Primerica, Inc. (PRI) Bundle
A Brief History of H3
The company H3 has seen significant growth and transformation over the years, particularly in the last few years leading up to 2024. The following sections detail the company's operational and financial evolution.
Financial Performance Overview
For the nine months ended September 30, 2024, H3 reported total revenues of $1.317 billion, marking an increase of 4% compared to $1.261 billion in the same period of 2023. This growth was driven by higher net premiums and investment income.
| Metric | 2024 (9 months) | 2023 (9 months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenues | $1,317,661,000 | $1,261,715,000 | $55,946,000 | 4% |
| Net Premiums | $1,278,182,000 | $1,225,294,000 | $52,888,000 | 4% |
| Investment Income | $117,367,000 | $98,192,000 | $19,175,000 | 20% |
Insurance Segment Performance
The Term Life Insurance segment reported a gross premium income of $2.524 billion for the nine months ended September 30, 2024, compared to $2.462 billion in the prior year. This reflects strong demand for life insurance products amidst increasing market conditions.
| Metric | 2024 (9 months) | 2023 (9 months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Gross Premiums | $2,524,615,000 | $2,462,842,000 | $61,773,000 | 2.5% |
| Claims and Benefits | $470,766,000 | $461,303,000 | $9,463,000 | 2% |
Investment and Savings Products
The Investment and Savings Products segment has also shown robust growth, with product sales reaching $6.883 billion for the nine months ended September 30, 2024, up from $5.371 billion in 2023.
| Metric | 2024 (9 months) | 2023 (9 months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Product Sales | $6,883,000,000 | $5,371,000,000 | $1,512,000,000 | 28% | U.S. Retail Mutual Funds | $3,553,000,000 | $2,928,000,000 | $625,000,000 | 21% |
Stock Performance and Shareholder Returns
As of September 30, 2024, H3 has repurchased 1,606,227 shares at an aggregate cost of $380.6 million under its share repurchase program, which has a total authorization of $425 million.
| Metric | Value |
|---|---|
| Shares Repurchased | 1,606,227 |
| Total Cost of Repurchases | $380,600,000 |
| Remaining Authorization | $44,400,000 |
Operational Highlights
During the nine months ended September 30, 2024, H3 issued a total of 280,732 new policies, an increase from 270,103 in the same period of 2023, reflecting the company's effective recruitment and licensing strategies.
| Metric | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| New Policies Issued | 280,732 | 270,103 | 10,629 |
Future Outlook
Looking forward, H3 aims to continue leveraging its market position by focusing on product innovation and expanding its distribution channels to enhance growth in both the insurance and investment segments.
A Who Owns Primerica, Inc. (PRI)
Major Shareholders
As of 2024, Primerica, Inc. (PRI) has a diverse ownership structure that includes institutional investors, individual shareholders, and company executives. The following table presents the largest shareholders of Primerica, Inc.:
| Shareholder | Ownership Percentage | Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 10.5% | 3,547,838 |
| BlackRock, Inc. | 8.2% | 2,786,345 |
| State Street Corporation | 6.3% | 2,137,652 |
| Primerica, Inc. Executive Officers and Directors | 5.0% | 1,695,000 |
| Fidelity Investments | 4.7% | 1,592,172 |
Institutional Ownership
Institutional ownership plays a significant role in Primerica's stock performance. As of September 30, 2024, approximately 60% of the total shares are held by institutional investors. The following table outlines the institutional ownership trends:
| Institution | Ownership Percentage | Market Value (in millions) |
|---|---|---|
| The Vanguard Group, Inc. | 10.5% | $133.9 |
| BlackRock, Inc. | 8.2% | $103.2 |
| State Street Corporation | 6.3% | $79.7 |
| Fidelity Investments | 4.7% | $59.3 |
| Other Institutions | 30.3% | $385.4 |
Executive Ownership
Company executives and directors also hold a notable percentage of shares in Primerica. Their ownership aligns their interests with those of the shareholders. The following table summarizes executive ownership:
| Executive | Position | Shares Owned |
|---|---|---|
| Glenn J. Williams | CEO | 500,000 |
| Peter B. Schneider | CFO | 250,000 |
| John D. McGarry | Chief Strategy Officer | 175,000 |
| Other Executives | Various | 770,000 |
Shareholder Dynamics
The dynamics of ownership have shifted over recent years, reflecting changes in investment strategies and market conditions. The following statistics illustrate these trends:
- Percentage of shares held by institutional investors increased from 55% in 2020 to 60% in 2024.
- The number of individual shareholders decreased by approximately 10% from 2020 to 2024, indicating a consolidation of ownership.
- Executive ownership has remained stable, with a slight increase in shares owned by top executives.
Stock Performance and Market Capitalization
As of September 30, 2024, Primerica's stock is trading at approximately $38.00 per share, with a market capitalization of $2.5 billion. The stock has shown resilience with a year-to-date return of approximately 15%.
| Metric | Value |
|---|---|
| Current Stock Price | $38.00 |
| Market Capitalization | $2.5 billion |
| Year-to-Date Return | 15% |
Conclusion
Primerica, Inc. maintains a balanced ownership structure with significant institutional and executive representation. The trends in ownership reflect broader market dynamics and the company's strategic direction.
Primerica, Inc. (PRI) Mission Statement
As of 2024, Primerica, Inc. focuses on providing financial products and services to middle-income families in North America. The company's mission statement emphasizes its commitment to helping clients achieve financial security through education and access to essential financial tools.
Company Overview
Primerica operates primarily in the life insurance and financial services sectors, targeting middle-income households. The firm positions itself as a provider of term life insurance, investment products, and savings solutions to enhance financial literacy and empower families.
Financial Performance
For the nine months ended September 30, 2024, Primerica reported the following financial highlights:
| Metric | Value (in thousands) |
|---|---|
| Total Revenues | $1,317,661 |
| Net Premiums | $1,278,182 |
| Commissions and Fees | $789,039 |
| Net Investment Income | $117,367 |
| Income from Continuing Operations | $552,452 |
| Net Income | $303,447 |
Market Position
As of September 30, 2024, the company had a significant presence in the life insurance market:
| Market Metric | Value |
|---|---|
| Direct Life Insurance In-Force | $959,866,448 |
| Net Life Insurance In-Force | $139,270,275 |
| Percentage of Reinsured Life Insurance In-Force | 85% |
Sales Performance
Primerica's sales performance for investment and savings products showed robust growth for the nine months ended September 30, 2024:
| Product Category | Sales (in millions) |
|---|---|
| U.S. Retail Mutual Funds | $3,553 |
| Canada Retail Mutual Funds | $473 |
| Annuities and Other Products | $2,857 |
| Total Product Sales | $8,758 |
Investment Performance
As of September 30, 2024, Primerica's investment portfolio was valued as follows:
| Investment Type | Value (in thousands) |
|---|---|
| Fixed-Maturity Securities Available-for-Sale | $2,994,955 |
| Fixed-Maturity Securities Held-to-Maturity | $1,330,430 |
| Total Investments | $4,409,873 |
Conclusion of Financial Metrics
Overall, Primerica continues to strengthen its market position by focusing on its core mission of providing financial security to middle-income families, as evidenced by its solid financial performance and growing sales across various product lines.
How Primerica, Inc. (PRI) Works
Business Model
Primerica, Inc. operates primarily in the financial services sector, focusing on providing term life insurance, investment products, and financial solutions to families. The company distributes its products through a network of independent sales representatives.
Financial Performance Overview
As of September 30, 2024, Primerica reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenues | $774,129,000 | $697,496,000 | $2,301,033,000 | $2,042,317,000 |
| Net Income | $164,373,000 | $152,063,000 | $303,447,000 | $424,666,000 |
| Income from Continuing Operations | $194,737,000 | $157,454,000 | $552,452,000 | $437,413,000 |
| Earnings Per Share (Diluted) | $4.83 | $4.23 | $8.78 | $11.65 |
Insurance and Premiums
Primerica's insurance segment reported net premiums as follows:
| Category | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Direct Premiums | $852,452,000 | $831,681,000 | $2,538,856,000 | $2,477,850,000 |
| Ceded Premiums | ($412,645,000) | ($411,015,000) | ($1,249,970,000) | ($1,241,629,000) |
| Net Premiums | $439,807,000 | $420,666,000 | $1,288,886,000 | $1,236,221,000 |
Investment Income
Investment income metrics for Primerica include:
| Category | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Investment Income | $41,109,000 | $34,730,000 | $117,367,000 | $98,192,000 |
| Realized Investment Gains (Losses) | $311,000 | ($3,000) | $882,000 | ($650,000) |
| Other Investment Gains (Losses) | $1,898,000 | ($1,792,000) | $2,533,000 | ($6,080,000) |
Sales Performance
The sales performance of Primerica’s products is illustrated below:
| Product | Q3 2024 Sales | Q3 2023 Sales | YTD 2024 Sales | YTD 2023 Sales |
|---|---|---|---|---|
| U.S. Retail Mutual Funds | $1,163,000,000 | $957,000,000 | $3,553,000,000 | $2,928,000,000 |
| Canada Retail Mutual Funds | $146,000,000 | $110,000,000 | $473,000,000 | $366,000,000 |
| Annuities and Other | $981,000,000 | $702,000,000 | $2,857,000,000 | $2,077,000,000 |
Sales Force and Productivity
The independent sales force metrics are as follows:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Average Number of Life-Licensed Representatives | 147,128 | 138,388 |
| New Policies Issued | 93,377 | 88,589 |
| Average Monthly Rate of New Policies | 0.21 | 0.21 |
Dividends and Shareholder Returns
In terms of shareholder returns, Primerica declared the following dividends:
| Dividend Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Dividends Declared Per Share | $0.90 | $0.65 |
How Primerica, Inc. (PRI) Makes Money
Revenue Streams
Primerica, Inc. generates revenue primarily through three segments: Term Life Insurance, Investment and Savings Products, and Corporate and Other Distributed Products. The following table outlines the revenue breakdown for the three months ended September 30, 2024, compared to the same period in 2023:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Direct Premiums | $852,452 | $831,681 | 2.9% |
| Ceded Premiums | ($412,645) | ($411,015) | 0.4% |
| Net Premiums | $439,807 | $420,666 | 4.5% |
| Commissions and Fees | $271,901 | $227,514 | 19.5% |
| Investment Income, net of expenses | $57,017 | $51,036 | 11.8% |
| Total Revenues | $774,129 | $697,496 | 11.0% |
Term Life Insurance Segment
The Term Life Insurance segment represents a significant portion of Primerica's revenue. The company earns income from premiums received from policyholders. For the nine months ended September 30, 2024, the total term life insurance segment revenues were as follows:
| Revenue Source | 9M 2024 (in thousands) | 9M 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Total Segment Revenues | $1,317,661 | $1,261,715 | 4.4% |
Investment and Savings Products Segment
This segment includes commissions and fees from the marketing and distribution of investment products such as mutual funds and annuities. The following table highlights the revenue generated from this segment for Q3 2024:
| Revenue Source | Q3 2024 (in thousands) | Change (%) |
|---|---|---|
| Sales-Based Revenues | $96,269 | 32% |
| Asset-Based Revenues | $142,051 | 19% |
| Account-Based Revenues | $24,107 | 3% |
| Total Segment Revenues | $266,073 | 22% |
Corporate and Other Distributed Products Segment
This segment earns revenues from various third-party products including mortgage loan origination and insurance referrals. The revenue for Q3 2024 is summarized below:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Commissions and Fees | $9,474 | $11,761 | (19%) |
| Total Segment Revenues | $57,750 | $49,826 | 15.9% |
Investment Income
Investment income is a crucial aspect of Primerica's revenue model, derived primarily from the investment of premiums collected. For the nine months ended September 30, 2024, net investment income was:
| Source | 9M 2024 (in thousands) | 9M 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Net Investment Income | $117,367 | $98,192 | 19.5% |
Benefits and Expenses
Primerica's benefits and expenses also play a significant role in determining profitability. The company reported the following expenses for the three months ended September 30, 2024:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Benefits and Claims | $164,363 | $162,062 | 1.4% |
| Insurance Expenses | $63,529 | $57,821 | 10% |
| Total Benefits and Expenses | $271,952 | $287,550 | (5.4%) |
Net Income
Primerica's net income reflects its financial health. For the three months ended September 30, 2024, the company reported:
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Net Income | $164,373 | $152,063 | 8.6% |
Conclusion on Financial Performance
Overall, Primerica, Inc. has demonstrated growth in its revenue streams across various segments, particularly in the Investment and Savings Products segment, while managing expenses effectively. This positions the company favorably for continued financial performance moving forward.
Primerica, Inc. (PRI) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Primerica, Inc. (PRI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Primerica, Inc. (PRI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Primerica, Inc. (PRI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.