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Primerica Shares Up Since Q1 Earnings Surpass Estimates

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Primerica, Inc. (PRI - Free Report) shares have risen 0.3% since the company reported first-quarter earnings on May 7, 2025. The quarterly results benefited from strong Term Life sales, Investment and Savings Product sales and higher premiums. Growth in policies issued and equity market appreciation also favored the results. However, higher benefits and expenses might have dampened investor confidence in the stock.

Primerica reported first-quarter 2025 adjusted earnings of $5.02 per share, which beat the Zacks Consensus Estimate by 5.2%. The bottom line jumped 28.4% from the prior-year quarter.

The top line increased 8.3% year over year to $803.6 million. The figure beat the consensus mark by 2.1%.

Primerica, Inc. Price, Consensus and EPS Surprise

Primerica, Inc. Price, Consensus and EPS Surprise

Primerica, Inc. price-consensus-eps-surprise-chart | Primerica, Inc. Quote

PRI’s Q1 Operational Update

Primerica reported net premiums of $448.3 million in the first quarter, up 4% from the year-ago level. The metric missed the consensus mark by 0.7%. Net investment income rose 10.2% year over year to $41.7 million. The metric beat the consensus mark by 4.8%. Commissions and fees increased 19.3% from the year-ago period to $297 million. It beat the consensus mark by 7.3%.

Total benefits and expenses jumped 7.6% in the first quarter to $583.5 million due to higher benefits and claims, amortization of deferred policy acquisition costs, sales commissions and other operating expenses.

Adjusted net operating income jumped 14% year over year to $168.1 million in the first quarter. At March-end, PRI’s total independent life-licensed representatives were 152,167, which rose 7% from the prior year. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

Segmental Update of PRI

Term Life Insurance: Adjusted operating revenues from the segment increased 4% year over year to $457.8 million. Adjusted operating income before income taxes increased 6% year over year to $146.8 million. The metric beat the consensus mark by 1.5%. The segment was supported by increased policies issued and an increase in adjusted direct premiums.

Investment and Savings Products: Adjusted operating revenues from the segment improved 19% year over year to $290.8 million. Adjusted operating income before income taxes rose 24% year over year to $81.3 million. The segment benefited from an increase in sales of mutual funds, annuities and managed accounts. It beat the consensus mark by 11.5%.

Corporate and Other Distributed Products: Adjusted operating revenues from the unit rose 8% year over year to $54.9 million. Adjusted operating loss before income taxes was $8 million. The segment benefited from higher net investment income.

PRI’s Financial Update (as of March 31, 2025)

Primerica exited the first quarter with cash and cash equivalents of $625.1 million, which declined from the 2024-end level of $687.8 million. Total assets of $14.6 billion were in line with the figure at 2024-end.

Surplus note was $1.3 billion at the first-quarter end, down 1.4% from the figure at 2024-end.

Total shareholders’ equity of $2.3 billion decreased 0.1% from the 2024-end level.

Operating cash flow in the first three months of 2025 was recorded at $197.5 million, down from $210.9 million in the year-ago period.

PRI’s Capital Deployment

PRI bought back shares worth $118 million in the first quarter.

The company approved a dividend of $1.04 per share, which will be paid on June 13 to shareholders on record as of May 22, 2025.

PRI’s Zacks Rank & Key Picks

PRI currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Finance space are Horace Mann Educators Corp (HMN - Free Report) , EverQuote Inc. (EVER - Free Report) and Heritage Insurance Holdings Inc. (HRTG - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Horace Mann Educators’ current-year earnings of $4.01 per share has witnessed two upward revisions in the past 30 days against none in the opposite direction. Horace Mann Educators beat earnings estimates in three of the trailing four quarters and met once, with the average surprise being 24.1%. The consensus estimate for current-year revenues is pegged at $1.7 billion, implying 6.6% year-over-year growth.

The Zacks Consensus Estimate for EverQuote’s current-year earnings is pegged at $1.17 per share. EverQuote beat earnings estimates in each of the trailing four quarters, with the average surprise being 122.6%. The consensus estimate for current-year revenues is pegged at $644.1 million, suggesting 28.8% year-over-year growth.

The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $3.25 per share has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in each of the trailing four quarters, with the average surprise being 363.2%. The consensus estimate for current-year revenues is pegged at $854.9 million, calling for 4.6% year-over-year growth.

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