Primerica, Inc. (NYSE:PRI) Q2 2023 Earnings Conference Call August 8, 2023 10:00 AM ET

Company Participants

Nicole Russell - SVP, IR

Glenn Williams - CEO & Director

Alison Rand - EVP & CFO

Conference Call Participants

Wilma Burdis - Raymond James & Associates

Jeffrey Schmitt - William Blair & Company

Ryan Krueger - KBW

Suneet Kamath - Jefferies

Mark Hughes - Truist Securities

Operator

Greetings. Welcome to Primerica's Second Quarter 2023 Earnings Webcast. [Operator Instructions]. Please note that this conference is being recorded. At this time, I'll turn the conference over to Nicole Russell, Senior Vice President of Investor Relations.

Ms. Russell, you may now begin.

Nicole Russell

Thanks, Rob, and good morning, everyone. Welcome to Primerica's Second Quarter Earnings Call.

A copy of our earnings press release, along with materials that are relevant to today's call, are posted on the Investor Relations section of our website. Joining our call today are our Chief Executive Officer, Mr. Glenn Williams, our Chief Financial Officer, Ms. Alison Rand. Glenn and Alison will prepare -- will deliver prepared remarks, and then we will open the call up for questions.

During our call, some of our comments may contain forward-looking statements in accordance with the safe harbor provisions of the Securities Litigation Reform Act. The company assumes no obligation to update these statements to reflect new information. We refer you to our most recent Form 10-K filing as may be modified by subsequent Forms 10-Q for a list of risks and uncertainties that could cause actual results to materially differ from those expressed or implied.

We will also reference certain non-GAAP measures which we believe provide additional insight into the company's operations. Reconciliations of these non-GAAP measures to their respective GAAP numbers are included at the end of their earnings press release and available on our Investor Relations website.

I would now like to turn the call over to Glenn.

Glenn Williams

Thanks, Nicole, and thanks, everyone, for joining us today. Our strong second quarter results highlight the value of Primerica's complementary lines of business, and the continued efforts of our team to grow our distribution capabilities. Growth in our sales force and the appeal of our life insurance products are creating sales momentum despite the continuing financial pressure on middle income households.

Adjusted operating revenues of $690 million rose 3% year-over-year, while adjusted net operating income of $145 million increased 11% and diluted adjusted operating earnings per share of $3.99 increased 18% compared to the prior year period. These results reflect the predictable growth in our Term Life business and the benefit of higher interest rates on our investment portfolio, both of which more than offset the continued pressure of lower sales commissions in our Investment and Savings Products business.