Primerica Inc. (NYSE: PRI) reported first-quarter adjusted operating earnings of $5.96 per share on revenue of $872.3 million, surpassing Wall Street expectations. Analysts surveyed by StockStory had forecast $5.48 per share and $856.4 million in revenue. The company's net income climbed 12% to $190.1 million, or $5.97 per diluted share, as total revenue rose 8% to $872.7 million.
The results underscore a mixed performance for the Duluth, Georgia-based firm, which targets middle-income families. A surge in investment and savings products offset a notable slowdown in term life insurance sales. Investment and Savings Products—including mutual funds, annuities, and managed accounts—posted a record $4.3 billion in sales, up 22% year-over-year. Client asset values ended the quarter at $127 billion, a 15% increase.
On the insurance side, new term life policies issued fell 14% to 74,054, while annualized issued premium dropped 10% to $83.3 million. Despite the slowdown, term life revenue edged up 1% to $464.6 million, supported by higher recurring premiums. The company's recruiting pipeline also showed strain: new recruits declined 17% to 84,217, and new life-licensed representatives fell 14% to 10,569. The total life-licensed sales force contracted 2% to 149,732.
Chief Executive Glenn Williams described the quarter as reflecting "continued momentum" for investment products and ongoing demand for financial education and guidance. The company's strategy remains focused on pushing core protection and savings offerings through its independent sales force, even as households face budget pressures.
A recent Primerica survey found that 65% of middle-income families postponed a major expense or purchase in the past year, and 69% expressed negative views about their ability to save for the future. These headwinds help explain the divergence in performance between investment and insurance segments.
Adjusted numbers exclude investment gains, losses, and fair-value mark-to-market changes, which can complicate operating comparisons. Primerica noted in an SEC filing that these non-GAAP metrics are not intended to replace results under U.S. accounting standards.
Investor sentiment across the insurance sector remains mixed. MetLife (NYSE: MET) posted a notable profit surge as broader insurance demand held up, while Prudential Financial (NYSE: PRU) saw adjusted earnings climb, driven by its investment management business. The trend highlights how market-driven revenues are becoming more important for some players.
Primerica shares traded at $276.80 ahead of Thursday's open, little changed from the prior close. The company's earnings call is scheduled for 10:00 a.m. EDT.
