Equibles

8-K

Primerica, Inc. (PRI)

8-K 2024-08-07 For: 2024-08-07
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): August 7, 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 August 7, 2024, Primerica, Inc. (the “Company”) announced its results of operations for the quarter ended June 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, adjusted stockholders’ equity and diluted adjusted operating earnings per share.

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. 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 also exclude non-cash goodwill and intangible asset impairment charges. We exclude non-cash goodwill and intangible asset impairment charges as non-recurring items that cause incomparability between period-over-period results. Also excluded from these non-GAAP financial measures is restructuring and related charges incurred with the exit of our 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, the deferred tax benefit recognized in association with the impairment of intangible assets and the valuation allowance recognized for state operating losses in the Company’s Senior Health segment. 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 attached to this release.

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 August 7, 2024, the Company posted to the “Investor Relations” section of its website certain supplemental financial information relating to the quarter ended June 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 August 7, 2024 – Primerica Reports Second Quarter 2024 Results
99.2 Primerica, Inc. Supplemental Financial Information – Second 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: August 7, 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 SECOND QUARTER 2024 RESULTS

New life licenses up 14%, driving sales force to record 145,789 representatives

Term Life net premiums increased 4%; adjusted direct premiums increased 5%

Issued Term Life face amount of $33 billion; total in force coverage of $951 billion

Investment and Savings Products sales of $3.1 billion, up 29%

Investment and Savings Products client asset values up 15%, ending the quarter at record $105 billion

GAAP diluted earnings per share of $0.03; diluted adjusted operating earnings per share of $4.71

Declared a 20% increase in dividend to $0.90 per share, payable on September 12, 2024; repurchased $143 million of common stock during the quarter

Duluth, GA, Aug. 7, 2024 – Primerica, Inc. (NYSE: PRI) today announced financial results for the quarter ended June 30, 2024. The Company’s previously announced decision to exit the Senior Health business and associated write-offs of non-cash items impacted GAAP earnings with net income ending at $1.2 million, or $0.03 per diluted share. Core business results from the quarter were strong. Adjusted net operating income of $162.7 million increased 12%, while adjusted operating earnings per diluted share of $4.71 grew 18% year-over-year. Total revenue of $803.4 million, which included $50 million in proceeds from payments under an insurance claim, increased 17% compared to the second quarter of 2023. Adjusted operating revenue of $753.3 million increased 9% year-over-year.

The Company’s decision to exit the Senior Health business led to several non-cash adjustments in the second quarter of 2024. These included write-offs of the remaining goodwill and intangibles and the recognition of a tax benefit from the removal of the deferred tax liabilities associated with the intangible assets and a valuation allowance for state net operating losses. The quarter’s results also included income recognized from the receipt of cash proceeds paid under a previously disclosed insurance claim. The Company excluded these non-recurring items from adjusted operating results to provide

a comparable basis to the prior period results. A reconciliation of these items to GAAP results is included in the tables at the end of this release.

Second quarter operating results were driven by strong sales of investment products and rising client asset values as well as steady premium growth and the predictable margins of the Term Life business. Investment income benefited from higher yielding investments and growth in the Company’s invested asset portfolio. Results were partially offset by weakness in the Senior Health business. Distribution results were strong during the quarter, driven by recruiting and growth in new life-licensed representatives.

“I am pleased with the continued momentum of our business and the ongoing efforts of our sales force to educate clients and help them navigate these uncertain times,” said Glenn Williams, Chief Executive Officer of Primerica, Inc. “We welcomed nearly 40,000 teammates during our international convention in July and believe the event will build momentum for the future.”

Second Quarter Distribution & Segment Results

Distribution Results
Q2 2024 Q2 2023 % Change
Life-Licensed Sales Force 145,789 137,806 6 %
Recruits 96,563 86,124 12 %
New Life-Licensed Representatives 14,402 12,638 14 %
Life Insurance Policies Issued 100,768 96,953 4 %
Life Productivity (1) 0.23 0.24 *
Issued Term Life Face Amount ($ billions) (2) $ 33.2 $ 32.2 3 %
ISP Product Sales ($ billions) $ 3.1 $ 2.4 29 %
Average Client Asset Values ($ billions) $ 103.0 $ 88.8 16 %
Senior Health Submitted Policies (3) 15,767 13,885 14 %
Senior Health Approved Policies (4) 14,646 12,915 13 %
Closed U.S. Mortgage Volume ($ million brokered) $ 99.6 $ 82.2 21 %
  • 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.
  • Represents the number of completed applications that, with respect to each such application, the applicant has authorized us to submit to the health insurance carrier.
  • Represents an estimate of submitted policies approved by health insurance carriers during the indicated period. Not all approved policies will go in force.

* Not calculated

Segment Results
Q2 2024 Q2 2023 % Change
( in thousands)
Adjusted Operating Revenues:
Term Life Insurance $ 411,873 4 %
Investment and Savings Products 214,509 22 %
Senior Health 14,890 (17 )%
Corporate and Other Distributed Products (1) 48,293 10 %
Total adjusted operating revenues (1) $ 689,565 9 %
Adjusted Operating Income (Loss) before <br>  income taxes:
Term Life Insurance $ 140,113 5 %
Investment and Savings Products 59,583 26 %
Senior Health (1) ) (6,032 ) 88 %
Corporate and Other Distributed Products (1) (3,588 ) NM
Total adjusted operating income before income taxes (1) $ 190,076 12 %

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

During the second quarter, the Company successfully leveraged the excitement leading into its convention and the efforts of its field leaders to help new recruits effectively navigate the licensing process. The appeal of Primerica’s business opportunity continued to generate significant interest. The Company recruited a total of 96,563 individuals, a 12% increase compared to the prior year period. Licensing remained similarly strong with a total of 14,402 new life licenses during the quarter, a 14% increase compared to the prior year period, fueling 6% growth in the size of the sales force year-over-year to 145,789 life-licensed representatives.

Term Life Insurance

Life insurance policies issued during the second quarter increased 4% to 100,768, helping drive $33.2 billion in new term life face amount issued during the three months ended June 30, 2024. Productivity was at the higher end of the historical range at a monthly average of 0.23 policies issued per life-licensed representative. We believe higher cost of living pressures continued to impact middle-income families, contributing to elevated lapse rates during the quarter.

During the second quarter, Term Life revenues of $426.9 million increased 4% compared to the second quarter of 2023 driven by 5% growth in adjusted direct premiums, while pre-tax operating income of $147.8 million increased 5%. The benefits and claims ratio of 57.4% benefited from a $4.3 million remeasurement gain largely due to better than anticipated claims experience. The DAC amortization and insurance commissions ratio of 11.8% remained stable year-over-year. The Term Life operating margin was 23.1%, in line with the prior year period.

Investment and Savings Products

Total product sales during the quarter were $3.1 billion, increasing 29% compared to the prior year period, driven by the strong demand for mutual funds, annuities and managed accounts. On June 30, 2024, client asset values were $105 billion, up 15% year-over-year primarily due to strong equity market appreciation. Net client inflows were $423 million during the quarter.

Second quarter ISP revenues of $260.9 million increased 22% compared to the prior year period, while pre-tax operating income of $74.8 million increased 26% due to strong sales and an increase in average client asset values. Revenues from sales-based commissions and fees increased 35%, rising at a slightly higher rate than sales due to a favorable mix shift. Sales-based commission expenses increased 31%, in line with the increase in correlated sales. Asset-based revenues increased 17%, largely consistent with the growth in average client asset values. The change in asset-based commission expenses was in line with asset-based revenues, excluding revenues on Canadian segregated funds. Expenses related to Canadian segregated funds are reflected in insurance commissions and amortization of DAC.

Senior Health

During the second quarter of 2024, a total of 14,646 policies were approved by carriers, representing a 13% increase compared to the prior year period. The lifetime value of commissions per approved policy (“LTV”) was $914, while contract acquisition costs per approved policy (“CAC”) were $1,074 for a LTV/CAC ratio of 0.9.

Second quarter Senior Health revenues were $12.4 million, including a $1.8 million negative tail revenue adjustment due to higher policy churn. The adjusted operating loss during the quarter was $11.4 million, driven by higher contract acquisition costs, which rose 25% as e-TeleQuote onboarded agents in preparation for the upcoming enrollment period.

Corporate and Other Distributed Products

During the second quarter of 2024, the segment recorded pre-tax adjusted operating income of $0.9 million compared to a pre-tax adjusted operating loss of $3.6 million in the prior year period. The year-over-year change was primarily driven by the continued benefit of higher interest rates and growth in the size of the invested asset portfolio, which added an additional $5.0 million of adjusted net investment income to current quarter revenues.

Taxes

The effective tax rate was 85.0% in the second quarter of 2024 compared to 23.5% in the prior year period. The increase in the effective tax rate during the second quarter of 2024 was primarily driven by the non-cash goodwill impairment charge that is not deductible for income tax purposes and a valuation allowance established against e-TeleQuote’s state net operating losses. The impact of those two items was partially offset by the representation and warranty insurance proceeds, which will be excluded from taxable income, and the write-off of deferred tax liabilities on the intangibles that were fully impaired in the quarter. Excluding the impact of the four aforementioned items, the effective tax rate in the second quarter of 2024 would have been 23.3%.

Capital

The Company repurchased 629,378 shares of common stock for $142.7 million during the second quarter of 2024 and the Board of Directors has approved a 20% increase in the dividend to $0.90 per share, payable on September 12, 2024 to stockholders of record on August 21, 2024. Primerica Life Insurance Company’s statutory risk-based capital (RBC) ratio was estimated to be about 445% as of June 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, and diluted adjusted operating earnings per share.

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. 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 also exclude non-cash goodwill and intangible asset impairment charges. We exclude non-cash goodwill and intangible asset impairment charges as non-recurring items that cause incomparability between period-over-period results. Also excluded from these non-GAAP financial measures is restructuring and related charges incurred with the exit of our 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, the deferred tax benefit recognized in association with the impairment of intangible assets and the valuation allowance recognized for state operating losses in the Company’s Senior Health segment. 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.

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, August 8, 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; inability to abandon our ownership of e-TeleQuote by the anticipated date, or at all, which would cause us to exit the senior health insurance distribution business by an alternative method that may not be as beneficial to stockholder value as the planned abandonment; 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 or if e-TeleQuote is otherwise unable to safeguard the security and privacy of confidential data, including personal health information; 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)
June 30, 2024 December 31, 2023
(In thousands)
Assets
Investments:
Fixed-maturity securities available-for-sale, at fair value $ 2,796,030 $ 2,719,467
Fixed-maturity security held-to-maturity, at amortized cost 1,353,370 1,386,980
Short-term investments available-for-sale, at fair value - 276
Equity securities, at fair value 26,026 29,680
Trading securities, at fair value 3,158 18,383
Policy loans and other invested assets 49,791 51,175
Total investments 4,228,375 4,205,961
Cash and cash equivalents 627,292 613,148
Accrued investment income 25,687 23,958
Reinsurance recoverables 2,833,055 3,015,777
Deferred policy acquisition costs, net 3,566,126 3,447,234
Renewal commissions receivable 171,022 190,258
Agent balances, due premiums and other receivables 288,766 273,066
Goodwill - 127,707
Intangible assets, net 45,275 175,025
Income taxes 118,379 123,514
Operating lease right-of-use assets 50,646 53,693
Other assets 357,115 382,549
Separate account assets 2,253,966 2,395,842
Total assets $ 14,565,704 $ 15,027,732
Liabilities and Stockholders' Equity
Liabilities:
Future policy benefits $ 6,436,332 $ 6,742,025
Unearned and advance premiums 17,076 14,876
Policy claims and other benefits payable 478,773 513,803
Other policyholders' funds 412,570 435,094
Note payable 594,110 593,709
Surplus note 1,353,014 1,386,592
Income taxes 135,049 135,247
Operating lease liabilities 58,756 61,358
Other liabilities 613,303 583,434
Payable under securities lending 90,995 99,785
Separate account liabilities 2,253,966 2,395,842
Total liabilities 12,443,944 12,961,765
Stockholders' equity
Common stock 340 350
Paid-in capital - -
Retained earnings 2,122,832 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 201,441 (39,086 )
Unrealized foreign currency translation gains (losses) (15,507 ) (2,235 )
Net unrealized gains (losses) on available-for-sale securities (187,346 ) (170,008 )
Total stockholders' equity 2,121,760 2,065,967
Total liabilities and stockholders' equity $ 14,565,704 $ 15,027,732
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- ---
Condensed Consolidated Statements of Income
(Unaudited)
Three months ended June 30,
2024 2023
(In thousands, except per-share amounts)
Revenues:
Direct premiums $ 845,358 $ 828,296
Ceded premiums (427,561 ) (425,266 )
Net premiums 417,797 403,030
Commissions and fees 279,769 233,130
Net investment income 38,452 32,398
Investment gains (losses) (99 ) (328 )
Other, net 67,456 20,155
Total revenues 803,375 688,385
Benefits and expenses:
Benefits and claims 150,030 148,911
Future policy benefits remeasurement (gain) loss (4,329 ) (1,867 )
Amortization of deferred policy acquisition costs 73,643 68,110
Sales commissions 142,154 113,623
Insurance expenses 62,685 59,093
Insurance commissions 7,399 9,142
Contract acquisition costs 15,724 12,602
Interest expense 6,099 6,686
Impairment of goodwill and other long-lived assets (1) 253,607 -
Other operating expenses 88,566 83,189
Total benefits and expenses 795,578 499,489
Income before income taxes 7,797 188,896
Income taxes 6,626 44,392
Net income $ 1,171 $ 144,504
Earnings per share:
Basic earnings per share $ 0.03 $ 3.97
Diluted earnings per share $ 0.03 $ 3.97
Weighted-average shares used in computing <br>  earnings per share:
Basic 34,383 36,215
Diluted 34,383 36,290
  • Other long-lived assets impairment consists of intangible assets ($124.5 million) and other assets ($1.4 million).
PRIMERICA, INC. AND SUBSIDIARIES
Consolidated Adjusted Operating Results Reconciliation
(Unaudited)
Three months ended June 30,
2024 2023 % Change
(In thousands, except per-share amounts)
Total revenues $ 803,375 $ 688,385 17 %
Less: Investment (losses) gains (99 ) (328 )
Less: 10% deposit asset MTM included in NII 189 (852 )
Less: Gain on insurance proceeds 50,000 -
Adjusted operating revenues $ 753,285 $ 689,565 9 %
Income before income taxes $ 7,797 $ 188,896 NM
Less: Investment (losses) gains (99 ) (328 )
Less: 10% deposit asset MTM included in NII 189 (852 )
Less: Gain on insurance proceeds 50,000 -
Less: Restructuring costs (824 ) -
Less: Impairment of goodwill (127,707 ) -
Less: Impairment of other long-lived assets (125,900 ) -
Adjusted operating income before income taxes $ 212,138 $ 190,076 12 %
Net income $ 1,171 $ 144,504 NM
Less: Investment (losses) gains (99 ) (328 )
Less: 10% deposit asset MTM included in NII 189 (852 )
Less: Gain on insurance proceeds 50,000 -
Less: Restructuring costs (824 ) -
Less: Impairment of goodwill (127,707 ) -
Less: Tax impact of preceding items 18,720 277
Less: Impairment of other long-lived assets (125,900 ) -
Less: Deferred tax benefit of impairment of other long-lived assets 35,126 -
Less: Valuation allowance on Senior Health state net operating losses (11,080 ) -
Adjusted net operating income $ 162,746 $ 145,407 12 %
Diluted earnings per share $ 0.03 $ 3.97 NM
Less: Net after-tax impact of operating adjustments (4.68 ) (0.02 )
Diluted adjusted operating earnings per share $ 4.71 $ 3.99 18 %
TERM LIFE INSURANCE SEGMENT
--- --- --- --- --- --- --- --- --- ---
Adjusted Premiums Reconciliation
(Unaudited)
Three months ended June 30,
2024 2023 % Change
(In thousands)
Direct premiums $ 840,668 $ 823,297 2 %
Less: Premiums ceded to IPO coinsurers 201,566 216,740
Adjusted direct premiums 639,102 606,557 5 %
Ceded premiums (426,348 ) (423,704 )
Less: Premiums ceded to IPO coinsurers (201,566 ) (216,740 )
Other ceded premiums (224,782 ) (206,964 )
Net premiums $ 414,320 $ 399,593 4 %
SENIOR HEALTH SEGMENT
--- --- --- --- --- --- --- --- --- ---
Adjusted Operating Results Reconciliation
(Unaudited)
Three months ended June 30,
2024 2023 % Change
(In thousands)
Income (loss) before income taxes $ (264,972 ) $ (6,032 ) NM
Less: Impairment of goodwill (127,707 ) -
Less: Impairment of other long-lived assets (125,900 ) -
Adjusted operating income (loss) before income taxes $ (11,365 ) $ (6,032 ) 88 %
CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT
--- --- --- --- --- --- --- --- --- ---
Adjusted Operating Results Reconciliation
(Unaudited)
Three months ended June 30,
2024 2023 % Change
(In thousands)
Total revenues $ 103,105 $ 47,113 NM
Less: Investment gains (losses) (99 ) (328 )
Less: 10% deposit asset MTM included in NII 189 (852 )
Less: Gain on insurance proceeds 50,000 -
Adjusted operating revenues $ 53,015 $ 48,293 10 %
Income (loss) before income taxes $ 50,208 $ (4,768 ) NM
Less: Investment gains (losses) (99 ) (328 )
Less: 10% deposit asset MTM included in NII 189 (852 )
Less: Restructuring costs (824 ) -
Less: Gain on insurance proceeds 50,000 -
Adjusted operating income (loss) before income taxes $ 942 $ (3,588 ) NM

EX-99.2

Exhibit 99.2

img165194719_0.jpg

Supplemental Financial Information

Second 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
Senior Health segment - financial results, financial analysis, and key statistics 13
Corporate & Other Distributed Products segment - financial results 14
Investment portfolio 15-17
Five-year historical key statistics 18

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 18

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

Second Quarter 2024

This document is a financial supplement to our first 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 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. We exclude this as it represents a non-recurring item that causes incomparability in the Company’s results. Operating adjustments also exclude non-cash goodwill and intangible asset impairment charges as non-recurring items that cause incomparability between period-over-period results. Operating adjustments also exclude restructuring and related charges incurred with the exit of our 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, the deferred tax benefit recognized in association with the impairment of intangible assets and the valuation allowance recognized for state net operating losses (NOLs) in the Company’s Senior Health segment. 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. These reclassifications had no impact on net income or total stockholders’ equity.

3 of 18

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
Securities held to maturity 1,460,000 1,433,520 1,417,460 1,386,980 1,376,400 1,353,370
Total investments and cash 4,706,388 4,659,576 4,592,398 4,819,109 4,832,943 4,855,668
Reinsurance recoverables 3,217,354 3,084,520 2,954,245 3,015,777 2,920,417 2,833,055
Deferred policy acquisition costs 3,250,753 3,319,844 3,374,627 3,447,234 3,503,940 3,566,126
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
Separate account assets 2,329,968 2,358,823 2,183,435 2,395,842 2,334,911 2,253,966
Total assets $ 14,823,457 $ 14,751,736 $ 14,433,059 $ 15,027,732 $ 14,909,354 $ 14,565,704
Liabilities:
Future policy benefits $ 6,561,624 $ 6,491,564 $ 6,045,151 $ 6,742,025 $ 6,548,050 $ 6,436,332
Other policy liabilities 996,747 970,198 938,665 963,773 954,350 908,419
Income taxes 201,850 169,487 227,866 135,248 197,714 135,050
Other liabilities 659,734 642,149 636,927 644,792 641,836 672,058
Debt obligations 593,106 593,307 593,508 593,709 593,909 594,110
Surplus note 1,459,565 1,433,101 1,417,056 1,386,592 1,376,028 1,353,014
Payable under securities lending 74,452 77,643 77,956 99,785 76,648 90,995
Separate account liabilities 2,329,968 2,358,823 2,183,435 2,395,842 2,334,911 2,253,966
Total liabilities 12,877,046 12,736,272 12,120,564 12,961,765 12,723,446 12,443,945
Stockholders’ equity:
Common stock (0.01 par value) (1) 364 358 353 350 346 340
Paid-in capital — — — — — —
Retained earnings 2,177,428 2,190,223 2,215,378 2,276,947 2,285,937 2,122,832
Treasury stock — — — — — —
Accumulated other comprehensive income (loss), net:
(208,157 ) (226,250 ) (269,604 ) (170,008 ) (181,537 ) (187,346 )
(11,966 ) 55,386 377,637 (39,086 ) 92,853 201,441
(11,259 ) (4,253 ) (11,269 ) (2,235 ) (11,691 ) (15,507 )
Total stockholders’ equity 1,946,411 2,015,464 2,312,495 2,065,967 2,185,908 2,121,759
Total liabilities and stockholders' equity $ 14,823,457 $ 14,751,736 $ 14,433,059 $ 15,027,732 $ 14,909,354 $ 14,565,704
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
Less: Net unrealized gains (losses) (208,157 ) (226,250 ) (269,604 ) (170,008 ) (181,537 ) (187,346 )
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
Adjusted stockholders’ equity $ 2,166,533 $ 2,186,328 $ 2,204,462 $ 2,275,062 $ 2,274,592 $ 2,107,665
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
Net Income 128,099 144,504 152,063 151,935 137,904 1,171
Shareholder dividends (23,910 ) (23,598 ) (23,336 ) (22,870 ) (26,256 ) (25,835 )
Retirement of shares and warrants (96,323 ) (112,606 ) (106,479 ) (72,886 ) (116,570 ) (142,744 )
Net foreign currency translation adjustment 1,020 7,005 (7,016 ) 9,035 (9,456 ) (3,817 )
Other, net 15,941 4,490 2,902 5,386 13,909 4,297
Balance, end of period $ 2,166,533 $ 2,186,328 $ 2,204,462 $ 2,275,062 $ 2,274,592 $ 2,107,665
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
General expenses deferred 10,777 10,692 10,764 9,910 11,156 11,235
Commission costs deferred 118,386 119,676 119,976 125,335 125,811 127,800
Amortization of deferred policy acquisition costs (67,923 ) (68,110 ) (69,405 ) (70,378 ) (72,049 ) (73,643 )
Foreign currency impact and other, net 1,011 6,833 (6,551 ) 7,739 (8,211 ) (3,207 )
Balance, end of period $ 3,250,753 $ 3,319,844 $ 3,374,627 $ 3,447,234 $ 3,503,940 $ 3,566,126

All values are in US Dollars.

  • Outstanding common shares exclude restricted stock units.

4 of 18

Financial Results and Other Statistical Data PRIMERICA, INC.<br><br>Financial Supplement
YOY Q2 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 ) -5.1 % 36,461,013 34,633,084 ) -5.0 %
Net income $ 128,099 $ 144,504 $ 152,063 $ 151,935 $ 137,904 $ 1,171 ) -99.2 % $ 272,603 $ 139,074 ) -49.0 %
Less income attributable to unvested participating securities (579 ) (609 ) (643 ) (648 ) (572 ) (96 ) 84.2 % (1,190 ) (547 ) 54.1 %
Net income used in computing basic EPS $ 127,520 $ 143,896 $ 151,420 $ 151,287 $ 137,331 $ 1,075 ) -99.3 % $ 271,413 $ 138,528 ) -49.0 %
Basic earnings per share $ 3.47 $ 3.97 $ 4.23 $ 4.30 $ 3.94 $ 0.03 ) -99.2 % $ 7.44 $ 4.00 ) -46.2 %
Adjusted net operating income $ 131,883 $ 145,407 $ 153,804 $ 150,354 $ 137,005 $ 162,746 11.9 % $ 277,290 $ 299,751 8.1 %
Less operating income attributable to unvested participating securities (596 ) (612 ) (650 ) (642 ) (569 ) (604 ) 1.5 % (1,210 ) (1,178 ) 2.6 %
Adjusted net operating income used in computing basic operating EPS $ 131,288 $ 144,794 $ 153,154 $ 149,713 $ 136,436 $ 162,142 12.0 % $ 276,080 $ 298,572 8.1 %
Basic adjusted operating income per share $ 3.58 $ 4.00 $ 4.28 $ 4.26 $ 3.91 $ 4.72 18.0 % $ 7.57 $ 8.62 13.9 %
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 ) -5.1 % 36,461,013 34,633,084 ) -5.0 %
Dilutive impact of contingently issuable shares 94,123 74,712 62,182 59,473 53,938 56,591 ) -24.3 % 84,418 55,265 ) -34.5 %
Shares used to calculate diluted EPS 36,803,648 36,289,944 35,822,272 35,208,392 34,936,762 34,439,935 ) -5.1 % 36,545,431 34,688,349 ) -5.1 %
Net income $ 128,099 $ 144,504 $ 152,063 $ 151,935 $ 137,904 $ 1,171 ) -99.2 % $ 272,603 $ 139,074 ) -49.0 %
Less income attributable to unvested participating securities (577 ) (608 ) (642 ) (647 ) (572 ) (96 ) 84.2 % (1,188 ) (546 ) 54.0 %
Net income used in computing diluted EPS $ 127,521 $ 143,897 $ 151,421 $ 151,288 $ 137,332 $ 1,075 ) -99.3 % $ 271,415 $ 138,528 ) -49.0 %
Diluted earnings per share $ 3.46 $ 3.97 $ 4.23 $ 4.30 $ 3.93 $ 0.03 ) -99.2 % $ 7.43 $ 3.99 ) -46.3 %
Adjusted net operating income $ 131,883 $ 145,407 $ 153,804 $ 150,354 $ 137,005 $ 162,746 11.9 % $ 277,290 $ 299,751 8.1 %
Less operating income attributable to unvested participating securities (595 ) (611 ) (649 ) (641 ) (568 ) (603 ) 1.4 % (1,208 ) (1,177 ) 2.6 %
Adjusted net operating income used in computing diluted operating EPS $ 131,289 $ 144,795 $ 153,155 $ 149,714 $ 136,437 $ 162,143 12.0 % $ 276,082 $ 298,574 8.1 %
Diluted adjusted operating income per share $ 3.57 $ 3.99 $ 4.28 $ 4.25 $ 3.91 $ 4.71 18.0 % $ 7.55 $ 8.61 14.0 %
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 8.7 % $ 1,984,885 $ 2,139,886 7.8 %
Average adjusted stockholders' equity $ 2,154,120 $ 2,176,431 $ 2,195,395 $ 2,239,762 $ 2,274,827 $ 2,191,128 0.7 % $ 2,165,275 $ 2,232,978 3.1 %
Net income return on stockholders' equity 25.8 % 29.2 % 28.1 % 27.8 % 25.9 % 0.2 % % nm 27.5 % 13.0 % % nm
Net income return on adjusted stockholders' equity 23.8 % 26.6 % 27.7 % 27.1 % 24.2 % 0.2 % % nm 25.2 % 12.5 % % nm
Adjusted net operating income return on adjusted stockholders' equity 24.5 % 26.7 % 28.0 % 26.9 % 24.1 % 29.7 % % nm 25.6 % 26.8 % % nm
Capital Structure
Debt-to-capital (1) 23.4 % 22.7 % 20.4 % 22.3 % 21.4 % 21.9 % % nm 22.7 % 21.9 % % nm
Debt-to-capital, excluding AOCI (1) 21.4 % 21.3 % 21.1 % 20.7 % 20.6 % 21.9 % % nm 21.3 % 21.9 % % 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 x) nm 2.3 x 2.3 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 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 ) -5.2 % 35,845,525 33,993,897 ) -5.2 %
Adjusted stockholders' equity per share $ 59.51 $ 60.99 $ 62.37 $ 65.01 $ 65.72 $ 62.00 1.7 % $ 60.99 $ 62.00 1.7 %
Financial Strength Ratings - Primerica Life Insurance Co
Moody's A1 A1 A1 A1 A1 A1 na na na na na na
S&P AA- AA- AA- AA- AA- AA- na na na na na na
A.M. Best 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 na na na na na na
S&P A- A- A- A- A- A- na na na na na na
A.M. Best 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).

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Statements of Income PRIMERICA, INC.<br><br>Financial Supplement
YOY Q2 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 2.1 % $ 1,646,169 $ 1,686,404 2.4 %
Ceded premiums (405,347 ) (425,266 ) (411,015 ) (410,182 ) (409,764 ) (427,561 ) ) -0.5 % (830,613 ) (837,325 ) ) -0.8 %
Net premiums 412,525 403,030 420,666 424,093 431,283 417,797 3.7 % 815,555 849,079 4.1 %
Net investment income 31,065 32,398 34,730 37,644 37,806 38,452 18.7 % 63,462 76,258 20.2 %
Commissions and fees:
Sales-based (1) 72,388 74,958 72,996 76,274 88,746 101,178 35.0 % 147,346 189,924 28.9 %
Asset-based (2) 111,904 113,335 119,413 118,303 128,532 132,765 17.1 % 225,239 261,297 16.0 %
Account-based (3) 22,790 23,095 23,344 23,960 23,180 23,740 2.8 % 45,886 46,919 2.3 %
Other commissions and fees 24,464 21,742 23,149 28,300 14,563 22,087 1.6 % 46,206 36,650 ) -20.7 %
Investment (losses) gains (4,608 ) (328 ) (1,795 ) 835 1,305 (99 ) nm (4,936 ) 1,206 nm
Other, net 19,508 20,155 18,429 16,929 17,415 67,457 nm 39,663 84,871 114.0 %
Total revenues 690,036 688,385 710,932 726,338 742,829 803,375 16.7 % 1,378,422 1,546,205 12.2 %
Benefits and expenses:
Benefits and claims 163,267 148,911 162,062 168,739 166,321 150,030 0.8 % 312,179 316,351 1.3 %
Future policy benefits remeasurement (gain)/loss 559 (1,867 ) 179 746 55 (4,329 ) ) -131.9 % (1,308 ) (4,274 ) ) nm
Amortization of DAC 67,923 68,110 69,405 70,378 72,049 73,643 8.1 % 136,033 145,692 7.1 %
Insurance commissions 8,138 9,142 7,911 9,030 9,634 7,399 ) -19.1 % 17,281 17,033 ) -1.4 %
Insurance expenses 61,125 59,093 57,821 57,420 63,149 62,685 6.1 % 120,219 125,834 4.7 %
Sales commissions:
Sales-based (1) 52,452 53,630 52,343 54,057 62,814 70,509 31.5 % 106,082 133,322 25.7 %
Asset-based (2) 54,276 55,085 58,793 58,388 64,208 66,525 20.8 % 109,361 130,733 19.5 %
Other sales commissions 4,147 4,907 5,064 4,303 4,117 5,120 4.3 % 9,054 9,237 2.0 %
Interest expense 6,690 6,686 6,632 6,586 6,771 6,099 ) -8.8 % 13,376 12,870 ) -3.8 %
Contract acquistion costs (4) 14,984 12,602 12,568 15,079 13,533 15,724 24.8 % 27,586 29,257 6.1 %
Other operating expenses 89,534 83,189 79,354 84,572 100,943 88,567 6.5 % 172,723 189,510 9.7 %
Loss on extinguishment of debt — — — — — — #DIV/0! — — #DIV/0!
Total benefits and expenses 523,095 499,489 512,131 529,297 563,594 795,578 59.3 % 1,022,584 1,359,172 32.9 %
Income before income taxes 166,942 188,896 198,801 197,041 179,236 7,797 ) -95.9 % 355,838 187,033 ) -47.4 %
Income taxes 38,843 44,392 46,738 45,106 41,332 6,626 ) -85.1 % 83,235 47,958 ) -42.4 %
Net Income $ 128,099 $ 144,504 $ 152,063 $ 151,935 $ 137,904 $ 1,171 ) -99.2 % $ 272,603 $ 139,074 ) -49.0 %
Income Before Income Taxes by Segment
Term Life Insurance $ 130,540 $ 140,115 $ 141,223 $ 140,285 $ 138,367 $ 147,780 5.5 % $ 270,655 $ 286,147 5.7 %
Investment & Savings Products 56,107 59,583 64,374 62,763 65,563 74,783 25.5 % 115,691 140,346 21.3 %
Senior Health (3,762 ) (6,033 ) (7,583 ) (2,681 ) (14,153 ) (264,972 ) ) nm (9,795 ) (279,125 ) ) nm
Corporate & Other Distributed Products (15,944 ) (4,769 ) 787 (3,327 ) (10,542 ) 50,206 nm (20,713 ) 39,664 nm
Income before income taxes $ 166,942 $ 188,896 $ 198,801 $ 197,041 $ 179,236 $ 7,797 ) -95.9 % $ 355,838 $ 187,033 ) -47.4 %

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.
  • Contract acquisition costs (CAC) - Includes direct marketing costs incurred to acquire Senior Health product leads through internal and external sources, including commissions paid to Primerica representatives, as well as Senior Health agent compensation, training and licensing costs.

6 of 18

Reconciliation of Statement of Income GAAP to Non-GAAP Financial Measures PRIMERICA, INC.<br><br>Financial Supplement
YOY Q2 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 2.1 % $ 1,636,177 $ 1,676,989 2.5 %
Less: Premiums ceded to IPO Coinsurers 220,240 216,740 212,951 210,310 206,502 201,566 ) -7.0 % 436,980 408,068 ) -6.6 %
Term Life Insurance adjusted direct premiums $ 592,640 $ 606,557 $ 613,714 $ 619,608 $ 629,819 $ 639,102 5.4 % $ 1,199,197 $ 1,268,921 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 ) ) -0.6 % $ (827,747 ) $ (834,906 ) ) -0.9 %
Less: Premiums ceded to IPO Coinsurers (220,240 ) (216,740 ) (212,951 ) (210,310 ) (206,502 ) (201,566 ) 7.0 % (436,980 ) (408,068 ) 6.6 %
Term Life Insurance other ceded premiums $ (183,804 ) $ (206,964 ) $ (196,849 ) $ (200,146 ) $ (202,056 ) $ (224,782 ) ) -8.6 % $ (390,767 ) $ (426,838 ) ) -9.2 %
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 18.7 % $ 63,462 $ 76,258 20.2 %
Less: MTM investment adjustments (327 ) (852 ) (481 ) 1,215 (137 ) 189 nm nm (1,179 ) 52 nm nm
Adjusted net investment income $ 31,392 $ 33,250 $ 35,212 $ 36,429 $ 37,943 $ 38,263 15.1 % $ 64,642 $ 76,206 17.9 %
Reconciliation from Other Operating Expenses to Adjusted other operating expenses
Other operating expenses $ 89,534 $ 83,189 $ 79,354 $ 84,572 $ 100,943 $ 88,567 6.5 % $ 172,723 $ 189,510 9.7 %
Less: Restructuring costs — — — — — 824 nm nm — 824 nm nm
Adjusted other operating expenses $ 89,534 $ 83,189 $ 79,354 $ 84,572 $ 100,943 $ 87,743 5.5 % $ 172,723 $ 188,686 9.2 %
Reconciliation from Total Revenues to Adjusted Operating Revenues
Total revenues $ 690,036 $ 688,385 $ 710,932 $ 726,338 $ 742,829 $ 803,375 16.7 % $ 1,378,422 $ 1,546,205 12.2 %
Less: Investment (losses) gains (4,608 ) (328 ) (1,795 ) 835 1,305 (99 ) nm nm (4,936 ) 1,206 nm nm
Less: MTM investment adjustments (327 ) (852 ) (481 ) 1,215 (137 ) 189 nm nm (1,179 ) 52 nm nm
Less: Insurance claim proceeds — — — — — 50,000 nm nm — 50,000 nm nm
Adjusted operating revenues $ 694,972 $ 689,565 $ 713,208 $ 724,288 $ 741,661 $ 753,285 9.2 % $ 1,384,537 $ 1,494,946 8.0 %
Reconciliation from Income Before Income Taxes to Adjusted Operating Income Before Income Taxes
Income before income taxes $ 166,942 $ 188,896 $ 198,801 $ 197,041 $ 179,236 $ 7,797 ) -95.9 % $ 355,838 $ 187,033 ) -47.4 %
Less: Investment (losses) gains (4,608 ) (328 ) (1,795 ) 835 1,305 (99 ) nm nm (4,936 ) 1,206 nm nm
Less: MTM investment adjustments (327 ) (852 ) (481 ) 1,215 (137 ) 189 nm nm (1,179 ) 52 nm nm
Less: Insurance claim proceeds — — — — — 50,000 nm nm — 50,000 nm nm
Less: Restructuring costs — — — — — (824 ) nm nm — (824 ) nm nm
Less: Impairment of goodwill — — — — — (127,707 ) nm nm — (127,707 ) nm nm
Less: Impairment of other long-lived assets — — — — — (125,900 ) nm nm — (125,900 ) nm nm
Adjusted operating income before income taxes $ 171,877 $ 190,076 $ 201,077 $ 194,991 $ 178,067 $ 212,138 11.6 % $ 361,953 $ 390,205 7.8 %
Reconciliation from Net Income to Adjusted Net Operating Income
Net income $ 128,099 $ 144,504 $ 152,063 $ 151,935 $ 137,904 $ 1,171 ) -99.2 % $ 272,603 $ 139,074 ) -49.0 %
Less: Investment (losses) gains (4,608 ) (328 ) (1,795 ) 835 1,305 (99 ) nm nm (4,936 ) 1,206 nm nm
Less: MTM investment adjustments (327 ) (852 ) (481 ) 1,215 (137 ) 189 nm nm (1,179 ) 52 nm nm
Less: Insurance claim proceeds — — — — — 50,000 nm nm — 50,000 nm nm
Less: Restructuring costs — — — — — (824 ) nm nm — (824 ) nm nm
Less: Impairment of goodwill — — — — — (127,707 ) nm nm — (127,707 ) nm nm
Less: Tax impact of preceding items 1,151 277 535 (469 ) (269 ) 18,720 nm nm 1,428 18,451 nm nm
Less: Impairment of other long-lived assets — — — — — (125,900 ) nm nm — (125,900 ) nm nm
Less: Deferred tax benefit of preceding item — — — — — 35,126 nm nm — 35,126 nm nm
Less: Valuation allowance on Senior Health NOLs — — — — — (11,080 ) nm nm — (11,080 ) nm nm
Adjusted net operating income $ 131,883 $ 145,407 $ 153,804 $ 150,354 $ 137,005 $ 162,746 11.9 % $ 277,290 $ 299,751 8.1 %

All values are in US Dollars.

7 of 18

Reconciliation of Statement of Income GAAP to Non-GAAP Financial Measures PRIMERICA, INC.<br><br>Financial Supplement
YOY Q2 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 Senior Health Income Before Income Taxes to Senior Health Adjusted Operating Income Before Income Taxes
Income before income taxes $ (3,762 ) $ (6,033 ) $ (7,583 ) $ (2,681 ) $ (14,153 ) $ (264,972 ) ) nm $ (9,795 ) $ (279,125 ) ) nm
Less: Impairment of goodwill — — — — — (127,707 ) nm nm — (127,707 ) nm nm
Less: Impairment of other long-lived assets — — — — — (125,900 ) nm nm — (125,900 ) nm nm
Adjusted operating income before income taxes $ (3,762 ) $ (6,033 ) $ (7,583 ) $ (2,681 ) $ (14,153 ) $ (11,365 ) ) -88.4 % $ (9,795 ) $ (25,518 ) ) nm
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 nm $ (20,713 ) $ 39,664 nm
Less: Investment (losses) gains (4,608 ) (328 ) (1,795 ) 835 1,305 (99 ) nm nm (4,936 ) 1,206 nm nm
Less: MTM investment adjustments (327 ) (852 ) (481 ) 1,215 (137 ) 189 nm nm (1,179 ) 52 nm nm
Less: Insurance claim proceeds — — — — — 50,000 nm nm — 50,000 nm nm
Less: Restructuring costs — — — — — (824 ) nm nm — (824 ) nm nm
Adjusted operating income before income taxes $ (11,008 ) $ (3,589 ) $ 3,063 $ (5,377 ) $ (11,710 ) $ 940 126.2 % $ (14,598 ) $ (10,770 ) 26.2 %

All values are in US Dollars.

8 of 18

Term Life Insurance - Financial Results and Analysis PRIMERICA, INC.<br><br>Financial Supplement
YOY Q2 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 2.1 % $ 1,636,177 $ 1,676,989 2.5 %
Premiums ceded to IPO coinsurers (1) (220,240 ) (216,740 ) (212,951 ) (210,310 ) (206,502 ) (201,566 ) 7.0 % (436,980 ) (408,068 ) 6.6 %
Adjusted direct premiums (2) 592,640 606,557 613,714 619,608 629,819 639,102 5.4 % 1,199,197 1,268,921 5.8 %
Other ceded premiums (3) (183,804 ) (206,964 ) (196,849 ) (200,146 ) (202,056 ) (224,782 ) ) -8.6 % (390,767 ) (426,838 ) ) -9.2 %
Net premiums 408,836 399,594 416,864 419,462 427,762 414,320 3.7 % 808,430 842,083 4.2 %
Other, net 12,233 12,280 11,909 11,865 12,649 12,624 2.8 % 24,513 25,274 3.1 %
Revenues 421,069 411,873 428,773 431,327 440,412 426,944 3.7 % 832,942 867,356 4.1 %
Benefits and expenses:
Benefits and claims 158,940 143,855 158,508 160,782 163,847 146,268 1.7 % 302,795 310,115 2.4 %
Future policy benefits remeasurement (gain)/loss 1,035 (1,312 ) 251 (187 ) (319 ) (4,280 ) ) nm (277 ) (4,599 ) ) nm
Amortization of DAC 66,068 66,004 67,720 69,012 70,491 71,916 9.0 % 132,072 142,407 7.8 %
Insurance commissions 4,590 5,496 4,373 5,356 6,047 3,785 ) -31.1 % 10,086 9,833 ) -2.5 %
Insurance expenses 59,896 57,717 56,698 56,080 61,979 61,476 6.5 % 117,613 123,454 5.0 %
Benefits and expenses 290,529 271,759 287,549 291,042 302,044 279,164 2.7 % 562,288 581,209 3.4 %
Income before income taxes $ 130,540 $ 140,115 $ 141,224 $ 140,285 $ 138,367 $ 147,780 5.5 % $ 270,655 $ 286,147 5.7 %
Total Term Life Insurance - Financial Analysis
Post-IPO direct premiums (4) $ 477,227 $ 489,826 $ 495,769 $ 499,965 $ 508,687 $ 517,691 5.7 % $ 967,054 $ 1,026,378 6.1 %
Pre-IPO direct premiums (5) 335,652 333,471 330,896 329,953 327,634 322,977 ) -3.1 % 669,123 650,611 ) -2.8 %
Total direct premiums $ 812,880 $ 823,297 $ 826,665 $ 829,918 $ 836,321 $ 840,668 2.1 % $ 1,636,177 $ 1,676,989 2.5 %
Premiums ceded to IPO coinsurers $ 220,240 $ 216,740 $ 212,951 $ 210,310 $ 206,502 $ 201,566 ) -7.0 % $ 436,980 $ 408,068 ) -6.6 %
% of Pre-IPO direct premiums 65.6 % 65.0 % 64.4 % 63.7 % 63.0 % 62.4 % nm nm 65.3 % 62.7 % nm nm
Benefits and claims, net (6) $ 343,779 $ 349,506 $ 355,608 $ 360,741 $ 365,584 $ 366,770 4.9 % $ 693,285 $ 732,353 5.6 %
% of adjusted direct premiums 58.0 % 57.6 % 57.9 % 58.2 % 58.0 % 57.4 % nm nm 57.8 % 57.7 % nm nm
DAC amortization & insurance commissions $ 70,657 $ 71,500 $ 72,093 $ 74,367 $ 76,538 $ 75,701 5.9 % $ 142,157 $ 152,239 7.1 %
% of adjusted direct premiums 11.9 % 11.8 % 11.7 % 12.0 % 12.2 % 11.8 % nm nm 11.9 % 12.0 % nm nm
Insurance expenses, net (7) $ 47,663 $ 45,437 $ 44,789 $ 44,215 $ 49,329 $ 48,851 7.5 % $ 93,100 $ 98,181 5.5 %
% of adjusted direct premiums 8.0 % 7.5 % 7.3 % 7.1 % 7.8 % 7.6 % nm nm 7.8 % 7.7 % nm nm
Total Term Life income before income taxes $ 130,540 $ 140,115 $ 141,224 $ 140,285 $ 138,367 $ 147,780 5.5 % $ 270,655 $ 286,147 5.7 %
Term Life operating margin (8) 22.0 % 23.1 % 23.0 % 22.6 % 22.0 % 23.1 % nm nm 22.6 % 22.6 % 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 18

Term Life Insurance - Key Statistics PRIMERICA, INC.<br><br>Financial Supplement
YOY Q2 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 4.7 % 135,208 141,572 4.7 %
11,118 12,638 12,311 13,029 12,949 14,402 14.0 % 23,756 27,351 15.1 %
(9,896 ) (11,262 ) (11,064 ) (10,510 ) (11,666 ) (11,468 ) ) -1.8 % (21,158 ) (23,134 ) ) -9.3 %
Life-insurance licensed sales force, end of period 136,430 137,806 139,053 141,572 142,855 145,789 5.8 % 137,806 145,789 5.8 %
Estimated annualized issued term life premium (mills) (1):
$ 70.7 $ 82.0 $ 74.0 $ 75.6 $ 73.1 $ 86.7 5.7 % $ 152.7 $ 159.7 4.6 %
18.2 19.7 18.7 17.7 18.1 19.9 0.9 % 37.9 38.0 0.2 %
Total estimated annualized issued term life premium $ 88.9 $ 101.7 $ 92.7 $ 93.3 $ 91.2 $ 106.5 4.8 % $ 190.6 $ 197.7 3.7 %
Issued term life policies 84,561 96,953 88,589 88,757 86,587 100,768 3.9 % 181,514 187,355 3.2 %
Estimated average annualized issued term life premium per policy (1)(2) $ 836 $ 846 $ 836 $ 852 $ 844 $ 860 1.7 % $ 841 $ 853 1.4 %
Term life face amount in-force, beginning of period (mills) $ 916,808 $ 922,845 $ 934,867 $ 937,856 $ 944,609 $ 947,101 2.6 % $ 916,808 $ 944,609 3.0 %
28,124 32,203 29,452 29,322 28,725 33,155 3.0 % 60,327 61,880 2.6 %
(22,210 ) (22,583 ) (24,143 ) (25,293 ) (23,323 ) (28,241 ) ) -25.1 % (44,793 ) (51,564 ) ) -15.1 %
124 2,401 (2,320 ) 2,724 (2,911 ) (1,134 ) ) -147.2 % 2,525 (4,046 ) ) nm
Term life face amount in-force, end of period $ 922,845 $ 934,867 $ 937,856 $ 944,609 $ 947,101 $ 950,880 1.7 % $ 934,867 $ 950,880 1.7 %

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 18

Investment and Savings Products - Financial Results and Financial Analysis PRIMERICA, INC.<br><br>Financial Supplement
YOY Q2 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 35.0 % $ 147,346 $ 189,924 28.9 %
Asset-based 111,904 113,335 119,413 118,303 128,532 132,765 17.1 % 225,239 261,297 16.0 %
Account-based 22,790 23,095 23,344 23,960 23,180 23,740 2.8 % 45,886 46,919 2.3 %
Other, net 3,120 3,121 3,145 3,119 3,258 3,224 3.3 % 6,240 6,482 3.9 %
Revenues 210,202 214,509 218,898 221,656 243,716 260,906 21.6 % 424,712 504,622 18.8 %
Benefits and expenses:
Amortization of DAC 1,493 1,409 1,311 1,267 1,201 1,478 4.9 % 2,901 2,679 ) -7.7 %
Insurance commissions 3,308 3,273 3,321 3,246 3,400 3,343 2.1 % 6,581 6,743 2.5 %
Sales commissions:
Sales-based 52,452 53,630 52,343 54,057 62,814 70,509 31.5 % 106,082 133,322 25.7 %
Asset-based 54,276 55,085 58,793 58,388 64,208 66,525 20.8 % 109,361 130,733 19.5 %
Other operating expenses 42,567 41,529 38,757 41,935 46,531 44,269 6.6 % 84,095 90,800 8.0 %
Benefits and expenses 154,095 154,926 154,524 158,893 178,153 186,123 20.1 % 309,021 364,276 17.9 %
Income before income taxes $ 56,107 $ 59,583 $ 64,374 $ 62,763 $ 65,563 $ 74,783 25.5 % $ 115,691 $ 140,346 21.3 %
Financial Analysis
Fees paid based on client asset values (1) $ 8,034 $ 8,142 $ 8,608 $ 8,102 $ 9,342 $ 9,548 17.3 % $ 16,176 $ 18,890 16.8 %
Fees paid based on fee-generating positions (2) 11,528 10,216 9,469 10,270 11,426 10,483 2.6 % 21,744 21,909 0.8 %
Other operating expenses 23,005 23,171 20,680 23,563 25,763 24,238 4.6 % 46,176 50,001 8.3 %
Total other operating expenses $ 42,567 $ 41,529 $ 38,757 $ 41,935 $ 46,531 $ 44,269 6.6 % $ 84,095 $ 90,800 8.0 %
Sales-based variable margin as % of revenue-generating sales (3)
U.S. 1.21 % 1.21 % 1.22 % 1.27 % 1.25 % 1.33 % nm nm 1.21 % 1.29 % nm nm
Canada 0.33 % 0.37 % 0.41 % 0.45 % 0.48 % 0.37 % nm nm 0.34 % 0.43 % nm nm
Total 1.13 % 1.16 % 1.17 % 1.22 % 1.19 % 1.27 % nm nm 1.15 % 1.23 % 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 % nm nm 0.084 % 0.082 % nm nm
Canada 0.102 % 0.104 % 0.105 % 0.105 % 0.104 % 0.104 % nm nm 0.206 % 0.208 % nm nm
Total 0.052 % 0.051 % 0.052 % 0.052 % 0.051 % 0.050 % nm nm 0.103 % 0.101 % 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 nm nm $ 7.65 $ 7.77 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 18

Investment and Savings Products - Key Statistics PRIMERICA, INC.<br><br>Financial Supplement
YOY Q2 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 23.0 % $ 1,970.2 $ 2,390.7 21.3 %
149.8 106.2 110.1 112.0 179.6 147.6 38.9 % 256.0 327.2 27.8 %
80.7 89.3 72.7 68.9 81.0 98.0 9.7 % 170.0 179.0 5.3 %
556.4 649.1 628.8 671.9 756.0 941.4 45.0 % 1,205.5 1,697.4 40.8 %
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 31.1 % 3,601.7 4,594.3 27.6 %
306.1 317.0 236.0 353.2 370.9 456.1 43.9 % 623.1 827.0 32.7 %
183.4 193.6 152.4 161.8 197.7 196.5 1.5 % 377.0 394.2 4.6 %
51.9 27.9 17.4 17.2 23.0 14.8 ) -47.1 % 79.8 37.8 ) -52.7 %
Total product sales $ 2,300.0 $ 2,381.6 $ 2,174.2 $ 2,355.9 $ 2,770.4 $ 3,082.9 29.4 % $ 4,681.6 $ 5,853.3 25.0 %
$ 333.2 $ 299.8 $ 262.5 $ 273.8 $ 377.4 $ 344.1 14.8 % $ 633.0 $ 721.4 14.0 %
51.9 27.9 17.4 17.2 23.0 14.8 ) -47.1 % 79.8 37.8 ) -52.7 %
Total Canada product sales 385.0 327.7 279.8 291.0 400.4 358.8 9.5 % 712.8 759.2 6.5 %
Total U.S. product sales 1,914.9 2,053.9 1,894.4 2,065.0 2,370.0 2,724.1 32.6 % 3,968.8 5,094.1 28.4 %
Total product sales $ 2,300.0 $ 2,381.6 $ 2,174.2 $ 2,355.9 $ 2,770.4 $ 3,082.9 29.4 % $ 4,681.6 $ 5,853.3 25.0 %
Client asset values, beginning of period (mills) $ 83,949 $ 87,621 $ 91,646 $ 88,441 $ 96,735 $ 103,340 17.9 % $ 83,949 $ 96,735 15.2 %
2,300 2,382 2,174 2,356 2,770 3,083 29.4 % 4,682 5,853 25.0 %
(1,658 ) (1,839 ) (1,982 ) (2,184 ) (2,497 ) (2,660 ) ) -44.6 % (3,497 ) (5,157 ) ) -47.4 %
Net flows 642 542 192 172 274 423 ) -22.0 % 1,184 697 ) -41.2 %
16 315 (303 ) 344 (392 ) (163 ) ) nm 330 (555 ) ) nm
3,014 3,168 (3,094 ) 7,777 6,724 1,512 ) -52.3 % 6,182 8,236 33.2 %
Client asset values, end of period $ 87,621 $ 91,646 $ 88,441 $ 96,735 $ 103,340 $ 105,112 14.7 % $ 91,646 $ 105,112 14.7 %
3.1 % 2.5 % 0.8 % 0.8 % 1.1 % 1.6 % % nm 2.8 % 1.4 % % nm
Average client asset values (mills)
$ 42,096 $ 43,225 $ 44,748 $ 44,622 $ 49,013 $ 50,560 17.0 % $ 42,661 $ 49,787 16.7 %
11,345 11,567 11,817 11,722 12,850 13,259 14.6 % 11,456 13,055 14.0 %
7,338 7,613 7,850 7,851 8,806 9,376 23.2 % 7,475 9,091 21.6 %
2,729 2,760 2,793 2,807 2,824 2,868 3.9 % 2,745 2,846 3.7 %
20,744 21,323 21,999 21,762 23,665 24,663 15.7 % 21,034 24,164 14.9 %
2,329 2,324 2,298 2,232 2,344 2,266 ) -2.5 % 2,326 2,305 ) -0.9 %
Total $ 86,581 $ 88,813 $ 91,505 $ 90,995 $ 99,502 $ 102,993 16.0 % $ 87,697 $ 101,247 15.5 %
$ 11,345 $ 11,567 $ 11,817 $ 11,722 $ 12,850 $ 13,259 14.6 % $ 11,456 $ 13,055 14.0 %
2,329 2,324 2,298 2,232 2,344 2,266 ) -2.5 % 2,326 2,305 ) -0.9 %
Total Canada average client assets 13,674 13,891 14,115 13,954 15,194 15,526 11.8 % 13,782 15,360 11.4 %
Total U.S. average client assets 72,907 74,922 77,391 77,042 84,308 87,468 16.7 % 73,915 85,888 16.2 %
Total average client assets $ 86,581 $ 88,813 $ 91,505 $ 90,995 $ 99,502 $ 102,993 16.0 % $ 87,697 $ 101,247 15.5 %
Average number of fee-generating positions (thous) (3)
2,316 2,331 2,342 2,351 2,359 2,378 2.0 % 2,324 2,369 1.9 %
829 834 839 842 847 857 2.7 % 832 852 2.4 %
Total 3,145 3,165 3,181 3,193 3,206 3,235 2.2 % 3,155 3,221 2.1 %

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 18

Senior Health - Financial Results, Financial Analysis Key Statistics PRIMERICA, INC.<br><br>Financial Supplement
YOY Q2 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
Senior Health Income Before Income Taxes
Revenues:
Commissions and fees (1) $ 15,755 $ 11,371 $ 11,388 $ 19,049 $ 6,077 $ 11,576 1.8 % $ 27,125 $ 17,652 ) -34.9 %
Other, net (2) 2,955 3,519 2,048 1,099 803 845 ) -76.0 % 6,474 1,648 ) -74.5 %
Revenues 18,710 14,889 13,436 20,148 6,880 12,420 ) -16.6 % 33,599 19,300 ) -42.6 %
Benefits and expenses:
Contract acquisition costs (3) 14,984 12,602 12,568 15,079 13,533 15,724 24.8 % 27,586 29,257 6.1 %
Other operating expenses 7,488 8,320 8,451 7,750 7,500 8,061 ) -3.1 % 15,808 15,561 ) -1.6 %
Adjusted operating benefits and expenses 22,471 20,922 21,019 22,829 21,033 23,785 13.7 % 43,394 44,818 3.3 %
Adjusted operating income before income taxes $ (3,762 ) $ (6,033 ) $ (7,583 ) $ (2,681 ) $ (14,153 ) $ (11,365 ) ) -88.4 % $ (9,795 ) $ (25,518 ) ) nm
Senior Health EBITDA
Adjusted operating income before income taxes $ (3,762 ) $ (6,033 ) $ (7,583 ) $ (2,681 ) $ (14,153 ) $ (11,365 ) ) -88.4 % $ (9,795 ) $ (25,518 ) ) nm
Less: Amortization of intangibles (2,800 ) (2,800 ) (2,800 ) (2,800 ) (2,800 ) (2,800 ) nm (5,600 ) (5,600 ) nm
Less: Depreciation (200 ) (160 ) (166 ) (173 ) (144 ) (119 ) 25.7 % (360 ) (263 ) 27.0 %
Adjusted EBITDA (4) $ (762 ) $ (3,073 ) $ (4,617 ) $ 292 $ (11,209 ) $ (8,446 ) ) nm $ (3,834 ) $ (19,655 ) ) nm
Financial Analysis and Key Statistics
Senior Health submitted policies (5) 19,826 13,885 10,718 18,663 16,068 15,767 13.6 % 33,711 31,835 ) -5.6 %
Senior Health approved policies (6) 18,413 12,915 9,948 17,181 15,023 14,646 13.4 % 31,328 29,669 ) -5.3 %
Primerica representatives Senior Health certified (7) 94,623 94,335 93,217 89,082 81,348 66,371 ) -29.6 % 94,335 66,371 ) -29.6 %
Senior Health submitted policies sourced by Primerica representatives 2,073 1,707 1,549 5,111 2,051 1,425 ) -16.5 % 3,780 3,476 ) -8.0 %
LTV per approved policy (8) $ 856 $ 880 $ 911 $ 1,109 $ 926 $ 914 3.8 % $ 866 $ 920 6.3 %
CAC per approved policy (8) $ 814 $ 976 $ 1,263 $ 878 $ 901 $ 1,074 10.0 % $ 881 $ 986 12.0 %
LTV / CAC multiple 1.1 x 0.9 x 0.7 x 1.3 x 1.0 x 0.9 x x nm 1.0 x 0.9 x x nm

All values are in US Dollars.

  • Commission revenue recognized based on the estimated Lifetime value (LTV) to be collected over the estimated life of an approved policy for the relevant period based on multiple factors, including but not limited to contracted commission rates, carrier mix, expected policy turnover, historical chargeback activity and applied constraints. Adjustments to revenue outside of LTV for approved policies from prior periods are recognized when our cash collections are different, or are expected to be, from the estimated constrained LTV’s which we refer to as tail revenue.
  • Primarily reflects marketing development revenues, which are non-commission revenues received from carriers to support marketing efforts and lead acquisition.
  • Contract acquisition costs (CAC) - Includes direct marketing costs incurred to acquire leads through internal and external sources, including commissions paid to Primerica representatives, as well as ETQ agent compensation, training and licensing costs.
  • Adjusted EBITDA - Earnings before interest, taxes, depreciation, amortization and certain adjustments for non-cash or non-recurring expenses including purchase accounting adjustments.
  • Senior Health submitted policies - represents the number of completed applications that, with respect to each such application, the applicant has authorized us to submit to the health insurance carrier. The applicant may need to take additional actions, including providing subsequent information before the application is reviewed by the health insurance carrier.
  • Senior Health approved policies - represent an estimate of submitted policies approved by health insurance carriers during the indicated period. Not all approved policies will go in force.
  • A Primerica independent contractor sales representative does not need to be life-insurance licensed in order to obtain a Primerica Senior Health certification.
  • In whole dollars.

13 of 18

Corporate Other Distributed Products - Financial Results PRIMERICA, INC.<br><br>Financial Supplement
YOY Q2 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 ) -6.2 % $ 9,991 $ 9,415 ) -5.8 %
Ceded premiums (1,304 ) (1,562 ) (1,215 ) 273 (1,205 ) (1,213 ) 22.3 % (2,866 ) (2,419 ) 15.6 %
Net premiums 3,689 3,436 3,801 4,631 3,520 3,477 1.2 % 7,125 6,997 ) -1.8 %
Adjusted net investment income 31,392 33,250 35,213 36,429 37,943 38,263 15.1 % 64,641 76,206 17.9 %
Commissions and fees:
Prepaid legal services 3,991 4,421 5,311 3,806 3,591 3,924 ) -11.2 % 8,412 7,516 ) -10.7 %
Auto and homeowners insurance 1,831 2,349 2,951 2,133 1,777 2,413 2.7 % 4,180 4,190 0.3 %
Mortgage loans 1,211 1,775 1,733 1,530 1,499 2,211 24.6 % 2,987 3,711 24.2 %
Other sales commissions 1,676 1,826 1,765 1,781 1,618 1,963 7.5 % 3,502 3,581 2.3 %
Adjusted other, net 1,200 1,236 1,327 846 704 764 ) -38.2 % 2,436 1,467 ) -39.8 %
Adjusted operating revenues 44,990 48,293 52,102 51,157 50,653 53,014 9.8 % 93,283 103,668 11.1 %
Benefits and expenses:
Benefits and claims 4,327 5,057 3,554 7,957 2,475 3,762 ) -25.6 % 9,384 6,236 ) -33.5 %
Future policy benefits remeasurement (gain)/loss (477 ) (554 ) (72 ) 933 374 (49 ) 91.1 % (1,031 ) 325 131.5 %
Amortization of DAC 362 697 375 99 357 250 ) -64.2 % 1,060 606 ) -42.8 %
Insurance commissions 241 373 217 429 187 271 ) -27.4 % 614 458 ) -25.4 %
Insurance expenses 1,229 1,377 1,123 1,341 1,171 1,209 ) -12.2 % 2,606 2,380 ) -8.7 %
Sales commissions 4,147 4,907 5,064 4,303 4,117 5,120 4.3 % 9,054 9,237 2.0 %
Interest expense 6,690 6,686 6,632 6,586 6,771 6,099 ) -8.8 % 13,376 12,870 ) -3.8 %
Adjusted other operating expenses 39,480 33,340 32,146 34,886 46,913 35,413 6.2 % 72,820 82,325 13.1 %
Adjusted benefits and expenses 55,999 51,882 49,039 56,533 62,363 52,074 0.4 % 107,881 114,437 6.1 %
Adjusted operating income before income taxes $ (11,008 ) $ (3,589 ) $ 3,063 $ (5,377 ) $ (11,710 ) $ 940 126.2 % $ (14,598 ) $ (10,770 ) 26.2 %

All values are in US Dollars.

14 of 18

Investment Portfolio - Summary of Holdings PRIMERICA, INC.<br><br>Financial Supplement
As of or for the period ended June 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 $ 627,261 $ 627,292 $ (31 ) 18.2 % 17.0 %
Fixed Income:
Treasury 16,689 17,280 (591 ) 0.5 % 0.5 % 2.90 % AAA
Government 241,161 262,376 (21,215 ) 7.0 % 7.1 % 3.23 % AA-
Tax-Exempt Municipal 32,846 35,805 (2,958 ) 1.0 % 1.0 % 2.70 % AA
Corporate 1,428,428 1,531,049 (102,621 ) 41.4 % 41.5 % 4.10 % BBB+
Mortgage Backed 447,159 516,426 (69,267 ) 13.0 % 14.0 % 3.40 % AAA
Asset Backed 232,211 240,767 (8,556 ) 6.7 % 6.5 % 4.81 % AA-
Cmbs 105,698 118,240 (12,542 ) 3.1 % 3.2 % 3.67 % AA-
Private 291,157 310,881 (19,723 ) 8.4 % 8.4 % 4.92 % BBB+
Redeemable Preferred 3,870 4,248 (378 ) 0.1 % 0.1 % 5.37 % BBB-
Total Fixed Income 2,799,219 3,037,072 (237,853 ) 81.1 % 82.3 % 4.01 % A
Equities and Other:
Perpetual Preferred 4,427 4,427 - 0.1 % 0.1 %
Common Stock 18,220 18,220 (0 ) 0.5 % 0.5 %
Mutual Fund 3,379 3,379 (0 ) 0.1 % 0.1 %
Total Equities 26,026 26,026 (0 ) 0.8 % 0.7 %
Total Invested Assets $ 3,452,506 $ 3,690,391 $ (237,884 ) 100.0 % 100.0 %
Public Corporate Portfolio by Sector
Insurance $ 197,299 $ 212,848 $ (15,548 ) 13.8 % 13.9 %
Energy 175,605 185,947 (10,342 ) 12.3 % 12.1 %
Consumer Non Cyclical 136,174 149,699 (13,525 ) 9.5 % 9.8 %
Reits 124,908 137,847 (12,939 ) 8.7 % 9.0 %
Consumer Cyclical 117,384 125,919 (8,534 ) 8.2 % 8.2 %
Technology 100,563 106,335 (5,772 ) 7.0 % 6.9 %
Capital Goods 89,208 94,325 (5,117 ) 6.2 % 6.2 %
Electric 85,910 90,867 (4,958 ) 6.0 % 5.9 %
Banking 85,154 86,838 (1,684 ) 6.0 % 5.7 %
Basic Industry 66,036 72,685 (6,649 ) 4.6 % 4.7 %
Finance Companies 61,824 65,640 (3,816 ) 4.3 % 4.3 %
Communications 56,489 59,846 (3,357 ) 4.0 % 3.9 %
Transportation 51,600 55,054 (3,453 ) 3.6 % 3.6 %
Brokerage 48,389 52,645 (4,256 ) 3.4 % 3.4 %
Natural Gas 13,940 14,218 (278 ) 1.0 % 0.9 %
Industrial Other 5,890 6,765 (875 ) 0.4 % 0.4 %
Financial Other 5,485 5,856 (371 ) 0.4 % 0.4 %
Utility Other 4,625 5,390 (765 ) 0.3 % 0.4 %
Owned No Guarantee 1,943 2,325 (382 ) 0.1 % 0.2 %
Total Corporate portfolio $ 1,428,428 $ 1,531,049 $ (102,621 ) 100.0 % 100.0 %
Fixed-Maturity Securities - Effective Maturity
Effective maturity
< 1 Yr. $ 236,561 $ 239,028 $ (2,467 ) 8.5 % 7.9 % 3.88 %
1-2 Yrs. 279,794 287,007 (7,213 ) 10.0 % 9.5 % 4.21 %
2-5 Yrs. 777,142 815,549 (38,407 ) 27.8 % 26.9 % 4.15 %
5-10 Yrs. 1,110,095 1,254,878 (144,784 ) 39.7 % 41.3 % 3.60 %
> 10 Yrs. 395,627 440,609 (44,982 ) 14.1 % 14.5 % 4.84 %
Total Fixed Income $ 2,799,219 $ 3,037,072 $ (237,853 ) 100.0 % 100.0 % 4.01 %
Duration
Fixed Income portfolio duration 4.9 years

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

15 of 18

Investment Portfolio - Quality Ratings As of June 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 $ 556,083 18.3 %
AA 427,055 14.1 %
A 736,558 24.3 %
BBB 1,272,114 41.9 %
Below Investment Grade 45,065 1.5 %
NA 197 0.0 %
Total Fixed Income $ 3,037,072 100.0 %
Amortized Cost % of Total Amortized Cost % of Total
Public Corporate asset class: Private Placement asset class:
Rating Rating
AAA $ 6,854 0.4 % AAA $ - —
AA 63,318 4.1 % AA 8,987 2.9 %
A 386,355 25.2 % A 82,516 26.5 %
BBB 1,033,488 67.5 % BBB 218,083 70.2 %
Below Investment Grade 40,859 2.7 % Below Investment Grade 1,294 0.4 %
NA 176 0.0 % NA - —
Total Corporate $ 1,531,049 100.0 % Total Private $ 310,881 100.0 %
CMBS asset class: Mortgage-Backed asset class:
Rating Rating
AAA $ 52,552 44.4 % AAA $ 397,383 76.9 %
AA 10,390 8.8 % AA 118,856 23.0 %
A 55,298 46.8 % A 105 0.0 %
BBB - — BBB - —
Below Investment Grade - — Below Investment Grade 61 0.0 %
NA - — NA 21 0.0 %
Total CMBS $ 118,240 100.0 % Total Mortgage-Backed $ 516,426 100.0 %
Asset-Backed asset class: Treasury & Government asset classes:
Rating Rating
AAA $ 67,508 28.0 % AAA $ 31,106 11.1 %
AA 32,962 13.7 % AA 165,263 59.1 %
A 138,581 57.6 % A 66,885 23.9 %
BBB - — BBB 15,266 5.5 %
Below Investment Grade 1,715 0.7 % Below Investment Grade 1,137 0.4 %
NA - — NA - —
Total Asset-Backed $ 240,767 100.0 % Total Treasury & Government $ 279,656 100.0 %
NAIC Designations
1 $ 1,439,375 55.4 %
2 1,145,640 42.6 %
3 45,080 1.6 %
4 6,161 0.3 %
5 1,137 0.0 %
6 0 0.0 %
U.S. Insurer Fixed Income (2) 2,637,393 100.0 %
Other (3) 425,705
Cash and cash equivalents 627,292
Total Invested Assets $ 3,690,391
  • 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.

16 of 18

Investment Portfolio - Supplemental Data and Trends PRIMERICA, INC.<br><br>Financial Supplement
YOY Q2
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(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 16.2%
Fixed-maturity securities (held-to-maturity) 16,435 16,608 16,306 16,126 15,785 15,659 ) -5.7%
Equity Securities 380 380 366 397 390 323 ) -15.0%
Deposit asset underlying 10% reinsurance treaty 2,377 2,488 2,504 2,415 2,311 2,211 ) -11.1%
Deposit asset - Mark to Market (327 ) (852 ) (481 ) 1,215 (137 ) 189 122.2%
Policy loans and other invested assets (72 ) 352 475 542 461 544 54.5%
Cash & cash equivalents 5,128 5,840 6,609 6,024 6,981 6,640 13.7%
Total investment income 49,727 51,172 53,159 55,937 55,727 56,183 9.8%
Investment expenses 2,227 2,167 2,122 2,167 2,136 2,072 ) -4.4%
Interest Expense on Surplus Note 16,435 16,608 16,306 16,126 15,785 15,659 ) -5.7%
Net investment income $ 31,065 $ 32,397 $ 34,731 $ 37,644 $ 37,806 $ 38,452 18.7%
Fixed income book yield, end of period 3.57 % 3.63 % 3.79 % 3.83 % 3.93 % 4.01 %
New money yield 5.57 % 5.46 % 6.04 % 6.67 % 5.70 % 5.78 %
YOY Q2
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 % %
AA 11.3 % 11.4 % 14.3 % 14.9 % 14.8 % 14.1 % %
A 25.0 % 24.8 % 24.8 % 24.9 % 24.1 % 24.3 % %
BBB 40.5 % 40.9 % 39.7 % 39.4 % 40.5 % 41.9 % %
Below Investment Grade 2.2 % 2.0 % 1.9 % 2.0 % 1.6 % 1.5 % %
NA 0.2 % 0.1 % 0.3 % 0.0 % 0.0 % 0.0 % %
100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
A A A A A A

All values are in US Dollars.

As of June 30, 2024 As of June 30, 2024 As of June 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 $ 15,425 $ 15,928 A+ Canada $ 91,063 $ 99,091 AAA $ 695 $ 701
2 Canada 15,001 15,872 AAA United Kingdom 26,614 26,775 AA — —
3 Province of Alberta Canada 14,572 15,636 AA- Australia 15,891 16,960 A 10,776 12,438
4 Province of Quebec Canada 14,524 15,092 AA- Ireland 11,578 11,100 BBB 14,010 14,816
5 Realty Income Corp 14,016 15,037 A- Cayman Islands 11,093 11,043 Below Investment Grade 638 1,137
6 ONEOK Inc 13,881 14,385 BBB Japan 6,667 6,700 NA — —
7 Ontario Teachers' Pension Plan 12,957 14,299 AA+ Mexico 6,611 7,682 Total $ 26,119 $ 29,091
8 Boeing Co 11,569 11,838 BBB- France 5,527 5,740
9 Intact Financial Corp 11,454 11,415 A+ Netherlands 5,419 5,490
10 Manulife Financial Corp 10,818 11,581 A Bermuda 5,037 5,241 Non-Government Investments (1)
11 Berkshire Hathaway Inc 10,618 10,644 AA Luxembourg 4,960 4,700
12 TC Energy Corp 10,038 11,168 BBB+ Israel 3,540 3,563 AAA $ 11,225 $ 11,147
13 Province of Nova Scotia Canada 9,690 10,249 AA- Malta 3,130 3,130 AA 11,996 11,946
14 Alimentation Couche-Tard Inc 9,536 9,668 BBB- Germany 2,975 2,990 A 62,455 64,049
15 Morgan Stanley 9,428 9,617 BBB+ Brazil 2,227 2,351 BBB 141,791 149,489
16 Province of Saskatchewan Canada 9,291 9,596 AA Emerging Markets (2) 11,339 12,855 Below Investment Grade 3,944 3,801
17 ConocoPhillips 9,174 10,712 A- All Other 45,417 45,669 NA 1,557 1,557
18 Old Republic International Corp 8,679 8,720 BBB+ Total $ 259,087 $ 271,080 Total $ 232,968 $ 241,989
19 Fairfax Financial Holdings Ltd 8,577 9,734 BBB
20 Walmart Inc 8,471 8,661 AA
21 Tokyo Century Corp 8,467 8,974 BBB
22 Oglethorpe Power Corp 8,424 9,377 BBB+
23 Kemper Corp 8,331 9,091 BBB-
24 Broadcom Inc 8,269 8,672 BBB
25 Brookfield Corp 8,255 8,434 A+
Total $ 269,465 $ 284,398
% of total fixed income portfolio 7.8 % 7.7 %
  • 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.

17 of 18

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
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
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
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 )
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
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
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
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
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
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 )
Foreign currency impact, net 4,746 1,968 862 (7,524 ) 2,929 124 2,401 (2,320 ) 2,724 (2,911 ) (1,134 )
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
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
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
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
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
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
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

18 of 18

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