Primerica, Inc.

Greetings and welcome to Primerica's first quarter 2025 earnings conference call. 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. Please note this conference is being recorded. I will now turn the conference over to your host, Nicole Russell, SVP Investor Relations. Thank you. You may begin.

Thank you, Operator, and good morning, everyone. Welcome to Primerica's first quarter earnings call. A copy of our earnings 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 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 new information and refer you to our most recent Form 10-K filing as may be modified by subsequent Form 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 financial results. Reconciliations of non-GAAP measures to their respective GAAP numbers are included in our earnings press release. I would now like to turn the call over to Glenn.

Thank you, Nicole, and good morning, everyone. Thanks for joining us. In the first quarter of 2025, Primerica delivered strong financial results despite headwinds from external factors including sustained cost of living pressures and heightened economic uncertainty during the quarter. Starting with a snapshot of financial results, adjusted net operating income for the quarter was $168 million of 14% year-over-year, while diluted adjusted operating EPS increased 20% to $5.02. These results reflect the continued strength within our investment and savings product business and the steady contribution from our term life business during the first quarter of 2025. The predictability of our business allowed us to return a total of $153 million to stockholders during the quarter through a combination of $118 million in share repurchases and $35 million in regular dividends. The strength of our business model, our commitment to the sales force, and the growing need for the financial education provided by our independent sales representatives resulted in record success during 2024. Following an outstanding year, we entered 2025 with solid business fundamentals and a clear understanding of the financial pressures affecting middle-income families. The recent increase in economic uncertainty has impacted our marketplace, pressuring recruiting and term life insurance sales during the first quarter. And since April, we're starting to see some resistance to investment sales momentum. Looking at distribution, we recruited a total of 100,867 individuals during the first quarter, representing a 9% decline year over year. Similarly, new life licenses declined 5% versus the prior year period. Both recruiting and licensing activity were softer than expected, as uncertainty appears to be contributing to greater caution in decision making. That said, it's important to note that both recruiting and licensing numbers are historically strong and continue to fuel growth in our sales force. The total number of life license representatives grew slightly since year end, and is up 7% compared to March 2024. We remain committed to growing our sales force and continue to expect around 3% growth during 2025. Looking at term life results, we issued 86,415 new term life policies during the first quarter, representing $28 billion in new term life protection for our clients, which was in line with prior year levels. Productivity at .19 policies per rep was just below our historical range. We believe that today's challenging environment is particularly difficult for representatives to navigate, especially those with less sales experience. Considering these dynamics, we expect 2025 full-year policies issued to be broadly in line with 2024 levels. At quarter end, we have a total of $957 billion of protection in place for middle-income families, and we're pleased to see that persistency has remained stable again this quarter. Turning next to the ISP segment, total sales during the quarter were $3.6 billion, up 28% year-over-year, driven by strong demand across the board, including US and Canadian mutual funds, variable annuities, and managed accounts. Net inflows for the quarter were very strong at $839 million versus $274 million in the prior year period. Client asset values ended the quarter at $110 billion, up 6% year-over-year, and down 2% during the first three months of 2025 due to negative market performance. Our securities licensed sales force has done a good job keeping clients focused on their long-term goals and the importance of staying invested despite heightened market volatility. Preliminary sales results in April, while positive, are beginning to reflect the effects of continued market volatility and broader economic uncertainty. Considering our strong outperformance during the first quarter, we continue to expect full-year sales growth in the mid to high single-digit range during 2025. Our mortgage business showed strong sales growth in both the U.S. and Canada during the first quarter of 2025. In the U.S., we had $93.5 million of closed loans of 31%. We now have 3,269 licensed mortgage loan originators in 33 states. Our referral program in Canada had $43.3 million of closed loans, up 78%. While both programs are still relatively small, we believe their importance will continue to grow over time. The resilience of our business model, demonstrated over nearly 50 years, combined with our unwavering commitment to help middle-income families achieve financial independence, are the key drivers of our success. There will always be a need for financial education among underserved families, a group that is often overlooked by the broader financial services industry. This reality underscores the importance of our mission and the opportunity that lies ahead. We have confidence in our model and in our sales force's ability to continue meeting the needs of the communities we serve. With that, I'll hand it over to Tracy for the financial details.