| Segment Information |
(3) 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 2025 Annual Report. Income (loss) before income taxes by segment, including significant expense categories, was as follows:
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Three months ended June 30, |
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Six months ended June 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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(In thousands) |
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Term Life Insurance segment: |
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Total revenues |
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$ |
443,605 |
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$ |
441,834 |
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$ |
908,240 |
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$ |
899,676 |
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Benefits and expenses: |
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Benefits and claims |
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144,174 |
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|
148,725 |
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311,425 |
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319,968 |
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Future policy benefits remeasurement (gain) loss |
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(4,858 |
) |
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(5,743 |
) |
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(12,422 |
) |
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(9,145 |
) |
Amortization of DAC |
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83,567 |
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78,386 |
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166,234 |
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|
155,308 |
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Insurance expenses |
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70,020 |
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63,216 |
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|
135,399 |
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126,861 |
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Insurance commissions |
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2,223 |
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2,238 |
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4,265 |
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|
4,887 |
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Total benefits and expenses |
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295,126 |
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286,822 |
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604,901 |
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|
597,879 |
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Income before income taxes |
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$ |
148,479 |
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$ |
155,012 |
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$ |
303,339 |
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$ |
301,797 |
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Three months ended June 30, |
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Six months ended June 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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(In thousands) |
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Investment and Savings Products segment: |
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Total revenues |
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$ |
360,518 |
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$ |
298,298 |
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$ |
711,164 |
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$ |
589,109 |
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Expenses: |
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Amortization of DAC |
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1,304 |
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1,368 |
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2,638 |
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2,705 |
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Insurance commissions |
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3,450 |
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3,468 |
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6,907 |
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6,745 |
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Sales commissions: |
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Sales-based |
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95,816 |
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82,935 |
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190,984 |
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160,202 |
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Asset-based |
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100,677 |
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78,010 |
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196,037 |
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154,256 |
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Other operating expenses: |
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Fees based on client asset values |
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14,493 |
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11,404 |
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27,780 |
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22,319 |
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Fees based on fee-generating positions |
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10,553 |
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11,015 |
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21,674 |
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23,425 |
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Other expenses |
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30,010 |
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30,677 |
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60,029 |
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|
58,766 |
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Total expenses |
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256,303 |
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218,877 |
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506,049 |
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|
428,418 |
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Income before income taxes |
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$ |
104,215 |
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$ |
79,421 |
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$ |
205,115 |
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$ |
160,691 |
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Three months ended June 30, |
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Six months ended June 30, |
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|
2026 |
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|
2025 |
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|
2026 |
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|
2025 |
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(In thousands) |
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Corporate and Other Distributed Products segment: |
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Total revenues |
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$ |
60,944 |
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$ |
53,202 |
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$ |
118,355 |
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$ |
109,392 |
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Benefits and expenses: |
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Benefits and claims |
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3,154 |
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3,769 |
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7,157 |
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|
7,387 |
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Future policy benefits remeasurement (gain) loss |
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(180 |
) |
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(152 |
) |
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7 |
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(23 |
) |
Amortization of DAC |
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|
257 |
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289 |
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|
516 |
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|
579 |
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Insurance expenses |
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1,139 |
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1,146 |
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2,327 |
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2,307 |
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Insurance commissions |
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105 |
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|
45 |
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224 |
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|
243 |
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Sales commissions |
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5,431 |
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5,346 |
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10,113 |
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9,951 |
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Interest expense |
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5,833 |
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6,000 |
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11,693 |
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|
12,005 |
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Other operating expenses |
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39,680 |
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36,695 |
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87,135 |
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83,619 |
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Total benefits and expenses |
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55,419 |
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53,138 |
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119,172 |
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116,068 |
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Income (loss) before income taxes |
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$ |
5,525 |
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$ |
64 |
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$ |
(817 |
) |
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$ |
(6,676 |
) |
The following table reconciles segment revenues to total revenues and segment income (loss) before income taxes to total income before income taxes in the unaudited condensed consolidated statements of income:
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Three months ended June 30, |
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|
Six months ended June 30, |
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|
2026 |
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|
2025 |
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|
2026 |
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|
2025 |
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(In thousands) |
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Revenues: |
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Term Life Insurance segment |
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$ |
443,605 |
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$ |
441,834 |
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$ |
908,240 |
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$ |
899,676 |
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Investment and Savings Products segment |
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360,518 |
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298,298 |
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711,164 |
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|
589,109 |
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Corporate and Other Distributed Products segment |
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60,944 |
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53,202 |
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118,355 |
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109,392 |
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Total revenues |
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$ |
865,067 |
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$ |
793,334 |
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$ |
1,737,759 |
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$ |
1,598,177 |
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Income (loss) before income taxes: |
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Term Life Insurance segment |
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$ |
148,479 |
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$ |
155,012 |
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$ |
303,339 |
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$ |
301,797 |
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Investment and Savings Products segment |
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104,215 |
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79,421 |
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205,115 |
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|
160,691 |
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Corporate and Other Distributed Products segment |
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5,525 |
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64 |
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(817 |
) |
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(6,676 |
) |
Total income before income taxes |
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$ |
258,219 |
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$ |
234,497 |
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$ |
507,637 |
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$ |
455,812 |
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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. These expenses consist 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, shared services 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.
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