Primerica, Inc.

Welcome to Primerica's 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. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. 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 Primerica's 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 Form 10-K filing, as may be modified by subsequent Forms 10-Q, for a list of risks and uncertainties that could cause actual results to materially differ from those expressed or implied. We will also reference certain non-GAAP measures, which we believe provide additional insight into the company's operations. Reconciliations of non-GAAP measures to their respective GAAP numbers are included at the end of our earnings press release and are available on our investor relations website. I would now like to turn the call over to Glenn.

Thank you, Nicole, and thanks everyone for joining us this morning. Primerica reported another strong quarter with solid distribution momentum and double-digit adjusted operating earnings growth. The appeal of our entrepreneurial business opportunity continues to resonate, supporting our ability to grow distribution. Primerica remains well-positioned to serve more middle-income families in the U.S. and Canada. Let's start with the highlights of our financial results. Adjusted net operating income of $163 million increased 12% compared to the prior year period, while diluted adjusted operating income per share of $4.71 increased 18%. These results reflect the stability and continued growth in term life premiums and very strong sales in our investment and savings product segment. During the second quarter, we repurchased $143 million of our common stock and paid $26 million in regular dividends. During the first two quarters of 2024, Primerica has returned a total of $304 million to stockholders through a combination of share repurchases and dividends. Looking more closely at our distribution results, During the second quarter, we recruited over 96,000 individuals, a 12% increase compared to the prior year period. We also saw a 14% increase in licensing, with 14,402 WIPs obtaining a new life license, helping propel our sales force to 145,789 life license representatives as of June 30, 2024, up 6% year over year. Leveraging the excitement of our convention, We discounted our life licensing fee during the last half of July and beginning of August to maximize momentum in recruiting and licensing. We have a proven process in place to keep new recruits engaged and help them prepare for their licensing exam. Given our continued progress, we now anticipate full-year growth in the size of our sales force to be around 5% during 2024. Turning next to our sales results, during the second quarter, we issued over 100,000 new term life policies, a 4% increase year over year. These newly issued policies added $33 billion of coverage for middle-income families, resulting in $951 billion of total enforced protection for our clients at quarter end. Productivity was at the higher end of our historical range, with a monthly average of 0.23 policies issued per life license rep. reflecting the seasonal favorability of the second quarter. Taking a conservative view for the remainder of the year compared to the strong life sales we saw in the second half of last year, we expect four-year growth in the number of policies issued to be in the low single-digit range. Investment product sales have again outpaced our forecast. Sales of $3.1 billion during the quarter increased 29% compared to the same period in 2023. We continue to see solid demand for products across the board, including U.S. and Canadian mutual funds, annuities, and managed accounts. Early results for the month of July show continued sales strength. Barring an unexpected change in investor sentiment, we believe full-year sales will go around 15% in 2024. Client asset values continue to benefit from strong equity market appreciation, ending the quarter at $105 billion of 15% year-over-year. Net flows remain positive at $423 million during the quarter. Since our May earnings call, we've made the decision to exit the senior health market after it became apparent that the business does not have a clear path toward anticipated profitability within an acceptable timeframe. Over the last several months, we've determined that the increasingly challenging senior health distribution market, including, for example, increasing policy churn, and the regulatory uncertainty facing this industry would make it difficult for us to achieve the near-term stockholder value that had been anticipated. Tracy will expand on the financial details related to the exit in just a moment. Let me end my remarks this morning with a report on the impact of our convention, which took place at the Mercedes-Benz Stadium in Atlanta between July 10 and 13. With nearly 40,000 attendees, this year's event was the ideal platform from which to cast our vision for the future. Our message was simple yet powerful. Focus on growth to serve more middle income families. Over four days, attendees were able to engage with our business partners and home office staff in our exhibit hall to obtain product information and learn how we can support their businesses. By attending our four general sessions and numerous workshops, participants could hone their skills, be recognized for their outstanding achievements, and be challenged to grow their businesses. Looking ahead, I'm optimistic about our ability to continue our growth. The need for protection and savings solutions continues to increase among underserved middle income households. The reach of our sales force uniquely positions Primerica to serve these families. Now, I'll turn it over to Tracy.