Company: PRI
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-029882
Chunk: 347

Company: Primerica, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1B
Chunk 347
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        Expected future policy benefits at original discount rate, end of period

        20,763,900

        20,391,694

             Effect of changes in discount rate assumptions

        (608,413
        )

        116,741

        Expected future policy benefits at then current discount rate, end of period
         
        $
        20,155,487

        $
        20,508,435

        LFPB
         
        $
        6,300,693

        $
        6,531,082

        Less: reinsurance recoverables

        2,729,022

        3,001,074

        Net LFPB, after reinsurance recoverables
         
        $
        3,571,671

        $
        3,530,008

        Weighted-average duration of net LFPB (in years)

        8.0

        7.9

       Our annual actuarial assumption review was performed during the third quarter of 2024. Assumptions were updated using experience studies based on the Company’s own data including actual to expected cash flow variances by policy cohort. Actuarial judgment was also used since prior historical experience may not fully reflect future expected experience.  As a result of the assumption review, the LFPB recognized for the Term Life Insurance segment decreased by $28 million, net of reinsurance, primarily due to the reduction of the expected cost of waiver of premium benefits. The adjustment resulting from the assumption change was recognized as a remeasurement gain in the accompanying consolidated statements of income during the year ended December 31, 2024. The waiver of premium benefit offered for our term life insurance product is an optional supplemental rider that waives the policyholder’s insurance premiums during a qualifying disability. Lower than expected disability incidence rates have consistently been observed each year since the COVID-19 pandemic. Unlike our mortality or lapse rates, which had both favorable and unfavorable experience in the years since the onset of the pandemic, the disability incidence rates declined in 2020 and have remained at similar levels since then. Therefore, we have partially reflected this improvement in recognizing our best estimate assumption in determining our LFPB. Waiver of premium benefits are not reinsured on a yearly renewal term basis, therefore, most of the impact of this assumption change is reflected in the future policy benefits remeasurement gain line item in the accompanying consolidated statements of income.  In