dailyloe.com – Primerica, listed as NYSE:PRI, continues to be viewed as a buy. The company offers defensive, fee-based cash flows and maintains a strong balance sheet.
Despite facing affordability challenges among its middle-income customer base, Primerica’s investment and savings division is experiencing robust inflows. This comes even as term life sales and the sales force have declined due to consumer pressures.
Primerica’s conservative balance sheet features a 430% RBC ratio, supporting active buybacks that enhance shareholder returns. The company has a secure 1.7% dividend yield and a 4.8% reduction in share count year-over-year.
Currently, Primerica trades at 11.5 times forward earnings, which is below historical multiples. This presents an attractive entry point for investors interested in a lower beta, structurally premium insurer.
Over the past year, shares of Primerica have gained just 5%, reflecting modest performance. Steady results have been delivered, but concerns persist due to the pressures on middle-income consumers.
