TD Cowen has recently increased its price objective for Primerica (PRI) to $326, reaffirming its 'Buy' recommendation. This decision is based on a favorable assessment of the life insurance sector, even with expectations of reduced returns from alternative investments. Primerica demonstrated robust financial performance in the third quarter of 2025, recording a 7% rise in adjusted net operating income, largely due to significant expansion in its Investment and Savings Product division. However, the company's Term Life segment experienced some difficulties.
Primerica, a prominent financial services company, serves middle-income families across the United States and Canada by offering a diverse range of financial products and services. The firm's recent financial results highlight its resilience and strategic focus, particularly within its Investment and Savings Product segment. Despite the broader economic landscape and specific challenges within the Term Life sector, the company continues to attract investor confidence, as evidenced by TD Cowen's upward revision of its price target.
TD Cowen's Updated Outlook for Primerica
TD Cowen's recent analysis of Primerica (PRI) led to an upgraded price target of $326, affirming a 'Buy' rating. This revised forecast is part of a broader preview of the life insurance industry for Q4 2025, where the firm maintains a balanced perspective despite acknowledging potential challenges from decreased alternative investment returns. The strong performance of Primerica's Investment and Savings Product segment, which achieved record sales, played a crucial role in this positive assessment, signaling confidence in the company's growth trajectory and market position. This upward adjustment reflects a belief in Primerica's underlying value and its ability to navigate a dynamic financial environment.
The decision by TD Cowen to raise Primerica's price target to $326 underscores an optimistic view of the company's future prospects within the life insurance and financial services landscape. This valuation adjustment stems from a comprehensive review of the sector, factoring in both market opportunities and potential headwinds. While the broader industry might contend with issues such as lower returns from alternative investments, Primerica's robust performance in its Investment and Savings Product segment, characterized by record sales and substantial asset growth, provides a compelling case for continued investor interest. The firm's strategic positioning and operational strength are key elements supporting this positive outlook.
Primerica's Recent Performance and Segmental Challenges
In the third quarter of 2025, Primerica Inc. (NYSE:PRI) achieved a notable 7% increase in adjusted net operating income, reaching $206 million. This led to an 11% rise in diluted adjusted operating EPS to $6.33. The Investment and Savings Product segment emerged as a significant growth driver, reporting record sales of $3.7 billion, a 28% year-over-year surge, and client asset values totaling $127 billion. This segment's strong performance highlights the company's success in attracting and managing client investments, contributing substantially to its overall profitability and demonstrating its capacity for expansion in key financial areas.
Despite the strong results from its Investment and Savings Product segment, Primerica's Term Life segment encountered considerable obstacles, with new policies issued declining by 15% compared to the previous year. Management attributed this downturn to prevailing cost-of-living pressures and economic uncertainties, which have prompted clients to postpone financial decisions and resulted in higher-than-expected lapse rates. Furthermore, while the company aims to expand its sales force to 153,000 representatives by year-end, recent recruitment and licensing figures indicate a slowdown. These challenges in the Term Life segment underscore the impact of external economic factors on specific areas of Primerica's business, requiring strategic adjustments to mitigate these effects and sustain overall growth.