Company: PRI
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-029882
Chunk: 351

Company: Primerica, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1B
Chunk 351
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 26,637

        Other

        25,450

        30,367

        Total deferred tax assets before valuation allowance

        625,020

        616,606

        Valuation allowance

        (20,002
        )

        (26,637
        )

        Total deferred tax assets after valuation allowance
         
        $
        605,018

        $
        589,969

        Deferred tax liabilities:

        Deferred policy acquisition costs
         
        $
        (463,921
        )
         
        $
        (441,730
        )

        Reinsurance deposit asset

        (33,372
        )

        (39,349
        )

        Other

        (42,685
        )

        (45,884
        )

        Total deferred tax liabilities

        (539,978
        )

        (526,963
        )

        Net deferred tax assets (liabilities)
         
        $
        65,040

        $
        63,006

       The majority of total deferred tax assets are attributable to future policy benefit reserves and unpaid policy claims, which represents the difference between the financial statement carrying value and tax basis for liabilities related to future policy benefits. The tax basis for future policy benefit reserves and unpaid policy claims is actuarially determined in accordance with guidelines set forth in the respective jurisdictional tax codes in the U.S. and Canada. The majority of total deferred tax liabilities are attributable to DAC, which represents the difference between the policy acquisition costs capitalized for U.S. GAAP purposes and those capitalized for tax purposes, as well as the difference in the resulting amortization methods.The Company has federal and state net operating losses resulting in a net deferred tax asset of $31.8 million and $9.5 million, respectively, as of December 31, 2024. The federal net operating losses have an indefinite life while one-third of the state net operating losses are available for use through 2037 and approximately two-thirds with an indefinite life. The Company has no other material net operating losses.

98

 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, carryback and carryforward periods, and tax planning strategies in making this assessment. As of December 31, 2024, management identified excess foreign tax credits of