v3.25.2
Segment and Geographical Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment and Geographical Information

(4) Segment Information

Segments. We have two primary operating segments — Term Life Insurance and Investment and Savings Products. We also have a Corporate and Other Distributed Products segment. For more information on our segments, see Note 4 (Segment and Geographical Information) to our consolidated financial statements in our 2024 Annual Report.

Income (loss) before income taxes by segment, including significant expense categories, was as follows:

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

(In thousands)

 

Term Life Insurance segment:

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

441,834

 

 

$

426,944

 

 

$

899,676

 

 

$

867,357

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and claims

 

 

148,725

 

 

 

146,268

 

 

 

319,968

 

 

 

310,115

 

Future policy benefits remeasurement (gain) loss

 

 

(5,743

)

 

 

(4,280

)

 

 

(9,145

)

 

 

(4,600

)

Amortization of DAC

 

 

78,386

 

 

 

71,916

 

 

 

155,308

 

 

 

142,407

 

Insurance expenses

 

 

63,216

 

 

 

61,476

 

 

 

126,861

 

 

 

123,454

 

Insurance commissions

 

 

2,238

 

 

 

3,785

 

 

 

4,887

 

 

 

9,833

 

Total benefits and expenses

 

 

286,822

 

 

 

279,165

 

 

 

597,879

 

 

 

581,209

 

Income before income taxes

 

$

155,012

 

 

$

147,779

 

 

$

301,797

 

 

$

286,148

 

 

 

 

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

(In thousands)

 

Investment and Savings Products segment:

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

298,298

 

 

$

260,906

 

 

$

589,109

 

 

$

504,622

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of DAC

 

 

1,368

 

 

 

1,478

 

 

 

2,705

 

 

 

2,679

 

Insurance commissions

 

 

3,468

 

 

 

3,343

 

 

 

6,745

 

 

 

6,743

 

Sales commissions:

 

 

 

 

 

 

 

 

 

 

 

 

Sales-based

 

 

82,935

 

 

 

70,509

 

 

 

160,202

 

 

 

133,322

 

Asset-based

 

 

78,010

 

 

 

66,525

 

 

 

154,256

 

 

 

130,733

 

Other operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Fees based on client asset values

 

 

11,404

 

 

 

9,548

 

 

 

22,319

 

 

 

18,890

 

Fees based on fee-generating positions

 

 

11,015

 

 

 

10,483

 

 

 

23,425

 

 

 

21,909

 

Other expenses

 

 

30,677

 

 

 

24,238

 

 

 

58,766

 

 

 

50,001

 

Total expenses

 

 

218,877

 

 

 

186,124

 

 

 

428,418

 

 

 

364,277

 

Income before income taxes

 

$

79,421

 

 

$

74,782

 

 

$

160,691

 

 

$

140,345

 

 

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

(In thousands)

 

Corporate and Other Distributed Products segment:

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

53,202

 

 

$

103,105

 

 

$

109,392

 

 

$

154,925

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and claims

 

 

3,769

 

 

 

3,762

 

 

 

7,387

 

 

 

6,236

 

Future policy benefits remeasurement (gain) loss

 

 

(152

)

 

 

(49

)

 

 

(23

)

 

 

325

 

Amortization of DAC

 

 

289

 

 

 

249

 

 

 

579

 

 

 

606

 

Insurance expenses

 

 

1,146

 

 

 

1,209

 

 

 

2,307

 

 

 

2,380

 

Insurance commissions

 

 

45

 

 

 

271

 

 

 

243

 

 

 

457

 

Sales commissions

 

 

5,346

 

 

 

5,120

 

 

 

9,951

 

 

 

9,237

 

Interest expense

 

 

6,000

 

 

 

6,099

 

 

 

12,005

 

 

 

12,870

 

Other operating expenses

 

 

36,695

 

 

 

36,236

 

 

 

83,619

 

 

 

83,150

 

Total benefits and expenses

 

 

53,138

 

 

 

52,897

 

 

 

116,068

 

 

 

115,261

 

Income (loss) before income taxes

 

$

64

 

 

$

50,208

 

 

$

(6,676

)

 

$

39,664

 

The following table reconciles segment revenues to total revenues and segment income (loss) before income taxes to total income from continuing operations before income taxes in the unaudited condensed consolidated statements of income:

 

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

(In thousands)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Term Life Insurance segment

 

$

441,834

 

 

$

426,944

 

 

$

899,676

 

 

$

867,357

 

Investment and Savings Products segment

 

 

298,298

 

 

 

260,906

 

 

 

589,109

 

 

 

504,622

 

Corporate and Other Distributed Products segment

 

 

53,202

 

 

 

103,105

 

 

 

109,392

 

 

 

154,925

 

Total revenues

 

$

793,334

 

 

$

790,955

 

 

$

1,598,177

 

 

$

1,526,904

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Term Life Insurance segment

 

$

155,012

 

 

$

147,779

 

 

$

301,797

 

 

$

286,148

 

Investment and Savings Products segment

 

 

79,421

 

 

 

74,782

 

 

 

160,691

 

 

 

140,345

 

Corporate and Other Distributed Products segment

 

 

64

 

 

 

50,208

 

 

 

(6,676

)

 

 

39,664

 

Total income from continuing operations before income taxes

 

$

234,497

 

 

$

272,769

 

 

$

455,812

 

 

$

466,157

 

 

In April 2024, the Company executed agreements providing for the receipt of proceeds from certain claims filed by the Company under a Representation and Warranty insurance policy negotiated and purchased in connection with the acquisition of e-TeleQuote on July 1, 2021. The claims made by the Company involved breaches of certain representations and warranties relating to the pre-acquisition financial statements made by the sellers of e-TeleQuote in connection with the acquisition. The Company recognized a gain during the second quarter of 2024 of $50.0 million, which is equal to the aggregate proceeds received in May 2024 from the third-party insurers under the policy, reflecting the full coverage under the policy. The Company recognized this gain in Corporate and Other Distributed

Products segment revenues as it resulted from a corporate investment decision to purchase the insurance policy. On a consolidated basis, this gain is included in Other, net revenue in the accompanying unaudited condensed consolidated statements of income during the three and six months ended June 30, 2024.

The Company recorded corporate restructuring charges of $0.8 million in the second quarter of 2024 associated with the decision to exit the Senior Health business, which are included in the Corporate and Other Distributed Products segment's Other operating expenses.

Insurance expenses and other operating expenses directly attributable to the Term Life Insurance and Investment and Savings Products segments are recorded directly to the applicable segment. Other operating expenses consists primarily of employee compensation, technology and communications costs, various independent sales force-related costs, non-bank custodial and transfer agent recordkeeping administrative costs, outsourcing and professional fees, and other corporate and administrative fees and expenses. We allocate certain other revenue and operating expenses that are not directly attributable to a specific operating segment using methods expected to reasonably measure the benefit received by each reporting segment. Such methods include recorded usage, revenue distribution, and independent sales force representative distribution. These allocated items include fees charged for access to Primerica Online (“POL”) and costs incurred for technology, independent sales force support, occupancy and other general and administrative costs. Costs that are not directly charged or allocated to our two primary operating segments are included in the Corporate and Other Distributed Products segment.