Primerica, Inc. (PRI)
SIC breadcrumb: Finance, Insurance, And Real Estate > Insurance Carriers > SIC 6311 Life Insurance
SEC company page: https://www.sec.gov/edgar/browse/?CIK=1475922. Latest filing source: 0001193125-26-082233.
Informational only. Descriptive public-record data — not a rating, forecast, or investment advice. See Disclaimer.
At a glance
- Revenue
- 3,291,713,000 USD verified
- Net income
- 751,234,000 USD verified
- Assets
- 15,012,336,000 USD verified
- Net margin
- 22.82% computed
- Revenue YoY
- +6.56% computed
- ROE
- 30.71% computed
Peer & cluster context
Peer percentile fingerprint
Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6311 Life Insurance, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 3,291,713,000 | USD | 2025 | 2026-02-27 |
| Net income | 751,234,000 | USD | 2025 | 2026-02-27 |
| Assets | 15,012,336,000 | USD | 2025 | 2026-02-27 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001475922.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 1,519,084,000 | 1,689,102,000 | 1,899,843,000 | 2,052,504,000 | 2,217,541,000 | 2,709,732,000 | 2,657,451,000 | 2,748,507,000 | 3,089,143,000 | 3,291,713,000 |
| Net income | 219,414,000 | 350,255,000 | 324,094,000 | 366,391,000 | 386,164,000 | 475,985,000 | 467,030,000 | 576,601,000 | 470,518,000 | 751,234,000 |
| Diluted EPS | 4.59 | 7.61 | 7.33 | 8.62 | 9.57 | 11.99 | 12.33 | 15.94 | 13.71 | 22.91 |
| Operating cash flow | 294,427,000 | 391,544,000 | 478,067,000 | 485,513,000 | 643,417,000 | 656,956,000 | 757,665,000 | 692,517,000 | 862,088,000 | 901,178,000 |
| Dividends paid | 255,000,000 | 330,000,000 | 290,000,000 | 271,700,000 | ||||||
| Share buybacks | 150,057,000 | 150,038,000 | 210,146,000 | 225,037,000 | 231,431,000 | 18,751,000 | 356,306,000 | 375,062,000 | 425,035,000 | 450,033,000 |
| Assets | 11,438,943,000 | 12,460,703,000 | 12,595,048,000 | 13,688,531,000 | 14,905,285,000 | 16,195,964,000 | 14,641,423,000 | 15,027,732,000 | 14,582,022,000 | 15,012,336,000 |
| Liabilities | 10,217,569,000 | 11,041,602,000 | 11,133,535,000 | 12,036,040,000 | 13,069,400,000 | 14,033,440,000 | 12,610,169,000 | 12,961,765,000 | 12,322,981,000 | 12,566,434,000 |
| Stockholders' equity | 1,221,374,000 | 1,419,101,000 | 1,461,513,000 | 1,652,491,000 | 1,835,885,000 | 925,427,000 | 2,031,254,000 | 2,065,967,000 | 2,259,041,000 | 2,445,902,000 |
| Cash and cash equivalents | 211,976,000 | 279,962,000 | 262,138,000 | 256,876,000 | 547,569,000 | 392,501,000 | 489,240,000 | 594,148,000 | 687,821,000 | 756,227,000 |
Ratios
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net margin | 14.44% | 20.74% | 17.06% | 17.85% | 17.41% | 17.57% | 17.57% | 20.98% | 15.23% | 22.82% |
| Return on equity | 17.96% | 24.68% | 22.18% | 22.17% | 21.03% | 51.43% | 22.99% | 27.91% | 20.83% | 30.71% |
| Return on assets | 1.92% | 2.81% | 2.57% | 2.68% | 2.59% | 2.94% | 3.19% | 3.84% | 3.23% | 5.00% |
| Liabilities / equity | 8.37 | 7.78 | 7.62 | 7.28 | 7.12 | 15.16 | 6.21 | 6.27 | 5.45 | 5.14 |
Industry Peer Context
Net margin peer context
ROE peer context
ROA peer context
Financial Charts
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-082233; filed 2026-02-27. Concept: Revenues. Source concepts: us-gaap:Revenues.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-082233; filed 2026-02-27. Concept: ProfitLoss. Source concepts: us-gaap:ProfitLoss.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-082233; filed 2026-02-27. Concept: EarningsPerShareDiluted. Source concepts: us-gaap:EarningsPerShareDiluted.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-082233; filed 2026-02-27. Concept: NetCashProvidedByUsedInOperatingActivities. Source concepts: us-gaap:NetCashProvidedByUsedInOperatingActivities.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-082233; filed 2026-02-27. Concept: PaymentsOfDividends. Source concepts: us-gaap:PaymentsOfDividends.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-082233; filed 2026-02-27. Concept: PaymentsForRepurchaseOfCommonStock. Source concepts: us-gaap:PaymentsForRepurchaseOfCommonStock.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-082233; filed 2026-02-27. Concept: Assets. Source concepts: us-gaap:Assets.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-082233; filed 2026-02-27. Concept: Liabilities. Source concepts: us-gaap:Liabilities.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-082233; filed 2026-02-27. Concept: StockholdersEquity. Source concepts: us-gaap:StockholdersEquity.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-082233; filed 2026-02-27. Concept: CashAndCashEquivalentsAtCarryingValue. Source concepts: us-gaap:CashAndCashEquivalentsAtCarryingValue.
As-reported value updates
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001475922.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2022-Q1 | 2022-03-31 | 81,419,000 | reported discrete quarter | ||
| 2022-Q2 | 2022-06-30 | 107,947,000 | reported discrete quarter | ||
| 2022-Q3 | 2022-09-30 | 51,807,000 | 1.37 | reported discrete quarter | |
| 2022-Q4 | 2022-12-31 | 131,840,000 | derived Q4 = FY annual - nine-month YTD | ||
| 2023-Q1 | 2023-03-31 | 125,106,000 | 3.38 | reported discrete quarter | |
| 2023-Q2 | 2023-06-30 | 144,504,000 | 3.97 | reported discrete quarter | |
| 2023-Q3 | 2023-09-30 | 710,932,000 | 152,063,000 | 4.23 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 726,338,000 | 151,935,000 | derived Q4 = FY annual - nine-month YTD | |
| 2024-Q1 | 2024-03-31 | 742,830,000 | 137,904,000 | 3.93 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 803,375,000 | 1,171,000 | 0.03 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 774,129,000 | 4.83 | reported discrete quarter | |
| 2024-Q4 | 2024-12-31 | 788,110,000 | derived Q4 = FY annual - nine-month YTD | ||
| 2025-Q1 | 2025-03-31 | 804,843,000 | 5.05 | reported discrete quarter | |
| 2025-Q2 | 2025-06-30 | 793,334,000 | 5.40 | reported discrete quarter | |
| 2025-Q3 | 2025-09-30 | 839,852,000 | 6.35 | reported discrete quarter | |
| 2025-Q4 | 2025-12-31 | 853,685,000 | derived Q4 = FY annual - nine-month YTD | ||
| 2026-Q1 | 2026-03-31 | 872,693,000 | 190,096,000 | 5.97 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 865,067,000 | 202,278,000 | 6.45 | reported discrete quarter |
Quarterly Charts
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-06-30; accession 0001193125-26-337365; filed 2026-08-06. Concept: Revenues. Source concepts: us-gaap:Revenues.
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-06-30; accession 0001193125-26-337365; filed 2026-08-06. Concept: NetIncomeLoss. Source concepts: us-gaap:NetIncomeLoss.
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-06-30; accession 0001193125-26-337365; filed 2026-08-06. Concept: EarningsPerShareDiluted. Source concepts: us-gaap:EarningsPerShareDiluted.
Business
Read PRI's verbatim Item 1 Business section from its latest 10-K: Business.
Risk Factors
Read PRI's verbatim Item 1A Risk Factors from its latest 10-K: Risk Factors.
Latest quarter (10-Q)
Latest 10-Q source: 0001193125-26-337365.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to inform the reader about matters affecting the financial condition and results of operations of Primerica, Inc. (the “Parent Company”) and its subsidiaries (collectively, “we”, “us” or the “Company”) for the period from December 31, 2025 to June 30, 2026. As a result, the following discussion should be read in conjunction with MD&A and the consolidated financial statements and notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Annual Report”). This discussion contains forward-looking statements that constitute our plans, estimates and beliefs. These forward-looking statements involve numerous risks and uncertainties, including, but not limited to, those discussed under the heading “Risk Factors” in the 2025 Annual Report and in Item 1A of this Report. Actual results may differ materially from those contained in any forward-looking statements.
This MD&A is divided into the following sections:
•
Business Overview
•
Business Trends and Conditions
•
Factors Affecting Our Results
•
Critical Accounting Estimates
•
Results of Operations
•
Financial Condition
•
Liquidity and Capital Resources
Business Overview
We are a leading diversified financial services distribution company serving middle-income households in the United States and Canada. Our licensed representatives (“independent sales representatives” or “independent sales force”) educate families on how to prepare for a more secure financial future and help them achieve their financial goals with our term life insurance and third-party mutual funds, managed accounts, annuities, loans, and other financial products. We have two primary operating segments, Term Life Insurance and Investment and Savings Products, and a third segment, Corporate and Other Distributed Products.
Term Life Insurance. We distribute the term life insurance products that we underwrite through our three issuing life insurance company subsidiaries: Primerica Life Insurance Company (“Primerica Life”), National Benefit Life Insurance Company (“NBLIC”), and Primerica Life Insurance Company of Canada (“Primerica Life Canada”). Policies remain in-force until the expiration of the coverage period or until the policyholder ceases to make premium payments. Our in-force term life insurance policies have level premiums for the stated term period. As such, the policyholder pays the same amount each year. Initial policy term periods are between 10 and 35 years. While premiums typically remain level during the initial term period, our claim obligations generally increase as our policyholders age. We cede a significant portion of the mortality risk of our term life insurance policies to third-party reinsurers to substantially reduce the uncertainty of our benefits and claims expense. In addition, we incur significant up-front costs in acquiring new insurance business.
Investment and Savings Products. In the United States, we distribute mutual funds, managed accounts, variable annuity, and fixed annuity products of several third-party companies. We provide investment advisory and administrative services for client assets invested in our managed accounts investments program. We also perform distinct transfer agent recordkeeping services and non-bank custodial services for investors purchasing certain mutual funds we distribute. In Canada, we offer mutual funds of other companies and segregated funds. Our segregated funds product offerings consist of (1) our legacy segregated funds product, which is underwritten by Primerica Life Canada, and (2) a segregated funds product underwritten by a third-party.
Corporate and Other Distributed Products. The Corporate and Other Distributed Products segment includes net investment income earned on cash, cash equivalents, and our invested asset portfolio. This segment also includes revenues and expenses related to other distributed products, including closed blocks of various insurance products underwritten by NBLIC, prepaid legal services, mortgage originations, and other financial products. These products, except for closed blocks of various insurance products underwritten by NBLIC, are distributed pursuant to distribution arrangements with third-party companies through the independent sales force. Interest expense incurred by the Company is attributed to the Corporate and Other Distributed Products segment.
Business Trends and Conditions
The relative strength and stability of the financial markets and economies in the United States and Canada affect our growth and profitability. Our business is, and we expect will continue to be, influenced by a number of industry-wide and product-specific trends and conditions. Economic conditions, including unemployment levels, inflation and consumer confidence, influence investment and spending decisions by middle-income consumers, who are generally our primary clients. These conditions and factors also impact prospective recruits’ perceptions of the business opportunity that becoming an independent sales representative offers. Consumer spending and borrowing levels affect how consumers evaluate their savings and debt management plans. In addition, investors’
26
perception of the strength of the capital markets and prospective returns impact consumer demand for the investment and savings products we distribute. We believe the economic conditions impacting middle-income households underscore their increasing need for our financial education, products and services to assist them in reaching the long-term goal of becoming financially independent.
The financial and distribution results of our operations in Canada, as reported in U.S. dollars, are affected by changes in the currency exchange rate. As a result, changes in the Canadian dollar exchange rate may significantly affect the results of our business for all amounts translated and reported in U.S. dollars.
The cumulative impact of inflation in recent years has led to an elevated cost of living for middle-income families, which may be adversely impacting persistency and demand for term life insurance policies. In the first half of 2026, policy lapse rates of term life insurance products remained above long-term historical levels and sales of new term life insurance policies were lower versus the comparable period in 2025.
Meanwhile, favorable demographic trends, robust client demand, expanded product offerings, and strong equity market performance in recent periods have provided significant momentum for our Investment and Savings Products (“ISP”) business. Despite volatility in the first half of 2026, positive equity market performance from 2024 through 2025 and into the first half of 2026 has beneficially influenced product sales and client asset values that drive revenue in the ISP segment.
Our ISP segment is expected to benefit over the long term from favorable demographic trends. These include increased demand for income and account value protection from investors in retirement that drive sales for our annuity business, the intergenerational wealth transfer from the silent generation and baby boomers to younger generations which benefits our managed accounts and mutual funds over future decades, and younger generations’ increased interest in equity market investments. Additionally, our high concentration of client assets in retirement accounts and our systematic investment philosophy are beneficial to our business as these accounts tend to have lower redemption rates than the industry. Our long-standing relationship with clients positions us well to drive resilient and faster growth in the ISP segment.
The rise in market interest rates since the COVID-19 pandemic have largely driven the unrealized losses that have accumulated in our investment portfolio from fixed-maturity securities purchased when long-term interest rates were at historical lows. Although market interest rates edged lower at the end of 2025, interest rates increased in the first half of 2026, resulting in higher unrealized losses compared to the end of 2025. We have not recognized losses caused by interest rate volatility in the income statement for securities that we have no present intention to dispose of and we have the ability to hold these investments until maturity or a market price recovery. Elevated interest rates have also led to increases in net investment income as we are able to earn higher returns on our new fixed-maturity securities purchases and cash balances.
The effects of these trends and conditions on our quarterly results are discussed below in the Results of Operations and Financial Condition sections.
Size of the Independent Sales Force.
Our ability to increase the size of the independent sales force (“independent sales representatives” or “independent sales force”) is largely based on the success of the independent sales force’s recruiting efforts as well as training and motivating recruits to get licensed to sell life insurance. We believe that recruitment and licensing levels are important to independent sales force trends, and growth in recruiting and licensing is usually indicative of future growth in the overall size of the independent sales force. Recruiting changes do not always result in commensurate changes in the size of the licensed independent sales force because new recruits may obtain the requisite licenses at rates above or below historical levels.
Details on recruiting and life-licensed independent sales representative activity were as follows:
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| New recruits | 82,346 | 80,924 | 166,563 | 181,791 | |||||||||||
| New life-licensed independent sales representatives | 11,020 | 12,903 | 21,589 | 25,242 |
The number of new recruits increased during the three months ended June 30, 2026 compared to the same period in 2025 due to the timing of special recruiting incentives offered during April 2026. The number of new recruits decreased during the six months ended June 30, 2026 compared to the same period in 2025 likely due to headwinds presented by economic uncertainty during the six months ended June 30, 2026 that were partially offset by the timing of special recruiting incentives during the second quarter of 2026.
New life-licensed independent sales representatives decreased during the three and six months ended June 30, 2026 compared to the same periods in 2025, largely due to the decline in new recruits in recent periods as it typically takes around three months for an independent sales representative to obtain a life insurance license.
27
The size of the life-licensed independent sales force was as follows:
| June 30, 2026 | December 31, 2025 | ||||||
|---|---|---|---|---|---|---|---|
| Life-licensed independent sales representatives, at period end | 148,612 | 151,524 |
The number of life-licensed independent sales representatives as of June 30, 2026 was lower compared to December 31, 2025 as the number of new life-licensed representatives did not keep pace with the level of agent non-renewal and termination activity experienced during the first six months of 2026.
Term Life Insurance Face Amount In-Force and Product Sales.
The changes in the face amount of our in-force book of term life insurance policies were as follows:
[Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A (excerpt)
Latest 10-K Item 7 source: 0001193125-26-082233. The complete FY 2025 MD&A is published at /company/PRI/mda/fy2025/.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to inform the reader about matters affecting the financial condition and results of operations of Primerica, Inc. (the “Parent Company”) and its subsidiaries (collectively, “we”, “us” or the “Company”) for the three-year period ended December 31, 2025. As a result, the following discussion should be read in conjunction with the consolidated financial statements and accompanying notes that are included elsewhere in this report. This discussion contains forward-looking statements that constitute our plans, estimates and beliefs. These forward-looking statements involve numerous risks and uncertainties, including, but not limited to, those discussed in “Item 1A. Risk Factors”. Actual results may differ materially from those contained in any forward-looking statements.
This section generally discusses 2025 and 2024 items and comparisons between 2025 and 2024 results. We also present 2023 items and comparisons between 2024 and 2023 results in this section. However, discussions of comparisons between 2024 and 2023 are not included in this section but rather can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the Securities and Exchange Commission on February 28, 2025 (the “2024 MD&A”).
This MD&A is divided into the following sections:
•
Business Trends and Conditions
•
Factors Affecting Our Results
•
Critical Accounting Estimates
•
Results of Operations
•
Financial Condition
•
Liquidity and Capital Resources
The Company previously reported a Senior Health segment, which consisted of e-TeleQuote Insurance, Inc. and subsidiaries, a marketer of Medicare-related insurance products underwritten by third-party health insurance carriers to eligible Medicare beneficiaries (the “Senior Health business”) that was disposed of as of September 30, 2024, and is now reported in discontinued operations for all periods presented. Refer to Note 2 (Discontinued Operations) to our consolidated financial statements included elsewhere in this report for further details.
Business Trends and Conditions
The relative strength and stability of the financial markets and economies in the United States and Canada affect our growth and profitability. Our business is, and we expect will continue to be, influenced by a number of industry-wide and product-specific trends and conditions. Economic conditions, including unemployment levels, inflation and consumer confidence, influence investment and spending decisions by middle-income consumers, who are generally our primary clients. These conditions and factors also impact prospective recruits’ perceptions of the business opportunity that becoming an independent sales representative offers. Consumer spending and borrowing levels affect how consumers evaluate their savings and debt management plans. In addition, equity market returns and interest rates impact consumer demand for the investment and savings products we distribute. Our customers’ perception of the strength of the capital markets may also influence their decisions to invest in the investment and savings products we distribute. We believe the economic conditions impacting middle-income households underscore their increasing need for our financial education, products and services to assist them in reaching the long-term goal of becoming financially independent.
The financial and distribution results of our operations in Canada, as reported in U.S. dollars, are affected by changes in the currency exchange rate. As a result, changes in the Canadian dollar exchange rate may significantly affect the results of our business for all amounts translated and reported in U.S. dollars.
The cumulative impact of inflation in recent years has led to an elevated cost of living for middle-income families, which we believe has adversely impacted persistency for term life insurance policies. Policy lapse rates of term life insurance products remained above long-term historical levels in 2025 but have been steady in the aggregate of all policy durations compared to the prior year. In addition, continued economic uncertainty in 2025 has had an impact on consumer behavior. The continuation of these cost of living pressures as well as economic uncertainty could adversely impact demand for our products.
Meanwhile, strong equity market performance in recent periods, favorable demographic trends, and expanded product offerings have provided significant momentum for our Investment and Savings Products business. Positive equity market performance in 2023 through 2025 has beneficially influenced product sales and client asset values that drive revenue in the Investment and Savings Products segment. In addition, demand for our investment and savings products has been positively impacted by favorable demographic trends as a generation of clients approaching retirement seek annuity solutions that provide income stability and protection, as well as by increased interest in the investment advisory services and broader product offerings through our managed accounts program.
45
The rise in market interest rates in 2022 and further rate increases in 2023 have largely driven the unrealized losses that have accumulated in our investment portfolio, although these unrealized losses have declined as interest rates edged lower in 2025. We have not recognized losses caused by interest rate volatility in the income statement for securities where we have no present intention to dispose of them and we have the ability to hold these investments until maturity or a market price recovery. Elevated interest rates have also led to increases in net investment income as we are able to earn higher returns on our new debt securities purchases and cash balances.
The effects of these trends and conditions are discussed below, in the Results of Operations and Financial Condition sections.
Size of the Independent Sales Force. Our ability to increase the size of the independent sales force (“independent sales representatives” or “independent sales force”) is largely based on the success of the independent sales force’s recruiting efforts as well as training and motivating recruits to get licensed to sell life insurance. We believe that recruitment and licensing levels are important to independent sales force trends, and growth in recruiting and licensing is usually indicative of future growth in the overall size of the independent sales force. Recruiting changes do not always result in commensurate changes in the size of the licensed independent sales force because new recruits may obtain the requisite licenses at rates above or below historical levels.
Details on recruiting and life-licensed independent sales representative activity were as follows:
| Year ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2023 | |||||||||
| New recruits | 358,316 | 445,425 | 361,925 | ||||||||
| New life-licensed independent sales representatives | 48,722 | 56,320 | 49,096 | ||||||||
| Life-licensed independent sales representatives, at period end | 151,524 | 151,611 | 141,572 |
The number of new recruits decreased in 2025 compared to 2024, partly driven by the comparison to 2024, which included exceptionally strong activity, but the number of new recruits in 2025 remains in line with historical activity. Approximately 81,000 individuals were recruited as a result of special incentives that were in place following our biennial convention in the third quarter of 2024.
New life-licensed independent sales representatives decreased in 2025 compared to 2024 likely influenced by the same year-over-year dynamics that impacted the decline in number of new recruits. Despite the year-over-year decline, the number of new life-licensed representatives in 2025 remained comparable to historical levels.
The number of life-licensed independent sales representatives remained relatively flat during 2025 compared to 2024 as agent licensing activity was consistent with agent non-renewals.
Term Life Insurance Product Sales and Face Amount In Force. The average number of life-licensed independent sales representatives and the number of term life insurance policies issued, as well as the average monthly rate of new policies issued per life-licensed independent sales representative, were as follows:
| Year ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2023 | |||||||||
| Average number of life-licensed independent sales representatives | 152,117 | 145,975 | 137,760 | ||||||||
| Number of new policies issued | 331,787 | 370,396 | 358,860 | ||||||||
| Average monthly rate of new policies issued per life-licensed independent sales representative | 0.18 | 0.21 | 0.22 |
The average number of life-licensed independent sales representatives increased in 2025 compared to 2024 as a result of the cumulative impact of strong recruiting and licensing activity throughout 2024 that drove higher independent sales force counts at the beginning of and throughout 2025 compared to 2024.
New policies issued decreased in 2025 compared to 2024. Factors that may have contributed to the decline include economic uncertainty among middle income households and challenging comparisons to the outsized life policy sales production noted in the prior year.
Productivity in 2025 measured by the average monthly rate of new policies issued per life-licensed independent sales representative decreased from 2024. The combination of lower life insurance policy sales as discussed above and growth in the size of the independent sales force since the beginning of 2024 contributed to lower productivity.
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The changes in the face amount of our in-force book of term life insurance policies were as follows:
| Year ended December 31, | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | % of beginning balance | 2024 | % of beginning balance | 2023 | % of beginning balance | |||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||
| Face amount in-force, beginning of period | $ | 953,583 | $ | 944,609 | $ | 916,808 | ||||||||||||||||||
| Net change in face amount: | ||||||||||||||||||||||||
| Issued face amount | 111,882 | 12 | % | 122,233 | 13 | % | 119,102 | 13 | % | |||||||||||||||
| Terminations | (103,104 | ) | (11 | )% | (103,872 | ) | (11 | )% | (94,230 | ) | (10 | )% | ||||||||||||
| Foreign currency | 5,251 | * | (9,387 | ) | * | 2,929 | * | |||||||||||||||||
| Net change in face amount | 14,029 | 1 | % | 8,974 | * | 27,801 | 3 | % | ||||||||||||||||
| Face amount in-force, end of period | $ | 967,612 | $ | 953,583 | $ | 944,609 |
* Less than 1%.
The face amount of term life insurance policies in-force increased from 2024 to 2025 as the face amount issued continued to exceed the face amount terminated. Issued face amount decreased during 2025 compared to 2024 primarily due to the decrease in the number of new term life insurance policies issued as discussed above. Policy terminations remained relatively flat during 2025 compared to 2024. During 2025, the strengthening of the Canadian dollar relative to the U.S. dollar contributed to the increase in face amount.
Our average issued face amount per new policy was approximately $252,900 in 2025, down slightly compared to $255,200 in 2024.
Investment and Savings Product Sales, Asset Values and Accounts/Positions. Investment and savings product sales were as follows:
[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]
MD&A history
Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.