Primerica Announces $450 Million Share Repurchase Program for 2025

Rhea-AI Summary

Primerica (NYSE: PRI) has announced a new $450 million share repurchase program extending through December 31, 2025. The program, authorized by the Board of Directors, will be executed through open market transactions, block trades, and/or privately negotiated transactions, subject to market and regulatory conditions. CEO Glenn Williams attributed the decision to the company's success in revenue growth and free cash flow generation. The company maintains discretion to discontinue the program at any time and will conduct repurchases in compliance with regulatory guidelines, including Rule 10b-18 of the Securities Exchange Act.

Positive

• Authorization of $450 million share repurchase program through 2025
• Reported strong revenue growth and free cash flow generation
• Share buyback program indicates management's confidence in company's financial health

Negative

• Potential reduction in cash reserves available for other investments
• No guarantee of complete program execution as it's subject to market conditions

Insights

Financial Analyst

The $450 million share repurchase program represents a significant capital return initiative, accounting for approximately 4.5% of Primerica's current market capitalization. This program demonstrates strong financial health and management's confidence in the company's cash flow generation capabilities.

Share buybacks typically support stock price by reducing the number of outstanding shares, which can increase earnings per share and return on equity metrics. The extended timeline through 2025 provides flexibility in execution and suggests a measured approach to capital deployment. The discretionary nature of the program allows management to adjust based on market conditions and alternative investment opportunities.

The authorization following strong Q3 results indicates robust operational performance and efficient capital management. However, investors should note that the actual impact will depend on the timing and execution of purchases, as well as the prevailing stock price during repurchases.

DULUTH, Ga.--(BUSINESS WIRE)-- After reporting solid third quarter results, Primerica, Inc. (NYSE: PRI) today announced that its Board of Directors has authorized a $450 million share repurchase program to occur through December 31, 2025. Share repurchases may be made from time to time through open market transactions, block trades and/or privately negotiated transactions and are subject to market conditions, as well as corporate, regulatory, and other considerations.

“We are pleased with our success at growing revenue and driving free cash flow for the Company,” said Glenn Williams, Chief Executive Officer of Primerica. “Our financial results support the Board of Directors’ decision to authorize another share repurchase program.”

This share repurchase program may be discontinued at any time by the Board of Directors, and the Company has no obligation to repurchase any amount of its common stock under the program. The Company intends to make all repurchases in compliance with applicable regulatory guidelines and to administer the plan in accordance with applicable laws, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended

About Primerica, Inc.

Primerica, Inc., headquartered in Duluth, GA, is a leading provider of financial products and services to middle-income households in North America. Independent licensed representatives educate Primerica clients about how to better prepare for a more secure financial future by assessing their needs and providing appropriate solutions through term life insurance, which we underwrite, and mutual funds, annuities and other financial products, which we distribute primarily on behalf of third parties. We insured approximately 5.7 million lives and had approximately 2.9 million client investment accounts on December 31, 2023. Primerica, through its insurance company subsidiaries, was the #2 issuer of Term Life insurance coverage in the United States and Canada in 2023. Primerica stock is included in the S&P MidCap 400 and the Russell 1000 stock indices and is traded on The New York Stock Exchange under the symbol “PRI”.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241114454717/en/

Public Relations

Susan Chana, 404-229-8302

susan.chana@primerica.com



Investor Relations

Nicole Russell, 470-564-6663

nicole.russell@primerica.com

Source: Primerica, Inc.

FAQ

What is the size of Primerica's new share repurchase program?

Primerica (PRI) has authorized a $450 million share repurchase program.

When does Primerica's 2025 share repurchase program end?

The share repurchase program extends through December 31, 2025.

How will Primerica execute its share repurchase program?

Primerica will execute the program through open market transactions, block trades, and/or privately negotiated transactions, subject to market conditions and regulatory requirements.

Can Primerica terminate its $450 million share repurchase program?

Yes, Primerica's Board of Directors can discontinue the share repurchase program at any time, and the company has no obligation to repurchase any specific amount of shares.