Equibles

8-K

Primerica, Inc. (PRI)

8-K 2022-11-08 For: 2022-11-08
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): November 8, 2022

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Primerica, Inc.

(Exact Name of Registrant as Specified in Its Charter)

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

(770) 381-1000

(Registrant’s telephone number, including area code)

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

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

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

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

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

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

Emerging growth company ☐

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

Item 2.02 Results of Operations and Financial Condition.

On November 8, 2022, Primerica, Inc. (the “Company”) announced its results of operations for the quarter ended September 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 e-TeleQuote Insurance, Inc. and subsidiaries (collectively, “e-TeleQuote”), adjustments to share-based compensation expense for shares exchanged in the business combination and non-cash goodwill impairment charges. We exclude e-TeleQuote transaction-related expenses/recoveries and non-cash goodwill impairment charges as these are non-recurring items that will cause incomparability between period-over-period results. We exclude adjustments to share-based compensation expense for shares exchanged in the business combination to eliminate period-over-period fluctuations that may obscure comparisons of operating results primarily due to the volatility of changes in the fair value of shares, which were ultimately redeemed at zero value. 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 7.01 Regulation FD Disclosure.

On November 8, 2022, the Company posted to the “Investor Relations” section of its website certain supplemental financial information relating to the quarter ended September 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 November 8, 2022 – Primerica Reports Third Quarter 2022 Results
99.2 Primerica, Inc. Supplemental Financial Information – Third 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: November 8, 2022 PRIMERICA, INC.
/s/ Alison S. Rand
Alison S. Rand
Executive Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

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PRIMERICA REPORTS THIRD QUARTER 2022 RESULTS

Life-licensed sales force grew 3% driven by strong new life licenses

Term Life net premiums increased 6%; adjusted direct premiums increased 7%

Investment and Savings Products sales of $2.2 billion declined 23% reflecting market conditions; net client inflows remained positive at $0.7 billion

Net earnings per diluted share (EPS) of $1.37 (including a non-cash goodwill impairment of $1.59 per diluted share) decreased 51%; return on stockholders’ equity (ROE) of 12.2%

Diluted adjusted operating EPS of $3.02 increased 1%; adjusted net operating income return on adjusted stockholders’ equity (ROAE) of 23.8%

Declared dividend of $0.55 per share, payable on December 14, 2022, and repurchased $97 million of common stock during the quarter

Duluth, GA, Nov. 8, 2022 – Primerica, Inc. (NYSE: PRI) today announced financial results for the quarter ended September 30, 2022. Total revenues were $673.3 million, decreasing 3% compared to the third quarter of 2021. Net income of $51.8 million decreased 54%, while net earnings per diluted share of $1.37 decreased 51% compared to the same period in the prior year. Results reflect a non-cash goodwill impairment charge of $60.0 million, or $1.59 per diluted share, in connection with the annual goodwill impairment test for the Senior Health reporting unit. The calculated decline in fair value was primarily attributable to an increase in the market-based weighted average cost of capital (“WACC”) used to discount forecasted cash flows. The increase in the WACC was driven by higher equity market risk premiums and interest rates.

The Company excludes the goodwill impairment charge from adjusted operating results as it represents a non-recurring item that causes incomparability of the Company’s core results between periods. Adjusted operating revenues were $676.1 million, decreasing 2% compared to the third quarter of 2021. Adjusted net operating income of $113.9 million decreased 4% year-over-year, while adjusted operating net earnings per diluted share of $3.02 increased 1%.

Operating results during the quarter were pressured by market volatility, which led to a substantial decline in client asset values and lower sales volume in the Investment and

Savings Product segment. Continued growth in Term Life earnings partly offset the negative impact of equity markets on the current period’s financial results. The Company continues to make progress in addressing challenges in the senior health distribution marketplace. Insurance and other operating expense growth has normalized as expected from the higher growth levels reported earlier in the year. The Company continues to make significant progress in growing the size of the independent life-licensed sales force by leveraging improvements in the licensing process and the excitement generated at the biennial convention.

“Our focus remains on serving the protection and savings needs of our clients during these times of market volatility and economic uncertainty as we expand the size of our sales force,” said Glenn Williams, Chief Executive Officer. “Our biennial convention had the desired impact of adding energy and excitement to our organization.”

Third Quarter Distribution & Segment Results

Distribution Results
Q3 2022 Q3 2021 % Change
Life-Licensed Sales Force (1) 134,313 130,023 3 %
Recruits 127,788 91,884 39 %
New Life-Licensed Representatives 12,518 9,381 33 %
Life Insurance Policies Issued 71,104 75,914 (6 )%
Life Productivity (2) 0.18 0.19 *
ISP Product Sales ($ billions) $ 2.16 $ 2.79 (23 )%
Average Client Asset Values ($ billions) $ 83.32 $ 92.65 (10 )%
Senior Health Submitted Policies (3) 16,095 20,867 (23 )%
Senior Health Approved Policies (4) 14,862 18,276 (19 )%
Closed U.S. Mortgage Volume ($ million brokered) $ 99.8 $ 337.6 (70 )%

(1) End of period. The 2021 period includes an estimated 800 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.

(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
Q3 2022 Q3 2021 % Change
( in thousands)
Adjusted Operating Revenues:
Term Life Insurance $ 401,451 7 %
Investment and Savings Products 233,337 (14 )%
Senior Health  (1) 22,936 (25 )%
Corporate and Other Distributed Products (1) 34,745 (16 )%
Total adjusted operating revenues (1) $ 692,469 (2 )%
Adjusted Operating Income (Loss) before <br>  income taxes:
Term Life Insurance $ 107,589 4 %
Investment and Savings Products 69,368 (16 )%
Senior Health  (1) ) (6,608 ) (44 )%
Corporate and Other Distributed Products (1) ) (13,529 ) 31 %
Total adjusted operating income before <br>   income taxes (1) $ 156,820 (5 )%

All values are in US Dollars.

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

Life Insurance Licensed Sales Force

Licensing momentum continued with 12,518 new life-licensed representatives being added during the third quarter of 2022, a 33% increase compared to the prior year period. Part of this growth was driven by significant recruiting incentives launched at the convention for the month of July that offered various levels of licensing fee discounts. The Company recruited approximately 83,000 individuals in July and 127,788 in total for the quarter, demonstrating the attractiveness of our business model to middle-income households today. The size of the sales force has increased nearly 4% since the end of last year with a total of 134,313 independent life-licensed representatives as of September 30, 2022.

Term Life Insurance

During the third quarter of 2022, the Company issued 71,104 new life insurance policies, a decrease of 6% compared to the third quarter of 2021. The Company believes the year-over-year decline in sales was attributable in part to the impact of economic uncertainty and a higher cost of living on middle-income families. Productivity at 0.18 policies per life-licensed representative per month remained in line with the Company’s historical range, but down slightly from 0.19 in the prior year period.

Third quarter revenues of $427.8 million increased 7% year-over-year, driven by 7% growth in adjusted direct premiums. Overall persistency continues to normalize and policies that were sold during the current year are generally performing in line with pre-pandemic levels. Lapse rates for policies issued during the first year of the pandemic continued to trend around 15% higher than historical norms. The DAC amortization ratio of 16.0% was generally in line with typical third quarter levels. The benefits and claims ratio during the quarter was 59.5%, reflecting $2 million in excess claims split between COVID-related deaths and normal volatility.

Investment and Savings Products

Total product sales during the quarter were $2.2 billion, or 23% lower compared to the third quarter of 2021 as equity markets continued to decline, pressuring sales and client asset values. Despite heightened market volatility, clients remain committed to long-term retirement savings and net client flows were robust at $714 million during the quarter. Client asset values on September 30, 2022 were $78.7 billion, declining 14% year-over-year.

Revenues of $201.7 million during the quarter declined 14% compared to the third quarter of 2021 as a result of a 28% drop in revenue-generating sales and a 10% decline in average client asset values. Asset-based net revenues declined slightly less than average client asset values due to the continued growth in managed account assets, while sales-based net revenues declined in line with commission-generating sales.

Senior Health

The third quarter results reflected seasonally lower activity levels ahead of the Annual Enrollment Period, which started on October 15. A total of 14,862 policies were approved during the quarter with lifetime value of commissions ("LTV") per approved policy of $868 and contract acquisition costs ("CAC") per approved policy of $905, resulting in an LTV/CAC ratio slightly below 1.0x.

The pre-tax operating loss during the third quarter was $3.7 million compared to a pre-tax operating loss attributable to Primerica of $6.6 million in the prior year period. The current period results include an increase in insurance carriers’ commission rates, which led to a $1.7 million positive tail adjustment. During the first nine months of 2022, the Company did not need to provide funding to the Senior Health segment as cash tax benefits from net operating losses were sufficient to cover operating needs.

Corporate and Other Distributed Products

During the third quarter, the segment recorded an adjusted operating loss before taxes of $17.8 million, increasing $4.2 million year-over-year. The increase was due to a $2.7 million lower contribution from the mortgage business as interest rate headwinds accelerated during the quarter, as well as higher insurance and other operating expenses.

Invested Asset Portfolio

Consolidated net investment income increased $4.3 million compared to the prior year period, reflecting higher yields on investments and growth in the size of the invested asset portfolio. Most of the increase was allocated to the Term Life segment, reflecting the growth in the business.

The invested asset portfolio ended the quarter with an unrealized loss of $321 million, compared to an unrealized loss of $223 million at June 30, reflecting the substantial rise in interest rates, and to a lesser extent, changes in credit spreads, during the period.

Taxes

The effective tax rate was 39.7% in the third quarter of 2022 compared to 24.2% in the prior year period. The increase in the effective tax rate during the third quarter of 2022 was driven by the non-cash goodwill impairment charge that is not deductible for income tax purposes. Excluding the goodwill impairment, the effective tax rate in the third quarter of 2022 would have been 23.4%. This rate is lower compared to the third quarter of 2021 because of e-TeleQuote state income tax benefits recorded in the current year.

Capital

During the third quarter, the Company repurchased $97.4 million of common stock, for a total of $324.3 million year-to-date. The Company expects to complete an additional $32 million by the end of 2022. The Board of Directors has approved a dividend of $0.55 per share, payable on December 14, 2022 to stockholders of record on November 22, 2022.

Primerica has a strong balance sheet, including invested assets and cash at the holding company of $240 million at quarter-end. Primerica Life Insurance Company’s statutory risk-based capital (RBC) ratio was estimated to be about 460% as of September 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 e-TeleQuote Insurance, Inc. and subsidiaries (collectively, “e-TeleQuote”), adjustments to share-based compensation expense for shares exchanged in the business combination and non-cash goodwill impairment charges. We exclude e-TeleQuote transaction-related expenses/recoveries

and non-cash goodwill impairment charges as these are non-recurring items that will cause incomparability between period-over-period results. We exclude adjustments to share-based compensation expense for shares exchanged in the business combination to eliminate period-over-period fluctuations that may obscure comparisons of operating results primarily due to the volatility of changes in the fair value of shares, which were ultimately redeemed at zero value. 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 Wednesday, November 9, 2022, at 10:00 a.m. Eastern, to discuss the quarter’s results. To access the webcast, go to https://investors.primerica.com at least 15 minutes prior to the event to register, download and install any necessary software. A replay of the call will be available for approximately 30 days. This release and a detailed financial supplement will be posted on Primerica’s website.

Forward-Looking Statements

Except for historical information contained in this press release, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from anticipated or projected results. Those risks and uncertainties include, among others, our failure to continue to attract and license new recruits, retain sales representatives or license or maintain the licensing of sales representatives; new laws or regulations that could apply to our distribution model, which could require us to modify our distribution structure; changes to the independent

contractor status of sales representatives; our or sales representatives’ violation of or non-compliance with laws and regulations; any failure to protect the confidentiality of client information; differences between our actual experience and our expectations regarding mortality or persistency as reflected in the pricing for our insurance policies; changes in federal, state and provincial legislation or regulation that affects our insurance, investment product and mortgage businesses; our failure to meet regulatory capital ratios or other minimum capital and surplus requirements; a significant downgrade by a ratings organization; the failure of our reinsurers or reserve financing counterparties to perform their obligations; the failure of our investment products to remain competitive with other investment options or the loss of our relationship with one or more of the companies whose investment products we provide; litigation and regulatory investigations and actions concerning us or sales representatives; heightened standards of conduct or more stringent licensing requirements for sales representatives; inadequate policies and procedures regarding suitability review of client transactions; revocation of our subsidiary’s status as a non-bank custodian; economic down cycles that impact our business, financial condition and results of operations; major public health pandemics, epidemics or outbreaks or other catastrophic events; the failure of our information technology systems, breach of our information security, failure of our business continuity plan or the loss of the Internet; the effects of credit deterioration and interest rate fluctuations on our invested asset portfolio and other assets; incorrectly valuing our investments; changes in accounting standards may impact how we record and report our financial condition and results of operations; the inability of our subsidiaries to pay dividends or make distributions; litigation and regulatory investigations and actions; a significant change in the competitive environment in which we operate; the loss of key personnel or sales force leaders; any acquisition or investment in businesses that do not perform as we expect or are difficult to integrate; due to our very limited history with e-TeleQuote, we cannot be certain that its business will be successful or that we will successfully address any risks not known to us that may become material; a failure by e-TeleQuote to comply with the requirements of the United States government’s Centers for Medicare and Medicaid Services and those of its carrier partners; legislative or regulatory changes to Medicare Advantage or changes to the implementing guidance by the Centers for Medicare and Medicaid Services; e-TeleQuote’s inability to acquire or generate leads on commercially viable terms, convert leads to sales or if customer policy retention is lower than assumed; e-TeleQuote’s inability to enroll individuals during the Medicare annual election period; the loss of a key carrier, or the modification of commission rates or underwriting practices with a key carrier partner could adversely affect e-TeleQuote’s business; cyber-attack(s), security breaches or if e-TeleQuote is otherwise unable to safeguard the security and privacy of confidential data, including personal health information; and fluctuations in the market price of our common stock or Canadian currency exchange rates. These and other risks and uncertainties affecting us are more fully described in our filings with the Securities and Exchange Commission, which are available in the "Investor Relations" section of our website at https://investors.primerica.com. Primerica assumes no duty to update its forward-looking statements as of any future date.

About Primerica, Inc.

Primerica, Inc., headquartered in Duluth, GA, is a leading provider of financial services to middle-income households in North America. Independent licensed representatives educate Primerica clients about how to better prepare for a more secure financial future by assessing their needs and providing appropriate solutions through term life insurance, which we underwrite, and mutual funds, annuities and other financial products, which we distribute primarily on behalf of third parties. We insured over 5.7 million lives and had over 2.7 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)
September 30, 2022 December 31, 2021
(In thousands)
Assets
Investments:
Fixed-maturity securities available-for-sale, at fair value $ 2,457,989 $ 2,702,567
Fixed-maturity security held-to-maturity, at amortized cost 1,433,760 1,379,100
Short-term investments available-for-sale, at fair value - 85,243
Equity securities, at fair value 33,079 42,551
Trading securities, at fair value 3,718 24,355
Policy loans and other invested assets 48,787 30,612
Total investments 3,977,333 4,264,428
Cash and cash equivalents 438,025 392,501
Accrued investment income 19,949 18,702
Reinsurance recoverables 4,033,897 4,268,419
Deferred policy acquisition costs, net 3,049,102 2,943,782
Renewal commissions receivable 198,027 231,751
Agent balances, due premiums and other receivables 266,831 257,675
Goodwill 127,707 179,154
Intangible assets 188,150 195,825
Income taxes 90,719 81,799
Operating lease right-of-use assets 42,343 47,942
Other assets 403,452 441,253
Separate account assets 2,206,608 2,799,992
Total assets $ 15,042,143 $ 16,123,223
Liabilities and Stockholders' Equity
Liabilities:
Future policy benefits $ 7,314,688 $ 7,138,649
Unearned and advance premiums 16,153 16,437
Policy claims and other benefits payable 496,563 585,382
Other policyholders' funds 492,479 501,823
Notes payable - short term - 15,000
Notes payable - long term 592,705 592,102
Surplus note 1,433,293 1,378,585
Income taxes 129,347 241,311
Operating lease liabilities 47,935 53,920
Other liabilities 611,646 615,710
Payable under securities lending 80,754 94,529
Separate account liabilities 2,206,608 2,799,992
Total liabilities 13,422,171 14,033,440
Temporary Stockholders' Equity
Redeemable noncontrolling interests in consolidated entities - 7,271
Permanent Stockholders' equity
Equity attributable to Primerica, Inc.:
Common stock 370 394
Paid-in capital - 5,224
Retained earnings 1,887,952 2,004,506
Accumulated other comprehensive income (loss), net of income tax (268,350 ) 72,388
Total permanent stockholders' equity 1,619,972 2,082,512
Total liabilities and temporary and permanent stockholders' equity $ 15,042,143 $ 16,123,223
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- ---
Condensed Consolidated Statements of Income
(Unaudited)
Three months ended September 30,
2022 2021
(In thousands, except per-share amounts)
Revenues:
Direct premiums $ 810,079 $ 785,277
Ceded premiums (404,870 ) (401,295 )
Net premiums 405,209 383,982
Commissions and fees 225,468 269,796
Net investment income 24,346 20,000
Investment gains (losses) (2,699 ) 1,410
Other, net 20,965 18,051
Total revenues 673,289 693,239
Benefits and expenses:
Benefits and claims 171,293 183,425
Amortization of deferred policy acquisition costs 90,925 62,214
Sales commissions 105,915 129,268
Insurance expenses 57,552 51,901
Insurance commissions 7,666 8,412
Contract acquisition costs 13,446 23,524
Interest expense 6,802 7,529
Goodwill impairment loss 60,000 -
Other operating expenses 73,791 79,864
Total benefits and expenses 587,390 546,137
Income before income taxes 85,899 147,102
Income taxes 34,092 35,663
Net income $ 51,807 $ 111,439
Net income attributable to noncontrolling interests - (1,017 )
Net income attributable to Primerica, Inc. $ 51,807 $ 112,456
Earnings per share attributable to common stockholders:
Basic earnings per share $ 1.38 $ 2.83
Diluted earnings per share $ 1.37 $ 2.82
Weighted-average shares used in computing <br>  earnings per share:
Basic 37,438 39,561
Diluted 37,541 39,679
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- --- --- --- ---
Consolidated Adjusted Operating Results Reconciliation
(Unaudited – in thousands, except per share amounts)
Three months ended September 30,
2022 2021 % Change
Total revenues $ 673,289 $ 693,239 (3 )%
Less: Investment gains (losses) (2,699 ) 1,410
Less: 10% deposit asset MTM included in NII (68 ) (640 )
Adjusted operating revenues $ 676,056 $ 692,469 (2 )%
Income before income taxes $ 85,899 $ 147,102 (42 )%
Less: Investment gains (losses) (2,699 ) 1,410
Less: 10% deposit asset MTM included in NII (68 ) (640 )
Less: e-TeleQuote transaction-related expenses - (10,027 )
Less: Equity comp for awards exchanged during acquisition - 1,004
Less: Noncontrolling interest - (1,465 )
Less: Goodwill impairment (60,000 ) -
Adjusted operating income before income taxes $ 148,666 $ 156,820 (5 )%
Net income $ 51,807 $ 111,439 (54 )%
Less: Investment gains (losses) (2,699 ) 1,410
Less: 10% deposit asset MTM included in NII (68 ) (640 )
Less: e-TeleQuote transaction-related expenses - (10,027 )
Less: Equity comp for awards exchanged during acquisition - 1,004
Less: Noncontrolling interest - (1,465 )
Less: Goodwill impairment (60,000 ) -
Less: Tax impact of preceding items 647 2,449
Adjusted net operating income $ 113,927 $ 118,708 (4 )%
Diluted earnings per share (1) $ 1.37 $ 2.82 (51 )%
Less: Net after-tax impact of operating adjustments (1.65 ) (0.16 )
Diluted adjusted operating earnings per share (1) $ 3.02 $ 2.98 1 %

(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 September 30,
2022 2021 % Change
Direct premiums $ 804,586 $ 779,490 3 %
Less: Premiums ceded to IPO coinsurers 226,869 241,439
Adjusted direct premiums 577,717 538,051 7 %
Ceded premiums (403,416 ) (399,835 )
Less: Premiums ceded to IPO coinsurers (226,869 ) (241,439 )
Other ceded premiums (176,548 ) (158,396 )
Net premiums $ 401,169 $ 379,655 6 %
SENIOR HEALTH SEGMENT
--- --- --- --- --- --- --- --- --- ---
Adjusted Operating Results Reconciliation
(Unaudited – in thousands)
Three months ended September 30,
2022 2021 % Change
Loss before income taxes $ (63,723 ) $ (8,490 ) 651 %
Less: e-TeleQuote transaction-related costs - (417 )
Less: Noncontrolling interest - (1,465 )
Less: Goodwill impairment (60,000 ) -
Adjusted operating loss before taxes $ (3,723 ) $ (6,608 ) (44 )%
CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT
--- --- --- --- --- --- --- --- --- ---
Adjusted Operating Results Reconciliation
(Unaudited – in thousands)
Three months ended September 30,
2022 2021 % Change
Total revenues $ 26,578 $ 35,515 (25 )%
Less: Investment gains (losses) (2,699 ) 1,410
Less: 10% deposit asset MTM included in NII (68 ) (640 )
Adjusted operating revenues $ 29,345 $ 34,745 (16 )%
Loss before income taxes $ (20,519 ) $ (21,365 ) (4 )%
Less: Investment gains (losses) (2,699 ) 1,410
Less: 10% deposit asset MTM included in NII (68 ) (640 )
Less: e-TeleQuote transaction-related expenses - (9,610 )
Less: Equity comp for awards exchanged during acquisition - 1,004
Adjusted operating loss before income taxes $ (17,752 ) $ (13,529 ) 31 %
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- --- --- ---
Adjusted Stockholders' Equity Reconciliation
(Unaudited – in thousands)
September 30, 2022 December 31, 2021 % Change
Stockholders' equity (1) $ 1,619,972 $ 2,082,512 (22 )%
Less: Unrealized net investment gains (losses) recorded <br>              in stockholders' equity, net of income tax (252,913 ) 63,777
Adjusted stockholders' equity (1) $ 1,872,885 $ 2,018,735 (7 )%

(1) Reflects the Company’s permanent stockholders’ equity and does not include temporary stockholders’ equity.

EX-99.2

Exhibit 99.2

img165194719_0.jpg

Supplemental Financial Information

Third Quarter 2022

Table of Contents PRIMERICA, INC.<br><br>Financial Supplement
Page
--- ---
Preface, definition of Non-GAAP financial measures 3
Condensed balance sheets and reconciliation of balance sheet non-GAAP to GAAP financial measures 4
Financial results and other statistical data 5
Statements of income 6
Reconciliation of statement of income GAAP to non-GAAP financial measures 7-8
Segment operating results
Term Life Insurance segment - financial results, key statistics, and financial analysis 9-10
Investment and Savings Products segment - financial results, financial analysis, and key statistics 11-12
Senior Health segment - financial results, financial analysis, and key statistics 13
Corporate & Other Distributed Products segment - financial results 14
Investment portfolio 15-17
Five-year historical key statistics 18

This document may contain forward-looking statements and information. Additional information and factors that could cause actual results to differ materially from any forward-looking statements or information in this document is available in our Form 10-K for the year ended December 31, 2021.

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

Third Quarter 2022

This document is a financial supplement to our third 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 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, which were ultimately redeemed at zero value. 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.

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Condensed Balance Sheets and Reconciliation of Balance Sheet Non-GAAP to GAAP Financial Measures PRIMERICA, INC.<br><br>Financial Supplement
(Dollars in thousands) Dec 31,<br>2020 Mar 31,<br>2021 Jun 30,<br>2021 Sep 30,<br>2021 Dec 31,<br>2021 Mar 31,<br>2022 Jun 30,<br>2022 Sep 30,<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 $ 2,981,598
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 1,433,760
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 4,415,358
Due from reinsurers 4,273,904 4,345,483 4,239,510 4,278,322 4,268,419 4,240,481 4,069,039 4,033,897
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 3,049,102
Goodwill — — — 224,180 179,154 179,154 187,707 127,707
Other assets 899,165 921,236 925,621 1,330,620 1,274,946 1,242,457 1,219,847 1,209,471
Separate account assets 2,659,520 2,638,901 2,745,827 2,672,606 2,799,992 2,696,891 2,358,987 2,206,608
Total assets $ 14,905,286 $ 15,113,858 $ 15,519,871 $ 15,816,135 $ 16,123,222 $ 15,934,813 $ 15,329,005 $ 15,042,143
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 $ 7,314,688
Other policy liabilities 984,612 1,020,349 977,373 1,054,925 1,103,642 1,108,047 999,789 1,005,195
Income taxes 223,496 235,233 204,197 260,264 241,311 217,326 164,971 129,347
Other liabilities 618,874 633,719 641,025 668,643 669,631 683,865 646,660 659,582
Debt obligations 374,415 374,511 499,606 514,702 607,102 598,303 592,504 592,705
Surplus note 1,345,772 1,361,648 1,368,194 1,375,559 1,378,585 1,389,811 1,415,457 1,433,293
Payable under securities lending 72,154 87,190 80,613 105,264 94,529 93,171 96,603 80,754
Separate account liabilities 2,659,520 2,638,901 2,745,827 2,672,606 2,799,992 2,696,891 2,358,987 2,206,608
Total liabilities 13,069,401 13,236,666 13,501,107 13,709,563 14,033,442 14,004,011 13,551,249 13,422,171
Redeemable noncontrolling interest $ — $ — $ — $ 7,631 $ 7,271 $ 4,616 $ 2,233 $ (0 )
Stockholders’ equity:
Common stock (0.01 par value) (1) 393 394 394 395 394 388 378 370
Paid-in capital (0 ) 8,138 12,880 17,454 5,224 (0 ) (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 1,887,952
Treasury stock — — — — — — — —
Accumulated other comprehensive income (loss), net:
128,128 77,053 96,990 84,701 63,775 (66,439 ) (175,746 ) (252,913 )
1,578 6,570 13,960 8,068 8,611 11,769 2,648 (15,437 )
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 1,619,971
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 $ 15,042,143
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 $ 1,619,971
Less: Net unrealized gains (losses) 128,128 77,053 96,990 84,701 63,775 (66,439 ) (175,746 ) (252,913 )
Adjusted stockholders’ equity $ 1,707,757 $ 1,800,139 $ 1,921,774 $ 2,014,241 $ 2,018,735 $ 1,992,624 $ 1,951,270 $ 1,872,885
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 $ 1,951,270
Net Income attributable to Primerica, Inc. 100,084 97,872 128,162 112,456 34,868 81,418 107,947 51,807
Shareholder dividends (15,851 ) (18,620 ) (18,660 ) (18,671 ) (18,686 ) (21,645 ) (21,178 ) (20,571 )
Retirement of shares and warrants (13,426 ) (5,966 ) (521 ) (88 ) (18,829 ) (103,862 ) (127,963 ) (97,515 )
Net foreign currency translation adjustment 16,398 4,992 7,390 (5,892 ) 543 3,158 (9,121 ) (18,086 )
Other, net 5,864 14,105 5,264 4,662 6,597 14,820 8,961 5,979
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 $ 1,872,885
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 $ 3,028,511
General expenses deferred 9,510 10,558 10,055 9,248 9,062 9,519 9,321 9,726
Commission costs deferred 128,084 134,188 136,085 129,287 124,515 123,739 119,794 119,734
Amortization of deferred policy acquisition costs (53,342 ) (66,105 ) (54,286 ) (62,214 ) (68,575 ) (86,063 ) (85,379 ) (90,925 )
Foreign currency impact and other, net 12,984 3,884 4,324 (6,748 ) 858 3,390 (9,593 ) (17,943 )
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 $ 3,049,102

All values are in US Dollars.

(1) Outstanding common shares exclude restricted stock units.

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

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Financial Results and Other Statistical Data PRIMERICA, INC.<br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except per-share data) Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2021 Q1<br>2022 Q2<br>2022 Q3<br>2022 /#Change %<br>Change YTD <br>2021 YTD <br>2022 /#Change %<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 37,438,254 ) -5.4 % 39,516,193 38,341,729 ) -3.0 %
Net income attributable to Primerica, Inc. $ 97,872 $ 128,162 $ 112,456 $ 34,868 $ 81,418 $ 107,947 $ 51,807 ) -53.9 % $ 338,489 $ 241,172 ) -28.8 %
Less income attributable to unvested participating securities (417 ) (525 ) (458 ) (141 ) (337 ) (477 ) (244 ) 46.7 % (1,403 ) (1,067 ) 23.9 %
Net income used in computing basic EPS $ 97,455 $ 127,636 $ 111,997 $ 34,728 $ 81,081 $ 107,470 $ 51,563 ) -54.0 % $ 337,086 $ 240,105 ) -28.8 %
Basic earnings per share $ 2.47 $ 3.23 $ 2.83 $ 0.88 $ 2.07 $ 2.80 $ 1.38 ) -51.4 % $ 8.53 $ 6.26 ) -26.6 %
Adjusted net operating income $ 97,129 $ 129,355 $ 118,708 $ 117,007 $ 83,333 $ 110,701 $ 113,928 ) -4.0 % $ 345,193 $ 307,962 ) -10.8 %
Less operating income attributable to unvested participating securities (414 ) (530 ) (484 ) (472 ) (345 ) (490 ) (537 ) ) -11.0 % (1,431 ) (1,362 ) 4.8 %
Adjusted net operating income used in computing basic operating EPS $ 96,715 $ 128,825 $ 118,224 $ 116,535 $ 82,988 $ 110,212 $ 113,391 ) -4.1 % $ 343,762 $ 306,599 ) -10.8 %
Basic adjusted operating income per share $ 2.45 $ 3.26 $ 2.99 $ 2.95 $ 2.12 $ 2.87 $ 3.03 1.3 % $ 8.70 $ 8.00 ) -8.1 %
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 37,438,254 ) -5.4 % 39,516,193 38,341,729 ) -3.0 %
Dilutive impact of contingently issuable shares 124,505 121,595 117,923 122,929 110,941 115,058 102,810 ) -12.8 % 121,341 109,603 ) -9.7 %
Shares used to calculate diluted EPS 39,580,453 39,652,286 39,678,709 39,691,399 39,331,944 38,500,578 37,541,064 ) -5.4 % 39,637,534 38,451,332 ) -3.0 %
Net income attributable to Primerica, Inc. $ 97,872 $ 128,162 $ 112,456 $ 34,868 $ 81,418 $ 107,947 $ 51,807 ) -53.9 % $ 338,489 $ 241,172 ) -28.8 %
Less income attributable to unvested participating securities (416 ) (524 ) (457 ) (140 ) (337 ) (476 ) (244 ) 46.7 % (1,399 ) (1,065 ) 23.9 %
Net income used in computing diluted EPS $ 97,456 $ 127,638 $ 111,998 $ 34,728 $ 81,081 $ 107,471 $ 51,563 ) -54.0 % $ 337,090 $ 240,107 ) -28.8 %
Diluted earnings per share $ 2.46 $ 3.22 $ 2.82 $ 0.87 $ 2.06 $ 2.79 $ 1.37 ) -51.3 % $ 8.50 $ 6.24 ) -26.6 %
Adjusted net operating income $ 97,129 $ 129,355 $ 118,708 $ 117,007 $ 83,333 $ 110,701 $ 113,928 ) -4.0 % $ 345,193 $ 307,962 ) -10.8 %
Less operating income attributable to unvested participating securities (413 ) (529 ) (483 ) (471 ) (344 ) (488 ) (536 ) ) -11.0 % (1,427 ) (1,359 ) 4.7 %
Adjusted net operating income used in computing diluted operating EPS $ 96,717 $ 128,827 $ 118,225 $ 116,536 $ 82,988 $ 110,213 $ 113,392 ) -4.1 % $ 343,766 $ 306,602 ) -10.8 %
Diluted adjusted operating income per share $ 2.44 $ 3.25 $ 2.98 $ 2.94 $ 2.11 $ 2.86 $ 3.02 1.4 % $ 8.67 $ 7.97 ) -8.1 %
YOY Q3 YOY YTD
Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2021 Q1<br>2022 Q2<br>2022 Q3<br>2022 /#Change %<br>Change YTD <br>2021 YTD <br>2022 /#Change %<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 $ 1,697,748 ) -17.5 % $ 1,954,456 $ 1,850,983 ) -5.3 %
Average adjusted stockholders' equity (1) $ 1,753,948 $ 1,860,956 $ 1,968,007 $ 2,016,488 $ 2,005,679 $ 1,971,947 $ 1,912,077 ) -2.8 % $ 1,860,971 $ 1,963,235 5.5 %
Net income attributable to Primerica, Inc. return on stockholders' equity 21.1 % 26.3 % 21.8 % 6.7 % 16.2 % 23.3 % 12.2 % % nm 23.1 % 17.4 % % nm
Net income attributable to Primerica, Inc. return on adjusted stockholders' equity 22.3 % 27.5 % 22.9 % 6.9 % 16.2 % 21.9 % 10.8 % % nm 24.3 % 16.4 % % nm
Adjusted net operating income return on adjusted stockholders' equity 22.2 % 27.8 % 24.1 % 23.2 % 16.6 % 22.5 % 23.8 % % nm 24.7 % 20.9 % % nm
Capital Structure
Debt-to-capital (2) 16.6 % 19.8 % 19.7 % 22.6 % 23.7 % 25.0 % 26.8 % % nm 19.7 % 26.8 % % nm
Debt-to-capital, excluding AOCI (2) 17.3 % 20.8 % 20.4 % 23.2 % 23.2 % 23.3 % 23.9 % % nm 20.4 % 23.9 % % 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 2.7 x x nm 2.1 x 2.7 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 2.4 x x nm 2.2 x 2.4 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 37,026,600 ) -6.2 % 39,470,748 37,026,600 ) -6.2 %
Adjusted stockholders' equity per share $ 45.67 $ 48.72 $ 51.03 $ 51.28 $ 51.42 $ 51.66 $ 50.58 ) -0.9 % $ 51.03 $ 50.58 ) -0.9 %
Financial Strength Ratings - Primerica Life Insurance Co
Moody's A1 A1 A1 A1 A1 A1 A1 nm nm nm nm nm nm
S&P AA- AA- AA- AA- AA- AA- AA- nm nm nm nm nm nm
A.M. Best A+ 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 Baa1 nm nm nm nm nm nm
S&P A- A- A- A- A- A- A- nm nm nm nm nm nm
A.M. Best a- 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.

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

5 of 18

Statements of Income PRIMERICA, INC.<br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2021 Q1<br>2022 Q2<br>2022 Q3<br>2022 Change %<br>Change YTD <br>2021 YTD <br>2022 Change %<br>Change
Statement of Income
Revenues:
Direct premiums $ 762,227 $ 780,299 $ 785,277 $ 794,344 $ 798,666 $ 808,894 $ 810,079 3.2 % $ 2,327,804 $ 2,417,639 3.9 %
Ceded premiums (395,973 ) (413,850 ) (401,295 ) (405,147 ) (399,885 ) (419,048 ) (404,870 ) ) -0.9 % (1,211,117 ) (1,223,804 ) ) -1.0 %
Net premiums 366,254 366,450 383,983 389,197 398,781 389,846 405,209 5.5 % 1,116,687 1,193,836 6.9 %
Net investment income 20,052 20,535 20,000 20,001 18,905 21,284 24,346 21.7 % 60,588 64,535 6.5 %
Commissions and fees:
Sales-based (1) 98,112 104,716 95,229 103,451 103,242 88,701 67,962 ) -28.6 % 298,057 259,905 ) -12.8 %
Asset-based (2) 101,241 108,490 113,558 118,015 113,112 108,101 107,483 ) -5.3 % 323,288 328,696 1.7 %
Account-based (3) 21,120 21,848 21,456 22,514 21,541 22,592 22,910 6.8 % 64,424 67,043 4.1 %
Other commissions and fees 13,571 15,635 39,553 44,304 13,905 21,294 27,113 ) -31.5 % 68,759 62,312 ) -9.4 %
Investment (losses) gains 1,766 701 1,410 1,995 751 (1,892 ) (2,699 ) ) nm 3,876 (3,841 ) ) nm
Other, net 15,595 16,313 18,051 24,616 20,988 18,755 20,964 16.1 % 49,958 60,708 21.5 %
Total revenues 637,711 654,687 693,240 724,094 691,225 668,681 673,288 ) -2.9 % 1,985,638 2,033,194 2.4 %
Benefits and expenses:
Benefits and claims 183,789 168,347 183,425 187,192 187,069 153,257 171,293 ) -6.6 % 535,561 511,619 ) -4.5 %
Amortization of DAC 66,105 54,286 62,214 68,575 86,063 85,379 90,925 46.1 % 182,604 262,367 43.7 %
Insurance commissions 8,740 8,838 8,412 8,542 7,721 7,594 7,666 ) -8.9 % 25,990 22,982 ) -11.6 %
Insurance expenses 48,766 48,579 51,901 53,359 59,509 59,461 57,552 10.9 % 149,246 176,522 18.3 %
Sales commissions:
Sales-based (1) 68,594 73,629 67,745 77,390 74,606 63,403 48,775 ) -28.0 % 209,969 186,784 ) -11.0 %
Asset-based (2) 46,866 50,488 53,233 55,614 53,366 50,876 51,549 ) -3.2 % 150,587 155,791 3.5 %
Other sales commissions 6,434 7,185 8,290 6,839 5,952 5,484 5,592 ) -32.5 % 21,908 17,028 ) -22.3 %
Interest expense 7,145 7,141 7,529 8,804 6,853 6,814 6,802 ) -9.7 % 21,814 20,469 ) -6.2 %
Contract acquistion costs (4) — — 23,524 29,264 20,649 19,384 13,446 ) -42.8 % 23,524 53,479 127.3 %
Other operating expenses 72,964 66,730 79,866 77,292 86,434 79,728 73,790 ) -7.6 % 219,559 239,952 9.3 %
Goodwill impairment — — — 76,000 — — 60,000 #DIV/0! — 60,000 #DIV/0!
Loss on extinguishment of debt — — — 8,927 — — — #DIV/0! — — #DIV/0!
Total benefits and expenses 509,403 485,222 546,138 657,797 588,222 531,381 587,389 7.6 % 1,540,763 1,706,992 10.8 %
Income before income taxes 128,308 169,465 147,102 66,296 103,003 137,300 85,899 ) -41.6 % 444,875 326,203 ) -26.7 %
Income taxes 30,437 41,304 35,663 31,788 24,239 31,737 34,092 ) -4.4 % 107,403 90,069 ) -16.1 %
Net income 97,872 128,162 111,439 34,508 78,764 105,563 51,807 ) -53.5 % 337,472 236,134 ) -30.0 %
Net income attributable to noncontrolling interests — — (1,017 ) (360 ) (2,654 ) (2,384 ) — 100.0 % (1,017 ) (5,038 ) ) nm
Net Income attributable to Primerica, Inc. $ 97,872 $ 128,162 $ 112,456 $ 34,868 $ 81,418 $ 107,947 $ 51,807 ) -53.9 % $ 338,489 $ 241,172 ) -28.8 %
Income Before Income Taxes by Segment
Term Life $ 88,236 $ 116,778 $ 107,589 $ 102,019 $ 91,577 $ 119,878 $ 111,763 3.9 % $ 312,602 $ 323,218 3.4 %
Investment & Savings Products 63,363 71,154 69,369 70,699 64,560 58,975 58,377 ) -15.8 % 203,886 181,912 ) -10.8 %
Senior Health — — (8,489 ) (76,561 ) (23,085 ) (16,150 ) (63,723 ) ) nm (8,489 ) (102,959 ) ) nm
Corporate & Other Distributed Products (23,290 ) (18,467 ) (21,367 ) (29,861 ) (30,048 ) (25,403 ) (20,518 ) 4.0 % (63,124 ) (75,969 ) ) -20.3 %
Income before income taxes $ 128,308 $ 169,465 $ 147,102 $ 66,296 $ 103,003 $ 137,300 $ 85,899 ) -41.6 % $ 444,875 $ 326,203 ) -26.7 %

All values are in US Dollars.

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

(2) Asset-based - revenues or commission expenses relating to the value of assets in client accounts for which we earn ongoing service, distribution, and other fees.

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

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

6 of 18

Reconciliation of Statement of Income GAAP to Non-GAAP Financial Measures PRIMERICA, INC.<br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2021 Q1<br>2022 Q2<br>2022 Q3<br>2022 Change %<br>Change YTD <br>2021 YTD <br>2022 Change %<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 $ 804,586 3.2 % $ 2,310,504 $ 2,401,293 3.9 %
Less: Premiums ceded to IPO Coinsurers 249,944 246,874 241,439 239,828 234,614 231,805 226,869 ) -6.0 % 738,257 693,288 ) -6.1 %
Term Life adjusted direct premiums $ 506,570 $ 527,626 $ 538,051 $ 549,496 $ 558,640 $ 571,648 $ 577,717 7.4 % $ 1,572,247 $ 1,708,005 8.6 %
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 ) $ (403,416 ) ) -0.9 % $ (1,206,413 ) $ (1,219,268 ) ) -1.1 %
Less: Premiums ceded to IPO Coinsurers (249,944 ) (246,874 ) (241,439 ) (239,828 ) (234,614 ) (231,805 ) (226,869 ) 6.0 % (738,257 ) (693,288 ) 6.1 %
Term Life other ceded premiums $ (144,606 ) $ (165,154 ) $ (158,397 ) $ (163,356 ) $ (163,832 ) $ (185,601 ) $ (176,548 ) ) -11.5 % $ (468,156 ) $ (525,981 ) ) -12.4 %
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 $ 24,346 21.7 % $ 60,588 $ 64,535 6.5 %
Less: MTM investment adjustments (793 ) (170 ) (640 ) (899 ) (2,099 ) (1,254 ) (68 ) nm nm (1,603 ) (3,421 ) nm nm
Adjusted net investment income $ 20,845 $ 20,705 $ 20,640 $ 20,900 $ 21,004 $ 22,538 $ 24,414 18.3 % $ 62,191 $ 67,956 9.3 %
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 $ 73,790 ) -7.6 % $ 219,559 $ 239,952 9.3 %
Less: eTeleQuote transaction-related costs — 2,109 10,027 812 900 (2,892 ) — nm nm 12,136 (1,992 ) nm nm
Less: Equity comp for awards exchanged during acquisition — — (1,004 ) (739 ) 256 3,328 — nm nm (1,004 ) 3,584 nm nm
Adjusted other operating expenses $ 72,964 $ 64,620 $ 70,843 $ 77,219 $ 85,278 $ 79,292 $ 73,790 4.2 % $ 208,427 $ 238,360 14.4 %
Reconciliation from Total Revenues to Adjusted Operating Revenues
Total revenues $ 637,711 $ 654,687 $ 693,240 $ 724,094 $ 691,225 $ 668,681 $ 673,288 ) -2.9 % $ 1,985,638 $ 2,033,194 2.4 %
Less: Investment gains/(losses) 1,766 701 1,410 1,995 751 (1,892 ) (2,699 ) nm nm 3,876 (3,841 ) nm nm
Less: MTM investment adjustments (793 ) (170 ) (640 ) (899 ) (2,099 ) (1,254 ) (68 ) nm nm (1,603 ) (3,421 ) nm nm
Adjusted operating revenues $ 636,738 $ 654,156 $ 692,470 $ 722,998 $ 692,573 $ 671,827 $ 676,056 ) -2.4 % $ 1,983,365 $ 2,040,456 2.9 %
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 $ 85,899 ) -41.6 % $ 444,875 $ 326,203 ) -26.7 %
Less: Investment gains/(losses) 1,766 701 1,410 1,995 751 (1,892 ) (2,699 ) nm nm 3,876 (3,841 ) nm nm
Less: MTM investment adjustments (793 ) (170 ) (640 ) (899 ) (2,099 ) (1,254 ) (68 ) nm nm (1,603 ) (3,421 ) nm nm
Less: eTeleQuote transaction-related costs — (2,109 ) (10,027 ) (812 ) (900 ) 2,892 — nm nm (12,136 ) 1,992 nm nm
Less: Equity comp for awards exchanged during acquisition — — 1,004 739 (256 ) (3,328 ) — nm nm 1,004 (3,584 ) nm nm
Less: Noncontrolling interest before income taxes — — (1,465 ) (540 ) (3,668 ) (3,129 ) — nm nm (1,465 ) (6,797 ) nm nm
Less: Goodwill impairment — — — (76,000 ) — — (60,000 ) nm nm — (60,000 ) 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 $ 148,667 ) -5.2 % $ 455,198 $ 401,853 ) -11.7 %
Reconciliation from Net Income to Adjusted Net Operating Income
Net income $ 97,872 $ 128,162 $ 111,439 $ 34,508 $ 78,764 $ 105,563 $ 51,807 ) -53.5 % $ 337,472 $ 236,134 ) -30.0 %
Less: Investment gains/(losses) 1,766 701 1,410 1,995 751 (1,892 ) (2,699 ) nm nm 3,876 (3,841 ) nm nm
Less: MTM investment adjustments (793 ) (170 ) (640 ) (899 ) (2,099 ) (1,254 ) (68 ) nm nm (1,603 ) (3,421 ) nm nm
Less: e-TeleQuote transaction-related costs — (2,109 ) (10,027 ) (812 ) (900 ) 2,892 — nm nm (12,136 ) 1,992 nm nm
Less: Equity comp for awards exchanged during acquisition — — 1,004 739 (256 ) (3,328 ) — nm nm 1,004 (3,584 ) nm nm
Less: Noncontrolling interest before income taxes — — (1,465 ) (540 ) (3,668 ) (3,129 ) — nm nm (1,465 ) (6,797 ) nm nm
Less: Goodwill impairment — — — (76,000 ) — — (60,000 ) nm nm — (60,000 ) 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 1,573 647 nm nm 2,602 3,823 nm nm
Adjusted net operating income $ 97,129 $ 129,355 $ 118,708 $ 117,007 $ 83,333 $ 110,701 $ 113,928 ) -4.0 % $ 345,193 $ 307,962 ) -10.8 %

All values are in US Dollars.

7 of 18

Reconciliation of Statement of Income GAAP to Non-GAAP Financial Measures PRIMERICA, INC.<br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2021 Q1<br>2022 Q2<br>2022 Q3<br>2022 Change %<br>Change YTD <br>2021 YTD <br>2022 Change %<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 ) $ (63,723 ) ) nm $ (8,489 ) $ (102,959 ) ) nm
Less: e-TeleQuote transaction-related costs na na (417 ) (389 ) (399 ) (66 ) — nm nm (417 ) (465 ) nm nm
Less: Noncontrolling interest na na (1,465 ) (540 ) (3,668 ) (3,129 ) — nm nm (1,465 ) (6,797 ) nm nm
Less: Goodwill impairment na na — (76,000 ) — — (60,000 ) nm nm — (60,000 ) nm nm
Adjusted operating income before income taxes na na $ (6,608 ) $ 369 $ (19,018 ) $ (12,955 ) $ (3,723 ) 43.7 % $ (6,608 ) $ (35,696 ) ) nm
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 ) $ (20,518 ) 4.0 % $ (63,124 ) $ (75,969 ) ) -20.3 %
Less: Investment gains/(losses) 1,766 701 1,410 1,995 751 (1,892 ) (2,699 ) nm nm 3,876 (3,841 ) nm nm
Less: MTM investment adjustments (793 ) (170 ) (640 ) (899 ) (2,099 ) (1,254 ) (68 ) nm nm (1,603 ) (3,421 ) nm nm
Less: e-TeleQuote transaction-related costs — (2,109 ) (9,610 ) (423 ) (501 ) 2,958 — nm nm (11,719 ) 2,458 nm nm
Less: Equity comp for awards exchanged during acquistion — — 1,004 739 (256 ) (3,328 ) — nm nm 1,004 (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 ) $ (17,750 ) ) -31.2 % $ (54,682 ) $ (67,581 ) ) -23.6 %

All values are in US Dollars.

8 of 18

Term Life Insurance - Financial Results and Analysis PRIMERICA, INC.<br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2021 Q1<br>2022 Q2<br>2022 Q3<br>2022 Change %<br>Change YTD <br>2021 YTD <br>2022 Change %<br>Change
Term Life Insurance Income Before Income Taxes
Revenues:
Direct Premiums $ 756,514 $ 774,500 $ 779,490 $ 789,325 $ 793,254 $ 803,453 $ 804,586 3.2 % $ 2,310,504 $ 2,401,293 3.9 %
Premiums ceded to IPO coinsurers (1) (249,944 ) (246,874 ) (241,439 ) (239,828 ) (234,614 ) (231,805 ) (226,869 ) 6.0 % (738,257 ) (693,288 ) 6.1 %
Adjusted direct premiums (2) 506,570 527,626 538,051 549,496 558,640 571,648 577,717 7.4 % 1,572,247 1,708,005 8.6 %
Other ceded premiums (3) (144,606 ) (165,154 ) (158,397 ) (163,356 ) (163,832 ) (185,601 ) (176,548 ) ) -11.5 % (468,156 ) (525,981 ) ) -12.4 %
Net premiums 361,964 362,472 379,654 386,140 394,808 386,047 401,169 5.7 % 1,104,090 1,182,024 7.1 %
Allocated net investment income 8,253 8,751 9,320 10,162 11,445 12,286 13,241 42.1 % 26,324 36,973 40.5 %
Other, net 11,810 12,315 12,476 12,369 12,175 12,374 13,419 7.6 % 36,601 37,968 3.7 %
Revenues 382,028 383,537 401,450 408,672 418,428 410,707 427,830 6.6 % 1,167,016 1,256,965 7.7 %
Benefits and expenses:
Benefits and claims 178,963 162,488 179,696 182,749 182,903 148,977 167,356 ) -6.9 % 521,148 499,237 ) -4.2 %
Amortization of DAC 62,584 52,235 59,287 67,344 81,883 79,668 88,275 48.9 % 174,106 249,826 43.5 %
Insurance commissions 4,869 4,785 4,345 4,458 3,793 3,854 3,964 ) -8.8 % 13,999 11,612 ) -17.1 %
Insurance expenses 47,375 47,252 50,534 52,102 58,272 58,329 56,471 11.7 % 145,160 173,072 19.2 %
Benefits and expenses 293,792 266,760 293,862 306,652 326,851 290,829 316,066 7.6 % 854,414 933,747 9.3 %
Income before income taxes $ 88,236 $ 116,778 $ 107,589 $ 102,019 $ 91,577 $ 119,878 $ 111,763 3.9 % $ 312,602 $ 323,218 3.4 %
Total Term Life Insurance - Financial Analysis
Post-IPO direct premiums (4) $ 401,106 $ 420,865 $ 431,022 $ 440,490 $ 448,657 $ 460,061 $ 465,354 8.0 % $ 1,252,993 $ 1,374,072 9.7 %
Pre-IPO direct premiums (5) 355,408 353,635 348,468 348,834 344,597 343,392 339,232 ) -2.7 % 1,057,511 1,027,221 ) -2.9 %
Total direct premiums $ 756,514 $ 774,500 $ 779,490 $ 789,325 $ 793,254 $ 803,453 $ 804,586 3.2 % $ 2,310,504 $ 2,401,293 3.9 %
Premiums ceded to IPO coinsurers $ 249,944 $ 246,874 $ 241,439 $ 239,828 $ 234,614 $ 231,805 $ 226,869 ) -6.0 % $ 738,257 $ 693,288 ) -6.1 %
% of Pre-IPO direct premiums 70.3 % 69.8 % 69.3 % 68.8 % 68.1 % 67.5 % 66.9 % nm nm 69.8 % 67.5 % nm nm
Benefits and claims, net (6) $ 323,569 $ 327,642 $ 338,093 $ 346,105 $ 346,735 $ 334,578 $ 343,904 1.7 % $ 989,304 $ 1,025,217 3.6 %
% of adjusted direct premiums 63.9 % 62.1 % 62.8 % 63.0 % 62.1 % 58.5 % 59.5 % nm nm 62.9 % 60.0 % nm nm
DAC amortization & insurance commissions $ 67,454 $ 57,020 $ 63,632 $ 71,802 $ 85,676 $ 83,523 $ 92,239 45.0 % $ 188,106 $ 261,438 39.0 %
% of adjusted direct premiums 13.3 % 10.8 % 11.8 % 13.1 % 15.3 % 14.6 % 16.0 % nm nm 12.0 % 15.3 % nm nm
Insurance expenses, net (7) $ 35,565 $ 34,937 $ 38,057 $ 39,732 $ 46,097 $ 45,955 $ 43,052 13.1 % $ 108,559 $ 135,104 24.5 %
% of adjusted direct premiums 7.0 % 6.6 % 7.1 % 7.2 % 8.3 % 8.0 % 7.5 % nm nm 6.9 % 7.9 % nm nm
Total Term Life income before income taxes $ 88,236 $ 116,778 $ 107,589 $ 102,019 $ 91,577 $ 119,878 $ 111,763 3.9 % $ 312,602 $ 323,218 3.4 %
Term Life operating margin (8) 17.4 % 22.1 % 20.0 % 18.6 % 16.4 % 21.0 % 19.3 % nm nm 19.9 % 18.9 % nm nm

All values are in US Dollars.

(1) Premiums ceded to IPO coinsurers - premiums ceded to IPO coinsurers under the IPO coinsurance transactions excluding any reimbursements from the IPO coinsurers on previously existing reinsurance agreements.

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

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

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

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

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

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

(8) Term Life operating margin - Term Life operating income before income taxes as a percentage of adjusted direct premiums.

9 of 18

Term Life Insurance - Key Statistics PRIMERICA, INC.<br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2021 Q1<br>2022 Q2<br>2022 Q3<br>2022 /#Change %<br>Change YTD <br>2021 YTD <br>2022 /#Change %<br>Change
Key Statistics
Life-insurance licensed sales force, beginning of period 134,907 132,030 132,041 130,023 129,515 130,206 132,149 0.1 % 134,907 129,515 ) -4.0 %
10,833 10,112 9,381 9,296 9,983 11,529 12,518 33.4 % 30,326 34,030 12.2 %
(13,710 ) (10,101 ) (11,399 ) (9,804 ) (9,292 ) (9,586 ) (10,354 ) 9.2 % (35,210 ) (29,232 ) 17.0 %
Life-insurance licensed sales force, end of period 132,030 132,041 130,023 129,515 130,206 132,149 134,313 3.3 % 130,023 134,313 3.3 %
Estimated annualized issued term life premium (mills) (1):
$ 74.5 $ 82.6 $ 70.7 $ 69.4 $ 65.5 $ 72.3 $ 68.0 ) -3.8 % $ 227.8 $ 205.9 ) -9.6 %
18.0 20.3 19.5 19.1 18.4 20.6 19.5 ) -0.3 % 57.9 58.5 1.0 %
Total estimated annualized issued term life premium $ 92.5 $ 103.0 $ 90.2 $ 88.5 $ 83.8 $ 92.9 $ 87.5 ) -3.0 % $ 285.7 $ 264.3 ) -7.5 %
Issued term life policies 82,667 90,071 75,914 75,203 71,324 76,946 71,104 ) -6.3 % 248,652 219,374 ) -11.8 %
Estimated average annualized issued term life premium per policy (1)(2) $ 901 $ 917 $ 931 $ 923 $ 918 $ 940 $ 957 2.8 % $ 916 $ 938 2.4 %
Term life face amount in-force, beginning of period (mills) $ 858,818 $ 869,643 $ 886,519 $ 894,018 $ 903,404 $ 909,632 $ 914,438 3.1 % $ 858,818 $ 903,404 5.2 %
26,643 29,981 26,219 25,678 24,773 27,651 26,049 ) -0.6 % 82,843 78,472 ) -5.3 %
(17,240 ) (14,706 ) (16,241 ) (16,610 ) (19,787 ) (19,298 ) (21,033 ) ) -29.5 % (48,187 ) (60,117 ) ) -24.8 %
1,422 1,602 (2,480 ) 319 1,242 (3,547 ) (6,669 ) ) nm 544 (8,974 ) ) nm
Term life face amount in-force, end of period $ 869,643 $ 886,519 $ 894,018 $ 903,404 $ 909,632 $ 914,438 $ 912,785 2.1 % $ 894,018 $ 912,785 2.1 %

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>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2021 Q1<br>2022 Q2<br>2022 Q3<br>2022 Change %<br>Change YTD <br>2021 YTD <br>2022 Change %<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 $ 67,962 ) -28.6 % $ 298,057 $ 259,905 ) -12.8 %
Asset-based 101,241 108,490 113,558 118,015 113,112 108,101 107,483 ) -5.3 % 323,288 328,696 1.7 %
Account-based 21,120 21,848 21,456 22,514 21,541 22,592 22,910 6.8 % 64,424 67,043 4.1 %
Other, net 2,949 2,958 3,094 3,096 3,144 3,022 3,342 8.0 % 9,001 9,508 5.6 %
Revenues 223,422 238,012 233,337 247,076 241,039 222,416 201,697 ) -13.6 % 694,772 665,152 ) -4.3 %
Benefits and expenses:
Amortization of DAC 3,275 1,786 2,580 1,027 3,925 5,463 2,222 ) -13.8 % 7,641 11,610 52.0 %
Insurance commissions 3,572 3,747 3,747 3,839 3,646 3,450 3,419 ) -8.8 % 11,065 10,514 ) -5.0 %
Sales commissions:
Sales-based 68,594 73,629 67,745 77,390 74,606 63,403 48,775 ) -28.0 % 209,969 186,784 ) -11.0 %
Asset-based 46,866 50,488 53,233 55,614 53,366 50,876 51,549 ) -3.2 % 150,587 155,791 3.5 %
Other operating expenses 37,752 37,207 36,664 38,507 40,936 40,249 37,355 1.9 % 111,623 118,540 6.2 %
Benefits and expenses 160,060 166,858 163,968 176,377 176,479 163,440 143,320 ) -12.6 % 490,886 483,240 ) -1.6 %
Income before income taxes $ 63,363 $ 71,154 $ 69,369 $ 70,699 $ 64,560 $ 58,975 $ 58,377 ) -15.8 % $ 203,886 $ 181,912 ) -10.8 %
Financial Analysis
Fees paid based on client asset values (1) $ 6,964 $ 7,535 $ 7,891 $ 8,482 $ 8,037 $ 7,917 $ 7,980 1.1 % $ 22,390 $ 23,934 6.9 %
Fees paid based on fee-generating positions (2) 10,451 10,021 9,128 9,852 10,948 9,974 9,486 3.9 % 29,600 30,408 2.7 %
Other operating expenses 20,337 19,652 19,645 20,172 21,951 22,358 19,889 1.2 % 59,634 64,198 7.7 %
Total other operating expenses $ 37,752 $ 37,207 $ 36,664 $ 38,507 $ 40,936 $ 40,249 $ 37,355 1.9 % $ 111,623 $ 118,540 6.2 %
Sales-based net revenue as % of revenue-generating sales (3)
U.S. 1.29 % 1.28 % 1.25 % 1.11 % 1.20 % 1.27 % 1.23 % nm nm 1.27 % 1.23 % nm nm
Canada 1.05 % 0.96 % 0.92 % 0.65 % 1.00 % 0.78 % 0.32 % nm nm 0.98 % 0.83 % nm nm
Total 1.25 % 1.23 % 1.20 % 1.05 % 1.16 % 1.21 % 1.17 % nm nm 1.23 % 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 % 0.042 % nm nm 0.117 % 0.120 % nm nm
Canada 0.103 % 0.112 % 0.106 % 0.115 % 0.091 % 0.078 % 0.099 % nm nm 0.321 % 0.267 % nm nm
Total 0.049 % 0.050 % 0.050 % 0.052 % 0.047 % 0.046 % 0.051 % nm nm 0.149 % 0.143 % 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 $ 4.31 nm nm $ 12.03 $ 11.89 nm nm

All values are in US Dollars.

(1) Fees paid based on client asset values - administration fees on Canadian Segregated Funds and advisory fees on Managed Accounts that vary directly with client asset values.

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

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

(4) Asset-based net revenue - commission and fee revenue less administration and advisory fees paid to third-party providers and commissions paid to the sales force earned based on product account values including amortization of deferred acquisition costs for segregated funds.

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

(6) In whole dollars.

11 of 18

Investment and Savings Products - Key Statistics PRIMERICA, INC.<br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2021 Q1<br>2022 Q2<br>2022 Q3<br>2022 /#Change %<br>Change YTD <br>2021 YTD <br>2022 /#Change %<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 $ 931.8 ) -25.3 % $ 3,845.8 $ 3,381.8 ) -12.1 %
424.0 357.0 314.8 343.0 437.6 250.6 112.2 ) -64.3 % 1,095.8 800.5 ) -26.9 %
55.5 62.8 51.9 60.1 57.5 70.2 55.8 7.5 % 170.1 183.4 7.8 %
627.1 767.6 668.7 782.2 668.4 617.3 542.5 ) -18.9 % 2,063.3 1,828.2 ) -11.4 %
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 1,642.3 ) -28.1 % 7,175.0 6,193.9 ) -13.7 %
330.1 381.8 387.5 406.3 453.7 451.3 319.6 ) -17.5 % 1,099.3 1,224.7 11.4 %
79.8 82.9 76.3 78.9 82.2 97.5 157.9 106.9 % 239.0 337.7 41.3 %
75.1 52.2 43.5 48.2 67.3 51.3 41.6 ) -4.4 % 170.8 160.2 ) -6.2 %
Total product sales $ 2,853.5 $ 3,040.2 $ 2,790.4 $ 3,019.0 $ 3,065.4 $ 2,689.6 $ 2,161.5 ) -22.5 % $ 8,684.1 $ 7,916.4 ) -8.8 %
$ 503.9 $ 439.9 $ 391.1 $ 421.9 $ 519.9 $ 348.1 $ 270.2 ) -30.9 % $ 1,334.8 $ 1,138.2 ) -14.7 %
75.1 52.2 43.5 48.2 67.3 51.3 41.6 ) -4.4 % 170.8 160.2 ) -6.2 %
Total Canada product sales 579.0 492.0 434.6 470.0 587.1 399.4 311.8 ) -28.3 % 1,505.6 1,298.3 ) -13.8 %
Total U.S. product sales 2,274.5 2,548.2 2,355.8 2,549.0 2,478.2 2,290.1 1,849.7 ) -21.5 % 7,178.5 6,618.1 ) -7.8 %
Total product sales $ 2,853.5 $ 3,040.2 $ 2,790.4 $ 3,019.0 $ 3,065.4 $ 2,689.6 $ 2,161.5 ) -22.5 % $ 8,684.1 $ 7,916.4 ) -8.8 %
Client asset values, beginning of period (mills) $ 81,533 $ 85,888 $ 91,735 $ 91,765 $ 97,312 $ 93,708 $ 82,291 ) -10.3 % $ 81,533 $ 97,312 19.4 %
2,853 3,040 2,790 3,019 3,065 2,690 2,161 ) -22.5 % 8,684 7,916 ) -8.8 %
(1,759 ) (1,826 ) (1,756 ) (1,819 ) (1,900 ) (1,797 ) (1,447 ) 17.6 % (5,341 ) (5,144 ) 3.7 %
Net flows 1,095 1,214 1,034 1,200 1,166 893 714 ) -30.9 % 3,343 2,773 ) nm
172 200 (323 ) 42 171 (474 ) (802 ) ) -148.0 % 49 (1,105 ) ) nm
3,088 4,433 (681 ) 4,306 (4,941 ) (11,836 ) (3,466 ) ) nm 6,840 (20,243 ) ) nm
Client asset values, end of period $ 85,888 $ 91,735 $ 91,765 $ 97,312 $ 93,708 $ 82,291 $ 78,737 ) -14.2 % $ 91,765 $ 78,737 ) -14.2 %
5.4 % 5.7 % 4.5 % 5.2 % 4.8 % 3.8 % 3.5 % % nm 5.5 % 3.8 % % nm
Average client asset values (mills)
$ 41,161 $ 44,398 $ 46,113 $ 47,139 $ 46,429 $ 42,870 $ 40,331 ) -12.5 % $ 43,890 $ 43,210 ) -1.6 %
10,268 11,256 11,667 11,984 12,119 11,539 10,840 ) -7.1 % 11,064 11,499 3.9 %
5,295 5,915 6,362 6,772 7,077 6,960 6,817 7.1 % 5,857 6,951 18.7 %
2,495 2,541 2,585 2,620 2,650 2,677 2,696 4.3 % 2,540 2,675 5.3 %
21,291 22,554 23,193 23,567 23,218 21,431 20,269 ) -12.6 % 22,346 21,639 ) -3.2 %
2,622 2,713 2,732 2,727 2,710 2,517 2,368 ) -13.3 % 2,689 2,532 ) -5.8 %
Total $ 83,131 $ 89,378 $ 92,652 $ 94,809 $ 94,203 $ 87,994 $ 83,320 ) -10.1 % $ 88,387 $ 88,506 0.1 %
$ 10,268 $ 11,256 $ 11,667 $ 11,984 $ 12,119 $ 11,539 $ 10,840 ) -7.1 % $ 11,064 $ 11,499 3.9 %
2,622 2,713 2,732 2,727 2,710 2,517 2,368 ) -13.3 % 2,689 2,532 ) -5.8 %
Total Canada average client assets 12,890 13,969 14,399 14,711 14,829 14,056 13,208 ) -8.3 % 13,753 14,031 2.0 %
Total U.S. average client assets 70,241 75,409 78,252 80,098 79,374 73,938 70,112 ) -10.4 % 74,634 74,475 ) -0.2 %
Total average client assets $ 83,131 $ 89,378 $ 92,652 $ 94,809 $ 94,203 $ 87,994 $ 83,320 ) -10.1 % $ 88,387 $ 88,506 0.1 %
Average number of fee-generating positions (thous) (3)
2,115 2,159 2,192 2,218 2,243 2,277 2,295 4.7 % 2,155 2,272 5.4 %
714 741 762 780 797 812 820 7.6 % 739 810 9.6 %
Total 2,830 2,899 2,954 2,998 3,040 3,089 3,115 5.5 % 2,894 3,082 6.5 %

All values are in US Dollars.

(1) Asset value outflows - include (a) redemptions of assets, (b) sales charges on the inflow sales figures, and (c) the net flow of money market funds sold and redeemed on the company's recordkeeping platform. The redemptions of assets must be estimated for approximately 4% of account values as these figures are not readily available. Actual redemptions as a percentage of account values for similar known account values are used to estimate the unknown redemption values.

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

(3) Fee generating positions - mutual fund positions for which we receive recordkeeping fees. An individual client account may include multiple mutual fund positions. We may also receive fees earned for custodial services that we provide to clients with retirement plan accounts that hold positions in these mutual funds.

12 of 18

Senior Health - Financial Results, Financial Analysis Key Statistics PRIMERICA, INC.<br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2021 Q1<br>2022 Q2<br>2022 Q3<br>2022 Change %<br>Change YTD <br>2021 YTD <br>2022 Change %<br>Change
Senior Health Income Before Income Taxes
Revenues:
Commissions and fees (1) $ 21,558 $ 29,345 $ 1,278 $ 9,343 $ 14,601 ) -32.3 % $ 21,558 $ 25,222 17.0 %
Other, net (2) 1,378 8,159 4,553 2,471 2,583 87.4 % 1,378 9,606 nm
Revenues 22,937 37,504 5,831 11,814 17,183 ) -25.1 % 22,937 34,828 51.8 %
Benefits and expenses:
Contract acquisition costs (3) 23,524 29,264 20,649 19,384 13,446 ) -42.8 % 23,524 53,479 127.3 %
Adjusted other operating expenses 7,485 8,411 7,868 8,514 7,461 ) -0.3 % 7,485 23,842 nm
Adjusted operating benefits and expenses 31,009 37,675 28,517 27,898 20,907 ) -32.6 % 31,009 77,321 149.4 %
Adjusted operating income before income taxes including NCI $ (8,072 ) $ (171 ) $ (22,686 ) $ (16,084 ) $ (3,723 ) 53.9 % $ (8,072 ) $ (42,493 ) ) nm
Non-controlling interest before income taxes (1,465 ) (540 ) (3,668 ) (3,129 ) — 100.0 % (1,465 ) (6,797 ) ) nm
Adjusted operating income before income taxes attributable to Primerica, Inc. $ (6,608 ) $ 369 $ (19,018 ) $ (12,955 ) $ (3,723 ) 43.7 % $ (6,608 ) $ (35,696 ) ) nm
Senior Health EBITDA
Adjusted operating income before income taxes including NCI $ (8,072 ) $ (171 ) $ (22,686 ) $ (16,084 ) $ (3,723 ) 53.9 % $ (8,072 ) $ (42,493 ) ) nm
Less: Amortization of intangibles (2,900 ) (2,900 ) (2,600 ) (2,800 ) (2,800 ) 3.4 % (2,900 ) (8,200 ) ) nm
Less: Depreciation (244 ) (249 ) (245 ) (226 ) (221 ) 9.7 % (244 ) (691 ) ) nm
Adjusted EBITDA (Including non-controlling interest) (4) $ (4,928 ) $ 2,978 $ (19,841 ) $ (13,058 ) $ (703 ) 85.7 % $ (4,928 ) $ (33,602 ) ) nm
Financial Analysis and Key Statistics
Senior Health submitted policies (5) 20,867 39,142 26,231 19,652 16,095 ) -22.9 % 20,867 61,978 nm
Senior Health approved policies (6) 18,276 32,047 23,594 17,925 14,862 ) -18.7 % 18,276 56,381 nm
Primerica representatives Senior Health certified 17,588 26,441 42,147 60,412 83,280 nm 17,588 83,280 nm
Senior Health submitted policies sourced by Primerica representatives 319 4,175 988 831 1,016 nm 319 2,835 nm
LTV per approved policy (7) $ 1,180 $ 1,069 $ 862 $ 820 $ 868 ) -26.4 % $ 1,180 $ 850 ) -27.9 %
CAC per approved policy (7) $ 1,287 $ 913 $ 875 $ 1,081 $ 905 ) -29.7 % $ 1,287 $ 949 ) -26.3 %
LTV / CAC multiple 0.9 x 1.2 x 1.0 x 0.8 x 1.0 x x nm 0.9 x 0.9 x x nm

All values are in US Dollars.

(1) Commission revenue recognized based on the estimated Lifetime value (LTV) to be collected over the estimated life of an approved policy for the relevant period based on multiple factors, including but not limited to contracted commission rates, carrier mix, expected policy turnover, historical chargeback activity and applied constraints. Adjustments to revenue outside of LTV for approved policies from prior periods are recognized when our cash collections are different from the estimated constrained LTV’s which we refer to as tail revenue.

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

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

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

(5) Senior Health submitted policies - represents the number of completed applications that, with respect to each such application, the applicant has authorized us to submit to the health insurance carrier. The applicant may need to take additional actions, including providing subsequent information before the application is reviewed by the health insurance carrier.

(6) Senior Health approved policies - represent an estimate of submitted policies approved by health insurance carriers during the indicated period. Not all approved policies will go in force.

(7) In whole dollars.

13 of 18

Corporate Other Distributed Products - Financial Results PRIMERICA, INC.<br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2021 Q1<br>2022 Q2<br>2022 Q3<br>2022 Change %<br>Change YTD <br>2021 YTD <br>2022 Change %<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 $ 5,494 ) -5.1 % $ 17,300 $ 16,347 ) -5.5 %
Ceded premiums (1,423 ) (1,822 ) (1,459 ) (1,963 ) (1,439 ) (1,642 ) (1,454 ) 0.4 % (4,704 ) (4,535 ) 3.6 %
Net premiums 4,290 3,978 4,328 3,057 3,973 3,799 4,040 ) -6.7 % 12,596 11,811 ) -6.2 %
Allocated net investment income 12,592 11,954 11,321 10,738 9,559 10,252 11,173 ) -1.3 % 35,867 30,983 ) -13.6 %
Commissions and fees:
Prepaid Legal Services 4,783 5,182 6,712 4,085 4,287 4,664 5,672 ) -15.5 % 16,676 14,623 ) -12.3 %
Auto and Homeowners Insurance 1,787 2,101 2,436 1,971 1,591 2,056 2,647 8.7 % 6,324 6,294 ) -0.5 %
Mortgage loans 4,960 6,061 6,719 6,598 4,818 3,128 2,103 ) -68.7 % 17,740 10,049 ) -43.4 %
Other sales commissions 2,041 2,291 2,129 2,307 1,932 2,103 2,090 ) -1.8 % 6,461 6,124 ) -5.2 %
Other, net 836 1,040 1,101 992 1,117 889 1,621 47.1 % 2,977 3,626 21.8 %
Adjusted operating revenues 31,288 32,607 34,746 29,746 27,276 26,890 29,345 ) -15.5 % 98,641 83,511 ) -15.3 %
Benefits and expenses:
Benefits and claims 4,826 5,859 3,728 4,443 4,166 4,280 3,937 5.6 % 14,413 12,382 ) -14.1 %
Amortization of DAC 246 264 347 203 255 247 427 23.0 % 857 930 8.5 %
Insurance commissions 299 306 320 246 282 290 283 ) -11.5 % 925 855 ) -7.6 %
Insurance expenses 1,391 1,327 1,367 1,257 1,237 1,132 1,081 ) -20.9 % 4,086 3,449 ) -15.6 %
Sales commissions 6,434 7,185 8,290 6,839 5,952 5,484 5,592 ) -32.5 % 21,908 17,028 ) -22.3 %
Interest expense 7,145 7,141 7,529 8,804 6,853 6,814 6,802 ) -9.7 % 21,814 20,469 ) -6.2 %
Adjusted other operating expenses 35,211 27,413 26,695 30,301 36,475 30,530 28,974 8.5 % 89,319 95,978 7.5 %
Adjusted benefits and expenses 55,551 49,495 48,277 52,093 55,219 48,777 47,096 ) -2.4 % 153,323 151,092 ) -1.5 %
Adjusted operating income before income taxes $ (24,263 ) $ (16,888 ) $ (13,531 ) $ (22,346 ) $ (27,943 ) $ (21,887 ) $ (17,750 ) ) -31.2 % $ (54,682 ) $ (67,581 ) ) -23.6 %

All values are in US Dollars.

14 of 18

Investment Portfolio - Summary of Holdings PRIMERICA, INC.<br><br>Financial Supplement
As of or for the period ended September 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 $ 438,025 $ 438,025 $ - 14.9 % 13.5 %
Fixed Income:
Treasury 37,367 38,241 (874 ) 1.3 % 1.2 % 1.13 % AAA
Government 224,086 250,211 (26,124 ) 7.6 % 7.7 % 2.90 % AA-
Tax-Exempt Municipal 31,351 37,606 (6,255 ) 1.1 % 1.2 % 2.70 % AA
Corporate 1,223,441 1,382,788 (159,348 ) 41.7 % 42.5 % 3.50 % BBB+
Mortgage Backed 424,518 490,003 (65,485 ) 14.5 % 15.1 % 2.89 % AAA
Asset Backed 139,013 154,274 (15,262 ) 4.7 % 4.7 % 3.22 % AA-
Cmbs 125,739 139,940 (14,201 ) 4.3 % 4.3 % 3.24 % AA-
Private 252,381 285,421 (33,040 ) 8.6 % 8.8 % 4.21 % BBB
Redeemable Preferred 3,811 4,248 (438 ) 0.1 % 0.1 % 5.27 % BBB
Total Fixed Income 2,461,707 2,782,733 (321,026 ) 83.9 % 85.5 % 3.34 % A
Equities and Other:
Perpetual Preferred 9,027 9,027 - 0.3 % 0.3 %
Common Stock 18,540 18,540 - 0.6 % 0.6 %
Mutual Fund 5,512 5,512 - 0.2 % 0.2 %
Total Equities 33,079 33,079 - 1.1 % 1.0 %
Total Invested Assets $ 2,932,811 $ 3,253,837 $ (321,026 ) 100.0 % 100.0 %
Public Corporate Portfolio by Sector
Insurance $ 153,134 $ 175,580 $ (22,445 ) 12.5 % 12.7 %
Consumer Non Cyclical 132,635 150,780 (18,146 ) 10.8 % 10.9 %
Energy 125,082 141,091 (16,009 ) 10.2 % 10.2 %
Reits 116,103 135,552 (19,449 ) 9.5 % 9.8 %
Consumer Cyclical 103,890 117,668 (13,777 ) 8.5 % 8.5 %
Banking 93,436 99,909 (6,473 ) 7.6 % 7.2 %
Technology 93,221 103,042 (9,821 ) 7.6 % 7.5 %
Capital Goods 63,968 70,831 (6,863 ) 5.2 % 5.1 %
Basic Industry 60,211 69,669 (9,458 ) 4.9 % 5.0 %
Electric 56,327 62,660 (6,333 ) 4.6 % 4.5 %
Finance Companies 53,924 62,763 (8,839 ) 4.4 % 4.5 %
Transportation 53,620 59,705 (6,085 ) 4.4 % 4.3 %
Brokerage Assetmanagers Exchanges 45,149 51,689 (6,540 ) 3.7 % 3.7 %
Communications 44,789 49,663 (4,874 ) 3.7 % 3.6 %
Financial Other 8,532 9,582 (1,050 ) 0.7 % 0.7 %
Natural Gas 7,349 7,968 (619 ) 0.6 % 0.6 %
Industrial Other 5,914 6,925 (1,011 ) 0.5 % 0.5 %
Utility Other 4,465 5,387 (922 ) 0.4 % 0.4 %
Owned No Guarantee 1,693 2,325 (632 ) 0.1 % 0.2 %
Total Corporate portfolio $ 1,223,441 $ 1,382,788 $ (159,348 ) 100.0 % 100.0 %
Fixed-Maturity Securities - Effective Maturity
Effective maturity
< 1 Yr. $ 211,440 $ 213,180 $ (1,740 ) 8.6 % 7.7 % 3.11 %
1-2 Yrs. 230,905 237,861 (6,956 ) 9.4 % 8.5 % 3.70 %
2-5 Yrs. 767,210 831,323 (64,113 ) 31.2 % 29.9 % 3.49 %
5-10 Yrs. 783,875 924,914 (141,038 ) 31.8 % 33.2 % 3.30 %
> 10 Yrs. 468,277 575,455 (107,178 ) 19.0 % 20.7 % 3.15 %
Total Fixed Income $ 2,461,707 $ 2,782,733 $ (321,026 ) 100.0 % 100.0 % 3.34 %
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 September 30, 2022 PRIMERICA, INC.<br><br>Financial Supplement
(Dollars in thousands)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Investment Portfolio Quality Ratings (1)
Amortized Cost % of Total
Total Fixed Income portfolio:
Rating
AAA $ 597,966 21.5 %
AA 308,333 11.1 %
A 640,533 23.0 %
BBB 1,116,851 40.1 %
Below Investment Grade 76,395 2.7 %
NA 42,654 1.5 %
Total Fixed Income $ 2,782,733 100.0 %
Amortized Cost % of Total Amortized Cost % of Total
Public Corporate asset class: Private Placement asset class:
Rating Rating
AAA $ 11,442 0.8 % AAA $ - —
AA 68,570 5.0 % AA 5,316 1.9 %
A 355,120 25.7 % A 64,780 22.7 %
BBB 879,827 63.6 % BBB 212,211 74.4 %
Below Investment Grade 67,653 4.9 % Below Investment Grade 3,115 1.1 %
NA 176 0.0 % NA - —
Total Corporate $ 1,382,788 100.0 % Total Private $ 285,421 100.0 %
CMBS asset class: Mortgage-Backed asset class:
Rating Rating
AAA $ 60,838 43.5 % AAA $ 442,178 90.2 %
AA 8,947 6.4 % AA 47,589 9.7 %
A 70,155 50.1 % A 138 0.0 %
BBB - — BBB - —
Below Investment Grade - — Below Investment Grade 75 0.0 %
NA - — NA 23 0.0 %
Total CMBS $ 139,940 100.0 % Total Mortgage-Backed $ 490,003 100.0 %
Asset-Backed asset class: Treasury & Government asset classes:
Rating Rating
AAA $ 23,793 15.4 % AAA $ 58,808 20.4 %
AA 7,626 4.9 % AA 142,010 49.2 %
A 69,865 45.3 % A 73,112 25.4 %
BBB 8,412 5.5 % BBB 11,091 3.8 %
Below Investment Grade 2,123 1.4 % Below Investment Grade 3,429 1.2 %
NA 42,455 27.5 % NA - —
Total Asset-Backed $ 154,274 100.0 % Total Treasury & Government $ 288,451 100.0 %
NAIC Designations
1 $ 1,322,263 53.6 %
2 1,042,003 42.7 %
3 82,659 3.3 %
4 7,813 0.3 %
5 691 0.0 %
6 - —
U.S. Insurer Fixed Income (2) 2,455,429 100.0 %
Other (3) 360,382
Cash and cash equivalents 438,025
Total Invested Assets $ 3,253,837

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

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

(3) Other consists of assets held by our non-life companies, Canadian insurance company, and unrated equities.

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

16 of 18

Investment Portfolio - Supplemental Data and Trends PRIMERICA, INC.<br><br>Financial Supplement
YOY Q3
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1 <br>2021 Q2 <br>2021 Q3 <br>2021 Q4 <br>2021 Q1 <br>2022 Q2 <br>2022 Q3 <br>2022 Change %<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 $ 23,067 16.1%
Fixed-maturity securities (held-to-maturity) 15,146 15,495 15,741 15,825 15,515 15,815 16,283 3.4%
Equity Securities 391 411 413 416 387 371 373 ) -9.7%
Deposit asset underlying 10% reinsurance treaty 1,368 1,238 987 785 589 485 557 ) -43.6%
Deposit asset - Mark to Market (793 ) (170 ) (640 ) (899 ) (2,099 ) (1,254 ) (68 ) -89.4%
Policy loans and other invested assets 231 98 289 401 102 58 436 51.0%
Cash & cash equivalents 119 156 96 85 125 498 1,714 n/m
Total investment income 36,483 37,383 36,746 36,940 35,508 38,387 42,362 15.3%
Investment expenses 1,284 1,353 1,004 1,114 1,088 1,288 1,733 72.6%
Interest Expense on Surplus Note 15,146 15,495 15,741 15,825 15,515 15,815 16,283 3.4%
Net investment income $ 20,052 $ 20,535 $ 20,001 $ 20,001 $ 18,905 $ 21,284 $ 24,346 21.7%
Fixed income book yield, end of period 3.30 % 3.31 % 3.23 % 3.12 % 3.18 % 3.25 % 3.34 %
New money yield 1.72 % 2.68 % 2.21 % 1.60 % 3.37 % 4.21 % 3.93 %
YOY Q3
Q1 <br>2021 Q2 <br>2021 Q3 <br>2021 Q4 <br>2021 Q1 <br>2022 Q2 <br>2022 Q3 <br>2022 % PtChange
Fixed Income Portfolio Quality Ratings
Rating
AAA 16.6 % 16.5 % 18.0 % 18.7 % 21.0 % 22.0 % 21.5 % %
AA 12.2 % 11.6 % 11.0 % 11.8 % 11.2 % 11.2 % 11.1 % %
A 23.0 % 22.1 % 23.6 % 24.4 % 23.7 % 23.0 % 23.0 % %
BBB 44.0 % 45.5 % 42.9 % 40.8 % 39.8 % 39.6 % 40.1 % %
Below Investment Grade 4.1 % 4.2 % 4.1 % 3.5 % 3.1 % 2.8 % 2.7 % %
NA 0.1 % 0.1 % 0.3 % 0.8 % 1.2 % 1.3 % 1.5 % %
Total Fixed Income 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Average rating by amortized cost A- A- A A A A A

All values are in US Dollars.

As of September 30, 2022 As of September 30, 2022 As of September 30, 2022
Market<br>Value Amortized<br>Cost Credit<br>Rating Market<br>Value Amortized<br>Cost Market<br>Value Amortized<br>Cost
Top 25 Exposures Foreign Exposure (1) Government Investments (1)
1 Canada $ 14,733 $ 15,991 AAA Canada $ 92,375 $ 103,645 AAA $ 1,996 $ 2,124
2 Province of Quebec Canada 14,271 14,935 A+ Australia 21,567 23,246 AA 7,650 7,671
3 Province of Ontario Canada 13,629 14,274 AA Cayman Islands 17,828 18,971 A 10,618 12,409
4 Province of Alberta Canada 10,684 11,729 BBB+ United Kingdom 16,234 17,005 BBB 9,337 10,641
5 TC Energy Corp 10,356 11,320 BBB+ Japan 7,751 9,359 Below Investment Grade 2,792 3,429
6 Enbridge Inc 10,274 11,538 A Bermuda 7,191 8,198 NA — —
7 Manulife Financial Corp 9,067 9,513 AA+ France 6,853 7,084 Total $ 32,393 $ 36,275
8 Capital One Financial Corp 8,932 10,695 A Ireland 6,042 7,571
9 Province of British Columbia Canada 8,869 10,579 BBB+ Mexico 5,437 5,463
10 Ontario Teachers' Pension Plan 8,507 10,205 AA+ Netherlands 5,289 5,450 Non-Government Investments (1)
11 ConocoPhillips 8,183 9,095 BBB Brazil 4,696 4,825
12 Fairfax Financial Holdings Ltd 8,042 8,456 A Israel 3,706 4,006 AAA $ 2,882 $ 2,999
13 Kemper Corp 8,034 9,828 BBB- Supranational 3,496 3,623 AA 2,396 2,537
14 Brookfield Asset Management Inc 7,832 9,519 AA Switzerland 3,495 3,556 A 44,977 49,137
15 Western & Southern Mutual Holdings Co 7,767 7,871 A+ Luxembourg 3,410 3,500 BBB 139,962 153,597
16 City of Toronto Canada 7,736 8,008 AA Emerging Markets (2) 12,028 14,385 Below Investment Grade 8,145 7,961
17 Province of Newfoundland and Labrador 7,703 8,032 A+ All Other 18,447 18,077 NA 5,091 5,458
18 Morgan Stanley 7,468 7,766 BBB+ Total $ 235,846 $ 257,964 Total $ 203,453 $ 221,689
19 Bunge Ltd 7,318 8,101 A
20 Province of New Brunswick Canada 7,208 7,370 BBB
21 General Mills Inc 7,102 7,716 AA+
22 Sammons Enterprises Inc 6,911 7,077 A-
23 Apple Inc 6,896 8,090 BBB
24 Realty Income Corp 6,823 7,890 BBB
25 Williams Cos Inc 6,753 7,443 A+
Total $ 221,100 $ 243,041
% of total fixed income portfolio 7.5 % 7.5 %

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

(2) Emerging markets is as defined by MSCI, Inc. which include Chile, India, Peru, Poland and South Africa.

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

17 of 18

Five-Year Historical Key Statistics PRIMERICA, INC.<br><br>Financial Supplement
(Dollars in millions) 2017 2018 2019 2020 2021 Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2021 Q1<br>2022 Q2<br>2022 Q3<br>2022
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Recruits 303,867 290,886 282,207 400,345 349,374 94,633 89,285 91,884 73,572 84,707 70,215 127,788
Life-insurance licensed sales force, beginning of period 116,827 126,121 130,736 130,522 134,907 134,907 132,030 132,041 130,023 129,515 130,206 132,149
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 12,518
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 ) (10,354 )
Life-insurance licensed sales force, end of period 126,121 130,736 130,522 134,907 129,515 132,030 132,041 130,023 129,515 130,206 132,149 134,313
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 71,104
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 $ 26,049
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 $ 914,438
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 26,049
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 ) (21,033 )
Foreign currency impact, net 5,769 (7,708 ) 4,746 1,968 862 1,422 1,602 (2,480 ) 319 1,242 (3,547 ) (6,669 )
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 $ 912,785
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 $ 68.0
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 19.5
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 $ 87.5
Investment & Savings product sales $ 6,192.2 $ 7,040.1 $ 7,533.2 $ 7,842.5 $ 11,703.2 $ 2,853.5 $ 3,040.2 $ 2,790.4 $ 3,019.0 $ 3,065.4 $ 2,689.6 $ 2,161.5
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 $ 83,320
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 $ 99.8

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