Primerica enjoyed a jump in revenue during the fourth quarter and the full-year 2025 – but that wasn’t enough to stop its stock from taking a hit.
Market reaction to the results was negative despite headline earnings exceeding estimates. According to market coverage, shares fell 7.5% following the release, with attention focused on net premiums earned of $445.9 million, which grew 1.3% year over year and trailed some expectations. The stock is down 9.7% year to date and trades about 20% below its 52-week high of $292.04 from March 2025.
Analyst sentiment before the release had centered on record ISP sales and expectations for higher earnings. BMO Capital previously upgraded the stock to “Outperform” and raised its price target to $318 from $292, citing the company’s captive salesforce model.
Total revenues rose 8% year over year to $853.7 million in the fourth quarter. Net income increased 18% from income from continuing operations in the prior-year period. Diluted EPS from continuing operations was $6.13, up from $4.98. Adjusted operating revenues increased 8% to $853.5 million, while adjusted net operating income rose 16% to $196.9 million. Diluted adjusted operating EPS was $6.13, compared with $5.03 a year earlier.
For the full year, net income totaled $751.2 million, up 4% from income from continuing operations in 2024. Net earnings per diluted share were $22.91, up 9% from $20.99. Adjusted net operating income increased 10% to $751.4 million, and diluted adjusted operating EPS rose 16% to $22.92.
“I am pleased with our 2025 financial results, which reflected the complementary balance of our business model. The Term Life business continues to provide stability through its large in-force block of business, while the Investment and Savings Products business is increasingly driving growth,” said Glenn Williams, chief executive officer of Primerica, Inc. “At the core of our success is the strength of our sales force and their continued commitment to serving middle-income families.”
The capital actions follow record investment and savings products (ISP) sales. Fourth-quarter ISP sales totaled $4.1 billion, up 24% from $3.3 billion a year earlier. Average client asset values increased 14% to $128.2 billion, and net inflows were $325 million. ISP segment revenues rose 19% to $340.3 million, and income before income taxes increased 23% to $100.6 million.
The term life segment reported direct premiums of $865.1 million, up 2%, and adjusted direct premiums of $682.0 million, up 4%. Net premiums were $445.9 million, up 2%. Segment revenues increased 1% to $456.8 million, and pre-tax operating income rose 5% to $146.6 million.
The benefits and claims ratio was 57.8%, compared with 58.6% in the prior-year period. Excluding a $5.2 million remeasurement gain in the current year and a $1.5 million remeasurement loss in the prior year, the ratio was largely consistent year over year. The DAC amortization and insurance commissions ratio was 12.2%, while the insurance expense ratio was 8.5%, compared with 8.0% a year earlier. Operating margin in Term Life was 21.5%, compared with 21.3% in the prior-year quarter.
Distribution metrics were mixed. The life-licensed sales force ended the year at 151,524 representatives, compared with 151,611 a year earlier. Recruits totaled 75,369, down 21%, and 10,998 new representatives obtained life licenses, down 25%. Policies issued declined 15% to 76,143, and issued term life face amount fell 12% to $26.1 billion. Life productivity was 0.17, compared with 0.20 in the prior-year quarter.
The effective income tax rate was 20.2% in the fourth quarter, compared with 23.3% in the prior-year period. The company recognized a $7.4 million income tax benefit, or $0.23 per diluted share, from the purchase of transferable federal income tax credits. Excluding that benefit, the effective rate was 23.3%.
On December 31, 2025, total assets were $15.01 billion and total stockholders’ equity was $2.45 billion, compared with $14.58 billion and $2.26 billion, respectively, at year-end 2024.
Meanwhile, Primerica disclosed that board members Beatriz R. Perez and Gary L. Crittenden will not stand for reelection at the May 2026 annual meeting after more than a decade of service. The governance update comes during a period when the company continues to focus on capital allocation, product mix, and oversight of a distribution model serving middle-income households.
