PRI - Earnings call transcript Q1 2022

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Operator

Good morning, and thank you for attending today’s Primerica’s First Quarter 2022 Earnings Webcast. My name is Austin, and I'll be the moderator for today. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. [Operator instructions]. I’d like to now pass the conference over to our host, Nicole Russell, Head of Investor Relations. ahead. go please Nicole,

Nicole Russell

call, and call. everyone. earnings A materials website. to along Austin, Relations the first of section press to quarter with our today's relevant are earnings copy that posted good you, on Welcome Investor morning, Primerica's release, are Thank of our

questions. Joining call then Glenn Williams; will and our our deliver Chief for we Financial Chief prepared Glenn today Officer, are and will Alison the open Officer, your call remarks, Executive and Alison Rand.

call, our Safe statements list Provisions Reform of our update in accordance not of to Litigation or refer implied. forward-looking that information. We During uncertainties may contain to does reflect some to most comments Securities any company could you with cause Harbor Act. statements duty revise actual recent assume differ the new or The the risks for expressed of from those results and our these a materially to Form XX-K

additional we call website. reference also to to GAAP will We at Relations Glenn. these numbers, are non-GAAP our release, now available are Investor Reconciliations to the their like and provide certain the our on measures respective press included would measures, the which company's operations. of of end I believe turn insight non-GAAP into over

Glenn Williams

model. for our solutions financial Thank the you, of everyone, and ongoing for need Nicole, the and results joining business in Primerica's our the us market thanks, first quarter middle strength reflect

last compared continues levels, to recruiting our unchanged. years. down and business to our business environment remains to elevated We're during their and peaks although that the As response mission remain pre-COVID numbers the from are strong two post-COVID emerge, methods evolving seeing our opportunity

needs and force to once beginning indicate licensing license investments that mission improve both are results, serve slightly above our more tracks, financial pre-COVID on sales Term middle-income yet pull-through And remain important again. families, than XXX,XXX to of is number show different levels. Life our to the Insurance ever. above results for efforts normalizing Our are pushing Results sales

results, the we model As clear. is look more business our of at resilience financial our closely

continue is main Our environment, lines work Senior presents where solid area while needed. more acquired the an deliver Health unknowns to the still of business, results, post-pandemic our business of newly despite

continue Diluted revenues environment, of As are this elevated both first our in equity on in year's investment to sales of experiencing benefit year-over-year, as and to strong to expenses. per compared prepared normalized Slide $X.XX expand a more robust will a of we her transition increased million, elevated temporary we $X.XX Insurance period Term temporarily Health certain due from on expenses. operating X% $XXX overall quarter, in market businesses, adjusted $X.XX, remarks. business, operating operating a core cost X, and Starting income Alison years newly operating our and share last two-plus Life to appreciation. adjusted of fell Senior loss acquired operating trend

were the heavily Throughout incentives Slide maintain Turning nearly XXXX. XXXX remains with used new strong levels, pre-pandemic to quarter individuals versus to recruiting of XXXX, and of joining during Primerica most quite X, first XX,XXX momentum. recruiting

to of Research flexibility the earnings amplified its with performance them our pandemic, last business the a this potential. shifts the is further leaders years, during to of labor our given as independent emerge message, setting confidence recruiting force work the attractiveness more we're often. the the and has from have to of momentum, compelling shifting which Now, Adding incentives. record recruiting use created markets share hours we sales and recruiting message focused in more and model, two

reps in saw including total, slow licensed nearly with start in in individuals new gain added. and new life to licenses life Strength continued January, in the March to drive reps improvements April, quarter, meaningful alone. were XX,XXX during another efforts license X,XXX traction. license In Our starting February a we licensing in March. are X,XXX Despite new

current convention As June activity around full time beginning estimate. recruiting we our in weeks force at of out high the current the event, The licensing we Based the of combined the levels July. two sales we our force and to continue during grow approach beyond on could of field. lull due slightly the supports and and sales we end above the our Post-convention, recruiting trends, the year momentum to ability licensing X% believe during size anticipate of prior a reps. to the activity July, grow the expect XXX,XXX

to continue XX,XXX X, products, more compares protection we XXXX period. favorably pre-pandemic which quarter, with for during Turning the the to see first solid than demand Slide issued policies to

in quarter target a market, compared in average at number the to increased longer-term saw quarter estimated value has of the the premium policies of amount their per a record believe issued year-over-year first decline we products. policy X% on Although the impact issued our annualized of ended for and renewing force by XXXX, by We that a had protection $XXX awareness billion. COVID face

$X.X $X.X expected of or pre quarter during to levels. net And we client's COVID our per sales and Slide above year-over-year, continue sales down policy. products inflows investing. reflect they continued X, at expect the X% volumes premium remained are around and in should investment XXXX’s to XX% While strength be On billion, to approach second remain billion long-term strong average quarter, X%

volatility momentum However, as confidence. market the investor shifted, quarter during eroded clearly has

Market in economic while see We second it continue levels sales to make and volatility April, uncertainty, to normal. remained redemption difficult quarter. sales activity the predict slowing for

will sales that projections X% our in year XXXX. is estimate year-over-year, best around Our line roughly quarter making full with be down second

made Senior quarter. the reducing the on progress in costs Health acquisition in during e-TeleQuote to contract Slide next X, market Turning we

was cohort. adjustment of particularly This, has indicated have are driven cost, any a that reduce help been at largely switching shopping will However, churn by negative policy to policy our January that increased plans. competitors policyholder believe churn they during prediction annual models on XXXX and expected, than We in Alison discuss growth pulling churn. renewal quarter. the with should later, cycle, advertising million the Xst in for Many the which combined refinements back much and our $XX led tail higher

partners the for which in carrier better Medicare Advantage recognize continue we The must and of expenses account first quarter consider Our development to partner funds year-over-year. process the like our brokers recognize half e-TeleQuote, enhancements clients. and sales. retain carrier marketing approximately received our adjust declined, carriers level operating importance to We have key of from that we increased that LTVs of

XXXX. result not has market. a of volumes difficulty As agents for this, e-TeleQuote going improved, in any this recruiting sales to recruiting continue we to are agent limit having we're and

intentional, Our and been Senior pullback recruiting our to we has stabilize Health segment. in work in as improve results

strategies marketing improved to continue in We sourcing make and and productivity, driven science. data lead progress by spend

to We the plan conversion these emerging in the individuals acquisition XXXX. drive is on conversion, ability the around time acquisition fourth for as and as lessened. retention third rates, pressure lead By lead periods policyholder in well AEP to these contract the second products into quarters or profits we have to occurs and processes lead seasonally during in as quarter, expect due costs to generation purchase lower place

Early believe the stockholder a the that we lot continue of can recognize that indications an LTVS. change by have for early rep, and be we important of over leads to We returns persistency generate favorable also source term. Primerica diligently a referred believe We and We're e-TeleQuote. and were policies are ahead, Primerica that higher have to business. can the growth business acceptable that long that momentum approved of trajectory work working expected the

Arizona business and our rates to XX. Finally, significantly traction of pressuring we mortgage activity. States, continues States bringing as addition Hawaii, number in the is refinance more expand The increase we're in doing which the to into of recent currently gain with interest business

to However, and consolidation we debt see good continue money mortgages. purchase for demand

now manage is Our help that, positioned sales to turn clients With and Alison. consolidate opportunities identify it force over to debt. uniquely I'll to

Alison Rand

you, morning, everyone. Thank and good Glenn,

financial income sales have results Both pretax for elevated lagging the quarter being equity Investment operating from Our persistency and with and benefited factor. favorable a strong as COVID, which experienced as in and segments growth key continue during Term to reflect growth, revenue Product expenses the markets. Savings segments, well insurance Life

continued for loss segment a Health to pressured be in increased recognized resulting Senior quarter. churn, the being the Additionally, by

persistency a offset issued pre-pandemic and is continue the policies expand XX% and these on of increased persistency, in Note increase amortization reserve to period. impacted XX.X% drivers. Slide year-over-year as adjusted to direct compared in earnings resulted levels the operating of line performance COVID Pretax quarter. the largely lapses persistency, not pandemic, million, by was is the to in rising first X%, levels. the months, In year-over-year is most which retention durations, premium negatively in our a ratio impact lower height Life levels, the pandemic. first demonstrated such, by with prior of insurance benefit direct remains particularly the of adjusted Let increases. pre-pandemic for trending income issued segment fears its as very revenues in amortization Term persistency duration, has in me around premiums. lapses of business This to The as we experienced last pre-pandemic subside. current that each favorable and grew this as to this to the XX.X%, lower normalizing year was minor, XX% the in below, on continue continued pretax year with elevated policies see $XXX with in X, was quarter, higher on Starting operating see expenses. approximately the as income XX%, XX% DAC that the now driven prior of quarter. were On range Persistency normalize net as issued strong for the ratio persistency in second DAC pandemic business basis, now the than is DAC trends issued by surprising, the weaker DAC policy sensitive from early growth XX

million, were the to decreasing the COVID in January, was the which mortality, prior the million of experienced steadily half claims with quarter COVID Over net period. than claims the less $X $XX quarter’s year of Turning throughout quarter. levels

expect strains we than of quarter. reasons million not claims net COVID did quarters, levels emerge, of excess second for $X we other claims recent COVID. new see no for the Unlike around Assuming notable

was XXXX. events other previously I drivers insurance biennial increase adding will of XX.X%, to normal of increase postponed to margin the operating year due sales to lower by perspective, From force one persistency, operating XX.X% result deterioration in the extent, ratio, to generally and the lower and the As an excess prior margin claims, XXX-basis a ratio The lesser higher a declined another. period. year-over-year from of point benefit benefit remarks. ratio XX.X% leadership in convention expense is in DAC and in my offset a normalizing for growth this schedule largely driven XX% expenses. our discuss to The later

quarter, around As we second X%. premiums direct look to to the grow expect we adjusted

second had The has persistency. strongest quarter historically the

So, to assuming of will this seasonality ratio XX.X% second the amortization we XX%. and lapses, DAC continued estimate normalization quarter be

net second to Assuming quarter well, the be are the we later discuss benefit quarter. be incur the claim, ratio $X I million in second expected of between remarks. elevated to the expect and COVID-related death second Term in around be Life All we in quarter we XX.X%. expenses will my further in, margin XX% Insurance to the XX% as as estimate operating

with increased increase increased XXXX, X%, growth Turning full sales-based in revenue-generating sales-based with revenues on $XX largely in a product year Slide X.XX% Investment million, of line X%, implemented the percentage force the recognition increase revenues expenses increased X.XX. performance. of million, of while year-over-year, sales, Sales-based and level bonuses rate segment in The pretax higher At sales, Savings the income revenues outstanding sales commissions the while in for revenue-generating of quarter, X, sales Product next of net to in $XXX as X%. consistent operating expense of commission XXXX is the reflects X%.

respectively, acceleration the increase increased with quarters increase expenses, XX% about generally in in million of average line of commission market performance period asset-based an $XXX,XXX. the XXXX on segregated increase values. of the asset XXXX, in and DAC amortization, revenues, Both current included asset Asset-based and unfavorable - client an first asset and values. year whereas client amortization The included period prior included result a a fund in of $X.X Canadian XX% as

collections. on the Heading prior Slide Xst we a model cycle segment renewal we Turning waited negative renewal year million uncertainty, the into cohorts by the for January in revenue to Health Senior was previous that in the level demonstrate adjustment weakness, came algorithmic on of carriers adjustments. expected given approved to recognized predicts $XX tail we The payments refinements year, further the expected during periods. make policies XX, quarter, commission continued first tail the until tail the also commission from to to but adjustment driven

this the adjustments the cohorts, adjusted model still additional significant could have the and persistency approach next recent over trends though of some quarters. We few in believe minimizes to we negative overweight future, adjustments tail have smaller

also We our rising the revenue model who reflect facilitate at us properly looking return existing how are adjust policyholders to forecasting switch plans, and but to level curves, persistency change. to the of to

of monitoring policies. trends the renewal of newly an as recognized lower quarter the early business the the being to to XX% as to constraint in The possible. and the reflect results We identify are LTVs churn increase led approved level carefully in revenue to collection uncertainty, heightened for

the We and expectations, business, efforts for as results. and fourth improved range earlier. expect second to quarter, sector, in with is paid contract for from see in million continuing, also rates about the third $XX process still initial range with block reduce QX. Glenn to $X seasonality on million prior mentioned early significant While and too in from acquisition change within costs in XXXX for reduction year per levels, were the patterns approved of pretax in with quarter AEP the were able the the losses a modestly we line policies There renewal quarters,

believe us in financial XXXX. stronger set actions we up much the are for performance taking, Importantly, we

down the million loss NII $XX the loss With net the investment anticipated increased be the $X million loss a of Corporate $XX segment, and our of negative pretax the Products agent the productivity, at due to In year-over-year The benefits segment force remaining were Senior other $X range Distributed higher was XX the PRI the was lower on tied of net to inclusive The costs distributed adjusted guidance of term-wide the low by About did prior components increased operating million were million improved year-over-year. income the million, XX, Other of growing higher events. increased loss associated level. segment year operating of exist to end $XX we million and and XX% allocation earnings of driven the insurance on expenses Consolidated products that period. $X increase, in-person prior leadership follows. or well. driven the operating operating to about million recognized $X allocated and not in as operating million as million cashflow block lower Health or to support business. by was other XX% at year-over-year, Pretax sales tax $X.X of with which to about of $XX Slide counts million, expect

hold open of million higher half. expenses somewhat recognized high the levels million force June leadership of second including from lifting annual return $X As $X our given business, related levels costs associated in-person employee Expenses higher historical million this associated pre-licensing in travel, pre-licensing expenses to events, expect increases, XXXX, to were various in classes level resumed full items, positions. in - the generally including back with XXXX driven higher by resumed XXXX. year. COVID by in this Approximately postponed a normal costs, related to being of to year. prior levels. offset given sales to to flat classes events. will $X related related year travel be $X additionally, remaining in the biannual The was merit Approximately gone which in-person with be restrictions growth normal elevated to years, higher first that was The as employee our will expenses noted force quarter, the million last we And leadership previously events, than about we'll the sales year-over-year we we've convention half with

Looking the million operating million by ahead, second first events increase exist force is generally and increase catch-up discussed. did the factors driven remaining in XX segment is and $X prior $X elevated quarter we The period, for by expect increasing is the in-person sales other elevated, recurring Senior to year million same to tied about$ of insurance quarter. or just expenses the noted that again the driven leadership year-over-year. be Health not of XX%

We events third significantly reflected ‘XX, expenses of of year-over-year On other years. operating are the expect sales increase to both Senior respectively. are in expenses, to expected second and growth returns fourth force Health about slow basis, year-over-year expense and frequency normal, to half in X%, a the and quarter and insurance as operating X% by

an remains diversified, XX, years. rating portfolio Slide to next with of Turning and asset A, well the a invested of duration average X.X

unrealized an compared portfolio million XX interest at million, XXXX. quarter, the $XX rates, gain to of in in of the loss unrealized an increases led to $XX December of During significant

have income rates significant declines April, predominantly decline. result prices interest not have and the concerns. fixed continued We of credit to rise As rate-driven, a believe to in interest continued are

have we the until yield the maturity, The of AA-, investments during the for plenty new have X.X% in to our purchases X.X% in opportunities. attractive in of The companies allowed believe flexibility hold also has on as investment for We increase averaged portfolio, and more for compared quality rates interest the necessary. ability quarter. quarter, priority life to

the rates While of impact we years time to we're opportunities are take seeing. the that reverse it about will buying the had optimistic low book some better interest portfolio have yield, on that

company remain XXXX. XXX% capital about to risk-based Finally, assets on very ratio, $XXX XX, million. cash Life’s the and Slide of be XX, estimated invested was strong at as holding Primerica statutory March at

of stock, program, when December, $XXX completed quarter, remaining $XX $XX be this we with which, about year. combined the million the million million our to in repurchase of leave common $XXX During our purchased million

information the second early questions. report to We and we go the still the providing accounting implementation to work our into effect will up We on results contracts, of preliminary qualitative LDTI, long plan or for estimate towards for XXXX. adjustment that, Operator, quarter an which improvements continue duration other sheet in I'll open targeted when August. With balance of our line the in

Operator

Thank from is question Ryan you. of [Operator Instructions] is your KBW. line open. first Our Krueger Ryan,

Ryan Krueger

commentary the are about earnings on question translate Senior My to rest I morning. outlook. move XXXX? thinking into updated Health on Good at this how we could the point the first how Appreciate the this you was as of year. guess,

Alison Rand

to I'll start, want be in you if Glenn, that'd great. any commentary, then, fill

business, this we business. optimistic model. all want will look we're until we we look taking that thing is model year we to the we're constrain that the point, we we because this make operating more and take At that will the is full capital good help at that year, has that that do comfortable changes operating these happen. XXXX, volumes for putting to quite start point, take towards grow business. we about being what the again. This So, grow making One or then haven't projections feel think one sure feel Glenn this back will But would we more once towards We the the put we through solution to we're we're to better will is done capital evaluating steps see on much we're it specifically which for business, as that frankly, volumes the a comfortable, next growing the the into cash future. very as put holding sales said, the year

business acquisitions but real loaded. largely over know, all the time, we in come where this these are is a As commissions all front-end

sort off this churn, costs, doing on we cautious our about and very again, as brakes client, back with improving year. acquisition are contract approaches the reducing it see as foot the towards we relationship the we'll take various put And of in accelerator So, our improving successes that well. being

year the to further see will and progress I provide insights efforts, our we as into traction XXXX. on So,

Glenn Williams

agree. Yes, I

very think I process. a it's deliberate

it And has very well. so, described Alison

Ryan Krueger

thinking And you year to - How thinking on convention? a how Life after decline. you - the move you you momentum that how I the I year-over-year then quarter, would think guess, XX% about the commented the as Thanks. are Term second sales, half have were you of you in back expect

Glenn Williams

and got going significant this I in Ryan, year some the some less Yes, momentum We performance think last pretty to positive year. have comparisons. compare we'll to, positives,

So, throughout we I as think year. improving comparisons you see those go the

to think progresses. convention are increase be as from make get announcements you I the will at think add excitement this improvements then to previous year, the The in to designed we and comparisons convention some that you and growth the less And helpful. continued year productivity. the try aggressive types I of

Ryan Krueger

Thank you.

Operator

Our question of from next open. is Jefferies. Dan, line your is Dan Bergman

Dan Bergman

Good morning.

were So, performing drove policies And wanted compared year cohort color of really issued typical you more emerge of your policies vintage prepared provide similar levels recent it of that apologize if great. policies And in how just on little what of of see the the vintages. in seeing a color any any I kind to what see would persistency for first color helpful. issued remarks on in there on we in the are is Term the but how on blocks could I that if like be it, you're to you're trend block on Just weakness. could a on risk pre-pandemic persistency I any the the pandemic, pandemic? sounded seeing Life missed more in later

Alison Rand

Sure.

the my going how of happening fear, and is I lot remarks, straight in we commentary level our of business that it a weakening give was some was, them So, the that question persistency be block but it's didn't there first sales level When knew of prepared to of likely and interesting. this we on can performing? exact and numbers was And our of share purchases to now. pandemic I entered out skyrocketed, some be block.

typically we that block second - seen On about pre-pandemic. business the of duration worse it's say that's I’d block than its X% a second would've on second in on what duration,

board. first-year pre-pandemic I about is it's too issue actually not as trends, performing off the it persistency, concern to have it much a it's that as on becoming favorable far the that say, levels. while historical strongly across certainly still So, not I And real would

feel when but policy. policies became people's little everyday those better a first thought the is a it an purchased say a want it don't where COVID cycle, were will And became of bit want than lot pre-pandemic say I perform. - phenomenon, that later don't sort take bit So, to confident I to in performing little more lightly, that I currently in lives, that more given - business routine a of again, duration that

even if line it a little much So, in it the weakens still would bit, weigh historical trends. with pretty

all what look So, all, we're across or it's persistency. prior do to seeing. interesting at I'm And are like And with the in are just pleased actually very we're policies board, XX% that issued think the to duration that later. I I the were Those in policies their better pandemic. seeing, said, third

for prior the need So, are who understand holding before. insurance, longer absolutely the pandemic than the policies their need, in even to fact, the to still and on people understood

pretty in think positive. all So, all, it's we

Dan Bergman

it. you. really helpful. for Got wanted the recruiting. then, detail That's outlook more if just And provide I on some Thank you to see could

new And the from impact inflation labor market any believe your ability some bring you incentives. prepared in recruits. seeing remarks, wage and mentioned changes in recruiting in on you're if I tight to curious Just the

you expand on initiative. see that to wanted Just if could

Glenn Williams

might early and comments love coming try as pretty into I'd the started, thought as let's might short unknown you recall, were because completely of at we before to and incentives we incentives the with surge bridge time, momentum - we said, indicated were one pandemic recruiting the going coming pandemic using out or Sure. ‘XX the on a Dan. to, heavily, uncharted territory, ‘XX. recruiting were Yes. The about as, we feeling late And in that be momentum. we our pandemic continue and had good were business

then using the discounts, that continued do and aggressively lengthened. as were pandemic and incentives we to So, we

strength it's in and pleased it. we're Now, finding - business the with fundamental we're our

so, a using extra And significant kind of as thing, regular and event, incentives, more more on kind a leveraged. significant of and pandemics normal leadership credit back little incentives, we're and that not on the things, nearly using easing is - sorry,

of impactful And we're incentives. And strong business. off recruiting very of we're all our finding of doing so, fundamentals weaning what is, what kind in really is, ourself those recruiting we're

more the was focused incentives so, use And that a nod of now. toward

at sound influenced And in more previous in looking got they're by numbers, you've they being incentives so, were years. not as we fundamentally believe, because our numbers as

Now, I in question our business we're more success seeing prepared market, momentum my nothing like what the specifically said us recruiting model. about in gives to your as remarks, of

conscious certainly field did the of success And tremendous the our productivity. It drive it of loss leaders so, while pandemic, incomes. be their always of and we need drove to

And so, compensation. we've got we've and It of opportunity. message in levels productivity sales a a kind strong well great highest performed We're that our times. got at difficult of ever recruiting

also share more creates and that a leaders confidence it's a so, When message message, And strong recruiting it often. creates frequently. the good you more tell for that our to message, it

for current frequently. their with conflicts and forth, market, into of believe, very believe alternatives, and So, flexibility don't a of is, in that's when when when we frustrated it's that, lot are the kind we believe people fundamentals are labor we're seeing up opportunity, And what and don't so us built they radar contradictions that have just all the jobs, their of tight the helps strong show it. look longer have lasting. on then that's they and But got they the particularly

build. seeing seeing are the interest move tends in period week. market, extended that to not that attract of takes job because employees, opportunity new those We're lot headwinds offer we So, people as not we're a our an or things the a the positive. We're time the That's we of job. That fairly in of a to hunt are brand our that this it in labor frustrated opportunity. not offering in between lot a tightness opportunity offering a look careers for from a for

headwind, tightness a susceptible the So, of to right market. we're were kind we're If labor into now. years, might for seeing that it it not turn extraordinarily of tight but of in not period a just the as swings

Dan Bergman

Got it. you. Thank helpful. That's really

Operator

is Our Mark, Truist. next with question Mark Hughes is of open. your line

Mark Hughes

maybe the Yes, year morning, strong. XQ, in more operating does XX%, Alison, margin more that normalization Good factors little benefit Is trend more? a a How Life lower? DAC, would bit the a good higher, to or ratio, a these if maybe balance margin, think the thank little normalizes that Term and of pretty over you. level Glenn. be XX% little about get we that the normalize

Alison Rand

quarter margin strongest our second is The traditionally quarter.

second good ratio down is from persistency that DAC perspective. very historically, the which Just brings quarter, obviously seasonality in

do I a the little second elevated. to quarter bit So, be expect

that, year. be that that. guidance to we believe have last at we'd the that expenses As changing And we full around the operating was higher mentioning a I slight point, XX% thought we're this quarter not earlier. offset you do the I for gave

Mark Hughes

And then, year-over-year policies - I new a decline Was Okay. you Glenn, about talked that you think were XQ? issued. for in XX%

Glenn Williams

just Yes. was XQ. That for

Mark Hughes

XQ. I as get the would those marginally better. you And think improve numbers said then you progresses, year or see

Glenn Williams

by right. be That's last more difference Quarter line year. become expect we and in with smaller to that quarter,

Mark Hughes

Okay.

Appreciate it for I that's think me. Thank it. you.

Operator

of Andrew, Our Kligerman next line open. is Suisse. Andrew Credit your question is with

Andrew Kligerman

Is had biannual been morning. subsequent of does of digit to you've give see Good And kind the you year, very trajectory? back been saying year-over-year the count. conferences, boost a quarters on in then, a count? that what a these with your you that said, historic What's low in you've could when single Question it I the rep rep pickup level? count. the rep in think Historically, half still kind boost of

Glenn Williams

in mentioned in Yes. success Andrew, my our I as rate, remarks. we are some seeing pull-through

years, to worked convention. were a now better But between huge that the around And by, period years to differences. really think a that convention optimistic And made see we a coming momentum not in effect gone the dynamic. momentum remarks. last out, over the I very And that we've I And significant but before comment we and think hard we what of talking the We about I'm before my so, I after in healthy two. have a we're convention, the over didn't momentum in like maximum was feel years. we the than saw succeeded in quarter. little XX prepared last convention difference more and

third months. and to the the six difference see first So, the you're the last going six not months the quarter second - versus day night versus quarter, in first

coming incentives run at the make However, out and convention. of announcements we the do convention

make you're everybody event, all we little field, a days is, the in convention. the vision attend, And the the travel to pretty excitement out a and of we in the comes we the And so, my based generate see, to to what cast you then, activity remarks, for at as future week some the including period around immediately momentum I likely after on a announcements event the strong of see lull for itself. as see and mentioned XX you

That's what dynamic expect we is recruiting and usually play to size the your to with see, because move. one what the out would probably coming incentives of So, that we force we recruiting into the convention. sales question, strong is easiest

the would the our we've expect surge to recruiting and our licensing and we're prepared deal nets so of is force that get now, positive rate One event. seeing a out all that we of And pull-through need numbers growth. try of net pull-through, place after hard come the that, that of of impact on size of sales because one improving large an reasonable we we're I'm in, and in to with them reasons recruits so worked reasons to glad when that those

So, to a licensing growth one-month numbers. is even some and you process in the in in The a Canada, longer than provinces the don't process, four-month see that.

But good give over pull-through strong second the of period. the into and you to something after half year us front that year, the the recruiting see pipeline. next immediately end of force not in expect extended of positive momentum it's And in we're So, would experiencing, size first this see you the some half event. sales the

Andrew Kligerman

Glenn. long-term, lot more chaos pandemic. still in in more and there, of before And thing. the you're XXXX maybe XXXX rep which XXX,XXX was around the Very count thinking a of then, a the broadly, is And helpful, ways, great

And of substantial the are there term, might is, you're a give thinking Primerica or off XXX,XXX this about so, as we question think levers initiatives that that any number? that longer Glenn, growth

Glenn Williams

and force. market in spite pill. number. magic the believe that our that with It demand Andrew, efforts, in because still tackling, very Yes, blocking And our the companies and support potion best handful I is of other is sales of chronically a a there's a this is to not size, the do size marketplace underserved, The possibly. at increase of growth or magic on we a percentage in dealing large you're think there a continues middle

addressable and kinds market So, conditions of continues the through events, And marketplace, to strong. our model all world still is economic attractiveness the the business of appealing. be

can So, that we we see to one on that a of all appear. process there'll some we have the shift mentioned we don't fundamentals our And one game strength do the add we've I a based they have I got huge in that use advantage growth. the in a think as accelerate with. momentum or to momentum to try says, sudden we plan things think be change, pleased opportunities place, and we'll fundamental to I'm that announcement but of that the take

we've unfortunately, we have were went and plateau generally little out this We grown break to that the hit. COVID XXX,XXX to a time. to got for same there, all bit, We quickly plateau. as We - we then XXX and XXX of beginning long just to historically And from and a fairly plateau at we were questions. went plateaued

And in today. so, than us we another higher now, where that's believe same are plateau we getting there's we're much of but the front questions

Andrew Kligerman

posted And good a well could Awesome. year you Anyway, and - up I'm and a question I banner After into guiding you've expecting were mid-single been digits. Investment double quarter the XXX,XXX. sneak Products last for one X%, Savings if year, and at this year, were quick digits. first in. sales

right they markets now, that thinking the about are in volatility and quite guidance? are the volatile, Given how you

Glenn Williams

Yes.

seeing again, out there the quickly, remains this of it's volatile and headwind anticipated, And slows we stays said, of than prepared we out as even the And we're If not with If it's down. more more it significant amount projecting that's right result then would've my everyone the of in when period be we there, And to duration. quarter. volatility the as year little last we ever us talked than said longer impactful. is, things are it's at I It's passes less it's fairly now, flattish last of volatility. just Primerica, time, why more course. it a As a slowing. long year remarks, for full a

it not we the into long think than that is the that amount what duration we're all seeing for higher the tie to is just at last right pretty year. lasts. which with full we year probably close into and it's all looking flat now, how So, something right the But expected. now, It'll recipe, we're

Andrew Kligerman

That's so great. Thanks much.

Operator

is Hughes is open. your Mark Mark, with Truist. of question next line Our

Mark Hughes

we digit way Yes. about expenses of that think Any influence fourth growth highlight next to in X% good be about obvious year, talked I Should about the next number? year? have low, rate When you. things that cost? you increase mid-single think to the won't you think tapering, a obviously the convention Thank increase, a Is it you XXXX, would expense quarter.

Alison Rand

Yes.

Let me buckets. break sort two that into of

So, some growth-related of talk I our a category. expenses, about always

So, premiums grow, fees If things grow. management like, grow, our under premium taxes if our our administration assets grow.

very growth. there certain that we are very we that call to that - revenue things at tied are So, look

in XX% we're growth think dynamics, have the going to XX%, we So, same in expense. to extent X%, growth would the of underlying we have some those XX%,

you to the specifically for you take can out that have in ISP the it, see we separately. And you bucket sort of side, on those financial lay supplements. So,

a sense at really And You range. range, bit because when we'd little XX%. much core tend need versus operating. is we look higher a been be, But have good more of to X% like I'd in maybe invest the to let's to things annual a what a like more percentage but general be which sort general which expenses X%, always expenses, the operating say, of in, think maybe the ongoing of like are say, get X%-ish, the the to source to I very X% merit of tied that increases, can historically, revenue has technology, you on

all pure with mid-single on I in that we'd to in like digits. growth that So, things the historically be said, tied think our to the sources, aren't revenue

Does at to some will be. the say let's that before expense So, That's there’s that you what assumptions chunk need what determining revenues look expenses large your But X%. to are X% are of our on a help? again, the between really target.

Mark Hughes

you. Thank you. it. It Appreciate does. Thank

Operator

That concludes your Thank the conference call. participation. you for

your You line. may now disconnect

Primerica (PRI) 6 May 222022 Q1 Earnings call transcript