Equibles

8-K

Primerica, Inc. (PRI)

8-K 2024-11-06 For: 2024-11-06
View Original
Added on April 04, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT (Date of earliest event reported): November 6, 2024

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Primerica, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware 001-34680 27-1204330
(State or other jurisdiction of<br>incorporation) (Commission File Number) (IRS Employer<br>Identification No.)
1 Primerica Parkway<br><br>Duluth, Georgia 30099
(Address of Principal Executive Offices, and Zip Code)

(770) 381-1000

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock PRI New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On November 6, 2024, Primerica, Inc. (the “Company”) announced its results of operations for the quarter ended September 30, 2024. A copy of the press release is attached hereto as Exhibit 99.1.

The information provided pursuant to this Item 2.02, including Exhibit 99.1 in Item 9.01, is “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section, and shall not be incorporated by reference in any filing made by the Company under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), except to the extent expressly set forth by specific reference in any such filings.

Use of Non-GAAP Financial Measures.

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company presents certain non-GAAP financial measures. Specifically, the Company presents adjusted direct premiums, other ceded premiums, adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income, diluted adjusted operating earnings per share and adjusted stockholders’ equity.

Adjusted direct premiums and other ceded premiums are net of amounts ceded under coinsurance transactions that were executed concurrent with our initial public offering (the “IPO coinsurance transactions”) for all periods presented. We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate within this block of business.

Adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income and diluted adjusted operating earnings per share exclude the impact of investment gains (losses), including credit impairments, and fair value mark-to-market (“MTM”) investment adjustments for all periods presented. We exclude investment gains (losses), including credit impairments, and MTM investment adjustments in measuring these non-GAAP financial measures to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains (losses) and market pricing variations prior to an invested asset’s maturity or sale that are not directly associated with the Company’s insurance operations. Also excluded from these non-GAAP financial measures is the receipt of insurance proceeds under a Representation and Warranty policy negotiated and purchased in connection with the acquisition of e-TeleQuote, Inc. (“e-TeleQuote”). We exclude this gain from our non-GAAP financial measures as it represents a non-recurring item that causes incomparability in the Company’s results.

Adjusted operating income before taxes, adjusted net operating income, and diluted adjusted operating earnings per share exclude corporate restructuring and related charges associated with the decision to exit the senior health business. We exclude these items from our non-GAAP financial measures as they are not useful in evaluating the Company’s ongoing operations. Adjusted net operating income and diluted adjusted operating earnings per share also exclude the tax effect of pre-tax operating adjustments and the valuation allowance recognized for e-TeleQuote's state net operating losses. We exclude these items from our non-GAAP financial measures as they represent the tax effect of pre-tax operating adjustments and/or non-recurring items that will cause incomparability between period-over-period results.

Adjusted stockholders’ equity excludes the impact of net unrealized investment gains (losses) recorded in accumulated other comprehensive income (loss) for all periods presented. We exclude unrealized investment gains (losses) in measuring adjusted stockholders’ equity as unrealized gains (losses) from the Company’s available-for-sale securities are largely caused by market movements in

interest rates and credit spreads that do not necessarily correlate with the cash flows we will ultimately realize when an available-for-sale security matures or is sold. Adjusted stockholders’ equity also excludes the difference in future policy benefits calculated using the current discount rate and future policy benefits calculated using the locked-in discount rate at contract issuance recognized in accumulated other comprehensive income. We exclude the impact from the difference in the discount rate in measuring adjusted stockholders' equity as such difference is caused by market movements in interest rates that are not permanent and may not align with the cash flows we will ultimately incur when policy benefits are settled.

Our definitions of these non-GAAP financial measures may differ from the definitions of similar measures used by other companies. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. Furthermore, management believes that these non-GAAP financial measures may provide users with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of the core ongoing business. These measures have limitations and users should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP.

Reconciliations of GAAP to non-GAAP financial measures are included as attachments to the press release which has been posted in the “Investor Relations” section of our website at https://investors.primerica.com.

Item 7.01 Regulation FD Disclosure.

On November 6, 2024, the Company posted to the “Investor Relations” section of its website certain supplemental financial information relating to the quarter ended September 30, 2024. A copy of the supplemental financial information is attached hereto as Exhibit 99.2.

The information provided pursuant to this Item 7.01, including Exhibit 99.2 in Item 9.01, is “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of such section, and shall not be incorporated by reference in any filing made by the Company under the Exchange Act or the Securities Act, except to the extent expressly set forth by specific reference in any such filings.

Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1 Press Release dated November 6, 2024 – Primerica Reports Third Quarter 2024 Results
99.2 Primerica, Inc. Supplemental Financial Information – Third Quarter 2024
104 Cover Page from this Current Report on Form 8-K, formatted in Inline XBRL

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: November 6, 2024 PRIMERICA, INC.
/s/ Tracy Tan
Tracy Tan
Executive Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

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PRIMERICA REPORTS THIRD QUARTER 2024 RESULTS

Life-licensed sales force grew 7% driven by solid recruiting and a 17% increase in new life licenses

Term Life net premiums grew 5%; adjusted direct premiums up 6%

Issued Term Life face amount of $31 billion, up 5%; total in force coverage of $958 billion

Investment and Savings Products sales of $2.9 billion, up 34%

Investment and Savings Products client asset values up 26%, ending the quarter at $111 billion

Net earnings per diluted share from continuing operations (EPS) of $5.72 increased 31% (including a remeasurement gain of $0.52 per diluted share); return on stockholders’ equity (ROE) of 38.3%

Diluted adjusted operating earnings per share of $5.68 increased 28% (including a remeasurement gain of $0.52 per diluted adjusted share); adjusted net operating income return on adjusted stockholders’ equity (ROAE) of 36.5%

Declared dividend of $0.90 per share, payable on December 12, 2024; repurchased $129 million of common stock during the quarter

Duluth, GA, Nov. 6, 2024 – Primerica, Inc. (NYSE: PRI) today announced financial results for the quarter ended September 30, 2024. Total revenues of $774.1 million, increased 11% compared to the third quarter of 2023. Net income from continuing operations of $194.7 million increased 24%, while net earnings per diluted share from continuing operations of $5.72 increased 31% compared to the prior year period.

Comparisons to the prior year period were impacted by the Company’s annual actuarial assumption review, as described below, which resulted in a net remeasurement gain of $23.0 million, or $0.52 after tax earnings per diluted share. The Company recorded a remeasurement gain of $28.2 million in the Term Life segment and a remeasurement loss of $5.2 million in the Corporate and Other Distributed Products segment.

Net income and diluted earnings per share, including discontinued operations, were $164.4 million and $4.83, respectively during the third quarter of 2024 compared to $152.1 million and $4.23, respectively in the prior year period. On September 30, 2024, the Company exited its senior health business by permanently surrendering and relinquishing its rights to e-TeleQuote Insurance, Inc. with no significant continuing involvement. Consequently, the senior health business’ financial results have been reported in discontinued operations for all periods presented.

Adjusted operating revenues of $770.1 million increased 10% compared to the third quarter of 2023. Adjusted net operating income of $193.2 million increased 21%, while adjusted operating earnings per diluted share of $5.68 grew 28% year-over-year. Comparisons to the prior year period were impacted by the Company’s annual actuarial assumption review, as described above. A reconciliation of non-GAAP to GAAP financial measures is included at the end of this release.

Distribution results during the third quarter were strong, driven by sustained recruiting momentum and growth in new life-licensed representatives. Financial results in the Term Life segment, excluding the remeasurement gain, benefited from continued strong sales and stable margins. Results in the Investment and Savings Products segment were positively impacted by favorable equity market conditions, which fueled sales growth and higher client asset values.

“Our results continue to reflect the power of Primerica’s distribution model as we meet the increasing financial needs of middle-income families,” said Glenn Williams, Chief Executive Officer of Primerica, Inc. “In the third quarter, we were able to successfully leverage the momentum created by our convention in July 2024 to accelerate growth.”

Third Quarter Distribution & Segment Results

Distribution Results
Q3 2024 Q3 2023 % Change
Life-Licensed Sales Force 148,890 139,053 7 %
Recruits 142,655 92,269 55 %
New Life-Licensed Representatives 14,349 12,311 17 %
Life Insurance Policies Issued 93,377 88,589 5 %
Life Productivity (1) 0.21 0.21 *
Issued Term Life Face Amount ($ billions) (2) $ 30.8 $ 29.5 5 %
ISP Product Sales ($ billions) $ 2.9 $ 2.2 34 %
Average Client Asset Values ($ billions) $ 108.2 $ 91.5 18 %
Closed U.S. Mortgage Volume ($ million brokered) $ 105.4 $ 82.7 27 %
  • Life productivity equals the average monthly policies issued divided by the average number of life insurance licensed representatives.
  • Includes face amount on issued term life policies, additional riders added to existing policies, and face increases under increasing benefit riders.

* Not calculated

Segment Results
Q3 2024 Q3 2023 % Change
( in thousands)
Adjusted Operating Revenues:
Term Life Insurance $ 428,772 5 %
Investment and Savings Products 218,898 22 %
Corporate and Other Distributed Products (1) 52,102 3 %
Total adjusted operating revenues (1) $ 699,772 10 %
Adjusted Operating Income (Loss) before <br>  income taxes:
Term Life Insurance $ 141,222 26 %
Investment and Savings Products 64,373 24 %
Corporate and Other Distributed Products (1) ) 3,065 NM
Total adjusted operating income before income taxes (1) $ 208,660 21 %

All values are in US Dollars.

  • See the Non-GAAP Financial Measures section and the Adjusted Operating Results reconciliation tables at the end of this release for additional information.

Life Insurance Licensed Sales Force

The Company introduced new recruiting incentives for July and the beginning of August to further the momentum created at the convention. This led to a record number of new recruits and a 17% increase in the number of new licenses. During the third quarter, a total of 142,655 new recruits became part of Primerica and 14,349 individuals obtained a new life license. The size of the sales force increased 7% year-over-year, for a total of 148,890 life-licensed representatives as of September 30, 2024.

Term Life Insurance

During the third quarter of 2024, the Company issued 93,377 new life insurance policies, up 5% year-over-year. Productivity as measured by the average monthly rate of new policies issued per life-licensed independent sales representative remained unchanged at 0.21.

Third quarter revenues of $450.3 million increased 5% compared to the third quarter of 2023 driven by 6% growth in adjusted direct premiums. Income before income taxes of $178.4 million in the current year period included a $28.2 million remeasurement gain primarily due to an assumption change stemming from the ongoing decline in disability incidence rates under our waiver of premium rider, resulting in a 26% increase year over year and a benefits and claims ratio of 53.2%. Excluding the impact of the remeasurement gain, the benefits and claims ratio would have been 57.6%. The DAC amortization and insurance commissions ratio at 11.9% and the insurance expense ratio at 7.4% remained stable year-over-year. The Term Life Insurance operating margin at 27.5% was favorably impacted by the remeasurement gain in the current year period. Excluding the impact of the remeasurement gain, the Term Life Insurance operating margin would have been 23.1%.

Investment and Savings Products

Ending client asset values continued to benefit from strong equity market appreciation, ending the quarter at $111.2 billion, up 26% compared to the prior year period. Total product sales during the quarter were $2.9 billion, up 34% year-over-year, driven by strong investor demand for mutual funds, annuities and managed accounts, likely influenced by strong equity market performance. Net client inflows during the quarter were $444 million.

Third quarter revenues of $266.1 million increased 22% compared to the prior year period, while income before income taxes of $79.9 million increased 24%. Revenues from sales-based commissions and fees increased 32%, while sales-based commission expenses increased 27%. Revenue growth slightly outpaced correlated product sales due to continued strong client demand for variable annuities, on which we earn higher up-front fees. Asset-based revenues increased 19%, largely consistent with the growth in average client asset values. The change in asset-based commission expenses was in line with asset-based revenues.

Corporate and Other Distributed Products

During the third quarter of 2024, the segment recorded a pre-tax adjusted operating loss of $5.7 million compared to pre-tax adjusted operating income of $3.1 million in the prior year period. The year-over-year decline was primarily due to a $5.2 million remeasurement loss on a closed book of non-term life insurance business, lower revenues from certain other distributed products and growth in other operating expenses. This was partly offset by higher net investment income ("NII") due to higher yields on investments and growth in the size of the portfolio.

Taxes

The effective tax rate from continuing operations remained largely unchanged at 23.5% in the third quarter of 2024 compared to 23.7% in the prior year period.

Capital

The Company repurchased 510,911 shares of common stock for $128.8 million during the third quarter of 2024 and the Board of Directors has approved a dividend of $0.90 per share, payable on December 12, 2024 to stockholders of record on November 21, 2024. Primerica Life Insurance Company’s statutory risk-based capital (RBC) ratio was estimated to be about 440% as of September 30, 2024.

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company presents certain non-GAAP financial measures. Specifically, the Company presents adjusted direct premiums, other ceded premiums, adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income, diluted adjusted operating earnings per share and adjusted stockholders' equity.

Adjusted direct premiums and other ceded premiums are net of amounts ceded under coinsurance transactions that were executed concurrent with our initial public offering (the “IPO coinsurance transactions”) for all periods presented. We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate within this block of business.

Adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income and diluted adjusted operating earnings per share exclude the impact of investment gains (losses), including credit impairments, and fair value mark-to-market (“MTM”) investment adjustments for all periods presented. We exclude investment gains (losses), including credit impairments, and MTM investment adjustments in measuring these non-GAAP financial measures to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the

timing of recognizing gains (losses) and market pricing variations prior to an invested asset’s maturity or sale that are not directly associated with the Company’s insurance operations.

Adjusted operating income before taxes, adjusted net operating income, and diluted adjusted operating earnings per share exclude corporate restructuring and related charges associated with the decision to exit the senior health business. We exclude these items from our non-GAAP financial measures as they are not useful in evaluating the Company’s ongoing operations. Adjusted net operating income and diluted adjusted operating earnings per share also exclude the tax effect of pre-tax operating adjustments. We exclude these items from our non-GAAP financial measures as they represent the tax effect of pre-tax operating adjustments and/or non-recurring items that will cause incomparability between period-over-period results.

Adjusted stockholders’ equity excludes the impact of net unrealized investment gains (losses) recorded in accumulated other comprehensive income (loss) for all periods presented. We exclude unrealized investment gains (losses) in measuring adjusted stockholders’ equity as unrealized gains (losses) from the Company’s available-for-sale securities are largely caused by market movements in interest rates and credit spreads that do not necessarily correlate with the cash flows we will ultimately realize when an available-for-sale security matures or is sold. Adjusted stockholders’ equity also excludes the difference in future policy benefits calculated using the current discount rate and future policy benefits calculated using the locked-in discount rate at contract issuance recognized in accumulated other comprehensive income (loss). We exclude the impact from the difference in the discount rate in measuring adjusted stockholders' equity as such difference is caused by market movements in interest rates that are not permanent and may not align with the cash flows we will ultimately incur when policy benefits are settled.

Our definitions of these non-GAAP financial measures may differ from the definitions of similar measures used by other companies. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. Furthermore, management believes that these non-GAAP financial measures may provide users with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of the core ongoing business. These measures have limitations and users should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Reconciliations of GAAP to non-GAAP financial measures are attached to this release.

Earnings Webcast Information

Primerica will hold a webcast on Thursday, November 7, 2024, at 10:00 a.m. Eastern, to discuss the quarter’s results. To access the webcast, go to

https://investors.primerica.com at least 15 minutes prior to the event to register, download and install any necessary software. A replay of the call will be available for approximately 30 days. This release and a detailed financial supplement will be posted on Primerica’s website.

Forward-Looking Statements

Except for historical information contained in this press release, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from anticipated or projected results. Those risks and uncertainties include, among others, our failure to continue to attract and license new recruits, retain sales representatives or license or maintain the licensing of sales representatives; new laws or regulations that could apply to our distribution model, which could require us to modify our distribution structure; changes to the independent contractor status of sales representatives; our or sales representatives’ violation of or non-compliance with laws and regulations; litigation and regulatory investigations and actions concerning us or sales representatives; differences between our actual experience and our expectations regarding mortality, persistency, disability or insurance as reflected in the pricing for our insurance policies; changes in federal, state and provincial legislation or regulation that affects our insurance, investment product and mortgage businesses; our failure to meet regulatory capital ratios or other minimum capital and surplus requirements; a significant downgrade by a ratings organization; the failure of our reinsurers or reserve financing counterparties to perform their obligations; the failure of our investment products to remain competitive with other investment options or the loss of our relationship with one or more of the companies whose investment products we provide; heightened standards of conduct or more stringent licensing requirements for sales representatives; inadequate policies and procedures regarding suitability review of client transactions; revocation of our subsidiary’s status as a non-bank custodian; a significant change to or disruption in the mortgage lenders’ mortgage businesses or an inability of the mortgage lenders to satisfy their contractual obligations to us; economic downcycles that impact our business, financial condition and results of operations; major public health pandemics, epidemics or outbreaks or other catastrophic events; the failure of our or a third-party partner’s information technology systems, breach of our information security, failure of our business continuity plan or the loss of the Internet; any failure to protect the confidentiality of client information; the current legislative and regulatory climate with regard to privacy and cybersecurity; cyber-attack(s), security breaches; the effects of credit deterioration and interest rate fluctuations on our invested asset portfolio and other assets; incorrectly valuing our investments; changes in accounting standards may impact how we record and report our financial condition and results of operations; the inability of our subsidiaries to pay dividends or make distributions; litigation and regulatory investigations and actions; a significant change in the competitive environment in which we operate; the loss of key personnel or sales force leaders; the efficiency and success of business initiatives to enhance our technology, products and services; any acquisition or investment in

businesses that do not perform as we expect or are difficult to integrate; and fluctuations in the market price of our common stock or Canadian currency exchange rates. These and other risks and uncertainties affecting us are more fully described in our filings with the Securities and Exchange Commission, which are available in the "Investor Relations" section of our website at https://investors.primerica.com. Primerica assumes no duty to update its forward-looking statements as of any future date.

About Primerica, Inc.

Primerica, Inc., headquartered in Duluth, GA, is a leading provider of financial products and services to middle-income households in North America. Independent licensed representatives educate Primerica clients about how to better prepare for a more secure financial future by assessing their needs and providing appropriate solutions through term life insurance, which we underwrite, and mutual funds, annuities and other financial products, which we distribute primarily on behalf of third parties. We insured approximately 5.7 million lives and had approximately 2.9 million client investment accounts on December 31, 2023. Primerica, through its insurance company subsidiaries, was the #2 issuer of Term Life insurance coverage in the United States and Canada in 2023. Primerica stock is included in the S&P MidCap 400 and the Russell 1000 stock indices and is traded on The New York Stock Exchange under the symbol “PRI”.

Investor Contact:

Nicole Russell

470-564-6663 Email: Nicole.Russell@primerica.com

Media Contact:

Susan Chana

404-229-8302

Email: Susan.Chana@Primerica.com

PRIMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
September 30, 2024 December 31, 2023
(In thousands)
Assets
Investments:
Fixed-maturity securities available-for-sale, at fair value $ 2,994,955 $ 2,719,467
Fixed-maturity security held-to-maturity, at amortized cost 1,330,430 1,386,980
Short-term investments available-for-sale, at fair value - 276
Equity securities, at fair value 28,411 29,680
Trading securities, at fair value 3,235 18,383
Policy loans and other invested assets 52,842 51,175
Total investments 4,409,873 4,205,961
Cash and cash equivalents 550,142 594,148
Accrued investment income 26,389 23,958
Reinsurance recoverables 2,873,528 3,015,777
Deferred policy acquisition costs, net 3,636,964 3,447,234
Agent balances, due premiums and other receivables 300,697 269,216
Intangible assets, net 45,275 45,275
Income taxes 128,479 120,035
Operating lease right-of-use assets 48,190 51,506
Other assets 394,494 439,940
Separate account assets 2,401,137 2,395,842
Assets from discontinued operations entities - 418,840
Total assets $ 14,815,168 $ 15,027,732
Liabilities and Stockholders' Equity
Liabilities:
Future policy benefits $ 6,919,418 $ 6,742,025
Unearned and advance premiums 16,186 14,876
Policy claims and other benefits payable 496,835 513,803
Other policyholders' funds 398,464 435,094
Note payable 594,311 593,709
Surplus note 1,330,090 1,386,592
Income taxes 20,524 76,257
Operating lease liabilities 56,930 58,893
Other liabilities 549,209 579,045
Payable under securities lending 85,236 99,785
Separate account liabilities 2,401,137 2,395,842
Liabilities from discontinued operations entities - 65,844
Total liabilities 12,868,340 12,961,765
Stockholders' equity
Common stock 335 350
Paid-in capital - -
Retained earnings 2,132,015 2,276,946
Accumulated other comprehensive income (loss), net of income tax:
Effect of change in discount rate assumptions on the liability for future policy benefits (71,241 ) (39,086 )
Unrealized foreign currency translation gains (losses) (10,771 ) (2,235 )
Net unrealized gains (losses) on available-for-sale securities (103,510 ) (170,008 )
Total stockholders' equity 1,946,828 2,065,967
Total liabilities and stockholders' equity $ 14,815,168 $ 15,027,732
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- ---
Condensed Consolidated Statements of Income
(Unaudited)
Three months ended September 30,
2024 2023
(In thousands, except per-share amounts)
Revenues:
Direct premiums $ 852,452 $ 831,681
Ceded premiums (412,645 ) (411,015 )
Net premiums 439,807 420,666
Commissions and fees 271,901 227,514
Net investment income 41,109 34,730
Investment gains (losses) 2,209 (1,795 )
Other, net 19,103 16,381
Total revenues 774,129 697,496
Benefits and expenses:
Benefits and claims 164,363 162,062
Future policy benefits remeasurement (gain) loss (23,019 ) 179
Amortization of deferred policy acquisition costs 75,539 69,405
Sales commissions 142,254 116,200
Insurance expenses 63,529 57,821
Insurance commissions 7,180 7,911
Interest expense 6,093 6,632
Other operating expenses 83,612 70,902
Total benefits and expenses 519,551 491,112
Income from continuing operations before income taxes 254,578 206,384
Income taxes from continuing operations 59,841 48,930
Income from continuing operations 194,737 157,454
Loss from discontinued operations, net of income tax (30,364 ) (5,391 )
Net income $ 164,373 $ 152,063
Basic earnings per share:
Continuing operations $ 5.73 $ 4.38
Discontinued operations (0.89 ) (0.15 )
Basic earnings per share $ 4.84 $ 4.23
Diluted earnings per share:
Continuing operations $ 5.72 $ 4.38
Discontinued operations (0.89 ) (0.15 )
Diluted earnings per share $ 4.83 $ 4.23
Weighted-average shares used in computing <br>  earnings per share:
Basic 33,834 35,760
Diluted 33,891 35,822
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- --- --- --- ---
Consolidated Adjusted Operating Results Reconciliation
(Unaudited)
Three months ended September 30,
2024 2023 % Change
(In thousands, except per-share amounts)
Total revenues $ 774,129 $ 697,496 11 %
Less: Investment (losses) gains 2,209 (1,795 )
Less: 10% deposit asset MTM included in NII 1,830 (481 )
Adjusted operating revenues $ 770,090 $ 699,772 10 %
Income from continuing operations before income taxes $ 254,578 $ 206,384 23 %
Less: Investment (losses) gains 2,209 (1,795 )
Less: 10% deposit asset MTM included in NII 1,830 (481 )
Less: Restructuring costs (2,013 ) -
Adjusted operating income before income taxes $ 252,552 $ 208,660 21 %
Income from continuing operations $ 194,737 $ 157,454 24 %
Less: Investment (losses) gains 2,209 (1,795 )
Less: 10% deposit asset MTM included in NII 1,830 (481 )
Less: Restructuring costs (2,013 ) -
Less: Tax impact of preceding items (476 ) 535
Adjusted net operating income $ 193,187 $ 159,195 21 %
Diluted earnings per share from continuing operations $ 5.72 $ 4.38 31 %
Less: Net after-tax impact of operating adjustments 0.04 (0.05 )
Diluted adjusted operating earnings per share $ 5.68 $ 4.43 28 %
TERM LIFE INSURANCE SEGMENT
--- --- --- --- --- --- --- --- --- ---
Adjusted Premiums Reconciliation
(Unaudited)
Three months ended September 30,
2024 2023 % Change
(In thousands)
Direct premiums $ 847,626 $ 826,665 3 %
Less: Premiums ceded to IPO coinsurers 198,726 212,951
Adjusted direct premiums 648,900 613,714 6 %
Ceded premiums (411,526 ) (409,801 )
Less: Premiums ceded to IPO coinsurers (198,726 ) (212,951 )
Other ceded premiums (212,800 ) (196,850 )
Net premiums $ 436,100 $ 416,864 5 %
CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT
--- --- --- --- --- --- --- --- --- ---
Adjusted Operating Results Reconciliation
(Unaudited)
Three months ended September 30,
2024 2023 % Change
(In thousands)
Total revenues $ 57,750 $ 49,826 16 %
Less: Investment gains (losses) 2,209 (1,795 )
Less: 10% deposit asset MTM included in NII 1,830 (481 )
Adjusted operating revenues $ 53,711 $ 52,102 3 %
Income (loss) before income taxes $ (3,687 ) $ 789 NM
Less: Investment gains (losses) 2,209 (1,795 )
Less: 10% deposit asset MTM included in NII 1,830 (481 )
Less: Restructuring costs (2,013 ) -
Adjusted operating income (loss) before income taxes $ (5,713 ) $ 3,065 NM
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- --- --- --- ---
Adjusted Stockholders' Equity Reconciliation
(Unaudited)
September 30, 2024 December 31, 2023 % Change
(In thousands)
Stockholders' equity $ 1,946,828 $ 2,065,967 (6 )%
Less: Net unrealized gains (losses) (103,510 ) (170,008 )
Less: Effect of change in discount rate assumptions <br>              on the liability for future policy benefits (71,241 ) (39,086 )
Adjusted stockholders' equity $ 2,121,579 $ 2,275,061 (7 )%

EX-99.2

Exhibit 99.2

img165194719_0.jpg

Supplemental Financial Information

Third Quarter 2024

Table of Contents PRIMERICA, INC.<br><br>Financial Supplement
Page
--- ---
Preface, definition of non-GAAP financial measures 3
Condensed balance sheets and reconciliation of balance sheet non-GAAP to GAAP financial measures 4
Financial results and other statistical data 5
Statements of income 6
Reconciliation of statement of income GAAP to non-GAAP financial measures 7-8
Segment operating results
Term Life Insurance segment - financial results, financial analysis, and key statistics 9-10
Investment and Savings Products segment - financial results, financial analysis, and key statistics 11-12
Corporate & Other Distributed Products segment - financial results 13
Investment portfolio 14-16
Five-year historical key statistics 17

This document may contain forward-looking statements and information. Additional information and factors that could cause actual results to differ materially from any forward-looking statements or information in this document is available in our Form 10-K for the year ended December 31, 2023.

2 of 17

Preface PRIMERICA, INC.<br><br>Financial Supplement

Third Quarter 2024

This document is a financial supplement to our third quarter 2024 earnings release. It is designed to enable comprehensive analysis of our ongoing business using the same core metrics that our management utilizes in assessing our business and making strategic and operational decisions. Throughout this document we provide financial information that is derived from our U.S. GAAP financial statements for continuing operations and adjusted for three different purposes, as follows:

•Operating adjustments exclude the impact of investment gains/losses, including credit impairments and mark-to-market (MTM) investment adjustments. We exclude investment gains/losses, including credit impairments, and MTM investment adjustments in measuring adjusted operating revenues to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains and losses and other factors prior to an invested asset's maturity or sale that are not directly associated with the Company's insurance operations. Operating adjustments also exclude the gain recognized for insurance proceeds from a Representation and Warranty insurance policy negotiated and purchased in connection with the acquisition of e-TeleQuote Insurance, Inc. (e-TeleQuote). We exclude this as it represents a non-recurring item that causes incomparability in the Company’s results. Operating adjustments also exclude corporate restructuring and related charges associated with the decision to exit the senior health business. We exclude these charges as they are not useful in evaluating the Company’s ongoing operations. Adjusted net operating income and diluted adjusted operating earnings per share also exclude the tax effect of pre-tax operating adjustments and the valuation allowance recognized for e-TeleQuote's state net operating losses (NOLs). We exclude these items from our non-GAAP financial measures as they represent the tax effect of pre-tax operating adjustments and/or non-recurring items that will cause incomparability between period-over-period results.

•Adjusted stockholders’ equity refers to the removal of the impact of net unrealized gains and losses on invested assets. We exclude unrealized investment gains and losses in measuring adjusted stockholders' equity as unrealized gains and losses from the Company's invested assets are largely caused by market movements in interest rates and credit spreads that do not necessarily correlate with the cash flows we will ultimately realize when an invested asset matures or is sold. Adjusted stockholders' equity also excludes the difference in future policy benefits calculated using the current discount rate and future policy benefits calculated using the locked-in discount rate at contract issuance recognized in accumulated other comprehensive income. We exclude the impact from the difference in the discount rate in measuring adjusted stockholders' equity as it is caused by market movements in interest rates that are not permanent and may not align with the cash flow we will ultimately incur when policy benefits are settled.

•IPO coinsurance transactions adjustments relate to transactions in the first quarter of 2010, where we coinsured between 80% and 90% of our business that was in-force at year-end 2009 to entities then affiliated with Citigroup Inc. that were executed concurrent with our initial public offering (IPO). We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate within this block of business.

Management utilizes these non-GAAP financial measures in managing the business and believes they present relevant and meaningful analytical metrics for evaluating the ongoing business. Reconciliations of non-GAAP to GAAP financial measures are included in this financial supplement.

Certain items throughout this supplement may not add due to rounding and as such, may not agree to other public reporting of the respective item. Certain items throughout this supplement are noted as ‘na’ to indicate not applicable. Certain variances are noted as ‘nm’ to indicate not meaningful. Certain reclassifications have been made to prior-period amounts to conform to current-period reporting classifications, primarily related to the presentation of the senior health business’ results of operations as discontinued operations on the Company’s statements of income. However, balance sheet amounts have not been restated for prior periods to separately present the assets and liabilities related to discontinued operations, which primarily included goodwill, other assets and income taxes. These reclassifications had no impact on net income or total stockholders’ equity.

3 of 17

Balance Sheets and Reconciliation of Balance Sheet Non-GAAP to GAAP Financial Measures PRIMERICA, INC.<br><br>Financial Supplement
(Dollars in thousands) Mar 31,<br>2023 Jun 30,<br>2023 Sep 30,<br>2023 Dec 31,<br>2023 Mar 31,<br>2024 Jun 30,<br>2024 Sep 30,<br>2024 Dec 31,<br>2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Balance Sheets
Assets:
Investments and cash excluding securities held to maturity $ 3,246,388 $ 3,226,056 $ 3,174,938 $ 3,432,129 $ 3,456,543 $ 3,502,298 $ 3,629,584
Securities held to maturity 1,460,000 1,433,520 1,417,460 1,386,980 1,376,400 1,353,370 1,330,430
Total investments and cash 4,706,388 4,659,576 4,592,398 4,819,109 4,832,943 4,855,668 4,960,014
Reinsurance recoverables 3,217,354 3,084,520 2,954,245 3,015,777 2,920,417 2,833,055 2,873,528
Deferred policy acquisition costs 3,250,753 3,319,844 3,374,627 3,447,234 3,503,940 3,566,126 3,636,964
Goodwill 127,707 127,707 127,707 127,707 127,707 — —
Other assets 1,191,286 1,201,266 1,200,647 1,222,064 1,189,436 1,056,890 943,524
Separate account assets 2,329,968 2,358,823 2,183,435 2,395,842 2,334,911 2,253,966 2,401,137
Total assets $ 14,823,457 $ 14,751,736 $ 14,433,059 $ 15,027,732 $ 14,909,354 $ 14,565,704 $ 14,815,167
Liabilities:
Future policy benefits $ 6,561,624 $ 6,491,564 $ 6,045,151 $ 6,742,025 $ 6,548,050 $ 6,436,332 $ 6,919,418
Other policy liabilities 996,747 970,198 938,665 963,773 954,350 908,419 911,485
Income taxes 201,850 169,487 227,866 135,248 197,714 135,050 20,524
Other liabilities 659,734 642,149 636,927 644,792 641,836 672,058 606,139
Debt obligations 593,106 593,307 593,508 593,709 593,909 594,110 594,311
Surplus note 1,459,565 1,433,101 1,417,056 1,386,592 1,376,028 1,353,014 1,330,090
Payable under securities lending 74,452 77,643 77,956 99,785 76,648 90,995 85,236
Separate account liabilities 2,329,968 2,358,823 2,183,435 2,395,842 2,334,911 2,253,966 2,401,137
Total liabilities 12,877,046 12,736,272 12,120,564 12,961,765 12,723,446 12,443,945 12,868,340
Stockholders’ equity:
Common stock (0.01 par value) (1) 364 358 353 350 346 340 335
Paid-in capital — — — — — — —
Retained earnings 2,177,428 2,190,223 2,215,378 2,276,947 2,285,944 2,122,839 2,132,015
Treasury stock — — — — — — —
Accumulated other comprehensive income (loss), net:
(208,157 ) (226,250 ) (269,604 ) (170,008 ) (181,537 ) (187,346 ) (103,510 )
(11,966 ) 55,386 377,637 (39,086 ) 92,853 201,441 (71,241 )
(11,259 ) (4,253 ) (11,269 ) (2,235 ) (11,698 ) (15,514 ) (10,771 )
Total stockholders’ equity 1,946,411 2,015,464 2,312,495 2,065,967 2,185,908 2,121,759 1,946,827
Total liabilities and stockholders' equity $ 14,823,457 $ 14,751,736 $ 14,433,059 $ 15,027,732 $ 14,909,354 $ 14,565,704 $ 14,815,167
Reconciliation of Total Stockholders' Equity to Adjusted Stockholders' Equity
Total stockholders' equity $ 1,946,411 $ 2,015,464 $ 2,312,495 $ 2,065,967 $ 2,185,908 $ 2,121,759 $ 1,946,827
Less: Net unrealized gains (losses) (208,157 ) (226,250 ) (269,604 ) (170,008 ) (181,537 ) (187,346 ) (103,510 )
Less: Effect of change in discount rate assumptions on the liability for future policy benefits (11,966 ) 55,386 377,637 (39,086 ) 92,853 201,441 (71,241 )
Adjusted stockholders’ equity $ 2,166,533 $ 2,186,328 $ 2,204,462 $ 2,275,062 $ 2,274,592 $ 2,107,665 $ 2,121,579
Adjusted Stockholders' Equity Rollforward
Balance, beginning of period $ 2,141,707 $ 2,166,533 $ 2,186,328 $ 2,204,462 $ 2,275,062 $ 2,274,592 $ 2,107,665
Net Income 128,099 144,504 152,063 151,935 137,904 1,171 164,373
Shareholder dividends (23,910 ) (23,598 ) (23,336 ) (22,870 ) (26,256 ) (25,835 ) (30,515 )
Retirement of shares and warrants (96,323 ) (112,606 ) (106,479 ) (72,886 ) (116,563 ) (142,744 ) (129,672 )
Net foreign currency translation adjustment 1,020 7,005 (7,016 ) 9,035 (9,463 ) (3,817 ) 4,744
Other, net 15,941 4,490 2,902 5,386 13,909 4,297 4,986
Balance, end of period $ 2,166,533 $ 2,186,328 $ 2,204,462 $ 2,275,062 $ 2,274,592 $ 2,107,665 $ 2,121,579
Deferred Policy Acquisition Costs Rollforward
Balance, beginning of period $ 3,188,502 $ 3,250,753 $ 3,319,844 $ 3,374,627 $ 3,447,234 $ 3,503,940 $ 3,566,126
General expenses deferred 10,777 10,692 10,764 9,910 11,156 11,235 11,424
Commission costs deferred 118,386 119,676 119,976 125,335 125,811 127,800 130,964
Amortization of deferred policy acquisition costs (67,923 ) (68,110 ) (69,405 ) (70,378 ) (72,049 ) (73,643 ) (75,539 )
Foreign currency impact and other, net 1,011 6,833 (6,551 ) 7,739 (8,211 ) (3,207 ) 3,988
Balance, end of period $ 3,250,753 $ 3,319,844 $ 3,374,627 $ 3,447,234 $ 3,503,940 $ 3,566,126 $ 3,636,964

All values are in US Dollars.

  • Outstanding common shares exclude restricted stock units.

4 of 17

Financial Results and Other Statistical Data PRIMERICA, INC.<br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except per-share data) Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Q1<br>2024 Q2<br>2024 Q3<br>2024 Q4<br>2024 Change %<br>Change YTD 2023 YTD 2024 Change %<br>Change
Earnings per Share
Basic earnings per share:
Weighted-average common shares and fully vested equity awards 36,709,525 36,215,232 35,760,090 35,148,919 34,882,824 34,383,344 33,834,080 ) -5.4 % 36,224,804 34,364,805 ) -5.1 %
Net income from continuing operations $ 130,820 $ 149,140 $ 157,453 $ 153,769 $ 148,414 $ 209,301 $ 194,737 23.7 % $ 437,413 $ 552,452 26.3 %
Less income attributable to unvested participating securities (589 ) (625 ) (662 ) (655 ) (608 ) (96 ) (704 ) ) -6.4 % (1,880 ) (1,871 ) 0.4 %
Net income used in computing basic EPS $ 130,232 $ 148,515 $ 156,791 $ 153,114 $ 147,806 $ 209,205 $ 194,033 23.8 % $ 435,533 $ 550,580 26.4 %
Basic earnings per share $ 3.55 $ 4.10 $ 4.38 $ 4.36 $ 4.24 $ 6.08 $ 5.73 30.8 % $ 12.02 $ 16.02 33.3 %
Adjusted net operating income $ 134,605 $ 150,042 $ 159,194 $ 152,188 $ 147,515 $ 170,964 $ 193,187 21.4 % $ 443,841 $ 511,665 15.3 %
Less operating income attributable to unvested participating securities (608 ) (632 ) (673 ) (649 ) (612 ) (634 ) (719 ) ) -6.9 % (1,917 ) (1,976 ) ) -3.1 %
Adjusted net operating income used in computing basic operating EPS $ 133,997 $ 149,410 $ 158,522 $ 151,539 $ 146,902 $ 170,330 $ 192,467 21.4 % $ 441,925 $ 509,689 15.3 %
Basic adjusted operating income per share $ 3.65 $ 4.13 $ 4.43 $ 4.31 $ 4.21 $ 4.95 $ 5.69 28.4 % $ 12.20 $ 14.83 21.6 %
Diluted earnings per share:
Weighted-average common shares and fully vested equity awards 36,709,525 36,215,232 35,760,090 35,148,919 34,882,824 34,383,344 33,834,080 ) -5.4 % 36,224,804 34,364,805 ) -5.1 %
Dilutive impact of contingently issuable shares 94,123 74,712 62,182 59,473 53,938 56,591 56,960 ) -8.4 % 77,006 55,830 ) -27.5 %
Shares used to calculate diluted EPS 36,803,648 36,289,944 35,822,272 35,208,392 34,936,762 34,439,935 33,891,040 ) -5.4 % 36,301,810 34,420,635 ) -5.2 %
Net income from continuing operations $ 130,820 $ 149,140 $ 157,453 $ 153,769 $ 148,414 $ 209,301 $ 194,737 23.7 % $ 437,413 $ 552,452 26.3 %
Less income attributable to unvested participating securities (587 ) (624 ) (661 ) (654 ) (607 ) (96 ) (703 ) ) -6.4 % (1,877 ) (1,869 ) 0.4 %
Net income used in computing diluted EPS $ 130,233 $ 148,516 $ 156,792 $ 153,115 $ 147,807 $ 209,205 $ 194,034 23.8 % $ 435,537 $ 550,583 26.4 %
Diluted earnings per share $ 3.54 $ 4.09 $ 4.38 $ 4.35 $ 4.23 $ 6.07 $ 5.72 30.6 % $ 12.00 $ 16.00 33.3 %
Adjusted net operating income $ 134,605 $ 150,042 $ 159,194 $ 152,188 $ 147,515 $ 170,964 $ 193,187 21.4 % $ 443,841 $ 511,665 15.3 %
Less operating income attributable to unvested participating securities (607 ) (631 ) (672 ) (648 ) (612 ) (633 ) (718 ) ) -6.9 % (1,913 ) (1,974 ) ) -3.2 %
Adjusted net operating income used in computing diluted operating EPS $ 133,998 $ 149,411 $ 158,523 $ 151,540 $ 146,903 $ 170,330 $ 192,468 21.4 % $ 441,928 $ 509,691 15.3 %
Diluted adjusted operating income per share $ 3.64 $ 4.12 $ 4.43 $ 4.30 $ 4.20 $ 4.95 $ 5.68 28.2 % $ 12.17 $ 14.81 21.7 %
Annualized Return on Equity
Average stockholders' equity $ 1,988,832 $ 1,980,938 $ 2,163,980 $ 2,189,231 $ 2,125,938 $ 2,153,834 $ 2,034,293 ) -6.0 % $ 2,044,583 $ 2,104,688 2.9 %
Average adjusted stockholders' equity $ 2,154,120 $ 2,176,431 $ 2,195,395 $ 2,239,762 $ 2,274,827 $ 2,191,128 $ 2,114,622 ) -3.7 % $ 2,175,315 $ 2,193,526 0.8 %
Net income from continuing ops return on stockholders' equity 26.3 % 30.1 % 29.1 % 28.1 % 27.9 % 38.9 % 38.3 % % nm 28.5 % 35.0 % % nm
Net income from continuing ops return on adjusted stockholders' equity 24.3 % 27.4 % 28.7 % 27.5 % 26.1 % 38.2 % 36.8 % % nm 26.8 % 33.6 % % nm
Adjusted net operating income return on adjusted stockholders' equity 25.0 % 27.6 % 29.0 % 27.2 % 25.9 % 31.2 % 36.5 % % nm 27.2 % 31.1 % % nm
Capital Structure
Debt-to-capital (1) 23.4 % 22.7 % 20.4 % 22.3 % 21.4 % 21.9 % 23.4 % % nm 20.4 % 23.4 % % nm
Debt-to-capital, excluding AOCI (1) 21.4 % 21.3 % 21.1 % 20.7 % 20.6 % 21.9 % 21.8 % % nm 21.1 % 21.8 % % nm
Cash and invested assets to stockholders' equity 2.4 x 2.3 x 2.0 x 2.3 x 2.2 x 2.3 x 2.5 x x nm 2.0 x 2.5 x x nm
Cash and invested assets to adjusted stockholders' equity 2.2 x 2.1 x 2.1 x 2.1 x 2.1 x 2.3 x 2.3 x x nm 2.1 x 2.3 x x nm
Share count, end of period (2) 36,407,876 35,845,525 35,342,474 34,995,613 34,609,005 33,993,897 33,508,129 ) -5.2 % 35,342,474 33,508,129 ) -5.2 %
Adjusted stockholders' equity per share $ 59.51 $ 60.99 $ 62.37 $ 65.01 $ 65.72 $ 62.00 $ 63.32 1.5 % $ 62.37 $ 63.32 1.5 %
Financial Strength Ratings - Primerica Life Insurance Co
Moody's A1 A1 A1 A1 A1 A1 A1 na na na na na na
S&P AA- AA- AA- AA- AA- AA- AA- na na na na na na
A.M. Best A+ A+ A+ A+ A+ A+ A+ na na na na na na
Holding Company Senior Debt Ratings
Moody's Baa1 Baa1 Baa1 Baa1 Baa1 Baa1 Baa1 na na na na na na
S&P A- A- A- A- A- A- A- na na na na na na
A.M. Best a- a- a- a- a- a- a- na na na na na na

All values are in US Dollars.

  • Debt-to-capital is that of the parent company only. Capital in the debt-to-capital ratio includes stockholders' equity and the note payable.
  • Share count reflects outstanding common shares, which excludes restricted stock units (RSUs).

5 of 17

Statements of Income PRIMERICA, INC.<br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Q1<br>2024 Q2<br>2024 Q3<br>2024 Q4<br>2024 Change %<br>Change YTD 2023 YTD 2024 Change %<br>Change
Statements of Income
Revenues:
Direct premiums $ 817,872 $ 828,296 $ 831,681 $ 834,275 $ 841,046 $ 845,358 $ 852,452 2.5 % $ 2,477,850 $ 2,538,856 2.5 %
Ceded premiums (405,347 ) (425,266 ) (411,015 ) (410,182 ) (409,764 ) (427,561 ) (412,645 ) ) -0.4 % (1,241,629 ) (1,249,970 ) ) -0.7 %
Net premiums 412,525 403,030 420,666 424,093 431,283 417,797 439,807 4.6 % 1,236,221 1,288,887 4.3 %
Net investment income 31,065 32,398 34,730 37,644 37,806 38,452 41,109 18.4 % 98,192 117,367 19.5 %
Commissions and fees:
Sales-based (1) 72,388 74,958 72,996 76,274 88,746 101,178 96,269 31.9 % 220,343 286,192 29.9 %
Asset-based (2) 111,904 113,335 119,413 118,303 128,532 132,765 142,051 19.0 % 344,652 403,348 17.0 %
Account-based (3) 22,790 23,095 23,344 23,960 23,180 23,740 24,107 3.3 % 69,229 71,027 2.6 %
Other commissions and fees 8,710 10,371 11,761 9,251 8,487 10,511 9,474 ) -19.4 % 30,841 28,472 ) -7.7 %
Investment (losses) gains (4,608 ) (328 ) (1,795 ) 835 1,305 (99 ) 2,209 nm (6,730 ) 3,415 nm
Other, net 16,553 16,636 16,380 15,830 16,611 66,612 19,103 16.6 % 49,569 102,326 106.4 %
Total revenues 671,327 673,496 697,495 706,189 735,950 790,955 774,129 11.0 % 2,042,318 2,301,033 12.7 %
Benefits and expenses:
Benefits and claims 163,267 148,911 162,062 168,739 166,321 150,030 164,363 1.4 % 474,240 480,714 1.4 %
Future policy benefits remeasurement (gain)/loss 559 (1,867 ) 179 746 55 (4,329 ) (23,019 ) ) nm (1,129 ) (27,294 ) ) nm
Amortization of DAC 67,923 68,110 69,405 70,378 72,049 73,643 75,539 8.8 % 205,438 221,231 7.7 %
Insurance commissions 8,138 9,142 7,911 9,030 9,634 7,399 7,180 ) -9.2 % 25,192 24,213 ) -3.9 %
Insurance expenses 61,125 59,093 57,821 57,420 63,149 62,685 63,529 9.9 % 178,039 189,363 6.4 %
Sales commissions:
Sales-based (1) 52,452 53,630 52,343 54,057 62,814 70,509 66,333 26.7 % 158,425 199,655 26.0 %
Asset-based (2) 54,276 55,085 58,793 58,388 64,208 66,525 71,012 20.8 % 168,154 201,745 20.0 %
Other sales commissions 4,147 4,907 5,064 4,303 4,117 5,120 4,909 ) -3.1 % 14,118 14,146 0.2 %
Interest expense 6,690 6,686 6,632 6,586 6,771 6,099 6,093 ) -8.1 % 20,008 18,964 ) -5.2 %
Other operating expenses 82,047 74,868 70,903 76,821 93,443 80,506 83,612 17.9 % 227,818 257,561 13.1 %
Total benefits and expenses 500,623 478,567 491,112 506,468 542,561 518,186 519,551 5.8 % 1,470,302 1,580,297 7.5 %
Income from continuing operations before income taxes 170,704 194,929 206,383 199,722 193,389 272,769 254,578 23.4 % 572,016 720,735 26.0 %
Income taxes 39,883 45,789 48,930 45,953 44,975 63,467 59,841 22.3 % 134,603 168,284 25.0 %
Net Income from continuing operations 130,820 149,140 157,453 153,769 148,414 209,301 194,737 23.7 % 437,413 552,452 26.3 %
Net Income from discontinued operations net of tax (2,722 ) (4,635 ) (5,391 ) (1,834 ) (10,510 ) (208,131 ) (30,364 ) ) nm (12,748 ) (249,005 ) ) nm
Net Income $ 128,099 $ 144,504 $ 152,063 $ 151,935 $ 137,904 $ 1,171 $ 164,373 8.1 % $ 424,666 $ 303,447 ) -28.5 %
Income from Continuing Operations Before Income Taxes by Segment
Term Life Insurance $ 130,540 $ 140,115 $ 141,223 $ 140,285 $ 138,367 $ 147,780 $ 178,353 26.3 % $ 411,877 $ 464,501 12.8 %
Investment & Savings Products 56,107 59,583 64,374 62,763 65,563 74,783 79,912 24.1 % 180,064 220,257 22.3 %
Corporate & Other Distributed Products (15,944 ) (4,769 ) 787 (3,327 ) (10,542 ) 50,206 (3,687 ) ) nm (19,926 ) 35,977 nm
Income before income taxes $ 170,704 $ 194,929 $ 206,383 $ 199,722 $ 193,389 $ 272,769 $ 254,578 23.4 % $ 572,016 $ 720,735 26.0 %

All values are in US Dollars.

  • Sales-based - revenues or commission expenses relating to the sales of mutual funds and variable annuities.
  • Asset-based - revenues or commission expenses relating to the value of assets in client accounts for which we earn ongoing service, distribution, and other fees.
  • Account-based - revenues relating to the fee generating client accounts we administer.

6 of 17

Reconciliation of Statement of Income GAAP to Non-GAAP Financial Measures PRIMERICA, INC.<br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Q1<br>2024 Q2<br>2024 Q3<br>2024 Q4<br>2024 Change %<br>Change YTD 2023 YTD 2024 Change %<br>Change
Reconciliation from Term Life Insurance Direct Premiums to Term Life Insurance Adjusted Direct Premiums
Term Life Insurance direct premiums $ 812,880 $ 823,297 $ 826,665 $ 829,918 $ 836,321 $ 840,668 $ 847,626 2.5 % $ 2,462,842 $ 2,524,615 2.5 %
Less: Premiums ceded to IPO Coinsurers 220,240 216,740 212,951 210,310 206,502 201,566 198,726 ) -6.7 % 649,931 606,794 ) -6.6 %
Term Life Insurance adjusted direct premiums $ 592,640 $ 606,557 $ 613,714 $ 619,608 $ 629,819 $ 639,102 $ 648,900 5.7 % $ 1,812,911 $ 1,917,820 5.8 %
Reconciliation from Term Life Insurance Ceded Premiums to Term Life Insurance Other Ceded Premiums
Term Life Insurance ceded premiums $ (404,044 ) $ (423,704 ) $ (409,801 ) $ (410,456 ) $ (408,558 ) $ (426,348 ) $ (411,526 ) ) -0.4 % $ (1,237,548 ) $ (1,246,433 ) ) -0.7 %
Less: Premiums ceded to IPO Coinsurers (220,240 ) (216,740 ) (212,951 ) (210,310 ) (206,502 ) (201,566 ) (198,726 ) 6.7 % (649,931 ) (606,794 ) 6.6 %
Term Life Insurance other ceded premiums $ (183,804 ) $ (206,964 ) $ (196,849 ) $ (200,146 ) $ (202,056 ) $ (224,782 ) $ (212,800 ) ) -8.1 % $ (587,617 ) $ (639,638 ) ) -8.9 %
Reconciliation from Net Investment Income to Adjusted Net Investment Income
Net Investment Income $ 31,065 $ 32,398 $ 34,730 $ 37,644 $ 37,806 $ 38,452 $ 41,109 18.4 % $ 98,192 $ 117,367 19.5 %
Less: MTM investment adjustments (327 ) (852 ) (481 ) 1,215 (137 ) 189 1,830 nm nm (1,661 ) 1,883 nm nm
Adjusted net investment income $ 31,392 $ 33,250 $ 35,212 $ 36,429 $ 37,943 $ 38,263 $ 39,279 11.6 % $ 99,853 $ 115,485 15.7 %
Reconciliation from Other Operating Expenses to Adjusted other operating expenses
Other operating expenses $ 82,047 $ 74,868 $ 70,903 $ 76,821 $ 93,443 $ 80,506 $ 83,612 17.9 % $ 227,818 $ 257,561 13.1 %
Less: Restructuring costs — — — — — 824 2,013 nm nm — 2,837 nm nm
Adjusted other operating expenses $ 82,047 $ 74,868 $ 70,903 $ 76,821 $ 93,443 $ 79,682 $ 81,599 15.1 % $ 227,818 $ 254,724 11.8 %
Reconciliation from Total Revenues to Adjusted Operating Revenues
Total revenues $ 671,327 $ 673,496 $ 697,495 $ 706,189 $ 735,950 $ 790,955 $ 774,129 11.0 % $ 2,042,318 $ 2,301,033 12.7 %
Less: Investment (losses) gains (4,608 ) (328 ) (1,795 ) 835 1,305 (99 ) 2,209 nm nm (6,730 ) 3,415 nm nm
Less: MTM investment adjustments (327 ) (852 ) (481 ) 1,215 (137 ) 189 1,830 nm nm (1,661 ) 1,883 nm nm
Less: Insurance claim proceeds — — — — — 50,000 — nm nm — 50,000 nm nm
Adjusted operating revenues $ 676,262 $ 674,675 $ 699,772 $ 704,140 $ 734,781 $ 740,865 $ 770,089 10.0 % $ 2,050,709 $ 2,245,735 9.5 %
Reconciliation from Income from Continuing Operations Before Income Taxes to Adjusted Operating Income Before Income Taxes
Income from continuing operations before income taxes $ 170,704 $ 194,929 $ 206,383 $ 199,722 $ 193,389 $ 272,769 $ 254,578 23.4 % $ 572,016 $ 720,735 26.0 %
Less: Investment (losses) gains (4,608 ) (328 ) (1,795 ) 835 1,305 (99 ) 2,209 nm nm (6,730 ) 3,415 nm nm
Less: MTM investment adjustments (327 ) (852 ) (481 ) 1,215 (137 ) 189 1,830 nm nm (1,661 ) 1,883 nm nm
Less: Insurance claim proceeds — — — — — 50,000 — nm nm — 50,000 nm nm
Less: Restructuring costs — — — — — (824 ) (2,013 ) nm nm — (2,837 ) nm nm
Adjusted operating income before income taxes $ 175,639 $ 196,108 $ 208,660 $ 197,672 $ 192,220 $ 223,503 $ 252,552 21.0 % $ 580,407 $ 668,275 15.1 %
Reconciliation from Net Income from Continuing Operations to Adjusted Net Operating Income
Net income from continuing operations $ 130,820 $ 149,140 $ 157,453 $ 153,769 $ 148,414 $ 209,301 $ 194,737 23.7 % $ 437,413 $ 552,452 26.3 %
Less: Investment (losses) gains (4,608 ) (328 ) (1,795 ) 835 1,305 (99 ) 2,209 nm nm (6,730 ) 3,415 nm nm
Less: MTM investment adjustments (327 ) (852 ) (481 ) 1,215 (137 ) 189 1,830 nm nm (1,661 ) 1,883 nm nm
Less: Insurance claim proceeds — — — — — 50,000 — nm nm — 50,000 nm nm
Less: Restructuring costs — — — — — (824 ) (2,013 ) nm nm — (2,837 ) nm nm
Less: Tax impact of preceding items 1,151 277 535 (469 ) (269 ) 152 (476 ) nm nm 1,963 (594 ) nm nm
Less: Valuation allowance on Senior Health NOLs — — — — — (11,080 ) — nm nm — (11,080 ) nm nm
Adjusted net operating income $ 134,605 $ 150,042 $ 159,194 $ 152,188 $ 147,515 $ 170,964 $ 193,187 21.4 % $ 443,841 $ 511,665 15.3 %

All values are in US Dollars.

7 of 17

Reconciliation of Statement of Income GAAP to Non-GAAP Financial Measures PRIMERICA, INC.<br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Q1<br>2024 Q2<br>2024 Q3<br>2024 Q4<br>2024 Change %<br>Change YTD 2023 YTD 2024 Change %<br>Change
Reconciliation from C&O Income Before Income Taxes to C&O Adjusted Operating Income Before Income Taxes
Income before income taxes $ (15,944 ) $ (4,769 ) $ 787 $ (3,327 ) $ (10,542 ) $ 50,206 $ (3,687 ) ) nm $ (19,926 ) $ 35,977 nm
Less: Investment (losses) gains (4,608 ) (328 ) (1,795 ) 835 1,305 (99 ) 2,209 nm nm (6,730 ) 3,415 nm nm
Less: MTM investment adjustments (327 ) (852 ) (481 ) 1,215 (137 ) 189 1,830 nm nm (1,661 ) 1,883 nm nm
Less: Insurance claim proceeds — — — — — 50,000 — nm nm — 50,000 nm nm
Less: Restructuring costs — — — — — (824 ) (2,013 ) nm nm — (2,837 ) nm nm
Adjusted operating income before income taxes $ (11,008 ) $ (3,589 ) $ 3,063 $ (5,377 ) $ (11,710 ) $ 940 $ (5,713 ) ) nm $ (11,535 ) $ (16,483 ) ) -42.9 %

All values are in US Dollars.

8 of 17

Term Life Insurance - Financial Results and Analysis PRIMERICA, INC.<br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Q1<br>2024 Q2<br>2024 Q3<br>2024 Q4<br>2024 Change %<br>Change YTD 2023 YTD 2024 Change %<br>Change
Term Life Insurance Income Before Income Taxes
Revenues:
Direct Premiums $ 812,880 $ 823,297 $ 826,665 $ 829,918 $ 836,321 $ 840,668 $ 847,626 2.5 % $ 2,462,842 $ 2,524,615 2.5 %
Premiums ceded to IPO coinsurers (1) (220,240 ) (216,740 ) (212,951 ) (210,310 ) (206,502 ) (201,566 ) (198,726 ) 6.7 % (649,931 ) (606,794 ) 6.6 %
Adjusted direct premiums (2) 592,640 606,557 613,714 619,608 629,819 639,102 648,900 5.7 % 1,812,911 1,917,820 5.8 %
Other ceded premiums (3) (183,804 ) (206,964 ) (196,849 ) (200,146 ) (202,056 ) (224,782 ) (212,800 ) ) -8.1 % (587,617 ) (639,638 ) ) -8.9 %
Net premiums 408,836 399,594 416,864 419,462 427,762 414,320 436,099 4.6 % 1,225,294 1,278,182 4.3 %
Other, net 12,233 12,280 11,909 11,865 12,649 12,624 14,206 19.3 % 36,421 39,479 8.4 %
Revenues 421,069 411,873 428,773 431,327 440,412 426,944 450,305 5.0 % 1,261,715 1,317,661 4.4 %
Benefits and expenses:
Benefits and claims 158,940 143,855 158,508 160,782 163,847 146,268 160,652 1.4 % 461,303 470,766 2.1 %
Future policy benefits remeasurement (gain)/loss 1,035 (1,312 ) 251 (187 ) (319 ) (4,280 ) (28,203 ) ) nm (26 ) (32,802 ) ) nm
Amortization of DAC 66,068 66,004 67,720 69,012 70,491 71,916 73,698 8.8 % 199,792 216,105 8.2 %
Insurance commissions 4,590 5,496 4,373 5,356 6,047 3,785 3,410 ) -22.0 % 14,459 13,242 ) -8.4 %
Insurance expenses 59,896 57,717 56,698 56,080 61,979 61,476 62,395 10.0 % 174,310 185,849 6.6 %
Benefits and expenses 290,529 271,759 287,549 291,042 302,044 279,164 271,952 ) -5.4 % 849,837 853,161 0.4 %
Income before income taxes $ 130,540 $ 140,115 $ 141,224 $ 140,285 $ 138,367 $ 147,780 $ 178,353 26.3 % $ 411,878 $ 464,501 12.8 %
Total Term Life Insurance - Financial Analysis
Post-IPO direct premiums (4) $ 477,227 $ 489,826 $ 495,769 $ 499,965 $ 508,687 $ 517,691 $ 525,697 6.0 % $ 1,462,823 $ 1,552,074 6.1 %
Pre-IPO direct premiums (5) 335,652 333,471 330,896 329,953 327,634 322,977 321,929 ) -2.7 % 1,000,019 972,541 ) -2.7 %
Total direct premiums $ 812,880 $ 823,297 $ 826,665 $ 829,918 $ 836,321 $ 840,668 $ 847,626 2.5 % $ 2,462,842 $ 2,524,615 2.5 %
Premiums ceded to IPO coinsurers $ 220,240 $ 216,740 $ 212,951 $ 210,310 $ 206,502 $ 201,566 $ 198,726 ) -6.7 % $ 649,931 $ 606,794 ) -6.6 %
% of Pre-IPO direct premiums 65.6 % 65.0 % 64.4 % 63.7 % 63.0 % 62.4 % 61.7 % nm nm 65.0 % 62.4 % nm nm
Benefits and claims, net (6) $ 343,779 $ 349,506 $ 355,608 $ 360,741 $ 365,584 $ 366,770 $ 345,249 ) -2.9 % $ 1,048,893 $ 1,077,602 2.7 %
% of adjusted direct premiums 58.0 % 57.6 % 57.9 % 58.2 % 58.0 % 57.4 % 53.2 % nm nm 57.9 % 56.2 % nm nm
DAC amortization & insurance commissions $ 70,657 $ 71,500 $ 72,093 $ 74,367 $ 76,538 $ 75,701 $ 77,108 7.0 % $ 214,250 $ 229,347 7.0 %
% of adjusted direct premiums 11.9 % 11.8 % 11.7 % 12.0 % 12.2 % 11.8 % 11.9 % nm nm 11.8 % 12.0 % nm nm
Insurance expenses, net (7) $ 47,663 $ 45,437 $ 44,789 $ 44,215 $ 49,329 $ 48,851 $ 48,189 7.6 % $ 137,889 $ 146,370 6.2 %
% of adjusted direct premiums 8.0 % 7.5 % 7.3 % 7.1 % 7.8 % 7.6 % 7.4 % nm nm 7.6 % 7.6 % nm nm
Total Term Life income before income taxes $ 130,540 $ 140,115 $ 141,224 $ 140,285 $ 138,367 $ 147,780 $ 178,353 26.3 % $ 411,878 $ 464,501 12.8 %
Term Life operating margin (8) 22.0 % 23.1 % 23.0 % 22.6 % 22.0 % 23.1 % 27.5 % nm nm 22.7 % 24.2 % nm nm

All values are in US Dollars.

  • Premiums ceded to IPO coinsurers - premiums ceded to IPO coinsurers under the IPO coinsurance transactions excluding any reimbursements from the IPO coinsurers on previously existing reinsurance agreements.
  • Adjusted direct premiums - direct premiums net of premiums ceded to IPO coinsurers.
  • Other ceded premiums - premiums ceded to non-IPO coinsurers net of any applicable reimbursements from the IPO coinsurers.
  • Post-IPO direct premiums - direct premiums not subject to the 2010 IPO coinsurance transactions.
  • Pre-IPO direct premiums - direct premiums subject to the 2010 IPO coinsurance transactions.
  • Benefits and claims, net - benefits & claims and remeasurement (gain)/loss net of other ceded premiums which are largely yearly renewable term.
  • Insurance expenses, net - insurance expenses net of other, net revenues.
  • Term Life Insurance operating margin - Term Life operating income before income taxes as a percentage of adjusted direct premiums.

9 of 17

Term Life Insurance - Key Statistics PRIMERICA, INC.<br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Q1<br>2024 Q2<br>2024 Q3<br>2024 Q4<br>2024 Change %<br>Change YTD 2023 YTD 2024 Change %<br>Change
Key Statistics
Life-insurance licensed sales force, beginning of period 135,208 136,430 137,806 139,053 141,572 142,855 145,789 5.8 % 135,208 141,572 4.7 %
11,118 12,638 12,311 13,029 12,949 14,402 14,349 16.6 % 36,067 41,700 15.6 %
(9,896 ) (11,262 ) (11,064 ) (10,510 ) (11,666 ) (11,468 ) (11,248 ) ) -1.7 % (32,222 ) (34,382 ) ) -6.7 %
Life-insurance licensed sales force, end of period 136,430 137,806 139,053 141,572 142,855 145,789 148,890 7.1 % 139,053 148,890 7.1 %
Estimated annualized issued term life premium (mills) (1):
$ 70.7 $ 82.0 $ 74.0 $ 75.6 $ 73.1 $ 86.7 $ 80.2 8.3 % $ 226.7 $ 239.9 5.8 %
18.2 19.7 18.7 17.7 18.1 19.9 18.8 0.7 % 56.6 56.8 0.4 %
Total estimated annualized issued term life premium $ 88.9 $ 101.7 $ 92.7 $ 93.3 $ 91.2 $ 106.5 $ 99.0 6.7 % $ 283.3 $ 296.7 4.7 %
Issued term life policies 84,561 96,953 88,589 88,757 86,587 100,768 93,377 5.4 % 270,103 280,732 3.9 %
Estimated average annualized issued term life premium per policy (1)(2) $ 836 $ 846 $ 836 $ 852 $ 844 $ 860 $ 859 2.7 % $ 839 $ 855 1.8 %
Term life face amount in-force, beginning of period (mills) $ 916,808 $ 922,845 $ 934,867 $ 937,856 $ 944,609 $ 947,101 $ 950,880 1.7 % $ 916,808 $ 944,609 3.0 %
28,124 32,203 29,452 29,322 28,725 33,155 30,793 4.6 % 89,780 92,673 3.2 %
(22,210 ) (22,583 ) (24,143 ) (25,293 ) (23,323 ) (28,241 ) (25,264 ) ) -4.6 % (68,936 ) (76,827 ) ) -11.4 %
124 2,401 (2,320 ) 2,724 (2,911 ) (1,134 ) 1,402 nm 205 (2,644 ) ) nm
Term life face amount in-force, end of period $ 922,845 $ 934,867 $ 937,856 $ 944,609 $ 947,101 $ 950,880 $ 957,811 2.1 % $ 937,856 $ 957,811 2.1 %

All values are in US Dollars.

  • Estimated annualized issued term life premium - estimated as average premium per $1,000 of face amounts issued on new policies and additions (before free look returns) multiplied by actual face amount issued on new policies, rider additions and face amount increases.
  • In whole dollars.
  • Issued term life face amount - includes face amount on issued term life policies, additional riders added to existing policies, and face increases under increasing benefit riders.

10 of 17

Investment and Savings Products - Financial Results and Financial Analysis PRIMERICA, INC.<br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Q1<br>2024 Q2<br>2024 Q3<br>2024 Q4<br>2024 Change %<br>Change YTD 2023 YTD 2024 Change %<br>Change
Investment & Savings Products Income Before Income Taxes
Revenues:
Commissions and fees:
Sales-based $ 72,388 $ 74,958 $ 72,996 $ 76,274 $ 88,746 $ 101,178 $ 96,269 31.9 % $ 220,343 $ 286,192 29.9 %
Asset-based 111,904 113,335 119,413 118,303 128,532 132,765 142,051 19.0 % 344,652 403,348 17.0 %
Account-based 22,790 23,095 23,344 23,960 23,180 23,740 24,107 3.3 % 69,229 71,027 2.6 %
Other, net 3,120 3,121 3,145 3,119 3,258 3,224 3,646 15.9 % 9,385 10,128 7.9 %
Revenues 210,202 214,509 218,898 221,656 243,716 260,906 266,073 21.6 % 643,610 770,695 19.7 %
Benefits and expenses:
Amortization of DAC 1,493 1,409 1,311 1,267 1,201 1,478 1,540 17.5 % 4,212 4,219 0.2 %
Insurance commissions 3,308 3,273 3,321 3,246 3,400 3,343 3,499 5.4 % 9,902 10,242 3.4 %
Sales commissions:
Sales-based 52,452 53,630 52,343 54,057 62,814 70,509 66,333 26.7 % 158,425 199,655 26.0 %
Asset-based 54,276 55,085 58,793 58,388 64,208 66,525 71,012 20.8 % 168,154 201,745 20.0 %
Other operating expenses 42,567 41,529 38,757 41,935 46,531 44,269 43,778 13.0 % 122,852 134,577 9.5 %
Benefits and expenses 154,095 154,926 154,524 158,893 178,153 186,123 186,161 20.5 % 463,545 550,438 18.7 %
Income before income taxes $ 56,107 $ 59,583 $ 64,374 $ 62,763 $ 65,563 $ 74,783 $ 79,912 24.1 % $ 180,064 $ 220,257 22.3 %
Financial Analysis
Fees paid based on client asset values (1) $ 8,034 $ 8,142 $ 8,608 $ 8,102 $ 9,342 $ 9,548 $ 10,156 18.0 % $ 24,784 $ 29,046 17.2 %
Fees paid based on fee-generating positions (2) 11,528 10,216 9,469 10,270 11,426 10,483 10,392 9.7 % 31,213 32,300 3.5 %
Other operating expenses 23,005 23,171 20,680 23,563 25,763 24,238 23,230 12.3 % 66,856 73,231 9.5 %
Total other operating expenses $ 42,567 $ 41,529 $ 38,757 $ 41,935 $ 46,531 $ 44,269 $ 43,778 13.0 % $ 122,852 $ 134,577 9.5 %
Sales-based variable margin as % of revenue-generating sales (3)
U.S. 1.21 % 1.21 % 1.22 % 1.27 % 1.25 % 1.33 % 1.37 % nm nm 1.21 % 1.32 % nm nm
Canada 0.33 % 0.37 % 0.41 % 0.45 % 0.48 % 0.37 % 0.34 % nm nm 0.36 % 0.40 % nm nm
Total 1.13 % 1.16 % 1.17 % 1.22 % 1.19 % 1.27 % 1.31 % nm nm 1.15 % 1.26 % nm nm
Asset-based variable margin as % of average asset values (4)
U.S. 0.042 % 0.041 % 0.042 % 0.042 % 0.041 % 0.041 % 0.042 % nm nm 0.126 % 0.123 % nm nm
Canada 0.102 % 0.104 % 0.105 % 0.105 % 0.104 % 0.104 % 0.109 % nm nm 0.311 % 0.317 % nm nm
Total 0.052 % 0.051 % 0.052 % 0.052 % 0.051 % 0.050 % 0.052 % nm nm 0.155 % 0.153 % nm nm
Account-based variable margin per average fee generating position (5)(6) $ 3.58 $ 4.07 $ 4.36 $ 4.29 $ 3.67 $ 4.10 $ 4.21 nm nm $ 12.02 $ 11.98 nm nm

All values are in US Dollars.

  • Fees paid based on client asset values - administration fees on Canadian Segregated Funds and advisory fees on Managed Accounts that vary directly with client asset values.
  • Fees paid based on fee-generating positions - recordkeeping fees that vary with the number of fee-generating positions.
  • Sales-based variable margin - commission and fee revenue less commissions paid to the sales force based on product sales activity.
  • Asset-based variable margin - commission and fee revenue less administration and advisory fees paid to third-party providers and commissions paid to the sales force earned based on product account values including amortization of deferred acquisition costs for segregated funds.
  • Account-based variable margin - fee revenue less recordkeeping fees paid to third-party providers based on fee-generating positions and certain direct general expenses.
  • In whole dollars.

11 of 17

Investment and Savings Products - Key Statistics PRIMERICA, INC.<br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Q1<br>2024 Q2<br>2024 Q3<br>2024 Q4<br>2024 Change %<br>Change YTD 2023 YTD 2024 Change %<br>Change
Key Statistics
Product sales (mills)
$ 971.7 $ 998.5 $ 956.9 $ 970.9 $ 1,162.2 $ 1,228.6 $ 1,162.7 21.5 % $ 2,927.0 $ 3,553.5 21.4 %
149.8 106.2 110.1 112.0 179.6 147.6 146.2 32.8 % 366.1 473.4 29.3 %
80.7 89.3 72.7 68.9 81.0 98.0 89.5 23.0 % 242.8 268.5 10.6 %
556.4 649.1 628.8 671.9 756.0 941.4 891.5 41.8 % 1,834.3 2,588.9 41.1 %
Total sales-based revenue generating product sales 1,758.6 1,843.1 1,768.5 1,823.7 2,178.8 2,415.6 2,289.9 29.5 % 5,370.2 6,884.3 28.2 %
306.1 317.0 236.0 353.2 370.9 456.1 411.9 74.5 % 859.1 1,238.8 44.2 %
183.4 193.6 152.4 161.8 197.7 196.5 189.4 24.3 % 529.3 583.6 10.3 %
51.9 27.9 17.4 17.2 23.0 14.8 13.9 ) -19.8 % 97.2 51.7 ) -46.8 %
Total product sales $ 2,300.0 $ 2,381.6 $ 2,174.2 $ 2,355.9 $ 2,770.4 $ 3,082.9 $ 2,905.1 33.6 % $ 6,855.8 $ 8,758.4 27.8 %
$ 333.2 $ 299.8 $ 262.5 $ 273.8 $ 377.4 $ 344.1 $ 335.6 27.9 % $ 895.4 $ 1,057.0 18.0 %
51.9 27.9 17.4 17.2 23.0 14.8 13.9 ) -19.8 % 97.2 51.7 ) -46.8 %
Total Canada product sales 385.0 327.7 279.8 291.0 400.4 358.8 349.5 24.9 % 992.6 1,108.7 11.7 %
Total U.S. product sales 1,914.9 2,053.9 1,894.4 2,065.0 2,370.0 2,724.1 2,555.6 34.9 % 5,863.2 7,649.7 30.5 %
Total product sales $ 2,300.0 $ 2,381.6 $ 2,174.2 $ 2,355.9 $ 2,770.4 $ 3,082.9 $ 2,905.1 33.6 % $ 6,855.8 $ 8,758.4 27.8 %
Client asset values, beginning of period (mills) $ 83,949 $ 87,621 $ 91,646 $ 88,441 $ 96,735 $ 103,340 $ 105,112 14.7 % $ 83,949 $ 96,735 15.2 %
2,300 2,382 2,174 2,356 2,770 3,083 2,905 33.6 % 6,856 8,758 27.8 %
(1,658 ) (1,839 ) (1,982 ) (2,184 ) (2,497 ) (2,660 ) (2,461 ) ) -24.2 % (5,479 ) (7,617 ) ) -39.0 %
Net flows 642 542 192 172 274 423 444 131.0 % 1,377 1,141 ) -17.1 %
16 315 (303 ) 344 (392 ) (163 ) 203 nm 27 (352 ) ) nm
3,014 3,168 (3,094 ) 7,777 6,724 1,512 5,487 nm 3,088 13,723 nm
Client asset values, end of period $ 87,621 $ 91,646 $ 88,441 $ 96,735 $ 103,340 $ 105,112 $ 111,247 25.8 % $ 88,441 $ 111,247 25.8 %
3.1 % 2.5 % 0.8 % 0.8 % 1.1 % 1.6 % 1.7 % % nm 2.2 % 1.6 % % nm
Average client asset values (mills)
$ 42,096 $ 43,225 $ 44,748 $ 44,622 $ 49,013 $ 50,560 $ 52,721 17.8 % $ 43,357 $ 50,765 17.1 %
11,345 11,567 11,817 11,722 12,850 13,259 13,959 18.1 % 11,576 13,356 15.4 %
7,338 7,613 7,850 7,851 8,806 9,376 10,216 30.1 % 7,600 9,466 24.5 %
2,729 2,760 2,793 2,807 2,824 2,868 2,908 4.1 % 2,761 2,867 3.8 %
20,744 21,323 21,999 21,762 23,665 24,663 26,014 18.2 % 21,355 24,781 16.0 %
2,329 2,324 2,298 2,232 2,344 2,266 2,334 1.6 % 2,317 2,315 ) -0.1 %
Total $ 86,581 $ 88,813 $ 91,505 $ 90,995 $ 99,502 $ 102,993 $ 108,152 18.2 % $ 88,966 $ 103,549 16.4 %
$ 11,345 $ 11,567 $ 11,817 $ 11,722 $ 12,850 $ 13,259 $ 13,959 18.1 % $ 11,576 $ 13,356 15.4 %
2,329 2,324 2,298 2,232 2,344 2,266 2,334 1.6 % 2,317 2,315 ) -0.1 %
Total Canada average client assets 13,674 13,891 14,115 13,954 15,194 15,526 16,293 15.4 % 13,893 15,671 12.8 %
Total U.S. average client assets 72,907 74,922 77,391 77,042 84,308 87,468 91,858 18.7 % 75,073 87,878 17.1 %
Total average client assets $ 86,581 $ 88,813 $ 91,505 $ 90,995 $ 99,502 $ 102,993 $ 108,152 18.2 % $ 88,966 $ 103,549 16.4 %
Average number of fee-generating positions (thous) (3)
2,316 2,331 2,342 2,351 2,359 2,378 2,393 2.2 % 2,330 2,377 2.0 %
829 834 839 842 847 857 865 3.1 % 834 857 2.7 %
Total 3,145 3,165 3,181 3,193 3,206 3,235 3,258 2.4 % 3,164 3,233 2.2 %

All values are in US Dollars.

  • Asset value outflows - include (a) redemptions of assets, (b) sales charges on the inflow sales figures, and (c) the net flow of money market funds sold and redeemed on the Company's recordkeeping platform. The redemptions of assets must be estimated for approximately 4% of account values as these figures are not readily available. Actual redemptions as a percentage of account values for similar known account values are used to estimate the unknown redemption values.
  • Change in market value, net - market value fluctuations net of fees and expenses.
  • Fee generating positions - mutual fund positions for which we receive recordkeeping fees. An individual client account may include multiple mutual fund positions. We may also receive fees earned for custodial services that we provide to clients with retirement plan accounts that hold positions in these mutual funds.

12 of 17

Corporate Other Distributed Products - Financial Results PRIMERICA, INC.<br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Q1<br>2024 Q2<br>2024 Q3<br>2024 Q4<br>2024 Change %<br>Change YTD 2023 YTD 2024 Change %<br>Change
Corporate & Other Distributed Products Income Before Income Taxes
Revenues:
Direct premiums $ 4,993 $ 4,999 $ 5,016 $ 4,358 $ 4,725 $ 4,690 $ 4,826 ) -3.8 % $ 15,008 $ 14,241 ) -5.1 %
Ceded premiums (1,304 ) (1,562 ) (1,215 ) 273 (1,205 ) (1,213 ) (1,118 ) 8.0 % (4,081 ) (3,537 ) 13.3 %
Net premiums 3,689 3,436 3,801 4,631 3,520 3,477 3,708 ) -2.5 % 10,927 10,705 ) -2.0 %
Adjusted net investment income 31,392 33,250 35,213 36,429 37,943 38,263 39,279 11.5 % 99,854 115,485 15.7 %
Commissions and fees:
Prepaid legal services 3,991 4,421 5,311 3,806 3,591 3,924 4,070 ) -23.4 % 13,723 11,586 ) -15.6 %
Auto and homeowners insurance 1,831 2,349 2,951 2,133 1,777 2,413 1,375 ) -53.4 % 7,131 5,566 ) -21.9 %
Mortgage loans 1,211 1,775 1,733 1,530 1,499 2,211 2,384 37.5 % 4,720 6,095 29.1 %
Other sales commissions 1,676 1,826 1,765 1,781 1,618 1,963 1,645 ) -6.8 % 5,268 5,226 ) -0.8 %
Adjusted other, net 1,200 1,236 1,327 846 704 764 1,251 ) -5.7 % 3,763 2,718 ) -27.8 %
Adjusted operating revenues 44,990 48,293 52,102 51,157 50,653 53,014 53,711 3.1 % 145,385 157,379 8.2 %
Benefits and expenses:
Benefits and claims 4,327 5,057 3,554 7,957 2,475 3,762 3,712 4.4 % 12,937 9,948 ) -23.1 %
Future policy benefits remeasurement (gain)/loss (477 ) (554 ) (72 ) 933 374 (49 ) 5,184 nm (1,103 ) 5,509 nm
Amortization of DAC 362 697 375 99 357 250 300 ) -19.8 % 1,434 907 ) -36.8 %
Insurance commissions 241 373 217 429 187 271 272 25.1 % 831 729 ) -12.2 %
Insurance expenses 1,229 1,377 1,123 1,341 1,171 1,209 1,134 1.0 % 3,729 3,513 ) -5.8 %
Sales commissions 4,147 4,907 5,064 4,303 4,117 5,120 4,909 ) -3.1 % 14,118 14,146 0.2 %
Interest expense 6,690 6,686 6,632 6,586 6,771 6,099 6,093 ) -8.1 % 20,008 18,964 ) -5.2 %
Adjusted other operating expenses 39,480 33,340 32,146 34,886 46,913 35,413 37,821 17.7 % 104,965 120,147 14.5 %
Adjusted benefits and expenses 55,999 51,882 49,039 56,533 62,363 52,074 59,425 21.2 % 156,920 173,862 10.8 %
Adjusted operating income before income taxes $ (11,008 ) $ (3,589 ) $ 3,063 $ (5,377 ) $ (11,710 ) $ 940 $ (5,713 ) ) nm $ (11,535 ) $ (16,483 ) ) -42.9 %

All values are in US Dollars.

13 of 17

Investment Portfolio - Summary of Holdings PRIMERICA, INC.<br><br>Financial Supplement
As of or for the period ended September 30, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
% of Total Avg
Market Amortized Unrealized Market Amortized Book Avg
(Dollars in thousands) Value Cost G/(L) Value Cost Yield Rating
Investment Portfolio by Asset Class
Cash, Cash Equivalents, and Short Term $ 550,142 $ 550,142 $ - 15.4 % 14.8 %
Fixed Income:
Treasury 17,249 17,398 (150 ) 0.5 % 0.5 % 2.90 % AAA
Government 257,497 268,994 (11,497 ) 7.2 % 7.3 % 3.26 % AA-
Tax-Exempt Municipal 33,483 35,715 (2,231 ) 0.9 % 1.0 % 2.70 % AA
Corporate 1,516,772 1,562,848 (46,076 ) 42.4 % 42.1 % 4.17 % BBB+
Mortgage Backed 514,496 563,036 (48,540 ) 14.4 % 15.2 % 3.63 % AAA
Asset Backed 229,887 234,202 (4,315 ) 6.4 % 6.3 % 4.78 % AA-
Cmbs 106,142 116,062 (9,920 ) 3.0 % 3.1 % 3.66 % AA-
Private 318,639 326,970 (8,330 ) 8.9 % 8.8 % 5.01 % BBB+
Redeemable Preferred 4,024 4,248 (224 ) 0.1 % 0.1 % 5.37 % BBB-
Total Fixed Income 2,998,190 3,129,474 (131,284 ) 83.8 % 84.4 % 4.09 % A
Equities and Other:
Perpetual Preferred 4,594 4,594 - 0.1 % 0.1 %
Common Stock 19,917 19,917 (0 ) 0.6 % 0.5 %
Mutual Fund 3,899 3,899 (0 ) 0.1 % 0.1 %
Total Equities 28,411 28,411 (0 ) 0.8 % 0.8 %
Total Invested Assets $ 3,576,743 $ 3,708,026 $ (131,284 ) 100.0 % 100.0 %
Public Corporate Portfolio by Sector
Insurance $ 205,627 $ 212,283 $ (6,656 ) 13.6 % 13.6 %
Energy 188,010 191,401 (3,391 ) 12.4 % 12.2 %
Consumer Non Cyclical 142,556 150,940 (8,383 ) 9.4 % 9.7 %
Reits 130,366 137,877 (7,511 ) 8.6 % 8.8 %
Consumer Cyclical 125,618 129,741 (4,123 ) 8.3 % 8.3 %
Technology 105,526 107,764 (2,238 ) 7.0 % 6.9 %
Capital Goods 99,474 100,862 (1,388 ) 6.6 % 6.5 %
Electric 97,619 98,171 (552 ) 6.4 % 6.3 %
Banking 86,527 86,155 372 5.7 % 5.5 %
Basic Industry 66,044 69,093 (3,049 ) 4.4 % 4.4 %
Communications 63,644 65,299 (1,655 ) 4.2 % 4.2 %
Finance Companies 63,475 65,494 (2,019 ) 4.2 % 4.2 %
Transportation 56,513 58,186 (1,673 ) 3.7 % 3.7 %
Brokerage 49,253 51,636 (2,383 ) 3.2 % 3.3 %
Natural Gas 17,957 17,635 322 1.2 % 1.1 %
Industrial Other 6,051 6,739 (688 ) 0.4 % 0.4 %
Financial Other 5,638 5,857 (220 ) 0.4 % 0.4 %
Utility Other 4,847 5,391 (544 ) 0.3 % 0.3 %
Owned No Guarantee 2,029 2,325 (296 ) 0.1 % 0.1 %
Total Corporate portfolio $ 1,516,772 $ 1,562,848 $ (46,076 ) 100.0 % 100.0 %
Fixed-Maturity Securities - Effective Maturity
Effective maturity
< 1 Yr. $ 254,572 $ 256,039 $ (1,467 ) 8.5 % 8.2 % 3.95 %
1-2 Yrs. 292,466 297,010 (4,544 ) 9.8 % 9.5 % 3.92 %
2-5 Yrs. 770,080 783,397 (13,317 ) 25.7 % 25.0 % 4.30 %
5-10 Yrs. 1,179,081 1,270,736 (91,655 ) 39.3 % 40.6 % 3.65 %
> 10 Yrs. 501,991 522,292 (20,300 ) 16.7 % 16.7 % 4.98 %
Total Fixed Income $ 2,998,190 $ 3,129,474 $ (131,284 ) 100.0 % 100.0 % 4.09 %
Duration
Fixed Income portfolio duration 5.2 years

Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

14 of 17

Investment Portfolio - Quality Ratings As of September 30, 2024 PRIMERICA, INC.<br><br>Financial Supplement
(Dollars in thousands)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Investment Portfolio Quality Ratings (1)
Amortized Cost % of Total
Total Fixed Income portfolio:
Rating
AAA $ 606,188 19.4 %
AA 413,685 13.2 %
A 761,891 24.3 %
BBB 1,308,306 41.8 %
Below Investment Grade 38,707 1.2 %
NA 697 0.0 %
Total Fixed Income $ 3,129,474 100.0 %
Amortized Cost % of Total Amortized Cost % of Total
Public Corporate asset class: Private Placement asset class:
Rating Rating
AAA $ 10,560 0.7 % AAA $ - —
AA 60,882 3.9 % AA 8,950 2.7 %
A 406,306 26.0 % A 81,537 24.9 %
BBB 1,049,226 67.1 % BBB 235,278 72.0 %
Below Investment Grade 35,698 2.3 % Below Investment Grade 1,205 0.4 %
NA 176 0.0 % NA - —
Total Corporate $ 1,562,848 100.0 % Total Private $ 326,970 100.0 %
CMBS asset class: Mortgage-Backed asset class:
Rating Rating
AAA $ 50,881 43.8 % AAA $ 452,287 80.3 %
AA 9,940 8.6 % AA 110,567 19.6 %
A 51,976 44.8 % A 102 0.0 %
BBB 3,265 2.8 % BBB - —
Below Investment Grade - — Below Investment Grade 60 0.0 %
NA - — NA 21 0.0 %
Total CMBS $ 116,062 100.0 % Total Mortgage-Backed $ 563,036 100.0 %
Asset-Backed asset class: Treasury & Government asset classes:
Rating Rating
AAA $ 61,020 26.1 % AAA $ 30,762 10.7 %
AA 33,725 14.4 % AA 162,403 56.7 %
A 137,894 58.9 % A 77,281 27.0 %
BBB - — BBB 15,264 5.3 %
Below Investment Grade 1,062 0.5 % Below Investment Grade 683 0.2 %
NA 500 0.2 % NA - —
Total Asset-Backed $ 234,202 100.0 % Total Treasury & Government $ 286,393 100.0 %
NAIC Designations
1 $ 1,499,035 55.1 %
2 1,178,768 43.4 %
3 35,455 1.3 %
4 5,194 0.2 %
5 683 0.0 %
6 0 0.0 %
U.S. Insurer Fixed Income (2) 2,719,135 100.0 %
Other (3) 438,750
Cash and cash equivalents 550,142
Total Invested Assets $ 3,708,026
  • Ratings method for split ratings: If by 2 NRSROs, use lower of the two; if by 3 or more NRSROs, use second lowest.
  • NAIC ratings for our U.S. insurance companies' fixed income portfolios.
  • Other consists of assets held by our non-life companies, Canadian insurance company, and unrated equities.

Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

15 of 17

Investment Portfolio - Supplemental Data and Trends PRIMERICA, INC.<br><br>Financial Supplement
YOY Q3
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Q1<br>2024 Q2<br>2024 Q3<br>2024 Q4<br>2024 Change %<br>Change
Net Investment Income by Source
Fixed-maturity securities (available-for-sale) $ 25,806 $ 26,357 $ 27,380 $ 29,218 $ 29,936 $ 30,618 $ 31,990 16.8%
Fixed-maturity securities (held-to-maturity) 16,435 16,608 16,306 16,126 15,785 15,659 15,908 ) -2.4%
Equity Securities 380 380 366 397 390 323 324 ) -11.5%
Deposit asset underlying 10% reinsurance treaty 2,377 2,488 2,504 2,415 2,311 2,211 2,129 ) -15.0%
Deposit asset - Mark to Market (327 ) (852 ) (481 ) 1,215 (137 ) 189 1,830 nm
Policy loans and other invested assets (72 ) 352 475 542 461 544 402 ) -15.4%
Cash & cash equivalents 5,128 5,840 6,609 6,024 6,981 6,640 6,540 ) -1.0%
Total investment income 49,727 51,172 53,159 55,937 55,727 56,183 59,123 11.2%
Investment expenses 2,227 2,167 2,122 2,167 2,136 2,072 2,106 ) -0.8%
Interest Expense on Surplus Note 16,435 16,608 16,306 16,126 15,785 15,659 15,908 ) -2.4%
Net investment income $ 31,065 $ 32,397 $ 34,731 $ 37,644 $ 37,806 $ 38,452 $ 41,109 18.4%
Fixed income book yield, end of period 3.57 % 3.63 % 3.79 % 3.83 % 3.93 % 4.01 % 4.09 %
New money yield 5.57 % 5.46 % 6.04 % 6.67 % 5.70 % 5.78 % 5.42 %
YOY Q3
Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Q1<br>2024 Q2<br>2024 Q3<br>2024 Q4<br>2024 % PtChange
Fixed Income Portfolio Quality Ratings
Rating
AAA 20.8 % 20.7 % 19.0 % 18.9 % 18.9 % 18.3 % 19.4 % %
AA 11.3 % 11.4 % 14.3 % 14.9 % 14.8 % 14.1 % 13.2 % %
A 25.0 % 24.8 % 24.8 % 24.9 % 24.1 % 24.3 % 24.2 % %
BBB 40.5 % 40.9 % 39.7 % 39.4 % 40.5 % 41.9 % 41.8 % %
Below Investment Grade 2.2 % 2.0 % 1.9 % 2.0 % 1.6 % 1.5 % 1.2 % %
NA 0.2 % 0.1 % 0.3 % 0.0 % 0.0 % 0.0 % 0.1 % %
Total Fixed Income 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Average rating by amortized cost A A A A A A A

All values are in US Dollars.

As of September 30, 2024 As of September 30, 2024 As of September 30, 2024
Market<br>Value Amortized<br>Cost Credit<br>Rating Market<br>Value Amortized<br>Cost Market<br>Value Amortized<br>Cost
Top 25 Exposures Foreign Exposure (1) Government Investments (1)
1 Province of Ontario Canada $ 15,837 $ 15,790 A+ Canada $ 94,836 $ 99,087 AAA $ — $ —
2 Canada 15,615 16,013 AAA United Kingdom 24,478 23,750 AA — —
3 Province of Alberta Canada 15,443 15,835 AA- Australia 21,815 22,175 A 11,291 12,440
4 Province of Quebec Canada 14,547 14,610 AA- Cayman Islands (The) 16,346 15,731 BBB 14,529 14,814
5 ONEOK Inc 14,410 14,392 BBB Ireland 13,260 12,467 Below Investment Grade 683 683
6 Ontario Teachers' Pension Plan 13,623 14,354 AA+ Mexico 6,868 7,680 NA — —
7 Realty Income Corp 13,546 14,017 A- France 5,886 5,740 Total $ 26,502 $ 27,936
8 Berkshire Hathaway Inc 12,971 12,608 AA Netherlands (The) 5,629 5,494
9 Gov't of Newfoundland and Labrador 12,194 12,670 A Japan 5,255 5,200
10 Boeing Co 12,034 11,849 BBB- Luxembourg 5,147 4,700 Non-Government Investments (1)
11 Province of New Brunswick Canada 11,941 12,057 A+ Bermuda 5,138 5,242
12 Intact Financial Corp 11,899 11,462 A+ Germany 5,109 4,989 AAA $ — $ —
13 Manulife Financial Corp 11,272 11,636 A Malta 3,897 3,876 AA 3,466 3,478
14 TC Energy Corp 10,363 11,180 BBB+ Israel 3,562 3,565 A 46,727 47,098
15 Province of Nova Scotia Canada 10,249 10,387 AA- Italy 2,059 1,880 BBB 157,605 159,243
16 Morgan Stanley 9,922 9,901 BBB+ Emerging Markets (2) 11,774 12,395 Below Investment Grade 3,752 3,570
17 Alimentation Couche-Tard Inc 9,908 9,708 BBB+ All Other 8,522 8,882 NA 1,527 1,527
18 Province of Saskatchewan Canada 9,803 9,731 AA Total $ 239,580 $ 242,852 Total $ 213,078 $ 214,916
19 ConocoPhillips 9,722 10,715 A-
20 Equitable Holdings Inc 9,423 9,391 A-
21 Oglethorpe Power Corp 9,025 9,381 BBB+
22 Old Republic International Corp 9,014 8,721 BBB+
23 Walmart Inc 8,734 8,674 AA
24 Tokyo Century Corp 8,698 8,975 BBB
25 Broadcom Inc 8,621 8,672 BBB
Total $ 288,815 $ 292,729
% of total fixed income portfolio 8.1 % 7.9 %
  • US$ denominated investments in issuers outside of the United States based on country of risk.
  • Emerging markets is as defined by MSCI, Inc. which include Chile, India, Peru, Poland and South Africa.

Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

16 of 17

Five-Year Historical Key Statistics PRIMERICA, INC.<br><br>Financial Supplement
(Dollars in millions) 2019 2020 2021 2022 2023 Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Q1<br>2024 Q2<br>2024 Q3<br>2024 Q4<br>2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Recruits 282,207 400,345 349,374 359,735 361,925 93,540 86,124 92,269 89,992 110,710 96,563 142,655
Life-insurance licensed sales force, beginning of period 130,736 130,522 134,907 129,515 135,208 135,208 136,430 137,806 139,053 141,572 142,855 145,789
New life-licensed representatives 44,739 48,106 39,622 45,147 49,096 11,118 12,638 12,311 13,029 12,949 14,402 14,349
Non-renewal and terminated representatives (44,953 ) (43,721 ) (45,014 ) (39,454 ) (42,732 ) (9,896 ) (11,262 ) (11,064 ) (10,510 ) (11,666 ) (11,468 ) (11,248 )
Life-insurance licensed sales force, end of period 130,522 134,907 129,515 135,208 141,572 136,430 137,806 139,053 141,572 142,855 145,789 148,890
Issued term life policies 287,809 352,868 323,855 291,918 358,860 84,561 96,953 88,589 88,757 86,587 100,768 93,377
Issued term life face amount $ 93,994 $ 109,436 $ 108,521 $ 103,822 $ 119,102 $ 28,124 $ 32,203 $ 29,452 $ 29,322 $ 28,725 $ 33,155 $ 30,793
Term life face amount in-force, beginning of period $ 781,041 $ 808,262 $ 858,818 $ 903,404 $ 916,808 $ 916,808 $ 922,845 $ 934,867 $ 937,856 $ 944,609 $ 947,101 $ 950,880
Issued term life face amount 93,994 109,436 108,521 103,822 119,102 28,124 32,203 29,452 29,322 28,725 33,155 30,793
Terminated term life face amount (71,519 ) (60,848 ) (64,798 ) (82,894 ) (94,230 ) (22,210 ) (22,583 ) (24,143 ) (25,293 ) (23,323 ) (28,241 ) (25,264 )
Foreign currency impact, net 4,746 1,968 862 (7,524 ) 2,929 124 2,401 (2,320 ) 2,724 (2,911 ) (1,134 ) 1,402
Term life face amount in force, end of period $ 808,262 $ 858,818 $ 903,404 $ 916,808 $ 944,609 $ 922,845 $ 934,867 $ 937,856 $ 944,609 $ 947,101 $ 950,880 $ 957,811
Estimated annualized issued term life premium
Premium from new policies $ 244.8 $ 303.6 $ 297.2 $ 271.9 $ 302.4 $ 70.7 $ 82.0 $ 74.0 $ 75.6 $ 73.1 $ 86.7 $ 80.2
Additions and increases in premium 60.2 68.9 77.0 76.7 74.3 18.2 19.7 18.7 17.7 18.1 19.9 18.8
Total estimated annualized issued term life premium $ 305.0 $ 372.5 $ 374.2 $ 348.5 $ 376.6 $ 88.9 $ 101.7 $ 92.7 $ 93.3 $ 91.2 $ 106.5 $ 99.0
Investment & Savings product sales $ 7,533.2 $ 7,842.5 $ 11,703.2 $ 10,009.0 $ 9,211.7 $ 2,300.0 $ 2,381.6 $ 2,174.2 $ 2,355.9 $ 2,770.4 $ 3,082.9 $ 2,905.1
Investment & Savings average client asset values $ 65,029 $ 69,709 $ 89,993 $ 87,193 $ 89,474 $ 86,581 $ 88,813 $ 91,505 $ 90,995 $ 99,502 $ 102,993 $ 108,152
Closed U.S. Mortgage Volume (brokered) $ 31.1 $ 442.5 $ 1,229.2 $ 567.2 $ 293.4 $ 55.6 $ 82.2 $ 82.7 $ 72.9 $ 71.4 $ 99.6 $ 105.4

17 of 17

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