Equibles

8-K

Primerica, Inc. (PRI)

8-K 2020-11-04 For: 2020-11-04
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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 4, 2020

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) (I.R.S. Employer<br>Identification Number)
1 Primerica Parkway<br><br><br>Duluth, Georgia 30099
(Address of Principal Executive Offices, and Zip Code)

(770) 381-1000

(Registrant’s telephone number, including area code)

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

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

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

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. ☐

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

Item 2.02Results of Operations and Financial Condition.

On November 4, 2020, Primerica, Inc. (the “Company”) announced its results of operations for the quarter ended September 30, 2020. 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 realized investment gains (losses) and fair value mark-to-market (“MTM”) investment adjustments, including credit impairments, for all periods presented. We exclude realized 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 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 http://investors.primerica.com.

Item 7.01Regulation FD Disclosure.

On November 4, 2020, the Company posted to the “Investor Relations” section of its website certain supplemental financial information relating to the quarter ended September 30, 2020.  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 4, 2020 – Primerica Reports Third Quarter 2020 Results
99.2 Primerica, Inc. Supplemental Financial Information – Third Quarter 2020
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 4, 2020 PRIMERICA, INC.
/s/ Alison S. Rand
Alison S. Rand
Executive Vice President and Chief Financial Officer

4

pri-ex991_6.htm

Exhibit 99.1

PRIMERICA REPORTS THIRD QUARTER 2020 RESULTS

Term Life policies issued increase 36% with productivity and policy persistency at record levels

Term Life net premiums grow 13%; adjusted direct premiums grow 14%

Investment and Savings Products ending client asset values reach a record $72.6 billion

Life-Licensed Sales Force increases to 136,306 aided by temporary COVID-related state licensing measures

Net earnings per diluted share (EPS) of $2.81, up 23%; return on stockholders’ equity (ROE) of 26.7%

Diluted adjusted operating EPS of $2.78, up 23%; adjusted net operating income return on adjusted stockholders’ equity (ROAE) of 28.0%

Declared dividend of $0.40 per share, payable on December 14, 2020

Duluth, GA, November 4, 2020 – Primerica, Inc. (NYSE: PRI) today announced financial results for the quarter ended September 30, 2020. Total revenues of $568.5 million increased 9% compared to the third quarter of 2019.  Net income of $112.1 million increased 17%, while earnings per diluted share of $2.81 increased 23% compared to the same quarter last year.  ROE increased to 26.7% during the quarter from 24.1% during the third quarter of 2019.

Compared to the third quarter of 2019, adjusted operating revenues of $566.7 million increased 9%, adjusted operating net income of $110.7 million increased 16% and diluted adjusted operating earnings per share of $2.78 increased 23%. ROAE increased to 28.0% during the quarter from 24.9% during the third quarter of 2019.

Third quarter results were positively impacted by strong demand for protection products, which has been on the rise since the onset of the COVID-19 pandemic. Record term life policy sales and persistency more than offset elevated claims experience during the

quarter.  Investment and Savings Products (ISP) sales remained under pressure, but market appreciation and lower levels of redemptions during the period drove an 8% increase in average client asset values year-over-year.  The Company continued to invest in opportunities that will support and accelerate growth, including digital technologies and the recently launched mortgage distribution program.  During the quarter, the Company repurchased $41.5 million of common stock for a year-to-date total of $218.1 million.

“Primerica continues to meet the strong demand for all of our financial solutions that has been aided by consumer sentiment during the COVID-19 pandemic. Protecting their families and pursuing our business opportunity have been a top priority for middle-income families, followed closely by investing for the future,” said Glenn Williams, Chief Executive Officer.  “The adaptability of our sales force and the flexibility of our business model have positioned us to meet the ongoing needs of our clients.”

Third Quarter Distribution & Segment Results

Distribution Results
Q3 2020 Q3 2019 % Change
Life-Licensed Sales Force ^(1)^ 136,306 130,871 4 %
Recruits 101,861 72,345 41 %
New Life-Licensed Representatives 13,138 12,682 4 %
Life Insurance Policies Issued 100,199 73,434 36 %
Life Productivity^(2)^ 0.25 0.19 *
ISP Product Sales ($ billions) $ 1.84 $ 1.86 (1 )%
Average Client Asset Values ($ billions) $ 71.51 $ 66.00 8 %
^(1)^ End of period
--- ---
^(2)^ Life productivity equals policies issued divided by the average number of life insurance licensed representatives per month
--- ---

*     Not calculated or less than 1%

Segment Results
Q3 2020 Q3 2019 % Change
( in thousands)
Adjusted Operating Revenues:
Term Life Insurance $ 314,527 14 %
Investment and Savings Products 173,153 2 %
Corporate and Other Distributed Products ^(1)^ 32,154 1 %
Total adjusted operating revenues ^(1)^ $ 519,834 9 %
Adjusted Operating Income (Loss) before<br><br><br>income taxes:
Term Life Insurance $ 83,761 26 %
Investment and Savings Products 48,794 5 %
Corporate and Other Distributed Products ^(1)^ ) (8,235 ) 46 %
Total adjusted operating income before<br><br><br>income taxes ^(1)^ $ 124,320 16 %

All values are in US Dollars.

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

Life Insurance Licensed Sales Force

Recruiting activity remained robust throughout the quarter, even as the business application fee discount ended on July 31.  The Company saw favorable year-over-year comparisons in each of July through September, resulting in a total of 101,861 new recruits during the third quarter.  The licensing process continues to be challenged due to various issues, including social distancing restrictions and processing backlogs; nonetheless, a total of 13,138 individuals received a new life license during the third quarter of 2020.

As of September 30, 2020, the Company had 136,306 independent life-licensed representatives, including 5,200 licenses that were issued on a temporary basis due to COVID-19.  We expect approximately 40% of the COVID-19 temporarily licensed representatives to take the steps necessary to obtain a permanent license.  The number of independent life-licensed representatives also includes 4,500 licenses where the state has extended the renewal date, 40% of which we estimate will ultimately be renewed.

Term Life Insurance

During the third quarter, the Company issued 100,199 new life insurance policies, a 36% increase year-over-year.  Greater demand for protection products, along with a smooth transition to remote sales at the onset of COVID-19, led productivity during the quarter to 0.25 policies per life insurance licensed representative per month, well above our historical range of 0.18 to 0.22.

Revenues of $357.8 million increased 14% compared to the third quarter of 2019 and pre-tax income of $105.3 million increased 26% year-over-year.  Continued strength in sales volume, along with a notable increase in persistency across all policy durations, led to a 14% increase in adjusted direct premiums.  Strong policy persistency positively impacted DAC amortization by $22 million year-over-year and was partially offset by $8 million higher benefit reserve increases.  Benefits and claims also included approximately $9 million of unfavorable claims experience during the third quarter of 2020, $8 million of which the Company estimates is related to COVID-19 deaths.

Investment and Savings Products

Total product sales during the quarter were $1.8 billion, or 1% lower than the third quarter of 2019 as investors began to see signs of market stabilization and resumed investing to meet long-term goals.  Net client inflows were robust at $508 million during the quarter, a 173% increase year-over-year, driven by a 20% decline in gross redemptions.  Average client asset values were $71.5 billion, increasing 8% year-over-year.

Revenues of $176.3 million during the quarter increased 2% compared to the same quarter in 2019 and pre-tax income of $51.4 million increased 5%.  Sales-based revenues declined 5%, in line with revenue-generating product sales, as growth in sales of retail mutual funds were offset by continued weakness in annuity product sales.

Asset-based revenues increased 7%, in line with the increase in average client asset values year-over-year.  Sales and asset-based commission expenses generally moved in correlation with the associated revenues.

Net Investment Income and Invested Asset Portfolio

Consolidated net investment income of $23.0 million for the quarter was largely unchanged versus the prior year period as the $2.3 million impact of lower rates was offset by $1.7 million higher income due to the growth in the size of the invested asset portfolio.  The invested asset portfolio ended the quarter with an unrealized gain of $135 million, up from $120 million as of June 30, 2020, and with an average credit rating of A.

Taxes

The third quarter effective income tax rate was 23.5% versus 23.1% in the prior year period.

Capital

During the third quarter, the Company repurchased 340,154 shares of common stock for $41.5 million, bringing the total through September 30 to $218.1 million.  The Board of Directors has approved a dividend of $0.40 per share, payable on December 14, 2020, to stockholders of record on November 20, 2020.

Primerica has a strong balance sheet and continues to be well-capitalized to meet future needs.  Primerica Life Insurance Company’s statutory risk-based capital (RBC) ratio was estimated to be about 425% and holding company liquidity was $251.1 million as of September 30, 2020.

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 realized investment gains (losses) and fair value mark-to-market (“MTM”) investment adjustments, including credit impairments, for all periods presented. We exclude realized 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 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 Thursday, November 5, 2020 at 10:00 am EST, to discuss the quarter’s results.  To access the webcast, go to http://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 on Primerica’s website, http://investors.primerica.com.  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, major public health pandemics, epidemics or outbreaks, specifically the novel COVID-19 pandemic; 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; the occurrence of a catastrophic event; 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 downgrade or potential downgrade in our insurance subsidiaries’ financial strength ratings or our senior debt ratings; inadequate or unaffordable reinsurance or the failure of our reinsurers to perform their obligations; the failure of our investment products to remain competitive with other investment options or the change to investment and savings products offered by key providers in a way that is not beneficial to our business or a significant change in the competitive environment in which we operate; fluctuations in the performance of client assets under management; 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; the failure of, or legal challenges to, the support tools we provide to the sales force; 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; incorrectly valuing our investments; changes in accounting standards may impact how we record and report our financial condition and results of operations; economic down cycles that impact our business, financial condition and results of operations; the inability of our subsidiaries to pay dividends or make distributions; our inability to generate and maintain a sufficient amount of working capital; our non-compliance with the covenants of our senior unsecured debt; the loss of key personnel or sales force leaders; 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 http://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 million lives and had approximately 2.5 million client investment accounts at December 31, 2019. Primerica, through its insurance company subsidiaries, was the #2 issuer of Term Life insurance coverage in North America in 2019. 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: investorrelations@primerica.com

Media Contact:

Keith Hancock

470-564-6328

Email: Keith.Hancock@Primerica.com

PRIMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
September 30, 2020 December 31, 2019
(In thousands)
Assets
Investments:
Fixed-maturity securities available-for-sale, at fair value $ 2,453,076 $ 2,356,996
Fixed-maturity security held-to-maturity, at amortized cost 1,323,740 1,184,370
Equity securities, at fair value 33,856 40,684
Trading securities, at fair value 13,470 43,233
Policy loans 30,605 32,927
Total investments 3,854,747 3,658,210
Cash and cash equivalents 330,877 256,876
Accrued investment income 18,448 17,361
Reinsurance recoverables 4,229,088 4,169,823
Deferred policy acquisition costs, net 2,532,409 2,325,750
Agent balances, due premiums and other receivables 280,915 227,100
Intangible assets, net 45,275 45,275
Income taxes 72,707 70,492
Operating lease right-of-use assets 47,685 47,265
Other assets 420,051 384,634
Separate account assets 2,468,328 2,485,745
Total assets $ 14,300,530 $ 13,688,531
Liabilities and Stockholders' Equity
Liabilities:
Future policy benefits $ 6,664,061 $ 6,446,569
Unearned and advance premiums 18,308 15,470
Policy claims and other benefits payable 467,609 339,954
Other policyholders' funds 425,537 388,663
Notes payable 374,320 374,037
Surplus note 1,323,146 1,183,728
Income taxes 216,640 209,221
Operating lease liabilities 53,889 53,487
Other liabilities 519,363 510,443
Payable under securities lending 48,883 28,723
Separate account liabilities 2,468,328 2,485,745
Total liabilities 12,580,084 12,036,040
Stockholders' equity:
Common stock 394 412
Paid-in capital - -
Retained earnings 1,629,114 1,593,281
Accumulated other comprehensive income (loss),<br><br><br>net of income tax 90,938 58,798
Total stockholders' equity 1,720,446 1,652,491
Total liabilities and stockholders' equity $ 14,300,530 $ 13,688,531
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- ---
Condensed Consolidated Statements of Income
(Unaudited)
Three months ended September 30,
2020 2019
(In thousands, except per-share amounts)
Revenues:
Direct premiums $ 736,606 $ 692,258
Ceded premiums (393,716 ) (388,982 )
Net premiums 342,890 303,276
Commissions and fees 185,302 179,719
Net investment income 22,953 22,675
Realized investment gains (losses) 642 285
Other, net 16,674 14,698
Total revenues 568,461 520,653
Benefits and expenses:
Benefits and claims 160,166 128,684
Amortization of deferred policy acquisition costs 47,491 63,883
Sales commissions 91,950 89,061
Insurance expenses 46,109 44,854
Insurance commissions 9,694 6,980
Interest expense 7,221 7,209
Other operating expenses 59,347 54,843
Total benefits and expenses 421,978 395,514
Income before income taxes 146,483 125,139
Income taxes 34,382 28,916
Net income $ 112,101 $ 96,223
Earnings per share:
Basic earnings per share $ 2.82 $ 2.28
Diluted earnings per share $ 2.81 $ 2.28
Weighted-average shares used in computing<br><br><br>earnings per share:
Basic 39,588 41,964
Diluted 39,710 42,100
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- --- --- --- ---
Consolidated Adjusted Operating Results Reconciliation
(Unaudited – in thousands, except per share amounts)
Three months ended September 30,
2020 2019 % Change
Total revenues $ 568,461 $ 520,653 9 %
Less: Realized investment gains (losses) 642 285
Less: 10% deposit asset MTM included in NII 1,165 534
Adjusted operating revenues $ 566,654 $ 519,834 9 %
Income before income taxes $ 146,483 $ 125,139 17 %
Less: Realized investment gains (losses) 642 285
Less: 10% deposit asset MTM included in NII 1,165 534
Adjusted operating income before income taxes $ 144,676 $ 124,320 16 %
Net income $ 112,101 $ 96,223 17 %
Less: Realized investment gains (losses) 642 285
Less: 10% deposit asset MTM included in NII 1,165 534
Less: Tax impact of preceding items (424 ) (189 )
Adjusted net operating income $ 110,718 $ 95,593 16 %
Diluted earnings per share ^(1)^ $ 2.81 $ 2.28 23 %
Less: Net after-tax impact of operating adjustments 0.03 0.02
Diluted adjusted operating earnings per share ^(1)^ $ 2.78 $ 2.26 23 %
^(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,
2020 2019 % Change
Direct premiums $ 730,273 $ 685,539 7 %
Less: Premiums ceded to IPO coinsurers 254,938 267,856
Adjusted direct premiums $ 475,335 $ 417,683 14 %
Ceded premiums $ (392,004 ) $ (387,120 )
Less: Premiums ceded to IPO coinsurers (254,938 ) (267,856 )
Other ceded premiums $ (137,066 ) $ (119,264 )
Net premiums $ 338,269 $ 298,419 13 %
CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT
--- --- --- --- --- --- --- --- --- ---
Adjusted Operating Results Reconciliation
(Unaudited – in thousands)
Three months ended September 30,
2020 2019 % Change
Total revenues $ 34,325 $ 32,973 4 %
Less: Realized investment gains (losses) 642 285
Less: 10% deposit asset MTM included in NII 1,165 534
Adjusted operating revenues $ 32,518 $ 32,154 1 %
Loss before income taxes $ (10,204 ) $ (7,416 ) 38 %
Less: Realized investment gains (losses) 642 285
Less: 10% deposit asset MTM included in NII 1,165 534
Adjusted operating loss before income taxes $ (12,011 ) $ (8,235 ) 46 %
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- --- ---
Adjusted Stockholders' Equity Reconciliation
(Unaudited – in thousands)
September 30, 2020 December 31, 2019 % Change
Stockholders' equity $ 1,720,446 $ 1,652,491 4 %
Less: Unrealized net investment gains (losses) recorded<br><br><br>in stockholders' equity, net of income tax 105,758 64,563
Adjusted stockholders' equity $ 1,614,688 $ 1,587,928 2 %

11

pri-ex992_7.htm

Exhibit 99.2

Supplemental Financial Information

Third Quarter 2020

Table of Contents PRIMERICA, INC.<br><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
Segment operating results 8
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
Investment portfolio 13-15
Five-year historical key statistics 16

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, 2019.

2 of 16

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

Third Quarter 2020

This document is a financial supplement to our third quarter 2020 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 realized investment gains/losses, including credit impairments, and mark-to-market (MTM) investment adjustments.  We exclude realized investment gains/losses, including credit impairments, and MTM investment adjustments in measuring adjusted operating revenues to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains and losses and other factors prior to an invested asset's maturity or sale that are not directly associated with the Company's insurance operations.
• Adjusted stockholders’ equity refers to the removal of the impact of net unrealized gains and losses on invested assets.  We exclude unrealized investment gains and losses in measuring adjusted stockholders' equity as unrealized gains and losses from the Company's invested assets are largely caused by market movements in interest rates and credit spreads that do not necessarily correlate with the cash flows we will ultimately realize when an invested asset matures or is sold.
--- ---
• IPO coinsurance transactions adjustments relate to transactions in the first quarter of 2010, where we coinsured between 80% and 90% of our business that was in-force at year-end 2009 to entities then affiliated with Citigroup Inc. that were executed concurrent with our initial public offering (IPO).  We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate within this block of business.
--- ---

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

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

3 of 16

Condensed Balance Sheets and Reconciliation of Balance Sheet Non-GAAP to GAAP Financial Measures PRIMERICA, INC.<br><br><br>Financial Supplement
(Dollars in thousands) Dec 31,<br><br><br>2018 Mar 31,<br><br><br>2019 Jun 30,<br><br><br>2019 Sep 30,<br><br><br>2019 Dec 31,<br><br><br>2019 Mar 31,<br><br><br>2020 Jun 30,<br><br><br>2020 Sep 30,<br><br><br>2020
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Condensed Balance Sheets
Assets:
Investments and cash excluding securities held to maturity $ 2,422,734 $ 2,471,745 $ 2,557,033 $ 2,617,685 $ 2,730,715 $ 2,626,043 $ 2,805,065 $ 2,861,883
Securities held to maturity 970,390 1,036,110 1,087,790 1,140,250 1,184,370 1,237,270 1,278,580 1,323,740
Total investments and cash 3,393,124 3,507,855 3,644,823 3,757,935 3,915,085 3,863,313 4,083,645 4,185,623
Due from reinsurers 4,141,569 4,202,903 4,185,850 4,166,362 4,169,823 4,132,897 4,217,129 4,229,088
Deferred policy acquisition costs 2,133,920 2,181,741 2,238,315 2,281,560 2,325,750 2,346,656 2,434,462 2,532,409
Other assets 730,933 814,854 811,426 818,029 792,128 799,122 851,660 885,083
Separate account assets 2,195,501 2,368,760 2,437,291 2,427,852 2,485,745 2,128,924 2,377,654 2,468,328
Total assets $ 12,595,047 $ 13,076,112 $ 13,317,706 $ 13,451,737 $ 13,688,531 $ 13,270,911 $ 13,964,549 $ 14,300,531
Liabilities:
Future policy benefits $ 6,168,157 $ 6,240,864 $ 6,314,403 $ 6,374,327 $ 6,446,569 $ 6,472,397 $ 6,567,169 $ 6,664,061
Other policy liabilities 700,094 703,123 717,265 714,930 744,087 737,435 855,083 911,454
Income taxes 187,104 206,180 206,301 207,453 209,221 208,357 265,369 216,639
Other liabilities 486,772 561,709 551,689 565,894 563,931 554,014 574,425 573,253
Notes payable 373,661 373,755 373,848 373,942 374,037 374,131 374,226 374,320
Surplus note 969,685 1,035,421 1,087,117 1,139,592 1,183,728 1,236,644 1,277,970 1,323,146
Payable under securities lending 52,562 64,914 43,867 39,933 28,723 28,896 29,973 48,883
Separate account liabilities 2,195,501 2,368,760 2,437,291 2,427,852 2,485,745 2,128,924 2,377,654 2,468,328
Total liabilities 11,133,535 11,554,726 11,731,781 11,843,924 12,036,040 11,740,797 12,321,869 12,580,085
Stockholders’ equity:
Common stock (0.01 par value) (1) 427 424 420 415 412 405 397 394
Paid-in capital (0 ) (0 ) (0 ) (0 ) (0 ) 0 0 0
Retained earnings 1,489,520 1,506,944 1,537,537 1,553,286 1,593,281 1,565,803 1,569,689 1,629,114
Treasury stock — — — — — — — —
Accumulated other comprehensive income (loss), net:
(7,370 ) 28,916 56,227 66,377 64,564 (1,318 ) 93,726 105,758
(21,064 ) (14,897 ) (8,258 ) (12,265 ) (5,765 ) (34,776 ) (21,132 ) (14,820 )
Total stockholders’ equity 1,461,513 1,521,387 1,585,926 1,607,813 1,652,492 1,530,114 1,642,680 1,720,446
Total liabilities and stockholders' equity $ 12,595,047 $ 13,076,112 $ 13,317,706 $ 13,451,737 $ 13,688,531 $ 13,270,911 $ 13,964,549 $ 14,300,531
Reconciliation of Total Stockholders' Equity to Adjusted Stockholders' Equity
Total stockholders' equity $ 1,461,513 $ 1,521,387 $ 1,585,926 $ 1,607,813 $ 1,652,492 $ 1,530,114 $ 1,642,680 $ 1,720,446
Less: Net unrealized gains (losses) (7,370 ) 28,916 56,227 66,377 64,564 (1,318 ) 93,726 105,758
Adjusted stockholders’ equity $ 1,468,882 $ 1,492,471 $ 1,529,699 $ 1,541,436 $ 1,587,928 $ 1,531,431 $ 1,548,954 $ 1,614,688
Adjusted Stockholders' Equity Rollforward
Balance, beginning of period $ 1,447,972 $ 1,468,882 $ 1,492,471 $ 1,529,699 $ 1,541,436 $ 1,587,928 $ 1,531,431 $ 1,548,954
Net Income 86,541 79,166 97,446 96,223 93,557 72,469 101,510 112,101
Shareholder dividends (10,856 ) (14,628 ) (14,517 ) (14,324 ) (14,162 ) (16,530 ) (16,083 ) (15,882 )
Retirement of shares and warrants (43,338 ) (60,288 ) (57,117 ) (70,679 ) (44,137 ) (95,676 ) (86,513 ) (41,556 )
Net foreign currency translation adjustment (15,765 ) 6,167 6,639 (4,007 ) 6,500 (29,011 ) 13,645 6,312
Other, net 4,328 13,171 4,778 4,524 4,734 12,252 4,964 4,759
Balance, end of period $ 1,468,882 $ 1,492,471 $ 1,529,699 $ 1,541,436 $ 1,587,928 $ 1,531,431 $ 1,548,954 $ 1,614,688
Deferred Policy Acquisition Costs Rollforward
Balance, beginning of period $ 2,107,814 $ 2,133,920 $ 2,181,741 $ 2,238,315 $ 2,281,560 $ 2,325,750 $ 2,346,656 $ 2,434,462
General expenses deferred 8,497 9,163 9,384 9,468 8,608 9,726 9,205 9,702
Commission costs deferred 96,697 98,196 100,498 100,913 97,538 104,793 120,967 130,719
Amortization of deferred policy acquisition costs (66,184 ) (64,628 ) (58,762 ) (63,883 ) (67,279 ) (70,311 ) (53,177 ) (47,491 )
Foreign currency impact and other, net (12,904 ) 5,091 5,455 (3,254 ) 5,322 (23,302 ) 10,812 5,017
Balance, end of period $ 2,133,920 $ 2,181,741 $ 2,238,315 $ 2,281,560 $ 2,325,750 $ 2,346,656 $ 2,434,462 $ 2,532,409

All values are in US Dollars.

(1) Outstanding common shares exclude restricted stock units.

4 of 16

Financial Results and Other Statistical Data PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q3 YOY YTD
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(Dollars in thousands, except per-share data) Q1<br><br><br>2019 Q2<br><br><br>2019 Q3<br><br><br>2019 Q4<br><br><br>2019 Q1<br><br><br>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 /#<br>Change %<br><br><br>Change YTD<br><br><br>2019 YTD<br><br><br>2020 /#<br>Change %<br><br><br>Change
Earnings per Share
Basic earnings per share:
Weighted-average common shares and fully vested equity awards 42,824,471 42,482,631 41,963,672 41,470,805 41,131,200 40,131,877 39,587,978 ) -5.7 % 42,420,438 40,281,146 ) -5.0%
Net income $ 79,166 $ 97,446 $ 96,223 $ 93,557 $ 72,469 $ 101,510 $ 112,101 16.5 % $ 272,834 $ 286,080 4.9%
Less income attributable to unvested participating securities (401 ) (428 ) (415 ) (402 ) (310 ) (437 ) (493 ) ) -18.9 % (1,251 ) (1,239 ) 1.0%
Net income used in computing basic EPS $ 78,765 $ 97,018 $ 95,808 $ 93,155 $ 72,159 $ 101,073 $ 111,608 16.5 % $ 271,582 $ 284,841 4.9%
Basic earnings per share $ 1.84 $ 2.28 $ 2.28 $ 2.25 $ 1.75 $ 2.52 $ 2.82 23.5 % $ 6.40 $ 7.07 10.5%
Adjusted net operating income $ 75,303 $ 94,759 $ 95,592 $ 92,776 $ 85,047 $ 98,480 $ 110,718 15.8 % $ 265,655 $ 294,245 10.8%
Less operating income attributable to unvested participating securities (381 ) (416 ) (412 ) (399 ) (364 ) (424 ) (487 ) ) -18.2 % (1,219 ) (1,274 ) ) -4.5%
Adjusted net operating income used in computing basic operating EPS $ 74,922 $ 94,343 $ 95,181 $ 92,377 $ 84,682 $ 98,056 $ 110,231 15.8 % $ 264,436 $ 292,971 10.8%
Basic adjusted operating income per share $ 1.75 $ 2.22 $ 2.27 $ 2.23 $ 2.06 $ 2.44 $ 2.78 22.8 % $ 6.23 $ 7.27 16.7%
Diluted earnings per share:
Weighted-average common shares and fully vested equity awards 42,824,471 42,482,631 41,963,672 41,470,805 41,131,200 40,131,877 39,587,978 ) -5.7 % 42,420,438 40,281,146 ) -5.0%
Dilutive impact of contingently issuable shares 118,014 135,719 135,887 143,224 107,361 114,090 122,097 ) -10.1 % 129,874 114,516 ) -11.8%
Shares used to calculate diluted EPS 42,942,485 42,618,350 42,099,559 41,614,029 41,238,561 40,245,967 39,710,075 ) -5.7 % 42,550,312 40,395,662 ) -5.1%
Net income $ 79,166 $ 97,446 $ 96,223 $ 93,557 $ 72,469 $ 101,510 $ 112,101 16.5 % $ 272,834 $ 286,080 4.9%
Less income attributable to unvested participating securities (400 ) (427 ) (413 ) (401 ) (310 ) (436 ) (492 ) ) -18.9 % (1,248 ) (1,236 ) 1.0%
Net income used in computing diluted EPS $ 78,766 $ 97,019 $ 95,809 $ 93,156 $ 72,159 $ 101,074 $ 111,609 16.5 % $ 271,585 $ 284,844 4.9%
Diluted earnings per share $ 1.83 $ 2.28 $ 2.28 $ 2.24 $ 1.75 $ 2.51 $ 2.81 23.5 % $ 6.38 $ 7.05 10.5%
Adjusted net operating income $ 75,303 $ 94,759 $ 95,592 $ 92,776 $ 85,047 $ 98,480 $ 110,718 15.8 % $ 265,655 $ 294,245 10.8%
Less operating income attributable to unvested participating securities (381 ) (415 ) (411 ) (398 ) (364 ) (423 ) (486 ) ) -18.3 % (1,215 ) (1,271 ) ) -4.6%
Adjusted net operating income used in computing diluted operating EPS $ 74,923 $ 94,344 $ 95,182 $ 92,379 $ 84,683 $ 98,057 $ 110,232 15.8 % $ 264,439 $ 292,974 10.8%
Diluted adjusted operating income per share $ 1.74 $ 2.21 $ 2.26 $ 2.22 $ 2.05 $ 2.44 $ 2.78 22.8 % $ 6.21 $ 7.25 16.7%

All values are in US Dollars.

YOY Q3 YOY YTD
Q1<br><br><br>2019 Q2<br><br><br>2019 Q3<br><br><br>2019 Q4<br><br><br>2019 Q1<br><br><br>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 /#<br>Change %<br><br><br>Change YTD<br><br><br>2019 YTD<br><br><br>2020 /#<br>Change %<br><br><br>Change
Annualized Return on Equity
Average stockholders' equity $ 1,491,450 $ 1,553,656 $ 1,596,869 $ 1,630,152 $ 1,591,303 $ 1,586,397 $ 1,681,563 5.3 % $ 1,547,325 $ 1,619,754 4.7 %
Average adjusted stockholders' equity $ 1,480,676 $ 1,511,085 $ 1,535,567 $ 1,564,682 $ 1,559,680 $ 1,540,193 $ 1,581,821 3.0 % $ 1,509,109 $ 1,560,564 3.4 %
Net income return on stockholders' equity 21.2 % 25.1 % 24.1 % 23.0 % 18.2 % 25.6 % 26.7 % % nm 23.5 % 23.5 % % nm
Net income return on adjusted stockholders' equity 21.4 % 25.8 % 25.1 % 23.9 % 18.6 % 26.4 % 28.3 % % nm 24.1 % 24.4 % % nm
Adjusted net operating income return on adjusted stockholders' equity 20.3 % 25.1 % 24.9 % 23.7 % 21.8 % 25.6 % 28.0 % % nm 23.5 % 25.1 % % nm
Capital Structure
Debt-to-capital (1) 19.7 % 19.1 % 18.9 % 18.5 % 19.6 % 18.6 % 17.9 % % nm 18.9 % 17.9 % % nm
Cash and invested assets to stockholders' equity 2.3 x 2.3 x 2.3 x 2.4 x 2.5 x 2.5 x 2.4 x x nm 2.3 x 2.4 x x nm
Cash and invested assets to adjusted stockholders' equity 2.4 x 2.4 x 2.4 x 2.5 x 2.5 x 2.6 x 2.6 x x nm 2.4 x 2.6 x x nm
Share count, end of period (2) 42,398,643 42,008,450 41,491,998 41,206,504 40,459,767 39,667,002 39,374,259 ) -5.1 % 41,491,998 39,374,259 ) -5.1 %
Adjusted stockholders' equity per share $ 35.20 $ 36.41 $ 37.15 $ 38.54 $ 37.85 $ 39.05 $ 41.01 10.4 % $ 37.15 $ 41.01 10.4 %
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) Debt-to-capital is that of the parent company only.  Capital in the debt-to-capital ratio includes stockholders' equity and the note payable.
(2) Share count reflects outstanding common shares, but excludes restricted stock units (RSUs).
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5 of 16

Statements of Income PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q3 YOY YTD
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(Dollars in thousands) Q1<br><br><br>2019 Q2<br><br><br>2019 Q3<br><br><br>2019 Q4<br><br><br>2019 Q1<br><br><br>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 Change %<br><br><br>Change YTD<br><br><br>2019 YTD<br><br><br>2020 Change %<br><br><br>Change
Statement of Income
Revenues:
Direct premiums $ 677,286 $ 687,262 $ 692,258 $ 697,060 $ 702,637 $ 717,088 $ 736,606 6.4 % $ 2,056,806 $ 2,156,331 4.8 %
Ceded premiums (389,795 ) (400,588 ) (388,982 ) (390,364 ) (386,825 ) (402,549 ) (393,716 ) ) -1.2 % (1,179,364 ) (1,183,090 ) ) -0.3 %
Net premiums 287,491 286,675 303,276 306,696 315,813 314,539 342,890 13.1 % 877,442 973,241 10.9 %
Net investment income 24,111 24,868 22,675 22,418 15,420 22,710 22,953 1.2 % 71,655 61,083 ) -14.8 %
Commissions and fees:
Sales-based (1) 66,997 71,438 69,034 75,418 80,891 62,812 65,600 ) -5.0 % 207,469 209,304 0.9 %
Asset-based (2) 73,639 79,317 81,009 84,184 81,395 78,146 86,695 7.0 % 233,965 246,235 5.2 %
Account-based (3) 19,613 19,897 20,449 20,598 20,204 20,478 21,008 2.7 % 59,958 61,690 2.9 %
Other commissions and fees 7,066 7,817 9,227 8,103 7,579 10,352 11,999 30.0 % 24,110 29,930 24.1 %
Realized investment (losses) gains 2,847 1,067 285 766 (10,030 ) 1,742 642 125.2 % 4,200 (7,645 ) ) nm
Other, net 13,223 13,825 14,698 13,778 13,665 15,036 16,674 13.4 % 41,746 45,375 8.7 %
Total revenues 494,988 504,903 520,654 531,959 524,936 525,815 568,460 9.2 % 1,520,544 1,619,211 6.5 %
Benefits and expenses:
Benefits and claims 122,284 115,068 128,684 127,784 134,813 139,646 160,166 24.5 % 366,036 434,625 18.7 %
Amortization of DAC 64,628 58,762 63,883 67,279 70,311 53,177 47,491 ) -25.7 % 187,273 170,979 ) -8.7 %
Insurance commissions 5,619 5,829 6,980 6,624 6,844 6,333 9,694 38.9 % 18,427 22,871 24.1 %
Insurance expenses 43,402 44,569 44,854 45,991 48,709 43,753 46,109 2.8 % 132,826 138,571 4.3 %
Sales commissions:
Sales-based (1) 47,831 50,679 48,652 52,529 56,561 44,834 46,821 ) -3.8 % 147,161 148,217 0.7 %
Asset-based (2) 32,343 35,665 35,875 37,772 36,323 35,673 39,349 9.7 % 103,882 111,345 7.2 %
Other sales commissions 3,626 3,755 4,535 3,937 3,723 4,985 5,779 27.4 % 11,916 14,487 21.6 %
Interest expense 7,180 7,201 7,209 7,222 7,192 7,200 7,221 0.2 % 21,589 21,614 0.1 %
Other operating expenses 65,706 55,917 54,844 60,676 65,914 56,152 59,348 8.2 % 176,467 181,414 2.8 %
Total benefits and expenses 392,619 377,444 395,515 409,815 430,391 391,753 421,978 6.7 % 1,165,578 1,244,122 6.7 %
Income before income taxes 102,368 127,459 125,138 122,145 94,546 134,062 146,482 17.1 % 354,966 375,090 5.7 %
Income taxes 23,203 30,014 28,916 28,588 22,077 32,552 34,382 18.9 % 82,133 89,010 8.4 %
Net income $ 79,166 $ 97,446 $ 96,223 $ 93,557 $ 72,469 $ 101,510 $ 112,101 16.5 % $ 272,834 $ 286,080 4.9 %
Income Before Income Taxes by Segment
Term Life $ 70,339 $ 83,999 $ 83,761 $ 81,995 $ 82,892 $ 94,903 $ 105,316 25.7 % $ 238,098 $ 283,111 18.9 %
Investment & Savings Products 42,684 47,343 48,794 52,991 47,700 46,859 51,372 5.3 % 138,821 145,931 5.1 %
Corporate & Other Distributed Products (10,654 ) (3,882 ) (7,416 ) (12,841 ) (36,046 ) (7,700 ) (10,206 ) ) -37.6 % (21,953 ) (53,952 ) ) -145.8 %
Income before income taxes $ 102,368 $ 127,459 $ 125,138 $ 122,145 $ 94,546 $ 134,062 $ 146,482 17.1 % $ 354,966 $ 375,090 5.7 %

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.
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(3) Account-based - revenues relating to the fee generating client accounts we administer.
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6 of 16

Reconciliation of Statement of Income GAAP to Non-GAAP Financial Measures PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br><br><br>2019 Q2<br><br><br>2019 Q3<br><br><br>2019 Q4<br><br><br>2019 Q1<br><br><br>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 Change %<br><br><br>Change YTD<br><br><br>2019 YTD<br><br><br>2020 Change %<br><br><br>Change
Reconciliation from Term Life Direct Premiums to Term Life Adjusted Direct Premiums
Term Life direct premiums $ 670,755 $ 681,004 $ 685,539 $ 691,546 $ 696,564 $ 711,188 $ 730,273 6.5 % $ 2,037,298 $ 2,138,024 4.9 %
Less: Premiums ceded to IPO Coinsurers 276,150 272,596 267,856 264,786 260,076 257,529 254,938 ) -4.8 % 816,602 772,543 ) -5.4 %
Term Life adjusted direct premiums $ 394,605 $ 408,408 $ 417,683 $ 426,761 $ 436,488 $ 453,659 $ 475,335 13.8 % $ 1,220,696 $ 1,365,482 11.9 %
Reconciliation from Term Life Ceded Premiums to Term Life Other Ceded Premiums
Term Life ceded premiums $ (388,100 ) $ (398,927 ) $ (387,120 ) $ (388,237 ) $ (385,232 ) $ (400,919 ) $ (392,004 ) ) -1.3 % $ (1,174,147 ) $ (1,178,155 ) ) -0.3 %
Less: Premiums ceded to IPO Coinsurers (276,150 ) (272,596 ) (267,856 ) (264,786 ) (260,076 ) (257,529 ) (254,938 ) 4.8 % (816,602 ) (772,543 ) 5.4 %
Term Life other ceded premiums $ (111,950 ) $ (126,330 ) $ (119,264 ) $ (123,451 ) $ (125,156 ) $ (143,390 ) $ (137,066 ) ) -14.9 % $ (357,544 ) $ (405,612 ) ) -13.4 %
Reconciliation from Net Investment Income to Adjusted Net Investment Income
Net Investment Income $ 24,111 $ 24,868 $ 22,675 $ 22,418 $ 15,420 $ 22,710 $ 22,953 1.2 % $ 71,655 $ 61,083 ) -14.8 %
Less: MTM investment adjustments 2,147 2,447 534 254 (6,379 ) 2,259 1,165 nm nm 5,129 (2,956 ) nm nm
Adjusted net investment income $ 21,964 $ 22,421 $ 22,141 $ 22,165 $ 21,799 $ 20,451 $ 21,788 ) -1.6 % $ 66,526 $ 64,038 ) -3.7 %
Reconciliation from Total Revenues to Adjusted Operating Revenues
Total revenues $ 494,988 $ 504,903 $ 520,654 $ 531,959 $ 524,936 $ 525,815 $ 568,460 9.2 % $ 1,520,544 $ 1,619,211 6.5 %
Less: Realized investment gains/(losses) 2,847 1,067 285 766 (10,030 ) 1,742 642 nm nm 4,200 (7,645 ) nm nm
Less: MTM investment adjustments 2,147 2,447 534 254 (6,379 ) 2,259 1,165 nm nm 5,129 (2,956 ) nm nm
Adjusted operating revenues $ 489,993 $ 501,389 $ 519,834 $ 530,940 $ 541,346 $ 521,813 $ 566,653 9.0 % $ 1,511,216 $ 1,629,812 7.8 %
Reconciliation from Income Before Income Taxes to Adjusted Operating Income Before Income Taxes
Income before income taxes $ 102,368 $ 127,459 $ 125,138 $ 122,145 $ 94,546 $ 134,062 $ 146,482 17.1 % $ 354,966 $ 375,090 5.7 %
Less: Realized investment gains/(losses) 2,847 1,067 285 766 (10,030 ) 1,742 642 nm nm 4,200 (7,645 ) nm nm
Less: MTM investment adjustments 2,147 2,447 534 254 (6,379 ) 2,259 1,165 nm nm 5,129 (2,956 ) nm nm
Adjusted operating income before income taxes $ 97,374 $ 123,945 $ 124,319 $ 121,125 $ 110,955 $ 130,060 $ 144,676 16.4 % $ 345,638 $ 385,691 11.6 %
Reconciliation from Net Income to Adjusted Net Operating Income
Net income $ 79,166 $ 97,446 $ 96,223 $ 93,557 $ 72,469 $ 101,510 $ 112,101 16.5 % $ 272,834 $ 286,080 4.9 %
Less: Income before income taxes reconciling items 4,994 3,514 819 1,019 (16,409 ) 4,002 1,807 nm nm 9,328 (10,601 ) nm nm
Less: Tax impact of income before income taxes reconciling items (1,132 ) (828 ) (189 ) (239 ) 3,832 (972 ) (424 ) nm nm (2,149 ) 2,436 nm nm
Adjusted net operating income $ 75,303 $ 94,759 $ 95,592 $ 92,776 $ 85,047 $ 98,480 $ 110,718 15.8 % $ 265,655 $ 294,245 10.8 %

All values are in US Dollars.

7 of 16

Segment Operating Results PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q3 YOY YTD
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(Dollars in thousands) Q1<br><br><br>2019 Q2<br><br><br>2019 Q3<br><br><br>2019 Q4<br><br><br>2019 Q1<br><br><br>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 Change %<br><br><br>Change YTD<br><br><br>2019 YTD<br><br><br>2020 Change %<br><br><br>Change
Term Life Insurance
Revenues:
Direct Premiums $ 670,755 $ 681,004 $ 685,539 $ 691,546 $ 696,564 $ 711,188 $ 730,273 6.5 % $ 2,037,298 $ 2,138,024 4.9 %
Premiums ceded to IPO coinsurers (1) (276,150 ) (272,596 ) (267,856 ) (264,786 ) (260,076 ) (257,529 ) (254,938 ) 4.8 % (816,602 ) (772,543 ) 5.4 %
Adjusted direct premiums (2) 394,605 408,408 417,683 426,761 436,488 453,659 475,335 13.8 % 1,220,696 1,365,482 11.9 %
Other ceded premiums (3) (111,950 ) (126,330 ) (119,264 ) (123,451 ) (125,156 ) (143,390 ) (137,066 ) ) -14.9 % (357,544 ) (405,612 ) ) -13.4 %
Net premiums 282,655 282,077 298,419 303,310 311,332 310,269 338,269 13.4 % 863,151 959,870 11.2 %
Allocated net investment income 4,444 4,736 5,123 5,619 6,246 6,538 6,813 33.0 % 14,303 19,598 37.0 %
Other, net 9,744 10,055 10,985 10,063 10,168 11,426 12,717 15.8 % 30,785 34,311 11.5 %
Revenues 296,843 296,869 314,527 318,992 327,747 328,233 357,799 13.8 % 908,239 1,013,779 11.6 %
Benefits and expenses:
Benefits and claims 118,443 111,480 122,751 122,657 128,563 135,409 156,209 27.3 % 352,674 420,182 19.1 %
Amortization of DAC 64,066 56,179 61,548 66,918 65,840 52,730 45,529 ) -26.0 % 181,792 164,099 ) -9.7 %
Insurance commissions 2,163 2,298 3,311 3,009 3,286 2,884 5,946 79.6 % 7,772 12,115 55.9 %
Insurance expenses 41,832 42,914 43,157 44,413 47,165 42,306 44,800 3.8 % 127,902 134,272 5.0 %
Benefits and expenses 226,504 212,870 230,766 236,997 244,855 233,330 252,483 9.4 % 670,141 730,668 9.0 %
Income before income taxes $ 70,339 $ 83,999 $ 83,761 $ 81,995 $ 82,892 $ 94,903 $ 105,316 25.7 % $ 238,098 $ 283,111 18.9 %
Investment & Savings Products
Revenues:
Commissions and fees:
Sales-based $ 66,997 $ 71,438 $ 69,034 $ 75,418 $ 80,891 $ 62,812 $ 65,600 ) -5.0 % $ 207,469 $ 209,304 0.9 %
Asset-based 73,639 79,317 81,009 84,184 81,395 78,146 86,695 7.0 % 233,965 246,235 5.2 %
Account-based 19,613 19,897 20,449 20,598 20,204 20,478 21,008 2.7 % 59,958 61,690 2.9 %
Other, net 2,423 2,434 2,661 2,500 2,542 2,745 3,034 14.1 % 7,517 8,322 10.7 %
Revenues 162,671 173,085 173,153 182,699 185,033 164,180 176,338 1.8 % 508,909 525,551 3.3 %
Benefits and expenses:
Amortization of DAC 477 2,101 2,044 (74 ) 4,305 100 1,667 ) -18.5 % 4,622 6,072 31.4 %
Insurance commissions 3,025 3,155 3,257 3,297 3,201 3,106 3,377 3.7 % 9,437 9,684 2.6 %
Sales commissions:
Sales-based 47,831 50,679 48,652 52,529 56,561 44,834 46,821 ) -3.8 % 147,161 148,217 0.7 %
Asset-based 32,343 35,665 35,875 37,772 36,323 35,673 39,349 9.7 % 103,882 111,345 7.2 %
Other operating expenses 36,312 34,143 34,530 36,182 36,942 33,608 33,751 ) -2.3 % 104,986 104,302 ) -0.7 %
Benefits and expenses 119,988 125,742 124,359 129,707 137,332 117,321 124,966 0.5 % 370,089 379,619 2.6 %
Income before income taxes $ 42,684 $ 47,343 $ 48,794 $ 52,991 $ 47,700 $ 46,859 $ 51,372 5.3 % $ 138,821 $ 145,931 5.1 %
Corporate & Other Distributed Products
Revenues:
Direct premiums $ 6,531 $ 6,258 $ 6,719 $ 5,514 $ 6,074 $ 5,900 $ 6,333 ) -5.8 % $ 19,508 $ 18,307 ) -6.2 %
Ceded premiums (1,695 ) (1,661 ) (1,862 ) (2,128 ) (1,593 ) (1,631 ) (1,712 ) 8.0 % (5,217 ) (4,935 ) 5.4 %
Net premiums 4,836 4,597 4,858 3,386 4,480 4,270 4,621 ) -4.9 % 14,291 13,371 ) -6.4 %
Allocated net investment income 17,521 17,684 17,018 16,545 15,553 13,913 14,975 ) -12.0 % 52,223 44,440 ) -14.9 %
Commissions and fees:
Prepaid Legal Services 3,737 4,159 4,776 3,905 3,829 4,557 4,942 3.5 % 12,672 13,328 5.2 %
Auto and Homeowners Insurance 1,500 1,877 2,165 1,766 1,672 2,263 1,985 ) -8.3 % 5,542 5,920 6.8 %
Other sales commissions 1,829 1,781 2,286 2,432 2,077 3,533 5,072 121.9 % 5,896 10,682 81.2 %
Other, net 1,056 1,336 1,052 1,215 954 865 922 ) -12.3 % 3,445 2,742 ) -20.4 %
Adjusted operating revenues 30,479 31,435 32,154 29,250 28,566 29,400 32,516 1.1 % 94,068 90,483 ) -3.8 %
Benefits and expenses:
Benefits and claims 3,842 3,588 5,933 5,127 6,249 4,236 3,957 ) -33.3 % 13,363 14,443 8.1 %
Amortization of DAC 85 482 291 434 166 346 295 1.3 % 858 807 ) -6.0 %
Insurance commissions 431 376 411 318 357 343 371 ) -9.8 % 1,218 1,072 ) -12.0 %
Insurance expenses 1,570 1,656 1,697 1,578 1,544 1,447 1,309 ) -22.9 % 4,923 4,300 ) -12.7 %
Sales commissions 3,626 3,755 4,535 3,937 3,723 4,985 5,779 27.4 % 11,916 14,487 21.6 %
Interest expense 7,180 7,201 7,209 7,222 7,192 7,200 7,221 0.2 % 21,589 21,614 0.1 %
Other operating expenses 29,394 21,774 20,314 24,494 28,972 22,544 25,597 26.0 % 71,482 77,112 7.9 %
Benefits and expenses 46,127 38,831 40,390 43,110 48,203 41,102 44,529 10.2 % 125,348 133,834 6.8 %
Adjusted operating income before income taxes $ (15,648 ) $ (7,396 ) $ (8,236 ) $ (13,861 ) $ (19,637 ) $ (11,702 ) $ (12,013 ) ) -45.9 % $ (31,281 ) $ (43,351 ) ) -38.6 %

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.
--- ---

8 of 16

Term Life Insurance - Financial Results and Analysis PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br><br><br>2019 Q2<br><br><br>2019 Q3<br><br><br>2019 Q4<br><br><br>2019 Q1<br><br><br>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 Change %<br><br><br>Change YTD<br><br><br>2019 YTD<br><br><br>2020 Change %<br><br><br>Change
Term Life Insurance Income Before Income Taxes
Revenues:
Direct Premiums $ 670,755 $ 681,004 $ 685,539 $ 691,546 $ 696,564 $ 711,188 $ 730,273 6.5 % $ 2,037,298 $ 2,138,024 4.9 %
Premiums ceded to IPO coinsurers (1) (276,150 ) (272,596 ) (267,856 ) (264,786 ) (260,076 ) (257,529 ) (254,938 ) 4.8 % (816,602 ) (772,543 ) 5.4 %
Adjusted direct premiums (2) 394,605 408,408 417,683 426,761 436,488 453,659 475,335 13.8 % 1,220,696 1,365,482 11.9 %
Other ceded premiums (3) (111,950 ) (126,330 ) (119,264 ) (123,451 ) (125,156 ) (143,390 ) (137,066 ) ) -14.9 % (357,544 ) (405,612 ) ) -13.4 %
Net premiums 282,655 282,077 298,419 303,310 311,332 310,269 338,269 13.4 % 863,151 959,870 11.2 %
Allocated net investment income 4,444 4,736 5,123 5,619 6,246 6,538 6,813 33.0 % 14,303 19,598 37.0 %
Other, net 9,744 10,055 10,985 10,063 10,168 11,426 12,717 15.8 % 30,785 34,311 11.5 %
Revenues 296,843 296,869 314,527 318,992 327,747 328,233 357,799 13.8 % 908,239 1,013,779 11.6 %
Benefits and expenses:
Benefits and claims 118,443 111,480 122,751 122,657 128,563 135,409 156,209 27.3 % 352,674 420,182 19.1 %
Amortization of DAC 64,066 56,179 61,548 66,918 65,840 52,730 45,529 ) -26.0 % 181,792 164,099 ) -9.7 %
Insurance commissions 2,163 2,298 3,311 3,009 3,286 2,884 5,946 79.6 % 7,772 12,115 55.9 %
Insurance expenses 41,832 42,914 43,157 44,413 47,165 42,306 44,800 3.8 % 127,902 134,272 5.0 %
Benefits and expenses 226,504 212,870 230,766 236,997 244,855 233,330 252,483 9.4 % 670,141 730,668 9.0 %
Income before income taxes $ 70,339 $ 83,999 $ 83,761 $ 81,995 $ 82,892 $ 94,903 $ 105,316 25.7 % $ 238,098 $ 283,111 18.9 %
Total Term Life Insurance - Financial Analysis
Post-IPO direct premiums (4) $ 300,708 $ 312,436 $ 320,424 $ 327,939 $ 336,921 $ 352,353 $ 372,852 16.4 % $ 933,568 $ 1,062,125 13.8 %
Pre-IPO direct premiums (5) 370,047 368,568 365,115 363,607 359,643 358,835 357,421 ) -2.1 % 1,103,730 1,075,899 ) -2.5 %
Total direct premiums $ 670,755 $ 681,004 $ 685,539 $ 691,546 $ 696,564 $ 711,188 $ 730,273 6.5 % $ 2,037,298 $ 2,138,024 4.9 %
Premiums ceded to IPO coinsurers $ 276,150 $ 272,596 $ 267,856 $ 264,786 $ 260,076 $ 257,529 $ 254,938 ) -4.8 % $ 816,602 $ 772,543 ) -5.4 %
% of Pre-IPO direct premiums 74.6 % 74.0 % 73.4 % 72.8 % 72.3 % 71.8 % 71.3 % nm nm 74.0 % 71.8 % nm nm
Benefits and claims, net (6) $ 230,392 $ 237,810 $ 242,016 $ 246,108 $ 253,719 $ 278,799 $ 293,275 21.2 % $ 710,218 $ 825,793 16.3 %
% of adjusted direct premiums 58.4 % 58.2 % 57.9 % 57.7 % 58.1 % 61.5 % 61.7 % nm nm 58.2 % 60.5 % nm nm
DAC amortization & insurance commissions $ 66,229 $ 58,477 $ 64,858 $ 69,927 $ 69,126 $ 55,614 $ 51,474 ) -20.6 % $ 189,565 $ 176,214 ) -7.0 %
% of adjusted direct premiums 16.8 % 14.3 % 15.5 % 16.4 % 15.8 % 12.3 % 10.8 % nm nm 15.5 % 12.9 % nm nm
Insurance expenses, net (7) $ 32,088 $ 32,858 $ 32,171 $ 34,351 $ 36,997 $ 30,881 $ 32,083 ) -0.3 % $ 97,118 $ 99,961 2.9 %
% of adjusted direct premiums 8.1 % 8.0 % 7.7 % 8.0 % 8.5 % 6.8 % 6.7 % nm nm 8.0 % 7.3 % nm nm
Total Term Life income before income taxes $ 70,339 $ 83,999 $ 83,761 $ 81,995 $ 82,892 $ 94,903 $ 105,316 25.7 % $ 238,098 $ 283,111 18.9 %
Term Life operating margin (8) 17.8 % 20.6 % 20.1 % 19.2 % 19.0 % 20.9 % 22.2 % nm nm 19.5 % 20.7 % nm nm

All values are in US Dollars.

(1) Premiums ceded to IPO coinsurers - premiums ceded to IPO coinsurers under the IPO coinsurance transactions excluding any reimbursements from the IPO coinsurers on previously existing reinsurance agreements.
(2) Adjusted direct premiums - direct premiums net of premiums ceded to IPO coinsurers.
--- ---
(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.
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9 of 16

Term Life Insurance - Key Statistics PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br><br><br>2019 Q2<br><br><br>2019 Q3<br><br><br>2019 Q4<br><br><br>2019 Q1<br><br><br>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 /#<br>Change %<br><br><br>Change YTD<br><br><br>2019 YTD<br><br><br>2020 /#<br>Change %<br><br><br>Change
Key Statistics
Life-insurance licensed sales force, beginning of period 130,736 129,821 129,550 130,871 130,522 130,095 134,157 3.6 % 130,736 130,522 ) -0.2 %
10,065 10,919 12,682 11,073 10,599 12,250 13,138 3.6 % 33,666 35,987 6.9 %
(10,980 ) (11,190 ) (11,361 ) (11,422 ) (11,026 ) (8,188 ) (10,989 ) 3.3 % (33,531 ) (30,203 ) 9.9 %
Life-insurance licensed sales force, end of period 129,821 129,550 130,871 130,522 130,095 134,157 136,306 4.2 % 130,871 136,306 4.2 %
Estimated annualized issued term life premium (mills) (1):
$ 54.1 $ 65.8 $ 63.1 $ 61.8 $ 61.5 $ 77.7 $ 86.0 36.3 % $ 183.1 $ 225.2 23.0 %
13.8 15.8 15.1 15.4 15.0 17.8 17.9 18.2 % 44.8 50.7 13.3 %
Total estimated annualized issued term life premium $ 68.0 $ 81.6 $ 78.2 $ 77.2 $ 76.5 $ 95.5 $ 103.9 32.8 % $ 227.9 $ 276.0 21.1 %
Issued term life policies 64,242 78,664 73,434 71,469 71,318 94,044 100,199 36.4 % 216,340 265,561 22.8 %
Estimated average annualized issued term life premium per policy (1)(2) $ 843 $ 837 $ 859 $ 864 $ 863 $ 826 $ 858 ) -0.1 % $ 846 $ 848 0.2 %
Term life face amount in-force, beginning of period (mills) $ 781,041 $ 785,552 $ 796,376 $ 801,494 $ 808,262 $ 804,512 $ 821,998 3.2 % $ 781,041 $ 808,262 3.5 %
20,925 25,300 24,087 23,682 23,221 27,754 30,104 25.0 % 70,312 81,079 15.3 %
(18,383 ) (16,512 ) (17,740 ) (18,884 ) (18,294 ) (14,315 ) (13,733 ) 22.6 % (52,635 ) (46,343 ) 12.0 %
1,969 2,036 (1,228 ) 1,970 (8,676 ) 4,046 1,859 nm 2,776 (2,772 ) ) nm
Term life face amount in-force, end of period $ 785,552 $ 796,376 $ 801,494 $ 808,262 $ 804,512 $ 821,998 $ 840,227 4.8 % $ 801,494 $ 840,227 4.8 %

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 16

Investment and Savings Products - Financial Results and Financial Analysis PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br><br><br>2019 Q2<br><br><br>2019 Q3<br><br><br>2019 Q4<br><br><br>2019 Q1<br><br><br>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 Change %<br><br><br>Change YTD<br><br><br>2019 YTD<br><br><br>2020 Change %<br><br><br>Change
Investment & Savings Products Income Before Income Taxes
Revenues:
Commissions and fees:
Sales-based $ 66,997 $ 71,438 $ 69,034 $ 75,418 $ 80,891 $ 62,812 $ 65,600 ) -5.0 % $ 207,469 $ 209,304 0.9 %
Asset-based 73,639 79,317 81,009 84,184 81,395 78,146 86,695 7.0 % 233,965 246,235 5.2 %
Account-based 19,613 19,897 20,449 20,598 20,204 20,478 21,008 2.7 % 59,958 61,690 2.9 %
Other, net 2,423 2,434 2,661 2,500 2,542 2,745 3,034 14.1 % 7,517 8,322 10.7 %
Revenues 162,671 173,085 173,153 182,699 185,033 164,180 176,338 1.8 % 508,909 525,551 3.3 %
Benefits and expenses:
Amortization of DAC 477 2,101 2,044 (74 ) 4,305 100 1,667 ) -18.5 % 4,622 6,072 31.4 %
Insurance commissions 3,025 3,155 3,257 3,297 3,201 3,106 3,377 3.7 % 9,437 9,684 2.6 %
Sales commissions:
Sales-based 47,831 50,679 48,652 52,529 56,561 44,834 46,821 ) -3.8 % 147,161 148,217 0.7 %
Asset-based 32,343 35,665 35,875 37,772 36,323 35,673 39,349 9.7 % 103,882 111,345 7.2 %
Other operating expenses 36,312 34,143 34,530 36,182 36,942 33,608 33,751 ) -2.3 % 104,986 104,302 ) -0.7 %
Benefits and expenses 119,988 125,742 124,359 129,707 137,332 117,321 124,966 0.5 % 370,089 379,619 2.6 %
Income before income taxes $ 42,684 $ 47,343 $ 48,794 $ 52,991 $ 47,700 $ 46,859 $ 51,372 5.3 % $ 138,821 $ 145,931 5.1 %
Financial Analysis
Fees paid based on client asset values (1) $ 5,898 $ 5,705 $ 6,225 $ 6,169 $ 5,990 $ 5,712 $ 6,284 0.9 % $ 17,828 $ 17,986 0.9 %
Fees paid based on fee-generating positions (2) 11,159 9,658 9,354 9,648 10,248 9,094 8,747 ) -6.5 % 30,172 28,090 ) -6.9 %
Other operating expenses 19,254 18,780 18,951 20,365 20,704 18,803 18,719 ) -1.2 % 56,985 58,226 2.2 %
Total other operating expenses $ 36,312 $ 34,143 $ 34,530 $ 36,182 $ 36,942 $ 33,608 $ 33,751 ) -2.3 % $ 104,986 $ 104,302 ) -0.7 %
Sales-based net revenue as % of revenue-generating sales (3)
U.S. 1.33 % 1.29 % 1.31 % 1.41 % 1.34 % 1.33 % 1.27 % nm nm 1.31 % 1.31 % nm nm
Canada 1.00 % 0.97 % 0.96 % 0.94 % 1.06 % 0.87 % 0.93 % nm nm 0.98 % 0.97 % nm nm
Total 1.28 % 1.25 % 1.27 % 1.35 % 1.30 % 1.27 % 1.23 % nm nm 1.27 % 1.27 % nm nm
Asset-based net revenue as % of average asset values (4)
U.S. 0.036 % 0.038 % 0.038 % 0.039 % 0.038 % 0.037 % 0.038 % nm nm 0.112 % 0.113 % nm nm
Canada 0.136 % 0.120 % 0.121 % 0.138 % 0.098 % 0.133 % 0.119 % nm nm 0.375 % 0.349 % nm nm
Total 0.052 % 0.051 % 0.051 % 0.054 % 0.047 % 0.052 % 0.050 % nm nm 0.154 % 0.150 % nm nm
Account-based net revenue per average fee generating position (5)(6) $ 3.20 $ 3.88 $ 4.18 $ 4.10 $ 3.70 $ 4.19 $ 4.45 nm nm $ 11.27 $ 12.35 nm nm

All values are in US Dollars.

(1) Fees paid based on client asset values - administration fees on Canadian Segregated Funds and advisory fees on Managed Accounts that vary directly with client asset values.
(2) Fees paid based on fee-generating positions - recordkeeping fees that vary with the number of fee-generating positions.
--- ---
(3) Sales-based net revenue - commission and fee revenue less commissions paid to the sales force based on product sales activity.
--- ---
(4) Asset-based net revenue - commission and fee revenue less administration and advisory fees paid to third-party providers and commissions paid to the sales force earned based on product account values including amortization of deferred acquisition costs for segregated funds.
--- ---
(5) Account-based net revenue - fee revenue less recordkeeping fees paid to third-party providers based on fee-generating positions and certain direct general expenses.
--- ---
(6) In whole dollars.
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11 of 16

Investment and Savings Products - Key Statistics PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br><br><br>2019 Q2<br><br><br>2019 Q3<br><br><br>2019 Q4<br><br><br>2019 Q1<br><br><br>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 /#<br>Change %<br><br><br>Change YTD<br><br><br>2019 YTD<br><br><br>2020 /#<br>Change %<br><br><br>Change
Key Statistics
Product sales (mills)
$ 710.2 $ 855.9 $ 829.7 $ 831.9 $ 921.0 $ 758.4 $ 874.1 5.3 % $ 2,395.9 $ 2,553.5 6.6 %
244.1 199.7 184.9 199.0 280.9 165.2 189.6 2.6 % 628.6 635.8 1.1 %
81.0 88.2 75.0 76.3 72.2 48.4 47.2 ) -37.0 % 244.1 167.8 ) -31.3 %
465.8 514.2 512.8 583.7 600.6 440.5 421.7 ) -17.8 % 1,492.9 1,462.8 ) -2.0 %
Total sales-based revenue generating product sales 1,501.1 1,658.0 1,602.4 1,691.0 1,874.7 1,412.5 1,532.6 ) -4.4 % 4,761.5 4,819.8 1.2 %
161.6 203.5 176.9 197.4 246.2 200.1 223.0 26.1 % 542.0 669.3 23.5 %
94.3 76.0 76.4 94.6 124.8 73.9 85.3 11.7 % 246.7 284.0 15.1 %
Total product sales $ 1,757.0 $ 1,937.4 $ 1,855.7 $ 1,983.0 $ 2,245.7 $ 1,686.5 $ 1,841.0 ) -0.8 % $ 5,550.2 $ 5,773.1 4.0 %
$ 244.1 $ 199.7 $ 184.9 $ 199.0 $ 280.9 $ 165.2 $ 189.6 2.6 % $ 628.6 $ 635.8 1.1 %
94.3 76.0 76.4 94.6 124.8 73.9 85.3 11.7 % 246.7 284.0 15.1 %
Total Canada product sales 338.4 275.6 261.3 293.6 405.7 239.2 274.9 5.2 % 875.3 919.8 5.1 %
Total U.S. product sales 1,418.6 1,661.8 1,594.4 1,689.4 1,840.0 1,447.3 1,566.1 ) -1.8 % 4,674.9 4,853.4 3.8 %
Total product sales $ 1,757.0 $ 1,937.4 $ 1,855.7 $ 1,983.0 $ 2,245.7 $ 1,686.5 $ 1,841.0 ) -0.8 % $ 5,550.2 $ 5,773.1 4.0 %
Client asset values, beginning of period (mills) $ 57,704 $ 63,602 $ 65,878 $ 66,222 $ 70,537 $ 59,036 $ 68,224 3.6 % $ 57,704 $ 70,537 22.2 %
1,757 1,937 1,856 1,983 2,246 1,686 1,841 ) -0.8 % 5,550 5,773 4.0 %
(1,530 ) (1,633 ) (1,669 ) (1,596 ) (1,703 ) (1,074 ) (1,333 ) 20.1 % (4,832 ) (4,110 ) 14.9 %
Net flows 227 305 186 387 543 613 508 nm 718 1,663 nm
201 225 (136 ) 217 (978 ) 404 205 nm 290 (369 ) ) nm
5,470 1,746 294 3,710 (11,065 ) 8,171 3,669 nm 7,510 776 ) nm
Client asset values, end of period $ 63,602 $ 65,878 $ 66,222 $ 70,537 $ 59,036 $ 68,224 $ 72,606 9.6 % $ 66,222 $ 72,606 9.6 %
1.6 % 1.9 % 1.1 % 2.3 % 3.1 % 4.2 % 3.0 % % nm 1.7 % 3.1 % % nm
Average client asset values (mills)
$ 30,266 $ 31,744 $ 32,521 $ 33,658 $ 32,693 $ 31,586 $ 35,204 8.2 % $ 31,510 $ 33,161 5.2 %
7,390 7,795 7,991 8,218 7,950 7,573 8,525 6.7 % 7,725 8,016 3.8 %
3,241 3,455 3,652 3,901 3,905 3,871 4,325 18.4 % 3,450 4,034 16.9 %
2,182 2,247 2,296 2,342 2,389 2,427 2,446 6.6 % 2,242 2,421 8.0 %
16,057 16,807 17,114 17,661 17,292 16,890 18,551 8.4 % 16,659 17,577 5.5 %
2,314 2,378 2,428 2,455 2,366 2,291 2,461 1.4 % 2,373 2,373 ) nm
Total $ 61,451 $ 64,426 $ 66,002 $ 68,236 $ 66,595 $ 64,638 $ 71,512 8.3 % $ 63,959 $ 67,582 5.7 %
$ 7,390 $ 7,795 $ 7,991 $ 8,218 $ 7,950 $ 7,573 $ 8,525 6.7 % $ 7,725 $ 8,016 3.8 %
2,314 2,378 2,428 2,455 2,366 2,291 2,461 1.4 % 2,373 2,373 ) nm
Total Canada average client assets 9,704 10,173 10,418 10,674 10,316 9,864 10,986 5.5 % 10,098 10,389 2.9 %
Total U.S. average client assets 51,747 54,253 55,583 57,563 56,279 54,775 60,526 8.9 % 53,861 57,193 6.2 %
Total average client assets $ 61,451 $ 64,426 $ 66,002 $ 68,236 $ 66,595 $ 64,638 $ 71,512 8.3 % $ 63,959 $ 67,582 5.7 %
Average number of fee-generating positions (thous) (3)
1,998 1,996 2,007 2,020 2,031 2,048 2,072 3.2 % 2,000 2,050 2.5 %
641 641 646 650 658 671 685 6.2 % 642 672 4.6 %
Total 2,639 2,637 2,653 2,670 2,689 2,718 2,757 3.9 % 2,643 2,721 3.0 %

All values are in US Dollars.

(1) Asset value outflows - include (a) redemptions of assets, (b) sales charges on the inflow sales figures, and (c) the net flow of money market funds sold and redeemed on the company's recordkeeping platform.  The redemptions of assets must be estimated for approximately 4% of account values as these figures are not readily available.  Actual redemptions as a percentage of account values for similar known account values are used to estimate the unknown redemption values.
(2) Change in market value, net - market value fluctuations net of fees and expenses.
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(3) Fee generating positions - mutual fund positions for which we receive recordkeeping fees. An individual client account may include multiple mutual fund positions. We may also receive fees earned for custodial services that we provide to clients with retirement plan accounts that hold positions in these mutual funds.
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Investment Portfolio - Summary of Holdings PRIMERICA, INC.<br><br><br>Financial Supplement
As of or for the period ended September 30, 2020
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
% 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 $ 330,877 $ 330,877 $ - 11.7 % 12.3 %
Fixed Income:
Treasury 25,849 24,827 1,021 0.9 % 0.9 % 2.15 % AAA
Government 274,925 257,441 17,484 9.7 % 9.5 % 2.92 % AA-
Tax-Exempt Municipal 47,642 45,636 2,006 1.7 % 1.7 % 2.82 % AA
Public Corporate 1,456,198 1,366,047 90,151 51.4 % 50.7 % 3.70 % BBB+
Mortgage Backed 306,413 293,710 12,703 10.8 % 10.9 % 2.72 % AAA
Asset Backed 70,846 71,021 (175 ) 2.5 % 2.6 % 2.99 % AA
CMBS 120,526 115,155 5,371 4.3 % 4.3 % 3.01 % AA+
Private Placements 157,587 151,410 6,177 5.6 % 5.6 % 4.49 % BBB
Redeemable Preferred 5,687 5,447 240 0.2 % 0.2 % 5.47 % BBB
Total Fixed Income 2,465,672 2,330,694 134,979 87.1 % 86.4 % 3.45 % A
Equities and Other:
Perpetual Preferred 13,237 13,237 - 0.5 % 0.5 %
Common Stock 15,831 15,831 - 0.6 % 0.6 %
Mutual Fund 4,745 4,745 - 0.2 % 0.2 %
Derivatives 42 42 - 0.0 % 0.0 %
Other 874 874 - 0.0 % 0.0 %
Total Equities 34,729 34,729 - 1.2 % 1.3 %
Total Invested Assets $ 2,831,278 $ 2,696,300 $ 134,979 100.0 % 100.0 %
Public Corporate Portfolio by Sector
Consumer Non Cyclical $ 189,628 $ 176,788 $ 12,840 13.0 % 12.9 %
Energy 157,904 149,978 7,926 10.8 % 11.0 %
Insurance 140,212 130,657 9,554 9.6 % 9.6 %
Banking 132,616 125,533 7,084 9.1 % 9.2 %
REITs 126,490 118,250 8,240 8.7 % 8.7 %
Technology 122,259 113,158 9,101 8.4 % 8.3 %
Consumer Cyclical 116,182 109,549 6,633 8.0 % 8.0 %
Capital Goods 91,394 87,624 3,771 6.3 % 6.4 %
Electric 76,084 70,012 6,072 5.2 % 5.1 %
Transportation 75,678 73,558 2,120 5.2 % 5.4 %
Basic Industry 73,753 69,550 4,203 5.1 % 5.1 %
Communications 69,619 63,286 6,334 4.8 % 4.6 %
Brokerage 44,383 40,490 3,893 3.0 % 3.0 %
Finance Companies 20,744 19,607 1,137 1.4 % 1.4 %
Industrial Other 8,209 7,663 545 0.6 % 0.6 %
Natural Gas 6,353 5,894 459 0.4 % 0.4 %
Financial Other 3,582 3,451 131 0.2 % 0.3 %
Utility Other 1,107 998 109 0.1 % 0.1 %
Total Corporate portfolio $ 1,456,198 $ 1,366,047 $ 90,151 100.0 % 100.0 %
Fixed-Maturity Securities - Effective Maturity
Effective maturity
< 1 Yr. $ 227,643 $ 224,988 $ 2,655 9.2 % 9.7 % 3.14 %
1-2 Yrs. 279,317 270,657 8,661 11.3 % 11.6 % 3.48 %
2-5 Yrs. 984,357 923,111 61,246 39.9 % 39.6 % 3.53 %
5-10 Yrs. 639,530 595,560 43,970 25.9 % 25.6 % 3.50 %
> 10 Yrs. 334,826 316,378 18,447 13.6 % 13.6 % 3.36 %
Total Fixed Income $ 2,465,672 $ 2,330,694 $ 134,979 100.0 % 100.0 % 3.45 %
Duration
Fixed Income portfolio duration 4.6 years

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

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Investment Portfolio - Quality Ratings As of September 30, 2020 PRIMERICA, INC.<br><br><br>Financial Supplement
(Dollars in thousands)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Investment Portfolio Quality Ratings (1)
Amortized  Cost % of Total
Total Fixed Income portfolio:
Rating
AAA $ 456,761 19.6 %
AA 297,165 12.8 %
A 507,858 21.8 %
BBB 978,302 42.0 %
Below Investment Grade 87,727 3.8 %
NA 2,882 0.1 %
Total Fixed Income $ 2,330,694 100.0 %
Amortized  Cost % of Total Amortized  Cost % of Total
Public Corporate asset class: Private Placement asset class:
Rating Rating
AAA $ 11,405 0.8 % AAA $ - —
AA 80,431 5.9 % AA 5,635 3.7 %
A 363,814 26.6 % A 17,545 11.6 %
BBB 840,968 61.6 % BBB 112,798 74.5 %
Below Investment Grade 68,481 5.0 % Below Investment Grade 15,432 10.2 %
NA 949 0.1 % NA - —
Total Corporate $ 1,366,047 100.0 % Total Private $ 151,410 100.0 %
CMBS asset class: Mortgage-Backed asset class:
Rating Rating
AAA $ 90,289 78.4 % AAA $ 255,869 87.1 %
AA - — AA 27,360 9.3 %
A 23,786 20.7 % A 10,163 3.5 %
BBB 1,001 0.9 % BBB 132 0.0 %
Below Investment Grade 79 0.1 % Below Investment Grade 149 0.1 %
NA - — NA 38 0.0 %
Total CMBS $ 115,155 100.0 % Total Mortgage-Backed $ 293,710 100.0 %
Asset-Backed asset class: Treasury & Government asset classes:
Rating Rating
AAA $ 34,868 49.1 % AAA $ 60,396 21.4 %
AA 5,134 7.2 % AA 145,094 51.4 %
A 22,927 32.3 % A 64,895 23.0 %
BBB 5,507 7.8 % BBB 8,988 3.2 %
Below Investment Grade 691 1.0 % Below Investment Grade 2,895 1.0 %
NA 1,895 2.7 % NA 0 0.0 %
Total Asset-Backed $ 71,021 100.0 % Total Treasury & Government $ 282,269 100.0 %
NAIC Designations
1 $ 970,974 49.8 %
2 895,583 45.9 %
3 70,958 3.6 %
4 13,609 0.7 %
5 437 0.0 %
6 0 0.0 % `
U.S. Insurer Fixed Income (2) 1,951,561 100.0 %
Other (3) 413,862
Cash and cash equivalents 330,877
Total Invested Assets $ 2,696,300
(1) Ratings method for split ratings: If by 2 NRSROs, use lower of the two; if by 3 or more NRSROs, use second lowest.
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(2) NAIC ratings for our U.S. insurance companies' fixed income portfolios.
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(3) Other consists of assets held by our non-life companies, Canadian insurance company, and unrated equities.
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Note:  Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

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Investment Portfolio - Supplemental Data and Trends PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q3
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br><br><br>2019 Q2<br><br><br>2019 Q3<br><br><br>2019 Q4<br><br><br>2019 Q1<br><br><br>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 Change %<br><br><br>Change
Net Investment Income by Source
Fixed-maturity securities (available-for-sale) $ 20,333 $ 20,345 $ 20,380 $ 20,772 $ 20,784 $ 20,213 $ 20,882 2.5%
Fixed-maturity securities (held-to-maturity) 10,674 11,769 12,769 13,113 13,472 14,074 14,704 15.2%
Equity Securities 487 446 448 464 451 461 433 ) -3.3%
Deposit asset underlying 10% reinsurance treaty 1,755 2,141 2,105 2,046 1,830 1,394 1,694 ) -19.5%
Deposit asset - Mark to Market 2,147 2,447 534 254 (6,379 ) 2,259 1,165 118.2%
Policy loans and other invested assets 467 299 234 215 189 541 242 3.4%
Cash & cash equivalents 1,056 1,414 1,191 950 843 143 114 ) -90.4%
Total investment income 36,919 38,862 37,661 37,814 31,190 39,085 39,234 4.2%
Investment expenses 2,134 2,225 2,217 2,283 2,298 2,300 1,577 ) -28.9%
Interest Expense on Surplus Note 10,674 11,769 12,769 13,113 13,472 14,074 14,704 15.2%
Net investment income $ 24,111 $ 24,868 $ 22,675 $ 22,418 $ 15,420 $ 22,710 $ 22,953 1.2%
Fixed income book yield, end of period 3.85 % 3.74 % 3.65 % 3.54 % 3.55 % 3.54 % 3.45 %
New money yield 3.56 % 3.10 % 2.73 % 2.73 % 3.25 % 3.14 % 2.44 %
YOY Q3
Q1<br><br><br>2019 Q2<br><br><br>2019 Q3<br><br><br>2019 Q4<br><br><br>2019 Q1<br><br><br>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 % Pt<br>Change
Fixed Income Portfolio Quality Ratings
Rating
AAA 21.4 % 20.9 % 23.0 % 24.0 % 22.9 % 21.5 % 19.6 % %
AA 10.9 % 11.3 % 11.0 % 11.7 % 12.1 % 11.6 % 12.8 % %
A 22.9 % 22.9 % 22.1 % 23.4 % 22.9 % 22.3 % 21.8 % %
BBB 41.8 % 41.8 % 41.0 % 38.2 % 38.9 % 40.4 % 42.0 % %
Below Investment Grade 2.9 % 3.0 % 2.8 % 2.6 % 3.1 % 4.0 % 3.8 % %
NA 0.1 % 0.1 % 0.1 % 0.1 % 0.1 % 0.1 % 0.1 % %
Total Fixed Income 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Average rating by amortized cost A A A A A A A

All values are in US Dollars.

As of September 30, 2020 As of September 30, 2020 As of September 30, 2020
Market<br><br><br>Value Amortized<br><br><br>Cost Credit<br><br><br>Rating Market<br><br><br>Value Amortized<br><br><br>Cost Market<br><br><br>Value Amortized<br><br><br>Cost
Top 25 Exposures Foreign Exposure (1) Government Investments (1)
1 Canada $ 20,868 $ 20,032 AAA Canada $ 67,395 $ 62,413 AAA $ 3,308 $ 3,251
2 Province of Ontario Canada 18,936 17,979 A+ Australia 39,780 37,423 AA 13,167 12,711
3 Province of Quebec Canada 16,108 14,523 AA- United Kingdom 38,748 36,764 A 8,811 8,321
4 Enbridge Inc 12,029 11,437 BBB+ Bermuda 14,367 13,607 BBB 7,732 6,997
5 Province of New Brunswick Canada 12,006 11,179 A+ Ireland 12,968 12,677 Below Investment Grade 2,942 2,895
6 Wells Fargo & Co 12,002 11,881 A- France 12,650 12,021 NA — —
7 Province of Alberta Canada 11,743 10,834 A+ Switzerland 12,302 11,906 Total $ 35,960 $ 34,176
8 Province of British Columbia Canada 10,700 10,216 AAA Germany 11,292 10,948
9 General Motors Co 10,028 9,251 BBB Cayman Islands 11,071 11,026
10 City of Toronto Canada 9,351 8,617 AA Netherlands 10,162 8,938 Non-Government Investments (1)
11 Province of Newfoundland and Labrador 9,299 8,414 A Mexico 6,543 6,135
12 Municipal Finance Authority of British Columbia 8,978 8,458 AAA Japan 6,027 5,450 AAA $ 4,178 $ 4,184
13 Province of Manitoba Canada 8,677 8,053 A+ Israel 5,698 5,022 AA 19,664 19,160
14 Brookfield Asset Management Inc 8,278 7,342 A- Norway 4,828 4,942 A 60,718 57,468
15 Truist Financial Corp 8,119 7,497 A- Belgium 4,042 3,813 BBB 155,557 144,997
16 CVS Health Corp 8,025 7,963 BBB Emerging Markets  (2) 11,573 10,929 Below Investment Grade 19,786 19,524
17 Discovery Inc 7,996 6,972 BBB- All Other 26,415 25,495 NA — —
18 Morgan Stanley 7,980 7,434 A+ Total $ 295,862 $ 279,508 Total $ 259,902 $ 245,332
19 General Mills Inc 7,944 7,344 BBB
20 Simon Property Group Inc 7,867 7,663 A
21 Deere & Co 7,682 7,158 A
22 City of Montreal Canada 7,675 6,605 AA-
23 Booking Holdings Inc 7,613 7,050 A-
24 City of Houston TX 7,576 7,089 AA
25 Cigna Corp 7,528 6,873 A-
Total $ 255,005 $ 237,866
% of total fixed income portfolio 9.0 % 8.8 %
(1) US$ denominated investments in issuers outside of the United States based on country of risk.
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(2) Emerging markets is as defined by MSCI, Inc. which include Chile, India, Peru, Poland and South Africa.
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Note:  Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

15 of 16

Five-Year Historical Key Statistics PRIMERICA, INC.<br><br><br>Financial Supplement
(Dollars in millions) 2015 2016 2017 2018 2019 Q1<br><br><br>2019 Q2<br><br><br>2019 Q3<br><br><br>2019 Q4<br><br><br>2019 Q1<br><br><br>2020 Q2<br><br><br>2020 Q3<br><br><br>2020
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Recruits 228,115 262,732 303,867 290,886 282,207 63,223 86,173 72,345 60,466 84,762 133,123 101,861
Life-insurance licensed sales force, beginning of period 98,358 106,710 116,827 126,121 130,736 130,736 129,821 129,550 130,871 130,522 130,095 134,157
New life-licensed representatives 39,632 44,724 48,535 48,041 44,739 10,065 10,919 12,682 11,073 10,599 12,250 13,138
Non-renewal and terminated representatives (31,280 ) (34,607 ) (39,241 ) (43,426 ) (44,953 ) (10,980 ) (11,190 ) (11,361 ) (11,422 ) (11,026 ) (8,188 ) (10,989 )
Life-insurance licensed sales force, end of period 106,710 116,827 126,121 130,736 130,522 129,821 129,550 130,871 130,522 130,095 134,157 136,306
Issued term life policies 260,059 298,244 312,799 301,589 287,809 64,242 78,664 73,434 71,469 71,318 94,044 100,199
Issued term life face amount $ 79,111 $ 89,869 $ 95,635 $ 95,209 $ 93,994 $ 20,925 $ 25,300 $ 24,087 $ 23,682 $ 23,221 $ 27,754 $ 30,104
Term life face amount in force, beginning of period $ 681,927 $ 693,194 $ 728,385 $ 763,831 $ 781,041 $ 781,041 $ 785,552 $ 796,376 $ 801,494 $ 808,262 $ 804,512 $ 821,998
Issued term life face amount 79,111 89,869 95,635 95,209 93,994 20,925 25,300 24,087 23,682 23,221 27,754 30,104
Terminated term life face amount (53,580 ) (57,238 ) (65,958 ) (70,291 ) (71,519 ) (18,383 ) (16,512 ) (17,740 ) (18,884 ) (18,294 ) (14,315 ) (13,733 )
Foreign currency impact, net (14,263 ) 2,560 5,769 (7,708 ) 4,746 1,969 2,036 (1,228 ) 1,970 (8,676 ) 4,046 1,859
Term life face amount in force, end of period $ 693,194 $ 728,385 $ 763,831 $ 781,041 $ 808,262 $ 785,552 $ 796,376 $ 801,494 $ 808,262 $ 804,512 $ 821,998 $ 840,227
Estimated annualized issued term life premium
Premium from new policies $ 206.5 $ 237.9 $ 255.4 $ 250.8 $ 244.8 $ 54.1 $ 65.8 $ 63.1 $ 61.8 $ 61.5 $ 77.7 $ 86.0
Additions and increases in premium 42.3 46.4 49.5 55.2 60.2 13.8 15.8 15.1 15.4 15.0 17.8 17.9
Total estimated annualized issued term life premium $ 248.8 $ 284.3 $ 304.9 $ 306.0 $ 305.0 $ 68.0 $ 81.6 $ 78.2 $ 77.2 $ 76.5 $ 95.5 $ 103.9
Investment & Savings product sales $ 5,856.8 $ 5,594.3 $ 6,192.2 $ 7,040.1 $ 7,533.2 $ 1,757.0 $ 1,937.4 $ 1,855.7 $ 1,983.0 $ 2,245.7 $ 1,686.5 $ 1,841.0
Investment & Savings average client asset values $ 48,477 $ 49,427 $ 56,791 $ 61,842 $ 65,029 $ 61,451 $ 64,426 $ 66,002 $ 68,236 $ 66,595 $ 64,638 $ 71,512

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