Equibles

8-K

Primerica, Inc. (PRI)

8-K 2023-05-02 For: 2023-05-02
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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): May 2, 2023

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Primerica, Inc.

(Exact Name of Registrant as Specified in Its Charter)

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

(770) 381-1000

(Registrant’s telephone number, including area code)

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

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

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

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

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

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

Emerging growth company ☐

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

Item 2.02 Results of Operations and Financial Condition.

On May 2, 2023, Primerica, Inc. (the “Company”) provided a restated financial supplement (the “Restated Supplemental Financial Information”) for the quarter ended December 31, 2022, which adjusts financial information that was included in the Company’s quarterly supplemental financial information furnished on a Form 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 23, 2023. The Restated Supplemental Financial Information reflects the Company’s adoption, as of January 1, 2023, of the provisions of the Financial Accounting Standard Board’s Accounting Standards Update No. 2018-12, “Targeted Improvements to the Accounting for Long-Duration Contracts” and related amendments (“LDTI”). The Company adopted LTDI using the modified retrospective method and restated financial information subsequent to the January 1, 2021 transition date. A copy of the Restated Supplemental Financial Information is furnished with this report as Exhibit 99.1.

The Restated Supplemental Financial Information is unaudited and is being provided by the Company voluntarily to assist investors and other readers of the Company’s financial statements by providing comparable historical financial information that reflects the significant impact LDTI had on the Company’s financial condition and results of operations. The information presented in the Restated Supplemental Financial Information is preliminary and subject to change based on the completion of ongoing internal control and review procedures, as well as the procedures that will be completed as part of the audit of the Company’s financial statements as of and for the year ending December 31, 2023. As such, investors and other readers should not place undue reliance on this information and it should be read in conjunction with the financial information included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and the Company’s other filings with the SEC.

At this time, the Company anticipates that its next audited financial statements will be filed in February 2024 as part of its Annual Report on Form 10-K for the year ending December 31, 2023. It is possible that the information presented in the Restated Supplemental Financial Information may differ, perhaps materially, from information included in the audited financial statements that will be filed by the Company in the future. The Company undertakes no obligation to update or revise the information provided in the Restated Supplemental Financial Information as a result of new information or otherwise, except as required by law.

The information provided pursuant to this Item 2.02, including Exhibit 99.1 in Item 9.01, is “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section, and shall not be incorporated by reference in any filing made by the Company under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), except to the extent expressly set forth by specific reference in any such filings.

Use of Non-GAAP Financial Measures

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company presents certain non-GAAP financial measures. Specifically, the Company presents adjusted direct premiums, other ceded premiums, adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income, adjusted stockholders’ equity and diluted adjusted operating earnings per share. Adjusted direct premiums and other ceded premiums are net of amounts ceded under coinsurance transactions that were executed concurrent with our initial public offering (the “IPO coinsurance transactions”) for all periods presented. We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate within this block of business. Adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income and diluted adjusted

operating earnings per share exclude the impact of investment gains (losses) and fair value mark-to-market (“MTM”) investment adjustments, including credit impairments, for all periods presented. We exclude investment gains (losses), including credit impairments, and MTM investment adjustments in measuring these non-GAAP financial measures to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains (losses) and market pricing variations prior to an invested asset’s maturity or sale that are not directly associated with the Company’s insurance operations. Adjusted operating income before taxes, adjusted net operating income, and diluted adjusted operating earnings per share also exclude the loss on the extinguishment of debt, transaction-related expenses/recoveries associated with the purchase of e-TeleQuote Insurance, Inc. and subsidiaries (collectively, “e-TeleQuote”), adjustments to share-based compensation expense for shares exchanged in the business combination, and non-cash goodwill impairment charges. We exclude the loss on the extinguishment of debt, e-TeleQuote transaction-related expenses/recoveries and non-cash goodwill impairment charges as these are non-recurring items that will cause incomparability between period-over-period results. We exclude adjustments to share-based compensation expense for shares exchanged in the business combination to eliminate period-over-period fluctuations that may obscure comparisons of operating results primarily due to the volatility of changes in the fair value of shares which were acquired for no additional consideration. 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. Adjusted stockholders’ equity also excludes the difference in future policy benefits calculated using the current discount rate and future policy benefits calculated using the locked-in discount rate at contract issuance recognized in accumulated other comprehensive income. We exclude the impact from the difference in the discount rate in measuring adjusted stockholders' equity as such difference is caused by market movements in interest rates that are not permanent and may not align with the cash flows we will ultimately incur when policy benefits are settled.

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 included in the Restated Supplemental Financial Information, which has been posted in the “Investor Relations” section of our website at https://investors.primerica.com.https://investors.primerica.com.

Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1 Restated Supplemental Financial Information for the quarter ended December 31, 2022
104 Cover Page from this Current Report on Form 8-K, formatted in Inline XBRL

SIGNATURES

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

Date: May 2, 2023 PRIMERICA, INC.
/s/ Alison S. Rand
Alison S. Rand
Executive Vice President and Chief Financial Officer

EX-99

Exhibit 99.1

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Supplemental Financial Information

As Adjusted for ASU 2018-12

Fourth Quarter 2022

Effective January 1, 2023, we adopted FASB ASU 2018-12 "Targeted Improvements to the Accounting for Long-Duration Contracts" (or "LDTI"). We have retrospectively restated 2021 and 2022 financial statements in compliance with the new accounting standard, with 2021 full year and 2022 quarterly restated results included herein. The impact of LDTI on our financial statements is significant, as it requires us to make changes to the way we calculate future policy benefit reserves on our term life insurance product and discontinued product lines issued by our New York subsidiary. LDTI also requires changes to the way we amortize deferred acquisition costs for these products as well as Canadian Segregated funds. Restating our financial statements is necessary to present historical periods on a comparable basis with future period results.

Also effective January 1, 2023, we will no longer be allocating a portion of net investment income to the Term Life Insurance segment, and all net investment income will be recorded in the Corporate & Other Distributed Products segment. As such, we have retrospectively restated for comparison purposes the 2021 and 2022 income statements for the Term Life Insurance and Corporate and Other Distributed Product Segments.

In this document, we have also included estimated term life issued policy counts by quarter for 2022 adjusting issued policies to a single life per policy basis to facilitate comparisons going forward.

A summary of significant changes by line item follows:

Term Life Insurance - Removal of Net investment income allocation and changes reflected in Benefits and claims, Future policy benefits remeasurement (gain)/loss and Amortization of DAC
Investment and Savings Products - Amortization of DAC
Senior Health - No change
Corp & Other Distributed Products - Inclusion of Net investment income formerly allocated to Term Life and changes reflected in Benefits and claims, Future policy benefits remeasurement (gain)/loss and Amortization of DAC for discontinued lines written by our New York subsidiary
Consolidated Balance Sheets - Due from Reinsurers, Deferred acquisitions costs, Future policy benefits, Income taxes, Retained Earnings, Accumulated other comprehensive income
Statements of Income - Benefits and claims, Future policy benefits remeasurement (gain)/loss, Amortization of DAC

To facilitate comparison, lines impacted by the change have been highlighted. Note that ratios and totals are also affected, however, these were not highlighted.

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

This document may contain forward-looking statements and information. Additional information and factors that could cause actual results to differ materially from any forward-looking statements or information in this document is available in our Form 10-K for the year ended December 31, 2022.

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

Fourth Quarter 2022

This document is a financial supplement to our fourth quarter 2022 earnings release. It is designed to enable comprehensive analysis of our ongoing business using the same core metrics that our management utilizes in assessing our business and making strategic and operational decisions. Throughout this document we provide financial information that is derived from our U.S. GAAP financial statements and adjusted for three different purposes, as follows:

• Operating adjustments exclude the impact of investment gains/losses, including credit impairments, mark-to-market (MTM) investment adjustments, loss on the extinguishment of debt, transaction-related expenses/recoveries associated with the purchase of e-TeleQuote Insurance, Inc. and subsidiaries (collectively, “e-TeleQuote”), adjustments to share-based compensation expense for shares exchanged in the business combination, and non-cash goodwill impairment charges. We exclude investment gains/losses, including credit impairments, and MTM investment adjustments in measuring adjusted operating revenues to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains and losses and other factors prior to an invested asset's maturity or sale that are not directly associated the Company's insurance operations. We exclude the loss on the extinguishment of debt, e-TeleQuote transaction-related expenses/recoveries, and non-cash goodwill impairment charges in our non-GAAP financial measures as such expenses are non-recurring items that will cause incomparability between period-over-period results. We exclude adjustments to share-based compensation expense for shares exchanged in the business combination to eliminate period-over-period fluctuations that may obscure comparisons of operating results primarily due to the volatility of changes in the fair value of shares which were acquired for no additional consideration. 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. Also, excludes the difference in future policy benefits calculated using the current discount rate and future policy benefits calculated using the locked-in discount rate at contract issuance recognized in accumulated other comprehensive income. We exclude the impact from the difference in the discount rate in measuring adjusted stockholders' equity as it is caused by market movements in interest rates that are not permanent and may not align with the cash flow we will ultimately incur when policy benefits are settled.

• IPO coinsurance transactions adjustments relate to transactions in the first quarter of 2010, where we coinsured between 80% and 90% of our business that was in-force at year-end 2009 to entities then affiliated with Citigroup Inc. that were executed concurrent with our initial public offering (IPO). We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate within this block of business.

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

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

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Condensed Balance Sheets and Reconciliation of Balance Sheet Non-GAAP to GAAP Financial Measures PRIMERICA, INC.<br><br>Financial Supplement
(Dollars in thousands) Dec 31,<br>2021 Mar 31,<br>2022 Jun 30,<br>2022 Sep 30,<br>2022 Dec 31,<br>2022
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Condensed Balance Sheets
Assets:
Investments and cash excluding securities held to maturity $ 3,277,830 $ 3,191,154 $ 3,048,974 $ 2,981,598 $ 3,141,919
Securities held to maturity 1,379,100 1,390,310 1,415,940 1,433,760 1,444,920
Total investments and cash 4,656,930 4,581,464 4,464,914 4,415,358 4,586,839
Due from reinsurers 4,218,704 3,692,660 3,359,054 3,160,111 3,176,397
Deferred policy acquisition costs 2,959,654 3,033,186 3,088,172 3,133,408 3,194,029
Goodwill 179,154 179,154 187,707 127,707 127,707
Other assets 1,367,435 1,253,840 1,217,898 1,206,368 1,227,459
Separate account assets 2,799,992 2,696,891 2,358,987 2,206,608 2,305,717
Total assets $ 16,181,869 $ 15,437,194 $ 14,676,732 $ 14,249,560 $ 14,618,147
Liabilities:
Future policy benefits $ 8,594,476 $ 7,332,290 $ 6,606,150 $ 6,094,187 $ 6,297,911
Other policy liabilities 1,103,642 1,108,047 999,789 1,005,195 1,037,440
Income taxes 15,311 95,302 167,560 217,364 202,462
Other liabilities 669,631 683,865 646,660 659,582 626,773
Debt obligations 607,102 598,303 592,504 592,705 592,905
Surplus note 1,378,585 1,389,811 1,415,457 1,433,293 1,444,469
Payable under securities lending 94,529 93,171 96,603 80,754 100,938
Separate account liabilities 2,799,992 2,696,891 2,358,987 2,206,608 2,305,717
Total liabilities 15,263,269 13,997,680 12,883,710 12,289,687 12,608,615
Redeemable noncontrolling interest $ 7,271 $ 4,616 $ 2,233 $ — $ —
Stockholders’ equity:
Common stock (0.01 par value) (1) 394 388 378 370 368
Paid-in capital 5,224 (0 ) (0 ) (0 ) (0 )
Retained earnings 2,074,111 2,083,693 2,068,690 2,033,368 2,130,935
Treasury stock — — — — —
Accumulated other comprehensive income (loss), net:
63,775 (66,439 ) (175,746 ) (252,913 ) (240,869 )
(1,240,727 ) (594,586 ) (104,894 ) 195,563 131,295
8,553 11,842 2,362 (16,514 ) (12,196 )
Total stockholders’ equity (2) 911,330 1,434,897 1,790,789 1,959,874 2,009,532
Total liabilities and stockholders' equity $ 16,181,869 $ 15,437,194 $ 14,676,732 $ 14,249,560 $ 14,618,147
Reconciliation of Total Stockholders' Equity to Adjusted Stockholders' Equity
Total stockholders' equity $ 911,330 $ 1,434,897 $ 1,790,789 $ 1,959,874 $ 2,009,532
Less: Net unrealized gains (losses) 63,775 (66,439 ) (175,746 ) (252,913 ) (240,869 )
Less: Effect of change in discount rate assumptions on the liability for future policy benefits (1,240,727 ) (594,586 ) (104,894 ) 195,563 131,295
Adjusted stockholders’ equity $ 2,088,281 $ 2,095,922 $ 2,071,430 $ 2,017,224 $ 2,119,107
Adjusted Stockholders' Equity Rollforward
Balance, beginning of period $ 2,088,281 $ 2,095,922 $ 2,071,430 $ 2,017,224
Net Income attributable to Primerica, Inc. 115,039 125,168 76,777 143,956
Shareholder dividends (21,645 ) (21,178 ) (20,571 ) (20,389 )
Retirement of shares and warrants (103,862 ) (127,963 ) (97,515 ) (32,098 )
Net foreign currency translation adjustment 3,289 (9,480 ) (18,876 ) 4,318
Other, net 14,820 8,961 5,979 6,096
Balance, end of period $ 2,095,922 $ 2,071,430 $ 2,017,224 $ 2,119,107
Deferred Policy Acquisition Costs Rollforward
Balance, beginning of period $ 2,959,654 $ 3,033,186 $ 3,088,172 $ 3,133,408
General expenses deferred 9,519 9,321 9,726 9,283
Commission costs deferred 123,739 119,794 119,734 113,479
Amortization of deferred policy acquisition costs (63,223 ) (64,200 ) (65,447 ) (66,236 )
Foreign currency impact and other, net 3,496 (9,930 ) (18,777 ) 4,095
Balance, end of period $ 3,033,186 $ 3,088,172 $ 3,133,408 $ 3,194,029

All values are in US Dollars.

(1) Outstanding common shares exclude restricted stock units.

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

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Financial Results and Other Statistical Data PRIMERICA, INC.<br><br>Financial Supplement
YOY YTD
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(Dollars in thousands, except per-share data) Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 YTD <br>2021 YTD <br>2022 /#Change %<br>Change
Earnings per Share
Basic earnings per share:
Weighted-average common shares and fully vested equity awards 39,221,003 38,385,520 37,438,254 36,973,967 39,529,786 37,996,978 ) -3.9 %
Net income attributable to Primerica, Inc. $ 115,039 $ 125,168 $ 76,777 $ 143,956 $ 465,808 $ 460,940 ) -1.0 %
Less income attributable to unvested participating securities (477 ) (554 ) (362 ) (690 ) (1,913 ) (2,081 ) ) -8.8 %
Net income used in computing basic EPS $ 114,562 $ 124,614 $ 76,415 $ 143,267 $ 463,896 $ 458,859 ) -1.1 %
Basic earnings per share $ 2.92 $ 3.25 $ 2.04 $ 3.87 $ 11.74 $ 12.08 2.9 %
Adjusted net operating income $ 116,954 $ 127,922 $ 138,897 $ 142,040 $ 554,650 $ 525,813 ) -5.2 %
Less operating income attributable to unvested participating securities (484 ) (566 ) (655 ) (681 ) (2,277 ) (2,374 ) ) -4.2 %
Adjusted net operating income used in computing basic operating EPS $ 116,469 $ 127,356 $ 138,243 $ 141,359 $ 552,373 $ 523,439 ) -5.2 %
Basic adjusted operating income per share $ 2.97 $ 3.32 $ 3.69 $ 3.82 $ 13.97 $ 13.78 ) -1.4 %
Diluted earnings per share:
Weighted-average common shares and fully vested equity awards 39,221,003 38,385,520 37,438,254 36,973,967 39,529,786 37,996,978 ) -3.9 %
Dilutive impact of contingently issuable shares 110,941 115,058 102,810 107,245 121,738 109,014 ) -10.5 %
Shares used to calculate diluted EPS 39,331,944 38,500,578 37,541,064 37,081,212 39,651,524 38,105,992 ) -3.9 %
Net income attributable to Primerica, Inc. $ 115,039 $ 125,168 $ 76,777 $ 143,956 $ 465,808 $ 460,940 ) -1.0 %
Less income attributable to unvested participating securities (475 ) (552 ) (361 ) (688 ) (1,908 ) (2,076 ) ) -8.8 %
Net income used in computing diluted EPS $ 114,564 $ 124,615 $ 76,415 $ 143,268 $ 463,901 $ 458,864 ) -1.1 %
Diluted earnings per share $ 2.91 $ 3.24 $ 2.04 $ 3.86 $ 11.70 $ 12.04 2.9 %
Adjusted net operating income $ 116,954 $ 127,922 $ 138,897 $ 142,040 $ 554,650 $ 525,813 ) -5.2 %
Less operating income attributable to unvested participating securities (483 ) (564 ) (653 ) (679 ) (2,271 ) (2,368 ) ) -4.2 %
Adjusted net operating income used in computing diluted operating EPS $ 116,471 $ 127,357 $ 138,244 $ 141,361 $ 552,379 $ 523,445 ) -5.2 %
Diluted adjusted operating income per share $ 2.96 $ 3.31 $ 3.68 $ 3.81 $ 13.93 $ 13.74 ) -1.4 %
YOY YTD
Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 YTD <br>2021 YTD <br>2022 /#Change %<br>Change
Annualized Return on Equity
Average stockholders' equity (1) $ 1,173,114 $ 1,612,843 $ 1,875,331 $ 1,984,703 $ 1,054,625 $ 1,661,498 57.5 %
Average adjusted stockholders' equity (1) $ 2,092,102 $ 2,083,676 $ 2,044,327 $ 2,068,165 $ 1,930,200 $ 2,072,068 7.3 %
Net income attributable to Primerica, Inc. return on stockholders' equity 39.2 % 31.0 % 16.4 % 29.0 % 44.2 % 27.7 % % nm
Net income attributable to Primerica, Inc. return on adjusted stockholders' equity 22.0 % 24.0 % 15.0 % 27.8 % 24.1 % 22.2 % % nm
Adjusted net operating income return on adjusted stockholders' equity 22.4 % 24.6 % 27.2 % 27.5 % 28.7 % 25.4 % % nm
Capital Structure
Debt-to-capital (2) 29.4 % 24.9 % 23.2 % 22.8 % 40.0 % 22.8 % % nm
Debt-to-capital, excluding AOCI (2) 22.3 % 22.3 % 22.6 % 21.8 % 22.6 % 21.8 % % nm
Cash and invested assets to stockholders' equity 3.2 x 2.5 x 2.3 x 2.3 x 5.1 x 2.3 x x) nm
Cash and invested assets to adjusted stockholders' equity 2.2 x 2.2 x 2.2 x 2.2 x 2.2 x 2.2 x x) nm
Share count, end of period (3) 38,751,885 37,768,052 37,026,600 36,824,428 39,367,754 36,824,428 ) -6.5 %
Adjusted stockholders' equity per share $ 54.09 $ 54.85 $ 54.48 $ 57.55 $ 53.05 $ 57.55 8.5 %
Financial Strength Ratings - Primerica Life Insurance Co
Moody's A1 A1 A1 A1 nm nm nm nm
S&P AA- AA- AA- AA- nm nm nm nm
A.M. Best A+ A+ A+ A+ nm nm nm nm
Holding Company Senior Debt Ratings
Moody's Baa1 Baa1 Baa1 Baa1 nm nm nm nm
S&P A- A- A- A- nm nm nm nm
A.M. Best a- a- a- a- nm nm nm nm

All values are in US Dollars.

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

(2) Debt-to-capital is that of the parent company only. Capital in the debt-to-capital ratio includes stockholders' equity and the note payable.

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

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Statements of Income PRIMERICA, INC.<br><br>Financial Supplement
YOY YTD
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(Dollars in thousands) Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 YTD <br>2021 YTD <br>2022 Change %<br>Change
Statement of Income
Revenues:
Direct premiums $ 798,666 $ 808,894 $ 810,079 $ 812,481 $ 3,122,148 $ 3,230,120 3.5 %
Ceded premiums (399,885 ) (419,048 ) (404,870 ) (406,088 ) (1,616,264 ) (1,629,892 ) ) -0.8 %
Net premiums 398,781 389,846 405,209 406,393 1,505,884 1,600,229 6.3 %
Net investment income 18,905 21,284 24,346 28,530 80,588 93,065 15.5 %
Commissions and fees:
Sales-based (1) 103,242 88,701 67,962 66,473 401,508 326,378 ) -18.7 %
Asset-based (2) 113,112 108,101 107,483 105,357 441,303 434,053 ) -1.6 %
Account-based (3) 21,541 22,592 22,910 23,348 86,939 90,391 4.0 %
Other commissions and fees 13,905 21,294 27,113 31,542 113,063 93,854 ) -17.0 %
Investment (losses) gains 751 (1,892 ) (2,699 ) 2,846 5,872 (995 ) ) -116.9 %
Other, net 20,988 18,755 20,964 22,451 74,575 83,159 11.5 %
Total revenues 691,225 668,681 673,288 686,940 2,709,732 2,720,134 0.4 %
Benefits and expenses:
Benefits and claims 168,288 153,071 164,092 165,742 619,702 651,193 5.1 %
Future policy benefits remeasurement (gain)/loss (1,272 ) (627 ) 988 433 1,297 (479 ) ) nm
Amortization of DAC 63,223 64,200 65,447 66,236 235,265 259,105 10.1 %
Insurance commissions 7,721 7,594 7,666 7,280 34,532 30,261 ) -12.4 %
Insurance expenses 59,509 59,461 57,552 58,883 202,604 235,405 16.2 %
Sales commissions:
Sales-based (1) 74,606 63,403 48,775 47,927 287,359 234,711 ) -18.3 %
Asset-based (2) 53,366 50,876 51,549 51,047 206,201 206,838 0.3 %
Other sales commissions 5,952 5,484 5,592 4,187 28,748 21,215 ) -26.2 %
Interest expense 6,853 6,814 6,802 6,768 30,618 27,237 ) -11.0 %
Contract acquistion costs (4) 20,649 19,384 13,446 14,952 52,788 68,431 29.6 %
Other operating expenses 86,434 79,728 73,790 80,443 296,851 320,394 7.9 %
Goodwill impairment — — 60,000 — 76,000 60,000 ) -21.1 %
Loss on extinguishment of debt — — — — 8,927 — ) -100.0 %
Total benefits and expenses 545,329 509,389 555,697 503,898 2,080,894 2,114,313 1.6 %
Income before income taxes 145,896 159,292 117,591 183,041 628,838 605,821 ) -3.7 %
Income taxes 33,511 36,509 40,815 39,085 164,407 149,919 ) -8.8 %
Net income 112,385 122,784 76,777 143,956 464,431 455,902 ) -1.8 %
Net income attributable to noncontrolling interests (2,654 ) (2,384 ) — — (1,377 ) (5,038 ) ) nm
Net Income attributable to Primerica, Inc. $ 115,039 $ 125,168 $ 76,777 $ 143,956 $ 465,808 $ 460,940 ) -1.0 %
Income Before Income Taxes by Segment
Term Life $ 118,575 $ 125,034 $ 128,168 $ 128,470 $ 486,543 $ 500,247 2.8 %
Investment & Savings Products 67,038 63,017 59,222 56,612 277,742 245,889 ) -11.5 %
Senior Health (23,085 ) (16,150 ) (63,723 ) 4,285 (85,050 ) (98,673 ) ) -16.0 %
Corporate & Other Distributed Products (16,632 ) (12,609 ) (6,075 ) (6,325 ) (50,397 ) (41,641 ) 17.4 %
Income before income taxes $ 145,896 $ 159,292 $ 117,591 $ 183,041 $ 628,838 $ 605,821 ) -3.7 %

All values are in US Dollars.

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

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

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

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

6 of 18

Reconciliation of Statement of Income GAAP to Non-GAAP Financial Measures PRIMERICA, INC.<br><br>Financial Supplement
YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 YTD <br>2021 YTD <br>2022 Change %<br>Change
Reconciliation from Term Life Direct Premiums to Term Life Adjusted Direct Premiums
Term Life direct premiums $ 793,254 $ 803,453 $ 804,586 $ 807,796 $ 3,099,828 $ 3,209,088 3.5 %
Less: Premiums ceded to IPO Coinsurers 234,614 231,805 226,869 224,240 978,085 917,527 ) -6.2 %
Term Life adjusted direct premiums $ 558,640 $ 571,648 $ 577,717 $ 583,556 $ 2,121,743 $ 2,291,561 8.0 %
Reconciliation from Term Life Ceded Premiums to Term Life Other Ceded Premiums
Term Life ceded premiums $ (398,446 ) $ (417,406 ) $ (403,416 ) $ (404,174 ) $ (1,609,598 ) $ (1,623,442 ) ) -0.9 %
Less: Premiums ceded to IPO Coinsurers (234,614 ) (231,805 ) (226,869 ) (224,240 ) (978,085 ) (917,527 ) 6.2 %
Term Life other ceded premiums $ (163,832 ) $ (185,601 ) $ (176,548 ) $ (179,935 ) $ (631,513 ) $ (705,915 ) ) -11.8 %
Reconciliation from Net Investment Income to Adjusted Net Investment Income
Net Investment Income $ 18,905 $ 21,284 $ 24,346 $ 28,530 $ 80,588 $ 93,065 15.5 %
Less: MTM investment adjustments (2,099 ) (1,254 ) (68 ) (409 ) (2,502 ) (3,830 ) nm nm
Adjusted net investment income $ 21,004 $ 22,538 $ 24,414 $ 28,940 $ 83,091 $ 96,896 16.6 %
Reconciliation from Other Operating Expenses to Adjusted other operating expenses
Other operating expenses $ 86,434 $ 79,728 $ 73,790 $ 80,443 $ 296,851 $ 320,394 7.9 %
Less: eTeleQuote transaction-related costs 900 (2,892 ) — — 12,948 (1,992 ) nm nm
Less: Equity comp for awards exchanged during acquisition 256 3,328 — — (1,744 ) 3,584 nm nm
Adjusted other operating expenses $ 85,278 $ 79,292 $ 73,790 $ 80,443 $ 285,646 $ 318,803 11.6 %
Reconciliation from Total Revenues to Adjusted Operating Revenues
Total revenues $ 691,225 $ 668,681 $ 673,288 $ 686,940 $ 2,709,732 $ 2,720,134 0.4 %
Less: Investment gains/(losses) 751 (1,892 ) (2,699 ) 2,846 5,872 (995 ) nm nm
Less: MTM investment adjustments (2,099 ) (1,254 ) (68 ) (409 ) (2,502 ) (3,830 ) nm nm
Adjusted operating revenues $ 692,573 $ 671,827 $ 676,056 $ 684,503 $ 2,706,363 $ 2,724,960 0.7 %
Reconciliation from Income Before Income Taxes to Adjusted Operating Income Before Income Taxes
Income before income taxes $ 145,896 $ 159,292 $ 117,591 $ 183,041 $ 628,838 $ 605,821 ) -3.7 %
Less: Investment gains/(losses) 751 (1,892 ) (2,699 ) 2,846 5,872 (995 ) nm nm
Less: MTM investment adjustments (2,099 ) (1,254 ) (68 ) (409 ) (2,502 ) (3,830 ) nm nm
Less: eTeleQuote transaction-related costs (900 ) 2,892 — — (12,948 ) 1,992 nm nm
Less: Equity comp for awards exchanged during acquisition (256 ) (3,328 ) — — 1,744 (3,584 ) nm nm
Less: Noncontrolling interest before income taxes (3,668 ) (3,129 ) — — (2,005 ) (6,797 ) nm nm
Less: Goodwill impairment — — (60,000 ) — (76,000 ) (60,000 ) nm nm
Less: Loss on extinguishment of debt — — — — (8,927 ) — nm nm
Adjusted operating income before income taxes $ 152,068 $ 166,003 $ 180,359 $ 180,605 $ 723,605 $ 679,035 ) -6.2 %
Reconciliation from Net Income to Adjusted Net Operating Income
Net income $ 112,385 $ 122,784 $ 76,777 $ 143,956 $ 464,431 $ 455,902 ) -1.8 %
Less: Investment gains/(losses) 751 (1,892 ) (2,699 ) 2,846 5,872 (995 ) nm nm
Less: MTM investment adjustments (2,099 ) (1,254 ) (68 ) (409 ) (2,502 ) (3,830 ) nm nm
Less: e-TeleQuote transaction-related costs (900 ) 2,892 — — (12,948 ) 1,992 nm nm
Less: Equity comp for awards exchanged during acquisition (256 ) (3,328 ) — — 1,744 (3,584 ) nm nm
Less: Noncontrolling interest before income taxes (3,668 ) (3,129 ) — — (2,005 ) (6,797 ) nm nm
Less: Goodwill impairment — — (60,000 ) — (76,000 ) (60,000 ) nm nm
Less: Loss on extinguishment of debt — — — — (8,927 ) — nm nm
Less: Tax impact of reconciling items 1,603 1,573 647 (520 ) 4,548 3,303 nm nm
Adjusted net operating income $ 116,954 $ 127,922 $ 138,897 $ 142,040 $ 554,650 $ 525,813 ) -5.2 %

All values are in US Dollars.

7 of 18

Reconciliation of Statement of Income GAAP to Non-GAAP Financial Measures PRIMERICA, INC.<br><br>Financial Supplement
YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 YTD <br>2021 YTD <br>2022 Change %<br>Change
Reconciliation from Senior Health Income Before Income Taxes to Senior Health Adjusted Operating Income Before Income Taxes
Income before income taxes $ (23,085 ) $ (16,150 ) $ (63,723 ) $ 4,285 $ (85,050 ) $ (98,673 ) ) -16.0 %
Less: e-TeleQuote transaction-related costs (399 ) (66 ) — — (806 ) (465 ) nm nm
Less: Noncontrolling interest (3,668 ) (3,129 ) — — (2,005 ) (6,797 ) nm nm
Less: Goodwill impairment — — (60,000 ) — (76,000 ) (60,000 ) nm nm
Adjusted operating income before income taxes $ (19,018 ) $ (12,955 ) $ (3,723 ) $ 4,285 $ (6,239 ) $ (31,411 ) ) nm
Reconciliation from C&O Income Before Income Taxes to C&O Adjusted Operating Income Before Income Taxes
Income before income taxes $ (16,632 ) $ (12,609 ) $ (6,075 ) $ (6,325 ) $ (50,397 ) $ (41,641 ) 17.4 %
Less: Investment gains/(losses) 751 (1,892 ) (2,699 ) 2,846 5,872 (995 ) nm nm
Less: MTM investment adjustments (2,099 ) (1,254 ) (68 ) (409 ) (2,502 ) (3,830 ) nm nm
Less: e-TeleQuote transaction-related costs (501 ) 2,958 — — (12,142 ) 2,458 nm nm
Less: Equity comp for awards exchanged during acquistion (256 ) (3,328 ) — — 1,744 (3,584 ) nm nm
Less: Loss on extinguishment of debt — — — — (8,927 ) — nm nm
Adjusted operating income before income taxes $ (14,527 ) $ (9,094 ) $ (3,307 ) $ (8,762 ) $ (34,440 ) $ (35,690 ) ) -3.6 %

All values are in US Dollars.

8 of 18

Term Life Insurance - Financial Results and Analysis PRIMERICA, INC.<br><br>Financial Supplement
YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 YTD <br>2021 YTD <br>2022 Change %<br>Change
Term Life Insurance Income Before Income Taxes
Revenues:
Direct Premiums $ 793,254 $ 803,453 $ 804,586 $ 807,796 $ 3,099,828 $ 3,209,088 3.5 %
Premiums ceded to IPO coinsurers (1) (234,614 ) (231,805 ) (226,869 ) (224,240 ) (978,085 ) (917,527 ) 6.2 %
Adjusted direct premiums (2) 558,640 571,648 577,717 583,556 2,121,743 2,291,561 8.0 %
Other ceded premiums (3) (163,832 ) (185,601 ) (176,548 ) (179,935 ) (631,513 ) (705,915 ) ) -11.8 %
Net premiums 394,808 386,047 401,169 403,621 1,490,231 1,585,646 6.4 %
Allocated net investment income — — — — — — 0.0 %
Other, net 12,175 12,374 13,419 12,352 48,970 50,320 2.8 %
Revenues 406,983 398,421 414,588 415,974 1,539,201 1,635,966 6.3 %
Benefits and expenses:
Benefits and claims 166,407 149,328 161,283 161,769 607,653 638,788 5.1 %
Future policy benefits remeasurement (gain)/loss (1,434 ) (663 ) 1,072 (526 ) 911 (1,551 ) ) nm
Amortization of DAC 61,369 62,538 63,631 64,813 228,375 252,352 10.5 %
Insurance commissions 3,793 3,854 3,964 3,724 18,457 15,335 ) -16.9 %
Insurance expenses 58,272 58,329 56,471 57,723 197,262 230,796 17.0 %
Benefits and expenses 288,408 273,387 286,421 287,504 1,052,658 1,135,719 7.9 %
Income before income taxes $ 118,575 $ 125,034 $ 128,168 $ 128,470 $ 486,543 $ 500,247 2.8 %
Total Term Life Insurance - Financial Analysis
Post-IPO direct premiums (4) $ 448,657 $ 460,061 $ 465,354 $ 469,565 $ 1,693,483 $ 1,843,637 8.9 %
Pre-IPO direct premiums (5) 344,597 343,392 339,232 338,230 1,406,345 1,365,451 ) -2.9 %
Total direct premiums $ 793,254 $ 803,453 $ 804,586 $ 807,796 $ 3,099,828 $ 3,209,088 3.5 %
Premiums ceded to IPO coinsurers $ 234,614 $ 231,805 $ 226,869 $ 224,240 $ 978,085 $ 917,527 ) -6.2 %
% of Pre-IPO direct premiums 68.1 % 67.5 % 66.9 % 66.3 % 69.5 % 67.2 % nm nm
Benefits and claims, net (6) $ 328,805 $ 334,266 $ 338,903 $ 341,178 $ 1,240,077 $ 1,343,152 8.3 %
% of adjusted direct premiums 58.9 % 58.5 % 58.7 % 58.5 % 58.4 % 58.6 % nm nm
DAC amortization & insurance commissions $ 65,163 $ 66,393 $ 67,595 $ 68,537 $ 246,832 $ 267,687 8.4 %
% of adjusted direct premiums 11.7 % 11.6 % 11.7 % 11.7 % 11.6 % 11.7 % nm nm
Insurance expenses, net (7) $ 46,097 $ 45,955 $ 43,052 $ 45,371 $ 148,291 $ 180,476 21.7 %
% of adjusted direct premiums 8.3 % 8.0 % 7.5 % 7.8 % 7.0 % 7.9 % nm nm
Total Term Life income before income taxes $ 118,575 $ 125,034 $ 128,168 $ 128,470 $ 486,543 $ 500,247 2.8 %
Term Life operating margin (8) 21.2 % 21.9 % 22.2 % 22.0 % 22.9 % 21.8 % nm nm

All values are in US Dollars.

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

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

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

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

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

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

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

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

9 of 18

Term Life Insurance - Key Statistics PRIMERICA, INC.<br><br>Financial Supplement
YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 YTD <br>2021 YTD <br>2022 /#Change %<br>Change
Key Statistics
Life-insurance licensed sales force, beginning of period 129,515 130,206 132,149 134,313 134,907 129,515 ) -4.0 %
9,983 11,529 12,518 11,117 39,622 45,147 13.9 %
(9,292 ) (9,586 ) (10,354 ) (10,222 ) (45,014 ) (39,454 ) 12.4 %
Life-insurance licensed sales force, end of period 130,206 132,149 134,313 135,208 129,515 135,208 4.4 %
Estimated annualized issued term life premium (mills) (1):
$ 65.5 $ 72.3 $ 68.0 $ 66.0 $ 297.2 $ 271.9 ) -8.5 %
18.4 20.6 19.5 18.2 77.0 76.7 ) -0.4 %
Total estimated annualized issued term life premium $ 83.8 $ 92.9 $ 87.5 $ 84.2 $ 374.2 $ 348.5 ) -6.9 %
Issued term life policies 71,324 76,946 71,104 72,544 323,855 291,918 ) -9.9 %
Estimated average annualized issued term life premium per policy (1)(2) $ 918 $ 940 $ 957 $ 910 $ 918 $ 931 1.5 %
Adjusted issued term life policies (3) $ 83,050 $ 89,316 $ 81,372 $ 79,282 na $ 333,020 na na
Adjusted estimated average annualized issued term life premium per policy (1)(2) $ 788 $ 810 $ 836 $ 833 na $ 816 na na
Term life face amount in-force, beginning of period (mills) $ 903,404 $ 909,632 $ 914,438 $ 912,785 $ 858,818 $ 903,404 5.2 %
24,773 27,651 26,049 25,349 108,521 103,822 ) -4.3 %
(19,787 ) (19,298 ) (21,033 ) (22,776 ) (64,798 ) (82,894 ) ) -27.9 %
1,242 (3,547 ) (6,669 ) 1,450 862 (7,524 ) ) nm
Term life face amount in-force, end of period $ 909,632 $ 914,438 $ 912,785 $ 916,808 $ 903,404 $ 916,808 1.5 %

All values are in US Dollars.

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

(2) In whole dollars.

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

10 of 18

Investment and Savings Products - Financial Results and Financial Analysis PRIMERICA, INC.<br><br>Financial Supplement
YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 YTD <br>2021 YTD <br>2022 Change %<br>Change
Investment & Savings Products Income Before Income Taxes
Revenues:
Commissions and fees:
Sales-based $ 103,242 $ 88,701 $ 67,962 $ 66,473 $ 401,508 $ 326,378 ) -18.7 %
Asset-based 113,112 108,101 107,483 105,357 441,303 434,053 ) -1.6 %
Account-based 21,541 22,592 22,910 23,348 86,939 90,391 4.0 %
Other, net 3,144 3,022 3,342 3,102 12,097 12,610 4.2 %
Revenues 241,039 222,416 201,697 198,280 941,848 863,432 ) -8.3 %
Benefits and expenses:
Amortization of DAC 1,446 1,421 1,378 1,336 5,511 5,581 1.3 %
Insurance commissions 3,646 3,450 3,419 3,320 14,904 13,834 ) -7.2 %
Sales commissions:
Sales-based 74,606 63,403 48,775 47,927 287,359 234,711 ) -18.3 %
Asset-based 53,366 50,876 51,549 51,047 206,201 206,838 0.3 %
Other operating expenses 40,936 40,249 37,355 38,038 150,130 156,578 4.3 %
Benefits and expenses 174,001 159,398 142,476 141,669 664,106 617,543 ) -7.0 %
Income before income taxes $ 67,038 $ 63,017 $ 59,222 $ 56,612 $ 277,742 $ 245,889 ) -11.5 %
Financial Analysis
Fees paid based on client asset values (1) $ 8,037 $ 7,917 $ 7,980 $ 8,004 $ 30,872 $ 31,939 3.5 %
Fees paid based on fee-generating positions (2) 10,948 9,974 9,486 9,665 39,452 40,073 1.6 %
Other operating expenses 21,951 22,358 19,889 20,369 79,806 84,567 6.0 %
Total other operating expenses $ 40,936 $ 40,249 $ 37,355 $ 38,038 $ 150,130 $ 156,578 4.3 %
Sales-based net revenue as % of revenue-generating sales (3)
U.S. 1.20 % 1.27 % 1.23 % 1.21 % 1.23 % 1.23 % nm nm
Canada 1.00 % 0.78 % 0.32 % 0.31 % 0.91 % 0.77 % nm nm
Total 1.16 % 1.21 % 1.17 % 1.15 % 1.18 % 1.17 % nm nm
Asset-based net revenue as % of average asset values (4)
U.S. 0.039 % 0.040 % 0.042 % 0.040 % 0.157 % 0.160 % nm nm
Canada 0.108 % 0.106 % 0.105 % 0.103 % 0.459 % 0.422 % nm nm
Total 0.049 % 0.051 % 0.052 % 0.050 % 0.204 % 0.202 % nm nm
Account-based net revenue per average fee generating position (5)(6) $ 3.48 $ 4.08 $ 4.31 $ 4.37 $ 16.26 $ 16.26 nm nm

All values are in US Dollars.

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

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

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

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

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

(6) In whole dollars.

11 of 18

Investment and Savings Products - Key Statistics PRIMERICA, INC.<br><br>Financial Supplement
YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 YTD <br>2021 YTD <br>2022 /#Change %<br>Change
Key Statistics
Product sales (mills)
$ 1,298.6 $ 1,151.4 $ 931.8 $ 883.8 $ 5,146.1 $ 4,265.6 ) -17.1 %
437.6 250.6 112.2 112.0 1,438.8 912.5 ) -36.6 %
57.5 70.2 55.8 69.2 230.2 252.6 9.7 %
668.4 617.3 542.5 548.0 2,845.6 2,376.2 ) -16.5 %
Total sales-based revenue generating product sales 2,462.1 2,089.5 1,642.3 1,612.9 9,660.7 7,806.8 ) -19.2 %
453.7 451.3 319.6 288.1 1,505.6 1,512.8 0.5 %
82.2 97.5 157.9 156.6 317.9 494.3 55.5 %
67.3 51.3 41.6 35.0 219.0 195.1 ) -10.9 %
Total product sales $ 3,065.4 $ 2,689.6 $ 2,161.5 $ 2,092.5 $ 11,703.2 $ 10,009.0 ) -14.5 %
$ 519.9 $ 348.1 $ 270.2 $ 268.6 $ 1,756.7 $ 1,406.8 ) -19.9 %
67.3 51.3 41.6 35.0 219.0 195.1 ) -10.9 %
Total Canada product sales 587.1 399.4 311.8 303.5 1,975.6 1,601.9 ) -18.9 %
Total U.S. product sales 2,478.2 2,290.1 1,849.7 1,789.0 9,727.5 8,407.1 ) -13.6 %
Total product sales $ 3,065.4 $ 2,689.6 $ 2,161.5 $ 2,092.5 $ 11,703.2 $ 10,009.0 ) -14.5 %
Client asset values, beginning of period (mills) $ 97,312 $ 93,708 $ 82,291 $ 78,737 $ 81,533 $ 97,312 19.4 %
3,065 2,690 2,161 2,093 11,703 10,009 ) -14.5 %
(1,900 ) (1,797 ) (1,447 ) (1,444 ) (7,161 ) (6,587 ) 8.0 %
Net flows 1,166 893 714 649 4,543 3,422 ) nm
171 (474 ) (802 ) 174 91 (930 ) ) nm
(4,941 ) (11,836 ) (3,466 ) 4,388 11,146 (15,855 ) ) nm
Client asset values, end of period $ 93,708 $ 82,291 $ 78,737 $ 83,949 $ 97,312 $ 83,949 ) -13.7 %
4.8 % 3.8 % 3.5 % 3.3 % 5.6 % 3.5 % % nm
Average client asset values (mills)
$ 46,429 $ 42,870 $ 40,331 $ 40,402 $ 44,703 $ 42,508 ) -4.9 %
12,119 11,539 10,840 10,759 11,294 11,314 0.2 %
7,077 6,960 6,817 6,949 6,086 6,951 14.2 %
2,650 2,677 2,696 2,710 2,560 2,683 4.8 %
23,218 21,431 20,269 20,137 22,651 21,264 ) -6.1 %
2,710 2,517 2,368 2,299 2,698 2,474 ) -8.3 %
Total $ 94,203 $ 87,994 $ 83,320 $ 83,256 $ 89,993 $ 87,193 ) -3.1 %
$ 12,119 $ 11,539 $ 10,840 $ 10,759 $ 11,294 $ 11,314 0.2 %
2,710 2,517 2,368 2,299 2,698 2,474 ) -8.3 %
Total Canada average client assets 14,829 14,056 13,208 13,058 13,992 13,788 ) -1.5 %
Total U.S. average client assets 79,374 73,938 70,112 70,198 76,000 73,405 ) -3.4 %
Total average client assets $ 94,203 $ 87,994 $ 83,320 $ 83,256 $ 89,993 $ 87,193 ) -3.1 %
Average number of fee-generating positions (thous) (3)
2,243 2,277 2,295 2,309 2,171 2,281 5.1 %
797 812 820 825 749 814 8.6 %
Total 3,040 3,089 3,115 3,134 2,920 3,095 6.0 %

All values are in US Dollars.

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

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

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

12 of 18

Senior Health - Financial Results, Financial Analysis Key Statistics PRIMERICA, INC.<br><br>Financial Supplement
YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands, except as noted) Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 YTD <br>2021 YTD <br>2022 Change %<br>Change
Senior Health Income Before Income Taxes
Revenues:
Commissions and fees (1) $ 1,278 $ 9,343 $ 14,601 $ 22,198 $ 50,903 $ 47,420 ) -6.8 %
Other, net (2) 4,553 2,471 2,583 5,655 9,537 15,262 60.0 %
Revenues 5,831 11,814 17,183 27,853 60,440 62,682 3.7 %
Benefits and expenses:
Contract acquisition costs (3) 20,649 19,384 13,446 14,952 52,788 68,431 29.6 %
Adjusted other operating expenses 7,868 8,514 7,461 8,617 15,895 32,459 104.2 %
Adjusted operating benefits and expenses 28,517 27,898 20,907 23,568 68,684 100,889 46.9 %
Adjusted operating income before income taxes including NCI $ (22,686 ) $ (16,084 ) $ (3,723 ) $ 4,285 $ (8,243 ) $ (38,208 ) ) nm
Non-controlling interest before income taxes (3,668 ) (3,129 ) — — (2,005 ) (6,797 ) ) nm
Adjusted operating income before income taxes attributable to Primerica, Inc. $ (19,018 ) $ (12,955 ) $ (3,723 ) $ 4,285 $ (6,239 ) $ (31,411 ) ) nm
Senior Health EBITDA
Adjusted operating income before income taxes including NCI $ (22,686 ) $ (16,084 ) $ (3,723 ) $ 4,285 $ (8,243 ) $ (38,208 ) ) nm
Less: Amortization of intangibles (2,600 ) (2,800 ) (2,800 ) (2,800 ) (5,800 ) (11,000 ) ) -89.7 %
Less: Depreciation (245 ) (226 ) (221 ) (211 ) (493 ) (903 ) ) -83.0 %
Adjusted EBITDA (Including non-controlling interest) (4) $ (19,841 ) $ (13,058 ) $ (703 ) $ 7,297 $ (1,950 ) $ (26,305 ) ) nm
Financial Analysis and Key Statistics
Senior Health submitted policies (5) 26,231 19,652 16,095 23,060 60,009 85,038 41.7 %
Senior Health approved policies (6) 23,594 17,925 14,862 20,705 50,323 77,086 53.2 %
Primerica representatives Senior Health certified 42,147 60,412 83,280 93,348 26,441 93,348 nm
Senior Health submitted policies sourced by Primerica representatives 988 831 1,016 5,666 4,494 8,501 89.2 %
LTV per approved policy (7) $ 862 $ 820 $ 868 $ 888 $ 1,109 $ 860 ) -22.4 %
CAC per approved policy (7) $ 875 $ 1,081 $ 905 $ 722 $ 1,049 $ 888 ) -15.4 %
LTV / CAC multiple 1.0 x 0.8 x 1.0 x 1.2 x 1.1 x 1.0 x x nm

All values are in US Dollars.

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

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

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

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

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

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

(7) In whole dollars.

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Corporate Other Distributed Products - Financial Results PRIMERICA, INC.<br><br>Financial Supplement
YOY YTD
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022 YTD <br>2021 YTD <br>2022 Change %<br>Change
Corporate & Other Distributed Products Income Before Income Taxes
Revenues:
Direct premiums $ 5,412 $ 5,441 $ 5,494 $ 4,685 $ 22,320 $ 21,032 ) -5.8 %
Ceded premiums (1,439 ) (1,642 ) (1,454 ) (1,914 ) (6,666 ) (6,449 ) 3.3 %
Net premiums 3,973 3,799 4,040 2,772 15,654 14,583 ) -6.8 %
Adjusted net investment income 21,004 22,538 24,414 28,940 83,091 96,896 16.6 %
Commissions and fees:
Prepaid Legal Services 4,287 4,664 5,672 3,821 20,761 18,444 ) -11.2 %
Auto and Homeowners Insurance 1,591 2,056 2,647 1,994 8,295 8,289 ) -0.1 %
Mortgage loans 4,818 3,128 2,103 1,656 24,337 11,705 ) -51.9 %
Other sales commissions 1,932 2,103 2,090 1,872 8,767 7,996 ) -8.8 %
Other, net 1,117 889 1,621 1,341 3,969 4,967 25.1 %
Adjusted operating revenues 38,721 39,176 42,587 42,396 164,874 162,880 ) -1.2 %
Benefits and expenses:
Benefits and claims 1,881 3,743 2,809 3,972 12,049 12,406 3.0 %
Future policy benefits remeasurement (gain)/loss 162 36 (84 ) 958 386 1,072 nm
Amortization of DAC 407 240 438 87 1,379 1,173 ) -15.0 %
Insurance commissions 282 290 283 237 1,171 1,092 ) -6.7 %
Insurance expenses 1,237 1,132 1,081 1,160 5,343 4,609 ) -13.7 %
Sales commissions 5,952 5,484 5,592 4,187 28,748 21,215 ) -26.2 %
Interest expense 6,853 6,814 6,802 6,768 30,618 27,237 ) -11.0 %
Adjusted other operating expenses 36,475 30,530 28,974 33,788 119,621 129,766 8.5 %
Adjusted benefits and expenses 53,248 48,270 45,894 51,158 199,314 198,569 ) -0.4 %
Adjusted operating income before income taxes $ (14,527 ) $ (9,094 ) $ (3,307 ) $ (8,762 ) $ (34,440 ) $ (35,690 ) ) -3.6 %

All values are in US Dollars.

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Investment Portfolio - Summary of Holdings PRIMERICA, INC.<br><br>Financial Supplement
As of or for the period ended December 31, 2022
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
% of Total Avg
Market Amortized Unrealized Market Amortized Book Avg
(Dollars in thousands) Value Cost G/(L) Value Cost Yield Rating
Investment Portfolio by Asset Class
Cash, Cash Equivalents, and Short Term $ 558,646 $ 558,646 $ - 18.1 % 16.4 %
Fixed Income:
Treasury 41,741 42,629 (889 ) 1.3 % 1.3 % 1.31 % AAA
Government 231,004 257,418 (26,414 ) 7.5 % 7.6 % 2.98 % AA-
Tax-Exempt Municipal 32,883 37,084 (4,201 ) 1.1 % 1.1 % 2.69 % AA
Corporate 1,229,921 1,370,566 (140,645 ) 39.8 % 40.3 % 3.55 % BBB+
Mortgage Backed 414,043 486,093 (72,050 ) 13.4 % 14.3 % 2.92 % AAA
Asset Backed 155,397 171,811 (16,413 ) 5.0 % 5.1 % 3.70 % AA
CMBS 122,967 139,306 (16,339 ) 4.0 % 4.1 % 3.39 % AA-
Private 267,612 295,957 (28,345 ) 8.7 % 8.7 % 4.46 % BBB
Redeemable Preferred 3,586 4,248 (662 ) 0.1 % 0.1 % 5.27 % BBB-
Total Fixed Income 2,499,154 2,805,113 (305,959 ) 80.8 % 82.5 % 3.44 % A
Equities and Other:
Perpetual Preferred 8,651 8,651 - 0.3 % 0.3 %
Common Stock 20,958 20,958 (0 ) 0.7 % 0.6 %
Mutual Fund 5,795 5,795 0 0.2 % 0.2 %
Total Equities 35,404 35,404 (0 ) 1.1 % 1.0 %
Total Invested Assets $ 3,093,205 $ 3,399,164 $ (305,959 ) 100.0 % 100.0 %
Public Corporate Portfolio by Sector
Insurance $ 154,034 $ 174,626 $ (20,592 ) 12.5 % 12.7 %
Consumer Non Cyclical 131,027 147,361 (16,334 ) 10.7 % 10.8 %
Energy 127,361 140,782 (13,421 ) 10.4 % 10.3 %
Reits 118,000 135,921 (17,921 ) 9.6 % 9.9 %
Consumer Cyclical 103,177 114,688 (11,512 ) 8.4 % 8.4 %
Banking 97,588 103,414 (5,827 ) 7.9 % 7.5 %
Technology 93,443 102,008 (8,565 ) 7.6 % 7.4 %
Capital Goods 62,874 68,555 (5,680 ) 5.1 % 5.0 %
Basic Industry 60,439 67,998 (7,558 ) 4.9 % 5.0 %
Electric 55,377 61,586 (6,209 ) 4.5 % 4.5 %
Finance Companies 55,140 62,779 (7,639 ) 4.5 % 4.6 %
Transportation 54,942 60,604 (5,663 ) 4.5 % 4.4 %
Communications 44,182 48,537 (4,355 ) 3.6 % 3.5 %
Brokerage 44,124 49,757 (5,633 ) 3.6 % 3.6 %
Financial Other 8,638 9,584 (946 ) 0.7 % 0.7 %
Natural Gas 7,188 7,739 (551 ) 0.6 % 0.6 %
Industrial Other 5,951 6,915 (964 ) 0.5 % 0.5 %
Utility Other 4,583 5,388 (805 ) 0.4 % 0.4 %
Owned No Guarantee 1,854 2,325 (471 ) 0.2 % 0.2 %
Total Corporate portfolio $ 1,229,921 $ 1,370,566 $ (140,645 ) 100.0 % 100.0 %
Fixed-Maturity Securities - Effective Maturity
Effective maturity
< 1 Yr. $ 190,479 $ 192,567 $ (2,088 ) 7.6 % 6.9 % 3.15 %
1-2 Yrs. 271,286 280,539 (9,253 ) 10.9 % 10.0 % 3.63 %
2-5 Yrs. 781,492 845,989 (64,497 ) 31.3 % 30.2 % 3.67 %
5-10 Yrs. 980,174 1,149,971 (169,798 ) 39.2 % 41.0 % 3.25 %
> 10 Yrs. 275,724 336,047 (60,323 ) 11.0 % 12.0 % 3.54 %
Total Fixed Income $ 2,499,154 $ 2,805,113 $ (305,959 ) 100.0 % 100.0 % 3.44 %
Duration
Fixed Income portfolio duration 4.7 years

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

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Investment Portfolio - Quality Ratings As of December 31, 2022 PRIMERICA, INC.<br><br>Financial Supplement
(Dollars in thousands)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Investment Portfolio Quality Ratings (1)
Amortized Cost % of Total
Total Fixed Income portfolio:
Rating
AAA $ 606,982 21.6 %
AA 321,450 11.5 %
A 688,936 24.6 %
BBB 1,120,096 39.9 %
Below Investment Grade 67,450 2.4 %
NA 199 0.0 %
Total Fixed Income $ 2,805,113 100.0 %
Amortized Cost % of Total Amortized Cost % of Total
Public Corporate asset class: Private Placement asset class:
Rating Rating
AAA $ 11,835 0.9 % AAA $ - —
AA 67,985 5.0 % AA 5,274 1.8 %
A 356,459 26.0 % A 66,034 22.3 %
BBB 872,920 63.7 % BBB 222,819 75.3 %
Below Investment Grade 61,192 4.5 % Below Investment Grade 1,830 0.6 %
NA 176 0.0 % NA - —
Total Corporate $ 1,370,566 100.0 % Total Private $ 295,957 100.0 %
CMBS asset class: Mortgage-Backed asset class:
Rating Rating
AAA $ 60,409 43.4 % AAA $ 435,692 89.6 %
AA 8,930 6.4 % AA 50,170 10.3 %
A 69,968 50.2 % A 135 0.0 %
BBB - — BBB - —
Below Investment Grade - — Below Investment Grade 73 0.0 %
NA - — NA 23 0.0 %
Total CMBS $ 139,306 100.0 % Total Mortgage-Backed $ 486,093 100.0 %
Asset-Backed asset class: Treasury & Government asset classes:
Rating Rating
AAA $ 35,245 20.5 % AAA $ 63,108 21.0 %
AA 9,466 5.5 % AA 151,320 50.4 %
A 117,409 68.3 % A 71,904 24.0 %
BBB 7,964 4.6 % BBB 11,088 3.7 %
Below Investment Grade 1,727 1.0 % Below Investment Grade 2,629 0.9 %
NA - — NA - —
Total Asset-Backed $ 171,811 100.0 % Total Treasury & Government $ 300,047 100.0 %
NAIC Designations
1 $ 1,357,429 54.8 %
2 1,038,960 42.0 %
3 71,518 2.9 %
4 7,813 0.3 %
5 691 0.0 %
6 0 0.0 %
U.S. Insurer Fixed Income (2) 2,476,411 100.0 %
Other (3) 364,107
Cash and cash equivalents 558,646
Total Invested Assets $ 3,399,164

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

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

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

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

16 of 18

Investment Portfolio - Supplemental Data and Trends PRIMERICA, INC.<br><br>Financial Supplement
YOY Q4
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Dollars in thousands) Q1 <br>2021 Q2 <br>2021 Q3 <br>2021 Q4 <br>2021 Q1 <br>2022 Q2 <br>2022 Q3 <br>2022 Q4 <br>2022 Change %<br>Change
Net Investment Income by Source
Fixed-maturity securities (available-for-sale) $ 20,020 $ 20,155 $ 19,860 $ 20,328 $ 20,889 $ 22,414 $ 23,067 $ 24,605 21.0%
Fixed-maturity securities (held-to-maturity) 15,146 15,495 15,741 15,825 15,515 15,815 16,283 16,309 3.1%
Equity Securities 391 411 413 416 387 371 373 377 ) -9.3%
Deposit asset underlying 10% reinsurance treaty 1,368 1,238 987 785 589 485 557 2,134 172.0%
Deposit asset - Mark to Market (793 ) (170 ) (640 ) (899 ) (2,099 ) (1,254 ) (68 ) (409 ) -54.5%
Policy loans and other invested assets 231 98 289 401 102 58 436 450 12.3%
Cash & cash equivalents 119 156 96 85 125 498 1,714 3,605 4141.4%
Total investment income 36,483 37,383 36,746 36,940 35,508 38,387 42,362 47,072 27.4%
Investment expenses 1,284 1,353 1,004 1,114 1,088 1,288 1,733 2,233 100.4%
Interest Expense on Surplus Note 15,146 15,495 15,741 15,825 15,515 15,815 16,283 16,309 3.1%
Net investment income $ 20,052 $ 20,535 $ 20,001 $ 20,001 $ 18,905 $ 21,284 $ 24,346 $ 28,530 42.6%
Fixed income book yield, end of period 3.30 % 3.31 % 3.23 % 3.12 % 3.18 % 3.25 % 3.34 % 3.44 %
New money yield 1.72 % 2.68 % 2.21 % 1.60 % 3.37 % 4.21 % 3.93 % 5.41 %
YOY Q4
Q1 <br>2021 Q2 <br>2021 Q3 <br>2021 Q4 <br>2021 Q1 <br>2022 Q2 <br>2022 Q3 <br>2022 Q4 <br>2022 % PtChange
Fixed Income Portfolio Quality Ratings
Rating
AAA 16.6 % 16.5 % 18.0 % 18.7 % 21.0 % 22.0 % 21.5 % 21.6 % %
AA 12.2 % 11.6 % 11.0 % 11.8 % 11.2 % 11.2 % 11.1 % 11.5 % %
A 23.0 % 22.1 % 23.6 % 24.4 % 23.7 % 23.0 % 23.0 % 24.6 % %
BBB 44.0 % 45.5 % 42.9 % 40.8 % 39.8 % 39.6 % 40.1 % 39.9 % %
Below Investment Grade 4.1 % 4.2 % 4.1 % 3.5 % 3.1 % 2.8 % 2.7 % 2.4 % %
NA 0.1 % 0.1 % 0.3 % 0.8 % 1.2 % 1.3 % 1.5 % 0.0 % %
Total Fixed Income 100.0 % 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 A

All values are in US Dollars.

As of December 31, 2022 As of December 31, 2022 As of December 31, 2022
Market<br>Value Amortized<br>Cost Credit<br>Rating Market<br>Value Amortized<br>Cost Market<br>Value Amortized<br>Cost
Top 25 Exposures Foreign Exposure (1) Government Investments (1)
1 Canada $ 20,709 $ 22,122 AAA Canada $ 87,091 $ 97,039 AAA $ 2,000 $ 2,121
2 Province of Quebec Canada 16,052 16,658 A+ Australia 21,060 22,497 AA 4,742 4,749
3 Province of Ontario Canada 14,139 14,708 AA United Kingdom 18,418 18,985 A 9,070 10,904
4 Ontario Teachers' Pension Plan 12,538 14,327 AA+ France 8,720 9,256 BBB 9,552 10,638
5 Province of Alberta Canada 11,727 12,819 BBB+ Mexico 7,895 9,355 Below Investment Grade 2,160 2,629
6 Morgan Stanley 11,304 11,782 BBB+ Cayman Islands 6,464 8,201 NA — —
7 Manulife Financial Corp 10,603 11,592 A Bermuda 6,373 6,853 Total $ 27,524 $ 31,040
8 TC Energy Corp 10,240 11,656 BBB+ Ireland 6,041 6,235
9 ConocoPhillips 9,249 10,697 A Japan 5,437 5,474
10 Province of Saskatchewan Canada 9,247 9,634 AA Netherlands 5,293 5,450 Non-Government Investments (1)
11 Enbridge Inc 8,998 9,878 BBB+ Malta 5,231 5,466
12 Kemper Corp 8,216 9,094 BBB Israel 4,717 4,825 AAA $ 2,909 $ 2,999
13 Fairfax Financial Holdings Ltd 8,182 9,815 BBB- Brazil 3,516 3,557 AA 2,305 2,412
14 Brookfield Corp 8,142 8,500 A- Norway 2,884 3,144 A 42,393 45,565
15 Intact Financial Corp 7,924 7,873 A+ Supranational 2,747 2,750 BBB 139,079 150,125
16 City of Toronto Canada 7,821 8,132 AA Emerging Markets (2) 11,424 13,080 Below Investment Grade 3,995 4,246
17 Western & Southern Mutual Holdings 7,769 9,488 AA All Other 16,558 15,883 NA 1,665 1,665
18 Province of New Brunswick Canada 7,682 8,134 A+ Total $ 219,870 $ 238,052 Total $ 192,346 $ 207,011
19 Province of British Columbia Canada 7,489 7,956 AA+
20 Province of Newfoundland and Labrador 7,352 8,214 A
21 Apple Inc 7,139 7,708 AA+
22 Air Lease Corp 7,055 7,895 BBB
23 Tokyo Century Corp 6,968 7,984 BBB
24 Booking Holdings Inc 6,939 7,080 A-
25 GATX Corp 6,849 7,538 BBB
Total $ 240,333 $ 261,284
% of total fixed income portfolio 7.8 % 7.7 %

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

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

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

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Five-Year Historical Key Statistics PRIMERICA, INC.<br><br>Financial Supplement
(Dollars in millions) 2018 2019 2020 2021 2022 Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2021 Q1<br>2022 Q2<br>2022 Q3<br>2022 Q4<br>2022
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Recruits 290,886 282,207 400,345 349,374 359,735 94,633 89,285 91,884 73,572 84,707 70,215 127,788 77,025
Life-insurance licensed sales force, beginning of period 126,121 130,736 130,522 134,907 129,515 134,907 132,030 132,041 130,023 129,515 130,206 132,149 134,313
New life-licensed representatives 48,041 44,739 48,106 39,622 45,147 10,833 10,112 9,381 9,296 9,983 11,529 12,518 11,117
Non-renewal and terminated representatives (43,426 ) (44,953 ) (43,721 ) (45,014 ) (39,454 ) (13,710 ) (10,101 ) (11,399 ) (9,804 ) (9,292 ) (9,586 ) (10,354 ) (10,222 )
Life-insurance licensed sales force, end of period 130,736 130,522 134,907 129,515 135,208 132,030 132,041 130,023 129,515 130,206 132,149 134,313 135,208
Issued term life policies 301,589 287,809 352,868 323,855 291,918 82,667 90,071 75,914 75,203 71,324 76,946 71,104 72,544
Issued term life face amount $ 95,209 $ 93,994 $ 109,436 $ 108,521 $ 103,822 $ 26,643 $ 29,981 $ 26,219 $ 25,678 $ 24,773 $ 27,651 $ 26,049 $ 25,349
Term life face amount in force, beginning of period $ 763,831 $ 781,041 $ 808,262 $ 858,818 $ 903,404 $ 858,818 $ 869,643 $ 886,519 $ 894,018 $ 903,404 $ 909,632 $ 914,438 $ 912,785
Issued term life face amount 95,209 93,994 109,436 108,521 103,822 26,643 29,981 26,219 25,678 24,773 27,651 26,049 25,349
Terminated term life face amount (70,291 ) (71,519 ) (60,848 ) (64,798 ) (82,894 ) (17,240 ) (14,706 ) (16,241 ) (16,610 ) (19,787 ) (19,298 ) (21,033 ) (22,776 )
Foreign currency impact, net (7,708 ) 4,746 1,968 862 (7,524 ) 1,422 1,602 (2,480 ) 319 1,242 (3,547 ) (6,669 ) 1,450
Term life face amount in force, end of period $ 781,041 $ 808,262 $ 858,818 $ 903,404 $ 916,808 $ 869,643 $ 886,519 $ 894,018 $ 903,404 $ 909,632 $ 914,438 $ 912,785 $ 916,808
Estimated annualized issued term life premium
Premium from new policies $ 250.8 $ 244.8 $ 303.6 $ 297.2 $ 271.9 $ 74.5 $ 82.6 $ 70.7 $ 69.4 $ 65.5 $ 72.3 $ 68.0 $ 66.0
Additions and increases in premium 55.2 60.2 68.9 77.0 76.7 18.0 20.3 19.5 19.1 18.4 20.6 19.5 18.2
Total estimated annualized issued term life premium $ 306.0 $ 305.0 $ 372.5 $ 374.2 $ 348.5 $ 92.5 $ 103.0 $ 90.2 $ 88.5 $ 83.8 $ 92.9 $ 87.5 $ 84.2
Investment & Savings product sales $ 7,040.1 $ 7,533.2 $ 7,842.5 $ 11,703.2 $ 10,009.0 $ 2,853.5 $ 3,040.2 $ 2,790.4 $ 3,019.0 $ 3,065.4 $ 2,689.6 $ 2,161.5 $ 2,092.5
Investment & Savings average client asset values $ 61,842 $ 65,029 $ 69,709 $ 89,993 $ 87,193 $ 83,131 $ 89,378 $ 92,652 $ 94,809 $ 94,203 $ 87,994 $ 83,320 $ 83,256
Closed U.S. Mortgage Volume (brokered) $ — $ 31.1 $ 442.5 $ 1,229.2 $ 567.2 $ 262.3 $ 298.6 $ 337.6 $ 330.8 $ 235.9 $ 152.7 $ 99.8 $ 78.9

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