Q2 2024 Primerica Inc Earnings Call Transcript
Key Points
- Primerica Inc (PRI) reported a 12% increase in adjusted net operating income, reaching $163 million, and an 18% increase in diluted adjusted operating income per share.
- The company repurchased $143 million of its common stock and paid $26 million in regular dividends during the second quarter.
- Recruitment efforts were strong, with over 96,000 individuals recruited, marking a 12% increase compared to the prior year period.
- Investment product sales increased by 29% to $3.1 billion, driven by strong demand for mutual funds, annuities, and managed accounts.
- Client asset values benefited from strong equity market appreciation, ending the quarter at $105 billion, a 15% year-over-year increase.
- Primerica Inc (PRI) decided to exit the senior health market due to increasing policy churn and regulatory uncertainty, impacting anticipated profitability.
- The company recorded a $254 million write-off of remaining goodwill intangibles related to the senior health business exit.
- Higher cost of living pressures are impacting low-income families, contributing to elevated policy lapses.
- The senior health segment reported a pre-tax adjusted operating loss of $11 million, with revenues and adjusted operating income unfavorable compared to the prior year.
- Adjusted consolidated insurance and other operating expenses increased by 6% year-over-year, primarily due to higher variable expenses and employee-related costs.
Welcome to Primerica Second Quarter 2024 Earnings Call and Webcast. At this time, all participants are in a listen-only mode. The question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the call over to Nicole Russell, SVP Investor Relations. Thank you. You may begin.
Thank you, operator, and good morning, everyone. Welcome to Primericaâs second quarter earnings call. A copy of our earnings press release, along with other materials relevant to today's call are posted on the investor relations section of our website. Joining our call today are our Chief Executive Officer, Glenn Williams and our Chief Financial Officer, Tracy Tan.
Our comments this morning may contain forward-looking statements in accordance with the Safe Harbor provisions of the Securities Litigation Reform Act. We assume no obligation to update these statements to reflect the information and refer you to our most recent
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