Company: PRI
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-029882
Chunk: 348

Company: Primerica, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1B
Chunk 348
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 our recent experience, we continue to observe lower mortality and higher lapses compared to the updated actuarial assumptions in our Term Life Insurance segment. However, we believe the majority of these variances are likely temporary and experience will return to pre-COVID-19 pandemic levels in the future. Slight changes were made to the mortality assumption that included rolling the mortality improvement forward one calendar year. The early duration lapse rate assumption was also increased to partially reflect recent experience. The LFPB impact, net of reinsurance, for both the mortality and lapse assumption changes was de minimus.   We also performed our annual review of LFPB assumptions for our closed block of non-term life insurance included in the Corporate and Other Distributed Products segment. Based on this review, we recognized a remeasurement loss of approximately $5 million during the year ended December 31, 2024. 

95

 The only LFPB assumption that was changed during the year ended December 31, 2023 was shifting forward our assumption for long-term mortality improvement one year for applicable cohorts in our Term Life Insurance segment. The impact of this assumption change was immaterial to the measurement of the LFPB in 2023.  Discount rates, while a material assumption to our LFPB, are not part of the assumption-setting process since they are updated quarterly based on observable rates. There have been no changes with the compilation of data sources used for this input. Losses recognized as a result of capping the net premium ratio at 100% were immaterial during the years ended December 31, 2024, 2023, and 2022.The following table reconciles the LFPB to the consolidated balance sheets:

        December 31, 2024

        December 31, 2023

        (In thousands)

        Term Life Insurance
         
        $
        6,300,693

        $
        6,531,082

        Other

        202,371

        210,943

        Total
         
        $
        6,503,064

        $
        6,742,025

       The following table reconciles the reinsurance recoverables to the consolidated balance sheets:

        December 31, 2024

        December 31, 2023

        (In thousands)

        Term Life Insurance
         
        $
        2,729,022

        $
        3,001,074

        Other