Equibles

8-K

Primerica, Inc. (PRI)

8-K 2023-05-08 For: 2023-05-08
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): May 8, 2023

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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 May 8, 2023, Primerica, Inc. (the “Company”) announced its results of operations for the quarter ended March 31, 2023. 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) and fair value mark-to-market (“MTM”) investment adjustments, including credit impairments, for all periods presented. We exclude investment gains (losses), including credit impairments, and MTM investment adjustments in measuring these non-GAAP financial measures to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains (losses) and market pricing variations prior to an invested asset’s maturity or sale that are not directly associated with the Company’s insurance operations. Adjusted operating income before taxes, adjusted net operating income, and diluted adjusted operating earnings per share also exclude transaction-related expenses/recoveries associated with the purchase of e-TeleQuote Insurance, Inc. and subsidiaries (collectively, “e-TeleQuote”), adjustments to share-based compensation expense for shares exchanged in the business combination, and non-cash goodwill impairment charges. We exclude e-TeleQuote transaction-related expenses/recoveries and non-cash goodwill impairment charges as these are non-recurring items that will cause incomparability between period-over-period results. We exclude adjustments to share-based compensation expense for shares exchanged in the business combination to eliminate period-over-period fluctuations that may obscure comparisons of operating results primarily due to the volatility of changes in the fair value of shares which were acquired for no additional consideration. Adjusted operating income before income taxes and adjusted net operating income exclude income attributable to the noncontrolling interest to present only the income that is attributable to stockholders of the Company. 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 investors should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP.

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

Item 7.01 Regulation FD Disclosure.

On May 8, 2023, the Company posted to the “Investor Relations” section of its website certain supplemental financial information relating to the quarter ended March 31, 2023. 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 May 8, 2023 – Primerica Reports First Quarter 2023 Results
99.2 Primerica, Inc. Supplemental Financial Information – First Quarter 2023
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: May 8, 2023 PRIMERICA, INC.
/s/ Alison S. Rand
Alison S. Rand
Executive Vice President and Chief Financial Officer

EX-99

Exhibit 99.1

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PRIMERICA REPORTS FIRST QUARTER 2023 RESULTS

New life-licensed representatives up 11% with life-licensed sales force ending the quarter at 136,430, up 5%

Term Life face amount issued up 14% to $28.1 billion

Investment and Savings Products positive net flows of $642 million, however market volatility continues to pressure sales and client asset values

Senior Health approved policies and annual policy renewal rates in line with expectations

Net earnings per diluted share (EPS) of $3.38 increased 16%; return on stockholders’ equity (ROE) of 25.5%

Diluted adjusted operating EPS of $3.49 increased 18%; adjusted net operating income return on adjusted stockholders’ equity (ROAE) of 24.2%

Declared dividend of $0.65 per share, payable on June 12, 2023, and repurchased $85 million of common stock during the quarter

Duluth, GA, May 8, 2023 – Primerica, Inc. (NYSE: PRI) today announced financial results for the quarter ended March 31, 2023. Total revenues of $690.0 million were largely unchanged compared to the first quarter of 2022. Net income attributable to Primerica of $125.1 million increased 9%, while earnings per diluted share of $3.38 increased 16% compared to the same period in the prior year. ROE was 25.5% for the quarter.

Adjusted operating revenues of $695.0 million were relatively unchanged compared to the first quarter of 2022. Adjusted net operating income of $128.9 million increased 10%, while adjusted operating earnings per diluted share of $3.49 increased 18% compared to the same period in the prior year. ROAE was 24.2% for the quarter.

The Company adopted ASU 2018-12 – Targeted Improvements to the Accounting for Long-Duration Contracts, or LDTI, on January 1, 2023 with a transition date of January 1, 2021. All prior period financial information contained herein has been restated to reflect the adoption of LDTI.

First quarter results reflected the continued growth of adjusted direct premiums in the Term Life segment, the benefit of higher interest rates on net investment income in the Corporate and Other Distributed Products segment and the Company’s progress in improving the profitability of the Senior Health segment. Economic uncertainty and equity market volatility continued to pressure sales and client asset values in the Investment and Savings Products segment.

“Our performance in the first quarter demonstrates the ongoing needs of middle-income families for financial guidance and solutions, along with Primerica’s unique ability to serve our market,” said Glenn Williams, Chief Executive Officer. “This combination led to growth in our term life sales as well as strong results in building distribution. Positive net flows in our ISP business indicate that our clients continue in their commitment to saving for the future.”

First Quarter Distribution & Segment Results

Distribution Results
Q1 2023 Q1 2022 % Change Adjusted Q1 2022 % Change
Life-Licensed Sales Force 136,430 130,206 5 %
Recruits 93,540 84,707 10 %
New Life-Licensed Representatives 11,118 9,983 11 %
Life Insurance Policies Issued (1) 84,561 71,324 N/A 83,050 2 %
Life Productivity (1) (2) 0.21 0.18 N/A 0.21 *
Issued term life face amount ($ billions) (3) $ 28.1 $ 24.8 14 %
ISP Product Sales ($ billions) $ 2.3 $ 3.1 (25 )%
Average Client Asset Values ($ billions) $ 86.6 $ 94.2 (8 )%
Senior Health Submitted Policies (4) 19,826 26,231 (24 )%
Senior Health Approved Policies (5) 18,413 23,594 (22 )%
Closed U.S. Mortgage Volume ($ million brokered) $ 55.6 $ 235.9 (76 )%

(1) Previously reported numbers for the three months ended March 31, 2022 have been adjusted as a result of a product change made near the end of 2022, which modified how policies are structured in relation to individual lives. To make year-over year comparisons more consistent, we have provided estimates for the prior year period.

(2) Life productivity equals policies issued divided by the average number of life insurance licensed representatives per month.

(3) Includes face amount on issued term life policies, additional riders added to existing policies, and face increases under increasing benefit riders.

(4) 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.

(5) 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
Q1 2023 Q1 2022 % Change
( in thousands)
Adjusted Operating Revenues:
Term Life Insurance $ 406,983 3 %
Investment and Savings Products 241,039 (13 )%
Senior Health 5,831 221 %
Corporate and Other Distributed Products (1) 38,721 16 %
Total adjusted operating revenues (1) $ 692,574 0 %
Adjusted Operating Income (Loss) before <br>  income taxes:
Term Life Insurance $ 118,576 7 %
Investment and Savings Products 67,039 (16 )%
Senior Health  (1) ) (19,018 ) 80 %
Corporate and Other Distributed Products (1) ) (14,529 ) 24 %
Total adjusted operating income before <br>   income taxes (1) $ 152,068 11 %

All values are in US Dollars.

(1) 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

Recruiting increased 10% compared to the first quarter of 2022 as the Company continued to see a high degree of interest from people who are attracted to the flexibility provided by the Primerica business opportunity. Licensing momentum remained strong with more than 11,000 new life-licensed representatives added during the quarter, an 11% increase compared to the prior year period. As of March 31, 2023, the Company had a total of 136,430 independent life-licensed representatives, representing a 5% increase year-over-year.

Term Life Insurance

Sales remain robust with 84,561 new term life insurance policies issued during the quarter, up 2% compared to the estimated number of policies issued in the first quarter of 2022 as adjusted to reflect a comparable one life per policy basis. Issued term life face amount, which captures the number of policies issued and the face amount of both new policies issued and additions to in force policies, increased 14% to $28.1 billion compared to $24.8 billion in the prior year period. Policy lapses were modestly unfavorable compared to pre-pandemic levels, most likely due to the impact of a higher cost of living pressuring our marketplace.

First quarter revenues of $421.1 million and net premiums of $408.8 million grew 3% and 4%, respectively, year-over-year, while adjusted direct premiums increased 6%. Pre-tax income increased 7% to $126.7 million for the quarter. The benefits and claims ratio of 58.7% and the DAC amortization ratio of 11.8% were consistent with the prior year ratios, as expected under LDTI. The benefits and claims ratio was higher than projected during the fourth quarter earnings call, reflecting our finalization of LDTI processes. We expect the benefit and claims ratio to be in the high 58% range for 2023.

Investment and Savings Products

Total sales during the quarter were $2.3 billion, decreasing 25% compared to the first quarter of 2022 as equity markets continued to experience heightened volatility. Average client asset values for the quarter were $86.6 billion, decreasing 8% year-over-year. Nonetheless, clients remained focused on long-term goals as evidenced by net client inflows of $642 million during the quarter.

Revenues of $210.2 million decreased 13% year-over-year, while operating income of $56.1 million decreased 16%. Sales-based commission revenues and expenses each decreased 30%, largely in line with the change in revenue-generating sales. While average client asset values declined 8%, asset-based revenues benefited from a mix-shift toward products on which the Company earns higher asset-based fees and decreased only 1% compared to the prior year period. The change in asset-based commission expenses was consistent 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

The Company continued to control sales levels in the Senior Health segment through the first quarter’s Open Enrollment Period, with an emphasis on agent and lead efficiency and the quality of business. Leads sourced by Primerica’s senior health certified representatives represented approximately 10% of total submitted volume and continued to exhibit favorable conversion and retention characteristics. The lifetime value of commissions per approved policy (“LTV”) was $856 and contract acquisition costs per approved policy (“CAC”) was $814, for an LTV/CAC ratio of 1.1x for the period.

The Company’s Senior Health business made progress toward achieving profitability with a modest operating loss of $3.8 million recognized in the quarter down from a $19.0 million operating loss in the prior year period. Chargebacks of policies approved during the Annual Election Period and policy renewal rates during the January 1st annual renewal cycle were largely in line with expectations. The Company does not anticipate a need to provide capital to the segment in 2023.

Corporate and Other Distributed Products

During the first quarter of 2023, the segment recorded an operating loss of $11.0 million compared to an operating loss of $14.5 million in the prior year period. The improvement was driven by higher revenues, primarily due to a $10.4 million increase in adjusted net investment income as reinvestment rates have increased significantly since the prior year period. Partially offsetting this increase was a reduction in revenues from mortgage sales, which were adversely impacted by lower loan volumes due to higher mortgage interest rates.

Taxes

The effective tax rate remained relatively unchanged at 23.3% in the first quarter of 2023 compared to 23.0% in the first quarter of 2022.

Capital

During the first quarter, the Company repurchased 530,723 shares of common stock for $85.2 million. The Company expects to repurchase a total of $375 million of common stock during 2023. The Board of Directors has approved a dividend of $0.65 per share, payable on June 12, 2023, to stockholders of record on May 22, 2023.

Primerica has a strong balance sheet, including invested assets and cash at the holding company of $330 million. Primerica Life Insurance Company’s statutory risk-based capital (RBC) ratio was estimated to be approximately 455% as of March 31, 2023.

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) and fair value mark-to-market (“MTM”) investment adjustments, including credit impairments, for all periods presented. We exclude investment gains (losses), including credit impairments, and MTM investment adjustments in measuring these non-GAAP financial measures to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains (losses) and market pricing variations prior to an invested asset’s maturity or sale that are not directly associated with the Company’s insurance operations. Adjusted operating income before taxes, adjusted net operating income, and diluted adjusted operating earnings per share also exclude transaction-related expenses/recoveries associated with the purchase of e-TeleQuote Insurance, Inc. and subsidiaries (collectively, “e-TeleQuote”), adjustments to share-based compensation expense for shares exchanged in the business combination, and non-cash goodwill impairment charges. We exclude e-TeleQuote transaction-related expenses/recoveries and non-cash goodwill impairment charges as these are non-recurring items that will cause incomparability between period-over-period results. We exclude adjustments to share-based compensation expense for shares exchanged in the business combination to eliminate period-over-period fluctuations that may obscure comparisons of operating results primarily due to the volatility of changes in the fair value of shares which were acquired for no additional consideration. Adjusted operating income before income taxes and adjusted net operating income exclude income attributable to the noncontrolling

interest to present only the income that is attributable to stockholders of the Company. 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 investors 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 Tuesday, May 9, 2023, 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; any failure to protect the confidentiality of

client information; differences between our actual experience and our expectations regarding mortality or persistency 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; litigation and regulatory investigations and actions concerning us or sales representatives; 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; economic down cycles 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 information technology systems, breach of our information security, failure of our business continuity plan or the loss of the Internet; 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; any acquisition or investment in businesses that do not perform as we expect or are difficult to integrate; due to our very limited history with e-TeleQuote, we cannot be certain that its business will be successful or that we will successfully address any risks not known to us that may become material; a failure by e-TeleQuote to comply with the requirements of the United States government’s Centers for Medicare and Medicaid Services and those of its carrier partners; legislative or regulatory changes to Medicare Advantage or changes to the implementing guidance by the Centers for Medicare and Medicaid Services; e-TeleQuote’s inability to acquire or generate leads on commercially viable terms, convert leads to sales or if customer policy retention is lower than assumed; e-TeleQuote’s inability to enroll individuals during the Medicare annual election period; the loss of a key carrier, or the modification of commission rates or underwriting practices with a key carrier partner could adversely affect e-TeleQuote’s business; 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; 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 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 over 5.7 million lives and had over 2.8 million client investment accounts on December 31, 2022. Primerica, through its insurance company subsidiaries, was the #3 issuer of Term Life insurance coverage in the United States and Canada in 2022. 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)
March 31, 2023 December 31, 2022
(In thousands)
Assets
Investments:
Fixed-maturity securities available-for-sale, at fair value $ 2,558,626 $ 2,495,456
Fixed-maturity security held-to-maturity, at amortized cost 1,460,000 1,444,920
Short-term investments available-for-sale, at fair value 70,187 69,406
Equity securities, at fair value 33,984 35,404
Trading securities, at fair value 18,497 3,698
Policy loans and other invested assets 50,003 48,713
Total investments 4,191,297 4,097,597
Cash and cash equivalents 515,090 489,240
Accrued investment income 22,153 20,885
Reinsurance recoverables 3,179,074 3,176,397
Deferred policy acquisition costs, net 3,256,845 3,194,029
Renewal commissions receivable 194,409 200,043
Agent balances, due premiums and other receivables 259,759 254,276
Goodwill 127,707 127,707
Intangible assets 182,900 185,525
Income taxes 106,310 97,972
Operating lease right-of-use assets 38,575 40,500
Other assets 391,605 428,259
Separate account assets 2,329,968 2,305,717
Total assets $ 14,795,692 $ 14,618,147
Liabilities and Stockholders' Equity
Liabilities:
Future policy benefits $ 6,561,624 $ 6,297,906
Unearned and advance premiums 16,703 15,422
Policy claims and other benefits payable 498,483 538,250
Other policyholders' funds 481,561 483,769
Notes payable 593,106 592,905
Surplus note 1,459,565 1,444,469
Income taxes 199,394 202,462
Operating lease liabilities 43,955 45,995
Other liabilities 615,780 580,780
Payable under securities lending 74,452 100,938
Separate account liabilities 2,329,968 2,305,717
Total liabilities 12,874,591 12,608,613
Stockholders' equity
Common stock 364 368
Paid-in capital - -
Retained earnings 2,151,771 2,130,935
Effect of change in discount rate assumptions on the liability for future policy benefits, net of income tax (11,679 ) 131,295
Net unrealized gains (losses) and foreign currency translation, net of income tax (219,355 ) (253,064 )
Total stockholders' equity 1,921,101 2,009,534
Total liabilities and stockholders' equity $ 14,795,692 $ 14,618,147
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- ---
Condensed Consolidated Statements of Income
(Unaudited)
Three months ended March 31,
2023 2022
(In thousands, except per-share amounts)
Revenues:
Direct premiums $ 817,872 $ 798,666
Ceded premiums (405,347 ) (399,885 )
Net premiums 412,525 398,781
Commissions and fees 231,547 251,800
Net investment income 31,065 18,905
Investment gains (losses) (4,608 ) 751
Other, net 19,507 20,989
Total revenues 690,036 691,226
Benefits and expenses:
Benefits and claims 168,702 168,288
Future policy benefits remeasurement (gain)/loss (508 ) (1,272 )
Amortization of deferred policy acquisition costs 67,358 63,223
Sales commissions 110,874 133,924
Insurance expenses 61,125 59,509
Insurance commissions 8,138 7,721
Contract acquisition costs 14,984 20,649
Interest expense 6,690 6,853
Other operating expenses 89,536 86,435
Total benefits and expenses 526,899 545,330
Income before income taxes 163,137 145,896
Income taxes 38,031 33,512
Net income 125,106 112,384
Net income attributable to noncontrolling interests - (2,655 )
Net income attributable to Primerica, Inc. $ 125,106 $ 115,039
Earnings per share attributable to common stockholders:
Basic earnings per share $ 3.39 $ 2.92
Diluted earnings per share $ 3.38 $ 2.91
Weighted-average shares used in computing <br>  earnings per share:
Basic 36,710 39,221
Diluted 36,804 39,332
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- --- --- --- ---
Consolidated Adjusted Operating Results Reconciliation
(Unaudited – in thousands, except per share amounts)
Three months ended March 31,
2023 2022 % Change
Total revenues $ 690,036 $ 691,226 0 %
Less: Investment gains (losses) (4,608 ) 751
Less: 10% deposit asset MTM included in NII (327 ) (2,099 )
Adjusted operating revenues $ 694,971 $ 692,574 0 %
Income before income taxes $ 163,137 $ 145,896 12 %
Less: Investment gains (losses) (4,608 ) 751
Less: 10% deposit asset MTM included in NII (327 ) (2,099 )
Less: e-TeleQuote transaction-related expenses - (900 )
Less: Equity comp for awards exchanged during acquisition - (256 )
Less: Noncontrolling interest - (3,668 )
Adjusted operating income before income taxes $ 168,072 $ 152,068 11 %
Net income $ 125,106 $ 112,384 11 %
Less: Investment gains (losses) (4,608 ) 751
Less: 10% deposit asset MTM included in NII (327 ) (2,099 )
Less: e-TeleQuote transaction-related expenses - (900 )
Less: Equity comp for awards exchanged during acquisition - (256 )
Less: Noncontrolling interest - (3,668 )
Less: Tax impact of preceding items 1,151 1,603
Adjusted net operating income $ 128,890 $ 116,953 10 %
Diluted earnings per share (1) $ 3.38 $ 2.91 16 %
Less: Net after-tax impact of operating adjustments (0.11 ) (0.05 )
Diluted adjusted operating earnings per share (1) $ 3.49 $ 2.96 18 %

(1) Percentage change in earnings per share is calculated prior to rounding per share amounts.

TERM LIFE INSURANCE SEGMENT
Adjusted Premiums Reconciliation
(Unaudited – in thousands)
Three months ended March 31,
2023 2022 % Change
Direct premiums $ 812,880 $ 793,254 2 %
Less: Premiums ceded to IPO coinsurers 220,240 234,614
Adjusted direct premiums 592,640 558,640 6 %
Ceded premiums (404,044 ) (398,446 )
Less: Premiums ceded to IPO coinsurers (220,240 ) (234,614 )
Other ceded premiums (183,804 ) (163,832 )
Net premiums $ 408,836 $ 394,808 4 %
SENIOR HEALTH SEGMENT
--- --- --- --- --- --- --- --- --- ---
Adjusted Operating Results Reconciliation
(Unaudited – in thousands)
Three months ended March 31,
2023 2022 % Change
Income/(loss) before income taxes $ (3,762 ) $ (23,085 ) (84 )%
Less: e-TeleQuote transaction-related costs - (399 )
Less: Noncontrolling interest - (3,668 )
Adjusted operating income before taxes $ (3,762 ) $ (19,018 ) (80 )%
CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT
--- --- --- --- --- --- --- --- --- ---
Adjusted Operating Results Reconciliation
(Unaudited – in thousands)
Three months ended March 31,
2023 2022 % Change
Total revenues $ 40,055 $ 37,373 7 %
Less: Investment gains (losses) (4,608 ) 751
Less: 10% deposit asset MTM included in NII (327 ) (2,099 )
Adjusted operating revenues $ 44,990 $ 38,721 16 %
Loss before income taxes $ (15,943 ) $ (16,634 ) (4 )%
Less: Investment gains (losses) (4,608 ) 751
Less: 10% deposit asset MTM included in NII (327 ) (2,099 )
Less: e-TeleQuote transaction-related expenses - (501 )
Less: Equity comp for awards exchanged during acquisition - (256 )
Adjusted operating loss before income taxes $ (11,008 ) $ (14,529 ) (24 )%
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- --- --- --- ---
Adjusted Stockholders' Equity Reconciliation
(Unaudited – in thousands)
March 31, 2023 December 31, 2022 % Change
Stockholders' equity $ 1,921,101 $ 2,009,534 (4 )%
Less: Net unrealized gains (losses) (208,157 ) (240,868 )
Less: Effect of change in discount rate assumptions <br>              on the liability for future policy benefits (11,679 ) 131,295
Adjusted stockholders' equity $ 2,140,937 $ 2,119,107 1 %

EX-99

Exhibit 99.2

img165194719_0.jpg

Supplemental Financial Information

First Quarter 2023

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, key statistics, and financial analysis 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, 2022.

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

First Quarter 2023

This document is a financial supplement to our first quarter 2023 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, mark-to-market (MTM) investment adjustments, transaction-related expenses/recoveries associated with the purchase of e-TeleQuote Insurance, Inc. and subsidiaries (collectively, “e-TeleQuote”), adjustments to share-based compensation expense for shares exchanged in the business combination, and non-cash goodwill impairment charges. 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 the Company's insurance operations. We exclude e-TeleQuote transaction-related expenses/recoveries and non-cash goodwill impairment charges in our non-GAAP financial measures as such expenses are non-recurring items that will cause incomparability between period-over-period results. We exclude adjustments to share-based compensation expense for shares exchanged in the business combination to eliminate period-over-period fluctuations that may obscure comparisons of operating results primarily due to the volatility of changes in the fair value of shares which were acquired for no additional consideration. Adjusted operating income before income taxes and adjusted net operating income exclude income attributable to the noncontrolling interest to present only the income that is attributable to stockholders of the Company.

• 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.

Effective January 1, 2023, we adopted FASB ASU 2018-12 "Targeted Improvements to the Accounting for Long-Duration Contracts" (or "LDTI"). The impact of LDTI on our financial statements is significant, as it requires us to make changes to the way we calculate future policy benefit reserves on our term life insurance product and discontinued product lines issued by our New York subsidiary. LDTI also requires changes to the way we amortize deferred acquisition costs for these products as well as Canadian Segregated funds. We have restated our 12/31/2021 balance sheet and 2022 financial statements in this document as it was necessary to present historical periods on a comparable basis with future period results

Also effective January 1, 2023, we no longer allocate a portion of net investment income to the Term Life Insurance segment, and all net investment income will be recorded in the Corporate & Other Distributed Products segment. As such, we have retrospectively restated for comparison purposes the 2022 income statements in this document for the Term Life Insurance and Corporate and Other Distributed Product Segments.

In this document, we have also included estimated term life issued policy counts by quarter for 2022 adjusting issued policies to a single life per policy basis to facilitate comparisons going forward.

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.

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Condensed Balance Sheets and Reconciliation of Balance Sheet Non-GAAP to GAAP Financial Measures PRIMERICA, INC.<br><br>Financial Supplement
(Dollars in thousands) Dec 31,<br>2021 Mar 31,<br>2022 Jun 30,<br>2022 Sep 30,<br>2022 Dec 31,<br>2022 Mar 31,<br>2023 Jun 30,<br>2023 Sep 30,<br>2023 Dec 31,<br>2023
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Condensed Balance Sheets
Assets:
Investments and cash excluding securities held to maturity $ 3,277,830 $ 3,191,154 $ 3,048,974 $ 2,981,598 $ 3,141,919 $ 3,246,388
Securities held to maturity 1,379,100 1,390,310 1,415,940 1,433,760 1,444,920 1,460,000
Total investments and cash 4,656,930 4,581,464 4,464,914 4,415,358 4,586,839 4,706,388
Due from reinsurers 4,218,704 3,692,660 3,359,054 3,160,111 3,176,397 3,179,074
Deferred policy acquisition costs 2,959,654 3,033,186 3,088,172 3,133,408 3,194,029 3,256,845
Goodwill 179,154 179,154 187,707 127,707 127,707 127,707
Other assets 1,367,435 1,253,840 1,217,898 1,206,368 1,227,459 1,195,710
Separate account assets 2,799,992 2,696,891 2,358,987 2,206,608 2,305,717 2,329,968
Total assets $ 16,181,869 $ 15,437,194 $ 14,676,732 $ 14,249,560 $ 14,618,147 $ 14,795,692
Liabilities:
Future policy benefits $ 8,594,476 $ 7,332,290 $ 6,606,150 $ 6,094,187 $ 6,297,911 $ 6,561,624
Other policy liabilities 1,103,642 1,108,047 999,789 1,005,195 1,037,440 996,747
Income taxes 15,311 95,302 167,560 217,364 202,462 199,394
Other liabilities 669,631 683,865 646,660 659,582 626,773 659,734
Debt obligations 607,102 598,303 592,504 592,705 592,905 593,106
Surplus note 1,378,585 1,389,811 1,415,457 1,433,293 1,444,469 1,459,565
Payable under securities lending 94,529 93,171 96,603 80,754 100,938 74,452
Separate account liabilities 2,799,992 2,696,891 2,358,987 2,206,608 2,305,717 2,329,968
Total liabilities 15,263,269 13,997,680 12,883,710 12,289,687 12,608,615 12,874,590
Redeemable noncontrolling interest $ 7,271 $ 4,616 $ 2,233 $ — $ — $ —
Stockholders’ equity:
Common stock (0.01 par value) (1) 394 388 378 370 368 364
Paid-in capital 5,224 (0 ) (0 ) (0 ) (0 ) —
Retained earnings 2,074,111 2,083,693 2,068,690 2,033,368 2,130,935 2,151,771
Treasury stock — — — — — —
Accumulated other comprehensive income (loss), net:
63,775 (66,439 ) (175,746 ) (252,913 ) (240,869 ) (208,157 )
(1,240,727 ) (594,586 ) (104,894 ) 195,563 131,295 (11,679 )
8,553 11,842 2,362 (16,514 ) (12,196 ) (11,198 )
Total stockholders’ equity (2) 911,330 1,434,897 1,790,789 1,959,874 2,009,532 1,921,102
Total liabilities and stockholders' equity $ 16,181,869 $ 15,437,194 $ 14,676,732 $ 14,249,560 $ 14,618,147 $ 14,795,692
Reconciliation of Total Stockholders' Equity to Adjusted Stockholders' Equity
Total stockholders' equity $ 911,330 $ 1,434,897 $ 1,790,789 $ 1,959,874 $ 2,009,532 $ 1,921,102
Less: Net unrealized gains (losses) 63,775 (66,439 ) (175,746 ) (252,913 ) (240,869 ) (208,157 )
Less: Effect of change in discount rate assumptions on the liability for future policy benefits (1,240,727 ) (594,586 ) (104,894 ) 195,563 131,295 (11,679 )
Adjusted stockholders’ equity $ 2,088,281 $ 2,095,922 $ 2,071,430 $ 2,017,224 $ 2,119,107 $ 2,140,938
Adjusted Stockholders' Equity Rollforward
Balance, beginning of period $ 2,088,281 $ 2,095,922 $ 2,071,430 $ 2,017,224 $ 2,119,107
Net Income attributable to Primerica, Inc. 115,039 125,168 76,777 143,956 125,106
Shareholder dividends (21,645 ) (21,178 ) (20,571 ) (20,389 ) (23,910 )
Retirement of shares and warrants (103,862 ) (127,963 ) (97,515 ) (32,098 ) (96,323 )
Net foreign currency translation adjustment 3,289 (9,480 ) (18,876 ) 4,318 998
Other, net 14,820 8,961 5,979 6,096 15,960
Balance, end of period $ 2,095,922 $ 2,071,430 $ 2,017,224 $ 2,119,107 $ 2,140,938
Deferred Policy Acquisition Costs Rollforward
Balance, beginning of period $ 2,959,654 $ 3,033,186 $ 3,088,172 $ 3,133,408 $ 3,194,029
General expenses deferred 9,519 9,321 9,726 9,283 10,777
Commission costs deferred 123,739 119,794 119,734 113,479 118,386
Amortization of deferred policy acquisition costs (63,223 ) (64,200 ) (65,447 ) (66,236 ) (67,358 )
Foreign currency impact and other, net 3,496 (9,930 ) (18,777 ) 4,095 1,011
Balance, end of period $ 3,033,186 $ 3,088,172 $ 3,133,408 $ 3,194,029 $ 3,256,845

All values are in US Dollars.

(1) Outstanding common shares exclude restricted stock units.

(2) Reflects the company's permanent stockholders' equity and does not include temporary stockholders' equity.

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Financial Results and Other Statistical Data PRIMERICA, INC.<br><br>Financial Supplement
YOY Q1 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except per-share data) Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Change %<br>Change YTD 2022 YTD 2023 Change %<br>Change
Earnings per Share
Basic earnings per share:
Weighted-average common shares and fully vested equity awards 39,221,003 38,385,520 37,438,254 36,973,967 36,709,525 ) -6.4 % 39,221,003 36,709,525 ) -6.4 %
Net income attributable to Primerica, Inc. $ 115,039 $ 125,168 $ 76,777 $ 143,956 $ 125,106 8.8 % $ 115,039 $ 125,106 8.8 %
Less income attributable to unvested participating securities (477 ) (554 ) (362 ) (690 ) (565 ) ) -18.6 % (477 ) (565 ) ) -18.6 %
Net income used in computing basic EPS $ 114,562 $ 124,614 $ 76,415 $ 143,267 $ 124,541 8.7 % $ 114,562 $ 124,541 8.7 %
Basic earnings per share $ 2.92 $ 3.25 $ 2.04 $ 3.87 $ 3.39 16.1 % $ 2.92 $ 3.39 16.1 %
Adjusted net operating income $ 116,954 $ 127,922 $ 138,897 $ 142,040 $ 128,891 10.2 % $ 116,954 $ 128,891 10.2 %
Less operating income attributable to unvested participating securities (484 ) (566 ) (655 ) (681 ) (564 ) ) -16.4 % (484 ) (564 ) ) -16.4 %
Adjusted net operating income used in computing basic operating EPS $ 116,469 $ 127,356 $ 138,243 $ 141,359 $ 128,327 10.2 % $ 116,469 $ 128,327 10.2 %
Basic adjusted operating income per share $ 2.97 $ 3.32 $ 3.69 $ 3.82 $ 3.50 17.7 % $ 2.97 $ 3.50 17.7 %
Diluted earnings per share:
Weighted-average common shares and fully vested equity awards 39,221,003 38,385,520 37,438,254 36,973,967 36,709,525 ) -6.4 % 39,221,003 36,709,525 ) -6.4 %
Dilutive impact of contingently issuable shares 110,941 115,058 102,810 107,245 94,123 ) -15.2 % 110,941 94,123 ) -15.2 %
Shares used to calculate diluted EPS 39,331,944 38,500,578 37,541,064 37,081,212 36,803,648 ) -6.4 % 39,331,944 36,803,648 ) -6.4 %
Net income attributable to Primerica, Inc. $ 115,039 $ 125,168 $ 76,777 $ 143,956 $ 125,106 8.8 % $ 115,039 $ 125,106 8.8 %
Less income attributable to unvested participating securities (475 ) (552 ) (361 ) (688 ) (582 ) ) -22.5 % (475 ) (582 ) ) -22.5 %
Net income used in computing diluted EPS $ 114,564 $ 124,615 $ 76,415 $ 143,268 $ 124,524 8.7 % $ 114,564 $ 124,524 8.7 %
Diluted earnings per share $ 2.91 $ 3.24 $ 2.04 $ 3.86 $ 3.38 16.2 % $ 2.91 $ 3.38 16.2 %
Adjusted net operating income $ 116,954 $ 127,922 $ 138,897 $ 142,040 $ 128,891 10.2 % $ 116,954 $ 128,891 10.2 %
Less operating income attributable to unvested participating securities (483 ) (564 ) (653 ) (679 ) (581 ) ) -20.2 % (483 ) (581 ) ) -20.2 %
Adjusted net operating income used in computing diluted operating EPS $ 116,471 $ 127,357 $ 138,244 $ 141,361 $ 128,310 10.2 % $ 116,471 $ 128,310 10.2 %
Diluted adjusted operating income per share $ 2.96 $ 3.31 $ 3.68 $ 3.81 $ 3.49 17.7 % $ 2.96 $ 3.49 17.7 %
YOY Q1 YOY YTD
Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 Q1<br>2023 Change %<br>Change YTD 2022 YTD 2023 Change %<br>Change
Annualized Return on Equity
Average stockholders' equity (1) $ 1,173,114 $ 1,612,843 $ 1,875,331 $ 1,984,703 $ 1,965,317 67.5 % $ 1,173,114 $ 1,965,317 67.5 %
Average adjusted stockholders' equity (1) $ 2,092,102 $ 2,083,676 $ 2,044,327 $ 2,068,165 $ 2,130,022 1.8 % $ 2,092,102 $ 2,130,022 1.8 %
Net income attributable to Primerica, Inc. return on stockholders' equity 39.2 % 31.0 % 16.4 % 29.0 % 25.5 % % nm 39.2 % 25.5 % % nm
Net income attributable to Primerica, Inc. return on adjusted stockholders' equity 22.0 % 24.0 % 15.0 % 27.8 % 23.5 % % nm 22.0 % 23.5 % % nm
Adjusted net operating income return on adjusted stockholders' equity 22.4 % 24.6 % 27.2 % 27.5 % 24.2 % % nm 22.4 % 24.2 % % nm
Capital Structure
Debt-to-capital (2) 29.4 % 24.9 % 23.2 % 22.8 % 23.6 % % nm 29.4 % 23.6 % % nm
Debt-to-capital, excluding AOCI (2) 22.3 % 22.3 % 22.6 % 21.8 % 21.6 % % nm 22.3 % 21.6 % % nm
Cash and invested assets to stockholders' equity 3.2 x 2.5 x 2.3 x 2.3 x 2.4 x x) nm 3.2 x 2.4 x x) nm
Cash and invested assets to adjusted stockholders' equity 2.2 x 2.2 x 2.2 x 2.2 x 2.2 x x nm 2.2 x 2.2 x x nm
Share count, end of period (3) 38,751,885 37,768,052 37,026,600 36,824,428 36,407,876 ) -6.0 % 38,751,885 36,407,876 ) -6.0 %
Adjusted stockholders' equity per share $ 54.09 $ 54.85 $ 54.48 $ 57.55 $ 58.80 8.7 % $ 54.09 $ 58.80 8.7 %
Financial Strength Ratings - Primerica Life Insurance Co
Moody's A1 A1 A1 A1 A1 nm nm nm nm nm nm
S&P AA- AA- AA- AA- AA- nm nm nm nm nm nm
A.M. Best A+ A+ A+ A+ A+ nm nm nm nm nm nm
Holding Company Senior Debt Ratings
Moody's Baa1 Baa1 Baa1 Baa1 Baa1 nm nm nm nm nm nm
S&P A- A- A- A- A- nm nm nm nm nm nm
A.M. Best a- a- a- a- a- nm nm nm nm nm nm

All values are in US Dollars.

(1) Reflects the company's permanent stockholders' equity and does not include temporary stockholders' equity.

(2) Debt-to-capital is that of the parent company only. Capital in the debt-to-capital ratio includes stockholders' equity and the note payable.

(3) Share count reflects outstanding common shares, but excludes restricted stock units (RSUs).

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Statements of Income PRIMERICA, INC.<br><br>Financial Supplement
YOY Q1 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Change %<br>Change YTD 2022 YTD 2023 Change %<br>Change
Statement of Income
Revenues:
Direct premiums $ 798,666 $ 808,894 $ 810,079 $ 812,481 $ 817,872 2.4 % $ 798,666 $ 817,872 2.4 %
Ceded premiums (399,885 ) (419,048 ) (404,870 ) (406,088 ) (405,347 ) ) -1.4 % (399,885 ) (405,347 ) ) -1.4 %
Net premiums 398,781 389,846 405,209 406,393 412,525 3.4 % 398,781 412,525 3.4 %
Net investment income 18,905 21,284 24,346 28,530 31,065 64.3 % 18,905 31,065 64.3 %
Commissions and fees:
Sales-based (1) 103,242 88,701 67,962 66,473 72,388 ) -29.9 % 103,242 72,388 ) -29.9 %
Asset-based (2) 113,112 108,101 107,483 105,357 111,904 ) -1.1 % 113,112 111,904 ) -1.1 %
Account-based (3) 21,541 22,592 22,910 23,348 22,790 5.8 % 21,541 22,790 5.8 %
Other commissions and fees 13,905 21,294 27,113 31,542 24,464 75.9 % 13,905 24,464 75.9 %
Investment (losses) gains 751 (1,892 ) (2,699 ) 2,846 (4,608 ) ) nm 751 (4,608 ) ) nm
Other, net 20,988 18,755 20,964 22,451 19,508 ) -7.1 % 20,988 19,508 ) -7.1 %
Total revenues 691,225 668,681 673,288 686,940 690,036 ) -0.2 % 691,225 690,036 ) -0.2 %
Benefits and expenses:
Benefits and claims 168,288 153,071 164,092 165,742 168,702 0.2 % 168,288 168,702 0.2 %
Future policy benefits remeasurement (gain)/loss (1,272 ) (627 ) 988 433 (508 ) 60.1 % (1,272 ) (508 ) 60.1 %
Amortization of DAC 63,223 64,200 65,447 66,236 67,358 6.5 % 63,223 67,358 6.5 %
Insurance commissions 7,721 7,594 7,666 7,280 8,138 5.4 % 7,721 8,138 5.4 %
Insurance expenses 59,509 59,461 57,552 58,883 61,125 2.7 % 59,509 61,125 2.7 %
Sales commissions:
Sales-based (1) 74,606 63,403 48,775 47,927 52,452 ) -29.7 % 74,606 52,452 ) -29.7 %
Asset-based (2) 53,366 50,876 51,549 51,047 54,276 1.7 % 53,366 54,276 1.7 %
Other sales commissions 5,952 5,484 5,592 4,187 4,147 ) -30.3 % 5,952 4,147 ) -30.3 %
Interest expense 6,853 6,814 6,802 6,768 6,690 ) -2.4 % 6,853 6,690 ) -2.4 %
Contract acquistion costs (4) 20,649 19,384 13,446 14,952 14,984 ) -27.4 % 20,649 14,984 ) -27.4 %
Other operating expenses 86,434 79,728 73,790 80,443 89,534 3.6 % 86,434 89,534 3.6 %
Goodwill impairment — — 60,000 — — #DIV/0! — — #DIV/0!
Loss on extinguishment of debt — — — — — #DIV/0! — — #DIV/0!
Total benefits and expenses 545,329 509,389 555,697 503,898 526,899 ) -3.4 % 545,329 526,899 ) -3.4 %
Income before income taxes 145,896 159,292 117,591 183,041 163,137 11.8 % 145,896 163,137 11.8 %
Income taxes 33,511 36,509 40,815 39,085 38,031 13.5 % 33,511 38,031 13.5 %
Net income 112,385 122,784 76,777 143,956 125,106 11.3 % 112,385 125,106 11.3 %
Net income attributable to noncontrolling interests (2,654 ) (2,384 ) — — — 100.0 % (2,654 ) — 100.0 %
Net Income attributable to Primerica, Inc. $ 115,039 $ 125,168 $ 76,777 $ 143,956 $ 125,106 8.8 % $ 115,039 $ 125,106 8.8 %
Income Before Income Taxes by Segment
Term Life $ 118,575 $ 125,034 $ 128,168 $ 128,470 $ 126,735 6.9 % $ 118,575 $ 126,735 6.9 %
Investment & Savings Products 67,038 63,017 59,222 56,612 56,107 ) -16.3 % 67,038 56,107 ) -16.3 %
Senior Health (23,085 ) (16,150 ) (63,723 ) 4,285 (3,762 ) 83.7 % (23,085 ) (3,762 ) 83.7 %
Corporate & Other Distributed Products (16,632 ) (12,609 ) (6,075 ) (6,325 ) (15,944 ) 4.1 % (16,632 ) (15,944 ) 4.1 %
Income before income taxes $ 145,896 $ 159,292 $ 117,591 $ 183,041 $ 163,137 11.8 % $ 145,896 $ 163,137 11.8 %

All values are in US Dollars.

(1) Sales-based - revenues or commission expenses relating to the sales of mutual funds and variable annuities.

(2) 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.

(3) Account-based - revenues relating to the fee generating client accounts we administer.

(4) 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 ETQ 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 Q1 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Change %<br>Change YTD 2022 YTD 2023 Change %<br>Change
Reconciliation from Term Life Direct Premiums to Term Life Adjusted Direct Premiums
Term Life direct premiums $ 793,254 $ 803,453 $ 804,586 $ 807,796 $ 812,880 2.5 % $ 793,254 $ 812,880 2.5 %
Less: Premiums ceded to IPO Coinsurers 234,614 231,805 226,869 224,240 220,240 ) -6.1 % 234,614 220,240 ) -6.1 %
Term Life adjusted direct premiums $ 558,640 $ 571,648 $ 577,717 $ 583,556 $ 592,640 6.1 % $ 558,640 $ 592,640 6.1 %
Reconciliation from Term Life Ceded Premiums to Term Life Other Ceded Premiums
Term Life ceded premiums $ (398,446 ) $ (417,406 ) $ (403,416 ) $ (404,174 ) $ (404,044 ) ) -1.4 % $ (398,446 ) $ (404,044 ) ) -1.4 %
Less: Premiums ceded to IPO Coinsurers (234,614 ) (231,805 ) (226,869 ) (224,240 ) (220,240 ) 6.1 % (234,614 ) (220,240 ) 6.1 %
Term Life other ceded premiums $ (163,832 ) $ (185,601 ) $ (176,548 ) $ (179,935 ) $ (183,804 ) ) -12.2 % $ (163,832 ) $ (183,804 ) ) -12.2 %
Reconciliation from Net Investment Income to Adjusted Net Investment Income
Net Investment Income $ 18,905 $ 21,284 $ 24,346 $ 28,530 $ 31,065 64.3 % $ 18,905 $ 31,065 64.3 %
Less: MTM investment adjustments (2,099 ) (1,254 ) (68 ) (409 ) (327 ) nm nm (2,099 ) (327 ) nm nm
Adjusted net investment income $ 21,004 $ 22,538 $ 24,414 $ 28,940 $ 31,392 49.5 % $ 21,004 $ 31,392 49.5 %
Reconciliation from Other Operating Expenses to Adjusted other operating expenses
Other operating expenses $ 86,434 $ 79,728 $ 73,790 $ 80,443 $ 89,534 3.6 % $ 86,434 $ 89,534 3.6 %
Less: eTeleQuote transaction-related costs 900 (2,892 ) — — — nm nm 900 — nm nm
Less: Equity comp for awards exchanged during acquisition 256 3,328 — — — nm nm 256 — nm nm
Adjusted other operating expenses $ 85,278 $ 79,292 $ 73,790 $ 80,443 $ 89,534 5.0 % $ 85,278 $ 89,534 5.0 %
Reconciliation from Total Revenues to Adjusted Operating Revenues
Total revenues $ 691,225 $ 668,681 $ 673,288 $ 686,940 $ 690,036 ) -0.2 % $ 691,225 $ 690,036 ) -0.2 %
Less: Investment gains/(losses) 751 (1,892 ) (2,699 ) 2,846 (4,608 ) nm nm 751 (4,608 ) nm nm
Less: MTM investment adjustments (2,099 ) (1,254 ) (68 ) (409 ) (327 ) nm nm (2,099 ) (327 ) nm nm
Adjusted operating revenues $ 692,573 $ 671,827 $ 676,056 $ 684,503 $ 694,972 0.3 % $ 692,573 $ 694,972 0.3 %
Reconciliation from Income Before Income Taxes to Adjusted Operating Income Before Income Taxes
Income before income taxes $ 145,896 $ 159,292 $ 117,591 $ 183,041 $ 163,137 11.8 % $ 145,896 $ 163,137 11.8 %
Less: Investment gains/(losses) 751 (1,892 ) (2,699 ) 2,846 (4,608 ) nm nm 751 (4,608 ) nm nm
Less: MTM investment adjustments (2,099 ) (1,254 ) (68 ) (409 ) (327 ) nm nm (2,099 ) (327 ) nm nm
Less: eTeleQuote transaction-related costs (900 ) 2,892 — — — nm nm (900 ) — nm nm
Less: Equity comp for awards exchanged during acquisition (256 ) (3,328 ) — — — nm nm (256 ) — nm nm
Less: Noncontrolling interest before income taxes (3,668 ) (3,129 ) — — — nm nm (3,668 ) — nm nm
Less: Goodwill impairment — — (60,000 ) — — nm nm — — nm nm
Adjusted operating income before income taxes $ 152,068 $ 166,003 $ 180,359 $ 180,605 $ 168,073 10.5 % $ 152,068 $ 168,073 10.5 %
Reconciliation from Net Income to Adjusted Net Operating Income
Net income $ 112,385 $ 122,784 $ 76,777 $ 143,956 $ 125,106 11.3 % $ 112,385 $ 125,106 11.3 %
Less: Investment gains/(losses) 751 (1,892 ) (2,699 ) 2,846 (4,608 ) nm nm 751 (4,608 ) nm nm
Less: MTM investment adjustments (2,099 ) (1,254 ) (68 ) (409 ) (327 ) nm nm (2,099 ) (327 ) nm nm
Less: e-TeleQuote transaction-related costs (900 ) 2,892 — — — nm nm (900 ) — nm nm
Less: Equity comp for awards exchanged during acquisition (256 ) (3,328 ) — — — nm nm (256 ) — nm nm
Less: Noncontrolling interest before income taxes (3,668 ) (3,129 ) — — — nm nm (3,668 ) — nm nm
Less: Goodwill impairment — — (60,000 ) — — nm nm — — nm nm
Less: Tax impact of reconciling items 1,603 1,573 647 (520 ) 1,151 nm nm 1,603 1,151 nm nm
Adjusted net operating income $ 116,954 $ 127,922 $ 138,897 $ 142,040 $ 128,891 10.2 % $ 116,954 $ 128,891 10.2 %

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 Q1 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Change %<br>Change YTD 2022 YTD 2023 Change %<br>Change
Reconciliation from Senior Health Income Before Income Taxes to Senior Health Adjusted Operating Income Before Income Taxes
Income before income taxes $ (23,085 ) $ (16,150 ) $ (63,723 ) $ 4,285 $ (3,762 ) 83.7 % $ (23,085 ) $ (3,762 ) 83.7 %
Less: e-TeleQuote transaction-related costs (399 ) (66 ) — — — nm nm nm nm nm nm
Less: Noncontrolling interest (3,668 ) (3,129 ) — — — nm nm nm nm nm nm
Less: Goodwill impairment — — (60,000 ) — — nm nm nm nm nm nm
Adjusted operating income before income taxes $ (19,018 ) $ (12,955 ) $ (3,723 ) $ 4,285 $ (3,762 ) 80.2 % $ (19,018 ) $ (3,762 ) 80.2 %
Reconciliation from C&O Income Before Income Taxes to C&O Adjusted Operating Income Before Income Taxes
Income before income taxes $ (16,632 ) $ (12,609 ) $ (6,075 ) $ (6,325 ) $ (15,944 ) 4.1 % $ (16,632 ) $ (15,944 ) 4.1 %
Less: Investment gains/(losses) 751 (1,892 ) (2,699 ) 2,846 (4,608 ) nm nm nm nm nm nm
Less: MTM investment adjustments (2,099 ) (1,254 ) (68 ) (409 ) (327 ) nm nm nm nm nm nm
Less: e-TeleQuote transaction-related costs (501 ) 2,958 — — — nm nm nm nm nm nm
Less: Equity comp for awards exchanged during acquistion (256 ) (3,328 ) — — — nm nm nm nm nm nm
Less: Loss on extinguishment of debt — — — — — nm nm nm nm nm nm
Adjusted operating income before income taxes $ (14,527 ) $ (9,094 ) $ (3,307 ) $ (8,762 ) $ (11,008 ) 24.2 % $ (14,527 ) $ (11,008 ) 24.2 %

All values are in US Dollars.

8 of 18

Term Life Insurance - Financial Results and Analysis PRIMERICA, INC.<br><br>Financial Supplement
YOY Q1 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Change %<br>Change YTD 2022 YTD 2023 Change %<br>Change
Term Life Insurance Income Before Income Taxes
Revenues:
Direct Premiums $ 793,254 $ 803,453 $ 804,586 $ 807,796 $ 812,880 2.5 % $ 793,254 $ 812,880 2.5 %
Premiums ceded to IPO coinsurers (1) (234,614 ) (231,805 ) (226,869 ) (224,240 ) (220,240 ) 6.1 % (234,614 ) (220,240 ) 6.1 %
Adjusted direct premiums (2) 558,640 571,648 577,717 583,556 592,640 6.1 % 558,640 592,640 6.1 %
Other ceded premiums (3) (163,832 ) (185,601 ) (176,548 ) (179,935 ) (183,804 ) ) -12.2 % (163,832 ) (183,804 ) ) -12.2 %
Net premiums 394,808 386,047 401,169 403,621 408,836 3.6 % 394,808 408,836 3.6 %
Other, net 12,175 12,374 13,419 12,352 12,233 0.5 % 12,175 12,233 0.5 %
Revenues 406,983 398,421 414,588 415,974 421,069 3.5 % 406,983 421,069 3.5 %
Benefits and expenses:
Benefits and claims 166,407 149,328 161,283 161,769 164,375 ) -1.2 % 166,407 164,375 ) -1.2 %
Future policy benefits remeasurement (gain)/loss (1,434 ) (663 ) 1,072 (526 ) (31 ) 97.9 % (1,434 ) (31 ) 97.9 %
Amortization of DAC 61,369 62,538 63,631 64,813 65,503 6.7 % 61,369 65,503 6.7 %
Insurance commissions 3,793 3,854 3,964 3,724 4,590 21.0 % 3,793 4,590 21.0 %
Insurance expenses 58,272 58,329 56,471 57,723 59,896 2.8 % 58,272 59,896 2.8 %
Benefits and expenses 288,408 273,387 286,421 287,504 294,334 2.1 % 288,408 294,334 2.1 %
Income before income taxes $ 118,575 $ 125,034 $ 128,168 $ 128,470 $ 126,735 6.9 % $ 118,575 $ 126,735 6.9 %
Total Term Life Insurance - Financial Analysis
Post-IPO direct premiums (4) $ 448,657 $ 460,061 $ 465,354 $ 469,565 $ 477,227 6.4 % $ 448,657 $ 477,227 6.4 %
Pre-IPO direct premiums (5) 344,597 343,392 339,232 338,230 335,652 ) -2.6 % 344,597 335,652 ) -2.6 %
Total direct premiums $ 793,254 $ 803,453 $ 804,586 $ 807,796 $ 812,880 2.5 % $ 793,254 $ 812,880 2.5 %
Premiums ceded to IPO coinsurers $ 234,614 $ 231,805 $ 226,869 $ 224,240 $ 220,240 ) -6.1 % $ 234,614 $ 220,240 ) -6.1 %
% of Pre-IPO direct premiums 68.1 % 67.5 % 66.9 % 66.3 % 65.6 % nm nm 68.1 % 65.6 % nm nm
Benefits and claims, net (6) $ 328,805 $ 334,266 $ 338,903 $ 341,178 $ 348,148 5.9 % $ 328,805 $ 348,148 5.9 %
% of adjusted direct premiums 58.9 % 58.5 % 58.7 % 58.5 % 58.7 % nm nm 58.9 % 58.7 % nm nm
DAC amortization & insurance commissions $ 65,163 $ 66,393 $ 67,595 $ 68,537 $ 70,093 7.6 % $ 65,163 $ 70,093 7.6 %
% of adjusted direct premiums 11.7 % 11.6 % 11.7 % 11.7 % 11.8 % nm nm 11.7 % 11.8 % nm nm
Insurance expenses, net (7) $ 46,097 $ 45,955 $ 43,052 $ 45,371 $ 47,663 3.4 % $ 46,097 $ 47,663 3.4 %
% of adjusted direct premiums 8.3 % 8.0 % 7.5 % 7.8 % 8.0 % nm nm 8.3 % 8.0 % nm nm
Total Term Life income before income taxes $ 118,575 $ 125,034 $ 128,168 $ 128,470 $ 126,735 6.9 % $ 118,575 $ 126,735 6.9 %
Term Life operating margin (8) 21.2 % 21.9 % 22.2 % 22.0 % 21.4 % nm nm 21.2 % 21.4 % nm nm

All values are in US Dollars.

(1) 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.

(2) Adjusted direct premiums - direct premiums net of premiums ceded to IPO coinsurers.

(3) Other ceded premiums - premiums ceded to non-IPO coinsurers net of any applicable reimbursements from the IPO coinsurers.

(4) Post-IPO direct premiums - direct premiums not subject to the 2010 IPO coinsurance transactions.

(5) Pre-IPO direct premiums - direct premiums subject to the 2010 IPO coinsurance transactions.

(6) Benefits and claims, net - benefits & claims and remeasurement (gain)/loss net of other ceded premiums which are largely YRT.

(7) Insurance expenses, net - insurance expenses net of other, net revenues.

(8) Term Life 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 Q1 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Change %<br>Change YTD 2022 YTD 2023 Change %<br>Change
Key Statistics
Life-insurance licensed sales force, beginning of period 129,515 130,206 132,149 134,313 135,208 4.4 % 129,515 135,208 4.4 %
9,983 11,529 12,518 11,117 11,118 11.4 % 9,983 11,118 11.4 %
(9,292 ) (9,586 ) (10,354 ) (10,222 ) (9,896 ) ) -6.5 % (9,292 ) (9,896 ) ) -6.5 %
Life-insurance licensed sales force, end of period 130,206 132,149 134,313 135,208 136,430 4.8 % 130,206 136,430 4.8 %
Estimated annualized issued term life premium (mills) (1):
$ 65.5 $ 72.3 $ 68.0 $ 66.0 $ 70.7 8.0 % $ 65.5 $ 70.7 8.0 %
18.4 20.6 19.5 18.2 18.2 ) -0.9 % 18.4 18.2 ) -0.9 %
Total estimated annualized issued term life premium $ 83.8 $ 92.9 $ 87.5 $ 84.2 $ 88.9 6.1 % $ 83.8 $ 88.9 6.1 %
Issued term life policies 71,324 76,946 71,104 72,544 84,561 18.6 % 71,324 84,561 18.6 %
Estimated average annualized issued term life premium per policy (1)(2) $ 918 $ 940 $ 957 $ 910 $ 836 ) -8.9 % $ 918 $ 836 ) -8.9 %
Adjusted issued term life policies (3) $ 83,050 $ 89,316 $ 81,372 $ 79,282 $ 84,561 1.8 % $ 83,050 $ 84,561 1.8 %
Adjusted estimated average annualized issued term life premium per policy (1)(2) $ 788 $ 810 $ 836 $ 833 $ 836 6.1 % $ 788 $ 836 6.1 %
Term life face amount in-force, beginning of period (mills) $ 903,404 $ 909,632 $ 914,438 $ 912,785 $ 916,808 1.5 % $ 903,404 $ 916,808 1.5 %
24,773 27,651 26,049 25,349 28,124 13.5 % 24,773 28,124 13.5 %
(19,787 ) (19,298 ) (21,033 ) (22,776 ) (22,210 ) ) -12.2 % (19,787 ) (22,210 ) ) -12.2 %
1,242 (3,547 ) (6,669 ) 1,450 124 ) -90.1 % 1,242 124 ) -90.1 %
Term life face amount in-force, end of period $ 909,632 $ 914,438 $ 912,785 $ 916,808 $ 922,845 1.5 % $ 909,632 $ 922,845 1.5 %

All values are in US Dollars.

(1) 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.

(2) In whole dollars.

(3) Provided for comparability of year-over-year results of term life issued policies and reflects the estimated number of policies issued after adjusting for a consistent basis of insured lives per policy following the Q4 2022 new product launch

(4) 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 Q1 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Change %<br>Change YTD 2022 YTD 2023 Change %<br>Change
Investment & Savings Products Income Before Income Taxes
Revenues:
Commissions and fees:
Sales-based $ 103,242 $ 88,701 $ 67,962 $ 66,473 $ 72,388 ) -29.9 % $ 103,242 $ 72,388 ) -29.9 %
Asset-based 113,112 108,101 107,483 105,357 111,904 ) -1.1 % 113,112 111,904 ) -1.1 %
Account-based 21,541 22,592 22,910 23,348 22,790 5.8 % 21,541 22,790 5.8 %
Other, net 3,144 3,022 3,342 3,102 3,120 ) -0.8 % 3,144 3,120 ) -0.8 %
Revenues 241,039 222,416 201,697 198,280 210,202 ) -12.8 % 241,039 210,202 ) -12.8 %
Benefits and expenses:
Amortization of DAC 1,446 1,421 1,378 1,336 1,493 3.2 % 1,446 1,493 3.2 %
Insurance commissions 3,646 3,450 3,419 3,320 3,308 ) -9.3 % 3,646 3,308 ) -9.3 %
Sales commissions:
Sales-based 74,606 63,403 48,775 47,927 52,452 ) -29.7 % 74,606 52,452 ) -29.7 %
Asset-based 53,366 50,876 51,549 51,047 54,276 1.7 % 53,366 54,276 1.7 %
Other operating expenses 40,936 40,249 37,355 38,038 42,567 4.0 % 40,936 42,567 4.0 %
Benefits and expenses 174,001 159,398 142,476 141,669 154,095 ) -11.4 % 174,001 154,095 ) -11.4 %
Income before income taxes $ 67,038 $ 63,017 $ 59,222 $ 56,612 $ 56,107 ) -16.3 % $ 67,038 $ 56,107 ) -16.3 %
Financial Analysis
Fees paid based on client asset values (1) $ 8,037 $ 7,917 $ 7,980 $ 8,004 $ 8,034 ) nm $ 8,037 $ 8,034 ) nm
Fees paid based on fee-generating positions (2) 10,948 9,974 9,486 9,665 11,528 5.3 % 10,948 11,528 5.3 %
Other operating expenses 21,951 22,358 19,889 20,369 23,005 4.8 % 21,951 23,005 4.8 %
Total other operating expenses $ 40,936 $ 40,249 $ 37,355 $ 38,038 $ 42,567 4.0 % $ 40,936 $ 42,567 4.0 %
Sales-based net revenue as % of revenue-generating sales (3)
U.S. 1.20 % 1.27 % 1.23 % 1.21 % 1.21 % nm nm 1.20 % 1.21 % nm nm
Canada 1.00 % 0.78 % 0.32 % 0.31 % 0.33 % nm nm 1.00 % 0.33 % nm nm
Total 1.16 % 1.21 % 1.17 % 1.15 % 1.13 % nm nm 1.16 % 1.13 % nm nm
Asset-based net revenue as % of average asset values (4)
U.S. 0.039 % 0.040 % 0.042 % 0.040 % 0.042 % nm nm 0.039 % 0.042 % nm nm
Canada 0.108 % 0.106 % 0.105 % 0.103 % 0.102 % nm nm 0.108 % 0.102 % nm nm
Total 0.049 % 0.051 % 0.052 % 0.050 % 0.052 % nm nm 0.049 % 0.052 % nm nm
Account-based net revenue per average fee generating position (5)(6) $ 3.48 $ 4.08 $ 4.31 $ 4.37 $ 3.58 nm nm $ 3.48 $ 3.58 nm nm

All values are in US Dollars.

(1) 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.

(2) Fees paid based on fee-generating positions - recordkeeping fees that vary with the number of fee-generating positions.

(3) Sales-based net revenue - commission and fee revenue less commissions paid to the sales force based on product sales activity.

(4) Asset-based net revenue - 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.

(5) Account-based net revenue - fee revenue less recordkeeping fees paid to third-party providers based on fee-generating positions and certain direct general expenses.

(6) In whole dollars.

11 of 18

Investment and Savings Products - Key Statistics PRIMERICA, INC.<br><br>Financial Supplement
YOY Q1 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Change %<br>Change YTD 2022 YTD 2023 Change %<br>Change
Key Statistics
Product sales (mills)
$ 1,298.6 $ 1,151.4 $ 931.8 $ 883.8 $ 971.7 ) -25.2 % $ 1,298.6 $ 971.7 ) -25.2 %
437.6 250.6 112.2 112.0 149.8 ) -65.8 % 437.6 149.8 ) -65.8 %
57.5 70.2 55.8 69.2 80.7 40.4 % 57.5 80.7 40.4 %
668.4 617.3 542.5 548.0 556.4 ) -16.8 % 668.4 556.4 ) -16.8 %
Total sales-based revenue generating product sales 2,462.1 2,089.5 1,642.3 1,612.9 1,758.6 ) -28.6 % 2,462.1 1,758.6 ) -28.6 %
453.7 451.3 319.6 288.1 306.1 ) -32.5 % 453.7 306.1 ) -32.5 %
82.2 97.5 157.9 156.6 183.4 123.0 % 82.2 183.4 123.0 %
67.3 51.3 41.6 35.0 51.9 ) -22.9 % 67.3 51.9 ) -22.9 %
Total product sales $ 3,065.4 $ 2,689.6 $ 2,161.5 $ 2,092.5 $ 2,300.0 ) -25.0 % $ 3,065.4 $ 2,300.0 ) -25.0 %
$ 519.9 $ 348.1 $ 270.2 $ 268.6 $ 333.2 ) -35.9 % $ 519.9 $ 333.2 ) -35.9 %
67.3 51.3 41.6 35.0 51.9 ) -22.9 % 67.3 51.9 ) -22.9 %
Total Canada product sales 587.1 399.4 311.8 303.5 385.0 ) -34.4 % 587.1 385.0 ) -34.4 %
Total U.S. product sales 2,478.2 2,290.1 1,849.7 1,789.0 1,914.9 ) -22.7 % 2,478.2 1,914.9 ) -22.7 %
Total product sales $ 3,065.4 $ 2,689.6 $ 2,161.5 $ 2,092.5 $ 2,300.0 ) -25.0 % $ 3,065.4 $ 2,300.0 ) -25.0 %
Client asset values, beginning of period (mills) $ 97,312 $ 93,708 $ 82,291 $ 78,737 $ 83,949 ) -13.7 % $ 97,312 $ 83,949 ) -13.7 %
3,065 2,690 2,161 2,093 2,300 ) -25.0 % 3,065 2,300 ) -25.0 %
(1,900 ) (1,797 ) (1,447 ) (1,444 ) (1,658 ) 12.7 % (1,900 ) (1,658 ) 12.7 %
Net flows 1,166 893 714 649 642 ) -44.9 % 1,166 642 ) -44.9 %
171 (474 ) (802 ) 174 16 ) -90.9 % 171 16 ) -90.9 %
(4,941 ) (11,836 ) (3,466 ) 4,388 3,014 nm (4,941 ) 3,014 nm
Client asset values, end of period $ 93,708 $ 82,291 $ 78,737 $ 83,949 $ 87,621 ) -6.5 % $ 93,708 $ 87,621 ) -6.5 %
4.8 % 3.8 % 3.5 % 3.3 % 3.1 % % nm 4.8 % 3.1 % % nm
Average client asset values (mills)
$ 46,429 $ 42,870 $ 40,331 $ 40,402 $ 42,096 ) -9.3 % $ 46,429 $ 42,096 ) -9.3 %
12,119 11,539 10,840 10,759 11,345 ) -6.4 % 12,119 11,345 ) -6.4 %
7,077 6,960 6,817 6,949 7,338 3.7 % 7,077 7,338 3.7 %
2,650 2,677 2,696 2,710 2,729 3.0 % 2,650 2,729 3.0 %
23,218 21,431 20,269 20,137 20,744 ) -10.7 % 23,218 20,744 ) -10.7 %
2,710 2,517 2,368 2,299 2,329 ) -14.1 % 2,710 2,329 ) -14.1 %
Total $ 94,203 $ 87,994 $ 83,320 $ 83,256 $ 86,581 ) -8.1 % $ 94,203 $ 86,581 ) -8.1 %
$ 12,119 $ 11,539 $ 10,840 $ 10,759 $ 11,345 ) -6.4 % $ 12,119 $ 11,345 ) -6.4 %
2,710 2,517 2,368 2,299 2,329 ) -14.1 % 2,710 2,329 ) -14.1 %
Total Canada average client assets 14,829 14,056 13,208 13,058 13,674 ) -7.8 % 14,829 13,674 ) -7.8 %
Total U.S. average client assets 79,374 73,938 70,112 70,198 72,907 ) -8.1 % 79,374 72,907 ) -8.1 %
Total average client assets $ 94,203 $ 87,994 $ 83,320 $ 83,256 $ 86,581 ) -8.1 % $ 94,203 $ 86,581 ) -8.1 %
Average number of fee-generating positions (thous) (3)
2,243 2,277 2,295 2,309 2,316 3.2 % 2,243 2,316 3.2 %
797 812 820 825 829 4.1 % 797 829 4.1 %
Total 3,040 3,089 3,115 3,134 3,145 3.5 % 3,040 3,145 3.5 %

All values are in US Dollars.

(1) 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.

(2) Change in market value, net - market value fluctuations net of fees and expenses.

(3) 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 Q1 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Change %<br>Change YTD 2022 YTD 2023 Change %<br>Change
Senior Health Income Before Income Taxes
Revenues:
Commissions and fees (1) $ 1,278 $ 9,343 $ 14,601 $ 22,198 $ 15,755 nm $ 1,278 $ 15,755 nm
Other, net (2) 4,553 2,471 2,583 5,655 2,955 ) -35.1 % 4,553 2,955 ) -35.1 %
Revenues 5,831 11,814 17,183 27,853 18,710 nm 5,831 18,710 nm
Benefits and expenses:
Contract acquisition costs (3) 20,649 19,384 13,446 14,952 14,984 ) -27.4 % 20,649 14,984 ) -27.4 %
Adjusted other operating expenses 7,868 8,514 7,461 8,617 7,488 ) -4.8 % 7,868 7,488 ) -4.8 %
Adjusted operating benefits and expenses 28,517 27,898 20,907 23,568 22,471 ) -21.2 % 28,517 22,471 ) -21.2 %
Adjusted operating income before income taxes including NCI $ (22,686 ) $ (16,084 ) $ (3,723 ) $ 4,285 $ (3,762 ) 83.4 % $ (22,686 ) $ (3,762 ) 83.4 %
Non-controlling interest before income taxes (3,668 ) (3,129 ) — — — 100.0 % (3,668 ) — 100.0 %
Adjusted operating income before income taxes attributable to Primerica, Inc. $ (19,018 ) $ (12,955 ) $ (3,723 ) $ 4,285 $ (3,762 ) 80.2 % $ (19,018 ) $ (3,762 ) 80.2 %
Senior Health EBITDA
Adjusted operating income before income taxes including NCI $ (22,686 ) $ (16,084 ) $ (3,723 ) $ 4,285 $ (3,762 ) 83.4 % $ (22,686 ) $ (3,762 ) 83.4 %
Less: Amortization of intangibles (2,600 ) (2,800 ) (2,800 ) (2,800 ) (2,800 ) ) -7.7 % (2,600 ) (2,800 ) ) -7.7 %
Less: Depreciation (245 ) (226 ) (221 ) (211 ) (200 ) 18.3 % (245 ) (200 ) 18.3 %
Adjusted EBITDA (Including non-controlling interest) (4) $ (19,841 ) $ (13,058 ) $ (703 ) $ 7,297 $ (762 ) 96.2 % $ (19,841 ) $ (762 ) 96.2 %
Financial Analysis and Key Statistics
Senior Health submitted policies (5) 26,231 19,652 16,095 23,060 19,826 ) -24.4 % 26,231 19,826 ) -24.4 %
Senior Health approved policies (6) 23,594 17,925 14,862 20,705 18,413 ) -22.0 % 23,594 18,413 ) -22.0 %
Primerica representatives Senior Health certified 42,147 60,412 83,280 93,348 94,623 124.5 % 42,147 94,623 124.5 %
Senior Health submitted policies sourced by Primerica representatives 988 831 1,016 5,666 2,073 109.8 % 988 2,073 109.8 %
LTV per approved policy (7) $ 862 $ 820 $ 868 $ 888 $ 856 ) -0.7 % $ 862 $ 856 ) -0.7 %
CAC per approved policy (7) $ 875 $ 1,081 $ 905 $ 722 $ 814 ) -7.0 % $ 875 $ 814 ) -7.0 %
LTV / CAC multiple 1.0 x 0.8 x 1.0 x 1.2 x 1.1 x x nm 1.0 x 1.1 x x nm

All values are in US Dollars.

(1) 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.

(2) Primarily reflects marketing development revenues, which are non-commission revenues received from carriers to support marketing efforts and lead acquisition.

(3) 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.

(4) Adjusted EBITDA - Earnings before interest, taxes, depreciation, amortization and certain adjustments for non-cash or non-recurring expenses including purchase accounting adjustments.

(5) 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.

(6) 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.

(7) In whole dollars.

13 of 18

Corporate Other Distributed Products - Financial Results PRIMERICA, INC.<br><br>Financial Supplement
YOY Q1 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Change %<br>Change YTD 2022 YTD 2023 Change %<br>Change
Corporate & Other Distributed Products Income Before Income Taxes
Revenues:
Direct premiums $ 5,412 $ 5,441 $ 5,494 $ 4,685 $ 4,993 ) -7.8 % $ 5,412 $ 4,993 ) -7.8 %
Ceded premiums (1,439 ) (1,642 ) (1,454 ) (1,914 ) (1,304 ) 9.4 % (1,439 ) (1,304 ) 9.4 %
Net premiums 3,973 3,799 4,040 2,772 3,689 ) -7.1 % 3,973 3,689 ) -7.1 %
Adjusted net investment income 21,004 22,538 24,414 28,940 31,392 49.5 % 21,004 31,392 49.5 %
Commissions and fees:
Prepaid Legal Services 4,287 4,664 5,672 3,821 3,991 ) -6.9 % 4,287 3,991 ) -6.9 %
Auto and Homeowners Insurance 1,591 2,056 2,647 1,994 1,831 15.1 % 1,591 1,831 15.1 %
Mortgage loans 4,818 3,128 2,103 1,656 1,211 ) -74.9 % 4,818 1,211 ) -74.9 %
Other sales commissions 1,932 2,103 2,090 1,872 1,676 ) -13.2 % 1,932 1,676 ) -13.2 %
Other, net 1,117 889 1,621 1,341 1,200 7.4 % 1,117 1,200 7.4 %
Adjusted operating revenues 38,721 39,176 42,587 42,396 44,990 16.2 % 38,721 44,990 16.2 %
Benefits and expenses:
Benefits and claims 1,881 3,743 2,809 3,972 4,327 130.0 % 1,881 4,327 130.0 %
Future policy benefits remeasurement (gain)/loss 162 36 (84 ) 958 (477 ) ) nm 162 (477 ) ) nm
Amortization of DAC 407 240 438 87 362 ) -11.0 % 407 362 ) -11.0 %
Insurance commissions 282 290 283 237 241 ) -14.6 % 282 241 ) -14.6 %
Insurance expenses 1,237 1,132 1,081 1,160 1,229 ) -0.6 % 1,237 1,229 ) -0.6 %
Sales commissions 5,952 5,484 5,592 4,187 4,147 ) -30.3 % 5,952 4,147 ) -30.3 %
Interest expense 6,853 6,814 6,802 6,768 6,690 ) -2.4 % 6,853 6,690 ) -2.4 %
Adjusted other operating expenses 36,475 30,530 28,974 33,788 39,480 8.2 % 36,475 39,480 8.2 %
Adjusted benefits and expenses 53,248 48,270 45,894 51,158 55,999 5.2 % 53,248 55,999 5.2 %
Adjusted operating income before income taxes $ (14,527 ) $ (9,094 ) $ (3,307 ) $ (8,762 ) $ (11,008 ) 24.2 % $ (14,527 ) $ (11,008 ) 24.2 %

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 March 31, 2023
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
% 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 $ 585,277 $ 585,277 $ - 18.3 % 16.9 %
Fixed Income:
Treasury 20,868 21,401 (533 ) 0.7 % 0.6 % 2.17 % AAA
Government 227,578 247,938 (20,360 ) 7.1 % 7.2 % 2.99 % AA-
Tax-Exempt Municipal 33,865 36,896 (3,031 ) 1.1 % 1.1 % 2.69 % AA
Corporate 1,281,891 1,401,455 (119,564 ) 40.1 % 40.5 % 3.64 % BBB+
Mortgage Backed 420,787 488,770 (67,984 ) 13.2 % 14.1 % 2.97 % AAA
Asset Backed 171,255 185,201 (13,946 ) 5.4 % 5.4 % 3.91 % AA
CMBS 127,718 142,789 (15,071 ) 4.0 % 4.1 % 3.47 % AA-
Private 289,201 312,794 (23,594 ) 9.0 % 9.0 % 4.70 % BBB
Redeemable Preferred 3,960 4,248 (288 ) 0.1 % 0.1 % 5.27 % BBB-
Total Fixed Income 2,577,123 2,841,493 (264,370 ) 80.6 % 82.1 % 3.57 % A
Equities and Other:
Perpetual Preferred 8,642 8,642 - 0.3 % 0.2 %
Common Stock 19,345 19,345 0 0.6 % 0.6 %
Mutual Fund 5,989 5,989 - 0.2 % 0.2 %
Total Equities 33,975 33,975 0 1.1 % 1.0 %
Total Invested Assets $ 3,196,376 $ 3,460,746 $ (264,370 ) 100.0 % 100.0 %
Public Corporate Portfolio by Sector
Insurance $ 158,538 $ 176,162 $ (17,624 ) 12.4 % 12.6 %
Energy 138,485 149,076 (10,591 ) 10.8 % 10.6 %
Consumer Non Cyclical 131,381 145,198 (13,817 ) 10.2 % 10.4 %
Reits 116,872 134,882 (18,011 ) 9.1 % 9.6 %
Banking 113,869 117,834 (3,965 ) 8.9 % 8.4 %
Consumer Cyclical 104,832 114,279 (9,447 ) 8.2 % 8.2 %
Technology 102,709 108,906 (6,197 ) 8.0 % 7.8 %
Capital Goods 68,155 72,794 (4,639 ) 5.3 % 5.2 %
Basic Industry 66,499 73,085 (6,586 ) 5.2 % 5.2 %
Finance Companies 54,767 61,692 (6,925 ) 4.3 % 4.4 %
Electric 53,423 58,570 (5,147 ) 4.2 % 4.2 %
Transportation 52,770 57,282 (4,512 ) 4.1 % 4.1 %
Communications 46,970 50,312 (3,342 ) 3.7 % 3.6 %
Brokerage 44,092 49,428 (5,336 ) 3.4 % 3.5 %
Financial Other 8,582 9,586 (1,004 ) 0.7 % 0.7 %
Natural Gas 7,315 7,737 (422 ) 0.6 % 0.6 %
Industrial Other 6,071 6,917 (846 ) 0.5 % 0.5 %
Utility Other 4,687 5,388 (701 ) 0.4 % 0.4 %
Owned No Guarantee 1,875 2,325 (450 ) 0.1 % 0.2 %
Total Corporate portfolio $ 1,281,891 $ 1,401,455 $ (119,564 ) 100.0 % 100.0 %
Fixed-Maturity Securities - Effective Maturity
Effective maturity
< 1 Yr. $ 193,907 $ 196,168 $ (2,261 ) 7.5 % 6.9 % 3.64 %
1-2 Yrs. 254,773 262,286 (7,513 ) 9.9 % 9.2 % 3.64 %
2-5 Yrs. 788,683 843,745 (55,062 ) 30.6 % 29.7 % 3.75 %
5-10 Yrs. 1,065,998 1,219,338 (153,340 ) 41.4 % 42.9 % 3.37 %
> 10 Yrs. 273,762 319,956 (46,194 ) 10.6 % 11.3 % 3.78 %
Total Fixed Income $ 2,577,123 $ 2,841,493 $ (264,370 ) 100.0 % 100.0 % 3.57 %
Duration
Fixed Income portfolio duration 4.8 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 March 31, 2023 PRIMERICA, INC.<br><br>Financial Supplement
(Dollars in thousands)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Investment Portfolio Quality Ratings (1)
Amortized Cost % of Total
Total Fixed Income portfolio:
Rating
AAA $ 591,882 20.8 %
AA 319,979 11.3 %
A 709,522 25.0 %
BBB 1,151,885 40.5 %
Below Investment Grade 63,351 2.2 %
NA 4,874 0.2 %
Total Fixed Income $ 2,841,493 100.0 %
Amortized Cost % of Total Amortized Cost % of Total
Public Corporate asset class: Private Placement asset class:
Rating Rating
AAA $ 11,844 0.8 % AAA $ - —
AA 67,753 4.8 % AA 9,232 3.0 %
A 362,431 25.9 % A 71,784 22.9 %
BBB 896,836 64.0 % BBB 229,996 73.5 %
Below Investment Grade 58,717 4.2 % Below Investment Grade 1,783 0.6 %
NA 3,874 0.3 % NA - —
Total Corporate $ 1,401,455 100.0 % Total Private $ 312,794 100.0 %
CMBS asset class: Mortgage-Backed asset class:
Rating Rating
AAA $ 63,976 44.8 % AAA $ 438,933 89.8 %
AA 8,912 6.2 % AA 49,615 10.2 %
A 69,901 49.0 % A 129 0.0 %
BBB - — BBB - —
Below Investment Grade - — Below Investment Grade 72 0.0 %
NA - — NA 22 0.0 %
Total CMBS $ 142,789 100.0 % Total Mortgage-Backed $ 488,770 100.0 %
Asset-Backed asset class: Treasury & Government asset classes:
Rating Rating
AAA $ 34,555 18.7 % AAA $ 41,883 15.6 %
AA 11,445 6.2 % AA 144,876 53.8 %
A 127,917 69.1 % A 70,355 26.1 %
BBB 7,797 4.2 % BBB 11,084 4.1 %
Below Investment Grade 1,639 0.9 % Below Investment Grade 1,141 0.4 %
NA 1,849 1.0 % NA - —
Total Asset-Backed $ 185,201 100.0 % Total Treasury & Government $ 269,339 100.0 %
NAIC Designations
1 $ 1,376,420 55.0 %
2 1,052,469 42.0 %
3 64,324 2.6 %
4 7,794 0.3 %
5 691 0.0 %
6 2,904 0.1 %
U.S. Insurer Fixed Income (2) 2,504,602 100.0 %
Other (3) 370,875
Cash and cash equivalents 585,277
Total Invested Assets $ 3,460,754

(1) Ratings method for split ratings: If by 2 NRSROs, use lower of the two; if by 3 or more NRSROs, use second lowest.

(2) NAIC ratings for our U.S. insurance companies' fixed income portfolios.

(3) 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 Q1
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 Change %<br>Change
Net Investment Income by Source
Fixed-maturity securities (available-for-sale) $ 20,889 $ 22,414 $ 23,067 $ 24,605 $ 25,806 23.5%
Fixed-maturity securities (held-to-maturity) 15,515 15,815 16,283 16,309 16,435 5.9%
Equity Securities 387 371 373 377 380 ) -1.8%
Deposit asset underlying 10% reinsurance treaty 589 485 557 2,134 2,377 nm
Deposit asset - Mark to Market (2,099 ) (1,254 ) (68 ) (409 ) (327 ) 84.4%
Policy loans and other invested assets 102 58 436 450 (72 ) ) nm
Cash & cash equivalents 125 498 1,714 3,605 5,128 nm
Total investment income 35,508 38,387 42,362 47,072 49,727 40.0%
Investment expenses 1,088 1,288 1,733 2,233 2,227 104.7%
Interest Expense on Surplus Note 15,515 15,815 16,283 16,309 16,435 5.9%
Net investment income $ 18,905 $ 21,284 $ 24,346 $ 28,530 $ 31,065 64.3%
Fixed income book yield, end of period 3.18 % 3.25 % 3.34 % 3.44 % 3.57 %
New money yield 3.37 % 4.21 % 3.93 % 5.41 % 5.57 %
YOY Q1
Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023 % PtChange
Fixed Income Portfolio Quality Ratings
Rating
AAA 21.0 % 22.0 % 21.5 % 21.6 % 20.8 % %
AA 11.2 % 11.2 % 11.1 % 11.5 % 11.3 % %
A 23.7 % 23.0 % 23.0 % 24.6 % 25.0 % %
BBB 39.8 % 39.6 % 40.1 % 39.9 % 40.5 % %
Below Investment Grade 3.1 % 2.8 % 2.7 % 2.4 % 2.2 % %
NA 1.2 % 1.3 % 1.5 % 0.0 % 0.2 % %
Total Fixed Income 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Average rating by amortized cost A A A A A

All values are in US Dollars.

As of March 31, 2023 As of March 31, 2023 As of March 31, 2023
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 Canada $ 20,934 $ 22,148 AAA Canada $ 85,124 $ 93,652 AAA $ 2,021 $ 2,118
2 Province of Ontario Canada 15,066 15,343 A+ United Kingdom 25,078 25,291 AA — —
3 Province of Quebec Canada 14,644 14,922 AA- Australia 19,327 20,499 A 7,815 9,473
4 Bank of America Corp 12,985 13,177 A- Mexico 6,586 7,692 BBB 9,603 10,634
5 Ontario Teachers' Pension Plan 12,832 14,333 AA+ France 6,160 6,392 Below Investment Grade 631 1,141
6 Province of Alberta Canada 12,068 12,831 A+ Bermuda 6,039 6,236 NA — —
7 Morgan Stanley 11,485 11,807 BBB+ Netherlands 5,475 5,470 Total $ 20,071 $ 23,366
8 Wells Fargo & Co 11,043 11,291 BBB+ Ireland 5,467 5,457
9 Manulife Financial Corp 10,775 11,600 A Japan 5,294 5,450
10 TC Energy Corp 10,342 11,644 BBB+ Malta 4,660 4,775 Non-Government Investments (1)
11 ConocoPhillips 9,514 10,700 A Luxembourg 4,634 4,700
12 Province of Saskatchewan Canada 9,509 9,654 AA Cayman Islands 3,579 3,620 AAA $ 2,930 $ 2,999
13 Goldman Sachs Group Inc. 9,452 9,743 BBB+ Israel 3,510 3,558 AA 2,310 2,393
14 Enbridge Inc 9,100 9,879 BBB+ Brazil 2,455 2,681 A 40,187 42,474
15 Kemper Corp 8,370 9,094 BBB Supranational 2,021 2,118 BBB 140,993 149,762
16 Fairfax Financial Holdings Ltd 8,363 9,802 BBB Emerging Markets (2) 10,378 12,074 Below Investment Grade 4,034 4,181
17 Brookfield Corp 8,223 8,499 A- All Other 20,098 21,149 NA 5,360 5,637
18 Intact Financial Corp 8,087 7,876 A+ Total $ 215,885 $ 230,812 Total $ 195,815 $ 207,447
19 Province of British Columbia Canada 8,029 8,331 AA
20 Western & Southern Mutual Holdings 8,014 9,457 AA
21 City of Toronto Canada 7,986 8,153 AA
22 Enterprise Products Partners 7,898 7,561 A-
23 Province of New Brunswick Canada 7,871 8,138 A+
24 Boeing Co 7,682 7,802 BBB-
25 Province of Newfoundland and Labrador 7,543 8,223 A
Total $ 257,816 $ 272,005
% of total fixed income portfolio 8.1 % 7.9 %

(1) US$ denominated investments in issuers outside of the United States based on country of risk.

(2) 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) 2018 2019 2020 2021 2022 Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 Q1<br>2023 Q2<br>2023 Q3<br>2023 Q4<br>2023
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Recruits 290,886 282,207 400,345 349,374 359,735 84,707 70,215 127,788 77,025 93,540
Life-insurance licensed sales force, beginning of period 126,121 130,736 130,522 134,907 129,515 129,515 130,206 132,149 134,313 135,208
New life-licensed representatives 48,041 44,739 48,106 39,622 45,147 9,983 11,529 12,518 11,117 11,118
Non-renewal and terminated representatives (43,426 ) (44,953 ) (43,721 ) (45,014 ) (39,454 ) (9,292 ) (9,586 ) (10,354 ) (10,222 ) (9,896 )
Life-insurance licensed sales force, end of period 130,736 130,522 134,907 129,515 135,208 130,206 132,149 134,313 135,208 136,430
Issued term life policies 301,589 287,809 352,868 323,855 291,918 71,324 76,946 71,104 72,544 84,561
Issued term life face amount $ 95,209 $ 93,994 $ 109,436 $ 108,521 $ 103,822 $ 24,773 $ 27,651 $ 26,049 $ 25,349 $ 28,124
Term life face amount in force, beginning of period $ 763,831 $ 781,041 $ 808,262 $ 858,818 $ 903,404 $ 903,404 $ 909,632 $ 914,438 $ 912,785 $ 916,808
Issued term life face amount 95,209 93,994 109,436 108,521 103,822 24,773 27,651 26,049 25,349 28,124
Terminated term life face amount (70,291 ) (71,519 ) (60,848 ) (64,798 ) (82,894 ) (19,787 ) (19,298 ) (21,033 ) (22,776 ) (22,210 )
Foreign currency impact, net (7,708 ) 4,746 1,968 862 (7,524 ) 1,242 (3,547 ) (6,669 ) 1,450 124
Term life face amount in force, end of period $ 781,041 $ 808,262 $ 858,818 $ 903,404 $ 916,808 $ 909,632 $ 914,438 $ 912,785 $ 916,808 $ 922,845
Estimated annualized issued term life premium
Premium from new policies $ 250.8 $ 244.8 $ 303.6 $ 297.2 $ 271.9 $ 65.5 $ 72.3 $ 68.0 $ 66.0 $ 70.7
Additions and increases in premium 55.2 60.2 68.9 77.0 76.7 18.4 20.6 19.5 18.2 18.2
Total estimated annualized issued term life premium $ 306.0 $ 305.0 $ 372.5 $ 374.2 $ 348.5 $ 83.8 $ 92.9 $ 87.5 $ 84.2 $ 88.9
Investment & Savings product sales $ 7,040.1 $ 7,533.2 $ 7,842.5 $ 11,703.2 $ 10,009.0 $ 3,065.4 $ 2,689.6 $ 2,161.5 $ 2,092.5 $ 2,300.0
Investment & Savings average client asset values $ 61,842 $ 65,029 $ 69,709 $ 89,993 $ 87,193 $ 94,203 $ 87,994 $ 83,320 $ 83,256 $ 86,581
Closed U.S. Mortgage Volume (brokered) $ — $ 31.1 $ 442.5 $ 1,229.2 $ 567.2 $ 235.9 $ 152.7 $ 99.8 $ 78.9 $ 55.6

18 of 18

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