Fundamentals snapshot
PRI · NYQ · Financial Services · Insurance - Life
Current price
$281.09
52-week range
$230.09 - $327.28
Market cap
$8.65B
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net debt $1.17B. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Primerica helps people who aren't super wealthy manage their money by selling them life insurance and investment products like mutual funds through a sales team. This business makes money mainly from the fees and commissions on these financial products, which is important because it means their income can be predictable if people keep their accounts open.
Primerica's story began in 1977 when Arthur L. Williams Jr. founded it as A.L. Williams. [2] His vision was to challenge the traditional life insurance industry by advocating for term life insurance and encouraging people to invest the difference in cost savings. [2, 9] This "Buy Term and Invest the Difference" philosophy became a cornerstone of the company's strategy. [5, 9] Over the years, the company went through various ownership changes, becoming part of the Primerica and Travelers organization, which later merged into Citigroup. [2, 4] In 2010, Primerica re-established itself as an independent, publicly traded company. [2, 9] Today, Primerica is headquartered in Duluth, Georgia, and focuses on serving middle-income households in the United States and Canada. [1, 4, 6]
Primerica is a financial services company that aims to help middle-income families prepare for a more secure financial future. [6] It provides financial education and access to a range of products designed to help families protect their income, reduce debt, plan for the unexpected, and invest for the future. [6] The company operates through a large network of licensed sales representatives who work directly with clients. [1, 6] Primerica's core philosophy revolves around offering affordable solutions, with a strong emphasis on term life insurance and investment products. [5, 7]
This is Primerica's foundational business. [2, 5] The company underwrites and distributes term life insurance policies, which provide coverage for a specific period. [3, 7] Primerica believes term life insurance offers the most income protection at an affordable price, making it a key product for families needing to safeguard their income. [5] It is one of the largest issuers of term life insurance in North America, insuring millions of people. [5] This segment generates revenue through the premiums paid by policyholders. [7]
This segment focuses on helping clients save for the future. [5, 7] Primerica offers a variety of investment products, including mutual funds, managed investments, annuities, and retirement savings plans. [3, 5] These products are distributed through affiliated investment companies, and clients can start saving with relatively small monthly contributions. [3, 5] Revenue in this segment comes from commissions, asset-based fees, and administrative fees tied to the value of client assets and account activity. [7]
This segment encompasses a range of other financial services and products offered by Primerica. [3, 7] It includes services like mortgage loans, prepaid legal services, identity theft defense, and referrals for auto and homeowners' insurance. [1, 3] Primerica also offers senior health products, particularly Medicare-related coverage, acquired through its acquisition of e-Telequote. [1, 4] This segment diversifies Primerica's offerings and provides additional revenue streams beyond its core insurance and investment businesses. [3, 7]
Primerica's current strategy centers on expanding its reach and deepening its client relationships within the middle-income market. [1] Management is focused on growing its sales force by recruiting and activating more representatives, as this field force is considered the company's defining asset. [1, 4] A key priority is to increase sales of term life insurance while also expanding the adoption of investment and savings products. [1] The company is also investing in technology to improve the efficiency of its representatives and enhance the client experience. [1, 8] By focusing on these areas, Primerica aims to deepen its protection business and grow its recurring revenue streams from investment products. [1]
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net debt $1.2B. Interest coverage 41.7x.
Primerica, Inc.'s profit covers its interest bill about 41.7 times over. which is stronger than every peer shown here.
Total debt $1.80B Interest coverage 41.68x This is the baseline the peer rows are being compared against.
Total debt $3.43B Interest coverage 11.17x -73% vs PRI Carries about 3.7x less debt cushion than PRI.
Total debt $7.24B Interest coverage 6.89x -83% vs PRI Carries about 6.0x less debt cushion than PRI.
Total debt $3.91B Interest coverage 14.82x -64% vs PRI Carries about 2.8x less debt cushion than PRI.
Total debt $4.81B Interest coverage 2.27x -95% vs PRI Carries about 18.4x less debt cushion than PRI.
Total debt $4.58B Interest coverage 4.39x -89% vs PRI Carries about 9.5x less debt cushion than PRI.
What you should know
The numbers
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Valuation
Profitability
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Growth
Cash flow
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What you should know