Company: PRI
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-029882
Chunk: 296

Company: Primerica, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1B
Chunk 296
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 Note 5 (Investments) and Note 6 (Fair Value of Financial Instruments) to our consolidated financial statements included elsewhere in this report.

Other Significant Assets and Liabilities. The balances of and changes in other significant assets and liabilities were as follows:

    December 31,

    Change

    2024

    2023

    $

    %

    (Dollars in thousands)

    Assets:

    Reinsurance recoverables
     
    $
    2,744,165

    $
    3,015,777

    $
    (271,612
    )

    (9
    )%

    Deferred policy acquisition costs, net

    3,680,430

    3,447,234

    233,196

    7
    %

    Liabilities:

    Future policy benefits
     
    $
    6,503,064

    $
    6,742,025

    $
    (238,961
    )

    (4
    )%

Reinsurance recoverables. Reinsurance recoverables reflects future policy benefit reserves and claim reserves ceded to reinsurers, including the IPO coinsurers. Reinsurance recoverables as of December 31, 2024 decreased compared with December 31, 2023, primarily due to the continued runoff of the IPO book of business.

Deferred policy acquisition costs, net. The increase in DAC was primarily a result of the cumulative impact of incremental commissions and expenses deferred as a result of new business in 2024 not subject to the IPO coinsurance agreements. 

Future policy benefits. The decrease in future policy benefits mostly resulted from the increase in market observable interest rates at year-end that are used to discount the present value of the estimated future cash flows included in the liability for future policy benefits.  

For additional information, see the notes to our consolidated financial statements included elsewhere in this report.

Liquidity and Capital Resources

Dividends and other payments to the Parent Company from its subsidiaries are our principal sources of cash. The amount of dividends paid by the subsidiaries is dependent on their capital needs to fund future growth and applicable regulatory restrictions. The primary uses of funds by the Parent Company include the payments of stockholder dividends, interest on notes payable, general operating expenses, and income taxes, as well as repurchases of shares of our common stock outstanding. During 2024, our life insurance underwriting companies declared and paid ordinary dividends of $311.8 million to the Parent Company. See Note