Equibles

8-K

Primerica, Inc. (PRI)

8-K 2022-08-08 For: 2022-08-08
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):      August 8, 2022

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><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 2.02Results of Operations and Financial Condition.

On August 8, 2022, Primerica, Inc. (the “Company”) announced its results of operations for the quarter ended June 30, 2022. 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 80% of e-TeleQuote Insurance, Inc. and subsidiaries (collectively, “e-TeleQuote”) and adjustments to share-based compensation expense for shares exchanged in the business combination.  We exclude e-TeleQuote transaction-related expenses/recoveries 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 prior to the dates that can ultimately be redeemed. 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.

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 our 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 7.01Regulation FD Disclosure.

On August 8, 2022, the Company posted to the “Investor Relations” section of its website certain supplemental financial information relating to the quarter ended June 30, 2022.  A copy of the supplemental financial information is attached hereto as Exhibit 99.2.

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

Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1 Press Release dated August 8, 2022 – Primerica Reports Second Quarter 2022 Results
99.2 Primerica, Inc. Supplemental Financial Information – Second Quarter 2022
104 Cover Page from this Current Report on Form 8-K, formatted in Inline XBRL

SIGNATURES

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

Date:  August 8, 2022 PRIMERICA, INC.
/s/ Alison S. Rand
Alison S. Rand
Executive Vice President and Chief Financial Officer

3

pri-ex991_7.htm

Exhibit 99.1

PRIMERICA REPORTS SECOND QUARTER 2022 RESULTS

New life licenses increased 14%, driving sales force to 132,149 representatives

Term Life net premiums increased 7%; adjusted direct premiums increased 8%

Excess COVID-related death claims largely normalized, $2 million incurred during the quarter

Investment and Savings Products sales of $2.7 billion, net client inflows of $0.9 billion

Net earnings per diluted share (EPS) of $2.79 declined 13%; return on stockholders’ equity (ROE) of 23.3%

Diluted adjusted operating EPS of $2.86 declined 12%; adjusted net operating income return on adjusted stockholders’ equity (ROAE) of 22.5%

Declared dividend of $0.55 per share, payable on September 14, 2022, and repurchased $128 million of common stock during the quarter

Duluth, GA, Aug. 8, 2022 – Primerica, Inc. (NYSE: PRI) today announced financial results for the quarter ended June 30, 2022.  Total revenues of $668.7 million increased 2% compared to the second quarter of 2021.  Net income attributable to Primerica of $107.9 million decreased 16%, while net earnings per diluted share of $2.79 decreased 13% compared to the same period in the prior year.  ROE was 23.3% for the quarter.

Adjusted operating revenues were $671.8 million, a 3% increase compared to the second quarter of 2021. Adjusted net operating income of $110.7 million decreased 14%, while adjusted operating net earnings per diluted share of $2.86 decreased 12% compared to the same period in the prior year.  ROAE was 22.5% for the quarter.

Second quarter results highlight the value of our business model with operating segments that have complementary earnings drivers.  As fears that drove sales and persistency during the pandemic subside and excess mortality normalizes, the key drivers of value in the Term Life segment continued to stabilize, resulting in a strong margin of 21% in the segment for the quarter.  The Company’s extensive use of reinsurance to control volatility and the substantial size of this business result in predictable earnings and support the Company’s capital deployment strategy.

Earnings in the Investment and Savings segment were adversely impacted by the second quarter’s market correction with both sales and client asset values declining as volatility heightened investors’ apprehension.  The acceleration of Canadian segregated fund DAC amortization caused by market performance in Canada added additional pressure to segment earnings, lowering pre-tax income by $3.7 million, year-over-year.  Nonetheless, we have not seen a rise in redemption rates as clients stay invested despite market volatility.  The Company’s commitment to helping middle-income families prepare for a more financially secure future remains strong and the benefit of this long-term approach is evident with approximately 70% of Primerica’s assets invested in retirement accounts.

The Senior Health segment, which has seasonally low sales levels in the second quarter, continued to face headwinds as the industry adjusts to higher churn rates and the need to lower contract acquisition costs.  On a consolidated basis, margins were temporarily pressured by the Company’s biennial convention, which added an additional leadership event to 2022.  Segment results will be discussed in greater detail below.

“We are encouraged by the momentum in our sales force.  We are starting to see real benefits of improvements in our licensing process and expect that the excitement generated during the convention will continue to fuel momentum,” said Glenn Williams, Chief Executive Officer. “I believe we are well positioned for the second half of the year.”

Second Quarter Distribution & Segment Results

Distribution Results
Q2 2022 Q2 2021 % Change
Life-Licensed Sales Force ^(1)^ 132,149 132,041 *
Recruits 70,215 89,285 (21 )%
New Life-Licensed Representatives 11,529 10,112 14 %
Life Insurance Policies Issued 76,946 90,071 (15 )%
Life Productivity^(2)^ 0.20 0.23 *
ISP Product Sales ($ billions) $ 2.69 $ 3.04 (12 )%
Average Client Asset Values ($ billions) $ 87.99 $ 89.38 (2 )%
Senior Health Submitted Policies ^(3)^ 19,652 - *
Senior Health Approved Policies ^(4)^ 17,925 - *
Closed U.S. Mortgage Volume ($ million brokered) $ 152.7 $ 298.6 (49 )%
^(1)^ End of period.  The 2021 period includes an estimated 2,400 individuals who we expected would not pursue the steps necessary to convert a COVID-related temporary license to a permanent license or renew a license with a COVID-related extended renewal date.
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^(2)^ Life productivity equals policies issued divided by the average number of life insurance licensed representatives per month.
--- ---
^(3)^ 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.
--- ---
^(4)^ Represents an estimate of submitted policies approved by health insurance carriers during the indicated period. Not all approved policies will go in force.
--- ---

* Not calculated

Segment Results
Q2 2022 Q2 2021 % Change
( in thousands)
Adjusted Operating Revenues:
Term Life Insurance $ 383,536 7 %
Investment and Savings Products 238,012 (7 )%
Senior Health^(1)^ - *
Corporate and Other Distributed Products ^(1)^ 32,607 (18 )%
Total adjusted operating revenues ^(1)^ $ 654,155 3 %
Adjusted Operating Income (Loss) before<br><br><br>income taxes:
Term Life Insurance $ 116,778 3 %
Investment and Savings Products 71,154 (17 )%
Senior Health ^(1)^ ) - *
Corporate and Other Distributed Products ^(1)^ ) (16,888 ) 30 %
Total adjusted operating income before<br><br><br>income taxes ^(1)^ $ 171,044 (16 )%

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.

* Not calculated

Life Insurance Licensed Sales Force

Recruiting and licensing numbers in the prior year period were distorted by temporary measures put in place during the height of the COVID pandemic, which make year-over-year comparisons difficult.  Now that the operating environment has normalized, we can see solid momentum.  Improvements in the licensing process have also helped the Company regain its licensing momentum.   A total of 11,529 individuals obtained a new life license during the second quarter.  The Company also continued to experience a high degree of interest from people exploring Primerica’s business opportunity as it recruited over 70,000 individuals during the second quarter.

On June 30, 2022, the Company had a total of 132,149 independent life-licensed representatives as the size of the sales force grew for the third consecutive quarter.

Term Life Insurance

As anticipated, the number of term life issued policies declined year-over-year as pandemic fears continued to fade and sales volume normalized.  During the second quarter of 2022, the Company issued nearly 77,000 new term life insurance policies, which compares favorably to pre-pandemic levels.  Productivity at 0.20 policies per life-licensed representative per month is in line with the Company’s historical range.  The Company anticipates continued growth in the future from successful recruiting and licensing.

Second quarter revenues of $410.7 million increased 7% year-over-year, driven by 8% growth in adjusted direct premiums.  The benefits and claims ratio was 58.5%, reflecting a large reduction in claims activity in the period.  COVID claims continued to decline and were $2 million net of reinsurance for the quarter.  Additionally, non-COVID death

claims were about $5 million favorable versus historical trends.  This is largely considered regular claims volatility and is unlikely to continue at this level.  The DAC amortization ratio was 14.6% for the quarter.  In comparison to pre-pandemic second quarter levels, higher lapse rates and amortization on policies issued during the pandemic were offset by lower lapse rates and amortization on the remainder of the in-force block.

As anticipated, insurance expenses increased $11.1 million, or 23% year-over-year, with more than half of the increase due to adding the previously postponed biennial convention to our normal cycle of sales force leadership events.  Excluding this, the growth in segment operating expenses was generally in line with revenue growth.

Investment and Savings Products

Total product sales during the quarter were $2.7 billion, or 12% lower compared to the second quarter of 2021 as a significant equity market correction was experienced and inflation concerns eroded consumer confidence.  Nonetheless, net client inflows remained strong at $0.9 billion, reflecting clients’ long-term approach to investing for retirement.  Client asset values on June 30, 2022 were $82.3 billion, down 10% year-over-year.

Revenues of $222.4 million during the quarter declined 7%, while pre-tax income of $59.0 million decreased 17% compared to the prior year period.  Sales-based revenues and sales-based commission expense declined 15% and 14%, respectively year-over-year, largely in line with the change in revenue-generating sales.  Asset-based revenues were flat year-over-year while average client asset values declined 2%.  Asset-based net revenues declined 10% due to a $3.7 million year-over-year increase in Canadian segregated fund DAC amortization reflecting the volatility in market performance.

Operating expenses increased $3.0 million, or 8% year-over-year, a third of which was driven by higher costs associated with sales force leadership events and the biennial convention.

Senior Health

Second quarter results reflected the seasonally less productive quarter when fewer enrollees are eligible to obtain Medicare coverage and our continued efforts to control sales levels while headwinds to key business drivers are addressed.  Approximately 18,000 policies were approved during quarter.  The lifetime value of commissions (“LTV”) per approved policy were $820, which reflects the most recent lapse activity during the 2022 renewal period.  Contract acquisition costs (“CAC”) per approved policy were $1,081, reflecting seasonally low sales volume and resulting in a 0.8x LTV/CAC ratio.

The pre-tax operating loss of $13.0 million during the quarter includes a $5.4 million negative tail adjustment that reflects the Company’s current LTV estimates applied to

policies sold during the most recent Annual Enrollment period and Open Enrollment period.  e-TeleQuote generated sufficient cash to fund its operations during the second quarter and therefore required no funding from the Company.

Effective July 1, 2022, the Company executed its call option to acquire the remaining 20% of Primerica Health, which owns e-TeleQuote.  The contractually defined formulaic price calculation resulted in a purchase price of zero.  As such, no further consideration was required to obtain the outstanding 20% stake in Primerica Health.

Corporate and Other Distributed Products

During the second quarter, the segment recorded an adjusted operating loss before taxes of $21.9 million, increasing $5.0 million year-over-year.  The increase was due in part to a $2.0 million lower contribution from third-party products sales, including mortgages which slowed due to rising interest rates, $2.9 million higher insurance and other operating expenses and $1.7 million lower net investment income due to a higher allocation to the Term Life segment to support the growing block of business.  Note that on a consolidated basis, net investment income was up modestly year-over-year.

Taxes

The effective tax rate was 23.1% in the second quarter of 2022 compared to 24.4% in the second quarter of 2021. The lower rate was primarily driven by the state income tax benefit generated by e-TeleQuote, which was not part of our second quarter results in 2021.

Capital

During the second quarter, the Company repurchased $128 million of common stock, for a total of $227 million year-to-date.  The Company expects to complete its announced repurchases of $306 million for 2022 in the third quarter.  The Board of Directors has approved a dividend of $0.55 per share, payable on September 14, 2022, to stockholders of record on August 22, 2022.

Primerica has a strong balance sheet, including invested assets and cash at the holding company of $232 million at quarter-end.  Primerica Life Insurance Company’s statutory risk-based capital (RBC) ratio was estimated to be about 460% as of June 30, 2022.

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 80% of e-TeleQuote Insurance, Inc. and subsidiaries (collectively, “e-TeleQuote”) and adjustments to share-based compensation expense for shares exchanged in the business combination.  We exclude e-TeleQuote transaction-related expenses/recoveries 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 prior to the dates that can ultimately be redeemed. 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.

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, August 9, 2022, at 9:00 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 2.7 million client investment accounts on December 31, 2021.  Primerica, through its insurance company subsidiaries, was the #2 issuer of Term Life insurance coverage in the United States and Canada in 2021. Primerica stock is included in the S&P MidCap 400 and the Russell 1000 stock indices and is traded on The New York Stock Exchange under the symbol “PRI”.

Investor Contact:

Nicole Russell

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

Media Contact:

Susan Chana

404-229-8302

Email: Susan.Chana@Primerica.com

PRIMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
June 30, 2022 December 31, 2021
(In thousands)
Assets
Investments:
Fixed-maturity securities available-for-sale, at fair value $ 2,554,465 $ 2,702,567
Fixed-maturity security held-to-maturity, at amortized cost 1,415,940 1,379,100
Short-term investments available-for-sale, at fair value 3,311 85,243
Equity securities, at fair value 35,877 42,551
Trading securities, at fair value 8,976 24,355
Policy loans and other invested assets 46,226 30,612
Total investments 4,064,795 4,264,428
Cash and cash equivalents 400,119 392,501
Accrued investment income 19,326 18,702
Reinsurance recoverables 4,069,039 4,268,419
Deferred policy acquisition costs, net 3,028,511 2,943,782
Renewal commissions receivable 193,661 231,751
Agent balances, due premiums and other receivables 250,940 257,675
Goodwill 187,707 179,154
Intangible assets 190,775 195,825
Income taxes 92,352 81,799
Operating lease right-of-use assets 44,438 47,942
Other assets 428,355 441,253
Separate account assets 2,358,987 2,799,992
Total assets $ 15,329,005 $ 16,123,223
Liabilities and Stockholders' Equity
Liabilities:
Future policy benefits $ 7,276,278 $ 7,138,649
Unearned and advance premiums 16,932 16,437
Policy claims and other benefits payable 481,229 585,382
Other policyholders' funds 501,628 501,823
Notes payable - short term - 15,000
Notes payable - long term 592,504 592,102
Surplus note 1,415,457 1,378,585
Income taxes 164,972 241,311
Operating lease liabilities 50,249 53,920
Other liabilities 596,409 615,710
Payable under securities lending 96,603 94,529
Separate account liabilities 2,358,987 2,799,992
Total liabilities 13,551,248 14,033,440
Temporary Stockholders' Equity
Redeemable noncontrolling interests in consolidated entities 2,233 7,271
Permanent Stockholders' equity
Equity attributable to Primerica, Inc.:
Common stock 378 394
Paid-in capital - 5,224
Retained earnings 1,948,244 2,004,506
Accumulated other comprehensive income (loss), net of income tax (173,098 ) 72,388
Total permanent stockholders' equity 1,775,524 2,082,512
Total liabilities and temporary and permanent stockholders' equity $ 15,329,005 $ 16,123,223
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- ---
Condensed Consolidated Statements of Income
(Unaudited)
Three months ended June 30,
2022 2021
(In thousands, except per-share amounts)
Revenues:
Direct premiums $ 808,894 $ 780,299
Ceded premiums (419,048 ) (413,850 )
Net premiums 389,846 366,449
Commissions and fees 240,688 250,688
Net investment income 21,284 20,535
Investment gains (losses) (1,892 ) 701
Other, net 18,756 16,313
Total revenues 668,682 654,686
Benefits and expenses:
Benefits and claims 153,257 168,347
Amortization of deferred policy acquisition costs 85,379 54,286
Sales commissions 119,763 131,303
Insurance expenses 59,461 48,579
Insurance commissions 7,594 8,838
Contract acquisition costs 19,384 -
Interest expense 6,814 7,141
Other operating expenses 79,730 66,726
Total benefits and expenses 531,382 485,220
Income before income taxes 137,300 169,466
Income taxes 31,737 41,304
Net income $ 105,563 $ 128,162
Net income attributable to noncontrolling interests (2,384 ) -
Net income attributable to Primerica, Inc. $ 107,947 $ 128,162
Earnings per share attributable to common stockholders:
Basic earnings per share $ 2.80 $ 3.23
Diluted earnings per share $ 2.79 $ 3.22
Weighted-average shares used in computing<br><br><br>earnings per share:
Basic 38,386 39,531
Diluted 38,501 39,653
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- --- --- --- ---
Consolidated Adjusted Operating Results Reconciliation
(Unaudited – in thousands, except per share amounts)
Three months ended June 30,
2022 2021 % Change
Total revenues $ 668,682 $ 654,686 2 %
Less: Investment gains (losses) (1,892 ) 701
Less: 10% deposit asset MTM included in NII (1,254 ) (170 )
Adjusted operating revenues $ 671,828 $ 654,155 3 %
Income before income taxes $ 137,300 $ 169,466 (19 )%
Less: Investment gains (losses) (1,892 ) 701
Less: 10% deposit asset MTM included in NII (1,254 ) (170 )
Less: e-TeleQuote transaction-related expenses 2,892 (2,109 )
Less: Equity comp for awards exchanged during acquisition (3,328 ) -
Less: Noncontrolling interest (3,129 ) -
Adjusted operating income before income taxes $ 144,011 $ 171,044 (16 )%
Net income $ 105,563 $ 128,162 (18 )%
Less: Investment gains (losses) (1,892 ) 701
Less: 10% deposit asset MTM included in NII (1,254 ) (170 )
Less: e-TeleQuote transaction-related expenses 2,892 (2,109 )
Less: Equity comp for awards exchanged during acquisition (3,328 ) -
Less: Noncontrolling interest (3,129 ) -
Less: Tax impact of preceding items 1,573 385
Adjusted net operating income $ 110,701 $ 129,355 (14 )%
Diluted earnings per share ^(1)^ $ 2.79 $ 3.22 (13 )%
Less: Net after-tax impact of operating adjustments (0.07 ) (0.03 )
Diluted adjusted operating earnings per share ^(1)^ $ 2.86 $ 3.25 (12 )%
(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 June 30,
2022 2021 % Change
Direct premiums $ 803,453 $ 774,500 4 %
Less: Premiums ceded to IPO coinsurers 231,805 246,874
Adjusted direct premiums 571,648 527,626 8 %
Ceded premiums (417,406 ) (412,028 )
Less: Premiums ceded to IPO coinsurers (231,805 ) (246,874 )
Other ceded premiums (185,601 ) (165,154 )
Net premiums $ 386,047 $ 362,472 7 %
SENIOR HEALTH SEGMENT
--- --- --- --- --- --- ---
Adjusted Operating Results Reconciliation
(Unaudited – in thousands)
Three months ended June 30,
2022 2021 % Change
Loss before income taxes $ (16,150 ) $ -
Less: e-TeleQuote transaction-related costs (66 ) -
Less: Noncontrolling interest (3,129 ) -
Adjusted operating loss before taxes $ (12,955 ) $ -
CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT
--- --- --- --- --- --- --- --- --- ---
Adjusted Operating Results Reconciliation
(Unaudited – in thousands)
Three months ended June 30,
2022 2021 % Change
Total revenues $ 23,745 $ 33,138 (28 )%
Less: Investment gains (losses) (1,892 ) 701
Less: 10% deposit asset MTM included in NII (1,254 ) (170 )
Adjusted operating revenues $ 26,891 $ 32,607 (18 )%
Loss before income taxes $ (25,404 ) $ (18,466 ) 38 %
Less: Investment gains (losses) (1,892 ) 701
Less: 10% deposit asset MTM included in NII (1,254 ) (170 )
Less: e-TeleQuote transaction-related expenses 2,958 (2,109 )
Less: Equity comp for awards exchanged during acquisition (3,328 ) -
Adjusted operating loss before income taxes $ (21,888 ) $ (16,888 ) 30 %
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- --- --- ---
Adjusted Stockholders' Equity Reconciliation
(Unaudited – in thousands)
June 30, 2022 December 31, 2021 % Change
Stockholders' equity ^(1)^ $ 1,775,524 $ 2,082,512 (15 )%
Less: Unrealized net investment gains (losses) recorded<br><br><br>in stockholders' equity, net of income tax (175,746 ) 63,777
Adjusted stockholders' equity ^(1)^ $ 1,951,270 $ 2,018,735 (3 )%
(1) Reflects the Company’s permanent stockholders’ equity and does not include temporary stockholders’ equity.
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12

pri-ex992_6.htm

Exhibit 99.2

Supplemental Financial Information

Second Quarter 2022

Table of Contents PRIMERICA, INC.<br><br><br>Financial Supplement
Page
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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, 2021.

2 of 18

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

Second Quarter 2022

This document is a financial supplement to our second quarter 2022 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, loss on the extinguishment of debt, transaction-related expenses/recoveries associated with the purchase of 80% 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 the loss on the extinguishment of debt, 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 prior to the dates they can ultimately be redeemed. 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.
--- ---
• IPO coinsurance transactions adjustments relate to transactions in the first quarter of 2010, where we coinsured between 80% and 90% of our business that was in-force at year-end 2009 to entities then affiliated with Citigroup Inc. that were executed concurrent with our initial public offering (IPO).  We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate within this block of business.
--- ---

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

Certain items throughout this supplement may not add due to rounding and as such, may not agree to other public reporting of the respective item.  Certain items throughout this supplement are noted as ‘na’ to indicate not applicable.  Certain variances are noted as ‘nm’ to indicate not meaningful.  Certain reclassifications have been made to prior-period amounts to conform to current-period reporting classifications. These reclassifications had no impact on net income or total stockholders’ equity.

3 of 18

Condensed Balance Sheets and Reconciliation of Balance Sheet Non-GAAP to GAAP Financial Measures PRIMERICA, INC.<br><br><br>Financial Supplement
(Dollars in thousands) Dec 31,<br><br><br>2020 Mar 31,<br><br><br>2021 Jun 30,<br><br><br>2021 Sep 30,<br><br><br>2021 Dec 31,<br><br><br>2021 Mar 31,<br><br><br>2022 Jun 30,<br><br><br>2022
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Condensed Balance Sheets
Assets:
Investments and cash excluding securities held to maturity $ 3,096,703 $ 3,133,860 $ 3,431,825 $ 3,056,395 $ 3,277,830 $ 3,191,154 $ 3,048,974
Securities held to maturity 1,346,350 1,362,210 1,368,740 1,376,090 1,379,100 1,390,310 1,415,940
Total investments and cash 4,443,053 4,496,070 4,800,565 4,432,485 4,656,930 4,581,464 4,464,914
Due from reinsurers 4,273,904 4,345,483 4,239,510 4,278,322 4,268,419 4,240,481 4,069,039
Deferred policy acquisition costs 2,629,644 2,712,169 2,808,347 2,877,921 2,943,782 2,994,367 3,028,511
Goodwill — — — 224,180 179,154 179,154 187,707
Other assets 899,165 921,236 925,621 1,330,620 1,274,946 1,242,457 1,219,847
Separate account assets 2,659,520 2,638,901 2,745,827 2,672,606 2,799,992 2,696,891 2,358,987
Total assets $ 14,905,286 $ 15,113,858 $ 15,519,871 $ 15,816,135 $ 16,123,222 $ 15,934,813 $ 15,329,005
Liabilities:
Future policy benefits $ 6,790,557 $ 6,885,115 $ 6,984,272 $ 7,057,599 $ 7,138,649 $ 7,216,597 $ 7,276,278
Other policy liabilities 984,612 1,020,349 977,373 1,054,925 1,103,642 1,108,047 999,789
Income taxes 223,496 235,233 204,197 260,264 241,311 217,326 164,971
Other liabilities 618,874 633,719 641,025 668,643 669,631 683,865 646,660
Debt obligations 374,415 374,511 499,606 514,702 607,102 598,303 592,504
Surplus note 1,345,772 1,361,648 1,368,194 1,375,559 1,378,585 1,389,811 1,415,457
Payable under securities lending 72,154 87,190 80,613 105,264 94,529 93,171 96,603
Separate account liabilities 2,659,520 2,638,901 2,745,827 2,672,606 2,799,992 2,696,891 2,358,987
Total liabilities 13,069,401 13,236,666 13,501,107 13,709,563 14,033,442 14,004,011 13,551,249
Redeemable noncontrolling interest $ — $ — $ — $ 7,631 $ 7,271 $ 4,616 $ 2,233
Stockholders’ equity:
Common stock (0.01 par value) (1) 393 394 394 395 394 388 378
Paid-in capital (0 ) 8,138 12,880 17,454 5,224 (0 ) (0 )
Retained earnings 1,705,786 1,785,037 1,894,539 1,988,324 2,004,506 1,980,467 1,948,244
Treasury stock — — — — — — —
Accumulated other comprehensive income (loss), net:
128,128 77,053 96,990 84,701 63,775 (66,439 ) (175,746 )
1,578 6,570 13,960 8,068 8,611 11,769 2,648
Total stockholders’ equity (2) 1,835,885 1,877,192 2,018,764 2,098,941 2,082,510 1,926,185 1,775,524
Total liabilities and stockholders' equity $ 14,905,286 $ 15,113,858 $ 15,519,871 $ 15,816,135 $ 16,123,222 $ 15,934,813 $ 15,329,005
Reconciliation of Total Stockholders' Equity to Adjusted Stockholders' Equity
Total stockholders' equity $ 1,835,885 $ 1,877,192 $ 2,018,764 $ 2,098,941 $ 2,082,510 $ 1,926,185 $ 1,775,524
Less: Net unrealized gains (losses) 128,128 77,053 96,990 84,701 63,775 (66,439 ) (175,746 )
Adjusted stockholders’ equity $ 1,707,757 $ 1,800,139 $ 1,921,774 $ 2,014,241 $ 2,018,735 $ 1,992,624 $ 1,951,270
Adjusted Stockholders' Equity Rollforward
Balance, beginning of period $ 1,614,688 $ 1,707,757 $ 1,800,139 $ 1,921,774 $ 2,014,241 $ 2,018,735 $ 1,992,624
Net Income attributable to Primerica, Inc. 100,084 97,872 128,162 112,456 34,868 81,418 107,947
Shareholder dividends (15,851 ) (18,620 ) (18,660 ) (18,671 ) (18,686 ) (21,645 ) (21,178 )
Retirement of shares and warrants (13,426 ) (5,966 ) (521 ) (88 ) (18,829 ) (103,862 ) (127,963 )
Net foreign currency translation adjustment 16,398 4,992 7,390 (5,892 ) 543 3,158 (9,121 )
Other, net 5,864 14,105 5,264 4,662 6,597 14,820 8,961
Balance, end of period $ 1,707,757 $ 1,800,139 $ 1,921,774 $ 2,014,241 $ 2,018,735 $ 1,992,624 $ 1,951,270
Deferred Policy Acquisition Costs Rollforward
Balance, beginning of period $ 2,532,409 $ 2,629,644 $ 2,712,169 $ 2,808,347 $ 2,877,921 $ 2,943,782 $ 2,994,367
General expenses deferred 9,510 10,558 10,055 9,248 9,062 9,519 9,321
Commission costs deferred 128,084 134,188 136,085 129,287 124,515 123,739 119,794
Amortization of deferred policy acquisition costs (53,342 ) (66,105 ) (54,286 ) (62,214 ) (68,575 ) (86,063 ) (85,379 )
Foreign currency impact and other, net 12,984 3,884 4,324 (6,748 ) 858 3,390 (9,593 )
Balance, end of period $ 2,629,644 $ 2,712,169 $ 2,808,347 $ 2,877,921 $ 2,943,782 $ 2,994,367 $ 3,028,511

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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4 of 18

Financial Results and Other Statistical Data PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q2 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except per-share data) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 Q2<br><br><br>2022 /#<br>Change %<br><br><br>Change YTD<br><br><br>2021 YTD<br><br><br>2022 /#<br>Change %<br><br><br>Change
Earnings per Share
Basic earnings per share:
Weighted-average common shares and fully vested equity awards 39,455,948 39,530,691 39,560,786 39,568,470 39,221,003 38,385,520 ) -2.9 % 39,493,526 38,800,954 ) -1.8%
Net income attributable to Primerica, Inc. $ 97,872 $ 128,162 $ 112,456 $ 34,868 $ 81,418 $ 107,947 ) -15.8 % $ 226,033 $ 189,365 ) -16.2%
Less income attributable to unvested participating securities (417 ) (525 ) (458 ) (141 ) (337 ) (477 ) 9.1 % (945 ) (811 ) 14.2%
Net income used in computing basic EPS $ 97,455 $ 127,636 $ 111,997 $ 34,728 $ 81,081 $ 107,470 ) -15.8 % $ 225,089 $ 188,554 ) -16.2%
Basic earnings per share $ 2.47 $ 3.23 $ 2.83 $ 0.88 $ 2.07 $ 2.80 ) -13.3 % $ 5.70 $ 4.86 ) -14.7%
Adjusted net operating income $ 97,129 $ 129,355 $ 118,708 $ 117,007 $ 83,333 $ 110,701 ) -14.4 % $ 226,485 $ 194,034 ) -14.3%
Less operating income attributable to unvested participating securities (414 ) (530 ) (484 ) (472 ) (345 ) (490 ) 7.7 % (947 ) (831 ) 12.2%
Adjusted net operating income used in computing basic operating EPS $ 96,715 $ 128,825 $ 118,224 $ 116,535 $ 82,988 $ 110,212 ) -14.4 % $ 225,538 $ 193,203 ) -14.3%
Basic adjusted operating income per share $ 2.45 $ 3.26 $ 2.99 $ 2.95 $ 2.12 $ 2.87 ) -11.9 % $ 5.71 $ 4.98 ) -12.8%
Diluted earnings per share:
Weighted-average common shares and fully vested equity awards 39,455,948 39,530,691 39,560,786 39,568,470 39,221,003 38,385,520 ) -2.9 % 39,493,526 38,800,954 ) -1.8%
Dilutive impact of contingently issuable shares 124,505 121,595 117,923 122,929 110,941 115,058 ) -5.4 % 123,050 113,000 ) -8.2%
Shares used to calculate diluted EPS 39,580,453 39,652,286 39,678,709 39,691,399 39,331,944 38,500,578 ) -2.9 % 39,616,576 38,913,954 ) -1.8%
Net income attributable to Primerica, Inc. $ 97,872 $ 128,162 $ 112,456 $ 34,868 $ 81,418 $ 107,947 ) -15.8 % $ 226,033 $ 189,365 ) -16.2%
Less income attributable to unvested participating securities (416 ) (524 ) (457 ) (140 ) (337 ) (476 ) 9.1 % (942 ) (809 ) 14.1%
Net income used in computing diluted EPS $ 97,456 $ 127,638 $ 111,998 $ 34,728 $ 81,081 $ 107,471 ) -15.8 % $ 225,091 $ 188,556 ) -16.2%
Diluted earnings per share $ 2.46 $ 3.22 $ 2.82 $ 0.87 $ 2.06 $ 2.79 ) -13.3 % $ 5.68 $ 4.85 ) -14.7%
Adjusted net operating income $ 97,129 $ 129,355 $ 118,708 $ 117,007 $ 83,333 $ 110,701 ) -14.4 % $ 226,485 $ 194,034 ) -14.3%
Less operating income attributable to unvested participating securities (413 ) (529 ) (483 ) (471 ) (344 ) (488 ) 7.6 % (944 ) (829 ) 12.2%
Adjusted net operating income used in computing diluted operating EPS $ 96,717 $ 128,827 $ 118,225 $ 116,536 $ 82,988 $ 110,213 ) -14.4 % $ 225,541 $ 193,205 ) -14.3%
Diluted adjusted operating income per share $ 2.44 $ 3.25 $ 2.98 $ 2.94 $ 2.11 $ 2.86 ) -11.9 % $ 5.69 $ 4.96 ) -12.8%

All values are in US Dollars.

YOY Q2 YOY YTD
Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 Q2<br><br><br>2022 /#<br>Change %<br><br><br>Change YTD<br><br><br>2021 YTD<br><br><br>2022 /#<br>Change %<br><br><br>Change
Annualized Return on Equity
Average stockholders' equity (1) $ 1,856,539 $ 1,947,978 $ 2,058,852 $ 2,090,726 $ 2,004,348 $ 1,850,855 ) -5.0 % $ 1,902,258 $ 1,927,601 1.3 %
Average adjusted stockholders' equity  (1) $ 1,753,948 $ 1,860,956 $ 1,968,007 $ 2,016,488 $ 2,005,679 $ 1,971,947 6.0 % $ 1,807,452 $ 1,988,813 10.0 %
Net income attributable to Primerica, Inc. return on stockholders' equity 21.1 % 26.3 % 21.8 % 6.7 % 16.2 % 23.3 % % nm 11.9 % 19.6 % % nm
Net income attributable to Primerica, Inc. return on adjusted stockholders' equity 22.3 % 27.5 % 22.9 % 6.9 % 16.2 % 21.9 % % nm 11.9 % 19.6 % % nm
Adjusted net operating income return on adjusted stockholders' equity 22.2 % 27.8 % 24.1 % 23.2 % 16.6 % 22.5 % % nm 12.5 % 19.5 % % nm
Capital Structure
Debt-to-capital (2) 16.6 % 19.8 % 19.7 % 22.6 % 23.7 % 25.0 % % nm 19.8 % 25.0 % % nm
Debt-to-capital, excluding AOCI (2) 17.3 % 20.8 % 20.4 % 23.2 % 23.2 % 23.3 % % nm 20.8 % 23.3 % % nm
Cash and invested assets to stockholders' equity 2.4 x 2.4 x 2.1 x 2.2 x 2.4 x 2.5 x x nm 2.4 x 2.5 x x nm
Cash and invested assets to adjusted stockholders' equity 2.5 x 2.5 x 2.2 x 2.3 x 2.3 x 2.3 x x) nm 2.5 x 2.3 x x) nm
Share count, end of period (3) 39,414,085 39,443,561 39,470,748 39,367,754 38,751,885 37,768,052 ) -4.2 % 39,443,561 37,768,052 ) -4.2 %
Adjusted stockholders' equity per share $ 45.67 $ 48.72 $ 51.03 $ 51.28 $ 51.42 $ 51.66 6.0 % $ 48.72 $ 51.66 6.0 %
Financial Strength Ratings - Primerica Life Insurance Co
Moody's A1 A1 A1 A1 A1 A1 nm nm nm nm nm nm
S&P AA- AA- AA- AA- AA- AA- nm nm nm nm nm nm
A.M. Best A+ A+ A+ A+ A+ A+ nm nm nm nm nm nm
Holding Company Senior Debt Ratings
Moody's Baa1 Baa1 Baa1 Baa1 Baa1 Baa1 nm nm nm nm nm nm
S&P A- A- A- A- A- A- nm nm nm nm nm nm
A.M. Best a- 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.
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(3) Share count reflects outstanding common shares, but excludes restricted stock units (RSUs).
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5 of 18

Statements of Income PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q2 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 Q2<br><br><br>2022 Change %<br><br><br>Change YTD<br><br><br>2021 YTD<br><br><br>2022 Change %<br><br><br>Change
Statement of Income
Revenues:
Direct premiums $ 762,227 $ 780,299 $ 785,277 $ 794,344 $ 798,666 $ 808,894 3.7 % $ 1,542,526 $ 1,607,560 4.2 %
Ceded premiums (395,973 ) (413,850 ) (401,295 ) (405,147 ) (399,885 ) (419,048 ) ) -1.3 % (809,822 ) (818,933 ) ) -1.1 %
Net premiums 366,254 366,450 383,983 389,197 398,781 389,846 6.4 % 732,704 788,626 7.6 %
Net investment income 20,052 20,535 20,000 20,001 18,905 21,284 3.6 % 40,588 40,189 ) -1.0 %
Commissions and fees:
Sales-based (1) 98,112 104,716 95,229 103,451 103,242 88,701 ) -15.3 % 202,828 191,942 ) -5.4 %
Asset-based (2) 101,241 108,490 113,558 118,015 113,112 108,101 ) -0.4 % 209,731 221,213 5.5 %
Account-based (3) 21,120 21,848 21,456 22,514 21,541 22,592 3.4 % 42,968 44,134 2.7 %
Other commissions and fees 13,571 15,635 39,553 44,304 13,905 21,294 36.2 % 29,205 35,200 20.5 %
Investment (losses) gains 1,766 701 1,410 1,995 751 (1,892 ) ) nm 2,466 (1,141 ) ) -146.3 %
Other, net 15,595 16,313 18,051 24,616 20,988 18,755 15.0 % 31,908 39,744 24.6 %
Total revenues 637,711 654,687 693,240 724,094 691,225 668,681 2.1 % 1,292,399 1,359,906 5.2 %
Benefits and expenses:
Benefits and claims 183,789 168,347 183,425 187,192 187,069 153,257 ) -9.0 % 352,136 340,326 ) -3.4 %
Amortization of DAC 66,105 54,286 62,214 68,575 86,063 85,379 57.3 % 120,390 171,442 42.4 %
Insurance commissions 8,740 8,838 8,412 8,542 7,721 7,594 ) -14.1 % 17,578 15,315 ) -12.9 %
Insurance expenses 48,766 48,579 51,901 53,359 59,509 59,461 22.4 % 97,345 118,970 22.2 %
Sales commissions:
Sales-based (1) 68,594 73,629 67,745 77,390 74,606 63,403 ) -13.9 % 142,224 138,009 ) -3.0 %
Asset-based (2) 46,866 50,488 53,233 55,614 53,366 50,876 0.8 % 97,355 104,242 7.1 %
Other sales commissions 6,434 7,185 8,290 6,839 5,952 5,484 ) -23.7 % 13,619 11,436 ) -16.0 %
Interest expense 7,145 7,141 7,529 8,804 6,853 6,814 ) -4.6 % 14,285 13,667 ) -4.3 %
Contract acquistion costs (4) — — 23,524 29,264 20,649 19,384 #DIV/0 ! — 40,034 #DIV/0 !
Other operating expenses 72,964 66,730 79,866 77,292 86,434 79,728 19.5 % 139,693 166,162 18.9 %
Goodwill impairment — — — 76,000 — — #DIV/0 ! — — #DIV/0 !
Loss on extinguishment of debt — — — 8,927 — — #DIV/0 ! — — #DIV/0 !
Total benefits and expenses 509,403 485,222 546,138 657,797 588,222 531,381 9.5 % 994,625 1,119,603 12.6 %
Income before income taxes 128,308 169,465 147,102 66,296 103,003 137,300 ) -19.0 % 297,773 240,304 ) -19.3 %
Income taxes 30,437 41,304 35,663 31,788 24,239 31,737 ) -23.2 % 71,740 55,977 ) -22.0 %
Net income 97,872 128,162 111,439 34,508 78,764 105,563 ) -17.6 % 226,033 184,327 ) -18.5 %
Net income attributable to noncontrolling interests — — (1,017 ) (360 ) (2,654 ) (2,384 ) ) #DIV/0 ! — (5,038 ) ) #DIV/0 !
Net Income attributable to Primerica, Inc. $ 97,872 $ 128,162 $ 112,456 $ 34,868 $ 81,418 $ 107,947 ) -15.8 % $ 226,033 $ 189,365 ) -16.2 %
Income Before Income Taxes by Segment
Term Life $ 88,236 $ 116,778 $ 107,589 $ 102,019 $ 91,577 $ 119,878 2.7 % $ 205,014 $ 211,455 3.1 %
Investment & Savings Products 63,363 71,154 69,369 70,699 64,560 58,975 ) -17.1 % 134,517 123,535 ) -8.2 %
Senior Health — — (8,489 ) (76,561 ) (23,085 ) (16,150 ) ) #DIV/0 ! — (39,235 ) ) #DIV/0 !
Corporate & Other Distributed Products (23,290 ) (18,467 ) (21,367 ) (29,861 ) (30,048 ) (25,403 ) ) -37.6 % (41,757 ) (55,451 ) ) -32.8 %
Income before income taxes $ 128,308 $ 169,465 $ 147,102 $ 66,296 $ 103,003 $ 137,300 ) -19.0 % $ 297,773 $ 240,304 ) -19.3 %

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><br>Financial Supplement
YOY Q2 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 Q2<br><br><br>2022 Change %<br><br><br>Change YTD<br><br><br>2021 YTD<br><br><br>2022 Change %<br><br><br>Change
Reconciliation from Term Life Direct Premiums to Term Life Adjusted Direct Premiums
Term Life direct premiums $ 756,514 $ 774,500 $ 779,490 $ 789,325 $ 793,254 $ 803,453 3.7 % $ 1,531,014 $ 1,596,707 4.3 %
Less: Premiums ceded to IPO Coinsurers 249,944 246,874 241,439 239,828 234,614 231,805 ) -6.1 % 496,818 466,419 ) -6.1 %
Term Life adjusted direct premiums $ 506,570 $ 527,626 $ 538,051 $ 549,496 $ 558,640 $ 571,648 8.3 % $ 1,034,196 $ 1,130,288 9.3 %
Reconciliation from Term Life Ceded Premiums to Term Life Other Ceded Premiums
Term Life ceded premiums $ (394,550 ) $ (412,028 ) $ (399,835 ) $ (403,184 ) $ (398,446 ) $ (417,406 ) ) -1.3 % $ (806,578 ) $ (815,852 ) ) -1.1 %
Less: Premiums ceded to IPO Coinsurers (249,944 ) (246,874 ) (241,439 ) (239,828 ) (234,614 ) (231,805 ) 6.1 % (496,818 ) (466,419 ) 6.1 %
Term Life other ceded premiums $ (144,606 ) $ (165,154 ) $ (158,397 ) $ (163,356 ) $ (163,832 ) $ (185,601 ) ) -12.4 % $ (309,760 ) $ (349,433 ) ) -12.8 %
Reconciliation from Net Investment Income to Adjusted Net Investment Income
Net Investment Income $ 20,052 $ 20,535 $ 20,000 $ 20,001 $ 18,905 $ 21,284 3.6 % $ 40,588 $ 40,189 ) -1.0 %
Less: MTM investment adjustments (793 ) (170 ) (640 ) (899 ) (2,099 ) (1,254 ) nm nm (963 ) (3,353 ) nm nm
Adjusted net investment income $ 20,845 $ 20,705 $ 20,640 $ 20,900 $ 21,004 $ 22,538 8.9 % $ 41,550 $ 43,542 4.8 %
Reconciliation from Other Operating Expenses to Adjusted other operating expenses
Other operating expenses $ 72,964 $ 66,730 $ 79,866 $ 77,292 $ 86,434 $ 79,728 19.5 % $ 139,693 $ 166,162 18.9 %
Less: eTeleQuote transaction-related costs — 2,109 10,027 812 900 (2,892 ) nm nm 2,109 (1,992 ) nm nm
Less: Equity comp for awards exchanged during acquisition — — (1,004 ) (739 ) 256 3,328 nm nm — 3,584 nm nm
Adjusted other operating expenses $ 72,964 $ 64,620 $ 70,843 $ 77,219 $ 85,278 $ 79,292 22.7 % $ 137,584 $ 164,570 19.6 %
Reconciliation from Total Revenues to Adjusted Operating Revenues
Total revenues $ 637,711 $ 654,687 $ 693,240 $ 724,094 $ 691,225 $ 668,681 2.1 % $ 1,292,399 $ 1,359,906 5.2 %
Less: Investment gains/(losses) 1,766 701 1,410 1,995 751 (1,892 ) nm nm 2,466 (1,141 ) nm nm
Less: MTM investment adjustments (793 ) (170 ) (640 ) (899 ) (2,099 ) (1,254 ) nm nm (963 ) (3,353 ) nm nm
Adjusted operating revenues $ 636,738 $ 654,156 $ 692,470 $ 722,998 $ 692,573 $ 671,827 2.7 % $ 1,290,895 $ 1,364,401 5.7 %
Reconciliation from Income Before Income Taxes to Adjusted Operating Income Before Income Taxes
Income before income taxes $ 128,308 $ 169,465 $ 147,102 $ 66,296 $ 103,003 $ 137,300 ) -19.0 % $ 297,773 $ 240,304 ) -19.3 %
Less: Investment gains/(losses) 1,766 701 1,410 1,995 751 (1,892 ) nm nm 2,466 (1,141 ) nm nm
Less: MTM investment adjustments (793 ) (170 ) (640 ) (899 ) (2,099 ) (1,254 ) nm nm (963 ) (3,353 ) nm nm
Less: eTeleQuote transaction-related costs — (2,109 ) (10,027 ) (812 ) (900 ) 2,892 nm nm (2,109 ) 1,992 nm nm
Less: Equity comp for awards exchanged during acquisition — — 1,004 739 (256 ) (3,328 ) nm nm — (3,584 ) nm nm
Less: Noncontrolling interest before income taxes — — (1,465 ) (540 ) (3,668 ) (3,129 ) nm nm — (6,797 ) nm nm
Less: Goodwill impairment — — — (76,000 ) — — nm nm — — nm nm
Less: Loss on extinguishment of debt — — — (8,927 ) — — nm nm — — nm nm
Adjusted operating income before income taxes $ 127,335 $ 171,044 $ 156,819 $ 150,740 $ 109,175 $ 144,011 ) -15.8 % $ 298,379 $ 253,186 ) -15.1 %
Reconciliation from Net Income to Adjusted Net Operating Income
Net income $ 97,872 $ 128,162 $ 111,439 $ 34,508 $ 78,764 $ 105,563 ) -17.6 % $ 226,033 $ 184,327 ) -18.5 %
Less: Investment gains/(losses) 1,766 701 1,410 1,995 751 (1,892 ) nm nm 2,466 (1,141 ) nm nm
Less: MTM investment adjustments (793 ) (170 ) (640 ) (899 ) (2,099 ) (1,254 ) nm nm (963 ) (3,353 ) nm nm
Less: e-TeleQuote transaction-related costs — (2,109 ) (10,027 ) (812 ) (900 ) 2,892 nm nm (2,109 ) 1,992 nm nm
Less: Equity comp for awards exchanged during acquisition — — 1,004 739 (256 ) (3,328 ) nm nm — (3,584 ) nm nm
Less: Noncontrolling interest before income taxes — — (1,465 ) (540 ) (3,668 ) (3,129 ) nm nm — (6,797 ) nm nm
Less: Goodwill impairment — — — (76,000 ) — — nm nm — — nm nm
Less: Loss on extinguishment of debt — — — (8,927 ) — — nm nm — — nm nm
Less: Tax impact of reconciling items (231 ) 385 2,449 1,945 1,603 1,573 nm nm 154 3,176 nm nm
Adjusted net operating income $ 97,129 $ 129,355 $ 118,708 $ 117,007 $ 83,333 $ 110,701 ) -14.4 % $ 226,485 $ 194,034 ) -14.3 %

All values are in US Dollars.

7 of 18

Reconciliation of Statement of Income GAAP to Non-GAAP Financial Measures PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q2 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 Q2<br><br><br>2022 $<br><br><br>Change %<br><br><br>Change YTD<br><br><br>2021 YTD<br><br><br>2022 $<br><br><br>Change %<br><br><br>Change
Reconciliation from Senior Health Income Before Income Taxes to Senior Health Adjusted Operating Income Before Income Taxes
Income before income taxes na na $(8,489) $(76,561) $(23,085) $(16,150) na na $                           — $(39,235) na na
Less: e-TeleQuote transaction-related costs na na (417) (389) (399) (66) na na — (465) na na
Less: Noncontrolling interest na na (1,465) (540) (3,668) (3,129) na na — (6,797) na na
Less: Goodwill impairment na na — (76,000) — — na na — — na na
Adjusted operating income before income taxes na na $(6,608) $369 $(19,018) $(12,955) na na $                           — $(31,973) na na
Reconciliation from C&O Income Before Income Taxes to C&O Adjusted Operating Income Before Income Taxes
Income before income taxes $(23,290) $(18,467) $(21,367) $(29,861) $(30,048) $(25,403) $(6,936) -37.6% $(41,757) $(55,451) $(13,694) -32.8%
Less: Investment gains/(losses) 1,766 701 1,410 1,995 751 (1,892) nm nm 2,466 (1,141) nm nm
Less: MTM investment adjustments (793) (170) (640) (899) (2,099) (1,254) nm nm (963) (3,353) nm nm
Less: e-TeleQuote transaction-related costs — (2,109) (9,610) (423) (501) 2,958 nm nm (2,109) 2,458 nm nm
Less: Equity comp for awards exchanged during acquistion — — 1,004 739 (256) (3,328) nm nm — (3,584) nm nm
Less: Loss on extinguishment of debt — — — (8,927) — — nm nm — — nm nm
Adjusted operating income before income taxes $(24,263) $(16,888) $(13,531) $(22,346) $(27,943) $(21,887) $(4,999) -29.6% $(41,152) $(49,831) $(8,679) -21.1%

8 of 18

Term Life Insurance - Financial Results and Analysis PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q2 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 Q2<br><br><br>2022 Change %<br><br><br>Change YTD<br><br><br>2021 YTD<br><br><br>2022 Change %<br><br><br>Change
Term Life Insurance Income Before Income Taxes
Revenues:
Direct Premiums $ 756,514 $ 774,500 $ 779,490 $ 789,325 $ 793,254 $ 803,453 3.7 % $ 1,531,014 $ 1,596,707 4.3 %
Premiums ceded to IPO coinsurers (1) (249,944 ) (246,874 ) (241,439 ) (239,828 ) (234,614 ) (231,805 ) 6.1 % (496,818 ) (466,419 ) 6.1 %
Adjusted direct premiums (2) 506,570 527,626 538,051 549,496 558,640 571,648 8.3 % 1,034,196 1,130,288 9.3 %
Other ceded premiums (3) (144,606 ) (165,154 ) (158,397 ) (163,356 ) (163,832 ) (185,601 ) ) -12.4 % (309,760 ) (349,433 ) ) -12.8 %
Net premiums 361,964 362,472 379,654 386,140 394,808 386,047 6.5 % 724,436 780,855 7.8 %
Allocated net investment income 8,253 8,751 9,320 10,162 11,445 12,286 40.4 % 17,004 23,731 39.6 %
Other, net 11,810 12,315 12,476 12,369 12,175 12,374 0.5 % 24,125 24,549 1.8 %
Revenues 382,028 383,537 401,450 408,672 418,428 410,707 7.1 % 765,565 829,136 8.3 %
Benefits and expenses:
Benefits and claims 178,963 162,488 179,696 182,749 182,903 148,977 ) -8.3 % 341,452 331,881 ) -2.8 %
Amortization of DAC 62,584 52,235 59,287 67,344 81,883 79,668 52.5 % 114,820 161,551 40.7 %
Insurance commissions 4,869 4,785 4,345 4,458 3,793 3,854 ) -19.4 % 9,654 7,648 ) -20.8 %
Insurance expenses 47,375 47,252 50,534 52,102 58,272 58,329 23.4 % 94,627 116,601 23.2 %
Benefits and expenses 293,792 266,760 293,862 306,652 326,851 290,829 9.0 % 560,552 617,681 10.2 %
Income before income taxes $ 88,236 $ 116,778 $ 107,589 $ 102,019 $ 91,577 $ 119,878 2.7 % $ 205,014 $ 211,455 3.1 %
Total Term Life Insurance - Financial Analysis
Post-IPO direct premiums (4) $ 401,106 $ 420,865 $ 431,022 $ 440,490 $ 448,657 $ 460,061 9.3 % $ 821,971 $ 908,718 10.6 %
Pre-IPO direct premiums (5) 355,408 353,635 348,468 348,834 344,597 343,392 ) -2.9 % 709,043 687,989 ) -3.0 %
Total direct premiums $ 756,514 $ 774,500 $ 779,490 $ 789,325 $ 793,254 $ 803,453 3.7 % $ 1,531,014 $ 1,596,707 4.3 %
Premiums ceded to IPO coinsurers $ 249,944 $ 246,874 $ 241,439 $ 239,828 $ 234,614 $ 231,805 ) -6.1 % $ 496,818 $ 466,419 ) -6.1 %
% of Pre-IPO direct premiums 70.3 % 69.8 % 69.3 % 68.8 % 68.1 % 67.5 % nm nm 70.1 % 67.8 % nm nm
Benefits and claims, net (6) $ 323,569 $ 327,642 $ 338,093 $ 346,105 $ 346,735 $ 334,578 2.1 % $ 651,211 $ 681,314 4.6 %
% of adjusted direct premiums 63.9 % 62.1 % 62.8 % 63.0 % 62.1 % 58.5 % nm nm 63.0 % 60.3 % nm nm
DAC amortization & insurance commissions $ 67,454 $ 57,020 $ 63,632 $ 71,802 $ 85,676 $ 83,523 46.5 % $ 124,474 $ 169,199 35.9 %
% of adjusted direct premiums 13.3 % 10.8 % 11.8 % 13.1 % 15.3 % 14.6 % nm nm 12.0 % 15.0 % nm nm
Insurance expenses, net (7) $ 35,565 $ 34,937 $ 38,057 $ 39,732 $ 46,097 $ 45,955 31.5 % $ 70,502 $ 92,053 30.6 %
% of adjusted direct premiums 7.0 % 6.6 % 7.1 % 7.2 % 8.3 % 8.0 % nm nm 6.8 % 8.1 % nm nm
Total Term Life income before income taxes $ 88,236 $ 116,778 $ 107,589 $ 102,019 $ 91,577 $ 119,878 2.7 % $ 205,014 $ 211,455 3.1 %
Term Life operating margin (8) 17.4 % 22.1 % 20.0 % 18.6 % 16.4 % 21.0 % nm nm 19.8 % 18.7 % 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.
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(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.
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(5) Pre-IPO direct premiums - direct premiums subject to the 2010 IPO coinsurance transactions.
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(6) Benefits and claims, net - benefits & claims net of other ceded premiums which are largely YRT.
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(7) Insurance expenses, net - insurance expenses net of other, net revenues.
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(8) Term Life operating margin - Term Life operating income before income taxes as a percentage of adjusted direct premiums.
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9 of 18

Term Life Insurance - Key Statistics PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q2 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 Q2<br><br><br>2022 /#<br>Change %<br><br><br>Change YTD<br><br><br>2021 YTD<br><br><br>2022 /#<br>Change %<br><br><br>Change
Key Statistics
Life-insurance licensed sales force, beginning of period 134,907 132,030 132,041 130,023 129,515 130,206 ) -1.4 % 134,907 129,515 ) -4.0 %
10,833 10,112 9,381 9,296 9,983 11,529 14.0 % 20,945 21,512 2.7 %
(13,710 ) (10,101 ) (11,399 ) (9,804 ) (9,292 ) (9,586 ) 5.1 % (23,811 ) (18,878 ) 20.7 %
Life-insurance licensed sales force, end of period 132,030 132,041 130,023 129,515 130,206 132,149 0.1 % 132,041 132,149 0.1 %
Estimated annualized issued term life premium (mills) (1):
$ 74.5 $ 82.6 $ 70.7 $ 69.4 $ 65.5 $ 72.3 ) -12.4 % $ 157.1 $ 137.8 ) -12.3 %
18.0 20.3 19.5 19.1 18.4 20.6 1.3 % 38.4 39.0 1.6 %
Total estimated annualized issued term life premium $ 92.5 $ 103.0 $ 90.2 $ 88.5 $ 83.8 $ 92.9 ) -9.7 % $ 195.5 $ 176.8 ) -9.6 %
Issued term life policies 82,667 90,071 75,914 75,203 71,324 76,946 ) -14.6 % 172,738 148,270 ) -14.2 %
Estimated average annualized issued term life premium per policy (1)(2) $ 901 $ 917 $ 931 $ 923 $ 918 $ 940 2.5 % $ 910 $ 929 2.2 %
Term life face amount in-force, beginning of period (mills) $ 858,818 $ 869,643 $ 886,519 $ 894,018 $ 903,404 $ 909,632 4.6 % $ 858,818 $ 903,404 5.2 %
26,643 29,981 26,219 25,678 24,773 27,651 ) -7.8 % 56,624 52,423 ) -7.4 %
(17,240 ) (14,706 ) (16,241 ) (16,610 ) (19,787 ) (19,298 ) ) -31.2 % (31,946 ) (39,085 ) ) -22.3 %
1,422 1,602 (2,480 ) 319 1,242 (3,547 ) ) nm 3,023 (2,305 ) ) nm
Term life face amount in-force, end of period $ 869,643 $ 886,519 $ 894,018 $ 903,404 $ 909,632 $ 914,438 3.1 % $ 886,519 $ 914,438 3.1 %

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)     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><br>Financial Supplement
YOY Q2 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 Q2<br><br><br>2022 Change %<br><br><br>Change YTD<br><br><br>2021 YTD<br><br><br>2022 Change %<br><br><br>Change
Investment & Savings Products Income Before Income Taxes
Revenues:
Commissions and fees:
Sales-based $ 98,112 $ 104,716 $ 95,229 $ 103,451 $ 103,242 $ 88,701 ) -15.3 % $ 202,828 $ 191,942 ) -5.4 %
Asset-based 101,241 108,490 113,558 118,015 113,112 108,101 ) -0.4 % 209,731 221,213 5.5 %
Account-based 21,120 21,848 21,456 22,514 21,541 22,592 3.4 % 42,968 44,134 2.7 %
Other, net 2,949 2,958 3,094 3,096 3,144 3,022 2.2 % 5,907 6,166 4.4 %
Revenues 223,422 238,012 233,337 247,076 241,039 222,416 ) -6.6 % 461,434 463,455 0.4 %
Benefits and expenses:
Amortization of DAC 3,275 1,786 2,580 1,027 3,925 5,463 nm 5,061 9,388 85.5 %
Insurance commissions 3,572 3,747 3,747 3,839 3,646 3,450 ) -7.9 % 7,319 7,096 ) -3.0 %
Sales commissions:
Sales-based 68,594 73,629 67,745 77,390 74,606 63,403 ) -13.9 % 142,224 138,009 ) -3.0 %
Asset-based 46,866 50,488 53,233 55,614 53,366 50,876 0.8 % 97,355 104,242 7.1 %
Other operating expenses 37,752 37,207 36,664 38,507 40,936 40,249 8.2 % 74,960 81,185 8.3 %
Benefits and expenses 160,060 166,858 163,968 176,377 176,479 163,440 ) -2.0 % 326,917 339,919 4.0 %
Income before income taxes $ 63,363 $ 71,154 $ 69,369 $ 70,699 $ 64,560 $ 58,975 ) -17.1 % $ 134,517 $ 123,535 ) -8.2 %
Financial Analysis
Fees paid based on client asset values (1) $ 6,964 $ 7,535 $ 7,891 $ 8,482 $ 8,037 $ 7,917 5.1 % $ 14,498 $ 15,954 10.0 %
Fees paid based on fee-generating positions (2) 10,451 10,021 9,128 9,852 10,948 9,974 ) -0.5 % 20,472 20,922 2.2 %
Other operating expenses 20,337 19,652 19,645 20,172 21,951 22,358 13.8 % 39,989 44,309 10.8 %
Total other operating expenses $ 37,752 $ 37,207 $ 36,664 $ 38,507 $ 40,936 $ 40,249 8.2 % $ 74,960 $ 81,185 8.3 %
Sales-based net revenue as % of revenue-generating sales (3)
U.S. 1.29 % 1.28 % 1.25 % 1.11 % 1.20 % 1.27 % nm nm 1.28 % 1.23 % nm nm
Canada 1.05 % 0.96 % 0.92 % 0.65 % 1.00 % 0.78 % nm nm 1.01 % 0.92 % nm nm
Total 1.25 % 1.23 % 1.20 % 1.05 % 1.16 % 1.21 % nm nm 1.24 % 1.18 % nm nm
Asset-based net revenue as % of average asset values (4)
U.S. 0.039 % 0.039 % 0.039 % 0.040 % 0.039 % 0.040 % nm nm 0.078 % 0.078 % nm nm
Canada 0.103 % 0.112 % 0.106 % 0.115 % 0.091 % 0.078 % nm nm 0.215 % 0.169 % nm nm
Total 0.049 % 0.050 % 0.050 % 0.052 % 0.047 % 0.046 % nm nm 0.099 % 0.093 % nm nm
Account-based net revenue per average fee generating position (5)(6) $ 3.77 $ 4.08 $ 4.17 $ 4.22 $ 3.48 $ 4.08 nm nm $ 7.85 $ 7.57 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.
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11 of 18

Investment and Savings Products - Key Statistics PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q2 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 Q2<br><br><br>2022 /#<br>Change %<br><br><br>Change YTD<br><br><br>2021 YTD<br><br><br>2022 /#<br>Change %<br><br><br>Change
Key Statistics
Product sales (mills)
$ 1,261.9 $ 1,336.1 $ 1,247.8 $ 1,300.3 $ 1,298.6 $ 1,151.4 ) -13.8 % $ 2,598.0 $ 2,450.0 ) -5.7 %
424.0 357.0 314.8 343.0 437.6 250.6 ) -29.8 % 781.0 688.3 ) -11.9 %
55.5 62.8 51.9 60.1 57.5 70.2 11.8 % 118.2 127.6 8.0 %
627.1 767.6 668.7 782.2 668.4 617.3 ) -19.6 % 1,394.7 1,285.7 ) -7.8 %
Total sales-based revenue generating product sales 2,368.4 2,523.4 2,283.1 2,485.7 2,462.1 2,089.5 ) -17.2 % 4,891.9 4,551.6 ) -7.0 %
330.1 381.8 387.5 406.3 453.7 451.3 18.2 % 711.8 905.0 27.1 %
154.9 135.0 119.8 127.0 149.5 148.8 10.2 % 290.0 298.3 2.9 %
Total product sales $ 2,853.5 $ 3,040.2 $ 2,790.4 $ 3,019.0 $ 3,065.4 $ 2,689.6 ) -11.5 % $ 5,893.7 $ 5,755.0 ) -2.4 %
$ 424.0 $ 357.0 $ 314.8 $ 343.0 $ 437.6 $ 250.6 ) -29.8 % $ 781.0 $ 688.3 ) -11.9 %
154.9 135.0 119.8 127.0 149.5 148.8 10.2 % 290.0 298.3 2.9 %
Total Canada product sales 579.0 492.0 434.6 470.0 587.1 399.4 ) -18.8 % 1,071.0 986.6 ) -7.9 %
Total U.S. product sales 2,274.5 2,548.2 2,355.8 2,549.0 2,478.2 2,290.1 ) -10.1 % 4,822.7 4,768.4 ) -1.1 %
Total product sales $ 2,853.5 $ 3,040.2 $ 2,790.4 $ 3,019.0 $ 3,065.4 $ 2,689.6 ) -11.5 % $ 5,893.7 $ 5,755.0 ) -2.4 %
Client asset values, beginning of period (mills) $ 81,533 $ 85,888 $ 91,735 $ 91,765 $ 97,312 $ 93,708 9.1 % $ 81,533 $ 97,312 19.4 %
2,853 3,040 2,790 3,019 3,065 2,690 ) -11.5 % 5,894 5,755 ) -2.4 %
(1,759 ) (1,826 ) (1,756 ) (1,819 ) (1,900 ) (1,797 ) 1.6 % (3,585 ) (3,697 ) ) -3.1 %
Net flows 1,095 1,214 1,034 1,200 1,166 893 ) -26.5 % 2,308 2,058 ) nm
172 200 (323 ) 42 171 (474 ) ) nm 372 (303 ) ) nm
3,088 4,433 (681 ) 4,306 (4,941 ) (11,836 ) ) nm 7,521 (16,777 ) ) nm
Client asset values, end of period $ 85,888 $ 91,735 $ 91,765 $ 97,312 $ 93,708 $ 82,291 ) -10.3 % $ 91,735 $ 82,291 ) -10.3 %
5.4 % 5.7 % 4.5 % 5.2 % 4.8 % 3.8 % % nm 5.7 % 4.2 % % nm
Average client asset values (mills)
$ 41,161 $ 44,398 $ 46,113 $ 47,139 $ 46,429 $ 42,870 ) -3.4 % $ 42,779 $ 44,650 4.4 %
10,268 11,256 11,667 11,984 12,119 11,539 2.5 % 10,762 11,829 9.9 %
5,295 5,915 6,362 6,772 7,077 6,960 17.7 % 5,605 7,018 25.2 %
2,495 2,541 2,585 2,620 2,650 2,677 5.4 % 2,518 2,664 5.8 %
21,291 22,554 23,193 23,567 23,218 21,431 ) -5.0 % 21,922 22,324 1.8 %
2,622 2,713 2,732 2,727 2,710 2,517 ) -7.2 % 2,667 2,614 ) -2.0 %
Total $ 83,131 $ 89,378 $ 92,652 $ 94,809 $ 94,203 $ 87,994 ) -1.5 % $ 86,255 $ 91,098 5.6 %
$ 10,268 $ 11,256 $ 11,667 $ 11,984 $ 12,119 $ 11,539 2.5 % $ 10,762 $ 11,829 9.9 %
2,622 2,713 2,732 2,727 2,710 2,517 ) -7.2 % 2,667 2,614 ) -2.0 %
Total Canada average client assets 12,890 13,969 14,399 14,711 14,829 14,056 0.6 % 13,430 14,443 7.5 %
Total U.S. average client assets 70,241 75,409 78,252 80,098 79,374 73,938 ) -2.0 % 72,825 76,656 5.3 %
Total average client assets $ 83,131 $ 89,378 $ 92,652 $ 94,809 $ 94,203 $ 87,994 ) -1.5 % $ 86,255 $ 91,098 5.6 %
Average number of fee-generating positions (thous) (3)
2,115 2,159 2,192 2,218 2,243 2,277 5.5 % 2,137 2,260 5.8 %
714 741 762 780 797 812 9.7 % 727 805 10.6 %
Total 2,830 2,899 2,954 2,998 3,040 3,089 6.6 % 2,864 3,065 7.0 %

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.
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(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.
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12 of 18

Senior Health - Financial Results, Financial Analysis Key Statistics PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q2 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 Q2<br><br><br>2022 $<br><br><br>Change %<br><br><br>Change YTD<br><br><br>2021 YTD<br><br><br>2022 $<br><br><br>Change %<br><br><br>Change
Senior Health Income Before Income Taxes
Revenues:
Commissions and fees (1) $ 21,558 $ 29,345 $ 1,278 $ 9,343 na na $ 10,621
Other, net (2) 1,378 8,159 4,553 2,471 na na 7,024
Revenues 22,937 37,504 5,831 11,814 na na 17,645
Benefits and expenses:
Contract acquisition costs (3) 23,524 29,264 20,649 19,384 na na 40,034
Adjusted other operating expenses 7,485 8,411 7,868 8,514 na na 16,381
Adjusted operating benefits and expenses 31,009 37,675 28,517 27,898 na na 56,415
Adjusted operating income before income taxes including NCI $ (8,072 ) $ (171 ) $ (22,686 ) $ (16,084 ) na na $ (38,770 )
Non-controlling interest before income taxes (1,465 ) (540 ) (3,668 ) (3,129 ) na na (6,797 )
Adjusted operating income before income taxes attributable to Primerica, Inc. $ (6,608 ) $ 369 $ (19,018 ) $ (12,955 ) na na $ (31,973 )
Senior Health EBITDA
Adjusted operating income before income taxes including NCI $ (8,072 ) $ (171 ) $ (22,686 ) $ (16,084 ) na na $ (38,770 )
Less:  Amortization of intangibles (2,900 ) (2,900 ) (2,600 ) (2,800 ) na na (5,400 )
Less:  Depreciation (244 ) (249 ) (245 ) (226 ) na na (471 )
Adjusted EBITDA (Including non-controlling interest) (4) $ (4,928 ) $ 2,978 $ (19,841 ) $ (13,058 ) na na $ (32,899 )
Financial Analysis and Key Statistics
Senior Health submitted policies (5) 20,867 39,142 26,231 19,652 na na 45,883
Senior Health approved policies (6) 18,276 32,047 23,594 17,925 na na 41,519
Primerica representatives Senior Health certified 17,588 26,441 42,147 60,412 na na 60,412
Senior Health submitted policies sourced by Primerica representatives 319 4,175 988 831 na na 1,819
LTV per approved policy (7) $ 1,180 $ 1,069 $ 862 $ 820 na na $ 844
CAC per approved policy (7) $ 1,287 $ 913 $ 875 $ 1,081 na na $ 964
LTV / CAC multiple 0.9 x 1.2 x 1.0 x 0.8 x na na 0.9 x
(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 from the estimated constrained LTV’s which we refer to as tail revenue.
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(2) Primarily reflects marketing development revenues, which are non-commission revenues received from carriers to support marketing efforts and lead acquisition
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(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
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(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.
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(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
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(7) In whole dollars.
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13 of 18

Corporate Other Distributed Products - Financial Results PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q2 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 Q2<br><br><br>2022 $<br><br><br>Change %<br><br><br>Change YTD<br><br><br>2021 YTD<br><br><br>2022 $<br><br><br>Change %<br><br><br>Change
Corporate & Other Distributed Products Income Before Income Taxes
Revenues:
Direct premiums $5,713 $5,800 $5,788 $5,020 $5,412 $5,441 $(359) -6.2% $11,513 $10,853 $(660) -5.7%
Ceded premiums (1,423) (1,822) (1,459) (1,963) (1,439) (1,642) 179 9.8% (3,245) (3,082) 163 5.0%
Net premiums 4,290 3,978 4,328 3,057 3,973 3,799 (180) -4.5% 8,268 7,771 (497) -6.0%
Allocated net investment income 12,592 11,954 11,321 10,738 9,559 10,252 (1,703) -14.2% 24,546 19,810 (4,736) -19.3%
Commissions and fees:
Prepaid Legal Services 4,783 5,182 6,712 4,085 4,287 4,664 (517) -10.0% 9,964 8,951 (1,013) -10.2%
Auto and Homeowners Insurance 1,787 2,101 2,436 1,971 1,591 2,056 (46) -2.2% 3,888 3,647 (241) -6.2%
Mortgage loans 4,960 6,061 6,719 6,598 4,818 3,128 (2,933) -48.4% 11,021 7,946 (3,075) -27.9%
Other sales commissions 2,041 2,291 2,129 2,307 1,932 2,103 (188) -8.2% 4,332 4,034 (298) -6.9%
Other, net 836 1,040 1,101 992 1,117 889 (152) -14.6% 1,876 2,006 130 6.9%
Adjusted operating revenues 31,288 32,607 34,746 29,746 27,276 26,890 (5,717) -17.5% 63,895 54,166 (9,730) -15.2%
Benefits and expenses:
Benefits and claims 4,826 5,859 3,728 4,443 4,166 4,280 (1,579) -27.0% 10,685 8,445 (2,240) -21.0%
Amortization of DAC 246 264 347 203 255 247 (17) -6.3% 510 503 (7) -1.3%
Insurance commissions 299 306 320 246 282 290 (16) -5.2% 605 572 (33) -5.5%
Insurance expenses 1,391 1,327 1,367 1,257 1,237 1,132 (196) -14.8% 2,719 2,368 (350) -12.9%
Sales commissions 6,434 7,185 8,290 6,839 5,952 5,484 (1,701) -23.7% 13,619 11,436 (2,183) -16.0%
Interest expense 7,145 7,141 7,529 8,804 6,853 6,814 (326) -4.6% 14,285 13,667 (618) -4.3%
Adjusted other operating expenses 35,211 27,413 26,695 30,301 36,475 30,530 3,116 11.4% 62,624 67,004 4,380 7.0%
Adjusted benefits and expenses 55,551 49,495 48,277 52,093 55,219 48,777 (718) -1.5% 105,047 103,996 (1,051) -1.0%
Adjusted operating income before income taxes $(24,263) $(16,888) $(13,531) $(22,346) $(27,943) $(21,887) $(4,999) -29.6% $(41,152) $(49,831) $(8,679) -21.1%

14 of 18

Investment Portfolio - Summary of Holdings PRIMERICA, INC.<br><br><br>Financial Supplement
As of or for the period ended June 30, 2022
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
% 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 $ 403,430 $ 403,430 $ - 13.4 % 12.5 %
Fixed Income:
Treasury 38,922 39,548 (626 ) 1.3 % 1.2 % 1.16 % AAA
Government 238,489 258,477 (19,989 ) 7.9 % 8.0 % 2.90 % AA-
Tax-Exempt Municipal 34,214 38,113 (3,899 ) 1.1 % 1.2 % 2.70 % AA
Corporate 1,293,101 1,404,389 (111,288 ) 43.1 % 43.5 % 3.43 % BBB+
Mortgage Backed 452,272 497,501 (45,229 ) 15.1 % 15.4 % 2.87 % AAA
Asset Backed 138,292 148,128 (9,836 ) 4.6 % 4.6 % 3.04 % AA-
Cmbs 135,504 145,360 (9,855 ) 4.5 % 4.5 % 3.09 % AA-
Private 227,599 249,832 (22,233 ) 7.6 % 7.7 % 3.97 % BBB
Redeemable Preferred 5,049 5,448 (399 ) 0.2 % 0.2 % 5.46 % BBB
Total Fixed Income 2,563,441 2,786,796 (223,355 ) 85.4 % 86.4 % 3.25 % A
Equities and Other:
Perpetual Preferred 9,151 9,151 - 0.3 % 0.3 %
Common Stock 20,864 20,864 (0 ) 0.7 % 0.6 %
Mutual Fund 5,862 5,862 0 0.2 % 0.2 %
Derivatives - - - 0.0 % 0.0 %
Total Equities 35,877 35,877 (0 ) 1.2 % 1.1 %
Total Invested Assets $ 3,002,748 $ 3,226,103 $ (223,355 ) 100.0 % 100.0 %
Public Corporate Portfolio by Sector
Insurance $ 160,695 $ 175,897 $ (15,202 ) 12.4 % 12.5 %
Consumer Non Cyclical 146,112 157,783 (11,671 ) 11.3 % 11.2 %
Energy 134,323 145,802 (11,479 ) 10.4 % 10.4 %
Reits 128,846 142,537 (13,691 ) 10.0 % 10.1 %
Banking 103,935 108,742 (4,807 ) 8.0 % 7.7 %
Consumer Cyclical 100,335 109,781 (9,445 ) 7.8 % 7.8 %
Technology 100,099 106,153 (6,055 ) 7.7 % 7.6 %
Capital Goods 72,452 77,942 (5,490 ) 5.6 % 5.5 %
Electric 60,017 64,888 (4,870 ) 4.6 % 4.6 %
Transportation 57,435 62,230 (4,795 ) 4.4 % 4.4 %
Basic Industry 56,832 62,821 (5,990 ) 4.4 % 4.5 %
Finance Companies 50,656 56,996 (6,339 ) 3.9 % 4.1 %
Brokerage 50,366 55,392 (5,026 ) 3.9 % 3.9 %
Communications 44,963 48,081 (3,118 ) 3.5 % 3.4 %
Financial Other 8,671 9,581 (910 ) 0.7 % 0.7 %
Industrial Other 6,204 6,948 (744 ) 0.5 % 0.5 %
Utility Other 4,717 5,387 (670 ) 0.4 % 0.4 %
Natural Gas 4,621 5,106 (485 ) 0.4 % 0.4 %
Owned No Guarantee 1,823 2,325 (502 ) 0.1 % 0.2 %
Total Corporate portfolio $ 1,293,101 $ 1,404,389 $ (111,288 ) 100.0 % 100.0 %
Fixed-Maturity Securities - Effective Maturity
Effective maturity
< 1 Yr. $ 247,625 $ 248,565 $ (940 ) 9.7 % 8.9 % 3.10 %
1-2 Yrs. 227,321 229,891 (2,569 ) 8.9 % 8.2 % 3.68 %
2-5 Yrs. 800,842 839,185 (38,343 ) 31.2 % 30.1 % 3.41 %
5-10 Yrs. 978,240 1,107,505 (129,266 ) 38.2 % 39.7 % 3.04 %
> 10 Yrs. 309,412 361,650 (52,238 ) 12.1 % 13.0 % 3.37 %
Total Fixed Income $ 2,563,441 $ 2,786,796 $ (223,355 ) 100.0 % 100.0 % 3.25 %
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 June 30, 2022 PRIMERICA, INC.<br><br><br>Financial Supplement
(Dollars in thousands)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Investment Portfolio Quality Ratings (1)
Amortized  Cost % of Total
Total Fixed Income portfolio:
Rating
AAA $ 613,700 22.0 %
AA 311,942 11.2 %
A 641,658 23.0 %
BBB 1,104,078 39.6 %
Below Investment Grade 79,398 2.8 %
NA 36,020 1.3 %
Total Fixed Income $ 2,786,796 100.0 %
Amortized  Cost % of Total Amortized  Cost % of Total
Public Corporate asset class: Private Placement asset class:
Rating Rating
AAA $ 12,506 0.9 % AAA $ - —
AA 67,319 4.8 % AA 5,357 2.1 %
A 377,692 26.9 % A 42,934 17.2 %
BBB 880,909 62.7 % BBB 193,582 77.5 %
Below Investment Grade 65,788 4.7 % Below Investment Grade 7,958 3.2 %
NA 176 0.0 % NA - —
Total Corporate $ 1,404,389 100.0 % Total Private $ 249,832 100.0 %
CMBS asset class: Mortgage-Backed asset class:
Rating Rating
AAA $ 66,149 45.5 % AAA $ 448,854 90.2 %
AA 8,964 6.2 % AA 48,406 9.7 %
A 70,247 48.3 % A 141 0.0 %
BBB - — BBB - —
Below Investment Grade - — Below Investment Grade 77 0.0 %
NA - — NA 23 0.0 %
Total CMBS $ 145,360 100.0 % Total Mortgage-Backed $ 497,501 100.0 %
Asset-Backed asset class: Treasury & Government asset classes:
Rating Rating
AAA $ 23,992 16.2 % AAA $ 61,051 20.5 %
AA 6,653 4.5 % AA 146,731 49.2 %
A 70,859 47.8 % A 74,728 25.1 %
BBB 8,659 5.8 % BBB 12,085 4.1 %
Below Investment Grade 2,144 1.4 % Below Investment Grade 3,430 1.2 %
NA 35,821 24.2 % NA 0 0.0 %
Total Asset-Backed $ 148,128 100.0 % Total Treasury & Government $ 298,025 100.0 %
NAIC Designations
1 $ 1,309,709 53.6 %
2 1,043,259 42.7 %
3 80,752 3.3 %
4 8,016 0.3 %
5 691 0.0 %
6 0 0.0 %
U.S. Insurer Fixed Income (2) 2,442,426 100.0 %
Other (3) 380,248
Cash and cash equivalents 403,430
Total Invested Assets $ 3,226,103
(1) Ratings method for split ratings: If by 2 NRSROs, use lower of the two; if by 3 or more NRSROs, use second lowest.
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(2) NAIC ratings for our U.S. insurance companies' fixed income portfolios.
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(3) Other consists of assets held by our non-life companies, Canadian insurance company, and unrated equities.
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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><br>Financial Supplement
YOY Q2
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 Q2<br><br><br>2022 Change %<br><br><br>Change
Net Investment Income by Source
Fixed-maturity securities (available-for-sale) $ 20,020 $ 20,155 $ 19,860 $ 20,328 $ 20,889 $ 22,414 11.2%
Fixed-maturity securities (held-to-maturity) 15,146 15,495 15,741 15,825 15,515 15,815 2.1%
Equity Securities 391 411 413 416 387 371 ) -9.7%
Deposit asset underlying 10% reinsurance treaty 1,368 1,238 987 785 589 485 ) -60.8%
Deposit asset - Mark to Market (793 ) (170 ) (640 ) (899 ) (2,099 ) (1,254 ) ) n/m
Policy loans and other invested assets 231 98 289 401 102 58 ) -40.8%
Cash & cash equivalents 119 156 96 85 125 498 219.2%
Total investment income 36,483 37,383 36,746 36,940 35,508 38,387 2.7%
Investment expenses 1,284 1,353 1,004 1,114 1,088 1,288 ) -4.8%
Interest Expense on Surplus Note 15,146 15,495 15,741 15,825 15,515 15,815 2.1%
Net investment income $ 20,052 $ 20,535 $ 20,001 $ 20,001 $ 18,905 $ 21,284 3.6%
Fixed income book yield, end of period 3.30 % 3.31 % 3.23 % 3.12 % 3.18 % 3.25 %
New money yield 1.72 % 2.68 % 2.21 % 1.60 % 3.37 % 4.21 %
YOY Q2
Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 Q2<br><br><br>2022 % Pt<br>Change
Fixed Income Portfolio Quality Ratings
Rating
AAA 16.6 % 16.5 % 18.0 % 18.7 % 21.0 % 22.0 % %
AA 12.2 % 11.6 % 11.0 % 11.8 % 11.2 % 11.2 % %
A 23.0 % 22.1 % 23.6 % 24.4 % 23.7 % 23.0 % %
BBB 44.0 % 45.5 % 42.9 % 40.8 % 39.8 % 39.6 % %
Below Investment Grade 4.1 % 4.2 % 4.1 % 3.5 % 3.1 % 2.8 % %
NA 0.1 % 0.1 % 0.3 % 0.8 % 1.2 % 1.3 % %
Total Fixed Income 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Average rating by amortized cost A- A- A A A A

All values are in US Dollars.

As of June 30, 2022 As of June 30, 2022 As of June 30, 2022
Market<br><br><br>Value Amortized<br><br><br>Cost Credit<br><br><br>Rating Market<br><br><br>Value Amortized<br><br><br>Cost Market<br><br><br>Value Amortized<br><br><br>Cost
Top 25 Exposures Foreign Exposure (1) Government Investments (1)
1 Canada $ 16,089 $ 17,131 AAA Canada $ 89,343 $ 96,116 AAA $ 2,033 $ 2,128
2 Province of Quebec Canada 14,503 15,140 A+ Australia 26,255 27,245 AA 8,665 8,665
3 Province of Ontario Canada 14,447 15,110 AA- Cayman Islands 18,257 19,141 A 13,028 14,234
4 Province of Alberta Canada 12,349 13,497 BBB+ United Kingdom 15,696 15,985 BBB 9,733 10,644
5 TC Energy Corp 11,270 12,533 BBB+ Japan 10,083 10,158 Below Investment Grade 2,886 3,430
6 Enbridge Inc 10,781 11,572 BBB+ Bermuda 8,840 8,903 NA — —
7 Manulife Financial Corp 9,985 10,725 A France 7,989 8,195 Total $ 36,345 $ 39,101
8 Capital One Financial Corp 9,769 9,792 BBB Ireland 7,355 7,576
9 Province of British Columbia Canada 9,678 10,126 AA+ Mexico 6,446 7,573
10 Ontario Teachers' Pension Plan 9,200 10,203 AA+ Netherlands 5,595 5,459 Non-Government Investments (1)
11 ConocoPhillips 8,870 9,836 A- Brazil 3,795 4,071
12 Fairfax Financial Holdings Ltd 8,613 9,841 BBB- Israel 3,612 3,555 AAA $ 2,906 $ 2,999
13 Kemper Corp 8,522 9,095 BBB Supranational 3,532 3,622 AA 3,441 3,564
14 Brookfield Asset Management Inc 8,453 8,688 A- Switzerland 3,463 3,787 A 50,122 52,316
15 Western & Southern Mutual Holdings Co 8,449 9,550 AA- Luxembourg 3,447 3,500 BBB 134,365 142,855
16 City of Toronto Canada 8,243 8,518 AA Emerging Markets  (2) 12,614 14,387 Below Investment Grade 10,289 10,213
17 Province of Newfoundland and Labrador 7,791 8,630 A All Other 16,556 17,352 NA 5,410 5,578
18 Morgan Stanley 7,774 7,936 BBB+ Total $ 242,878 $ 256,625 Total $ 206,533 $ 217,525
19 Bunge Ltd 7,347 8,138 BBB
20 Province of New Brunswick Canada 7,335 7,652 A+
21 General Mills Inc 7,315 7,367 BBB
22 Sammons Enterprises Inc 7,299 8,387 BBB+
23 Apple Inc 7,292 7,724 AA+
24 Realty Income Corp 7,261 7,874 A-
25 Williams Cos Inc 7,253 8,090 BBB
Total $ 235,890 $ 253,156
% of total fixed income portfolio 7.9 % 7.8 %
(1) US$ denominated investments in issuers outside of the United States based on country of risk.
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(2) Emerging markets is as defined by MSCI, Inc. which include Chile, India, Peru, Poland and South Africa.
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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><br>Financial Supplement
(Dollars in millions) 2017 2018 2019 2020 2021 Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 Q2<br><br><br>2022
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Recruits 303,867 290,886 282,207 400,345 349,374 94,633 89,285 91,884 73,572 84,707 70,215
Life-insurance licensed sales force, beginning of period 116,827 126,121 130,736 130,522 134,907 134,907 132,030 132,041 130,023 129,515 130,206
New life-licensed representatives 48,535 48,041 44,739 48,106 39,622 10,833 10,112 9,381 9,296 9,983 11,529
Non-renewal and terminated representatives (39,241 ) (43,426 ) (44,953 ) (43,721 ) (45,014 ) (13,710 ) (10,101 ) (11,399 ) (9,804 ) (9,292 ) (9,586 )
Life-insurance licensed sales force, end of period 126,121 130,736 130,522 134,907 129,515 132,030 132,041 130,023 129,515 130,206 132,149
Issued term life policies 312,799 301,589 287,809 352,868 323,855 82,667 90,071 75,914 75,203 71,324 76,946
Issued term life face amount $ 95,635 $ 95,209 $ 93,994 $ 109,436 $ 108,521 $ 26,643 $ 29,981 $ 26,219 $ 25,678 $ 24,773 $ 27,651
Term life face amount in force, beginning of period $ 728,385 $ 763,831 $ 781,041 $ 808,262 $ 858,818 $ 858,818 $ 869,643 $ 886,519 $ 894,018 $ 903,404 $ 909,632
Issued term life face amount 95,635 95,209 93,994 109,436 108,521 26,643 29,981 26,219 25,678 24,773 27,651
Terminated term life face amount (65,958 ) (70,291 ) (71,519 ) (60,848 ) (64,798 ) (17,240 ) (14,706 ) (16,241 ) (16,610 ) (19,787 ) (19,298 )
Foreign currency impact, net 5,769 (7,708 ) 4,746 1,968 862 1,422 1,602 (2,480 ) 319 1,242 (3,547 )
Term life face amount in force, end of period $ 763,831 $ 781,041 $ 808,262 $ 858,818 $ 903,404 $ 869,643 $ 886,519 $ 894,018 $ 903,404 $ 909,632 $ 914,438
Estimated annualized issued term life premium
Premium from new policies $ 255.4 $ 250.8 $ 244.8 $ 303.6 $ 297.2 $ 74.5 $ 82.6 $ 70.7 $ 69.4 $ 65.5 $ 72.3
Additions and increases in premium 49.5 55.2 60.2 68.9 77.0 18.0 20.3 19.5 19.1 18.4 20.6
Total estimated annualized issued term life premium $ 304.9 $ 306.0 $ 305.0 $ 372.5 $ 374.2 $ 92.5 $ 103.0 $ 90.2 $ 88.5 $ 83.8 $ 92.9
Investment & Savings product sales $ 6,192.2 $ 7,040.1 $ 7,533.2 $ 7,842.5 $ 11,703.1 $ 2,853.5 $ 3,040.2 $ 2,790.4 $ 3,019.0 $ 3,065.4 $ 2,689.6
Investment & Savings average client asset values $ 56,791 $ 61,842 $ 65,029 $ 69,709 $ 89,993 $ 83,131 $ 89,378 $ 92,652 $ 94,809 $ 94,203 $ 87,994
Closed U.S. Mortgage Volume (brokered) $ — $ — $ 31.1 $ 442.5 $ 1,229.2 $ 262.3 $ 298.6 $ 337.6 $ 330.8 $ 235.9 $ 152.7

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