Primerica, Inc.

Greetings and welcome to the Primerica third 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, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Nicole Russell, Senior Vice President, Investor Relations. Thank you. You may begin.

Thank you, Daryl, and good morning, everyone. Welcome to Primerica's third quarter earnings call. A copy of our press release issued last night, along with other materials relevant to today's call, are posted on the investor relations section of our website. Joining our call today are Chief Executive Officer Glenn Williams and our Chief Financial Officer Tracy Tam. 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 new 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 will provide additional insight into the company's financial results. Reconciliation 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 today. Primerica reported another strong quarter with solid distribution momentum and double-digit growth in adjusted operating earnings. The appeal of our entrepreneurial business opportunity continues to resonate supporting our ability to grow distribution and serve more middle-income families in the US and Canada. We continue to benefit from favorable equity markets that bolster investor confidence and drive strong results in our investment and savings business. While a revision to our actuarial assumptions added $23 million to pre-tax income in the current quarter. In total, adjusted net operating income was $193 million, up 21%, compared to the prior year period, while diluted adjusted operating earnings per share of $5.68 increased 28%. Strong cash flow generation enabled us to repurchase $129 million of our common stock during the quarter and pay $31 million in regular dividends. Year to date, Primerica has returned a total of $463 million to stockholders through a combination of share repurchases and dividends. Let's review our distribution results. The additional momentum that was generated by the July convention and our field leaders' ability to effectively communicate the attractiveness of Primerica's opportunity boosted our recruiting efforts. During the closing night of our convention, we announced a promotion that discounted our licensing fee for the remainder of July and the beginning of August. This initiative increased our already strong trajectory and helped us recruit over 142,000 individuals during the quarter. During the quarter, we licensed 14,349 individuals, a 17% increase compared to the prior year period. We attribute this growth to record recruiting combined with the improvements we've made in our licensing focus and process over the last few years. The sustained success in recruiting and licensing has fueled a 7% increase in the size of our life license sales force year over year to a total of 148,890 life license reps as of September 30, 2024, and for the first time ever, to a milestone of over 150,000 licensed reps at the end of October. We project ending 2024 with full year growth in the size of our life license sales force of 5% is how recruiting historically drives strong licensing for several months. Let's turn next to our term life business. We issued 93,377 new term life policies during the quarter, a 5% increase compared to the prior year period, and added $31 billion of new term life protection for middle income families. Year over year, productivity remained unchanged at an average monthly rate of 0.21 new policies issued per life license rep. After factoring for the continued impact of cost of living pressures on middle-income families and strong sales volume in last year's fourth quarter, we continue to expect full-year life sales to grow around 3%. Looking at our investment and savings product business, sales continue to benefit from strong equity market returns, which serve as a key driver. This positive trend is complemented by improvements in our product offerings, including more portfolio options in our managed accounts, and attractive variable annuity choices. Additionally, our sales force in Canada is gaining experience with the new mutual fund product set introduced there last year. Sales of $2.9 billion during the quarter increased 34% compared to the prior year period, outpacing expectations. We saw solid year-over-year growth across all major product lines, including a 42% increase in variable annuity sales and a 23% increase in combined U.S. and Canada mutual fund sales. Sales of managed accounts were also robust as clients took advantage of the wider fund options available on the new custodial platform that was launched in the third quarter of 2023. Preliminary results in October show continued sales strength. As a result, we're raising our 2024 ISP sales forecast to a range of 22% to 25%. Client asset values have again benefited from strong equity market appreciation, ending the quarter at $111 billion of 26% year-over-year. Net flows remain positive at $444 million during the quarter. In Canada, we recently entered into a new distribution agreement with Canada Life, which will give our reps access to a curated selection of Canada Life segregated funds. This not only expands product choice, but it also provides additional options to help address the needs of underserved Canadian families. The new funds are expected to be rolled out to our reps in phases beginning next year. Sales volume in our mortgage business has also started to improve. This business is well positioned to help middle income families obtain a new mortgage or refinance to consolidate consumer debt. We're licensed to do business in 33 states through more than 3,000 licensed representatives. Year to date, we've closed nearly $300 million in U.S. mortgage volume, up around 25% compared to the first nine months of 2023. We have great lending partners, and we are optimistic about the long-term potential for this business. We also have a mortgage referral program in Canada, bringing refinancing opportunities and new mortgages to our clients north of the border. We look to the future with confidence because of the important role Primerica plays in the lives of middle-income families. Every day, we provide our clients with much-needed financial education and compel them to take action. I'm proud of what our sales force has accomplished and grateful to my teammates at the home office who support the field and their efforts. We remain committed to our mission as we grow distribution to best serve our clients. With that, I'll hand it over to Tracy.