Primerica, Inc. (NYSE:PRI) Q2 2022 Earnings Conference Call August 9, 2022 9:00 AM ET

Company Participants

Nicole Russell - IR

Glenn Williams - CEO

Alison Rand - EVP & CFO

Conference Call Participants

Mark Hughes - Truist Securities

Andrew Kligerman - Credit Suisse

Ryan Krueger - KBW

Jeff Schmitt - William Blair

Daniel Bergman - Jefferies

Operator

Hello everyone and welcome to Primerica’s Second Quarter 2022 Earnings Webcast. My name is Charlie. I'll be coordinating the call today. You'll have the opportunity to ask a question at the end of the presentation. [Operator instructions].

I'll hand over to your host, Nicole Russell, Head of Investor Relations to begin. Nicole, please go ahead.

Nicole Russell

Thank you, Charlie, 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 Chief Executive Officer, Glenn Williams; and our Chief Financial Officer, Alison Rand. Glenn and Alison 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 filings as well as modified by subsequent for 10-Q for a list of risks and uncertainties that could result in 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 non-GAAP measures to their respective GAAP numbers, are included at the end of our press release, and are available on our Investor Relations website.

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

Glenn Williams

Thank you, Nicole, and thanks, everyone, for joining us today. The second quarter reinforced that we're making beyond the influence of the pandemic and see the fundamental strength of our business in action. The complimentary nature of our Term Life and ISP businesses continues to deliver important financial solutions to middle income families.

Starting on Slide 3, adjusted operating revenues of $672 million increased 3% year-over-year, while diluted adjusted operating income per share of $2.86 declined 12%. ROAE was 22.5% for the quarter. To assess the underlying strength of the second quarter results, we have to look through a number of distortions that made year-over-year comparisons difficult. First, last year's Term Life results were heavily impacted by COVID with sales and persistency benefits exceeding the higher death claims incurred.