Equibles

8-K

Primerica, Inc. (PRI)

8-K 2022-05-05 For: 2022-05-05
View Original
Added on April 04, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT (Date of earliest event reported):      May 5, 2022

Primerica, Inc.

(Exact Name of Registrant as Specified in Its Charter)

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

(770) 381-1000

(Registrant’s telephone number, including area code)

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

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

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

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

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

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

Emerging growth company ☐

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

Item 2.02Results of Operations and Financial Condition.

On May 5, 2022, Primerica, Inc. (the “Company”) announced its results of operations for the quarter ended March 31, 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 associated with the purchase of 80% of e-TeleQuote Insurance, Inc. and subsidiaries (collectively, “e-TeleQuote”) and adjustments to share-based compensation expense for shares exchanged in the business combination.  We exclude e-TeleQuote transaction-related expenses as these are non-recurring items that will cause incomparability between period-over-period results. We exclude adjustments to share-based compensation expense for shares exchanged in the business combination to eliminate period-over-period fluctuations that may obscure comparisons of operating results primarily due to the volatility of changes in the fair value of shares prior to the dates that can ultimately be redeemed. Adjusted operating income before income taxes and adjusted net operating income exclude income attributable to the noncontrolling interest to present only the income that is attributable to stockholders of the Company.  Adjusted stockholders’ equity excludes the impact of net unrealized investment gains (losses) recorded in accumulated other comprehensive income (loss) for all periods presented. We exclude unrealized investment gains (losses) in measuring adjusted stockholders’ equity as unrealized gains (losses) from the Company’s available-for-sale securities are largely caused by market movements in interest rates and credit spreads that do not necessarily correlate with the cash flows we will ultimately realize when an available-for-sale security matures or is sold.

Our definitions of these non-GAAP financial measures may differ from the definitions of similar measures used by other companies.  Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance.  Furthermore, management believes that these non-GAAP financial measures may provide users with additional

meaningful comparisons between current results and results of prior periods as they are expected to be reflective of our core ongoing business.  These measures have limitations, and investors should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP.

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

Item 7.01Regulation FD Disclosure.

On May 5, 2022, the Company posted to the “Investor Relations” section of its website certain supplemental financial information relating to the quarter ended March 31, 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 May 5, 2022 – Primerica Reports First Quarter 2022 Results
99.2 Primerica, Inc. Supplemental Financial Information – First 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:  May 5, 2022 PRIMERICA, INC.
/s/ Alison S. Rand
Alison S. Rand
Executive Vice President and Chief Financial Officer

3

pri-ex991_6.htm

Exhibit 99.1

PRIMERICA REPORTS FIRST QUARTER 2022 RESULTS

Life-licensed sales force grew from the prior quarter end to 130,206

Term Life net premiums increased 9%; adjusted direct premiums increased 10% with sales remaining above pre-pandemic levels

Investment and Savings Products sales of $3.1 billion increased 7%

Continued headwinds in the Senior Health segment

Net earnings per diluted share (EPS) of $2.06 declined 16%; return on stockholders’ equity (ROE) of 16.2%

Diluted adjusted operating EPS of $2.11 declined 14%; adjusted net operating income return on adjusted stockholders’ equity (ROAE) of 16.6%

Declared dividend of $0.55 per share, payable on June 14, 2022, and repurchased $99 million of common stock during the quarter

Duluth, GA, May 5, 2022 – Primerica, Inc. (NYSE: PRI) today announced financial results for the quarter ended March 31, 2022.  Total revenues of $691.2 million increased 8% compared to the first quarter of 2021.  Net income attributable to Primerica of $81.4 million decreased 17%, while earnings per diluted share of $2.06 decreased 16% compared to the same period in the prior year.  ROE was 16.2% for the quarter.

Adjusted operating revenues were $692.6 million, a 9% increase compared to the first quarter of 2021. Adjusted net operating income of $83.3 million decreased 14%, while adjusted operating earnings per diluted share of $2.11 decreased 14% compared to the same period in the prior year. The decrease in adjusted net operating income was driven by a loss in the Senior Health segment of $19.0 million ($15 million after-tax), or $0.37 per share. ROAE was 16.6% in the current quarter.

First quarter results reflect continued revenue growth in the Term Life and Investment and Savings Products (ISP) segments, while income growth was constrained by several factors.  Term Life operating revenues increased 10% year-over-year with income before income taxes increasing 4%. As the quarter progressed, term life persistency

and claims continued to normalize to pre-COVID levels.  In addition, insurance expenses were elevated year-over-year from adding the previously postponed biennial convention to our normal cycle of sales force leadership events. ISP operating revenues increased 8% year-over-year, while income before income taxes grew 2%.  Sales-based net revenues were lower than in the previous year period due to the expansion of sales force bonuses during 2021.  Asset-based revenues and expenses continued to grow in line with average client asset values, however market volatility during the quarter drove higher Canadian segregated fund DAC amortization in the period.  Results in the Senior Health segment reflect the Company’s deliberate efforts to slow growth as we assess changes necessary to build a successful business.  Results for each segment are addressed in greater detail below.

“We are pleased with the performance in our term life and ISP businesses, and the return of growth in the size of our sales force during the quarter,” said Glenn Williams, Chief Executive Officer. “Earnings growth during the quarter was pressured by heightened expenses as we catch-up on in person sales force leadership events.  Additional headwinds are also coming from market volatility for our ISP business and the continuing challenges in the Senior Health business.”

First Quarter Distribution & Segment Results

Distribution Results
Q1 2022 Q1 2021 % Change
Life-Licensed Sales Force ^(1)^ 130,206 132,030 (1 )%
Recruits 84,707 94,633 (10 )%
New Life-Licensed Representatives 9,983 10,833 (8 )%
Life Insurance Policies Issued 71,324 82,667 (14 )%
Life Productivity^(2)^ 0.18 0.21 *
ISP Product Sales ($ billions) $ 3.07 $ 2.85 7 %
Average Client Asset Values ($ billions) $ 94.20 $ 83.13 13 %
Senior Health Submitted Policies ^(3)^ 26,231 - *
Senior Health Approved Policies ^(4)^ 23,594 - *
Closed U.S. Mortgage Volume ($ million brokered) $ 235.9 $ 262.3 (10 )%
^(1)^ End of period.  The 2021 period includes an estimated 2,400 individuals who we expect will 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
Q1 2022 Q1 2021 % Change
( in thousands)
Adjusted Operating Revenues:
Term Life Insurance $ 382,027 10 %
Investment and Savings Products 223,422 8 %
Senior Health^(1)^ - *
Corporate and Other Distributed Products ^(1)^ 31,289 (13 )%
Total adjusted operating revenues ^(1)^ $ 636,738 9 %
Adjusted Operating Income (Loss) before<br><br><br>income taxes:
Term Life Insurance $ 88,236 4 %
Investment and Savings Products 63,363 2 %
Senior Health ^(1)^ ) - *
Corporate and Other Distributed Products ^(1)^ ) (24,263 ) 15 %
Total adjusted operating income before<br><br><br>income taxes ^(1)^ $ 127,336 (14 )%

All values are in US Dollars.

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

* Not calculated

Life Insurance Licensed Sales Force

Sales force metrics are difficult to compare year-over-year due to COVID-related incentives in recruiting and special state licensing measures in the prior year period.  During the quarter, the Company recruited nearly 85,000 individuals, which is strong and demonstrates the attractiveness of the Primerica business opportunity in today’s workforce environment. Improved access to in-person exam preparation classes led to nearly 10,000 individuals obtaining a new life license during the first quarter of 2022 with the number of new licenses increasing each month during the quarter.  On March 31, 2022, the Company had a total of 130,206 independent life-licensed representatives, marking a shift to growth in the size of the life-licensed sales force on a sequential quarter basis.

Term Life Insurance

Sales volume has continued to normalize following a period of heightened client demand driven by COVID.  During the first quarter of 2022, the Company issued over 71,000 new term life insurance policies, which remained above pre-pandemic levels.  Productivity at 0.18 policies per life-licensed representative per month reflects typical first quarter seasonality and remains above the level seen prior to the pandemic in the first quarter of 2019.

First quarter revenues of $418.4 million increased 10% year-over-year, driven by 10% growth in adjusted direct premiums.  As persistency continued to normalize to pre-pandemic levels, particularly for policies issued in the last two years, the DAC amortization ratio increased to 15.3%, however, it remains below what was typically seen in the first quarter prior to the pandemic.  The impact of normalizing persistency on adjusted direct premiums, DAC amortization and benefit reserves, collectively, was

consistent with the overall impact in the first quarter of 2021.  The benefit ratio was 62.1%, decreasing 180 basis points year-over-year as COVID-related net death claims declined throughout the quarter to an estimated $16 million, or $5 million lower than first quarter 2021.  The Company did not experience any significant non-COVID excess death claims during the quarter.

Insurance expenses increased $10.9 million, or 23% year-over-year.  Approximately half of the increase was driven by higher costs associated with the return to the normal cycle of sales force leadership events combined with planning for the biennial convention, which had been postponed due to the pandemic and rescheduled to June 2022.  The remainder of the increase was due to a combination of growth in the business, higher employee compensation costs from annual merit increases and higher agent-related costs as the Company returned to normal levels of in-person pre-licensing classes.

Investment and Savings Products

Total product sales during the quarter were $3.1 billion, a 7% increase compared to the first quarter of 2021.  Heightened market volatility during the period led to slower sales growth as the quarter progressed; nonetheless, net client inflows of $1.2 billion remained solid which reflects clients’ long-term approach to investing.  Client asset values on March 31, 2022, were $93.7 billion, up 9% year-over-year.

Revenues of $241.0 million during the quarter increased 8%, while pre-tax income of $64.6 million increased 2% compared to the prior year period.  Sales-based revenues increased 5% year-over-year, largely in line with growth in revenue-generating sales.  Sales-based commission expenses increased 9%, reflecting a higher level of sales force bonuses implemented in the second half of 2021 to reflect outstanding sales performance.  Asset-based revenues and commission expenses increased 12% and 14%, respectively, largely in line with average client asset values.  Canadian segregated fund DAC amortization was higher year-over-year from volatility in client asset values during the quarter.

Operating expenses increased $3.2 million, or 8% year-over-year, due to a combination of growth in the business and higher costs associated with sales force leadership events and the biennial convention.

Senior Health

The Company saw strong consumer demand during the Open Enrollment Period, which coincides with the first quarter.  As previously indicated, the Company deliberately limited the number of senior health licensed agents, which led to lower sales volume for the first quarter.  Approved policies were approximately 24,000 during the quarter.

The pre-tax operating loss of $19.0 million resulted primarily from a negative tail revenue adjustment of $19.1 million for policies approved in prior periods. The tail adjustment was driven by continued challenges with renewal rates for previous year

policy cohorts and ongoing refinements to our revenue projection model.  Early performance for the 2022 policy cohort, which is largely comprised of policies issued during the Annual Election Period last quarter, has achieved expectations and showed improved performance over the prior year cohort.  The lifetime value of commissions (“LTV”) per approved policy was $862 for the first quarter and while contract acquisition costs were lower than in the fourth quarter of 2021, the reduction was more than offset by lower LTV for the period.  Given the high level of commissions typically paid by carriers in the first quarter, Primerica did not provide any funding to the Senior Health segment during the period.  The Company continues to work diligently to make operational adjustments in the business in light of widespread sector challenges.

Corporate and Other Distributed Products

During the first quarter, the segment recorded an adjusted operating loss before taxes of $27.9 million, increasing $3.7 million year-over-year.  The increase was largely revenue driven with net investment income in the segment decreasing $3.0 million as the allocation to Term Life was larger to support the growing block of business.  Commission revenues from third-party products sales, including mortgages which slowed due to rising interest rates, were $0.9 million lower year-over-year.

Adjusted operating benefits and expenses were largely unchanged compared to the prior year period as lower benefits and claims on closed blocks of business and lower third-party product commissions offset a $1.3 million increase in other operating expenses due higher employee compensation costs from annual merit increases.

Taxes

The effective tax rate remained relatively unchanged at 23.5% in the first quarter of 2022 compared to 23.7% in the first quarter of 2021.

Capital

During the first quarter, the Company repurchased 710,825 shares of common stock for $99.0 million.  The Company expects to repurchase a total of $306 million of common stock during 2022. The Board of Directors has approved a dividend of $0.55 per share, payable on June 14, 2022, to stockholders of record on May 20, 2022.

Primerica has a strong balance sheet, including invested assets and cash at the holding company of $260 million.  Primerica Life Insurance Company’s statutory risk-based capital (RBC) ratio was estimated to be about 440% as of March 31, 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 associated with the purchase of 80% of e-TeleQuote Insurance, Inc. and subsidiaries (collectively, “e-TeleQuote”) and adjustments to share-based compensation expense for shares exchanged in the business combination.  We exclude e-TeleQuote transaction-related expenses as these are non-recurring items that will cause incomparability between period-over-period results. We exclude adjustments to share-based compensation expense for shares exchanged in the business combination to eliminate period-over-period fluctuations that may obscure comparisons of operating results primarily due to the volatility of changes in the fair value of shares prior to the dates that can ultimately be redeemed. Adjusted operating income before income taxes and adjusted net operating income exclude income attributable to the noncontrolling interest to present only the income that is attributable to stockholders of the Company.  Adjusted stockholders’ equity excludes the impact of net unrealized investment gains (losses) recorded in accumulated other comprehensive income (loss) for all periods presented. We exclude unrealized investment gains (losses) in measuring adjusted stockholders’ equity as unrealized gains (losses) from the Company’s available-for-sale securities are largely caused by market movements in interest rates and credit spreads that do not necessarily correlate with the cash flows we will ultimately realize when an available-for-sale security matures or is sold.

Our definitions of these non-GAAP financial measures may differ from the definitions of similar measures used by other companies.  Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance.  Furthermore, management believes that these non-GAAP financial measures may provide users with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of the core ongoing business.  These measures have limitations and investors should not consider them in isolation or as a substitute for analysis of the

Company’s results as reported under GAAP.  Reconciliations of GAAP to non-GAAP financial measures are attached to this release.

Earnings Webcast Information

Primerica will hold a webcast on Friday, May 6, 2022, at 9:00 a.m. Eastern, to discuss the quarter’s results.  To access the webcast, go to https://investors.primerica.com at least 15 minutes prior to the event to register, download and install any necessary software.  A replay of the call will be available for approximately 30 days.  This release and a detailed financial supplement will be posted on Primerica’s website.

Forward-Looking Statements

Except for historical information contained in this press release, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from anticipated or projected results. Those risks and uncertainties include, among others, our failure to continue to attract and license new recruits, retain sales representatives or license or maintain the licensing of  sales representatives; new laws or regulations that could apply to our distribution model, which could require us to modify our distribution structure; changes to the independent contractor status of sales representatives; our or sales representatives’ violation of or non-compliance with laws and regulations; any failure to protect the confidentiality of client information; differences between our actual experience and our expectations regarding mortality or persistency as reflected in the pricing for our insurance policies; changes in federal,  state and provincial legislation or regulation that affects our insurance, investment product and mortgage businesses; our failure to meet regulatory capital ratios  or other minimum capital and surplus requirements; a significant downgrade by a ratings organization; the failure of our reinsurers or reserve financing counterparties to perform their obligations; the failure of our investment products to remain competitive with other investment options or the loss of our relationship with one or more of the companies whose investment products we provide; litigation and regulatory investigations and actions concerning us or sales representatives; heightened standards of conduct or more stringent licensing requirements for sales representatives; inadequate policies and procedures regarding suitability review of client transactions; revocation of our subsidiary’s status as a non-bank custodian; economic down cycles that impact our business, financial condition and results of operations; major public health pandemics, epidemics or outbreaks or other catastrophic events; the failure of our information technology systems, breach of our information security, failure of our business continuity plan or the loss of the Internet; the effects of credit deterioration and interest rate fluctuations on our invested asset portfolio and other assets; incorrectly valuing our investments; changes in accounting standards may impact how we record and report our financial condition and results of operations; the inability of our subsidiaries to pay dividends or make distributions; litigation and regulatory investigations and actions; a significant change in the competitive environment in which we operate; the loss of key personnel or sales force leaders; any

acquisition or investment in businesses that do not perform as we expect or are difficult to integrate; due to our very limited history with e-TeleQuote, we cannot be certain that its business will be successful or that we will successfully address any risks not known to us that may become material; a failure by e-TeleQuote to comply with the requirements of the United States government’s Centers for Medicare and Medicaid Services and those of its carrier partners; legislative or regulatory changes to Medicare Advantage or changes to the implementing guidance by the Centers for Medicare and Medicaid Services; e-TeleQuote’s inability to acquire or generate leads on commercially viable terms, convert leads to sales or if customer policy retention is lower than assumed; e-TeleQuote’s inability to enroll individuals during the Medicare annual election period; the loss of a key carrier, or the modification of commission rates or underwriting practices  with a key carrier partner could adversely affect e-TeleQuote’s business; cyber-attack(s), security breaches or if e-TeleQuote is otherwise unable to safeguard the security and privacy of confidential data, including personal health information; and fluctuations in the market price of our common stock or Canadian currency exchange rates. These and other risks and uncertainties affecting us are more fully described in our filings with the Securities and Exchange Commission, which are available in the "Investor Relations" section of our website at https://investors.primerica.com. Primerica assumes no duty to update its forward-looking statements as of any future date.

About Primerica, Inc.

Primerica, Inc., headquartered in Duluth, GA, is a leading provider of financial services to middle-income households in North America. Independent licensed representatives educate Primerica clients about how to better prepare for a more secure financial future by assessing their needs and providing appropriate solutions through term life insurance, which we underwrite, and mutual funds, annuities and other financial products, which we distribute primarily on behalf of third parties.  We insured over 5.7 million lives and had over 2.7 million client investment accounts on December 31, 2021.  Primerica, through its insurance company subsidiaries, was the #2 issuer of Term Life insurance coverage in the United States and Canada in 2021. Primerica stock is included in the S&P MidCap 400 and the Russell 1000 stock indices and is traded on The New York Stock Exchange under the symbol “PRI”.

Investor Contact:

Nicole Russell

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

Media Contact:

Susan Chana

404-229-8302

Email: Susan.Chana@Primerica.com

PRIMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
March 31, 2022 December 31, 2021
(In thousands)
Assets
Investments:
Fixed-maturity securities available-for-sale, at fair value $ 2,705,131 $ 2,702,567
Fixed-maturity security held-to-maturity, at amortized cost 1,390,310 1,379,100
Short-term investments available-for-sale, at fair value 43,700 85,243
Equity securities, at fair value 39,531 42,551
Trading securities, at fair value 12,717 24,355
Policy loans 30,295 30,612
Total investments 4,221,684 4,264,428
Cash and cash equivalents 359,779 392,501
Accrued investment income 19,541 18,702
Reinsurance recoverables 4,240,481 4,268,419
Deferred policy acquisition costs, net 2,994,367 2,943,782
Renewal commissions receivable 213,175 231,751
Agent balances, due premiums and other receivables 251,477 257,675
Goodwill 179,154 179,154
Intangible assets 193,400 195,825
Income taxes 89,373 81,799
Operating lease right-of-use assets 46,129 47,942
Other assets 429,362 441,253
Separate account assets 2,696,891 2,799,992
Total assets $ 15,934,813 $ 16,123,223
Liabilities and Stockholders' Equity
Liabilities:
Future policy benefits $ 7,216,597 $ 7,138,649
Unearned and advance premiums 17,368 16,437
Policy claims and other benefits payable 574,850 585,382
Other policyholders' funds 515,830 501,823
Notes payable - short term 6,000 15,000
Notes payable - long term 592,303 592,102
Surplus note 1,389,811 1,378,585
Income taxes 217,327 241,311
Operating lease liabilities 52,078 53,920
Other liabilities 631,786 615,710
Payable under securities lending 93,171 94,529
Separate account liabilities 2,696,891 2,799,992
Total liabilities 14,004,012 14,033,440
Temporary Stockholders' Equity
Redeemable noncontrolling interests in consolidated entities 4,616 7,271
Permanent Stockholders' equity
Equity attributable to Primerica, Inc.:
Common stock 388 394
Paid-in capital - 5,224
Retained earnings 1,980,467 2,004,506
Accumulated other comprehensive income (loss), net of income tax (54,670 ) 72,388
Total permanent stockholders' equity 1,926,185 2,082,512
Total liabilities and temporary and permanent stockholders' equity $ 15,934,813 $ 16,123,223
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- ---
Condensed Consolidated Statements of Income
(Unaudited)
Three months ended March 31,
2022 2021
(In thousands, except per-share amounts)
Revenues:
Direct premiums $ 798,666 $ 762,227
Ceded premiums (399,885 ) (395,973 )
Net premiums 398,781 366,254
Commissions and fees 251,800 234,044
Net investment income 18,905 20,052
Investment gains (losses) 751 1,766
Other, net 20,989 15,595
Total revenues 691,226 637,711
Benefits and expenses:
Benefits and claims 187,069 183,789
Amortization of deferred policy acquisition costs 86,063 66,105
Sales commissions 133,924 121,894
Insurance expenses 59,509 48,766
Insurance commissions 7,721 8,740
Contract acquisition costs 20,649 -
Interest expense 6,853 7,145
Other operating expenses 86,435 72,963
Total benefits and expenses 588,223 509,402
Income before income taxes 103,003 128,309
Income taxes 24,239 30,437
Net income $ 78,764 $ 97,872
Net income attributable to noncontrolling interests (2,655 ) -
Net income attributable to Primerica, Inc. $ 81,419 $ 97,872
Earnings per share attributable to common stockholders:
Basic earnings per share $ 2.07 $ 2.47
Diluted earnings per share $ 2.06 $ 2.46
Weighted-average shares used in computing<br><br><br>earnings per share:
Basic 39,221 39,456
Diluted 39,332 39,581
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- --- --- --- ---
Consolidated Adjusted Operating Results Reconciliation
(Unaudited – in thousands, except per share amounts)
Three months ended March 31,
2022 2021 % Change
Total revenues $ 691,226 $ 637,711 8 %
Less: Investment gains (losses) 751 1,766
Less: 10% deposit asset MTM included in NII (2,099 ) (793 )
Adjusted operating revenues $ 692,574 $ 636,738 9 %
Income before income taxes $ 103,003 $ 128,309 (20 )%
Less: Investment gains (losses) 751 1,766
Less: 10% deposit asset MTM included in NII (2,099 ) (793 )
Less: e-TeleQuote transaction-related expenses (900 ) -
Less: Equity comp for awards exchanged during acquisition (256 ) -
Less: Noncontrolling interest (3,668 ) -
Adjusted operating income before income taxes $ 109,175 $ 127,336 (14 )%
Net income $ 78,764 $ 97,872 (20 )%
Less: Investment gains (losses) 751 1,766
Less: 10% deposit asset MTM included in NII (2,099 ) (793 )
Less: e-TeleQuote transaction-related expenses (900 ) -
Less: Equity comp for awards exchanged during acquisition (256 ) -
Less: Noncontrolling interest (3,668 ) -
Less: Tax impact of preceding items 1,603 (231 )
Adjusted net operating income $ 83,333 $ 97,130 (14 )%
Diluted earnings per share ^(1)^ $ 2.06 $ 2.46 (16 )%
Less: Net after-tax impact of operating adjustments (0.05 ) 0.02
Diluted adjusted operating earnings per share ^(1)^ $ 2.11 $ 2.44 (14 )%
(1) Percentage change in earnings per share is calculated prior to rounding per share amounts.
--- ---
TERM LIFE INSURANCE SEGMENT
--- --- --- --- --- --- --- --- --- ---
Adjusted Premiums Reconciliation
(Unaudited – in thousands)
Three months ended March 31,
2022 2021 % Change
Direct premiums $ 793,254 $ 756,514 5 %
Less: Premiums ceded to IPO coinsurers 234,614 249,944
Adjusted direct premiums 558,640 506,570 10 %
Ceded premiums (398,446 ) (394,550 )
Less: Premiums ceded to IPO coinsurers (234,614 ) (249,944 )
Other ceded premiums (163,832 ) (144,606 )
Net premiums $ 394,808 $ 361,964 9 %
SENIOR HEALTH SEGMENT
--- --- --- --- --- --- ---
Adjusted Operating Results Reconciliation
(Unaudited – in thousands)
Three months ended March 31,
2022 2021 % Change
Loss before income taxes $ (23,085 ) $ -
Less: e-TeleQuote transaction-related costs (399 ) -
Less: Noncontrolling interest (3,668 ) -
Adjusted operating loss before taxes $ (19,018 ) $ -
CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT
--- --- --- --- --- --- --- --- --- ---
Adjusted Operating Results Reconciliation
(Unaudited – in thousands)
Three months ended March 31,
2022 2021 % Change
Total revenues $ 25,928 $ 32,262 (20 )%
Less: Investment gains (losses) 751 1,766
Less: 10% deposit asset MTM included in NII (2,099 ) (793 )
Adjusted operating revenues $ 27,276 $ 31,289 (13 )%
Loss before income taxes $ (30,048 ) $ (23,290 ) 29 %
Less: Investment gains (losses) 751 1,766
Less: 10% deposit asset MTM included in NII (2,099 ) (793 )
Less: e-TeleQuote transaction-related expenses (501 ) -
Less: Equity comp for awards exchanged during acquisition (256 ) -
Adjusted operating loss before income taxes $ (27,943 ) $ (24,263 ) 15 %
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- --- --- ---
Adjusted Stockholders' Equity Reconciliation
(Unaudited – in thousands)
March 31, 2022 December 31, 2021 % Change
Stockholders' equity ^(1)^ $ 1,926,185 $ 2,082,512 (8 )%
Less: Unrealized net investment gains (losses) recorded<br><br><br>in stockholders' equity, net of income tax (66,439 ) 63,777
Adjusted stockholders' equity ^(1)^ $ 1,992,624 $ 2,018,735 (1 )%
(1) Reflects the Company’s permanent stockholders’ equity and does not include temporary stockholders’ equity.
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12

pri-ex992_7.htm

Exhibit 99.2

Supplemental Financial Information

First Quarter 2022

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

This document may contain forward-looking statements and information.  Additional information and factors that could cause actual results to differ materially from any forward-looking statements or information in this document is available in our Form 10-K for the year ended December 31, 2020.

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

First Quarter 2022

This document is a financial supplement to our fourth quarter 2021 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 associated with the purchase of 80% of e-TeleQuote Insurance, Inc. and subsidiaries (collectively, “e-TeleQuote”), adjustments to share-based compensation expense for shares exchanged in the business combination, and non-cash goodwill impairment charges.  We exclude investment gains/losses, including credit impairments, and MTM investment adjustments in measuring adjusted operating revenues to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains and losses and other factors prior to an invested asset's maturity or sale that are not directly associated the Company's insurance operations.  We exclude the loss on the extinguishment of debt, e-TeleQuote transaction-related expenses, and non-cash goodwill impairment charges in our non-GAAP financial measures as such expenses are non-recurring items that will cause incomparability between period-over-period results.  We exclude adjustments to share-based compensation expense for shares exchanged in the business combination to eliminate period-over-period fluctuations that may obscure comparisons of operating results primarily due to the volatility of changes in the fair value of shares prior to the dates they can ultimately be redeemed. Adjusted operating income before income taxes and adjusted net operating income exclude income attributable to the noncontrolling interest to present only the income that is attributable to stockholders of the Company.
• Adjusted stockholders’ equity refers to the removal of the impact of net unrealized gains and losses on invested assets.  We exclude unrealized investment gains and losses in measuring adjusted stockholders' equity as unrealized gains and losses from the Company's invested assets are largely caused by market movements in interest rates and credit spreads that do not necessarily correlate with the cash flows we will ultimately realize when an invested asset matures or is sold.
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• 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.
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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><br>Financial Supplement
(Dollars in thousands) Dec 31,<br><br><br>2020 Mar 31,<br><br><br>2021 Jun 30,<br><br><br>2021 Sep 30,<br><br><br>2021 Dec 31,<br><br><br>2021 Mar 31,<br><br><br>2022
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
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
Securities held to maturity 1,346,350 1,362,210 1,368,740 1,376,090 1,379,100 1,390,310
Total investments and cash 4,443,053 4,496,070 4,800,565 4,432,485 4,656,930 4,581,464
Due from reinsurers 4,273,904 4,345,483 4,239,510 4,278,322 4,268,419 4,240,481
Deferred policy acquisition costs 2,629,644 2,712,169 2,808,347 2,877,921 2,943,782 2,994,367
Goodwill — — — 224,180 179,154 179,154
Other assets 899,165 921,236 925,621 1,330,620 1,274,946 1,242,457
Separate account assets 2,659,520 2,638,901 2,745,827 2,672,606 2,799,992 2,696,891
Total assets $ 14,905,286 $ 15,113,858 $ 15,519,871 $ 15,816,135 $ 16,123,222 $ 15,934,813
Liabilities:
Future policy benefits $ 6,790,557 $ 6,885,115 $ 6,984,272 $ 7,057,599 $ 7,138,649 $ 7,216,597
Other policy liabilities 984,612 1,020,349 977,373 1,054,925 1,103,642 1,108,047
Income taxes 223,496 235,233 204,197 260,264 241,311 217,326
Other liabilities 618,874 633,719 641,025 668,643 669,631 683,865
Debt obligations 374,415 374,511 499,606 514,702 607,102 598,303
Surplus note 1,345,772 1,361,648 1,368,194 1,375,559 1,378,585 1,389,811
Payable under securities lending 72,154 87,190 80,613 105,264 94,529 93,171
Separate account liabilities 2,659,520 2,638,901 2,745,827 2,672,606 2,799,992 2,696,891
Total liabilities 13,069,401 13,236,666 13,501,107 13,709,563 14,033,442 14,004,011
Redeemable noncontrolling interest — — — 7,631 7,271 4,616
Stockholders’ equity:
Common stock (0.01 par value) (1) 393 394 394 395 394 388
Paid-in capital (0 ) 8,138 12,880 17,454 5,224 (0 )
Retained earnings 1,705,786 1,785,037 1,894,539 1,988,324 2,004,506 1,980,467
Treasury stock — — — — — —
Accumulated other comprehensive income (loss), net:
128,128 77,053 96,990 84,701 63,775 (66,439 )
1,578 6,570 13,960 8,068 8,611 11,769
Total stockholders’ equity (2) 1,835,885 1,877,192 2,018,764 2,098,941 2,082,510 1,926,185
Total liabilities and stockholders' equity $ 14,905,286 $ 15,113,858 $ 15,519,871 $ 15,816,135 $ 16,123,222 $ 15,934,813
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
Less: Net unrealized gains (losses) 128,128 77,053 96,990 84,701 63,775 (66,439 )
Adjusted stockholders’ equity $ 1,707,757 $ 1,800,139 $ 1,921,774 $ 2,014,241 $ 2,018,735 $ 1,992,624
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
Net Income attributable to Primerica, Inc. 100,084 97,872 128,162 112,456 34,868 81,418
Shareholder dividends (15,851 ) (18,620 ) (18,660 ) (18,671 ) (18,686 ) (21,645 )
Retirement of shares and warrants (13,426 ) (5,966 ) (521 ) (88 ) (18,829 ) (103,862 )
Net foreign currency translation adjustment 16,398 4,992 7,390 (5,892 ) 543 3,158
Other, net 5,864 14,105 5,264 4,662 6,597 14,820
Balance, end of period $ 1,707,757 $ 1,800,139 $ 1,921,774 $ 2,014,241 $ 2,018,735 $ 1,992,624
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
General expenses deferred 9,510 10,558 10,055 9,248 9,062 9,519
Commission costs deferred 128,084 134,188 136,085 129,287 124,515 123,739
Amortization of deferred policy acquisition costs (53,342 ) (66,105 ) (54,286 ) (62,214 ) (68,575 ) (86,063 )
Foreign currency impact and other, net 12,984 3,884 4,324 (6,748 ) 858 3,390
Balance, end of period $ 2,629,644 $ 2,712,169 $ 2,808,347 $ 2,877,921 $ 2,943,782 $ 2,994,367

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><br>Financial Supplement
YOY Q1
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except per-share data) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 /#<br>Change %<br><br><br>Change
Earnings per Share
Basic earnings per share:
Weighted-average common shares and fully vested equity awards 39,455,948 39,530,691 39,560,786 39,568,470 39,221,003 ) -0.6 %
Net income attributable to Primerica, Inc. $ 97,872 $ 128,162 $ 112,456 $ 34,868 $ 81,418 ) -16.8 %
Less income attributable to unvested participating securities (417 ) (525 ) (458 ) (141 ) (337 ) 19.1 %
Net income used in computing basic EPS $ 97,455 $ 127,636 $ 111,997 $ 34,728 $ 81,081 ) -16.8 %
Basic earnings per share $ 2.47 $ 3.23 $ 2.83 $ 0.88 $ 2.07 ) -16.3 %
Adjusted net operating income $ 97,129 $ 129,355 $ 118,708 $ 117,007 $ 83,333 ) -14.2 %
Less operating income attributable to unvested participating securities (414 ) (530 ) (484 ) (472 ) (345 ) 16.6 %
Adjusted net operating income used in computing basic operating EPS $ 96,715 $ 128,825 $ 118,224 $ 116,535 $ 82,988 ) -14.2 %
Basic adjusted operating income per share $ 2.45 $ 3.26 $ 2.99 $ 2.95 $ 2.12 ) -13.7 %
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 ) -0.6 %
Dilutive impact of contingently issuable shares 124,505 121,595 117,923 122,929 110,941 ) -10.9 %
Shares used to calculate diluted EPS 39,580,453 39,652,286 39,678,709 39,691,399 39,331,944 ) -0.6 %
Net income attributable to Primerica, Inc. $ 97,872 $ 128,162 $ 112,456 $ 34,868 $ 81,418 ) -16.8 %
Less income attributable to unvested participating securities (416 ) (524 ) (457 ) (140 ) (337 ) 19.1 %
Net income used in computing diluted EPS $ 97,456 $ 127,638 $ 111,998 $ 34,728 $ 81,081 ) -16.8 %
Diluted earnings per share $ 2.46 $ 3.22 $ 2.82 $ 0.87 $ 2.06 ) -16.3 %
Adjusted net operating income $ 97,129 $ 129,355 $ 118,708 $ 117,007 $ 83,333 ) -14.2 %
Less operating income attributable to unvested participating securities (413 ) (529 ) (483 ) (471 ) (344 ) 16.6 %
Adjusted net operating income used in computing diluted operating EPS $ 96,717 $ 128,827 $ 118,225 $ 116,536 $ 82,988 ) -14.2 %
Diluted adjusted operating income per share $ 2.44 $ 3.25 $ 2.98 $ 2.94 $ 2.11 ) -13.7 %

All values are in US Dollars.

YOY Q1
Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 /#<br>Change %<br><br><br>Change
Annualized Return on Equity
Average stockholders' equity (1) $ 1,856,539 $ 1,947,978 $ 2,058,852 $ 2,090,726 $ 2,004,348 8.0 %
Average adjusted stockholders' equity  (1) $ 1,753,948 $ 1,860,956 $ 1,968,007 $ 2,016,488 $ 2,005,679 14.4 %
Net income attributable to Primerica, Inc. return on stockholders' equity 21.1 % 26.3 % 21.8 % 6.7 % 16.2 % % nm
Net income attributable to Primerica, Inc. return on adjusted stockholders' equity 22.3 % 27.5 % 22.9 % 6.9 % 16.2 % % nm
Adjusted net operating income return on adjusted stockholders' equity 22.2 % 27.8 % 24.1 % 23.2 % 16.6 % % nm
Capital Structure
Debt-to-capital (2) 16.6 % 19.8 % 19.7 % 22.6 % 23.7 % % nm
Debt-to-capital, excluding AOCI (2) 17.3 % 20.8 % 20.4 % 23.2 % 23.2 % % nm
Cash and invested assets to stockholders' equity 2.4 x 2.4 x 2.1 x 2.2 x 2.4 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 x) nm
Share count, end of period (3) 39,414,085 39,443,561 39,470,748 39,367,754 38,751,885 ) -1.7 %
Adjusted stockholders' equity per share $ 45.67 $ 48.72 $ 51.03 $ 51.28 $ 51.42 12.6 %
Financial Strength Ratings - Primerica Life Insurance Co
Moody's A1 A1 A1 A1 A1 nm nm
S&P AA- AA- AA- AA- AA- nm nm
A.M. Best A+ A+ A+ A+ A+ nm nm
Holding Company Senior Debt Ratings
Moody's Baa1 Baa1 Baa1 Baa1 Baa1 nm nm
S&P A- A- A- A- A- nm nm
A.M. Best a- a- a- a- a- nm nm

All values are in US Dollars.

(1) Reflects the company's permanent stockholders' equity and does not include temporary stockholders' equity
(2) Debt-to-capital is that of the parent company only.  Capital in the debt-to-capital ratio includes stockholders' equity and the note payable.
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(3) Share count reflects outstanding common shares, but excludes restricted stock units (RSUs).
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Statements of Income PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q1
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 Change %<br><br><br>Change
Statement of Income
Revenues:
Direct premiums $ 762,227 $ 780,299 $ 785,277 $ 794,344 $ 798,666 4.8 %
Ceded premiums (395,973 ) (413,850 ) (401,295 ) (405,147 ) (399,885 ) ) -1.0 %
Net premiums 366,254 366,450 383,983 389,197 398,781 8.9 %
Net investment income 20,052 20,535 20,000 20,001 18,905 ) -5.7 %
Commissions and fees:
Sales-based (1) 98,112 104,716 95,229 103,451 103,242 5.2 %
Asset-based (2) 101,241 108,490 113,558 118,015 113,112 11.7 %
Account-based (3) 21,120 21,848 21,456 22,514 21,541 2.0 %
Other commissions and fees 13,571 15,635 39,553 44,304 13,905 2.5 %
Investment (losses) gains 1,766 701 1,410 1,995 751 ) -57.5 %
Other, net 15,595 16,313 18,051 24,616 20,988 34.6 %
Total revenues 637,711 654,687 693,240 724,094 691,225 8.4 %
Benefits and expenses:
Benefits and claims 183,789 168,347 183,425 187,192 187,069 1.8 %
Amortization of DAC 66,105 54,286 62,214 68,575 86,063 30.2 %
Insurance commissions 8,740 8,838 8,412 8,542 7,721 ) -11.7 %
Insurance expenses 48,766 48,579 51,901 53,359 59,509 22.0 %
Sales commissions:
Sales-based (1) 68,594 73,629 67,745 77,390 74,606 8.8 %
Asset-based (2) 46,866 50,488 53,233 55,614 53,366 13.9 %
Other sales commissions 6,434 7,185 8,290 6,839 5,952 ) -7.5 %
Interest expense 7,145 7,141 7,529 8,804 6,853 ) -4.1 %
Contract acquisition costs (4) — — 23,524 29,264 20,649 #DIV/0 !
Other operating expenses 72,964 66,730 79,866 77,292 86,434 18.5 %
Goodwill impairment — — — 76,000 — #DIV/0 !
Loss on extinguishment of debt — — — 8,927 — #DIV/0 !
Total benefits and expenses 509,403 485,222 546,138 657,797 588,222 15.5 %
Income before income taxes 128,308 169,465 147,102 66,296 103,003 ) -19.7 %
Income taxes 30,437 41,304 35,663 31,788 24,239 ) -20.4 %
Net income $ 97,872 $ 128,162 $ 111,439 $ 34,508 $ 78,764 ) -19.5 %
Net income attributable to noncontrolling interests — — (1,017 ) (360 ) (2,654 ) ) #DIV/0 !
Net Income attributable to Primerica, Inc. $ 97,872 $ 128,162 $ 112,456 $ 34,868 $ 81,418 ) -16.8 %
Income Before Income Taxes by Segment
Term Life $ 88,236 $ 116,778 $ 107,589 $ 102,019 $ 91,577 3.8 %
Investment & Savings Products 63,363 71,154 69,369 70,699 64,560 1.9 %
Senior Health — — (8,489 ) (76,561 ) (23,085 ) ) #DIV/0 !
Corporate & Other Distributed Products (23,290 ) (18,467 ) (21,367 ) (29,861 ) (30,048 ) ) -29.0 %
Income before income taxes $ 128,308 $ 169,465 $ 147,102 $ 66,296 $ 103,003 ) -19.7 %

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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(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
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Reconciliation of Statement of Income GAAP to Non-GAAP Financial Measures PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q1
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 Change %<br><br><br>Change
Reconciliation from Term Life Direct Premiums to Term Life Adjusted Direct Premiums
Term Life direct premiums $ 756,514 $ 774,500 $ 779,490 $ 789,325 $ 793,254 4.9 %
Less: Premiums ceded to IPO Coinsurers 249,944 246,874 241,439 239,828 234,614 ) -6.1 %
Term Life adjusted direct premiums $ 506,570 $ 527,626 $ 538,051 $ 549,496 $ 558,640 10.3 %
Reconciliation from Term Life Ceded Premiums to Term Life Other Ceded Premiums
Term Life ceded premiums $ (394,550 ) $ (412,028 ) $ (399,835 ) $ (403,184 ) $ (398,446 ) ) -1.0 %
Less: Premiums ceded to IPO Coinsurers (249,944 ) (246,874 ) (241,439 ) (239,828 ) (234,614 ) 6.1 %
Term Life other ceded premiums $ (144,606 ) $ (165,154 ) $ (158,397 ) $ (163,356 ) $ (163,832 ) ) -13.3 %
Reconciliation from Net Investment Income to Adjusted Net Investment Income
Net Investment Income $ 20,052 $ 20,535 $ 20,000 $ 20,001 $ 18,905 ) -5.7 %
Less: MTM investment adjustments (793 ) (170 ) (640 ) (899 ) (2,099 ) nm nm
Adjusted net investment income $ 20,845 $ 20,705 $ 20,640 $ 20,900 $ 21,004 0.8 %
Reconciliation from Other Operating Expenses to Adjusted other operating expenses
Other operating expenses $ 72,964 $ 66,730 $ 79,866 $ 77,292 $ 86,434 18.5 %
Less: eTeleQuote transaction-related costs — 2,109 10,027 812 900 nm nm
Less: Equity comp for awards exchanged during acquisition — — (1,004 ) (739 ) 256 nm nm
Adjusted other operating expenses $ 72,964 $ 64,620 $ 70,843 $ 77,219 $ 85,278 16.9 %
Reconciliation from Total Revenues to Adjusted Operating Revenues
Total revenues $ 637,711 $ 654,687 $ 693,240 $ 724,094 $ 691,225 8.4 %
Less: Investment gains/(losses) 1,766 701 1,410 1,995 751 nm nm
Less: MTM investment adjustments (793 ) (170 ) (640 ) (899 ) (2,099 ) nm nm
Adjusted operating revenues $ 636,738 $ 654,156 $ 692,470 $ 722,998 $ 692,573 8.8 %
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 ) -19.7 %
Less: Investment gains/(losses) 1,766 701 1,410 1,995 751 nm nm
Less: MTM investment adjustments (793 ) (170 ) (640 ) (899 ) (2,099 ) nm nm
Less: eTeleQuote transaction-related costs — (2,109 ) (10,027 ) (812 ) (900 ) nm nm
Less: Equity comp for awards exchanged during acquisition — — 1,004 739 (256 ) nm nm
Less: Noncontrolling interest before income taxes — — (1,465 ) (540 ) (3,668 ) nm nm
Less: Goodwill impairment — — — (76,000 ) — nm nm
Less: Loss on extinguishment of debt — — — (8,927 ) — nm nm
Adjusted operating income before income taxes $ 127,335 $ 171,044 $ 156,819 $ 150,740 $ 109,175 ) -14.3 %
Reconciliation from Net Income to Adjusted Net Operating Income
Net income $ 97,872 $ 128,162 $ 111,439 $ 34,508 $ 78,764 ) -19.5 %
Less: Investment gains/(losses) 1,766 701 1,410 1,995 751 nm nm
Less: MTM investment adjustments (793 ) (170 ) (640 ) (899 ) (2,099 ) nm nm
Less: e-TeleQuote transaction-related costs — (2,109 ) (10,027 ) (812 ) (900 ) nm nm
Less: Equity comp for awards exchanged during acquisition — — 1,004 739 (256 ) nm nm
Less: Noncontrolling interest before income taxes — — (1,465 ) (540 ) (3,668 ) nm nm
Less: Goodwill impairment — — — (76,000 ) — nm nm
Less: Loss on extinguishment of debt — — — (8,927 ) — nm nm
Less: Tax impact of reconciling items (231 ) 385 2,449 1,945 1,603 nm nm
Adjusted net operating income $ 97,129 $ 129,355 $ 118,708 $ 117,007 $ 83,333 ) -14.2 %

All values are in US Dollars.

7 of 18

Reconciliation of Statement of Income GAAP to Non-GAAP Financial Measures PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q1
--- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 $<br><br><br>Change %<br><br><br>Change
Reconciliation from Senior Health Income Before Income Taxes to Senior Health Adjusted Operating Income Before Income Taxes
Income before income taxes na na $(8,489) $(76,561) $(23,085) na na
Less: e-TeleQuote transaction-related costs na na (417) (389) (399) na na
Less: Noncontrolling interest na na (1,465) (540) (3,668) na na
Less: Goodwill impairment na na — (76,000) — na na
Adjusted operating income before income taxes na na $(6,608) $369 $(19,018) na na
Reconciliation from C&O Income Before Income Taxes to C&O Adjusted Operating Income Before Income Taxes
Income before income taxes $(23,290) $(18,467) $(21,367) $(29,861) $(30,048) $(6,758) -29.0%
Less: Investment gains/(losses) 1,766 701 1,410 1,995 751 nm nm
Less: MTM investment adjustments (793) (170) (640) (899) (2,099) nm nm
Less: e-TeleQuote transaction-related costs — (2,109) (9,610) (423) (501) nm nm
Less: Equity comp for awards exchanged during acquisition — — 1,004 739 (256) nm nm
Less: Loss on extinguishment of debt — — — (8,927) — nm nm
Adjusted operating income before income taxes $(24,263) $(16,888) $(13,531) $(22,346) $(27,943) $(3,680) -15.2%

8 of 18

Term Life Insurance - Financial Results and Analysis PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q1
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 Change %<br><br><br>Change
Term Life Insurance Income Before Income Taxes
Revenues:
Direct Premiums $ 756,514 $ 774,500 $ 779,490 $ 789,325 $ 793,254 4.9 %
Premiums ceded to IPO coinsurers (1) (249,944 ) (246,874 ) (241,439 ) (239,828 ) (234,614 ) 6.1 %
Adjusted direct premiums (2) 506,570 527,626 538,051 549,496 558,640 10.3 %
Other ceded premiums (3) (144,606 ) (165,154 ) (158,397 ) (163,356 ) (163,832 ) ) -13.3 %
Net premiums 361,964 362,472 379,654 386,140 394,808 9.1 %
Allocated net investment income 8,253 8,751 9,320 10,162 11,445 38.7 %
Other, net 11,810 12,315 12,476 12,369 12,175 3.1 %
Revenues 382,028 383,537 401,450 408,672 418,428 9.5 %
Benefits and expenses:
Benefits and claims 178,963 162,488 179,696 182,749 182,903 2.2 %
Amortization of DAC 62,584 52,235 59,287 67,344 81,883 30.8 %
Insurance commissions 4,869 4,785 4,345 4,458 3,793 ) -22.1 %
Insurance expenses 47,375 47,252 50,534 52,102 58,272 23.0 %
Benefits and expenses 293,792 266,760 293,862 306,652 326,851 11.3 %
Income before income taxes $ 88,236 $ 116,778 $ 107,589 $ 102,019 $ 91,577 3.8 %
Total Term Life Insurance - Financial Analysis
Post-IPO direct premiums (4) $ 401,106 $ 420,865 $ 431,022 $ 440,490 $ 448,657 11.9 %
Pre-IPO direct premiums (5) 355,408 353,635 348,468 348,834 344,597 ) -3.0 %
Total direct premiums $ 756,514 $ 774,500 $ 779,490 $ 789,325 $ 793,254 4.9 %
Premiums ceded to IPO coinsurers $ 249,944 $ 246,874 $ 241,439 $ 239,828 $ 234,614 ) -6.1 %
% of Pre-IPO direct premiums 70.3 % 69.8 % 69.3 % 68.8 % 68.1 % nm nm
Benefits and claims, net (6) $ 323,569 $ 327,642 $ 338,093 $ 346,105 $ 346,735 7.2 %
% of adjusted direct premiums 63.9 % 62.1 % 62.8 % 63.0 % 62.1 % nm nm
DAC amortization & insurance commissions $ 67,454 $ 57,020 $ 63,632 $ 71,802 $ 85,676 27.0 %
% of adjusted direct premiums 13.3 % 10.8 % 11.8 % 13.1 % 15.3 % nm nm
Insurance expenses, net (7) $ 35,565 $ 34,937 $ 38,057 $ 39,732 $ 46,097 29.6 %
% of adjusted direct premiums 7.0 % 6.6 % 7.1 % 7.2 % 8.3 % nm nm
Total Term Life income before income taxes $ 88,236 $ 116,778 $ 107,589 $ 102,019 $ 91,577 3.8 %
Term Life operating margin (8) 17.4 % 22.1 % 20.0 % 18.6 % 16.4 % nm nm

All values are in US Dollars.

(1) Premiums ceded to IPO coinsurers - premiums ceded to IPO coinsurers under the IPO coinsurance transactions excluding any reimbursements from the IPO coinsurers on previously existing reinsurance agreements.
(2) Adjusted direct premiums - direct premiums net of premiums ceded to IPO coinsurers.
--- ---
(3) Other ceded premiums - premiums ceded to non-IPO coinsurers net of any applicable reimbursements from the IPO coinsurers.
--- ---
(4) Post-IPO direct premiums - direct premiums not subject to the 2010 IPO coinsurance transactions.
--- ---
(5) Pre-IPO direct premiums - direct premiums subject to the 2010 IPO coinsurance transactions.
--- ---
(6) Benefits and claims, net - benefits & claims 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><br>Financial Supplement
YOY Q1
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 /#<br>Change %<br><br><br>Change
Key Statistics
Life-insurance licensed sales force, beginning of period 134,907 132,030 132,041 130,023 129,515 ) -4.0 %
10,833 10,112 9,381 9,296 9,983 ) -7.8 %
(13,710 ) (10,101 ) (11,399 ) (9,804 ) (9,292 ) 32.2 %
Life-insurance licensed sales force, end of period 132,030 132,041 130,023 129,515 130,206 ) -1.4 %
Estimated annualized issued term life premium (mills) (1):
$ 74.5 $ 82.6 $ 70.7 $ 69.4 $ 65.5 ) -12.1 %
18.0 20.3 19.5 19.1 18.4 2.0 %
Total estimated annualized issued term life premium $ 92.5 $ 103.0 $ 90.2 $ 88.5 $ 83.8 ) -9.4 %
Issued term life policies 82,667 90,071 75,914 75,203 71,324 ) -13.7 %
Estimated average annualized issued term life premium per policy (1)(2) $ 901 $ 917 $ 931 $ 923 $ 918 1.9 %
Term life face amount in-force, beginning of period (mills) $ 858,818 $ 869,643 $ 886,519 $ 894,018 $ 903,404 5.2 %
26,643 29,981 26,219 25,678 24,773 ) -7.0 %
(17,240 ) (14,706 ) (16,241 ) (16,610 ) (19,787 ) ) -14.8 %
1,422 1,602 (2,480 ) 319 1,242 ) -12.6 %
Term life face amount in-force, end of period $ 869,643 $ 886,519 $ 894,018 $ 903,404 $ 909,632 4.6 %

All values are in US Dollars.

(1)     Estimated annualized issued term life premium - estimated as average premium per $1,000 of face amounts issued on new policies and additions (before free look returns) multiplied by actual face amount issued on new policies, rider additions and face amount increases.

(2)     In whole dollars.

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

10 of 18

Investment and Savings Products - Financial Results and Financial Analysis PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q1
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 Change %<br><br><br>Change
Investment & Savings Products Income Before Income Taxes
Revenues:
Commissions and fees:
Sales-based $ 98,112 $ 104,716 $ 95,229 $ 103,451 $ 103,242 5.2 %
Asset-based 101,241 108,490 113,558 118,015 113,112 11.7 %
Account-based 21,120 21,848 21,456 22,514 21,541 2.0 %
Other, net 2,949 2,958 3,094 3,096 3,144 6.6 %
Revenues 223,422 238,012 233,337 247,076 241,039 7.9 %
Benefits and expenses:
Amortization of DAC 3,275 1,786 2,580 1,027 3,925 19.8 %
Insurance commissions 3,572 3,747 3,747 3,839 3,646 2.1 %
Sales commissions:
Sales-based 68,594 73,629 67,745 77,390 74,606 8.8 %
Asset-based 46,866 50,488 53,233 55,614 53,366 13.9 %
Other operating expenses 37,752 37,207 36,664 38,507 40,936 8.4 %
Benefits and expenses 160,060 166,858 163,968 176,377 176,479 10.3 %
Income before income taxes $ 63,363 $ 71,154 $ 69,369 $ 70,699 $ 64,560 1.9 %
Financial Analysis
Fees paid based on client asset values (1) $ 6,964 $ 7,535 $ 7,891 $ 8,482 $ 8,037 15.4 %
Fees paid based on fee-generating positions (2) 10,451 10,021 9,128 9,852 10,948 4.7 %
Other operating expenses 20,337 19,652 19,645 20,172 21,951 7.9 %
Total other operating expenses $ 37,752 $ 37,207 $ 36,664 $ 38,507 $ 40,936 8.4 %
Sales-based net revenue as % of revenue-generating sales (3)
U.S. 1.29 % 1.28 % 1.25 % 1.11 % 1.20 % nm nm
Canada 1.05 % 0.96 % 0.92 % 0.65 % 1.00 % nm nm
Total 1.25 % 1.23 % 1.20 % 1.05 % 1.16 % nm nm
Asset-based net revenue as % of average asset values (4)
U.S. 0.039 % 0.039 % 0.039 % 0.040 % 0.039 % nm nm
Canada 0.103 % 0.112 % 0.106 % 0.115 % 0.091 % nm nm
Total 0.049 % 0.050 % 0.050 % 0.052 % 0.047 % nm nm
Account-based net revenue per average fee generating position (5)(6) $ 3.77 $ 4.08 $ 4.17 $ 4.22 $ 3.48 nm nm

All values are in US Dollars.

(1) Fees paid based on client asset values - administration fees on Canadian Segregated Funds and advisory fees on Managed Accounts that vary directly with client asset values.
(2) Fees paid based on fee-generating positions - recordkeeping fees that vary with the number of fee-generating positions.
--- ---
(3) Sales-based net revenue - commission and fee revenue less commissions paid to the sales force based on product sales activity.
--- ---
(4) Asset-based net revenue - commission and fee revenue less administration and advisory fees paid to third-party providers and commissions paid to the sales force earned based on product account values including amortization of deferred acquisition costs for segregated funds.
--- ---
(5) Account-based net revenue - fee revenue less recordkeeping fees paid to third-party providers based on fee-generating positions and certain direct general expenses.
--- ---
(6) In whole dollars.
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11 of 18

Investment and Savings Products - Key Statistics PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q1
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 /#<br>Change %<br><br><br>Change
Key Statistics
Product sales (mills)
$ 1,261.9 $ 1,336.1 $ 1,247.8 $ 1,300.3 $ 1,298.6 2.9 %
424.0 357.0 314.8 343.0 437.6 3.2 %
55.5 62.8 51.9 60.1 57.5 3.6 %
627.1 767.6 668.7 782.2 668.4 6.6 %
Total sales-based revenue generating product sales 2,368.4 2,523.4 2,283.1 2,485.7 2,462.1 4.0 %
330.1 381.8 387.5 406.3 453.7 37.5 %
154.9 135.0 119.8 127.0 149.5 ) -3.5 %
Total product sales $ 2,853.5 $ 3,040.2 $ 2,790.4 $ 3,019.0 $ 3,065.4 7.4 %
$ 424.0 $ 357.0 $ 314.8 $ 343.0 $ 437.6 3.2 %
154.9 135.0 119.8 127.0 149.5 ) -3.5 %
Total Canada product sales 579.0 492.0 434.6 470.0 587.1 1.4 %
Total U.S. product sales 2,274.5 2,548.2 2,355.8 2,549.0 2,478.2 9.0 %
Total product sales $ 2,853.5 $ 3,040.2 $ 2,790.4 $ 3,019.0 $ 3,065.4 7.4 %
Client asset values, beginning of period (mills) $ 81,533 $ 85,888 $ 91,735 $ 91,765 $ 97,312 19.4 %
2,853 3,040 2,790 3,019 3,065 7.4 %
(1,759 ) (1,826 ) (1,756 ) (1,819 ) (1,900 ) ) -8.0 %
Net flows 1,095 1,214 1,034 1,200 1,166 6.5 %
172 200 (323 ) 42 171 ) -0.8 %
3,088 4,433 (681 ) 4,306 (4,941 ) ) nm
Client asset values, end of period $ 85,888 $ 91,735 $ 91,765 $ 97,312 $ 93,708 9.1 %
5.4 % 5.7 % 4.5 % 5.2 % 4.8 % % nm
Average client asset values (mills)
$ 41,161 $ 44,398 $ 46,113 $ 47,139 $ 46,429 12.8 %
10,268 11,256 11,667 11,984 12,119 18.0 %
5,295 5,915 6,362 6,772 7,077 33.7 %
2,495 2,541 2,585 2,620 2,650 6.2 %
21,291 22,554 23,193 23,567 23,218 9.0 %
2,622 2,713 2,732 2,727 2,710 3.4 %
Total $ 83,131 $ 89,378 $ 92,652 $ 94,809 $ 94,203 13.3 %
$ 10,268 $ 11,256 $ 11,667 $ 11,984 $ 12,119 18.0 %
2,622 2,713 2,732 2,727 2,710 3.4 %
Total Canada average client assets 12,890 13,969 14,399 14,711 14,829 15.0 %
Total U.S. average client assets 70,241 75,409 78,252 80,098 79,374 13.0 %
Total average client assets $ 83,131 $ 89,378 $ 92,652 $ 94,809 $ 94,203 13.3 %
Average number of fee-generating positions (thous) (3)
2,115 2,159 2,192 2,218 2,243 6.0 %
714 741 762 780 797 11.6 %
Total 2,830 2,899 2,954 2,998 3,040 7.5 %

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.
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12 of 18

Senior Health - Financial Results, Financial Analysis Key Statistics PRIMERICA, INC.<br><br><br>Financial Supplement
(Dollars in thousands) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022
--- --- --- --- --- --- ---
Senior Health Income Before Income Taxes
Revenues:
Commissions and fees (1) $21,558 $29,345 $1,278
Other, net (2) $1,378 $8,159 $4,553
Revenues $22,937 $37,504 $5,831
Benefits and expenses:
Contract acquisition costs (3) $23,524 $29,264 $20,649
Adjusted other operating expenses $7,485 $8,411 $7,868
Adjusted operating benefits and expenses $31,009 $37,675 $28,517
Adjusted operating income before income taxes including NCI $(8,072) $(171) $(22,686)
Non-controlling interest before income taxes (1,465) (540) (3,668)
Adjusted operating income before income taxes attributable to Primerica, Inc. $(6,608) $369 $(19,018)
Senior Health EBITDA
Adjusted operating income before income taxes including NCI $(8,072) $(171) $(22,686)
Less:  Amortization of intangibles (2,900) (2,900) (2,600)
Less:  Depreciation (244) (249) (245)
Adjusted EBITDA (Including non-controlling interest) (4) $(4,928) $2,978 $(19,841)
Financial Analysis and Key Statistics
Senior Health submitted policies (5) $20,867 $39,142 $26,231
Senior Health approved policies (6) 18,276 32,047 23,594
Primerica representatives Senior Health certified 17,588 26,441 42,147
Senior Health submitted policies sourced by Primerica representatives 319 4,175 988
LTV per approved policy (7) $1,180 $1,069 $862
CAC per approved policy (7) $1,287 $913 $875
LTV / CAC multiple 0.9 x 1.2 x 1.0 x
(1) Commission revenue recognized based on the estimated Lifetime value (LTV) to be collected over the estimated life of an approved policy for the relevant period based on multiple factors, including but not limited to contracted commission rates, carrier mix, expected policy turnover, historical chargeback activity and applied constraints.  Adjustments to revenue outside of LTV for approved policies from prior periods are recognized when our cash collections are different from the estimated constrained LTV’s which we refer to as tail revenue.
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(2) Primarily reflects marketing development revenues, which are non-commission revenues received from carriers to support marketing efforts and lead acquisition
--- ---
(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.
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(6) Senior Health approved policies - represent an estimate of submitted policies approved by health insurance carriers during the indicated period. Not all approved policies will go in force
--- ---
(7) In whole dollars.
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13 of 18

Corporate Other Distributed Products - Financial Results PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q1
--- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 $<br><br><br>Change %<br><br><br>Change
Corporate & Other Distributed Products Income Before Income Taxes
Revenues:
Direct premiums $5,713 $5,800 $5,788 $5,020 $5,412 $(301) -5.3%
Ceded premiums (1,423) (1,822) (1,459) (1,963) (1,439) (16) -1.2%
Net premiums 4,290 3,978 4,328 3,057 3,973 (317) -7.4%
Allocated net investment income 12,592 11,954 11,321 10,738 9,559 (3,033) -24.1%
Commissions and fees:
Prepaid Legal Services 4,783 5,182 6,712 4,085 4,287 (496) -10.4%
Auto and Homeowners Insurance 1,787 2,101 2,436 1,971 1,591 (195) -10.9%
Mortgage loans 4,960 6,061 6,719 6,598 4,818 (142) -2.9%
Other sales commissions 2,041 2,291 2,129 2,307 1,932 (110) -5.4%
Other, net 836 1,040 1,101 992 1,117 281 33.7%
Adjusted operating revenues 31,288 32,607 34,746 29,746 27,276 (4,012) -12.8%
Benefits and expenses:
Benefits and claims 4,826 5,859 3,728 4,443 4,166 (660) -13.7%
Amortization of DAC 246 264 347 203 255 10 4.0%
Insurance commissions 299 306 320 246 282 (17) -5.8%
Insurance expenses 1,391 1,327 1,367 1,257 1,237 (154) -11.1%
Sales commissions 6,434 7,185 8,290 6,839 5,952 (482) -7.5%
Interest expense 7,145 7,141 7,529 8,804 6,853 (292) -4.1%
Adjusted other operating expenses 35,211 27,413 26,695 30,301 36,475 1,263 3.6%
Adjusted benefits and expenses 55,551 49,495 48,277 52,093 55,219 (333) -0.6%
Adjusted operating income before income taxes $(24,263) $(16,888) $(13,531) $(22,346) $(27,943) $(3,680) -15.2%

14 of 18

Investment Portfolio - Summary of Holdings PRIMERICA, INC.<br><br><br>Financial Supplement
As of or for the period ended March 31, 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 $ 407,075 $ 407,075 $ - 12.9 % 12.5 %
Fixed Income:
Treasury 38,965 39,317 (353 ) 1.2 % 1.2 % 1.03 % AAA
Government 245,414 253,303 (7,889 ) 7.8 % 7.8 % 2.87 % AA-
Tax-Exempt Municipal 38,239 39,219 (980 ) 1.2 % 1.2 % 2.72 % AA
Corporate 1,433,603 1,466,999 (33,396 ) 45.4 % 45.2 % 3.35 % BBB+
Mortgage Backed 461,247 484,171 (22,923 ) 14.6 % 14.9 % 2.76 % AAA
Asset Backed 132,066 137,521 (5,455 ) 4.2 % 4.2 % 2.94 % AA-
Cmbs 142,865 147,425 (4,560 ) 4.5 % 4.5 % 3.04 % AA-
Private 219,930 228,830 (8,900 ) 7.0 % 7.1 % 3.90 % BBB
Redeemable Preferred 5,518 5,448 70 0.2 % 0.2 % 5.46 % BBB
Total Fixed Income 2,717,848 2,802,235 (84,386 ) 86.0 % 86.3 % 3.18 % A
Equities and Other:
Perpetual Preferred 9,600 9,600 - 0.3 % 0.3 %
Common Stock 19,952 19,952 (0 ) 0.6 % 0.6 %
Mutual Fund 6,637 6,637 0 0.2 % 0.2 %
Derivatives - - - 0.0 % 0.0 %
Total Equities 36,190 36,190 (0 ) 1.1 % 1.1 %
Total Invested Assets $ 3,161,113 $ 3,245,499 $ (84,386 ) 100.0 % 100.0 %
Public Corporate Portfolio by Sector
Insurance $ 167,129 $ 172,403 $ (5,274 ) 11.7 % 11.8 %
Consumer Non Cyclical 165,272 169,075 (3,803 ) 11.5 % 11.5 %
Energy 148,788 150,646 (1,858 ) 10.4 % 10.3 %
Reits 138,246 142,719 (4,473 ) 9.6 % 9.7 %
Banking 126,476 127,687 (1,212 ) 8.8 % 8.7 %
Technology 116,154 117,550 (1,396 ) 8.1 % 8.0 %
Consumer Cyclical 101,779 104,853 (3,074 ) 7.1 % 7.1 %
Capital Goods 76,970 79,021 (2,051 ) 5.4 % 5.4 %
Electric 68,308 69,309 (1,001 ) 4.8 % 4.7 %
Basic Industry 65,549 67,011 (1,462 ) 4.6 % 4.6 %
Transportation 61,191 62,762 (1,571 ) 4.3 % 4.3 %
Brokerage 56,493 57,934 (1,440 ) 3.9 % 3.9 %
Communications 54,906 55,284 (378 ) 3.8 % 3.8 %
Finance Companies 54,861 57,731 (2,869 ) 3.8 % 3.9 %
Industrial Other 10,245 10,496 (251 ) 0.7 % 0.7 %
Financial Other 9,129 9,579 (450 ) 0.6 % 0.7 %
Natural Gas 5,049 5,228 (180 ) 0.4 % 0.4 %
Utility Other 5,012 5,387 (375 ) 0.3 % 0.4 %
Owned No Guarantee 2,047 2,325 (278 ) 0.1 % 0.2 %
Total Corporate portfolio $ 1,433,603 $ 1,466,999 $ (33,396 ) 100.0 % 100.0 %
Fixed-Maturity Securities - Effective Maturity
Effective maturity
< 1 Yr. $ 286,145 $ 284,489 $ 1,657 10.5 % 10.2 % 2.86 %
1-2 Yrs. 222,412 221,613 799 8.2 % 7.9 % 3.68 %
2-5 Yrs. 855,677 865,379 (9,702 ) 31.5 % 30.9 % 3.38 %
5-10 Yrs. 1,079,035 1,139,929 (60,894 ) 39.7 % 40.7 % 2.96 %
> 10 Yrs. 274,578 290,825 (16,247 ) 10.1 % 10.4 % 3.35 %
Total Fixed Income $ 2,717,848 $ 2,802,235 $ (84,386 ) 100.0 % 100.0 % 3.18 %
Duration
Fixed Income portfolio duration 4.9 years

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

15 of 18

Investment Portfolio - Quality Ratings As of March 31, 2022 PRIMERICA, INC.<br><br><br>Financial Supplement
(Dollars in thousands)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Investment Portfolio Quality Ratings (1)
Amortized  Cost % of Total
Total Fixed Income portfolio:
Rating
AAA $ 590,961 21.1 %
AA 313,238 11.2 %
A 663,470 23.7 %
BBB 1,114,465 39.8 %
Below Investment Grade 85,535 3.1 %
NA 34,566 1.2 %
Total Fixed Income $ 2,802,235 100.0 %
Amortized  Cost % of Total Amortized  Cost % of Total
Public Corporate asset class: Private Placement asset class:
Rating Rating
AAA $ 12,496 0.9 % AAA $ - —
AA 72,344 4.9 % AA 5,398 2.4 %
A 405,455 27.6 % A 36,128 15.8 %
BBB 909,176 62.0 % BBB 174,775 76.4 %
Below Investment Grade 67,351 4.6 % Below Investment Grade 12,528 5.5 %
NA 176 0.0 % NA - —
Total Corporate $ 1,466,999 100.0 % Total Private $ 228,830 100.0 %
CMBS asset class: Mortgage-Backed asset class:
Rating Rating
AAA $ 68,018 46.1 % AAA $ 434,412 89.7 %
AA 8,981 6.1 % AA 49,493 10.2 %
A 70,426 47.8 % A 154 0.0 %
BBB - — BBB - —
Below Investment Grade - — Below Investment Grade 79 0.0 %
NA - — NA 32 0.0 %
Total CMBS $ 147,425 100.0 % Total Mortgage-Backed $ 484,171 100.0 %
Asset-Backed asset class: Treasury & Government asset classes:
Rating Rating
AAA $ 13,556 9.9 % AAA $ 59,514 20.5 %
AA 6,678 4.9 % AA 140,753 48.4 %
A 72,211 52.5 % A 74,021 25.5 %
BBB 8,573 6.2 % BBB 13,088 4.5 %
Below Investment Grade 2,145 1.6 % Below Investment Grade 3,430 1.2 %
NA 34,358 25.0 % NA 0 0.0 %
Total Asset-Backed $ 137,521 100.0 % Total Treasury & Government $ 290,807 100.0 %
NAIC Designations
1 $ 1,323,534 53.5 %
2 1,052,805 42.6 %
3 85,004 3.4 %
4 5,590 0.2 %
5 691 0.0 %
6 4,308 0.2 %
U.S. Insurer Fixed Income (2) 2,471,931 100.0 %
Other (3) 366,493
Cash and cash equivalents 407,075
Total Invested Assets $ 3,245,499
(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 Q1
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 Change %<br><br><br>Change
Net Investment Income by Source
Fixed-maturity securities (available-for-sale) $ 20,020 $ 20,155 $ 19,860 $ 20,328 $ 20,889 4.3%
Fixed-maturity securities (held-to-maturity) 15,146 15,495 15,741 15,825 15,515 2.4%
Equity Securities 391 411 413 416 387 ) -1.1%
Deposit asset underlying 10% reinsurance treaty 1,368 1,238 987 785 589 ) -56.9%
Deposit asset - Mark to Market (793 ) (170 ) (640 ) (899 ) (2,099 ) ) nm
Policy loans and other invested assets 231 98 289 401 102 ) -55.9%
Cash & cash equivalents 119 156 96 85 125 5.3%
Total investment income 36,483 37,383 36,746 36,940 35,508 ) -2.7%
Investment expenses 1,284 1,353 1,004 1,114 1,088 ) -15.3%
Interest Expense on Surplus Note 15,146 15,495 15,741 15,825 15,515 2.4%
Net investment income $ 20,052 $ 20,535 $ 20,001 $ 20,001 $ 18,905 ) -5.7%
Fixed income book yield, end of period 3.30 % 3.31 % 3.23 % 3.12 % 3.18 %
New money yield 1.72 % 2.68 % 2.21 % 1.60 % 3.37 %
YOY Q1
Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022 % Pt<br>Change
Fixed Income Portfolio Quality Ratings
Rating
AAA 16.6 % 16.5 % 18.0 % 18.7 % 21.0 % %
AA 12.2 % 11.6 % 11.0 % 11.8 % 11.2 % %
A 23.0 % 22.1 % 23.6 % 24.4 % 23.7 % %
BBB 44.0 % 45.5 % 42.9 % 40.8 % 39.8 % %
Below Investment Grade 4.1 % 4.2 % 4.1 % 3.5 % 3.1 % %
NA 0.1 % 0.1 % 0.3 % 0.8 % 1.2 % %
Total Fixed Income 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Average rating by amortized cost A- A- A A A

All values are in US Dollars.

As of March 31, 2022 As of March 31, 2022 As of March 31, 2022
Market<br><br><br>Value Amortized<br><br><br>Cost Credit<br><br><br>Rating Market<br><br><br>Value Amortized<br><br><br>Cost Market<br><br><br>Value Amortized<br><br><br>Cost
Top 25 Exposures Foreign Exposure (1) Government Investments (1)
1 Canada $ 17,054 $ 17,505 AAA Canada $ 96,017 $ 96,975 AAA $ 2,053 $ 2,131
2 Province of Ontario Canada 13,940 14,140 A+ Australia 26,547 26,585 AA 8,717 8,657
3 Province of Quebec Canada 13,283 13,234 AA- United Kingdom 17,848 17,754 A 14,694 15,240
4 Morgan Stanley 13,072 13,079 BBB+ Cayman Islands 15,325 15,595 BBB 11,416 11,647
5 TC Energy Corp 11,993 12,583 BBB+ Japan 10,285 10,198 Below Investment Grade 3,136 3,430
6 Province of Alberta Canada 11,919 12,319 A Ireland 9,223 9,458 NA — —
7 ConocoPhillips 11,507 11,060 A- Bermuda 8,916 8,902 Total $ 40,015 $ 41,105
8 Enbridge Inc 11,340 11,708 BBB+ France 8,251 8,192
9 Manulife Financial Corp 10,418 10,434 A Mexico 7,095 7,575
10 Oracle Corp 10,285 10,274 BBB+ Netherlands 6,061 5,456 Non-Government Investments (1)
11 Capital One Financial Corp 9,904 9,811 BBB Supranational 4,567 4,620
12 Ontario Teachers' Pension Plan 9,820 10,201 AA+ Switzerland 4,400 4,536 AAA $ 2,975 $ 2,999
13 Western & Southern Mutual Holdings Co 9,364 9,580 AA- Brazil 4,271 4,368 AA 4,412 4,429
14 Fairfax Financial Holdings Ltd 9,153 9,854 BBB- Israel 3,693 3,554 A 56,133 56,126
15 Kemper Corp 8,998 9,096 BBB Luxembourg 3,450 3,500 BBB 138,498 139,711
16 Province of British Columbia Canada 8,775 8,893 AA+ Emerging Markets  (2) 13,746 14,389 Below Investment Grade 12,330 12,140
17 Province of Newfoundland and Labrador 8,752 8,913 A All Other 18,685 18,842 NA 4,018 3,990
18 Entergy Corp 8,691 9,008 BBB+ Total $ 258,380 $ 260,501 Total $ 218,365 $ 219,396
19 Province of New Brunswick Canada 8,628 8,660 A+
20 Bristol-Myers Squibb Co 8,555 8,608 A+
21 GATX Corp 7,930 7,792 BBB
22 Bunge Ltd 7,785 8,146 BBB
23 The Williams Cos Inc 7,775 8,091 BBB
24 Realty Income Corp 7,736 7,871 A-
25 Air Lease Corp 7,521 7,882 BBB
Total $ 254,198 $ 258,741
% of total fixed income portfolio 8.0 % 8.0 %
(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.

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Five-Year Historical Key Statistics PRIMERICA, INC.<br><br><br>Financial Supplement
(Dollars in millions) 2017 2018 2019 2020 2021 Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Q4<br><br><br>2021 Q1<br><br><br>2022
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Recruits 303,867 290,886 282,207 400,345 349,374 94,633 89,285 91,884 73,572 84,707
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
New life-licensed representatives 48,535 48,041 44,739 48,106 39,622 10,833 10,112 9,381 9,296 9,983
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 )
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
Issued term life policies 312,799 301,589 287,809 352,868 323,855 82,667 90,071 75,914 75,203 71,324
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
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
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
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 )
Foreign currency impact, net 5,769 (7,708 ) 4,746 1,968 862 1,422 1,602 (2,480 ) 319 1,242
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
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
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
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
Investment & Savings product sales $ 6,192.2 $ 7,040.1 $ 7,533.2 $ 7,842.5 $ 11,703.1 $ 2,853.5 $ 3,040.2 $ 2,790.4 $ 3,019.0 $ 3,065.4
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
Closed U.S. Mortgage Volume (brokered) $ — $ — $ 31.1 $ 442.5 $ 1,229.2 $ 262.3 $ 298.6 $ 337.6 $ 330.8 $ 235.9

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