Equibles

8-K

Primerica, Inc. (PRI)

8-K 2021-11-08 For: 2021-11-08
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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 8, 2021

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 November 8, 2021, Primerica, Inc. (the “Company”) announced its results of operations for the quarter ended September 30, 2021. 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 operating income before taxes, adjusted net operating income, and diluted adjusted operating earnings per share also exclude the transaction-related expenses associated with the purchase of 80% of e-TeleQuote Insurance, Inc. and subsidiaries (collectively, “e-TeleQuote”), as well as 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 November 8, 2021, the Company posted to the “Investor Relations” section of its website certain supplemental financial information relating to the quarter ended September 30, 2021.  A copy of the supplemental financial information is attached hereto as Exhibit 99.2.

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

Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1 Press Release dated November 8, 2021 – Primerica Reports Third Quarter 2021 Results
99.2 Primerica, Inc. Supplemental Financial Information – Third Quarter 2021
104 Cover Page from this Current Report on Form 8-K, formatted in Inline XBRL

SIGNATURES

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

Date:  November 8, 2021 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 THIRD QUARTER 2021 RESULTS

Investment and Savings Products sales increased 52% with ending client asset values at $92 billion

Term Life net premiums grew 12%; adjusted direct premiums grew 13%

Net earnings per diluted share (EPS) of $2.82 remained unchanged; return on stockholders’ equity (ROE) of 21.8%

Diluted adjusted operating EPS of $2.98, up 7%; adjusted net operating income return on adjusted stockholders’ equity (ROAE) of 24.1%

Declared dividend of $0.47 per share, payable on December 14, 2021

Duluth, GA, November 8, 2021 – Primerica, Inc. (NYSE: PRI) today announced financial results for the quarter ended September 30, 2021.  Total revenues of $693.2 million increased 22% compared to the third quarter of 2020.  Net income attributable to Primerica of $112.4 million and earnings per diluted share of $2.82 remained largely unchanged compared to the same quarter last year.  ROE was 21.8% for the period.  Results include revenues of $22.9 million and a net loss attributable to Primerica of $4.6 million associated with the acquisition of 80% of e-TeleQuote Insurance, Inc. and subsidiaries, (collectively “e-TeleQuote”) on July 1, 2021. This net loss attributable to Primerica reduced earnings per diluted share by approximately $0.12 for the quarter.

Adjusted operating revenues were $692.5 million, increasing 22% compared to the third quarter of 2020.  Adjusted net operating income of $118.7 million and diluted adjusted operating earnings per share of $2.98 both increased 7% compared to the same quarter last year.  ROAE was 24.1% for the period.  Results reflect revenues of $22.9 million and an adjusted net operating loss of $4.6 million associated with the acquisition of e-TeleQuote.  This adjusted net operating loss reduced diluted adjusted operating EPS by approximately $0.12 for the quarter.  For a detailed explanation of the accounting implications of the e-TeleQuote acquisition see the paragraph titled “Business Combination Accounting” later in the release.  More information regarding non-GAAP measures, including a reconciliation of non-GAAP to GAAP financial measures is included at the end of this release.

Third quarter results reflected continued strong momentum in investment and savings product sales with client asset values remaining at record levels.  As anticipated, term life issued policies started to normalize toward pre-pandemic levels during the period.  Persistency continued to be very favorable, while claims remained elevated versus historic levels due to COVID-19. Senior Health approved policies and related commission revenues were seasonally low in the third quarter, while costs related to licensed agents were high in preparation for the annual Medicare election period that began October 15.

“Primerica continues to adapt to the changing business environment and consumer sentiment,” said Glenn Williams, Chief Executive Officer.  “Our Investment and Savings business is experiencing strong growth as we meet clients’ desire to save for their futures.  Client demand for life insurance protection is moving closer to pre-pandemic levels.  These complementary dynamics of our model are driving strong financial results and making Primerica an attractive business opportunity for entrepreneurs.  Our strategic acquisition of e-TeleQuote adds a new dynamic to our business which meets the needs of additional clients, improves the opportunity for our field force and creates upside for stockholders.”

Third Quarter Distribution & Segment Results

Distribution Results
Q3 2021 Q3 2020 % Change
Life-Licensed Sales Force ^(1)^ 130,023 136,306 (5 )%
Recruits 91,884 101,861 (10 )%
New Life-Licensed Representatives 9,381 13,138 (29 )%
Life Insurance Policies Issued 75,914 100,199 (24 )%
Life Productivity^(2)^ 0.19 0.25 *
ISP Product Sales ($ billions) $ 2.79 $ 1.84 52 %
Average Client Asset Values ($ billions) $ 92.65 $ 71.51 30 %
Senior Health Submitted Policies ^(3)^ 20,867 - *
Senior Health Approved Policies ^(4)^ 18,276 - *
Closed U.S. Mortgage Volume ($ million brokered) $ 337.6 $ 160.0 111 %
^(1)^ End of period
--- ---
^(2)^ Life productivity equals policies issued divided by the average number of life insurance licensed representatives per month
--- ---
^(3)^ Represents the number of completed applications that, with respect to each such application, the applicant has authorized us to submit to the health insurance carrier
--- ---
^(4)^ Represents an estimate of submitted policies approved by health insurance carriers during the indicated period. Not all approved policies will go in force
--- ---

* Not calculated

Segment Results
Q3 2021 Q3 2020 % Change
( in thousands)
Adjusted Operating Revenues:
Term Life Insurance $ 357,799 12 %
Investment and Savings Products 176,337 32 %
Senior Health - *
Corporate and Other Distributed Products ^(1)^ 32,518 7 %
Total adjusted operating revenues ^(1)^ $ 566,654 22 %
Adjusted Operating Income (Loss) before<br><br><br>income taxes:
Term Life Insurance $ 105,315 2 %
Investment and Savings Products 51,372 35 %
Senior Health ) - *
Corporate and Other Distributed Products ^(1)^ ) (12,011 ) 13 %
Total adjusted operating income before<br><br><br>income taxes ^(1)^ $ 144,676 8 %

All values are in US Dollars.

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

* Not calculated

Life Insurance Licensed Sales Force

Recruiting activity remained strong versus historical trends with 91,884 individuals joining Primerica during the third quarter.  New life licenses continue to lag historical pull-through levels largely due to lingering COVID-related challenges, which the Company is addressing aggressively.

The Company ended the quarter with a total of 130,023 independent life-licensed representatives.  As anticipated, the number of COVID-related temporary licenses and licenses with extended renewal dates continued to decline.  On September 30, the number of independent life-licensed representatives included approximately 800 of these licenses, down from about 2,400 at the end of the second quarter.  The majority of these licenses are expected to terminate by year end.

Term Life Insurance

During the third quarter, the Company issued nearly 76,000 term life insurance policies with productivity at 0.19 policies per life-licensed representatives per month.  These metrics reflect a normalization toward pre-pandemic levels, whereas the prior year period reflected peak COVID-related sales.

Revenues of $401.5 million increased 12% year-over-year, driven by 13% growth in adjusted direct premiums. The compounding impact of 18 months of strong sales and policy persistency continues to drive adjusted direct premium growth, adding $12 million to pre-tax income during the quarter, up from $5 million in the prior year period.  COVID-related claims remained elevated at $14 million during the quarter, increasing $6 million compared to the third quarter of 2020.  The increase was driven by a higher number of deaths in the general population and younger individuals who are more heavily

represented in the Company’s insured population being impacted. Persistency remained well above pre-pandemic levels, resulting in $11 million lower DAC amortization and $6 million higher benefit reserves in the period for a net increase of $5 million to pre-tax income.  The corresponding increase was $14 million in the prior year period when persistency was at an all-time high.  The combined impact of these items constrained pre-tax income growth to 2%.

Investment and Savings Products

Total investment product sales during the third quarter were $2.8 billion, a 52% increase year-over-year.  Investor confidence and a heightened focus on saving for the future fueled record sales.  The Company continues to see solid year-over-year growth across all products, including mutual funds, annuities and managed accounts.  Net client inflows of $1.0 billion during the quarter were approximately twice the level of the prior year period.  Client asset values ended the quarter at $91.8 billion, an increase of 26% year-over-year, reflecting strong market performance and nearly $4.0 billion of net client inflows over the last twelve months.

Revenues of $233.3 million during the quarter increased 32% compared to the same quarter in 2020, while pre-tax income of $69.4 million increased 35%.  Sales-based revenues increased 45%, slightly less than revenue generating sales due to a higher proportion of large trades which have a lower per-sale commission rate.  Asset-based revenues increased 31%, in line with the increase in average client asset values.  Sales and asset-based commission expenses were largely in line with revenues.

Senior Health

The third quarter is typically a period with lower approved policies as the Medicare Advantage Annual Election Period begins in October.  Challenges experienced in the labor market throughout the year created difficulties in recruiting and retaining senior health sales center employees during the quarter.   Policies submitted in the third quarter resulted in an estimated 18,276 approved policies for the period.  The Company launched its certification process for Primerica representatives and began generating leads for e-TeleQuote agents late in the quarter.

Third quarter revenues were $22.9 million and the adjusted operating loss before taxes attributable to Primerica, including purchase accounting adjustments, was $6.6 million.  These results reflect the seasonally low levels of approved policies during the period and elevated agent costs, including training and licensing, as e-TeleQuote prepared for the Annual Election Period.

Corporate and Other Distributed Products

During the third quarter, the segment recorded an adjusted operating loss before taxes of $13.5 million compared to $12.0 million loss in the same period last year.  Segment adjusted revenues increased $2.2 million, or 7% year-over-year.  The increase was due to $6.0 million growth in sales commissions, including $3.7 million higher commissions from mortgage sales. The increase was partially offset by $3.7 million lower allocated

net investment income from lower portfolio yields and a higher allocation of net investment income to the Term Life segment to support the growing block of business.

Adjusted operating benefits and expenses increased $3.7 million, or 8% due largely to $2.6 million in mortgage commissions and support costs as well as $0.9 million of commissions related to other third-party products.

Taxes

The effective tax rate was 24.2% in the third quarter of 2021 compared to 23.5% in the third quarter of 2020.  The year-over-year increase in the effective tax rate was primarily due to a higher proportion of earnings coming from our Canadian operations, which incur income taxes at a higher statutory rate than the U.S.

Capital

As of September 30, 2021, invested assets and cash at the holding company was $192 million.  Using the new NAIC bond factors approach, which goes into effect for 2021 year-end reporting, Primerica Life Insurance Company's statutory risk-based capital (RBC) ratio was estimated to be about 420% as of September 30, 2021.  The Board of Directors has approved a dividend of $0.47 per share, payable on December 14, 2021, to stockholders of record on November 22, 2021.

Business Combination Accounting

The Company accounts for the acquisition of e-TeleQuote as a business combination in accordance with GAAP, which requires most identifiable assets and liabilities acquired in a business combination to be recorded at fair value at the acquisition date subject to certain exceptions such as renewal commissions receivable and deferred income taxes.  Accordingly, the Company recognized preliminary balances for the acquired values of assets and liabilities including customer relationship intangibles, renewal commissions receivable and noncontrolling interest as of July 1, 2021.  The excess of the fair value of purchase consideration over the acquired values of these identifiable assets and liabilities is recorded as goodwill.  Consolidated net income during the current period includes pre-tax amortization of acquired intangibles of $2.9 million and a pre-tax reduction to share-based compensation expense for equity awards exchanged in the business combination of $1.0 million.  The $1.0 million reduction to share-based compensation is excluded from adjusted operating results.  Refer to the next paragraph for more information regarding non-GAAP financial measures.

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 operating income before taxes, adjusted net operating income, and diluted adjusted operating earnings per share also exclude the transaction-related expenses associated with the purchase of 80% of e-TeleQuote Insurance, Inc. and subsidiaries (collectively, “e-TeleQuote”), as well as 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 Tuesday, November 9, 2021 at 10:00 a.m. Eastern, to discuss the quarter’s results.  To access the webcast, go to https://investors.primerica.com at least 15 minutes prior to the event to register, download and install any necessary software.  A replay of the call will be available for approximately 30 days.  This release and a detailed financial supplement will be posted on Primerica’s website.

Forward-Looking Statements

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

environment in which we operate; the loss of key personnel or sales force leaders; any acquisition or investment in businesses that do not perform as we expect or are difficult to integrate; due to our very limited history with e-TeleQuote, we cannot be certain that its business will be successful or that we will successfully address any risks not known to us that may become material; a failure by e-TeleQuote to comply with the requirements of the United States government’s Centers for Medicare and Medicaid Services and those of its carrier partners; legislative or regulatory changes to Medicare Advantage or changes to the implementing guidance by the Centers for Medicare and Medicaid Services; e-TeleQuote’s inability to acquire or generate leads on commercially viable terms, convert leads to sales or if customer policyholder retention is lower than assumed; e-TeleQuote’s inability to enroll individuals during the Medicare annual election; 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 approximately 5.5 million lives and had over 2.6 million client investment accounts at December 31, 2020. Primerica, through its insurance company subsidiaries, was the #2 issuer of Term Life insurance coverage in North America in 2020. 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:

Keith Hancock

470-564-6328

Email: Keith.Hancock@Primerica.com

PRIMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
September 30, 2021 December 31, 2020
(In thousands)
Assets
Investments:
Fixed-maturity securities available-for-sale, at fair value $ 2,595,504 $ 2,464,611
Fixed-maturity security held-to-maturity, at amortized cost 1,376,090 1,346,350
Short-term investments available-for-sale, at fair value 40,037 -
Equity securities, at fair value 40,946 38,023
Trading securities, at fair value 26,251 16,300
Policy loans 28,079 30,199
Total investments 4,106,907 3,895,483
Cash and cash equivalents 325,578 547,569
Accrued investment income 19,499 17,618
Reinsurance recoverables 4,278,322 4,273,904
Deferred policy acquisition costs, net 2,877,921 2,629,644
Renewal commissions receivable 268,952 54,845
Agent balances, due premiums and other receivables 271,626 259,448
Goodwill 224,180 -
Intangible assets 204,550 45,275
Income taxes 74,556 73,290
Operating lease right-of-use assets 48,943 46,567
Other assets 442,495 402,122
Separate account assets 2,672,606 2,659,520
Total assets $ 15,816,135 $ 14,905,285
Liabilities and Stockholders' Equity
Liabilities:
Future policy benefits $ 7,057,599 $ 6,790,557
Unearned and advance premiums 19,208 17,136
Policy claims and other benefits payable 557,125 519,711
Other policyholders' funds 478,592 447,765
Notes payable - short term 389,702 -
Other debt obligations - long term 125,000 374,415
Surplus note 1,375,559 1,345,772
Income taxes 260,264 223,496
Operating lease liabilities 55,002 52,806
Other liabilities 613,641 566,068
Payable under securities lending 105,264 72,154
Separate account liabilities 2,672,606 2,659,520
Total liabilities 13,709,562 13,069,400
Temporary Stockholders' Equity
Redeemable noncontrolling interests in consolidated entities 7,631 -
Permanent Stockholders' equity
Equity attributable to Primerica, Inc.:
Common stock 395 393
Paid-in capital 17,454 -
Retained earnings 1,988,324 1,705,786
Accumulated other comprehensive income (loss), net of income tax 92,769 129,706
Total permanent stockholders' equity 2,098,942 1,835,885
Total liabilities and temporary and permanent stockholders' equity $ 15,816,135 $ 14,905,285
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- ---
Condensed Consolidated Statements of Income
(Unaudited)
Three months ended September 30,
2021 2020
(In thousands, except per-share amounts)
Revenues:
Direct premiums $ 785,277 $ 736,606
Ceded premiums (401,295 ) (393,716 )
Net premiums 383,982 342,890
Commissions and fees 269,796 185,302
Net investment income 20,000 22,953
Realized investment gains (losses) 1,410 642
Other, net 18,051 16,674
Total revenues 693,239 568,461
Benefits and expenses:
Benefits and claims 183,425 160,166
Amortization of deferred policy acquisition costs 62,214 47,491
Sales commissions 129,268 91,950
Insurance expenses 51,901 46,109
Insurance commissions 8,412 9,694
Contract acquisition costs 23,524 -
Interest expense 7,529 7,221
Other operating expenses 79,864 59,347
Total benefits and expenses 546,137 421,978
Income before income taxes 147,102 146,483
Income taxes 35,663 34,382
Net income (loss) $ 111,439 $ 112,101
Net income (loss) attributable to noncontrolling interests (1,017 ) -
Net income (loss) attributable to Primerica, Inc. $ 112,456 $ 112,101
Earnings per share attributable to common stockholders:
Basic earnings per share $ 2.83 $ 2.82
Diluted earnings per share $ 2.82 $ 2.81
Weighted-average shares used in computing<br><br><br>earnings per share:
Basic 39,561 39,588
Diluted 39,679 39,710
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- --- --- --- ---
Consolidated Adjusted Operating Results Reconciliation
(Unaudited – in thousands, except per share amounts)
Three months ended September 30,
2021 2020 % Change
Total revenues $ 693,239 $ 568,461 22 %
Less: Realized investment gains (losses) 1,410 642
Less: 10% deposit asset MTM included in NII (640 ) 1,165
Adjusted operating revenues $ 692,469 $ 566,654 22 %
Income before income taxes $ 147,102 $ 146,483 0 %
Less: Realized investment gains (losses) 1,410 642
Less: 10% deposit asset MTM included in NII (640 ) 1,165
Less: e-TeleQuote transaction-related expenses (10,027 ) -
Less: Equity comp for awards exchanged during acquisition 1,004 -
Less: Noncontrolling interest (1,465 ) -
Adjusted operating income before income taxes $ 156,820 $ 144,676 8 %
Net income $ 111,439 $ 112,101 (1 )%
Less: Realized investment gains (losses) 1,410 642
Less: 10% deposit asset MTM included in NII (640 ) 1,165
Less: e-TeleQuote transaction-related expenses (10,027 ) -
Less: Equity comp for awards exchanged during acquisition 1,004 -
Less: Noncontrolling interest (1,465 ) -
Less: Tax impact of preceding items 2,449 (424 )
Adjusted net operating income $ 118,708 $ 110,718 7 %
Diluted earnings per share ^(1)^ $ 2.82 $ 2.81 0 %
Less: Net after-tax impact of operating adjustments (0.16 ) 0.03
Diluted adjusted operating earnings per share ^(1)^ $ 2.98 $ 2.78 7 %
^(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,
2021 2020 % Change
Direct premiums $ 779,490 $ 730,273 7 %
Less: Premiums ceded to IPO coinsurers 241,439 254,938
Adjusted direct premiums 538,051 475,335 13 %
Ceded premiums (399,835 ) (392,004 )
Less: Premiums ceded to IPO coinsurers (241,439 ) (254,938 )
Other ceded premiums (158,396 ) (137,066 )
Net premiums $ 379,655 $ 338,269 12 %
SENIOR HEALTH SEGMENT
--- --- --- --- --- --- ---
Adjusted Operating Results Reconciliation
(Unaudited – in thousands)
Three months ended September 30,
2021 2020 % Change
Loss before income taxes $ (8,490 ) $ -
Less: e-TeleQuote transaction-related costs (417 ) -
Less: Noncontrolling interest (1,465 ) -
Adjusted operating loss before taxes $ (6,608 ) $ -
CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT
--- --- --- --- --- --- --- --- --- ---
Adjusted Operating Results Reconciliation
(Unaudited – in thousands)
Three months ended September 30,
2021 2020 % Change
Total revenues $ 35,515 $ 34,325 3 %
Less: Realized investment gains (losses) 1,410 642
Less: 10% deposit asset MTM included in NII (640 ) 1,165
Adjusted operating revenues $ 34,745 $ 32,518 7 %
Loss before income taxes $ (21,365 ) $ (10,204 ) 109 %
Less: Realized investment gains (losses) 1,410 642
Less: 10% deposit asset MTM included in NII (640 ) 1,165
Less: e-TeleQuote transaction-related expenses (9,610 ) -
Less: Equity comp for awards exchanged during acquisition 1,004 -
Adjusted operating loss before income taxes $ (13,529 ) $ (12,011 ) 13 %
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- --- ---
Adjusted Stockholders' Equity Reconciliation
(Unaudited – in thousands)
September 30, 2021 December 31, 2020 % Change
Stockholders' equity $ 2,098,942 $ 1,835,885 14 %
Less: Unrealized net investment gains (losses) recorded<br><br><br>in stockholders' equity, net of income tax 84,701 128,128
Adjusted stockholders' equity $ 2,014,241 $ 1,707,757 18 %

12

pri-ex992_7.htm

Exhibit 99.2

Supplemental Financial Information

Third Quarter 2021

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.

2 of 16

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

Third Quarter 2021

This document is a financial supplement to our third 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 realized investment gains/losses, including credit impairments, mark-to-market (MTM) investment adjustments, transaction-related expenses associated with the purchase of 80% of e-TeleQuote Insurance, Inc. and subsidiaries (collectively, “e-TeleQuote”), as well as adjustments to share-based compensation expense for shares exchanged in the business combination.  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 the Company's insurance operations.  We exclude e-TeleQuote transaction-related expenses in our non-GAAP financial measures as such expenses are non-recurring items that will cause incomparability between period-over-period results.  We exclude adjustments to share-based compensation expense for shares exchanged in the business combination to eliminate period-over-period fluctuations that may obscure comparisons of operating results primarily due to the volatility of changes in the fair value of shares prior to the dates they can ultimately be redeemed. Adjusted operating income before income taxes and adjusted net operating income exclude income attributable to the noncontrolling interest to present only the income that is attributable to stockholders of the Company.
• Adjusted stockholders’ equity refers to the removal of the impact of net unrealized gains and losses on invested assets.  We exclude unrealized investment gains and losses in measuring adjusted stockholders' equity as unrealized gains and losses from the Company's invested assets are largely caused by market movements in interest rates and credit spreads that do not necessarily correlate with the cash flows we will ultimately realize when an invested asset matures or is sold.
--- ---
• IPO coinsurance transactions adjustments relate to transactions in the first quarter of 2010, where we coinsured between 80% and 90% of our business that was in-force at year-end 2009 to entities then affiliated with Citigroup Inc. that were executed concurrent with our initial public offering (IPO).  We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate within this block of business.
--- ---

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

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

3 of 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>2019 Mar 31,<br><br><br>2020 Jun 30,<br><br><br>2020 Sep 30,<br><br><br>2020 Dec 31,<br><br><br>2020 Mar 31,<br><br><br>2021 Jun 30,<br><br><br>2021 Sep 30,<br><br><br>2021
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Condensed Balance Sheets
Assets:
Investments and cash excluding securities held to maturity $ 2,730,715 $ 2,626,043 $ 2,805,065 $ 2,861,883 $ 3,096,703 $ 3,133,860 $ 3,431,825 $ 3,056,395
Securities held to maturity 1,184,370 1,237,270 1,278,580 1,323,740 1,346,350 1,362,210 1,368,740 1,376,090
Total investments and cash 3,915,085 3,863,313 4,083,645 4,185,623 4,443,053 4,496,070 4,800,565 4,432,485
Due from reinsurers 4,169,823 4,132,897 4,217,129 4,229,088 4,273,904 4,345,483 4,239,510 4,278,322
Deferred policy acquisition costs 2,325,750 2,346,656 2,434,462 2,532,409 2,629,644 2,712,169 2,808,347 2,877,921
Goodwill — — — — — — — 224,180
Other assets 792,129 799,123 851,660 885,083 899,165 921,236 925,621 1,330,620
Separate account assets 2,485,745 2,128,924 2,377,654 2,468,328 2,659,520 2,638,901 2,745,827 2,672,606
Total assets $ 13,688,532 $ 13,270,912 $ 13,964,550 $ 14,300,532 $ 14,905,286 $ 15,113,858 $ 15,519,871 $ 15,816,135
Liabilities:
Future policy benefits $ 6,446,569 $ 6,472,397 $ 6,567,169 $ 6,664,061 $ 6,790,557 $ 6,885,115 $ 6,984,272 $ 7,057,599
Other policy liabilities 744,087 737,435 855,083 911,454 984,612 1,020,349 977,373 1,054,925
Income taxes 209,221 208,357 265,369 216,639 223,496 235,233 204,197 260,264
Other liabilities 563,931 554,014 574,426 573,254 618,874 633,719 641,025 668,643
Debt obligations 374,037 374,131 374,226 374,320 374,415 374,511 499,606 514,702
Surplus note 1,183,728 1,236,644 1,277,970 1,323,146 1,345,772 1,361,648 1,368,194 1,375,559
Payable under securities lending 28,723 28,896 29,973 48,883 72,154 87,190 80,613 105,264
Separate account liabilities 2,485,745 2,128,924 2,377,654 2,468,328 2,659,520 2,638,901 2,745,827 2,672,606
Total liabilities 12,036,041 11,740,798 12,321,870 12,580,086 13,069,401 13,236,666 13,501,107 13,709,563
Redeemable noncontrolling interest — — — — — — — 7,631
Stockholders’ equity:
Common stock (0.01 par value) (1) 412 405 397 394 393 394 394 395
Paid-in capital (0 ) (0 ) (0 ) (0 ) (0 ) 8,138 12,880 17,454
Retained earnings 1,593,281 1,565,803 1,569,689 1,629,114 1,705,786 1,785,037 1,894,539 1,988,324
Treasury stock — — — — — — — —
Accumulated other comprehensive income (loss), net:
64,564 (1,318 ) 93,726 105,758 128,128 77,053 96,990 84,701
(5,765 ) (34,776 ) (21,132 ) (14,820 ) 1,578 6,570 13,960 8,068
Total stockholders’ equity (2) 1,652,492 1,530,114 1,642,680 1,720,446 1,835,885 1,877,192 2,018,764 2,098,941
Total liabilities and stockholders' equity $ 13,688,532 $ 13,270,912 $ 13,964,550 $ 14,300,532 $ 14,905,286 $ 15,113,858 $ 15,519,871 $ 15,816,135
Reconciliation of Total Stockholders' Equity to Adjusted Stockholders' Equity
Total stockholders' equity $ 1,652,492 $ 1,530,114 $ 1,642,680 $ 1,720,446 $ 1,835,885 $ 1,877,192 $ 2,018,764 $ 2,098,941
Less: Net unrealized gains (losses) 64,564 (1,318 ) 93,726 105,758 128,128 77,053 96,990 84,701
Adjusted stockholders’ equity $ 1,587,928 $ 1,531,431 $ 1,548,954 $ 1,614,688 $ 1,707,757 $ 1,800,139 $ 1,921,774 $ 2,014,241
Adjusted Stockholders' Equity Rollforward
Balance, beginning of period $ 1,541,436 $ 1,587,928 $ 1,531,431 $ 1,548,954 $ 1,614,688 $ 1,707,757 $ 1,800,139 $ 1,921,774
Net Income attributable to Primerica, Inc. 93,557 72,469 101,510 112,101 100,084 97,872 128,162 112,456
Shareholder dividends (14,162 ) (16,530 ) (16,083 ) (15,882 ) (15,851 ) (18,620 ) (18,660 ) (18,671 )
Retirement of shares and warrants (44,137 ) (95,676 ) (86,513 ) (41,556 ) (13,426 ) (5,966 ) (521 ) (88 )
Net foreign currency translation adjustment 6,500 (29,011 ) 13,645 6,312 16,398 4,992 7,390 (5,892 )
Other, net 4,734 12,252 4,964 4,759 5,864 14,105 5,264 4,662
Balance, end of period $ 1,587,928 $ 1,531,431 $ 1,548,954 $ 1,614,688 $ 1,707,757 $ 1,800,139 $ 1,921,774 $ 2,014,241
Deferred Policy Acquisition Costs Rollforward
Balance, beginning of period $ 2,281,560 $ 2,325,750 $ 2,346,656 $ 2,434,462 $ 2,532,409 $ 2,629,644 $ 2,712,169 $ 2,808,347
General expenses deferred 8,608 9,726 9,205 9,702 9,510 10,558 10,055 9,248
Commission costs deferred 97,538 104,793 120,967 130,719 128,084 134,188 136,085 129,287
Amortization of deferred policy acquisition costs (67,279 ) (70,311 ) (53,177 ) (47,491 ) (53,342 ) (66,105 ) (54,286 ) (62,214 )
Foreign currency impact and other, net 5,322 (23,302 ) 10,812 5,017 12,984 3,884 4,324 (6,748 )
Balance, end of period $ 2,325,750 $ 2,346,656 $ 2,434,462 $ 2,532,409 $ 2,629,644 $ 2,712,169 $ 2,808,347 $ 2,877,921

All values are in US Dollars.

(1) Outstanding common shares exclude restricted stock units.
(2) Reflects the company's permanent stockholders' equity and does not include temporary stockholders' equity
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4 of 16

Financial Results and Other Statistical Data PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except per-share data) Q1<br><br><br>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 Q4<br><br><br>2020 Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 /#<br>Change %<br><br><br>Change YTD<br><br><br>2020 YTD<br><br><br>2021 /#<br>Change %<br><br><br>Change
Earnings per Share
Basic earnings per share:
Weighted-average common shares and fully vested equity awards 41,131,200 40,131,877 39,587,978 39,420,628 39,455,948 39,530,691 39,560,786 ) -0.1 % 40,281,146 39,516,193 ) -1.9%
Net income attributable to Primerica, Inc. $ 72,469 $ 101,510 $ 112,101 $ 100,084 $ 97,872 $ 128,162 $ 112,456 0.3 % $ 286,080 $ 338,489 18.3%
Less income attributable to unvested participating securities (310 ) (437 ) (493 ) (433 ) (417 ) (525 ) (458 ) 7.0 % (1,239 ) (1,403 ) ) -13.3%
Net income used in computing basic EPS $ 72,159 $ 101,073 $ 111,608 $ 99,651 $ 97,455 $ 127,636 $ 111,997 0.3 % $ 284,841 $ 337,086 18.3%
Basic earnings per share $ 1.75 $ 2.52 $ 2.82 $ 2.53 $ 2.47 $ 3.23 $ 2.83 0.4 % $ 7.07 $ 8.53 20.6%
Adjusted net operating income $ 85,047 $ 98,480 $ 110,718 $ 97,339 $ 97,129 $ 129,355 $ 118,708 7.2 % $ 294,245 $ 345,193 17.3%
Less operating income attributable to unvested participating securities (364 ) (424 ) (487 ) (421 ) (414 ) (530 ) (484 ) 0.6 % (1,274 ) (1,431 ) ) -12.3%
Adjusted net operating income used in computing basic operating EPS $ 84,682 $ 98,056 $ 110,231 $ 96,918 $ 96,715 $ 128,825 $ 118,224 7.3 % $ 292,971 $ 343,762 17.3%
Basic adjusted operating income per share $ 2.06 $ 2.44 $ 2.78 $ 2.46 $ 2.45 $ 3.26 $ 2.99 7.3 % $ 7.27 $ 8.70 19.6%
Diluted earnings per share:
Weighted-average common shares and fully vested equity awards 41,131,200 40,131,877 39,587,978 39,420,628 39,455,948 39,530,691 39,560,786 ) -0.1 % 40,281,146 39,516,193 ) -1.9%
Dilutive impact of contingently issuable shares 107,361 114,090 122,097 133,544 124,505 121,595 117,923 ) -3.4 % 114,516 121,341 6.0%
Shares used to calculate diluted EPS 41,238,561 40,245,967 39,710,075 39,554,172 39,580,453 39,652,286 39,678,709 ) -0.1 % 40,395,662 39,637,534 ) -1.9%
Net income attributable to Primerica, Inc. $ 72,469 $ 101,510 $ 112,101 $ 100,084 $ 97,872 $ 128,162 $ 112,456 0.3 % $ 286,080 $ 338,489 18.3%
Less income attributable to unvested participating securities (310 ) (436 ) (492 ) (431 ) (416 ) (524 ) (457 ) 7.0 % (1,236 ) (1,399 ) ) -13.2%
Net income used in computing diluted EPS $ 72,159 $ 101,074 $ 111,609 $ 99,652 $ 97,456 $ 127,638 $ 111,998 0.3 % $ 284,844 $ 337,090 18.3%
Diluted earnings per share $ 1.75 $ 2.51 $ 2.81 $ 2.52 $ 2.46 $ 3.22 $ 2.82 0.4 % $ 7.05 $ 8.50 20.6%
Adjusted net operating income $ 85,047 $ 98,480 $ 110,718 $ 97,339 $ 97,129 $ 129,355 $ 118,708 7.2 % $ 294,245 $ 345,193 17.3%
Less operating income attributable to unvested participating securities (364 ) (423 ) (486 ) (420 ) (413 ) (529 ) (483 ) 0.6 % (1,271 ) (1,427 ) ) -12.3%
Adjusted net operating income used in computing diluted operating EPS $ 84,683 $ 98,057 $ 110,232 $ 96,919 $ 96,717 $ 128,827 $ 118,225 7.3 % $ 292,974 $ 343,766 17.3%
Diluted adjusted operating income per share $ 2.05 $ 2.44 $ 2.78 $ 2.45 $ 2.44 $ 3.25 $ 2.98 7.3 % $ 7.25 $ 8.67 19.6%

All values are in US Dollars.

YOY Q3 YOY YTD
Q1<br><br><br>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 Q4<br><br><br>2020 Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 /#<br>Change %<br><br><br>Change YTD<br><br><br>2020 YTD<br><br><br>2021 /#<br>Change %<br><br><br>Change
Annualized Return on Equity
Average stockholders' equity (1) $ 1,591,303 $ 1,586,397 $ 1,681,563 $ 1,778,166 $ 1,856,539 $ 1,947,978 $ 2,058,852 22.4 % $ 1,619,754 $ 1,954,456 20.7 %
Average adjusted stockholders' equity  (1) $ 1,559,680 $ 1,540,193 $ 1,581,821 $ 1,661,222 $ 1,753,948 $ 1,860,956 $ 1,968,007 24.4 % $ 1,560,564 $ 1,860,971 19.2 %
Net income attributable to Primerica, Inc. return on stockholders' equity 18.2 % 25.6 % 26.7 % 22.5 % 21.1 % 26.3 % 21.8 % % nm 23.5 % 23.1 % % nm
Net income attributable to Primerica, Inc. return on adjusted stockholders' equity 18.6 % 26.4 % 28.3 % 24.1 % 22.3 % 27.5 % 22.9 % % nm 24.4 % 24.3 % % nm
Adjusted net operating income return on adjusted stockholders' equity 21.8 % 25.6 % 28.0 % 23.4 % 22.2 % 27.8 % 24.1 % % nm 25.1 % 24.7 % % nm
Capital Structure
Debt-to-capital (2) 19.6 % 18.6 % 17.9 % 16.9 % 16.6 % 19.8 % 19.7 % % nm 17.9 % 19.7 % % nm
Debt-to-capital, excluding AOCI (2) 19.3 % 19.2 % 18.7 % 18.0 % 17.3 % 20.8 % 20.4 % % nm 18.7 % 20.4 % % nm
Cash and invested assets to stockholders' equity 2.5 x 2.5 x 2.4 x 2.4 x 2.4 x 2.4 x 2.1 x x) nm 2.4 x 2.1 x x) nm
Cash and invested assets to adjusted stockholders' equity 2.5 x 2.6 x 2.6 x 2.6 x 2.5 x 2.5 x 2.2 x x) nm 2.6 x 2.2 x x) nm
Share count, end of period (3) 40,459,767 39,667,002 39,374,259 39,305,902 39,414,085 39,443,561 39,470,748 0.2 % 39,374,259 39,470,748 0.2 %
Adjusted stockholders' equity per share $ 37.85 $ 39.05 $ 41.01 $ 43.45 $ 45.67 $ 48.72 $ 51.03 24.4 % $ 41.01 $ 51.03 24.4 %
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) Reflects the company's permanent stockholders' equity and does not include temporary stockholders' equity
(2) Debt-to-capital is that of the parent company only.  Capital in the debt-to-capital ratio includes stockholders' equity and the note payable.
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(3) Share count reflects outstanding common shares, but excludes restricted stock units (RSUs).
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5 of 16

Statements of Income PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br><br><br>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 Q4<br><br><br>2020 Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Change %<br><br><br>Change YTD<br><br><br>2020 YTD<br><br><br>2021 Change %<br><br><br>Change
Statement of Income
Revenues:
Direct premiums $ 702,637 $ 717,088 $ 736,606 $ 750,818 $ 762,227 $ 780,299 $ 296,622 6.6 % $ 2,156,331 $ 2,327,804 8.0 %
Ceded premiums (386,825 ) (402,549 ) (393,716 ) (397,676 ) (395,973 ) (413,850 ) (168,501 ) ) -1.9 % (1,183,090 ) (1,211,117 ) ) -2.4 %
Net premiums 315,813 314,539 342,890 353,142 366,254 366,450 128,121 12.0 % 973,241 1,116,687 14.7 %
Net investment income 15,420 22,710 22,953 22,731 20,052 20,535 834 ) -12.9 % 61,083 60,588 ) -0.8 %
Commissions and fees:
Sales-based (1) 80,891 62,812 65,600 75,347 98,112 104,716 27,297 45.2 % 209,304 298,057 42.4 %
Asset-based (2) 81,395 78,146 86,695 93,669 101,241 108,490 12,217 31.0 % 246,235 323,288 31.3 %
Account-based (3) 20,204 20,478 21,008 21,351 21,120 21,848 (260 ) 2.1 % 61,690 64,424 4.4 %
Other commissions and fees 7,579 10,352 11,999 13,746 13,571 15,635 3,636 nm 29,930 68,759 129.7 %
Realized investment (losses) gains (10,030 ) 1,742 642 2,650 1,766 701 (205 ) 119.5 % (7,645 ) 3,876 nm
Other, net 13,665 15,036 16,674 15,695 15,595 16,313 10,903 8.3 % 45,375 49,958 10.1 %
Total revenues 524,936 525,815 568,460 598,330 637,711 654,687 182,544 22.0 % 1,619,211 1,985,638 22.6 %
Benefits and expenses:
Benefits and claims 134,813 139,646 160,166 180,945 183,789 168,347 183,425 14.5 % 434,625 535,561 23.2 %
Amortization of DAC 70,311 53,177 47,491 53,342 66,105 54,286 62,214 31.0 % 170,979 182,604 6.8 %
Insurance commissions 6,844 6,333 9,694 9,263 8,740 8,838 8,412 ) -13.2 % 22,871 25,990 13.6 %
Insurance expenses 48,709 43,753 46,109 49,546 48,766 48,579 51,901 12.6 % 138,571 149,246 7.7 %
Sales commissions:
Sales-based (1) 56,561 44,834 46,821 52,931 68,594 73,629 67,745 44.7 % 148,217 209,969 41.7 %
Asset-based (2) 36,323 35,673 39,349 43,227 46,866 50,488 53,233 35.3 % 111,345 150,587 35.2 %
Other sales commissions 3,723 4,985 5,779 6,430 6,434 7,185 8,290 43.4 % 14,487 21,908 51.2 %
Interest expense 7,192 7,200 7,221 7,225 7,145 7,141 7,529 4.3 % 21,614 21,814 0.9 %
Contract acquistion costs (4) — — — — — — 23,524 #DIV/0 ! — 23,524 #DIV/0 !
Other operating expenses 65,914 56,152 59,348 63,781 72,964 66,730 79,866 34.6 % 181,414 219,559 21.0 %
Total benefits and expenses 430,391 391,753 421,978 466,690 509,403 485,222 546,138 29.4 % 1,244,122 1,540,763 23.8 %
Income before income taxes 94,546 134,062 146,482 131,640 128,308 169,465 147,102 0.4 % 375,090 444,875 18.6 %
Income taxes 22,077 32,552 34,382 31,556 30,437 41,304 35,663 3.7 % 89,010 107,403 20.7 %
Net income $ 72,469 $ 101,510 $ 112,101 $ 100,084 $ 97,872 $ 128,162 $ 111,439 ) -0.6 % $ 286,080 $ 337,472 18.0 %
Net income attributable to noncontrolling interests — — — — — — (1,017 ) ) #DIV/0 ! — (1,017 ) ) #DIV/0 !
Net Income attributable to Primerica, Inc. $ 72,469 $ 101,510 $ 112,101 $ 100,084 $ 97,872 $ 128,162 $ 112,456 0.3 % $ 286,080 $ 338,489 18.3 %
Income Before Income Taxes by Segment
Term Life $ 82,892 $ 94,903 $ 105,316 $ 89,440 $ 88,236 $ 116,778 $ 107,589 2.2 % $ 283,111 $ 312,602 10.4 %
Investment & Savings Products 47,700 46,859 51,372 56,713 63,363 71,154 69,369 35.0 % 145,931 203,886 39.7 %
Senior Health — — — — — — (8,489 ) ) #DIV/0 ! — (8,489 ) ) #DIV/0 !
Corporate & Other Distributed Products (36,046 ) (7,700 ) (10,206 ) (14,514 ) (23,290 ) (18,467 ) (21,367 ) ) -109.4 % (53,952 ) (63,124 ) ) -17.0 %
Income before income taxes $ 94,546 $ 134,062 $ 146,482 $ 131,640 $ 128,308 $ 169,465 $ 147,102 0.4 % $ 375,090 $ 444,875 18.6 %

All values are in US Dollars.

(1) Sales-based - revenues or commission expenses relating to the sales of mutual funds and variable annuities.
(2) Asset-based - revenues or commission expenses relating to the value of assets in client accounts for which we earn ongoing service, distribution, and other fees.
--- ---
(3) Account-based - revenues relating to the fee generating client accounts we administer.
--- ---
(4) Contract acquisition costs (CAC) - Includes direct marketing costs incurred to acquire Senior Health product leads through internal and external sources, including commissions paid to Primerica representatives, as well as ETQ agent compensation, training and licensing costs
--- ---

6 of 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>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 Q4<br><br><br>2020 Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Change %<br><br><br>Change YTD<br><br><br>2020 YTD<br><br><br>2021 Change %<br><br><br>Change
Reconciliation from Term Life Direct Premiums to Term Life Adjusted Direct Premiums
Term Life direct premiums $ 696,564 $ 711,188 $ 730,273 $ 745,559 $ 756,514 $ 774,500 $ 779,490 6.7 % $ 2,138,024 $ 2,310,504 8.1 %
Less: Premiums ceded to IPO Coinsurers 260,076 257,529 254,938 253,039 249,944 246,874 241,439 ) -5.3 % 772,543 738,257 ) -4.4 %
Term Life adjusted direct premiums $ 436,488 $ 453,659 $ 475,335 $ 492,520 $ 506,570 $ 527,626 $ 538,051 13.2 % $ 1,365,482 $ 1,572,247 15.1 %
Reconciliation from Term Life Ceded Premiums to Term Life Other Ceded Premiums
Term Life ceded premiums $ (385,232 ) $ (400,919 ) $ (392,004 ) $ (395,767 ) $ (394,550 ) $ (412,028 ) $ (399,835 ) ) -2.0 % $ (1,178,155 ) $ (1,206,413 ) ) -2.4 %
Less: Premiums ceded to IPO Coinsurers (260,076 ) (257,529 ) (254,938 ) (253,039 ) (249,944 ) (246,874 ) (241,439 ) 5.3 % (772,543 ) (738,257 ) 4.4 %
Term Life other ceded premiums $ (125,156 ) $ (143,390 ) $ (137,066 ) $ (142,728 ) $ (144,606 ) $ (165,154 ) $ (158,397 ) ) -15.6 % $ (405,612 ) $ (468,156 ) ) -15.4 %
Reconciliation from Net Investment Income to Adjusted Net Investment Income
Net Investment Income $ 15,420 $ 22,710 $ 22,953 $ 22,731 $ 20,052 $ 20,535 $ 20,000 ) -12.9 % $ 61,083 $ 60,588 ) -0.8 %
Less: MTM investment adjustments (6,379 ) 2,259 1,165 960 (793 ) (170 ) (640 ) nm nm (2,956 ) (1,603 ) nm nm
Adjusted net investment income $ 21,799 $ 20,451 $ 21,788 $ 21,771 $ 20,845 $ 20,705 $ 20,640 ) -5.3 % $ 64,038 $ 62,191 ) -2.9 %
Reconciliation from Other Operating Expenses to Adjusted other operating expenses
Other operating expenses $ 65,914 $ 56,152 $ 59,348 $ 63,781 $ 72,964 $ 66,730 $ 79,866 34.6 % $ 181,414 $ 219,559 21.0 %
Less: eTeleQuote transaction-related costs — — — — — 2,109 10,027 nm nm — 12,136 nm nm
Less: Equity comp for awards exchanged during acquisition — — — — — — (1,004 ) nm nm — (1,004 ) nm nm
Adjusted other operating expenses $ 65,914 $ 56,152 $ 59,348 $ 63,781 $ 72,964 $ 64,620 $ 70,843 19.4 % $ 181,414 $ 208,427 14.9 %
Reconciliation from Total Revenues to Adjusted Operating Revenues
Total revenues $ 524,936 $ 525,815 $ 568,460 $ 598,330 $ 637,711 $ 654,687 $ 693,240 22.0 % $ 1,619,211 $ 1,985,638 22.6 %
Less: Realized investment gains/(losses) (10,030 ) 1,742 642 2,650 1,766 701 1,410 nm nm (7,645 ) 3,876 nm nm
Less: MTM investment adjustments (6,379 ) 2,259 1,165 960 (793 ) (170 ) (640 ) nm nm (2,956 ) (1,603 ) nm nm
Adjusted operating revenues $ 541,346 $ 521,813 $ 566,653 $ 594,720 $ 636,738 $ 654,156 $ 692,470 22.2 % $ 1,629,812 $ 1,983,365 21.7 %
Reconciliation from Income Before Income Taxes to Adjusted Operating Income Before Income Taxes
Income before income taxes $ 94,546 $ 134,062 $ 146,482 $ 131,640 $ 128,308 $ 169,465 $ 147,102 0.4 % $ 375,090 $ 444,875 18.6 %
Less: Realized investment gains/(losses) (10,030 ) 1,742 642 2,650 1,766 701 1,410 nm nm (7,645 ) 3,876 nm nm
Less: MTM investment adjustments (6,379 ) 2,259 1,165 960 (793 ) (170 ) (640 ) nm nm (2,956 ) (1,603 ) nm nm
Less: eTeleQuote transaction-related costs — — — — — (2,109 ) (10,027 ) nm nm — (12,136 ) nm nm
Less: Equity comp for awards exchanged during acquisition — — — — — — 1,004 nm nm — 1,004 nm nm
Less: Noncontrolling interest before income taxes — — — — — — (1,465 ) nm nm — (1,465 ) nm nm
Adjusted operating income before income taxes $ 110,955 $ 130,060 $ 144,676 $ 128,030 $ 127,335 $ 171,044 $ 156,819 8.4 % $ 385,691 $ 455,198 18.0 %
Reconciliation from Net Income to Adjusted Net Operating Income
Net income $ 72,469 $ 101,510 $ 112,101 $ 100,084 $ 97,872 $ 128,162 $ 111,439 ) -0.6 % $ 286,080 $ 337,472 18.0 %
Less: Realized investment gains/(losses) (10,030 ) 1,742 642 2,650 1,766 701 1,410 nm nm (7,645 ) 3,876 nm nm
Less: MTM investment adjustments (6,379 ) 2,259 1,165 960 (793 ) (170 ) (640 ) nm nm (2,956 ) (1,603 ) nm nm
Less: e-TeleQuote transaction-related costs — — — — — (2,109 ) (10,027 ) nm nm — (12,136 ) nm nm
Less: Equity comp for awards exchanged during acquisition — — — — — — 1,004 nm nm — 1,004 nm nm
Less: Noncontrolling interest before income taxes — — — — — — (1,465 ) nm nm — (1,465 ) nm nm
Less: Tax impact of reconciling items 3,832 (972 ) (424 ) (865 ) (231 ) 385 2,449 nm nm 2,436 2,602 nm nm
Adjusted net operating income $ 85,047 $ 98,480 $ 110,718 $ 97,339 $ 97,129 $ 129,355 $ 118,708 7.2 % $ 294,245 $ 345,193 17.3 %

All values are in US Dollars.

7 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>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 Q4<br><br><br>2020 Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 $<br><br><br>Change %<br><br><br>Change YTD<br><br><br>2020 YTD<br><br><br>2021 $<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 na na na na $(8,489) na na na $(8,489) na na
Less: e-TeleQuote transaction-related costs na na na na na na (417) na na na (417) na na
Less: Noncontrolling interest na na na na na na (1,465) na na na (1,465) na na
Adjusted operating income before income taxes na na na na na na $(6,608) na na na $(6,608) na na
Reconciliation from C&O Income Before Income Taxes to C&O Adjusted Operating Income Before Income Taxes
Income before income taxes $(36,046) $(7,700) $(10,206) $(14,514) $(23,290) $(18,467) $(21,367) $(11,161) -109.4% $(53,952) $(63,124) $(9,172) -17.0%
Less: Realized investment gains/(losses) (10,030) 1,742 642 2,650 1,766 701 1,410 nm nm (7,645) 3,876 nm nm
Less: MTM investment adjustments (6,379) 2,259 1,165 960 (793) (170) (640) nm nm (2,956) (1,603) nm nm
Less: e-TeleQuote transaction-related costs — — — — — (2,109) (9,610) nm nm — (11,719) nm nm
Less: Equity comp for awards exchanged during acquistion — — — — — — 1,004 nm nm — 1,004 nm nm
Adjusted operating income before income taxes $(19,637) $(11,702) $(12,013) $(18,124) $(24,263) $(16,888) $(13,531) $(1,518) -12.6% $(43,351) $(54,682) $(11,331) -26.1%

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>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 Q4<br><br><br>2020 Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Change %<br><br><br>Change YTD<br><br><br>2020 YTD<br><br><br>2021 Change %<br><br><br>Change
Term Life Insurance Income Before Income Taxes
Revenues:
Direct Premiums $ 696,564 $ 711,188 $ 730,273 $ 745,559 $ 756,514 $ 774,500 $ 779,490 6.7 % $ 2,138,024 $ 2,310,504 8.1 %
Premiums ceded to IPO coinsurers (1) (260,076 ) (257,529 ) (254,938 ) (253,039 ) (249,944 ) (246,874 ) (241,439 ) 5.3 % (772,543 ) (738,257 ) 4.4 %
Adjusted direct premiums (2) 436,488 453,659 475,335 492,520 506,570 527,626 538,051 13.2 % 1,365,482 1,572,247 15.1 %
Other ceded premiums (3) (125,156 ) (143,390 ) (137,066 ) (142,728 ) (144,606 ) (165,154 ) (158,397 ) ) -15.6 % (405,612 ) (468,156 ) ) -15.4 %
Net premiums 311,332 310,269 338,269 349,792 361,964 362,472 379,654 12.2 % 959,870 1,104,090 15.0 %
Allocated net investment income 6,246 6,538 6,813 7,432 8,253 8,751 9,320 36.8 % 19,598 26,324 34.3 %
Other, net 10,168 11,426 12,717 11,768 11,810 12,315 12,476 ) -1.9 % 34,311 36,601 6.7 %
Revenues 327,747 328,233 357,799 368,992 382,028 383,537 401,450 12.2 % 1,013,779 1,167,016 15.1 %
Benefits and expenses:
Benefits and claims 128,563 135,409 156,209 173,767 178,963 162,488 179,696 15.0 % 420,182 521,148 24.0 %
Amortization of DAC 65,840 52,730 45,529 52,109 62,584 52,235 59,287 30.2 % 164,099 174,106 6.1 %
Insurance commissions 3,286 2,884 5,946 5,477 4,869 4,785 4,345 ) -26.9 % 12,115 13,999 15.6 %
Insurance expenses 47,165 42,306 44,800 48,199 47,375 47,252 50,534 12.8 % 134,272 145,160 8.1 %
Benefits and expenses 244,855 233,330 252,483 279,551 293,792 266,760 293,862 16.4 % 730,668 854,414 16.9 %
Income before income taxes $ 82,892 $ 94,903 $ 105,316 $ 89,440 $ 88,236 $ 116,778 $ 107,589 2.2 % $ 283,111 $ 312,602 10.4 %
Total Term Life Insurance - Financial Analysis
Post-IPO direct premiums (4) $ 336,921 $ 352,353 $ 372,852 $ 388,303 $ 401,106 $ 420,865 $ 431,022 15.6 % $ 1,062,125 $ 1,252,993 18.0 %
Pre-IPO direct premiums (5) 359,643 358,835 357,421 357,256 355,408 353,635 348,468 ) -2.5 % 1,075,899 1,057,511 ) -1.7 %
Total direct premiums $ 696,564 $ 711,188 $ 730,273 $ 745,559 $ 756,514 $ 774,500 $ 779,490 6.7 % $ 2,138,024 $ 2,310,504 8.1 %
Premiums ceded to IPO coinsurers $ 260,076 $ 257,529 $ 254,938 $ 253,039 $ 249,944 $ 246,874 $ 241,439 ) -5.3 % $ 772,543 $ 738,257 ) -4.4 %
% of Pre-IPO direct premiums 72.3 % 71.8 % 71.3 % 70.8 % 70.3 % 69.8 % 69.3 % nm nm 71.8 % 69.8 % nm nm
Benefits and claims, net (6) $ 253,719 $ 278,799 $ 293,275 $ 316,495 $ 323,569 $ 327,642 $ 338,093 15.3 % $ 825,793 $ 989,304 19.8 %
% of adjusted direct premiums 58.1 % 61.5 % 61.7 % 64.3 % 63.9 % 62.1 % 62.8 % nm nm 60.5 % 62.9 % nm nm
DAC amortization & insurance commissions $ 69,126 $ 55,614 $ 51,474 $ 57,585 $ 67,454 $ 57,020 $ 63,632 23.6 % $ 176,214 $ 188,106 6.7 %
% of adjusted direct premiums 15.8 % 12.3 % 10.8 % 11.7 % 13.3 % 10.8 % 11.8 % nm nm 12.9 % 12.0 % nm nm
Insurance expenses, net (7) $ 36,997 $ 30,881 $ 32,083 $ 36,431 $ 35,565 $ 34,937 $ 38,057 18.6 % $ 99,961 $ 108,559 8.6 %
% of adjusted direct premiums 8.5 % 6.8 % 6.7 % 7.4 % 7.0 % 6.6 % 7.1 % nm nm 7.3 % 6.9 % nm nm
Total Term Life income before income taxes $ 82,892 $ 94,903 $ 105,316 $ 89,440 $ 88,236 $ 116,778 $ 107,589 2.2 % $ 283,111 $ 312,602 10.4 %
Term Life operating margin (8) 19.0 % 20.9 % 22.2 % 18.2 % 17.4 % 22.1 % 20.0 % nm nm 20.7 % 19.9 % nm nm

All values are in US Dollars.

(1) Premiums ceded to IPO coinsurers - premiums ceded to IPO coinsurers under the IPO coinsurance transactions excluding any reimbursements from the IPO coinsurers on previously existing reinsurance agreements.
(2) Adjusted direct premiums - direct premiums net of premiums ceded to IPO coinsurers.
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(3) Other ceded premiums - premiums ceded to non-IPO coinsurers net of any applicable reimbursements from the IPO coinsurers.
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(4) Post-IPO direct premiums - direct premiums not subject to the 2010 IPO coinsurance transactions.
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(5) Pre-IPO direct premiums - direct premiums subject to the 2010 IPO coinsurance transactions.
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(6) Benefits and claims, net - benefits & claims net of other ceded premiums which are largely YRT.
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(7) Insurance expenses, net - insurance expenses net of other, net revenues.
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(8) Term Life operating margin - Term Life operating income before income taxes as a percentage of adjusted direct premiums.
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9 of 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>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 Q4<br><br><br>2020 Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 /#<br>Change %<br><br><br>Change YTD<br><br><br>2020 YTD<br><br><br>2021 /#<br>Change %<br><br><br>Change
Key Statistics
Life-insurance licensed sales force, beginning of period 130,522 130,095 134,157 136,306 134,907 132,030 132,041 ) -1.6 % 130,522 134,907 3.4 %
10,599 12,250 13,138 12,119 10,833 10,112 9,381 ) -28.6 % 35,987 30,326 ) -15.7 %
(11,026 ) (8,188 ) (10,989 ) (13,518 ) (13,710 ) (10,101 ) (11,399 ) ) -3.7 % (30,203 ) (35,210 ) ) -16.6 %
Life-insurance licensed sales force, end of period 130,095 134,157 136,306 134,907 132,030 132,041 130,023 ) -4.6 % 136,306 130,023 ) -4.6 %
Estimated annualized issued term life premium (mills) (1):
$ 61.5 $ 77.7 $ 86.0 $ 78.4 $ 74.5 $ 82.6 $ 70.7 ) -17.8 % $ 225.2 $ 227.8 1.2 %
15.0 17.8 17.9 18.1 18.0 20.3 19.5 9.1 % 50.7 57.9 14.1 %
Total estimated annualized issued term life premium $ 76.5 $ 95.5 $ 103.9 $ 96.5 $ 92.5 $ 103.0 $ 90.2 ) -13.1 % $ 276.0 $ 285.7 3.5 %
Issued term life policies 71,318 94,044 100,199 87,307 82,667 90,071 75,914 ) -24.2 % 265,561 248,652 ) -6.4 %
Estimated average annualized issued term life premium per policy (1)(2) $ 863 $ 826 $ 858 $ 898 $ 901 $ 917 $ 931 8.5 % $ 848 $ 916 8.0 %
Term life face amount in-force, beginning of period (mills) $ 808,262 $ 804,512 $ 821,998 $ 840,227 $ 858,818 $ 869,643 $ 886,519 7.8 % $ 808,262 $ 858,818 6.3 %
23,221 27,754 30,104 28,357 26,643 29,981 26,219 ) -12.9 % 81,079 82,843 2.2 %
(18,294 ) (14,315 ) (13,733 ) (14,506 ) (17,240 ) (14,706 ) (16,241 ) ) -18.3 % (46,343 ) (48,187 ) ) -4.0 %
(8,676 ) 4,046 1,859 4,740 1,422 1,602 (2,480 ) ) nm (2,772 ) 544 nm
Term life face amount in-force, end of period $ 804,512 $ 821,998 $ 840,227 $ 858,818 $ 869,643 $ 886,519 $ 894,018 6.4 % $ 840,227 $ 894,018 6.4 %

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>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 Q4<br><br><br>2020 Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Change %<br><br><br>Change YTD<br><br><br>2020 YTD<br><br><br>2021 Change %<br><br><br>Change
Investment & Savings Products Income Before Income Taxes
Revenues:
Commissions and fees:
Sales-based $ 80,891 $ 62,812 $ 65,600 $ 75,347 $ 98,112 $ 104,716 $ 95,229 45.2 % $ 209,304 $ 298,057 42.4 %
Asset-based 81,395 78,146 86,695 93,669 101,241 108,490 113,558 31.0 % 246,235 323,288 31.3 %
Account-based 20,204 20,478 21,008 21,351 21,120 21,848 21,456 2.1 % 61,690 64,424 4.4 %
Other, net 2,542 2,745 3,034 2,949 2,949 2,958 3,094 2.0 % 8,322 9,001 8.2 %
Revenues 185,033 164,180 176,338 193,316 223,422 238,012 233,337 32.3 % 525,551 694,772 32.2 %
Benefits and expenses:
Amortization of DAC 4,305 100 1,667 982 3,275 1,786 2,580 54.7 % 6,072 7,641 25.8 %
Insurance commissions 3,201 3,106 3,377 3,500 3,572 3,747 3,747 10.9 % 9,684 11,065 14.3 %
Sales commissions:
Sales-based 56,561 44,834 46,821 52,931 68,594 73,629 67,745 44.7 % 148,217 209,969 41.7 %
Asset-based 36,323 35,673 39,349 43,227 46,866 50,488 53,233 35.3 % 111,345 150,587 35.2 %
Other operating expenses 36,942 33,608 33,751 35,963 37,752 37,207 36,664 8.6 % 104,302 111,623 7.0 %
Benefits and expenses 137,332 117,321 124,966 136,603 160,060 166,858 163,968 31.2 % 379,619 490,886 29.3 %
Income before income taxes $ 47,700 $ 46,859 $ 51,372 $ 56,713 $ 63,363 $ 71,154 $ 69,369 35.0 % $ 145,931 $ 203,886 39.7 %
Financial Analysis
Fees paid based on client asset values (1) $ 5,990 $ 5,712 $ 6,284 $ 6,772 $ 6,964 $ 7,535 $ 7,891 25.6 % $ 17,986 $ 22,390 24.5 %
Fees paid based on fee-generating positions (2) 10,248 9,094 8,747 9,547 10,451 10,021 9,128 4.3 % 28,090 29,600 5.4 %
Other operating expenses 20,704 18,803 18,719 19,644 20,337 19,652 19,645 4.9 % 58,226 59,634 2.4 %
Total other operating expenses $ 36,942 $ 33,608 $ 33,751 $ 35,963 $ 37,752 $ 37,207 $ 36,664 8.6 % $ 104,302 $ 111,623 7.0 %
Sales-based net revenue as % of revenue-generating sales (3)
U.S. 1.34 % 1.33 % 1.27 % 1.31 % 1.29 % 1.28 % 1.25 % nm nm 1.31 % 1.27 % nm nm
Canada 1.06 % 0.87 % 0.93 % 0.95 % 1.05 % 0.96 % 0.92 % nm nm 0.97 % 0.98 % nm nm
Total 1.30 % 1.27 % 1.23 % 1.26 % 1.25 % 1.23 % 1.20 % nm nm 1.27 % 1.23 % nm nm
Asset-based net revenue as % of average asset values (4)
U.S. 0.038 % 0.037 % 0.038 % 0.038 % 0.039 % 0.039 % 0.039 % nm nm 0.113 % 0.117 % nm nm
Canada 0.098 % 0.133 % 0.119 % 0.124 % 0.103 % 0.112 % 0.106 % nm nm 0.349 % 0.321 % nm nm
Total 0.047 % 0.052 % 0.050 % 0.052 % 0.049 % 0.050 % 0.050 % nm nm 0.150 % 0.149 % nm nm
Account-based net revenue per average fee generating position (5)(6) $ 3.70 $ 4.19 $ 4.45 $ 4.23 $ 3.77 $ 4.08 $ 4.17 nm nm $ 12.35 $ 12.03 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.
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(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>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 Q4<br><br><br>2020 Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 /#<br>Change %<br><br><br>Change YTD<br><br><br>2020 YTD<br><br><br>2021 /#<br>Change %<br><br><br>Change
Key Statistics
Product sales (mills)
$ 921.0 $ 758.4 $ 874.1 $ 945.5 $ 1,261.9 $ 1,336.1 $ 1,247.8 42.8 % $ 2,553.5 $ 3,845.8 50.6 %
280.9 165.2 189.6 256.0 424.0 357.0 314.8 66.0 % 635.8 1,095.8 72.4 %
72.2 48.4 47.2 50.6 55.5 62.8 51.9 10.0 % 167.8 170.1 1.4 %
600.6 440.5 421.7 529.3 627.1 767.6 668.7 58.5 % 1,462.8 2,063.3 41.1 %
Total sales-based revenue generating product sales 1,874.7 1,412.5 1,532.6 1,781.3 2,368.4 2,523.4 2,283.1 49.0 % 4,819.8 7,175.0 48.9 %
246.2 200.1 223.0 230.7 330.1 381.8 387.5 73.7 % 669.3 1,099.3 64.2 %
124.8 73.9 85.3 57.3 154.9 135.0 119.8 40.4 % 284.0 409.8 44.3 %
Total product sales $ 2,245.7 $ 1,686.5 $ 1,841.0 $ 2,069.4 $ 2,853.5 $ 3,040.2 $ 2,790.4 51.6 % $ 5,773.1 $ 8,684.1 50.4 %
$ 280.9 $ 165.2 $ 189.6 $ 256.0 $ 424.0 $ 357.0 $ 314.8 66.0 % $ 635.8 $ 1,095.8 72.4 %
124.8 73.9 85.3 57.3 154.9 135.0 119.8 40.4 % 284.0 409.8 44.3 %
Total Canada product sales 405.7 239.2 274.9 313.3 579.0 492.0 434.6 58.1 % 919.8 1,505.6 63.7 %
Total U.S. product sales 1,840.0 1,447.3 1,566.1 1,756.1 2,274.5 2,548.2 2,355.8 50.4 % 4,853.4 7,178.5 47.9 %
Total product sales $ 2,245.7 $ 1,686.5 $ 1,841.0 $ 2,069.4 $ 2,853.5 $ 3,040.2 $ 2,790.4 51.6 % $ 5,773.1 $ 8,684.1 50.4 %
Client asset values, beginning of period (mills) $ 70,537 $ 59,036 $ 68,224 $ 72,606 $ 81,533 $ 85,888 $ 91,735 34.5 % $ 70,537 $ 81,533 15.6 %
2,246 1,686 1,841 2,069 2,853 3,040 2,790 51.6 % 5,773 8,684 50.4 %
(1,703 ) (1,074 ) (1,333 ) (1,427 ) (1,759 ) (1,826 ) (1,756 ) ) -31.7 % (4,110 ) (5,341 ) ) -29.9 %
Net flows 543 613 508 642 1,095 1,214 1,034 103.8 % 1,663 3,343 nm
(978 ) 404 205 539 172 200 (323 ) ) nm (369 ) 49 nm
(11,065 ) 8,171 3,669 7,745 3,088 4,433 (681 ) ) -118.6 % 776 6,840 nm
Client asset values, end of period $ 59,036 $ 68,224 $ 72,606 $ 81,533 $ 85,888 $ 91,735 $ 91,765 26.4 % $ 72,606 $ 91,765 26.4 %
3.1 % 4.2 % 3.0 % 3.5 % 5.4 % 5.7 % 4.5 % % nm 3.1 % 5.5 % % nm
Average client asset values (mills)
$ 32,693 $ 31,586 $ 35,204 $ 37,562 $ 41,161 $ 44,398 $ 46,113 31.0 % $ 33,161 $ 43,890 32.4 %
7,950 7,573 8,525 9,186 10,268 11,256 11,667 36.9 % 8,016 11,064 38.0 %
3,905 3,871 4,325 4,703 5,295 5,915 6,362 47.1 % 4,034 5,857 45.2 %
2,389 2,427 2,446 2,469 2,495 2,541 2,585 5.7 % 2,421 2,540 4.9 %
17,292 16,890 18,551 19,634 21,291 22,554 23,193 25.0 % 17,577 22,346 27.1 %
2,366 2,291 2,461 2,536 2,622 2,713 2,732 11.0 % 2,373 2,689 13.3 %
Total $ 66,595 $ 64,638 $ 71,512 $ 76,090 $ 83,131 $ 89,378 $ 92,652 29.6 % $ 67,582 $ 88,387 30.8 %
$ 7,950 $ 7,573 $ 8,525 $ 9,186 $ 10,268 $ 11,256 $ 11,667 36.9 % $ 8,016 $ 11,064 38.0 %
2,366 2,291 2,461 2,536 2,622 2,713 2,732 11.0 % 2,373 2,689 13.3 %
Total Canada average client assets 10,316 9,864 10,986 11,722 12,890 13,969 14,399 31.1 % 10,389 13,753 32.4 %
Total U.S. average client assets 56,279 54,775 60,526 64,368 70,241 75,409 78,252 29.3 % 57,193 74,634 30.5 %
Total average client assets $ 66,595 $ 64,638 $ 71,512 $ 76,090 $ 83,131 $ 89,378 $ 92,652 29.6 % $ 67,582 $ 88,387 30.8 %
Average number of fee-generating positions (thous) (3)
2,031 2,048 2,072 2,091 2,115 2,159 2,192 5.8 % 2,050 2,155 5.1 %
658 671 685 697 714 741 762 11.2 % 672 739 10.0 %
Total 2,689 2,718 2,757 2,788 2,830 2,899 2,954 7.1 % 2,721 2,894 6.3 %

All values are in US Dollars.

(1) Asset value outflows - include (a) redemptions of assets, (b) sales charges on the inflow sales figures, and (c) the net flow of money market funds sold and redeemed on the company's recordkeeping platform.  The redemptions of assets must be estimated for approximately 4% of account values as these figures are not readily available.  Actual redemptions as a percentage of account values for similar known account values are used to estimate the unknown redemption values.
(2) Change in market value, net - market value fluctuations net of fees and expenses.
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(3) Fee generating positions - mutual fund positions for which we receive recordkeeping fees. An individual client account may include multiple mutual fund positions. We may also receive fees earned for custodial services that we provide to clients with retirement plan accounts that hold positions in these mutual funds.
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12 of 16

Senior Health - Financial Results, Financial Analysis Key Statistics PRIMERICA, INC.<br><br><br>Financial Supplement
(Dollars in thousands) Q1<br><br><br>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 Q4<br><br><br>2020 Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021
--- --- --- --- --- --- --- --- ---
Senior Health Income Before Income Taxes
Revenues:
Commissions and fees (1) $21,558
Other, net (2) 1,378
Revenues 22,937
Benefits and expenses:
Contract acquisition costs (3) 23,524
Adjusted other operating expenses 7,485
Adjusted operating benefits and expenses 31,009
Adjusted operating income before income taxes $(8,072)
Non-controlling interest before income taxes (1,465)
Adjusted operating income before income taxes attributable to Primerica, Inc. $(6,608)
Senior Health EBITDA
Adjusted operating income before income taxes including NCI $(8,072)
Less:  Amortization of intangibles (2,900)
Less:  Depreciation (244)
Adjusted EBITDA (Including non-controlling interest) (4) $(4,928)
Financial Analysis and Key Statistics
Senior Health submitted policies (5) 20,867
Senior Health approved policies (6) 18,276
Primerica  representatives Senior Health certified 17,588
Senior Health submitted policies sourced by Primerica representatives 319
LTV per approved policy (7) $1,180
CAC per approved policy (7) $1,287
LTV / CAC multiple 0.9 x
(1) Commission revenue recognized based on the estimated Lifetime value (LTV) to be collected over the estimated life of an approved policy for the relevant period based on multiple factors, including but not limited to contracted commission rates, carrier mix, expected policy turnover, historical chargeback activity and applied constraints.  Adjustments to revenue outside of LTV for approved policies from prior periods are recognized when our cash collections are different from the estimated constrained LTV’s which we refer to as tail revenue.
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(2) Primarily reflects marketing development revenues, which are non-commission revenues received from carriers to support marketing efforts and lead acquisition
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(3) Contract acquisition costs (CAC) - Includes direct marketing costs incurred to acquire leads through internal and external sources, including commissions paid to Primerica representatives, as well as ETQ agent compensation, training and licensing costs.
--- ---
(4) Adjusted EBITDA - Earnings before interest, taxes, depreciation, amortization and certain adjustments for non-cash or non-recurring expenses including purchase accounting adjustments
--- ---
(5) Senior Health submitted policies - represents the number of completed applications that, with respect to each such application, the applicant has authorized us to submit to the health insurance carrier. The applicant may need to take additional actions, including providing subsequent information before the application is reviewed by the health insurance carrier.
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(6) Senior Health approved policies - represent an estimate of submitted policies approved by health insurance carriers during the indicated period. Not all approved policies will go in force
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(7) In whole dollars.
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13 of 16

Corporate Other Distributed Products - Financial Results PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q3 YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br><br><br>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 Q4<br><br><br>2020 Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 $<br><br><br>Change %<br><br><br>Change YTD<br><br><br>2020 YTD<br><br><br>2021 $<br><br><br>Change %<br><br><br>Change
Corporate & Other Distributed Products Income Before Income Taxes
Revenues:
Direct premiums $6,074 $5,900 $6,333 $5,259 $5,713 $5,800 $5,788 $(545) -8.6% $18,307 $17,300 $(1,006) -5.5%
Ceded premiums (1,593) (1,631) (1,712) (1,909) (1,423) (1,822) (1,459) 253 14.8% (4,935) (4,704) 232 4.7%
Net premiums 4,480 4,270 4,621 3,350 4,290 3,978 4,328 (292) -6.3% 13,371 12,596 (775) -5.8%
Allocated net investment income 15,553 13,913 14,975 14,339 12,592 11,954 11,321 (3,654) -24.4% 44,440 35,867 (8,574) -19.3%
Commissions and fees:
Prepaid Legal Services 3,829 4,557 4,942 5,104 4,783 5,182 6,712 1,769 35.8% 13,328 16,676 3,348 25.1%
Auto and Homeowners Insurance 1,672 2,263 1,985 2,194 1,787 2,101 2,436 452 22.8% 5,920 6,324 405 6.8%
Mortgage loans 264 1,301 3,011 4,146 4,960 6,061 6,719 3,708 123.2% 4,576 17,740 13,164 nm
Other sales commissions 1,813 2,231 2,061 2,301 2,041 2,291 2,129 67 3.3% 6,106 6,461 355 5.8%
Other, net 954 865 922 977 836 1,040 1,101 179 19.4% 2,742 2,977 235 8.6%
Adjusted operating revenues 28,566 29,400 32,516 32,412 31,288 32,607 34,746 2,229 6.9% 90,483 98,641 8,158 9.0%
Benefits and expenses:
Benefits and claims 6,249 4,236 3,957 7,178 4,826 5,859 3,728 (229) -5.8% 14,443 14,413 (30) -0.2%
Amortization of DAC 166 346 295 251 246 264 347 53 17.8% 807 857 50 6.2%
Insurance commissions 357 343 371 286 299 306 320 (51) -13.6% 1,072 925 (146) -13.6%
Insurance expenses 1,544 1,447 1,309 1,347 1,391 1,327 1,367 58 4.5% 4,300 4,086 (214) -5.0%
Sales commissions 3,723 4,985 5,779 6,430 6,434 7,185 8,290 2,510 43.4% 14,487 21,908 7,421 51.2%
Interest expense 7,192 7,200 7,221 7,225 7,145 7,141 7,529 307 4.3% 21,614 21,814 201 0.9%
Adjusted other operating expenses 28,972 22,544 25,597 27,818 35,211 27,413 26,695 1,098 4.3% 77,112 89,319 12,207 15.8%
Adjusted benefits and expenses 48,203 41,102 44,529 50,535 55,551 49,495 48,277 3,748 8.4% 133,834 153,323 19,489 14.6%
Adjusted operating income before income taxes $(19,637) $(11,702) $(12,013) $(18,124) $(24,263) $(16,888) $(13,531) $(1,518) -12.6% $(43,351) $(54,682) $(11,331) -26.1%

14 of 16

Investment Portfolio - Summary of Holdings PRIMERICA, INC.<br><br><br>Financial Supplement
As of or for the period ended September 30, 2021
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
% 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 $ 365,615 $ 365,615 $ - 12.1 % 12.5 %
Fixed Income:
Treasury 21,848 21,344 504 0.7 % 0.7 % 1.78 % AAA
Government 245,569 235,679 9,891 8.1 % 8.1 % 2.94 % AA-
Tax-Exempt Municipal 44,544 42,267 2,277 1.5 % 1.4 % 2.74 % AA
Public Corporate 1,514,525 1,438,766 75,758 50.1 % 49.3 % 3.42 % BBB+
Mortgage Backed 333,703 327,487 6,215 11.0 % 11.2 % 2.50 % AAA
Asset Backed 107,390 106,258 1,133 3.6 % 3.6 % 2.63 % A+
CMBS 151,047 146,278 4,769 5.0 % 5.0 % 2.99 % AA-
Private Placements 197,283 190,573 6,710 6.5 % 6.5 % 4.17 % BBB
Redeemable Preferred 5,848 5,447 400 0.2 % 0.2 % 5.47 % BBB
Total Fixed Income 2,621,755 2,514,098 107,657 86.7 % 86.2 % 3.23 % A
Equities and Other:
Perpetual Preferred 13,411 13,411 - 0.4 % 0.5 %
Common Stock 17,860 17,860 0 0.6 % 0.6 %
Mutual Fund 5,960 5,960 - 0.2 % 0.2 %
Derivatives 9 9 - 0.0 % 0.0 %
Other - - - 0.0 % 0.0 %
Total Equities 37,240 37,240 0 1.2 % 1.3 %
Total Invested Assets $ 3,024,610 $ 2,916,953 $ 107,657 100.0 % 100.0 %
Public Corporate Portfolio by Sector
Consumer Non Cyclical $ 182,750 $ 174,408 $ 8,342 12.1 % 12.1 %
Insurance 176,358 168,072 8,286 11.6 % 11.7 %
Energy 161,004 150,923 10,081 10.6 % 10.5 %
Reits 141,964 134,305 7,659 9.4 % 9.3 %
Consumer Cyclical 119,463 114,141 5,322 7.9 % 7.9 %
Technology 117,890 111,430 6,460 7.8 % 7.7 %
Banking 114,950 109,592 5,358 7.6 % 7.6 %
Capital Goods 87,873 84,915 2,958 5.8 % 5.9 %
Electric 85,042 80,900 4,142 5.6 % 5.6 %
Basic Industry 77,498 73,429 4,068 5.1 % 5.1 %
Transportation 64,473 61,746 2,727 4.3 % 4.3 %
Communications 57,291 53,135 4,156 3.8 % 3.7 %
Brokerage 55,449 51,800 3,649 3.7 % 3.6 %
Finance Companies 42,229 40,666 1,563 2.8 % 2.8 %
Financial Other 10,732 10,350 382 0.7 % 0.7 %
Industrial Other 7,962 7,634 328 0.5 % 0.5 %
Utility Other 5,538 5,386 152 0.4 % 0.4 %
Natural Gas 3,804 3,609 195 0.3 % 0.3 %
Owned No Guarantee 2,256 2,325 (69 ) 0.1 % 0.2 %
Total Corporate portfolio $ 1,514,525 $ 1,438,766 $ 75,758 100.0 % 100.0 %
Fixed-Maturity Securities - Effective Maturity
Effective maturity
< 1 Yr. $ 256,754 $ 252,062 $ 4,692 9.8 % 10.0 % 3.18 %
1-2 Yrs. 257,291 248,255 9,036 9.8 % 9.9 % 3.55 %
2-5 Yrs. 914,879 867,471 47,408 34.9 % 34.5 % 3.36 %
5-10 Yrs. 907,086 873,601 33,485 34.6 % 34.7 % 3.01 %
> 10 Yrs. 285,745 272,708 13,037 10.9 % 10.8 % 3.34 %
Total Fixed Income $ 2,621,755 $ 2,514,098 $ 107,657 100.0 % 100.0 % 3.23 %
Duration
Fixed Income portfolio duration 4.8 years

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

15 of 16

Investment Portfolio - Quality Ratings As of September 30, 2021 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 $ 453,451 18.0 %
AA 277,258 11.0 %
A 593,750 23.6 %
BBB 1,078,570 42.9 %
Below Investment Grade 102,746 4.1 %
NA 8,322 0.3 %
Total Fixed Income $ 2,514,098 100.0 %
Amortized  Cost % of Total Amortized  Cost % of Total
Public Corporate asset class: Private Placement asset class:
Rating Rating
AAA $ 11,852 0.8 % AAA $ - —
AA 71,037 4.9 % AA 5,479 2.9 %
A 362,515 25.2 % A 24,906 13.1 %
BBB 907,734 63.1 % BBB 147,312 77.3 %
Below Investment Grade 84,678 5.9 % Below Investment Grade 12,876 6.8 %
NA 950 0.1 % NA - —
Total Corporate $ 1,438,766 100.0 % Total Private $ 190,573 100.0 %
CMBS asset class: Mortgage-Backed asset class:
Rating Rating
AAA $ 76,330 52.2 % AAA $ 301,290 92.0 %
AA 2,933 2.0 % AA 25,843 7.9 %
A 66,947 45.8 % A 234 0.1 %
BBB - — BBB - —
Below Investment Grade 68 0.0 % Below Investment Grade 87 0.0 %
NA - — NA 33 0.0 %
Total CMBS $ 146,278 100.0 % Total Mortgage-Backed $ 327,487 100.0 %
Asset-Backed asset class: Treasury & Government asset classes:
Rating Rating
AAA $ 16,753 15.8 % AAA $ 45,520 17.7 %
AA 6,280 5.9 % AA 133,657 52.0 %
A 71,850 67.6 % A 62,189 24.2 %
BBB 1,895 1.8 % BBB 12,758 5.0 %
Below Investment Grade 2,139 2.0 % Below Investment Grade 2,898 1.1 %
NA 7,340 6.9 % NA 0 0.0 %
Total Asset-Backed $ 106,258 100.0 % Total Treasury & Government $ 257,022 100.0 %
NAIC Designations
1 $ 1,149,949 48.2 %
2 1,009,401 46.8 %
3 98,718 4.2 %
4 7,591 0.8 %
5 685 —
6 4,244 0.0 %
U.S. Insurer Fixed Income (2) 2,270,589 100.0 %
Other (3) 280,749
Cash and cash equivalents 365,615
Total Invested Assets $ 2,916,953
(1) Ratings method for split ratings: If by 2 NRSROs, use lower of the two; if by 3 or more NRSROs, use second lowest.
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(2) NAIC ratings for our U.S. insurance companies' fixed income portfolios.
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(3) Other consists of assets held by our non-life companies, Canadian insurance company, and unrated equities.
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Note:  Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

16 of 16

Investment Portfolio - Supplemental Data and Trends PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q3
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br><br><br>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 Q4<br><br><br>2020 Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 Change %<br><br><br>Change
Net Investment Income by Source
Fixed-maturity securities (available-for-sale) $ 20,784 $ 20,213 $ 20,882 $ 20,925 $ 20,020 $ 20,155 $ 19,860 ) -4.9%
Fixed-maturity securities (held-to-maturity) 13,472 14,074 14,704 15,223 15,146 15,495 15,741 7.1%
Equity Securities 451 461 433 406 391 411 413 ) -4.6%
Deposit asset underlying 10% reinsurance treaty 1,830 1,394 1,694 1,330 1,368 1,238 987 ) -41.7%
Deposit asset - Mark to Market (6,379 ) 2,259 1,165 960 (793 ) (170 ) (640 ) ) -154.9%
Policy loans and other invested assets 189 541 242 272 231 98 289 19.4%
Cash & cash equivalents 843 143 114 103 119 156 96 ) -15.8%
Total investment income 31,190 39,085 39,234 39,219 36,483 37,383 36,746 ) -6.3%
Investment expenses 2,298 2,300 1,577 1,265 1,284 1,353 1,004 ) -36.3%
Interest Expense on Surplus Note 13,472 14,074 14,704 15,223 15,146 15,495 15,741 7.1%
Net investment income $ 15,420 $ 22,710 $ 22,953 $ 22,731 $ 20,052 $ 20,535 $ 20,001 ) -12.9%
Fixed income book yield, end of period 3.55 % 3.54 % 3.45 % 3.44 % 3.30 % 3.31 %
New money yield 3.25 % 3.14 % 2.44 % 2.67 % 1.72 % 2.68 %
YOY Q3
Q1<br><br><br>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 Q4<br><br><br>2020 Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021 % Pt<br>Change
Fixed Income Portfolio Quality Ratings
Rating
AAA 22.9 % 21.5 % 19.6 % 18.7 % 16.6 % 16.5 % 18.0 % %
AA 12.1 % 11.6 % 12.8 % 12.7 % 12.2 % 11.6 % 11.0 % %
A 22.9 % 22.3 % 21.8 % 22.3 % 23.0 % 22.1 % 23.6 % %
BBB 38.9 % 40.4 % 42.0 % 42.3 % 44.0 % 45.5 % 42.9 % %
Below Investment Grade 3.1 % 4.0 % 3.8 % 3.9 % 4.1 % 4.2 % 4.1 % %
NA 0.1 % 0.1 % 0.1 % 0.1 % 0.1 % 0.1 % 0.3 % %
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, 2021 As of September 30, 2021 As of September 30, 2021
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 $ 15,769 $ 15,306 AAA Canada $ 84,505 $ 78,714 AAA $ 733 $ 733
2 TC Energy Corp 12,925 12,597 BBB+ Australia 32,044 30,483 AA 8,881 8,642
3 ConocoPhillips 12,449 11,057 A- United Kingdom 27,120 25,942 A 8,641 8,374
4 Enbridge Inc 12,009 11,650 BBB+ Cayman Islands 13,340 13,219 BBB 11,749 11,317
5 Province of Alberta Canada 11,766 11,377 A France 12,518 12,136 Below Investment Grade 2,941 2,898
6 Province of Quebec Canada 11,251 10,330 AA- Japan 10,770 10,281 NA — —
7 Western & Southern Mutual Holdings 10,417 9,641 AA- Mexico 10,453 10,152 Total $ 32,944 $ 31,964
8 Province of Ontario Canada 10,389 10,024 A+ Ireland 10,165 10,497
9 Capital One Financial Corp 10,280 9,874 BBB Bermuda 9,387 8,900
10 Fairfax Financial Holdings Ltd 10,122 9,880 BBB- Germany 8,926 8,796 Non-Government Investments (1)
11 Wells Fargo & Co 9,459 9,143 A- Netherlands 7,086 5,949
12 Entergy Corp 9,285 9,069 BBB+ Brazil 4,551 4,488 AAA $ 2,999 $ 2,999
13 AbbVie Inc 8,825 8,683 BBB+ Israel 3,960 3,552 AA 6,270 6,223
14 Blackstone Inc 8,420 8,274 A+ Luxembourg 3,655 3,500 A 58,106 55,484
15 Province of British Columbia Canada 8,223 7,987 AAA Supra-National 3,286 3,213 BBB 160,715 151,510
16 UDR Inc 8,178 8,049 BBB+ Emerging Markets  (2) 14,713 14,394 Below Investment Grade 14,562 14,406
17 Discovery Inc 8,086 6,973 BBB- All Other 19,118 18,370 NA — —
18 CI Financial Corp 8,038 7,804 BBB Total $ 275,598 $ 262,586 Total $ 242,653 $ 230,621
19 Tokyo Century Corp 8,027 7,975 BBB
20 CVS Health Corp 7,994 7,930 BBB
21 Simon Property Group Inc 7,942 7,362 A
22 Truist Financial Corp 7,933 7,498 A-
23 Brookfield Asset Management Inc 7,891 7,238 A-
24 Apple Inc 7,871 7,748 AA+
25 City of Toronto Canada 7,785 7,423 AA
Total $ 241,335 $ 230,894
% of total fixed income portfolio 8.0 % 7.9 %
(1) US$ denominated investments in issuers outside of the United States based on country of risk.
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(2) Emerging markets is as defined by MSCI, Inc. which include Chile, India, Peru, Poland and South Africa.
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Note:  Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

17 of 16

Five-Year Historical Key Statistics PRIMERICA, INC.<br><br><br>Financial Supplement
(Dollars in millions) 2016 2017 2018 2019 2020 Q1<br><br><br>2020 Q2<br><br><br>2020 Q3<br><br><br>2020 Q4<br><br><br>2020 Q1<br><br><br>2021 Q2<br><br><br>2021 Q3<br><br><br>2021
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Recruits 262,732 303,867 290,886 282,207 400,345 84,762 133,123 101,861 80,599 94,633 89,285 91,884
Life-insurance licensed sales force, beginning of period 106,710 116,827 126,121 130,736 130,522 130,522 130,095 134,157 136,306 134,907 132,030 132,041
New life-licensed representatives 44,724 48,535 48,041 44,739 48,106 10,599 12,250 13,138 12,119 10,833 10,112 9,381
Non-renewal and terminated representatives (34,607 ) (39,241 ) (43,426 ) (44,953 ) (43,721 ) (11,026 ) (8,188 ) (10,989 ) (13,518 ) (13,710 ) (10,101 ) (11,399 )
Life-insurance licensed sales force, end of period 116,827 126,121 130,736 130,522 134,907 130,095 134,157 136,306 134,907 132,030 132,041 130,023
Issued term life policies 298,244 312,799 301,589 287,809 352,868 71,318 94,044 100,199 87,307 82,667 90,071 75,914
Issued term life face amount $ 89,869 $ 95,635 $ 95,209 $ 93,994 $ 109,436 $ 23,221 $ 27,754 $ 30,104 $ 28,357 $ 26,643 $ 29,981 $ 26,219
Term life face amount in force, beginning of period $ 693,194 $ 728,385 $ 763,831 $ 781,041 $ 808,262 $ 808,262 $ 804,512 $ 821,998 $ 840,227 $ 858,818 $ 869,643 $ 886,519
Issued term life face amount 89,869 95,635 95,209 93,994 109,436 23,221 27,754 30,104 28,357 26,643 29,981 26,219
Terminated term life face amount (57,238 ) (65,958 ) (70,291 ) (71,519 ) (60,848 ) (18,294 ) (14,315 ) (13,733 ) (14,506 ) (17,240 ) (14,706 ) (16,241 )
Foreign currency impact, net 2,560 5,769 (7,708 ) 4,746 1,968 (8,676 ) 4,046 1,859 4,740 1,422 1,602 (2,480 )
Term life face amount in force, end of period $ 728,385 $ 763,831 $ 781,041 $ 808,262 $ 858,818 $ 804,512 $ 821,998 $ 840,227 $ 858,818 $ 869,643 $ 886,519 $ 894,018
Estimated annualized issued term life premium
Premium from new policies $ 237.9 $ 255.4 $ 250.8 $ 244.8 $ 303.6 $ 61.5 $ 77.7 $ 86.0 $ 78.4 $ 74.5 $ 82.6 $ 70.7
Additions and increases in premium 46.4 49.5 55.2 60.2 68.9 15.0 17.8 17.9 18.1 18.0 20.3 19.5
Total estimated annualized issued term life premium $ 284.3 $ 304.9 $ 306.0 $ 305.0 $ 372.5 $ 76.5 $ 95.5 $ 103.9 $ 96.5 $ 92.5 $ 103.0 $ 90.2
Investment & Savings product sales $ 5,594.3 $ 6,192.2 $ 7,040.1 $ 7,533.2 $ 7,842.5 $ 2,245.7 $ 1,686.5 $ 1,841.0 $ 2,069.4 $ 2,853.5 $ 3,040.2 $ 2,790.4
Investment & Savings average client asset values $ 49,427 $ 56,791 $ 61,842 $ 65,029 $ 69,709 $ 66,595 $ 64,638 $ 71,512 $ 76,090 $ 83,131 $ 89,378 $ 92,652
Closed U.S. Mortgage Volume (brokered) $ — $ — $ — $ 31.1 $ 442.5 $ 12.9 $ 65.8 $ 160.0 $ 203.8 $ 262.3 $ 298.6 $ 337.6

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