Company: PRI
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-029882
Chunk: 116

Company: Primerica, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 116
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 contractually supported under a redundant reserve financing transaction used by Vidalia Re, Inc. (“Vidalia Re”). For more information on the Surplus Note, see Note 5 (Investments) and Note 12 (Debt) to our consolidated financial statements included elsewhere in this report. The Company recorded investment gains during 2024 compared to investment losses during 2023 primarily due to a $1.6 million positive mark-to-market adjustment on equity securities held within our investment portfolio during 2024 compared to a $3.1 million negative mark-to-market adjustment during 2023. Partially offsetting these changes were lower net premiums for our closed block of non-term life insurance.

Total benefits and expenses. Total benefits and expenses increased in 2024 from 2023 due to a future policy benefits remeasurement loss in the third quarter of 2024 recorded in connection with the refinement of assumptions on a closed block of non-term life insurance as well as higher other operating expenses, largely higher employee-related costs, and to a lesser extent technology costs. 

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The higher employee-related costs were driven by increased incentive compensation due to strong company performance. These increases were partially offset by a decrease in benefits and claims as a result of a credit loss recognized during 2023 for the remaining ceded reserves on a closed block of non-term life insurance business from an insolvent reinsurer that was ordered into liquidation. 

2023 compared to 2022

Total revenues. Total revenues increased in 2023 from 2022 primarily due to higher net investment income. Net investment income increased in 2023 from 2022 due primarily to $23.3 million from higher yields in the invested asset portfolio, a $9.4 million higher total return on the deposit asset backing our 10% coinsurance agreement and $8.5 million from a larger invested asset portfolio compared to the prior year. As noted above, investment income net of investment expenses includes interest earned on our held-to-maturity asset, which is offset by interest expense on the Surplus Note, thereby eliminating any impact on net investment income. This increase was partially offset by a year-over-year decline in revenue from commissions and fees and investment gains (losses). Commissions and fees revenue earned from our mortgage brokerage product offerings were lower during 2023 compared to 2022 primarily attributable to higher mortgage interest rates that reduced demand for mortgage products. Investment losses increased during 2023 compared to 2022 primarily due to higher credit losses recognized for debt securities