change Sales-based revenues $72.4 $103.2 (30%) ● Total operating revenues decreased Asset-based revenues $111.9 $113.1 (1%) 13%, while operating income before Account-bas
Slide 10: Senior Health Business
Senior Health Business ● Chargebacks of business sold during AEP ($ in thousands) Q1 2023 Q1 2022 % Change and renewal rates during the January 1st Commissions and fees $15,755 $1,278 nm renewal cycle were in line with assumptions Operating revenues $18,710 $5,831 nm – No negative revenue tail adjus
Slide 11: Investment Income and Invested Asset Portfolio
Investment Income and Invested Asset Portfolio ● Adjusted net investment income increased $10 Key Portfolio Attributes million, driven mainly by higher interest rates (based on amortized cost (except for market value); Q1 2023 excludes cash, period end) ● New money rate of 5.6%, up ~220 basis points
Slide 12: Insurance & Operating Expense Highlights
Insurance & Operating Expense Highlights INSURANCE & OPERATING EXPENSES ● Operating expenses of $151 million were $6 million or 4% higher than prior year quarter ● Expect 2Q expenses to increase 2-3% year- over-year — Reflects combination of higher technology and growth-related costs — Benefit from