Primerica, Inc.

Greetings and welcome to Primarica's second quarter 2025 earnings webcast. At this time all participants are in a listen-only mode. A 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 that this conference is being recorded. I will now turn the conference over to your host, Nicole Russell, Head of Investor Relations. Thank you. You may begin.

Thank you, operator, and good morning, everyone. Welcome to Primarica's second 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 Chief Executive Officer Glenn Williams and our Chief Financial Officer Tracy Tam. Our comments this morning will contain forward-looking statements in accordance with the safe harbor provision of the Securities Litigation Reform Act. We assume no obligations to update these statements to retweak new information and refer you to our most recent Form 10-K filing, as may be be modified by subsequent Forms 10-Q for a list of risks and uncertainties that could cause actual results to materially differ from those that are expressed or implied. We also reference certain non-GAAP measures, which we believe provide additional insight into the company's financial results. Reconciliation of non-GAAP results 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 thanks everyone for joining us. Primarica delivered another strong quarter with results that reflect the consistent performance of our business. Despite continued economic and government policy uncertainty, our investment clients remain committed to their long-term savings goals, our life insurance clients recognize the importance of protecting their income, and our business opportunity is attracting a significant number of recruits. Our sales force plays a critical role in delivering protection and investment solutions to middle-income families when they need it most. As we sometimes see, our two main product lines respond differently to changes in the business environment, creating a good balance in our business model and financial results. Starting with our financial results, adjusted net operating income was $180 million during the second quarter of 2025, up 6% -over-year, while diluted adjusted operating EPS increased 10% to $5.46. These results reflect the continued strength within our investment savings products business and a steady contribution from our term life business. We continue to generate solid earnings growth and maintain our commitment to returning capital to stockholders. During the quarter, we returned a total of $163 million to stockholders through a combination of $129 million in share repurchases and $34 million in regular dividends. Looking at distribution, we recruited over 80,000 individuals during the second quarter and licensed nearly 13,000 new representatives, down 10% from the second quarter record set last year. This level of activity continues to fuel growth in our sales force. We ended the quarter with 152,592 life license representatives, up 5% compared to June 2024. Recruiting in the third quarter also started strong. Using a recruiting incentive which has been effective in the past, we added over 50,000 new recruits in the month of July. We remain committed to growing our sales force and expect to grow between 2% and 3% in the full year of 2025. Turning to our sales results, we issued 89,850 new term life insurance policies during the second quarter and put in place over $30 billion in new term life protection for our clients, bringing our total face amount in force to a record $968 billion. On a -over-year basis, the number of new life insurance policies and face amount issued declined 11% and 9% respectively. We believe the decline reflects a combination of continued cost of living pressures and ongoing uncertainty compounded by comparison to exceptionally strong results in the prior year period. Productivity at .2 policies per life insurance license representative per month was within our historical range of .20 to .24. Considering the stronger than expected headwinds, we're now projecting the total number of new life policies issued to decline around 5% in 2025 compared to full year 2024. Turning next to the ISP segment, results were once again stronger than anticipated with total sales during the quarter at 15% to $3.5 billion. We continue to see strong demand for variable annuities and managed accounts while U.S. and Canadian mutual funds grew at a more modest pace. Net inflows for the quarter were $487 million versus $227 million in the prior year period and client asset values ended the quarter at $120 billion of 14% -over-year. We see more clients focusing on saving for retirement, driving higher transaction volume and increased average sales size. This trend has the potential to continue based on the large number of individuals in the baby boomer and Gen X populations who are approaching retirement age. Given our momentum in the first half of 2025 and strong sales in July, we expect full year ISP sales growth to be more than 10%. During the quarter, we discovered a need to correct our methodology for calculating outflows and market value for Canadian mutual fund assets included in our consolidated client asset roll forward statistical data. We updated the roll forward table in our financial supplement to provide investors with restated historical statistics. This correction had no impact on our financial statements, ISP product sales, nor the average or ending client asset values during the relevant periods. Net flows were impacted but remained positive. Our mortgage business showed solid -over-year growth in both the U.S. and Canada during the second quarter of 2025. In the U.S., we had $133 million of closed loan volume of 33% -over-year. We are licensed to do business in 35 states through a total of nearly 3,400 licensed mortgage loan originators. Our referral program in Canada had $45 million U.S. dollars of closed loan volume of 30% from a year ago. While mortgages currently represent a relatively small portion of our business, they provide our clients with a valuable financial tool while also creating a diversified income stream for our mortgage licensed sales force. The unique characteristics of each of our product lines can cause them to respond differently to changing business conditions. This quarter highlighted their complementary nature with record ISP sales helping to offset the headwinds in life sales. Despite the pressure on new life sales, the size and stability of our life business continues to provide consistent earnings, even in an uncertain environment. We remain well positioned to deliver long-term value for our clients, our field, and our stockholders. With that, I'll hand it over to Tracy for the financial results.