Company: PRI
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-029882
Chunk: 436

Company: Primerica, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 436
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 coinsurance transactions.  

Benefits and claims. Benefits and claims increased during 2024 compared to 2023. Direct benefits and claims increased due to the growth in the business. Year-over-year claims incurred in 2024 were consistent with amounts incurred in 2023 despite the growth in the in-force book of business. Claims experience was lower than our long-term actuarial assumptions as discussed in Note 11 (Future Policy Benefits) to our consolidated financial statements included elsewhere in this report.

Future policy benefits remeasurement (gain) loss. Future policy benefits remeasurement gain increased during 2024 compared to 2023 and represents the impact of long-term assumption changes made during the third quarter of 2024 in connection with the annual assumption review as well as differences in experience variances that occurred in each period. The gain recognized in 2024 is primarily due to an assumption change related to the reduction of the expected cost of waiver of premium disability benefits. Refer to Note 11 (Future Policy Benefits) to our consolidated financial statements included elsewhere in this report for further details.  

Amortization of DAC. The amortization of DAC increased in 2024 from 2023 primarily due to continued growth in the in-force book of business.  

Insurance expenses. Insurance expenses increased during 2024 compared to 2023 due to higher costs resulting from growth in the business, employee-related costs, and higher variable expenses to support recruiting and licensing. 

Insurance commissions. Insurance commissions decreased in 2024 from 2023 as a result of lower non-deferrable independent sales force activities.

2023 compared to 2022

Net premiums. Direct premiums increased in 2023 from 2022 largely due to the layering effect of new policy sales that contributed to growth in the in-force book of business. In addition, direct premiums continued to increase in 2023 despite the impact of elevated lapses due to the growth in new policy sales. This increase is partially offset by an increase in ceded premiums, which includes $61.9 million in higher non-level YRT reinsurance ceded premiums as business not subject to the IPO coinsurance transactions ages, reduced by $37.4 million in lower coinsurance ceded premiums due to the run-off of business subject to the IPO coinsurance transactions.  

Benefits and claims. Benefits and claims were generally flat during 2023 compared to 2022. Direct benefits and claims increased with the growth in the business but were mostly offset by an increase in ceded benefit reserves