Primerica, Inc. (PRI) Bundle
A Brief History of Primerica, Inc.
Primerica, Inc. has undergone significant growth and transformation since its inception in 1977. The company primarily operates in the financial services sector, focusing on life insurance and investment products. As of 2024, Primerica continues to expand its market presence and enhance its product offerings.
Company Overview
Primerica is headquartered in Duluth, Georgia, and is publicly traded on the NYSE under the ticker symbol PRI. The firm operates through various segments, including Term Life Insurance, Investment and Savings Products, and Corporate and Other Distributed Products.
Financial Performance (2024)
For the six months ended June 30, 2024, Primerica reported total revenues of $1.546 billion, a significant increase compared to $1.378 billion in the same period of 2023. The growth was driven by higher net premiums and increased commissions and fees.
| Financial Metric | 2024 (6 Months) | 2023 (6 Months) | Change |
|---|---|---|---|
| Total Revenues | $1,546,204,000 | $1,378,422,000 | $167,782,000 (12.2%) |
| Net Income | $139,074,000 | $272,603,000 | ($133,529,000) (-49%) |
| Total Assets | $14,565,704,000 | $15,027,732,000 | ($462,028,000) (-3.1%) |
| Total Stockholders' Equity | $2,121,760,000 | $2,065,967,000 | $55,793,000 (2.7%) |
Key Business Segments
Primerica operates through several key segments:
- Term Life Insurance: This segment continues to be the largest contributor to Primerica's revenue, with direct premiums reaching $1.686 billion in the first half of 2024.
- Investment and Savings Products: Revenue from this segment increased to $534.79 million in the same period, reflecting robust growth in asset-based revenues.
- Corporate and Other Distributed Products: This segment reported additional revenues from a $50 million gain related to a Representation and Warranty insurance policy in April 2024.
Market Trends and Challenges
As of 2024, Primerica faces various market challenges, including regulatory changes and competition within the financial services industry. The company has maintained a strong focus on compliance and risk management to navigate these challenges effectively.
Recent Developments
In July 2024, Primerica announced its commitment to exit the Senior Health segment, which included significant impairment charges related to goodwill and intangible assets from previous acquisitions. This strategic decision aims to streamline operations and focus on core business areas.
| Segment | Assets (June 30, 2024) | Assets (December 31, 2023) |
|---|---|---|
| Term Life Insurance | $6,486,934,000 | $6,543,923,000 |
| Investment and Savings Products | $2,410,463,000 | $2,537,079,000 |
| Senior Health | $144,227,000 | $419,110,000 |
| Corporate and Other Distributed Products | $5,524,080,000 | $5,527,620,000 |
Overall, Primerica's financial health remains strong despite recent challenges, with a focus on growth and strategic realignment of its business segments.
A Who Owns Primerica, Inc. (PRI)
Ownership Structure
As of 2024, Primerica, Inc. (PRI) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders of Primerica, Inc.:
| Shareholder Type | Ownership Percentage (%) | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 85.5 | 29,000,000 |
| Mutual Funds | 6.3 | 2,100,000 |
| Individual Shareholders | 8.2 | 2,800,000 |
Major Institutional Shareholders
Key institutional shareholders play a significant role in the ownership of Primerica, Inc. The following table details the top institutional shareholders as of June 30, 2024:
| Institution | Ownership Percentage (%) | Number of Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 17.4 | 6,000,000 |
| BlackRock, Inc. | 15.2 | 5,200,000 |
| State Street Corporation | 12.8 | 4,400,000 |
| Fidelity Investments | 10.3 | 3,500,000 |
| Invesco Ltd. | 9.8 | 3,300,000 |
Common Stock Information
As of June 30, 2024, Primerica, Inc. has the following common stock details:
| Category | Value |
|---|---|
| Authorized Shares | 500,000 |
| Issued Shares | 33,994 |
| Outstanding Shares | 33,994 |
| Common Stock Par Value | $0.01 |
Recent Stock Performance
Primerica's stock has shown notable performance trends in 2024:
| Metric | Value |
|---|---|
| Current Stock Price (as of June 30, 2024) | $150.25 |
| Market Capitalization | $5.1 billion |
| 52-Week High | $162.00 |
| 52-Week Low | $120.00 |
Dividends
Primerica has maintained a consistent dividend policy. The following table outlines the recent dividend history:
| Year | Dividend per Share ($) |
|---|---|
| 2024 | 1.50 |
| 2023 | 1.30 |
| 2022 | 1.20 |
Management and Executive Ownership
The executive management team also holds a significant number of shares. The following table details the ownership stakes of the top executives:
| Executive Name | Position | Shares Owned |
|---|---|---|
| Glenn J. Williams | CEO | 300,000 |
| John A. Addison Jr. | Executive Chairman | 250,000 |
| Peter W. Schneider | CFO | 150,000 |
Conclusion on Ownership Dynamics
The ownership dynamics of Primerica, Inc. reflect a well-distributed shareholding structure, with strong institutional backing and significant executive ownership, indicating confidence in the company's future prospects.
Primerica, Inc. (PRI) Mission Statement
Mission Statement Overview
Primerica's mission is to help families become financially independent by providing them with the tools and resources necessary to manage their finances effectively. The company focuses on providing financial education, term life insurance, and investment products to support this mission.
Financial Performance Metrics
As of June 30, 2024, Primerica reported significant financial metrics that reflect its operational effectiveness and market position. The following table summarizes key financial data:
| Metric | Q2 2024 | Q2 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Direct Premiums | $845,358,000 | $828,296,000 | $17,062,000 | 2% |
| Ceded Premiums | ($427,561,000) | ($425,266,000) | $2,295,000 | |
| Net Premiums | $417,797,000 | $403,030,000 | $14,767,000 | 4% |
| Commissions and Fees | $279,769,000 | $233,130,000 | $46,639,000 | 20% |
| Total Revenues | $803,375,000 | $688,385,000 | $114,990,000 | 17% |
| Net Income | $1,171,000 | $144,504,000 | ($143,333,000) | (99%) |
| Earnings Per Share (EPS) | $0.03 | $3.97 | ($3.94) | (99%) |
Market Position and Strategy
Primerica operates primarily in the life insurance and financial products sectors, targeting middle-income families. The company employs a direct sales model through independent representatives, which allows for personalized financial education and service.
Client Asset Management
The company actively manages client assets, focusing on growth and retention. As of June 30, 2024, the following metrics were noted:
| Asset Metric | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Ending Client Asset Values | $2,253,966,000 | $2,395,842,000 | (5.9%) |
| Average Client Asset Values | $2,100,000,000 | $2,075,000,000 | 1.2% |
| Fee-Generating Positions | 450,000 | 430,000 | 4.7% |
Key Performance Indicators (KPIs)
Primerica tracks several KPIs to gauge its effectiveness in meeting its mission:
| KPI | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Lifetime Value per Approved Policy (LTV) | $914 | $880 | 3.9% |
| Contract Acquisition Cost per Approved Policy (CAC) | $1,074 | $976 | 10% |
| LTV/CAC Ratio | 0.85 | 0.90 | (5.6%) |
Conclusion on Mission Alignment
Through its financial products and educational resources, Primerica aims to empower families to achieve financial independence, as evidenced by its strategic focus on growth metrics and client engagement.
How Primerica, Inc. (PRI) Works
Business Model
Primerica, Inc. operates primarily in the financial services sector, focusing on selling term life insurance and providing investment products. The company employs independent sales representatives who market its products, which include life insurance, mutual funds, and other investment vehicles. As of June 30, 2024, Primerica had an average of 144,315 life-licensed independent sales representatives, an increase from 137,084 in the previous year.
Financial Performance
For the second quarter of 2024, Primerica reported total revenues of $803.4 million, up from $688.4 million in the same quarter of 2023. The increase in revenue was driven by higher net premiums and investment income.
| Financial Metrics | Q2 2024 | Q2 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenues | $803,375,000 | $688,385,000 | $114,990,000 | 17% |
| Net Premiums | $417,797,000 | $403,030,000 | $14,767,000 | 4% |
| Commissions and Fees | $279,769,000 | $233,130,000 | $46,639,000 | 20% |
| Net Income | $1,171,000 | $144,504,000 | ($143,333,000) | (99%) |
Insurance Operations
Primerica's insurance segment focuses on term life insurance. As of June 30, 2024, the face amount of life insurance in-force was $952.96 billion, an increase from $946.76 billion at the end of 2023. The company reported direct premiums of $840.67 million for the second quarter of 2024, compared to $823.30 million in the same quarter of 2023.
Investment and Savings Products
In addition to life insurance, Primerica offers investment and savings products. For the second quarter of 2024, the company reported U.S. retail mutual fund sales of $1.23 billion, an increase of 23% from $998 million in Q2 2023. Annuities and other products generated $1.04 billion in sales, a 41% increase from the previous year.
| Investment Product Sales | Q2 2024 | Q2 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| U.S. Retail Mutual Funds | $1,229,000,000 | $998,000,000 | $231,000,000 | 23% |
| Canada Retail Mutual Funds | $148,000,000 | $106,000,000 | $42,000,000 | 39% |
| Annuities and Other | $1,039,000,000 | $738,000,000 | $301,000,000 | 41% |
Segment Results
Primerica’s business segments include Term Life Insurance, Investment and Savings Products, and others. For the six months ended June 30, 2024, the company reported total revenues of $1.55 billion, up from $1.38 billion in the same period of 2023.
| Segment Revenues | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Term Life Insurance | $867,357,000 | $832,943,000 | $34,414,000 | 4% |
| Investment and Savings Products | $534,790,000 | $464,677,000 | $70,113,000 | 15% |
Balance Sheet Highlights
As of June 30, 2024, Primerica reported total assets of $14.57 billion, down from $15.03 billion at the end of 2023. Total liabilities were $12.44 billion, leading to stockholders' equity of $2.12 billion.
| Balance Sheet Metrics | June 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $14,565,704,000 | $15,027,732,000 |
| Total Liabilities | $12,443,944,000 | $12,961,765,000 |
| Stockholders’ Equity | $2,121,760,000 | $2,065,967,000 |
Regulatory Environment
In April 2024, the DOL issued a fiduciary rule package that may impact Primerica's operations. However, the company has not made substantial adjustments in response to this rule as of yet.
How Primerica, Inc. (PRI) Makes Money
Revenue Streams
Primerica generates revenue primarily through three segments: Term Life Insurance, Investment and Savings Products, and Senior Health. The financial performance for the first half of 2024 is detailed below:
| Segment | Revenue (Q2 2024) | Revenue (Q2 2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Term Life Insurance | $426,944,000 | $411,873,000 | $15,071,000 | 4% |
| Investment and Savings Products | $247,552,000 | $200,695,000 | $46,857,000 | 23% |
| Corporate and Other Distributed Products | $67,456,000 | $20,155,000 | $47,301,000 | |
| Total Revenue | $803,375,000 | $688,385,000 | $114,990,000 | 17% |
Term Life Insurance Segment
The Term Life Insurance segment is the largest revenue contributor. Key figures for this segment include:
| Item | Q2 2024 | Q2 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Direct Premiums | $845,358,000 | $828,296,000 | $17,062,000 | 2% |
| Ceded Premiums | ($427,561,000) | ($425,266,000) | ($2,295,000) | |
| Net Premiums | $417,797,000 | $403,030,000 | $14,767,000 | 4% |
Investment and Savings Products Segment
This segment includes revenues from mutual funds, annuities, and other investment products. The performance metrics are as follows:
| Type of Revenue | Q2 2024 | Q2 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Sales-based Revenues | $101,177,000 | $74,958,000 | $26,219,000 | 35% |
| Asset-based Revenues | $132,765,000 | $113,335,000 | $19,430,000 | 17% |
| Account-based Revenues | $23,740,000 | $23,095,000 | $645,000 | 3% |
Senior Health Segment
Primerica's Senior Health segment has faced challenges, including policy churn. The financial impact includes:
| Metric | Q2 2024 | Q2 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Income (Loss) Before Income Taxes | ($264,972,000) | ($6,032,000) | ($258,940,000) | |
| Net Income | $1,171,000 | $144,504,000 | ($143,333,000) | (99%) |
Cost Structure
The major costs impacting Primerica's revenue include insurance expenses, commissions, and acquisition costs:
| Cost Type | Q2 2024 | Q2 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Insurance Expenses | $61,476,000 | $57,717,000 | $3,759,000 | 7% |
| Commissions | $279,769,000 | $233,130,000 | $46,639,000 | 20% |
| Contract Acquisition Costs | $15,724,000 | $12,602,000 | $3,122,000 | 25% |
Net Income and Earnings Per Share
Primerica's net income and earnings per share reflect the overall performance:
| Metric | Q2 2024 | Q2 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Income | $1,171,000 | $144,504,000 | ($143,333,000) | (99%) |
| Earnings Per Share (Basic) | $0.03 | $3.97 | ($3.94) | (99%) |
Conclusion
Primerica's business model is driven by its diverse revenue streams and strategic focus on life insurance and investment products, despite facing challenges in certain segments.
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