Primerica Reports First Quarter 2026 Results

Key Terms

non-GAAP financial measures financial

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

return on stockholders’ equity (ROE) financial

Return on stockholders’ equity (ROE) measures how well a company turns the money invested by its shareholders into profit, expressed as a percentage of shareholder equity. It matters to investors because a higher ROE indicates the company is generating more profit from each dollar of owners’ capital, like a farmer getting more crop from each seed; consistent, strong ROE often signals efficient management and potentially better long-term returns.

risk-based capital (RBC) ratio financial

A risk-based capital (RBC) ratio measures an insurer’s available capital against the minimum capital regulators require after accounting for the types and amounts of risks the company faces; it is expressed as a percentage. Investors use it like a “safety cushion” gauge: a higher ratio means the company is better positioned to absorb unexpected losses and less likely to face regulatory restrictions, while a low ratio can signal heightened solvency risk and potential impact on returns.

coinsurance financial

Coinsurance is the portion of a medical or insurance bill that the policyholder must pay as a percentage after any deductible is met — for example, paying 20% of a doctor's bill while the insurer pays the remaining 80%. Like splitting a restaurant check by percentage rather than a fixed amount, it changes how much people actually use services. Investors watch coinsurance because higher patient cost-sharing can reduce demand for treatments, affect health-care providers’ and drugmakers’ revenue, and change insurers’ claims patterns and profitability.

fair value mark-to-market (MTM) financial

Fair value mark-to-market (mtm) is an accounting method that updates the reported price of an asset or liability to the amount it could sell for in today’s open market, like checking the current price tag on a product before listing it. Investors care because mtm changes can make a company’s profits, losses or net asset value swing quickly as market prices move, revealing real-time gains or losses that affect valuation and decision-making.

accumulated other comprehensive income (loss) financial

A balance-sheet line that tracks certain gains and losses that haven’t flowed through the company’s profit-and-loss statement, such as unrealized changes in the value of investments, foreign-currency adjustments, and some pension-related items. Think of it like a storage closet for value swings the company hasn’t ‘realized’ by selling or settling them yet; it changes shareholders’ equity and helps investors see hidden volatility or potential future impacts on book value.

available-for-sale securities financial

Available-for-sale securities are investments in stocks, bonds or similar instruments that a company does not intend to trade frequently but may sell before they mature. They matter to investors because changes in the market value of these holdings show up as paper gains or losses on the company's balance sheet rather than immediately in profit, so they can affect reported net worth and the timing of income without changing day-to-day earnings. Think of them like items on a household shelf you might sell later: their value moves with the market even if you haven’t cashed out.

statutory regulatory

Relating to a statute or law, statutory describes duties, limits, payments or requirements that are set and enforced by government rules rather than by choice or private agreement. Investors care because statutory obligations — like required disclosures, taxes, minimum capital, or safety standards — are non‑optional costs or constraints that can affect a company’s cash flow, legal risk and future growth; think of them as rules of the road that firms must follow or face penalties.

Record Investment and Savings Products (ISP) sales of $4.3 billion, up 22%

ISP client asset values ended the quarter at $127 billion, up 15%

Life-licensed sales force totaled 149,732 at March 31, 2026

Net premiums increased 2%; adjusted direct premiums increased 4%

Net earnings per diluted share (EPS) of $5.97 increased 18%; return on stockholders’ equity (ROE) of 30.6%

Diluted adjusted operating EPS of $5.96 increased 19%; adjusted net operating income return on adjusted stockholders’ equity (ROAE) of 31.5%

Repurchases of $135 million of common stock during the quarter; declared dividend of $1.20 per share payable on June 12, 2026

DULUTH, Ga.--(BUSINESS WIRE)-- Primerica, Inc. (NYSE: PRI) reported financial results for the quarter ended March 31, 2026. Total revenues of $872.7 million increased 8% compared to the first quarter of 2025. Net income of $190.1 million increased 12% and net earnings per diluted share of $5.97 increased 18% compared to the prior year period.

Adjusted operating revenues of $872.3 million increased 9% compared to the first quarter of 2025. Adjusted net operating income of $189.8 million increased 13%, while adjusted operating earnings per diluted share of $5.96 increased 19% compared to the prior year period.

The Company delivered solid financial results during the first quarter of 2026, driven by record sales performance and higher client asset values in the Investment and Savings Products segment. Sales growth was supported by a broad product offering and continued sales momentum, while favorable equity market performance contributed to asset growth. The Term Life business also produced solid financial results, driven by the Company’s large in-force block of term life insurance policies.

“Another quarter of strong financial performance was driven by continued momentum in our Investment and Savings Products business and supported by the stability of our Term Life business. ISP remains a key driver of growth and reflects the trust clients place in our long‑term savings solutions,” said Glenn Williams, Chief Executive Officer of Primerica, Inc. “As middle‑income families continue to navigate a changing economic environment, the need for financial education and guidance remains critical. We believe our strong fundamentals position Primerica well for long-term growth and to effectively meet the evolving needs of our clients."

First Quarter Distribution & Segment Results

Distribution Results
		Q1 2026				Q1 2025				% Change
Life-Licensed Sales Force			149,732				152,167				(2	)%
Recruits			84,217				100,867				(17	)%
New Life-Licensed Representatives			10,569				12,339				(14	)%
Life Insurance Policies Issued			74,054				86,415				(14	)%
Life Productivity (1)			0.16				0.19			*
Issued Term Life Face Amount ($ billions) (2)		$	25.7			$	28.5				(10	)%
ISP Product Sales ($ billions)		$	4.3			$	3.6				22	%
Average Client Asset Values ($ billions)		$	129.9			$	113.0				15	%
Closed U.S. Mortgage Volume ($ million brokered)		$	113.1			$	93.5				21	%

____________________
	(1)	Life productivity equals the average monthly policies issued divided by the average number of life insurance licensed representatives.
	(2)	Includes face amount on issued term life policies, additional riders added to existing policies, and face increases under increasing benefit riders.
* Not calculated or less than 1%

Segment Results
		Q1 2026				Q1 2025				% Change
		($ in thousands)
Adjusted Operating Revenues:
Term Life Insurance		$	464,634			$	457,841				1	%
Investment and Savings Products			350,645				290,812				21	%
Corporate and Other Distributed Products (1)			57,018				54,903				4	%
Total adjusted operating revenues (1)		$	872,297			$	803,556				9	%
Adjusted Operating Income (Loss) before income taxes:
Term Life Insurance		$	154,860			$	146,785				6	%
Investment and Savings Products			100,899				81,271				24	%
Corporate and Other Distributed Products (1)			(6,737	)			(8,028	)			16	%
Total adjusted operating income before income taxes (1)		$	249,022			$	220,028				13	%

(1)

See the Non-GAAP Financial Measures section and the Adjusted Operating Results reconciliation tables at the end of this release for additional information.

Life Insurance Licensed Sales Force

During the first quarter of 2026, recruiting and licensing activity was below levels in the prior year period, with 84,217 new recruits, down 17% compared to the prior year period, and 10,569 representatives obtaining a new life license, a 14% decline year over year. The life licensed sales force totaled 149,732 as of March 31, 2026, decreasing 2% compared to March 31, 2025.

Term Life Insurance

During the first quarter of 2026, annualized issued premium of $83.3 million decreased 10% compared to the prior year period. The Company issued 74,054 new life insurance policies, representing 14% fewer policies than the prior year period, with total face amount issued of $25.7 billion. Productivity as measured by the average monthly rate of new policies issued per life-licensed independent sales representative was 0.16. The Company continues to enhance training and tools designed to help representatives more effectively identify and address the evolving protection needs of middle-income families in today's economic environment.

First quarter of 2026 Term Life revenues of $464.6 million increased 1% compared to the first quarter of 2025, driven by 4% growth in adjusted direct premiums. Pre-tax operating income of $154.9 million, including a $7.6 million remeasurement gain, increased 6% compared to the prior year period. The benefits and claims ratio was 57.3% compared to 58.2% in the prior year period. The DAC amortization and insurance commissions ratio was 12.3% and the insurance expense ratio was 7.9%, consistent with the prior year period. The Term Life operating margin was 22.5% compared to 22.1% in the prior year period.

Investment and Savings Products

During the first quarter of 2026, total product sales were $4.3 billion, a 22% increase compared to the prior year period. Strong investor demand across all major product lines drove sales growth, while equity market appreciation and continued net inflows over the last 12 months led to a 15% increase in client asset values year over year. Net inflows during the first quarter of 2026 were $362 million compared to $542 million in the prior year period.

First quarter ISP revenues of $350.6 million increased 21% year-over-year, while income before income taxes of $100.9 million increased 24%. Growth in sales-based commission revenues continued to outpace revenue-generating sales due to continued strong client demand for variable annuities. Asset-based commission revenues grew 23%, supported by a favorable mix-shift toward U.S. managed accounts and Canadian mutual funds sold under the principal distributor model, compared to a 15% increase in average client asset values. Sales-based and asset-based commission expenses grew in line with related revenues.

Corporate and Other Distributed Products

During the first quarter of 2026, the segment recorded a pre‑tax adjusted operating loss of $6.7 million, compared to a pre‑tax adjusted operating loss of $8.0 million in the prior‑year period. The improvement was driven by $2.1 million higher adjusted net investment income, reflecting continued growth in the invested asset portfolio.

Taxes

The effective income tax rate was 23.8% during the first quarter of 2026, largely consistent with the effective income tax rate of 23.6% in the first quarter of 2025.

Capital

During the first quarter of 2026, the Company repurchased $135 million of its common stock under the Board of Directors' $475 million share repurchase program authorized through December 31, 2026. The Board of Directors has approved a dividend of $1.20 per share, payable on June 12, 2026, to stockholders of record on May 21, 2026. Primerica Life Insurance Company's statutory risk-based capital (RBC) ratio was estimated to be 430% as of March 31, 2026.

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Company presents certain non-GAAP financial measures. Specifically, the Company presents adjusted direct premiums, other ceded premiums, adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income, diluted adjusted operating earnings per share and adjusted stockholders' equity.

Adjusted direct premiums and other ceded premiums are net of amounts ceded under coinsurance transactions that were executed concurrent with our initial public offering (the IPO coinsurance transactions) for all periods presented. We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate within this block of business.

Adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income and diluted adjusted operating earnings per share exclude the impact of investment gains (losses), including credit impairments, and fair value mark-to-market (MTM) investment adjustments for all periods presented. We exclude investment gains (losses), including credit impairments, and MTM investment adjustments in measuring these non-GAAP financial measures to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains (losses) and market pricing variations prior to an invested asset’s maturity or sale that are not directly associated with the Company’s insurance operations.

Adjusted stockholders’ equity excludes the impact of net unrealized investment gains (losses) recorded in accumulated other comprehensive income (loss) for all periods presented. We exclude unrealized investment gains (losses) in measuring adjusted stockholders’ equity as unrealized gains (losses) from the Company’s available-for-sale securities are largely caused by market movements in interest rates and credit spreads that do not necessarily correlate with the cash flows we will ultimately realize when an available-for-sale security matures or is sold. Adjusted stockholders’ equity also excludes the difference in future policy benefits calculated using the current discount rate and future policy benefits calculated using the locked-in discount rate at contract issuance recognized in accumulated other comprehensive income (loss). We exclude the impact from the difference in the discount rate in measuring adjusted stockholders' equity as such difference is caused by market movements in interest rates that are not permanent and may not align with the cash flows we will ultimately incur when policy benefits are settled.

Our definitions of these non-GAAP financial measures may differ from the definitions of similar measures used by other companies. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. Furthermore, management believes that these non-GAAP financial measures may provide users with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of the core ongoing business. These measures have limitations and users should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Reconciliations of GAAP to non-GAAP financial measures are attached to this release.

Earnings Webcast Information

Primerica will hold a webcast on Thursday, May 7, 2026, at 10:00 a.m. (ET), to discuss the quarter’s results. To access the webcast, go to https://investors.primerica.com at least 15 minutes prior to the event to register, download and install any necessary software. A replay of the call will be available for approximately 30 days. This release and a detailed financial supplement will be posted on Primerica’s website.

Forward-Looking Statements

Except for historical information contained in this press release, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from anticipated or projected results. Those risks and uncertainties include, among others, our failure to continue to attract and license new recruits, retain independent sales representatives or license or maintain the licensing of independent sales representatives; laws or regulations that could apply to our distribution model, which could require us to modify our distribution structure; changes to the independent contractor status of sales representatives; our or independent sales representatives’ violation of or non-compliance with laws and regulations; litigation and regulatory investigations and actions concerning us or independent sales representatives; differences between our actual experience and our expectations regarding mortality, reinsurance, persistency, or disability as reflected in the pricing for our insurance policies; changes in federal, state and provincial legislation or regulation that affects our insurance, investment product and mortgage businesses; our failure to meet regulatory capital ratios or other minimum capital and surplus requirements; a significant downgrade by a ratings organization; the failure of our reinsurers or reserve financing counterparties to perform their obligations; the failure of our investment products to remain competitive with other investment options or the loss of our relationship with one or more of the companies whose investment products we provide; heightened standards of conduct or more stringent licensing requirements for independent sales representatives; inadequate policies and procedures regarding suitability review of client transactions; revocation of our subsidiary’s status as a non-bank custodian; a significant change to or disruption in the mortgage lenders’ mortgage businesses or an inability of the mortgage lenders to satisfy their contractual obligations to us; changes in prevailing mortgage interest rates or U.S. monetary policies that affect mortgage interest rates; economic downcycles that impact our business, financial condition and results of operations; major public health pandemics, epidemics or outbreaks or other catastrophic events; the failure of our or a third-party partner’s information technology systems, breach of our information security, failure of our business continuity plan or the loss of the Internet; any failure to protect the confidentiality of client information; the current legislative and regulatory climate with regard to privacy and cybersecurity; cyber-attack(s), security breaches; the development and use of artificial intelligence; the efficiency and success of business initiatives taken to enhance our technology, products and services; the effects of credit deterioration and interest rate fluctuations on our invested asset portfolio and other assets; incorrectly valuing our investments; changes in accounting standards may impact how we record and report our financial condition and results of operations; the inability of our subsidiaries to pay dividends or make distributions; laws and regulations in the U.S. and Canada, executive branch actions, orders and policies, judicial rulings and decisions by public officials impacting our business; the legislative and regulatory environment regarding climate change; litigation and regulatory investigations and actions; a significant change in the competitive environment in which we operate; the loss of key personnel or sales force leaders; inability to effectively execute our corporate strategy; and fluctuations in the market price of our common stock or Canadian currency exchange rates. These and other risks and uncertainties affecting us are more fully described in our filings with the Securities and Exchange Commission, which are available in the "Investor Relations" section of our website at https://investors.primerica.com. Primerica assumes no duty to update its forward-looking statements as of any future date.

About Primerica, Inc.

Primerica, Inc. is a leading diversified financial services distribution company serving middle-income households in the United States and Canada. Our licensed representatives educate families on how to prepare for a more secure financial future and help them achieve their financial goals with our term life insurance and third-party mutual funds, managed accounts, annuities, loans and other financial products. We insured over 5.5 million lives and had approximately 3.1 million client investment accounts as of December 31, 2025. Through our life insurance subsidiaries in North America, in 2025 Primerica was the #3 issuer of term life insurance, which we largely reinsure. 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”. We are headquartered in Duluth, Georgia.

PRIMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
		(Unaudited)
		March 31, 2026				December 31, 2025
		(In thousands)
Assets
Investments:
Fixed-maturity securities available-for-sale, at fair value		$	3,444,026			$	3,265,246
Fixed-maturity security held-to-maturity, at amortized cost			1,130,730				1,175,380
Equity securities, at fair value			27,728				26,433
Trading securities, at fair value			32,451				12,801
Policy loans and other invested assets			56,336				56,233
Total investments			4,691,271				4,536,093
Cash and cash equivalents			645,811				756,227
Accrued investment income			31,400				30,122
Reinsurance recoverables			2,480,051				2,564,952
Deferred policy acquisition costs, net			3,954,334				3,915,998
Agent balances, due premiums and other receivables			280,220				275,171
Intangible asset			45,275				45,275
Income taxes			130,773				177,302
Operating lease right-of-use assets			40,936				41,900
Other assets			254,797				387,776
Separate account assets			2,122,558				2,281,520
Total assets		$	14,677,426			$	15,012,336
Liabilities and stockholders' equity
Liabilities:
Future policy benefits		$	6,728,920			$	6,818,179
Unearned and advance premiums			17,015				15,521
Policy claims and other benefits payable			488,886				495,356
Other policyholders' funds			342,427				356,427
Note payable			595,516				595,315
Surplus note			1,130,485				1,175,119
Income taxes			66,810				147,960
Operating lease liabilities			48,369				49,565
Other liabilities			531,546				546,596
Payable under securities lending			85,020				84,876
Separate account liabilities			2,122,558				2,281,520
Total liabilities			12,157,552				12,566,434
Common stock			313				318
Retained earnings			2,440,207				2,416,149
Accumulated other comprehensive income (loss), net of income tax:
Effect of change in discount rate assumptions on the liability for future policy benefits			223,792				134,594
Unrealized foreign currency translation gains (losses)			(23,387	)			(15,836	)
Net unrealized gains (losses) on available-for-sale securities			(121,051	)			(89,323	)
Total stockholders' equity			2,519,874				2,445,902
Total liabilities and stockholders' equity		$	14,677,426			$	15,012,336

PRIMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)
		Three months ended March 31,
		2026				2025
		(In thousands, except per-share amounts)
Revenues:
Direct premiums		$	871,246			$	858,845
Ceded premiums			(414,859	)			(410,521	)
Net premiums			456,387				448,324
Commissions and fees			356,741				296,957
Net investment income			43,283				41,671
Investment gains (losses)			396				757
Other, net			15,886				17,134
Total revenues			872,693				804,843
Benefits and expenses:
Benefits and claims			171,254				174,862
Future policy benefits remeasurement (gain) loss			(7,377	)			(3,273	)
Amortization of deferred policy acquisition costs			84,260				78,550
Sales commissions			195,210				158,118
Insurance expenses			66,567				64,805
Insurance commissions			5,618				6,124
Interest expense			5,861				6,004
Other operating expenses			101,882				98,338
Total benefits and expenses			623,275				583,528
Income before income taxes			249,418				221,315
Income taxes			59,322				52,264
Net income		$	190,096			$	169,051
Earnings per share attributable to common stockholders:
Basic earnings per share		$	5.98			$	5.06
Diluted earnings per share		$	5.97			$	5.05
Weighted-average shares used in computing earnings per share:
Basic			31,681				33,292
Diluted			31,728				33,342

PRIMERICA, INC. AND SUBSIDIARIES
Consolidated Adjusted Operating Results Reconciliation
(Unaudited)
		Three months ended March 31,
		2026				2025				% Change
		(In thousands, except per-share amounts)
Total revenues		$	872,693			$	804,843				8	%
Less: Investment (losses) gains			396				757
Less: 10% deposit asset MTM included in NII			-				530
Adjusted operating revenues		$	872,297			$	803,556				9	%
Income before income taxes		$	249,418			$	221,315				13	%
Less: Investment (losses) gains			396				757
Less: 10% deposit asset MTM included in NII			-				530
Adjusted operating income before income taxes		$	249,022			$	220,028				13	%
Net Income		$	190,096			$	169,051				12	%
Less: Investment (losses) gains			396				757
Less: 10% deposit asset MTM included in NII			-				530
Less: Tax impact of preceding items			(94	)			(304	)
Adjusted net operating income		$	189,794			$	168,068				13	%
Diluted earnings per share		$	5.97			$	5.05				18	%
Less: Net after-tax impact of operating adjustments			0.01				0.03
Diluted adjusted operating earnings per share		$	5.96			$	5.02				19	%

TERM LIFE INSURANCE SEGMENT
Adjusted Premiums Reconciliation
(Unaudited)
		Three months ended March 31,
		2026				2025				% Change
		(In thousands)
Direct premiums		$	867,202			$	854,430				1	%
Less: Premiums ceded to IPO coinsurers			179,575				191,477
Adjusted direct premiums			687,627				662,953				4	%
Ceded premiums			(413,843	)			(409,334	)
Less: Premiums ceded to IPO coinsurers			(179,575	)			(191,477	)
Other ceded premiums			(234,268	)			(217,857	)
Net premiums		$	453,359			$	445,096				2	%

CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT
Adjusted Operating Results Reconciliation
(Unaudited)
		Three months ended March 31,
		2026				2025				% Change
		(In thousands)
Total revenues		$	57,414			$	56,190				2	%
Less: Investment gains (losses)			396				757
Less: 10% deposit asset MTM included in NII			-				530
Adjusted operating revenues		$	57,018			$	54,903				4	%
Income (loss) before income taxes		$	(6,341	)		$	(6,741	)			6	%
Less: Investment gains (losses)			396				757
Less: 10% deposit asset MTM included in NII			-				530
Adjusted operating income (loss) before income taxes		$	(6,737	)		$	(8,028	)			16	%

PRIMERICA, INC. AND SUBSIDIARIES
Adjusted Stockholders' Equity Reconciliation
(Unaudited)
		March 31, 2026				December 31, 2025				% Change
		(In thousands)
Stockholders' equity		$	2,519,874			$	2,445,902				3	%
Less: Net unrealized gains (losses)			(121,051	)			(89,323	)
Less: Effect of change in discount rate assumptions on the liability for future policy benefits			223,792				134,594
Adjusted stockholders' equity		$	2,417,133			$	2,400,631				1	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260506722225/en/

Investor Contact:
Nicole Russell
470-564-6663
Email: Nicole.Russell@Primerica.com

Media Contact:
Susan Chana
404-229-8302
Email: Susan.Chana@Primerica.com

Source: Primerica, Inc.