Primerica (PRI) Margins Shine With 66.3% Combined Ratio Reinforcing Bullish Profitability Narratives

Primerica (PRI) has capped FY 2025 with fourth quarter revenue of US$853.7 million, basic EPS of US$6.16 and net income of US$197.0 million, alongside a combined ratio of 66.3% that gives an immediate read on underwriting profitability. The company has seen quarterly revenue move from US$803.4 million and basic EPS of US$4.99 in Q4 2024 to US$853.7 million and US$6.16 in Q4 2025. Trailing 12 month revenue sits at about US$3.3 billion and EPS at US$23.02, setting the stage for investors to weigh reported margins against the broader earnings story.

See our full analysis for Primerica.

With the headline numbers on the table, the next step is to put these results up against the widely followed narratives around Primerica’s growth, quality of earnings and risk profile to see which stories hold up and which get questioned.

See what the community is saying about Primerica

Margins Point To High Earnings Quality

• Trailing 12 month net income of US$751.2 million on revenue of about US$3.3b implies a net margin of 22.8%, which is described as high quality and higher than the prior year.
• Supporters with a bullish view focus on that 22.8% margin and the five year earnings growth rate of 14.8% per year, yet the latest 4.6% earnings growth over the past year shows growth has slowed compared to that longer trend.
  • From that bullish angle, the combination of US$3.3b in trailing revenue and US$751.2 million of net income backs the idea that Primerica is converting a meaningful share of its top line into profit.
  • At the same time, the step down from 14.8% multi year earnings growth to 4.6% most recent growth is the part of the data that keeps the bullish story from looking completely one sided.

If you want to see how optimistic investors justify that strong margin story against slower recent growth, check out the full bull and bear breakdown in 🐂 Primerica Bull Case.

Valuation Metrics Screen As Supportive

• Primerica is reported on a trailing P/E of 10.6x, below both the peer average of 11.8x and the US Insurance industry average of 12.5x, and a DCF fair value of about US$690.86 sits well above the current share price of US$250.04.
• Critics taking a more bearish stance point to the 4.2% revenue growth and 4.6% earnings growth over the last year, arguing that slower growth could justify the lower P/E even if the DCF fair value and the 296.33 analyst price target suggest more room on paper.
  • The gap between the US$250.04 share price and the US$690.86 DCF fair value is large, yet the single digit revenue and earnings growth rates show why some investors question whether that model is too optimistic.
  • The 296.33 analyst price target sits between the current price and the DCF figure, reflecting how expectations in the data are higher than today’s price but still factor in more modest growth than the past five year average.

If you are weighing that low P/E, big DCF fair value gap, and moderate growth together, it is worth seeing how skeptics frame the risks in 🐻 Primerica Bear Case.

Growth Steadies After Strong Five Year Run

• Over the last 12 months, revenue growth is described at 4.2% and earnings growth at 4.6%, compared with earnings growth of 14.8% per year over the past five years, while trailing 12 month EPS comes in at US$23.02.
• The consensus style narrative in the data highlights long running demand drivers such as middle income financial needs and an expanding sales force, and the recent quarterly pattern of EPS between US$5.06 and US$6.36 alongside annual EPS of US$23.02 shows a business that is still growing but with a pace that is more measured than the five year average.
  • Across FY 2025, quarterly basic EPS ranged from US$5.06 in Q1 to US$6.36 in Q3, which lines up with the idea of ongoing growth but not the kind of acceleration some bulls might hope for.
  • That mix of double digit historical growth, mid single digit recent growth, and US$3.3b in trailing revenue is what underpins the balanced take that Primerica has a solid franchise while also facing slower momentum than in prior years.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Primerica on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See the numbers differently? Take a couple of minutes to test your own view against the figures here and turn it into a clear narrative, starting with Do it your way

A great starting point for your Primerica research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

See What Else Is Out There

Primerica pairs high margins with slowing revenue and earnings growth in the mid single digits, which may leave some investors wanting a stronger growth profile.

If that slowdown has you second guessing concentration in one name, put it in context by comparing it with our screener containing 23 high quality undiscovered gems that may offer fresher growth stories built on solid fundamentals.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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