A Business at a Glance
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Primerica, Inc.
PRI
$10.3B
Mkt Cap
$314.59
+2.08%
Primerica, Inc. (PRI) has a current P/E ratio of 13.7, compared to its historical median P/E of 12.8. The stock is currently considered Fair based on its historical valuation range.
Primerica, Inc. (PRI) has a 5-year average return on invested capital (ROIC) of 25.2%. This indicates strong capital allocation and a potential competitive advantage.
Primerica, Inc. (PRI) has a market capitalization of $9.9B. It is classified as a mid-cap stock.
Yes, Primerica, Inc. (PRI) pays a dividend with a trailing twelve-month yield of 1.41%. The company also returns capital through share buybacks, with a buyback yield of 4.74%.
Based on historical P/E analysis, Primerica, Inc. (PRI) appears fair. The current P/E of 13.7 is 8% above its historical median of 12.8. The estimated fair value CAGR (P/E method) is 14.0%.
Primerica, Inc. (PRI) operates in the Life Insurance industry, within the Financials sector.
Primerica, Inc. (PRI) reported annual revenue of $3.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
Primerica is a leading financial services provider serving middle-income households in the United States and Canada through a network of 151,524 independent licensed sales representatives. The company operates through three primary segments: Term Life Insurance, which the company underwrites and generates recurring premium revenues from over 5.5 million insured lives; Investment and Savings Products, which distributes mutual funds, annuities, managed investments, and other financial products on behalf of third parties to approximately 3.1 million client investment accounts; and Corporate and Other Distributed Products, including a growing mortgage business. The business model is fundamentally fee-based and asset-light: term life insurance revenues exhibit characteristics similar to a fee-based model due to coinsurance agreements that cede 80–90% of mortality risk, substantially eliminating underwriting volatility and creating stable, recurring revenue streams, while investment and savings products generate entirely fee-based revenues through sales commissions and advisory service fees. The company's distribution strategy leverages independent sales representatives who are entrepreneurially motivated, enabling cost-effective reach to underserved middle-income consumers who typically have modest savings and are sensitive to cost-of-living pressures. The complementary nature of the two primary segments provides a natural hedge: term life insurance clients are typically in their mid-30s with lower savings, while investment product clients range from those just beginning to save to those with accumulated assets, allowing the company to benefit from different macroeconomic conditions and client lifecycle stages. Primerica's competitive moat rests on its established distribution network, brand recognition, and the proven ability to serve middle-income families in both favorable and challenging economic environments.
【Cautious near-term recovery】 Management expects modest stabilization in term life insurance sales as cost-of-living pressures ease and the company's 50th anniversary convention in 2027 approaches, though near-term uncertainty remains elevated. Investment and Savings Products is projected to deliver upper single-digit sales growth in 2026, supported by strong equity market conditions and continued client demand for variable annuities and managed accounts, though management maintains a conservative stance given potential market volatility. The company is investing proactively in sales training, digital experiences, and field events to improve representative productivity and expand distribution capabilities, with expectations that these initiatives will drive incremental growth over time. Operating margins are expected to remain stable around 21% for the full year 2026, with consolidated expenses growing 7–8%, reflecting the predictable and stable nature of the term life business and the fee-based characteristics of the investment segment. Management believes the need for financial guidance among middle-income families remains elevated and the entrepreneurial opportunity for sales representatives continues to strengthen, positioning the company to grow both sales force size and productivity simultaneously.
| Metric | Target | Period |
|---|---|---|
| Term Life Policies Issued | flat to down approximately 2% | FY2026 |
| Investment and Savings Products Sales Growth | upper single-digit range | FY2026 |
| Adjusted Direct Premiums Growth | approximately 4% | FY2026 |
| Benefits and Claims Ratio | around 58% | FY2026 |
| DAC Amortization and Insurance Commissions Ratio | around 12%-13% | FY2026 |
| Operating Margin | around 21% | FY2026 |
| Consolidated Expense Growth | 7%-8% | FY2026 |
| Life License Sales Force Growth | approximately 1% | FY2026 |
Term Life Policies Issued (FY2026): “we project full year 2026 term life policies issued to be flat to down approximately 2%”
Investment and Savings Products Sales Growth (FY2026): “we expect full-year sales growth to be in the upper single-digit range for 2026”
Adjusted Direct Premiums Growth (FY2026): “we expect adjusted direct premiums to grow approximately 4% on a full-year basis”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 3.4B | 3.3B | 3.1B | 2.7B | 2.7B | 2.7B |
| Net Income | 770M | 749M | 718M | 589M | 552M | 475M |
| EPS | $24.11 | $22.91 | $13.71 | $15.94 | $12.33 | $11.99 |
| Free Cash Flow | 0 | 901M | 862M | 693M | 758M | 657M |
| ROIC | 0.0% | 25.4% | 26.0% | 22.3% | 26.7% | 25.5% |
| Gross Margin | - | 29.6% | 30.4% | 74.6% | 73.6% | 75.8% |
| Debt/Equity | 0.24 | 0.24 | 0.26 | 0.29 | 0.29 | 0.64 |
| Dividends/Share | $4.45 | $4.16 | $2.16 | $2.60 | $2.20 | $1.88 |
| Operating Income | 0 | 975M | 939M | 772M | 719M | 644M |
| Operating Margin | 0.0% | 29.6% | 30.4% | 28.1% | 27.0% | 23.7% |
| ROE | 30.5% | 31.8% | 33.2% | 28.7% | 37.4% | 34.4% |
| Shares Outstanding | 31M | 33M | 52M | 37M | 45M | 40M |
Primerica, Inc. passes 7 of 9 quality checks, indicating strong fundamentals.
Primerica, Inc. trades at 13.7x trailing earnings, compared to its 15-year median P/E of 12.8x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 11.4x vs a median of 9.7x. The company's 5-year average ROIC is 25.2% with a gross margin of 56.8%. Total shareholder yield (dividends + buybacks) is 6.2%. At current prices, the estimated annualized return to fair value is +12.8%.
Primerica, Inc. (PRI) has a net profit margin of 22.7%. This is a strong margin indicating high profitability.
Primerica, Inc. (PRI) generated $901 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Primerica, Inc. (PRI) has a debt-to-equity ratio of 0.24. This indicates a conservatively financed balance sheet.
Primerica, Inc. (PRI) reported earnings per share (EPS) of $22.91 in its most recent fiscal year.
Primerica, Inc. (PRI) has a return on equity (ROE) of 31.8%. This indicates the company generates strong returns for shareholders.
Primerica, Inc. (PRI) has a 5-year average gross margin of 56.8%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 16 years of financial data for Primerica, Inc. (PRI), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Primerica, Inc. (PRI) has a book value per share of $74.84, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects modest stabilization in term life insurance sales as cost-of-living pressures ease and the company's 50th anniversary convention in 2027 approaches, though near-term uncertainty remains elevated. Investment and Savings Products is projected to deliver upper single-digit sales growth in 2026, supported by strong equity market conditions and continued client demand for variable annuities and managed accounts, though management maintains a conservative stance given potential market volatility. The company is investing proactively in sales training, digital experiences, and field events to improve representative productivity and expand distribution capabilities, with expectations that these initiatives will drive incremental growth over time. Operating margins are expected to remain stable around 21% for the full year 2026, with consolidated expenses growing 7–8%, reflecting the predictable and stable nature of the term life business and the fee-based characteristics of the investment segment. Management believes the need for financial guidance among middle-income families remains elevated and the entrepreneurial opportunity for sales representatives continues to strengthen, positioning the company to grow both sales force size and productivity simultaneously.
Based on recent SEC filings and earnings calls, Primerica, Inc. (PRI) has provided the following forward guidance: Term Life Policies Issued: flat to down approximately 2% (FY2026); Investment and Savings Products Sales Growth: upper single-digit range (FY2026); Adjusted Direct Premiums Growth: approximately 4% (FY2026); Benefits and Claims Ratio: around 58% (FY2026); DAC Amortization and Insurance Commissions Ratio: around 12%-13% (FY2026), plus 3 additional metrics.
Benefits and Claims Ratio (FY2026): “We anticipate the benefits and claims ratio to be around 58%”
DAC Amortization and Insurance Commissions Ratio (FY2026): “the DAC amortization and insurance commissions ratio around 12%-13%”
Operating Margin (FY2026): “the operating margin around 21%”
Consolidated Expense Growth (FY2026): “we continue to expect full year expense growth in the range of 7%-8% for 2026”
Life License Sales Force Growth (FY2026): “We expect full year growth in both recruiting and licensing, which should translate into approximately 1% growth in our life license sales force in 2026”