Equibles

8-K

Primerica, Inc. (PRI)

8-K 2021-08-05 For: 2021-08-05
View Original
Added on April 04, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

DATE OF REPORT (Date of earliest event reported):      August 5, 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 August 5, 2021, Primerica, Inc. (the “Company”) announced its results of operations for the quarter ended June 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 Etelequote Limited’s operating subsidiaries (collectively, “e-TeleQuote”).  We exclude e-TeleQuote transaction-related expenses as these are non-recurring items that will cause incomparability between period-over-period results.  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 August 5, 2021, the Company posted to the “Investor Relations” section of its website certain supplemental financial information relating to the quarter ended June 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 August 5, 2021 – Primerica Reports Second Quarter 2021 Results
99.2 Primerica, Inc. Supplemental Financial Information – Second 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:  August 5, 2021 PRIMERICA, INC.
/s/ Alison S. Rand
Alison S. Rand
Executive Vice President and Chief Financial Officer

3

pri-ex991_7.htm

Exhibit 99.1

PRIMERICA REPORTS SECOND QUARTER 2021 RESULTS

Investment and Savings Products sales surpass $3 billion

Demand for protection products remains strong with over 90,000 new term life policies issued

Net earnings per diluted share (EPS) of $3.22, up 28%; return on stockholders’ equity (ROE) of 26.3%

Diluted adjusted operating EPS of $3.25, up 33%; adjusted net operating income return on adjusted stockholders’ equity (ROAE) of 27.8%

July 1 closing of previously announced acquisition of 80% of the operating subsidiaries of Etelequote Limited

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

Duluth, GA, August 5, 2021 – Primerica, Inc. (NYSE: PRI) today announced financial results for the quarter ended June 30, 2021.  Total revenues of $654.7 million increased 25% compared to the second quarter of 2020.  Net income of $128.2 million increased 26%, while earnings per diluted share of $3.22 increased 28% compared to the same quarter last year.  ROE remained robust at 26.3%.

Adjusted operating revenues, adjusted net operating income and diluted adjusted operating earnings per share are non-GAAP financial measures that exclude the impact of realized gains/losses and the mark-to-market adjustment on the reinsurance deposit asset.  Adjusted net operating income and diluted adjusted operating earnings per share also exclude transaction-related expenses associated with the purchase of 80% of the operating subsidiaries of Etelequote Limited (“e-TeleQuote”).  During the second quarter of 2021, transaction-related expenses were $2.1 million.  A reconciliation of non-GAAP to GAAP financial measures is included at the end of this release.

Adjusted operating revenues were $654.2 million, increasing 25% compared to the second quarter of 2020.  Adjusted net operating income of $129.4 million increased 31%, while diluted adjusted operating earnings per share of $3.25 increased 33% compared to the same quarter last year.  ROAE was 27.8% during the second quarter of 2021 and 25.6% during the second quarter of 2020.

Second quarter results reflect clients’ continued demand for investment products and term life protection, strength in equity markets, and elevated persistency across all durations of the Company’s in-force Term Life insurance business.  Clients remain focused on the future and planning for retirement which, when combined with strong equity markets, pushed investment products sales over $3.0 billion for the first time in Company history. The Term Life segment continues to experience elevated death claims due to a combination of COVID-related deaths as well as excess mortality not identified as COVID.

“Sales results in our core businesses remain very strong,” said Glenn Williams, Chief Executive Officer.  “We are encouraged by our continued momentum and remain focused on growing our sales force as the licensing process starts to normalize and new recruits resume their pre-COVID activities.”

Second Quarter Distribution & Segment Results

Distribution Results
Q2 2021 Q2 2020 % Change
Life-Licensed Sales Force ^(1)^ 132,041 134,157 (2 )%
Recruits 89,285 133,123 (33 )%
New Life-Licensed Representatives 10,112 12,250 (17 )%
Life Insurance Policies Issued 90,071 94,044 (4 )%
Life Productivity^(2)^ 0.23 0.24 *
ISP Product Sales ($ billions) $ 3.04 $ 1.69 80 %
Average Client Asset Values ($ billions) $ 89.38 $ 64.64 38 %
Closed U.S. Mortgage Volume ($ million brokered) $ 298.6 $ 65.8 *
^(1)^ End of period
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^(2)^ Life productivity equals policies issued divided by the average number of life insurance licensed representatives per month
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*     Not calculated

Segment Results
Q2 2021 Q2 2020 % Change
( in thousands)
Adjusted Operating Revenues:
Term Life Insurance $ 328,233 17 %
Investment and Savings Products 164,181 45 %
Corporate and Other Distributed Products ^(1)^ 29,400 11 %
Total adjusted operating revenues ^(1)^ $ 521,814 25 %
Adjusted Operating Income (Loss) before<br><br><br>income taxes:
Term Life Insurance $ 94,904 23 %
Investment and Savings Products 46,860 52 %
Corporate and Other Distributed Products ^(1)^ ) (11,703 ) 44 %
Total adjusted operating income before<br><br><br>income taxes ^(1)^ $ 130,061 32 %

All values are in US Dollars.

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

Life Insurance Licensed Sales Force

During the second quarter, the Company recruited nearly 90,000 individuals and over 10,000 representatives obtained a new life insurance license.  Year-over-year comparisons are challenging due to measures introduced last year to mitigate the COVID shutdown.  The Company remains focused on converting new recruits to licensed representatives despite disruptions in the licensing process.

At June 30, 2021, the Company had a total of 132,041 independent life-licensed representatives, including an estimated 2,400 individuals with COVID-related temporary licenses or licenses with an extended renewal date. Experience suggests the likelihood of conversion to a permanent license or ultimately renewing an extended renewal diminishes over time. At this point, the 2,400 individuals are not expected to remain licensed.

Term Life Insurance

Term life continues to experience strong results with revenues increasing to $383.5 million, or 17% year-over-year, driven by 16% growth in adjusted direct premiums from strong sales and favorable persistency.   Pre-tax income of $116.8 million increased 23% over the prior year period.

Client demand for term life insurance protection remains high.  During the quarter, the Company issued over 90,000 life insurance policies, only 4% below the heightened level issued last year when the onset of COVID created a surge in demand for new policies.  Productivity for the quarter, which is seasonally elevated in the second quarter, remained above the Company’s historical range at 0.23 policies per life-licensed representatives per month versus 0.24 in the prior year’s second quarter, reflecting the continued favorable sentiment for protection products.

COVID claims of approximately $6 million during the quarter were generally in line with expectations and $4 million lower than the prior year period.  The Company also experienced about $3 million in higher claims not identified as COVID in the current period that we believe is normal volatility.   Persistency remains above historical levels and improved over the already strong persistency experienced a year ago.  Better persistency reduced DAC amortization by $6 million, partially offset by a $2 million higher benefit reserve increase year-over-year.  Insurance expenses increased 12% due to growth in the business, higher employee costs and investments in technology.

Investment and Savings Products

Investment sales remained at record levels with a total of $3.0 billion in new sales during the second quarter of 2021.  Strong equity markets that continue to fuel investor confidence, combined with clients’ increased focus on saving for the future, led to significant growth across all products, including mutual funds, annuities and managed accounts.  Net client inflows of $1.2 billion during the quarter were approximately twice the level in the prior year period.    Client asset values ended the quarter at $91.7 billion,

an increase of 34% year-over-year, reflecting strong market performance and nearly $3.5 billion of net client inflows over the last twelve months.

Revenues of $238.0 million during the second quarter increased 45% compared to the same quarter in 2020, while pre-tax income of $71.2 million increased 52%.  Sales-based revenues increased 67% while revenue generating sales increased 79%.  Revenue growth lagged the growth in sales due to a higher proportion of large mutual fund trades, which earn a lower per-sale commission.  Asset-based revenues increased 39% year-over-year, in line with the increase in average client asset values.  Sales and asset-based commission expenses were largely in line with revenues.  Canadian segregated fund DAC amortization during the second quarter of 2021 was higher by approximately $1.7 million compared to the second quarter of 2020 due to the significant market correction during the prior year period.  Other operating expenses increased 11% year-over-year largely due to the growth in the underlying business.

Corporate and Other Distributed Products

During the second quarter of 2021, the segment recorded an adjusted operating loss before taxes of $16.9 million compared to $11.7 million in the prior year’s second quarter.  Segment adjusted revenues increased $3.2 million, or 11% year-over-year, with commissions and fees from mortgage sales increasing $4.8 million.  Allocated net investment income decreased $2.0 million from lower portfolio yields and a higher allocation to the Term Life segment to support the growing block of business, partially offset by a larger invested asset portfolio.

Sales commissions and other operating expenses increased $9.2 million, or $7.1 million when excluding the $2.1 million in e-TeleQuote transaction-related expenses recognized during the quarter.  The remainder of the year-over-year increase was due in part to $3.1 million in mortgage commissions and support costs as well as approximately $3 million of employee-related costs and continued spending on growth initiatives and technology.  Benefits and claims increased $1.6 million year-over-year primarily due to the lower interest rate environment and improved persistency on a closed block of discontinued business.

Taxes

The effective tax rate remains relatively unchanged at 24.4% in the second quarter of 2021 compared to 24.3% in the second quarter of 2020.

Capital

As of June 30, 2021, invested assets and cash at the holding company was $666.0 million, reflecting the liquidity build-up to fund the acquisition of e-TeleQuote, which closed on July 1.  Immediately following the closing, invested assets and cash at the holding company was $169.1 million.  The NAIC recently adopted new bond factors that go into effect for 2021 year-end reporting.  Using this new approach, Primerica Life Insurance Company's statutory risk-based capital (RBC) ratio is estimated at 410% at

June 30, 2021.  The Board of Directors has approved a dividend of $0.47 per share, payable on September 14, 2021, to stockholders of record on August 20, 2021.

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 Etelequote Limited’s operating subsidiaries (collectively “e-TeleQuote”).  We exclude e-TeleQuote transaction-related expenses as these are non-recurring items that will cause incomparability between period-over-period results.  Adjusted stockholders’ equity excludes the impact of net unrealized investment gains (losses) recorded in accumulated other comprehensive income (loss) for all periods presented. We exclude unrealized investment gains (losses) in measuring adjusted stockholders’ equity as unrealized gains (losses) from the Company’s available-for-sale securities are largely caused by market movements in interest rates and credit spreads that do not necessarily correlate with the cash flows we will ultimately realize when an available-for-sale security matures or is sold.

Our definitions of these non-GAAP financial measures may differ from the definitions of similar measures used by other companies.  Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance.  Furthermore, management believes that these non-GAAP financial measures may provide users with additional meaningful comparisons between current results and results of prior periods as they are expected

to be reflective of the core ongoing business.  These measures have limitations, and investors should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP.  Reconciliations of GAAP to non-GAAP financial measures are attached to this release.

Earnings Webcast Information

Primerica will hold a webcast on Friday, August 6, 2021 at 9:00 a.m. Eastern, to discuss the quarter’s results.  To access the webcast, go to https://investors.primerica.com at least 15 minutes prior to the event to register, download and install any necessary software.  A replay of the call will be available for approximately 30 days.  This release and a detailed financial supplement will be posted on Primerica’s website.

Forward-Looking Statements

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

regulatory investigations and actions; a significant change in the competitive environment in which we operate; the loss of key personnel or sales force leaders; any acquisition or investment in businesses that do not perform as we expect or are difficult to integrate; due to our very limited history with e-TeleQuote, we cannot be certain that its business will be successful or that we will successfully address any risks not known to us that may become material; a failure by e-TeleQuote to comply with the requirements of the United States government’s Centers for Medicare and Medicaid Services and those of its carrier partners; legislative or regulatory changes to Medicare Advantage or changes to the implementing guidance by the Centers for Medicare and Medicaid Services; e-TeleQuote’s inability to acquire or generate leads on commercially viable terms, convert leads to sales or if customer 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 http://investors.primerica.com. Primerica assumes no duty to update its forward-looking statements as of any future date.

About Primerica, Inc.

Primerica, Inc., headquartered in Duluth, GA, is a leading provider of financial services to middle-income households in North America. Independent licensed representatives educate Primerica clients about how to better prepare for a more secure financial future by assessing their needs and providing appropriate solutions through term life insurance, which we underwrite, and mutual funds, annuities and other financial products, which we distribute primarily on behalf of third parties. We insured 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)
June 30, 2021 December 31, 2020
(In thousands)
Assets
Investments:
Fixed-maturity securities available-for-sale, at fair value $ 2,514,585 $ 2,464,611
Fixed-maturity security held-to-maturity, at amortized cost 1,368,740 1,346,350
Short-term investments available-for-sale, at fair value 40,325 -
Equity securities, at fair value 39,377 38,023
Trading securities, at fair value 33,498 16,300
Policy loans 29,449 30,199
Total investments 4,025,974 3,895,483
Cash and cash equivalents 774,591 547,569
Accrued investment income 18,698 17,618
Reinsurance recoverables 4,239,510 4,273,904
Deferred policy acquisition costs, net 2,808,347 2,629,644
Agent balances, due premiums and other receivables 273,493 259,448
Intangible assets 45,275 45,275
Income taxes 75,069 73,290
Operating lease right-of-use assets 44,037 46,567
Other assets 469,050 456,967
Separate account assets 2,745,827 2,659,520
Total assets $ 15,519,871 $ 14,905,285
Liabilities and Stockholders' Equity
Liabilities:
Future policy benefits $ 6,984,272 $ 6,790,557
Unearned and advance premiums 20,229 17,136
Policy claims and other benefits payable 471,290 519,711
Other policyholders' funds 485,855 447,765
Notes payable – Long term 374,606 374,415
Other debt obligations - Long term 125,000 -
Surplus note 1,368,194 1,345,772
Income taxes 204,197 223,496
Operating lease liabilities 50,194 52,806
Other liabilities 590,831 566,068
Payable under securities lending 80,613 72,154
Separate account liabilities 2,745,827 2,659,520
Total liabilities 13,501,108 13,069,400
Stockholders' equity:
Common stock 394 393
Paid-in capital 12,880 -
Retained earnings 1,894,539 1,705,786
Accumulated other comprehensive income (loss),<br><br><br>net of income tax 110,950 129,706
Total stockholders' equity 2,018,763 1,835,885
Total liabilities and stockholders' equity $ 15,519,871 $ 14,905,285
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- ---
Condensed Consolidated Statements of Income
(Unaudited)
Three months ended June 30,
2021 2020
(In thousands, except per-share amounts)
Revenues:
Direct premiums $ 780,299 $ 717,088
Ceded premiums (413,850 ) (402,549 )
Net premiums 366,449 314,539
Commissions and fees 250,688 171,788
Net investment income 20,535 22,710
Realized investment gains (losses) 701 1,742
Other, net 16,313 15,036
Total revenues 654,686 525,815
Benefits and expenses:
Benefits and claims 168,347 139,646
Amortization of deferred policy acquisition costs 54,286 53,177
Sales commissions 131,303 85,492
Insurance expenses 48,579 43,753
Insurance commissions 8,838 6,333
Interest expense 7,141 7,200
Other operating expenses 66,726 56,152
Total benefits and expenses 485,220 391,753
Income before income taxes 169,466 134,062
Income taxes 41,304 32,552
Net income $ 128,162 $ 101,510
Earnings per share:
Basic earnings per share $ 3.23 $ 2.52
Diluted earnings per share $ 3.22 $ 2.51
Weighted-average shares used in computing<br><br><br>earnings per share:
Basic 39,531 40,132
Diluted 39,652 40,246
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- --- --- --- ---
Consolidated Adjusted Operating Results Reconciliation
(Unaudited – in thousands, except per share amounts)
Three months ended June 30,
2021 2020 % Change
Total revenues $ 654,686 $ 525,815 25 %
Less: Realized investment gains (losses) 701 1,742
Less: 10% deposit asset MTM included in NII (170 ) 2,259
Adjusted operating revenues $ 654,155 $ 521,814 25 %
Income before income taxes $ 169,466 $ 134,062 26 %
Less: Realized investment gains (losses) 701 1,742
Less: 10% deposit asset MTM included in NII (170 ) 2,259
Less: e-TeleQuote transaction-related expenses (2,109 ) -
Adjusted operating income before income taxes $ 171,044 $ 130,061 32 %
Net income $ 128,162 $ 101,510 26 %
Less: Realized investment gains (losses) 701 1,742
Less: 10% deposit asset MTM included in NII (170 ) 2,259
Less: e-TeleQuote transaction-related expenses (2,109 ) -
Less: Tax impact of preceding items 385 (972 )
Adjusted net operating income $ 129,355 $ 98,481 31 %
Diluted earnings per share ^(1)^ $ 3.22 $ 2.51 28 %
Less: Net after-tax impact of operating adjustments (0.03 ) 0.07
Diluted adjusted operating earnings per share ^(1)^ $ 3.25 $ 2.44 33 %
^(1)^ Percentage change in earnings per share is calculated prior to rounding per share amounts.
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TERM LIFE INSURANCE SEGMENT
--- --- --- --- --- --- --- --- --- ---
Adjusted Premiums Reconciliation
(Unaudited – in thousands)
Three months ended June 30,
2021 2020 % Change
Direct premiums $ 774,500 $ 711,188 9 %
Less: Premiums ceded to IPO coinsurers 246,874 257,529
Adjusted direct premiums $ 527,626 $ 453,659 16 %
Ceded premiums $ (412,028 ) $ (400,919 )
Less: Premiums ceded to IPO coinsurers (246,874 ) (257,529 )
Other ceded premiums $ (165,154 ) $ (143,390 )
Net premiums $ 362,472 $ 310,269 17 %
CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT
--- --- --- --- --- --- --- --- --- ---
Adjusted Operating Results Reconciliation
(Unaudited – in thousands)
Three months ended June 30,
2021 2020 % Change
Total revenues $ 33,138 $ 33,401 (1 )%
Less: Realized investment gains (losses) 701 1,742
Less: 10% deposit asset MTM included in NII (170 ) 2,259
Adjusted operating revenues $ 32,607 $ 29,400 11 %
Loss before income taxes $ (18,466 ) $ (7,702 ) 140 %
Less: Realized investment gains (losses) 701 1,742
Less: 10% deposit asset MTM included in NII (170 ) 2,259
Less: e-TeleQuote transaction-related expenses (2,109 ) -
Adjusted operating loss before income taxes $ (16,888 ) $ (11,703 ) 44 %
PRIMERICA, INC. AND SUBSIDIARIES
--- --- --- --- --- --- --- ---
Adjusted Stockholders' Equity Reconciliation
(Unaudited – in thousands)
June 30, 2021 December 31, 2020 % Change
Stockholders' equity $ 2,018,763 $ 1,835,885 10 %
Less: Unrealized net investment gains (losses) recorded<br><br><br>in stockholders' equity, net of income tax 96,990 128,128
Adjusted stockholders' equity $ 1,921,773 $ 1,707,757 13 %

11

pri-ex992_6.htm

Exhibit 99.2

Supplemental Financial Information

Second 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
Segment operating results 8
Term Life Insurance segment - financial results, key statistics, and financial analysis 9-10
Investment and Savings Products segment - financial results, financial analysis, and key statistics 11-12
Investment portfolio 13-15
Five-year historical key statistics 16

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

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

Second Quarter 2021

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

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

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
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
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
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
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
Due from reinsurers 4,169,823 4,132,897 4,217,129 4,229,088 4,273,904 4,345,483 4,239,510
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
Other assets 792,129 799,123 851,660 885,083 899,165 921,236 925,621
Separate account assets 2,485,745 2,128,924 2,377,654 2,468,328 2,659,520 2,638,901 2,745,827
Total assets $ 13,688,532 $ 13,270,912 $ 13,964,550 $ 14,300,532 $ 14,905,286 $ 15,113,858 $ 15,519,871
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
Other policy liabilities 744,087 737,435 855,083 911,454 984,612 1,020,349 977,373
Income taxes 209,221 208,357 265,369 216,639 223,496 235,233 204,197
Other liabilities 563,930 554,014 574,426 573,254 618,874 633,719 641,025
Debt obligations 374,037 374,131 374,226 374,320 374,415 374,511 499,606
Surplus note 1,183,728 1,236,644 1,277,970 1,323,146 1,345,772 1,361,648 1,368,194
Payable under securities lending 28,723 28,896 29,973 48,883 72,154 87,190 80,613
Separate account liabilities 2,485,745 2,128,924 2,377,654 2,468,328 2,659,520 2,638,901 2,745,827
Total liabilities 12,036,039 11,740,798 12,321,870 12,580,086 13,069,401 13,236,666 13,501,107
Stockholders’ equity:
Common stock (0.01 par value) (1) 412 405 397 394 393 394 394
Paid-in capital (0 ) (0 ) (0 ) (0 ) (0 ) 8,138 12,880
Retained earnings 1,593,281 1,565,803 1,569,689 1,629,114 1,705,786 1,785,037 1,894,539
Treasury stock — — — — — — —
Accumulated other comprehensive income (loss), net:
64,564 (1,318 ) 93,726 105,758 128,128 77,053 96,990
(5,765 ) (34,776 ) (21,132 ) (14,820 ) 1,578 6,570 13,960
Total stockholders’ equity 1,652,492 1,530,114 1,642,680 1,720,446 1,835,885 1,877,192 2,018,764
Total liabilities and stockholders' equity $ 13,688,530 $ 13,270,912 $ 13,964,550 $ 14,300,532 $ 14,905,286 $ 15,113,858 $ 15,519,871
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
Less: Net unrealized gains (losses) 64,564 (1,318 ) 93,726 105,758 128,128 77,053 96,990
Adjusted stockholders’ equity $ 1,587,928 $ 1,531,431 $ 1,548,954 $ 1,614,688 $ 1,707,757 $ 1,800,139 $ 1,921,774
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
Net Income 93,557 72,469 101,510 112,101 100,084 97,872 128,162
Shareholder dividends (14,162 ) (16,530 ) (16,083 ) (15,882 ) (15,851 ) (18,620 ) (18,660 )
Retirement of shares and warrants (44,137 ) (95,676 ) (86,513 ) (41,556 ) (13,426 ) (5,966 ) (521 )
Net foreign currency translation adjustment 6,500 (29,011 ) 13,645 6,312 16,398 4,992 7,390
Other, net 4,734 12,252 4,964 4,759 5,864 14,105 5,264
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
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
General expenses deferred 8,608 9,726 9,205 9,702 9,510 10,558 10,055
Commission costs deferred 97,538 104,793 120,967 130,719 128,084 134,188 136,085
Amortization of deferred policy acquisition costs (67,279 ) (70,311 ) (53,177 ) (47,491 ) (53,342 ) (66,105 ) (54,286 )
Foreign currency impact and other, net 5,322 (23,302 ) 10,812 5,017 12,984 3,884 4,324
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

All values are in US Dollars.

(1) Outstanding common shares exclude restricted stock units.

4 of 16

Financial Results and Other Statistical Data PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q2 YOY YTD
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(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 /#<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 ) -1.5 % 40,631,539 39,493,526 ) -2.8%
Net income $ 72,469 $ 101,510 $ 112,101 $ 100,084 $ 97,872 $ 128,162 26.3 % $ 173,979 $ 226,033 29.9%
Less income attributable to unvested participating securities (310 ) (437 ) (493 ) (433 ) (417 ) (525 ) ) -20.2 % (747 ) (945 ) ) -26.4%
Net income used in computing basic EPS $ 72,159 $ 101,073 $ 111,608 $ 99,651 $ 97,455 $ 127,636 26.3 % $ 173,232 $ 225,089 29.9%
Basic earnings per share $ 1.75 $ 2.52 $ 2.82 $ 2.53 $ 2.47 $ 3.23 28.2 % $ 4.26 $ 5.70 33.7%
Adjusted net operating income $ 85,047 $ 98,480 $ 110,718 $ 97,339 $ 97,129 $ 129,355 31.4 % $ 183,527 $ 226,485 23.4%
Less operating income attributable to unvested participating securities (364 ) (424 ) (487 ) (421 ) (414 ) (530 ) ) -25.0 % (788 ) (947 ) ) -20.1%
Adjusted net operating income used in computing basic operating EPS $ 84,682 $ 98,056 $ 110,231 $ 96,918 $ 96,715 $ 128,825 31.4 % $ 182,739 $ 225,538 23.4%
Basic adjusted operating income per share $ 2.06 $ 2.44 $ 2.78 $ 2.46 $ 2.45 $ 3.26 33.4 % $ 4.50 $ 5.71 27.0%
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 ) -1.5 % 40,631,539 39,493,526 ) -2.8%
Dilutive impact of contingently issuable shares 107,361 114,090 122,097 133,544 124,505 121,594 6.6 % 110,725 123,050 11.1%
Shares used to calculate diluted EPS 41,238,561 40,245,967 39,710,075 39,554,172 39,580,453 39,652,285 ) -1.5 % 40,742,264 39,616,576 ) -2.8%
Net income $ 72,469 $ 101,510 $ 112,101 $ 100,084 $ 97,872 $ 128,162 26.3 % $ 173,979 $ 226,033 29.9%
Less income attributable to unvested participating securities (310 ) (436 ) (492 ) (431 ) (416 ) (524 ) ) -20.1 % (746 ) (942 ) ) -26.4%
Net income used in computing diluted EPS $ 72,159 $ 101,074 $ 111,609 $ 99,652 $ 97,456 $ 127,638 26.3 % $ 173,234 $ 225,091 29.9%
Diluted earnings per share $ 1.75 $ 2.51 $ 2.81 $ 2.52 $ 2.46 $ 3.22 28.2 % $ 4.25 $ 5.68 33.6%
Adjusted net operating income $ 85,047 $ 98,480 $ 110,718 $ 97,339 $ 97,129 $ 129,355 31.4 % $ 183,527 $ 226,485 23.4%
Less operating income attributable to unvested participating securities (364 ) (423 ) (486 ) (420 ) (413 ) (529 ) ) -25.0 % (786 ) (944 ) ) -20.0%
Adjusted net operating income used in computing diluted operating EPS $ 84,683 $ 98,057 $ 110,232 $ 96,919 $ 96,717 $ 128,827 31.4 % $ 182,741 $ 225,541 23.4%
Diluted adjusted operating income per share $ 2.05 $ 2.44 $ 2.78 $ 2.45 $ 2.44 $ 3.25 33.3 % $ 4.49 $ 5.69 26.9%

All values are in US Dollars.

YOY Q2 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 /#<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 $ 1,591,303 $ 1,586,397 $ 1,681,563 $ 1,778,166 $ 1,856,539 $ 1,947,978 22.8 % $ 1,588,850 $ 1,902,258 19.7 %
Average adjusted stockholders' equity $ 1,559,680 $ 1,540,193 $ 1,581,821 $ 1,661,222 $ 1,753,948 $ 1,860,956 20.8 % $ 1,549,936 $ 1,807,452 16.6 %
Net income return on stockholders' equity 18.2 % 25.6 % 26.7 % 22.5 % 21.1 % 26.3 % % nm 21.9 % 23.8 % % nm
Net income return on adjusted stockholders' equity 18.6 % 26.4 % 28.3 % 24.1 % 22.3 % 27.5 % % nm 22.4 % 25.0 % % nm
Adjusted net operating income return on adjusted stockholders' equity 21.8 % 25.6 % 28.0 % 23.4 % 22.2 % 27.8 % % nm 23.7 % 25.1 % % nm
Capital Structure
Debt-to-capital (1) 19.6 % 18.6 % 17.9 % 16.9 % 16.6 % 19.8 % % nm 18.6 % 19.8 % % nm
Debt-to-capital, excluding AOCI (1) 19.3 % 19.2 % 18.7 % 18.0 % 17.3 % 20.8 % % nm 19.2 % 20.8 % % 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 x) nm 2.5 x 2.4 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 x) nm 2.6 x 2.5 x x) nm
Share count, end of period (2) 40,459,767 39,667,002 39,374,259 39,305,902 39,414,085 39,443,561 ) -0.6 % 39,667,002 39,443,561 ) -0.6 %
Adjusted stockholders' equity per share $ 37.85 $ 39.05 $ 41.01 $ 43.45 $ 45.67 $ 48.72 24.8 % $ 39.05 $ 48.72 24.8 %
Financial Strength Ratings - Primerica Life Insurance Co
Moody's A1 A1 A1 A1 A1 A1 nm nm nm nm nm nm
S&P AA- AA- AA- AA- AA- AA- nm nm nm nm nm nm
A.M. Best 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 nm nm nm nm nm nm
S&P A- A- A- A- A- A- nm nm nm nm nm nm
A.M. Best a- a- a- a- a- a- nm nm nm nm nm nm

All values are in US Dollars.

(1) Debt-to-capital is that of the parent company only.  Capital in the debt-to-capital ratio includes stockholders' equity and the note payable.
(2) Share count reflects outstanding common shares, but excludes restricted stock units (RSUs).
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5 of 16

Statements of Income PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q2 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 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 8.8 % $ 1,419,725 $ 1,542,526 8.6 %
Ceded premiums (386,825 ) (402,549 ) (393,716 ) (397,676 ) (395,973 ) (413,850 ) ) -2.8 % (789,374 ) (809,822 ) ) -2.6 %
Net premiums 315,813 314,539 342,890 353,142 366,254 366,450 16.5 % 630,351 732,704 16.2 %
Net investment income 15,420 22,710 22,953 22,731 20,052 20,535 ) -9.6 % 38,130 40,588 6.4 %
Commissions and fees:
Sales-based (1) 80,891 62,812 65,600 75,347 98,112 104,716 66.7 % 143,704 202,828 41.1 %
Asset-based (2) 81,395 78,146 86,695 93,669 101,241 108,490 38.8 % 159,540 209,731 31.5 %
Account-based (3) 20,204 20,478 21,008 21,351 21,120 21,848 6.7 % 40,682 42,968 5.6 %
Other commissions and fees 7,579 10,352 11,999 13,746 13,571 15,635 51.0 % 17,931 29,205 62.9 %
Realized investment (losses) gains (10,030 ) 1,742 642 2,650 1,766 701 ) -59.8 % (8,288 ) 2,466 129.8 %
Other, net 13,665 15,036 16,674 15,695 15,595 16,313 8.5 % 28,701 31,908 11.2 %
Total revenues 524,936 525,815 568,460 598,330 637,711 654,687 24.5 % 1,050,751 1,292,399 23.0 %
Benefits and expenses:
Benefits and claims 134,813 139,646 160,166 180,945 183,789 168,347 20.6 % 274,459 352,136 28.3 %
Amortization of DAC 70,311 53,177 47,491 53,342 66,105 54,286 2.1 % 123,488 120,390 ) -2.5 %
Insurance commissions 6,844 6,333 9,694 9,263 8,740 8,838 39.6 % 13,177 17,578 33.4 %
Insurance expenses 48,709 43,753 46,109 49,546 48,766 48,579 11.0 % 92,463 97,345 5.3 %
Sales commissions:
Sales-based (1) 56,561 44,834 46,821 52,931 68,594 73,629 64.2 % 101,395 142,224 40.3 %
Asset-based (2) 36,323 35,673 39,349 43,227 46,866 50,488 41.5 % 71,996 97,355 35.2 %
Other sales commissions 3,723 4,985 5,779 6,430 6,434 7,185 44.1 % 8,708 13,619 56.4 %
Interest expense 7,192 7,200 7,221 7,225 7,145 7,141 ) -0.8 % 14,392 14,285 ) -0.7 %
Other operating expenses 65,914 56,152 59,348 63,781 72,964 66,730 18.8 % 122,066 139,693 14.4 %
Total benefits and expenses 430,391 391,753 421,978 466,690 509,403 485,222 23.9 % 822,144 994,625 21.0 %
Income before income taxes 94,546 134,062 146,482 131,640 128,308 169,465 26.4 % 228,608 297,773 30.3 %
Income taxes 22,077 32,552 34,382 31,556 30,437 41,304 26.9 % 54,628 71,740 31.3 %
Net income $ 72,469 $ 101,510 $ 112,101 $ 100,084 $ 97,872 $ 128,162 26.3 % $ 173,979 $ 226,033 29.9 %
Income Before Income Taxes by Segment
Term Life $ 82,892 $ 94,903 $ 105,316 $ 89,440 $ 88,236 $ 116,778 23.0 % $ 177,795 $ 205,014 15.3 %
Investment & Savings Products 47,700 46,859 51,372 56,713 63,363 71,154 51.8 % 94,559 134,517 42.3 %
Corporate & Other Distributed Products (36,046 ) (7,700 ) (10,206 ) (14,514 ) (23,290 ) (18,467 ) ) -139.8 % (43,746 ) (41,757 ) 4.5 %
Income before income taxes $ 94,546 $ 134,062 $ 146,482 $ 131,640 $ 128,308 $ 169,465 26.4 % $ 228,608 $ 297,773 30.3 %

All values are in US Dollars.

(1) Sales-based - revenues or commission expenses relating to the sales of mutual funds and variable annuities.
(2) Asset-based - revenues or commission expenses relating to the value of assets in client accounts for which we earn ongoing service, distribution, and other fees.
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(3) Account-based - revenues relating to the fee generating client accounts we administer.
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6 of 16

Reconciliation of Statement of Income GAAP to Non-GAAP Financial Measures PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q2 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 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 8.9 % $ 1,407,751 $ 1,531,014 8.8 %
Less: Premiums ceded to IPO Coinsurers 260,076 257,529 254,938 253,039 249,944 246,874 ) -4.1 % 517,605 496,818 ) -4.0 %
Term Life adjusted direct premiums $ 436,488 $ 453,659 $ 475,335 $ 492,520 $ 506,570 $ 527,626 16.3 % $ 890,147 $ 1,034,196 16.2 %
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 ) ) -2.8 % $ (786,151 ) $ (806,578 ) ) -2.6 %
Less: Premiums ceded to IPO Coinsurers (260,076 ) (257,529 ) (254,938 ) (253,039 ) (249,944 ) (246,874 ) 4.1 % (517,605 ) (496,818 ) 4.0 %
Term Life other ceded premiums $ (125,156 ) $ (143,390 ) $ (137,066 ) $ (142,728 ) $ (144,606 ) $ (165,154 ) ) -15.2 % $ (268,546 ) $ (309,760 ) ) -15.3 %
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 ) -9.6 % $ 38,130 $ 40,588 6.4 %
Less: MTM investment adjustments (6,379 ) 2,259 1,165 960 (793 ) (170 ) nm nm (4,120 ) (963 ) nm nm
Adjusted net investment income $ 21,799 $ 20,451 $ 21,788 $ 21,771 $ 20,845 $ 20,705 1.2 % $ 42,250 $ 41,550 ) -1.7 %
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 18.8 % $ 122,066 $ 139,693 14.4 %
Less: eTeleQuote transaction-related costs — — — — — 2,109 nm nm — 2,109 nm nm
Adjusted other operating expenses $ 65,914 $ 56,152 $ 59,348 $ 63,781 $ 72,964 $ 64,620 15.1 % $ 122,066 $ 137,584 12.7 %
Reconciliation from Total Revenues to Adjusted Operating Revenues
Total revenues $ 524,936 $ 525,815 $ 568,460 $ 598,330 $ 637,711 $ 654,687 24.5 % $ 1,050,751 $ 1,292,399 23.0 %
Less: Realized investment gains/(losses) (10,030 ) 1,742 642 2,650 1,766 701 nm nm (8,288 ) 2,466 nm nm
Less: MTM investment adjustments (6,379 ) 2,259 1,165 960 (793 ) (170 ) nm nm (4,120 ) (963 ) nm nm
Adjusted operating revenues $ 541,346 $ 521,813 $ 566,653 $ 594,720 $ 636,738 $ 654,156 25.4 % $ 1,063,159 $ 1,290,895 21.4 %
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 26.4 % $ 228,608 $ 297,773 30.3 %
Less: Realized investment gains/(losses) (10,030 ) 1,742 642 2,650 1,766 701 nm nm (8,288 ) 2,466 nm nm
Less: MTM investment adjustments (6,379 ) 2,259 1,165 960 (793 ) (170 ) nm nm (4,120 ) (963 ) nm nm
Less: eTeleQuote transaction-related costs — — — — — (2,109 ) nm nm — (2,109 ) nm nm
Adjusted operating income before income taxes $ 110,955 $ 130,060 $ 144,676 $ 128,030 $ 127,335 $ 171,044 31.5 % $ 241,015 $ 298,379 23.8 %
Reconciliation from Net Income to Adjusted Net Operating Income
Net income $ 72,469 $ 101,510 $ 112,101 $ 100,084 $ 97,872 $ 128,162 26.3 % $ 173,979 $ 226,033 29.9 %
Less: Income before income taxes reconciling items (16,409 ) 4,002 1,807 3,610 973 (1,578 ) nm nm (12,408 ) (605 ) nm nm
Less: Tax impact of income before income taxes reconciling items 3,832 (972 ) (424 ) (865 ) (231 ) 385 nm nm 2,860 154 nm nm
Adjusted net operating income $ 85,047 $ 98,480 $ 110,718 $ 97,339 $ 97,129 $ 129,355 31.4 % $ 183,527 $ 226,485 23.4 %

All values are in US Dollars.

7 of 16

Segment Operating Results PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q2 YOY YTD
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(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 Change %<br><br><br>Change YTD<br><br><br>2020 YTD<br><br><br>2021 Change %<br><br><br>Change
Term Life Insurance
Revenues:
Direct Premiums $ 696,564 $ 711,188 $ 730,273 $ 745,559 $ 756,514 $ 774,500 8.9 % $ 1,407,751 $ 1,531,014 8.8 %
Premiums ceded to IPO coinsurers (1) (260,076 ) (257,529 ) (254,938 ) (253,039 ) (249,944 ) (246,874 ) 4.1 % (517,605 ) (496,818 ) 4.0 %
Adjusted direct premiums (2) 436,488 453,659 475,335 492,520 506,570 527,626 16.3 % 890,147 1,034,196 16.2 %
Other ceded premiums (3) (125,156 ) (143,390 ) (137,066 ) (142,728 ) (144,606 ) (165,154 ) ) -15.2 % (268,546 ) (309,760 ) ) -15.3 %
Net premiums 311,332 310,269 338,269 349,792 361,964 362,472 16.8 % 621,601 724,436 16.5 %
Allocated net investment income 6,246 6,538 6,813 7,432 8,253 8,751 33.8 % 12,785 17,004 33.0 %
Other, net 10,168 11,426 12,717 11,768 11,810 12,315 7.8 % 21,594 24,125 11.7 %
Revenues 327,747 328,233 357,799 368,992 382,028 383,537 16.8 % 655,979 765,565 16.7 %
Benefits and expenses:
Benefits and claims 128,563 135,409 156,209 173,767 178,963 162,488 20.0 % 263,973 341,452 29.4 %
Amortization of DAC 65,840 52,730 45,529 52,109 62,584 52,235 ) -0.9 % 118,571 114,820 ) -3.2 %
Insurance commissions 3,286 2,884 5,946 5,477 4,869 4,785 65.9 % 6,169 9,654 56.5 %
Insurance expenses 47,165 42,306 44,800 48,199 47,375 47,252 11.7 % 89,472 94,627 5.8 %
Benefits and expenses 244,855 233,330 252,483 279,551 293,792 266,760 14.3 % 478,185 560,552 17.2 %
Income before income taxes $ 82,892 $ 94,903 $ 105,316 $ 89,440 $ 88,236 $ 116,778 23.0 % $ 177,795 $ 205,014 15.3 %
Investment & Savings Products
Revenues:
Commissions and fees:
Sales-based $ 80,891 $ 62,812 $ 65,600 $ 75,347 $ 98,112 $ 104,716 66.7 % $ 143,704 $ 202,828 41.1 %
Asset-based 81,395 78,146 86,695 93,669 101,241 108,490 38.8 % 159,540 209,731 31.5 %
Account-based 20,204 20,478 21,008 21,351 21,120 21,848 6.7 % 40,682 42,968 5.6 %
Other, net 2,542 2,745 3,034 2,949 2,949 2,958 7.8 % 5,287 5,907 11.7 %
Revenues 185,033 164,180 176,338 193,316 223,422 238,012 45.0 % 349,213 461,434 32.1 %
Benefits and expenses:
Amortization of DAC 4,305 100 1,667 982 3,275 1,786 nm 4,405 5,061 14.9 %
Insurance commissions 3,201 3,106 3,377 3,500 3,572 3,747 20.6 % 6,307 7,319 16.0 %
Sales commissions:
Sales-based 56,561 44,834 46,821 52,931 68,594 73,629 64.2 % 101,395 142,224 40.3 %
Asset-based 36,323 35,673 39,349 43,227 46,866 50,488 41.5 % 71,996 97,355 35.2 %
Other operating expenses 36,942 33,608 33,751 35,963 37,752 37,207 10.7 % 70,551 74,960 6.2 %
Benefits and expenses 137,332 117,321 124,966 136,603 160,060 166,858 42.2 % 254,654 326,917 28.4 %
Income before income taxes $ 47,700 $ 46,859 $ 51,372 $ 56,713 $ 63,363 $ 71,154 51.8 % $ 94,559 $ 134,517 42.3 %
Corporate & Other Distributed Products
Revenues:
Direct premiums $ 6,074 $ 5,900 $ 6,333 $ 5,259 $ 5,713 $ 5,800 ) -1.7 % $ 11,974 $ 11,513 ) -3.9 %
Ceded premiums (1,593 ) (1,631 ) (1,712 ) (1,909 ) (1,423 ) (1,822 ) ) -11.7 % (3,224 ) (3,245 ) ) -0.7 %
Net premiums 4,480 4,270 4,621 3,350 4,290 3,978 ) -6.8 % 8,750 8,268 ) -5.5 %
Allocated net investment income 15,553 13,913 14,975 14,339 12,592 11,954 ) -14.1 % 29,466 24,546 ) -16.7 %
Commissions and fees:
Prepaid Legal Services 3,829 4,557 4,942 5,104 4,783 5,182 13.7 % 8,386 9,964 18.8 %
Auto and Homeowners Insurance 1,672 2,263 1,985 2,194 1,787 2,101 ) -7.1 % 3,935 3,888 ) -1.2 %
Mortgage loans 264 1,301 3,011 4,146 4,960 6,061 nm 1,565 11,021 nm
Other sales commissions 1,813 2,231 2,061 2,301 2,041 2,291 2.6 % 4,045 4,332 7.1 %
Other, net 954 865 922 977 836 1,040 20.2 % 1,820 1,876 3.1 %
Adjusted operating revenues 28,566 29,400 32,516 32,412 31,288 32,607 10.9 % 57,967 63,895 10.2 %
Benefits and expenses:
Benefits and claims 6,249 4,236 3,957 7,178 4,826 5,859 38.3 % 10,486 10,685 1.9 %
Amortization of DAC 166 346 295 251 246 264 ) -23.8 % 512 510 ) -0.5 %
Insurance commissions 357 343 371 286 299 306 ) -10.8 % 701 605 ) -13.6 %
Insurance expenses 1,544 1,447 1,309 1,347 1,391 1,327 ) -8.3 % 2,991 2,719 ) -9.1 %
Sales commissions 3,723 4,985 5,779 6,430 6,434 7,185 44.1 % 8,708 13,619 56.4 %
Interest expense 7,192 7,200 7,221 7,225 7,145 7,141 ) -0.8 % 14,392 14,285 ) -0.7 %
Other operating expenses 28,972 22,544 25,597 27,818 35,211 27,413 21.6 % 51,516 62,624 21.6 %
Benefits and expenses 48,203 41,102 44,529 50,535 55,551 49,495 20.4 % 89,305 105,047 17.6 %
Adjusted operating income before income taxes $ (19,637 ) $ (11,702 ) $ (12,013 ) $ (18,124 ) $ (24,263 ) $ (16,888 ) ) -44.3 % $ (31,339 ) $ (41,152 ) ) -31.3 %

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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8 of 16

Term Life Insurance - Financial Results and Analysis PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q2 YOY YTD
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(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 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 8.9 % $ 1,407,751 $ 1,531,014 8.8 %
Premiums ceded to IPO coinsurers (1) (260,076 ) (257,529 ) (254,938 ) (253,039 ) (249,944 ) (246,874 ) 4.1 % (517,605 ) (496,818 ) 4.0 %
Adjusted direct premiums (2) 436,488 453,659 475,335 492,520 506,570 527,626 16.3 % 890,147 1,034,196 16.2 %
Other ceded premiums (3) (125,156 ) (143,390 ) (137,066 ) (142,728 ) (144,606 ) (165,154 ) ) -15.2 % (268,546 ) (309,760 ) ) -15.3 %
Net premiums 311,332 310,269 338,269 349,792 361,964 362,472 16.8 % 621,601 724,436 16.5 %
Allocated net investment income 6,246 6,538 6,813 7,432 8,253 8,751 33.8 % 12,785 17,004 33.0 %
Other, net 10,168 11,426 12,717 11,768 11,810 12,315 7.8 % 21,594 24,125 11.7 %
Revenues 327,747 328,233 357,799 368,992 382,028 383,537 16.8 % 655,979 765,565 16.7 %
Benefits and expenses:
Benefits and claims 128,563 135,409 156,209 173,767 178,963 162,488 20.0 % 263,973 341,452 29.4 %
Amortization of DAC 65,840 52,730 45,529 52,109 62,584 52,235 ) -0.9 % 118,571 114,820 ) -3.2 %
Insurance commissions 3,286 2,884 5,946 5,477 4,869 4,785 65.9 % 6,169 9,654 56.5 %
Insurance expenses 47,165 42,306 44,800 48,199 47,375 47,252 11.7 % 89,472 94,627 5.8 %
Benefits and expenses 244,855 233,330 252,483 279,551 293,792 266,760 14.3 % 478,185 560,552 17.2 %
Income before income taxes $ 82,892 $ 94,903 $ 105,316 $ 89,440 $ 88,236 $ 116,778 23.0 % $ 177,795 $ 205,014 15.3 %
Total Term Life Insurance - Financial Analysis
Post-IPO direct premiums (4) $ 336,921 $ 352,353 $ 372,852 $ 388,303 $ 401,106 $ 420,865 19.4 % $ 689,273 $ 821,971 19.3 %
Pre-IPO direct premiums (5) 359,643 358,835 357,421 357,256 355,408 353,635 ) -1.4 % 718,478 709,043 ) -1.3 %
Total direct premiums $ 696,564 $ 711,188 $ 730,273 $ 745,559 $ 756,514 $ 774,500 8.9 % $ 1,407,751 $ 1,531,014 8.8 %
Premiums ceded to IPO coinsurers $ 260,076 $ 257,529 $ 254,938 $ 253,039 $ 249,944 $ 246,874 ) -4.1 % $ 517,605 $ 496,818 ) -4.0 %
% of Pre-IPO direct premiums 72.3 % 71.8 % 71.3 % 70.8 % 70.3 % 69.8 % nm nm 72.0 % 70.1 % nm nm
Benefits and claims, net (6) $ 253,719 $ 278,799 $ 293,275 $ 316,495 $ 323,569 $ 327,642 17.5 % $ 532,519 $ 651,211 22.3 %
% of adjusted direct premiums 58.1 % 61.5 % 61.7 % 64.3 % 63.9 % 62.1 % nm nm 59.8 % 63.0 % nm nm
DAC amortization & insurance commissions $ 69,126 $ 55,614 $ 51,474 $ 57,585 $ 67,454 $ 57,020 2.5 % $ 124,740 $ 124,474 ) -0.2 %
% of adjusted direct premiums 15.8 % 12.3 % 10.8 % 11.7 % 13.3 % 10.8 % nm nm 14.0 % 12.0 % nm nm
Insurance expenses, net (7) $ 36,997 $ 30,881 $ 32,083 $ 36,431 $ 35,565 $ 34,937 13.1 % $ 67,878 $ 70,502 3.9 %
% of adjusted direct premiums 8.5 % 6.8 % 6.7 % 7.4 % 7.0 % 6.6 % nm nm 7.6 % 6.8 % nm nm
Total Term Life income before income taxes $ 82,892 $ 94,903 $ 105,316 $ 89,440 $ 88,236 $ 116,778 23.0 % $ 177,795 $ 205,014 15.3 %
Term Life operating margin (8) 19.0 % 20.9 % 22.2 % 18.2 % 17.4 % 22.1 % nm nm 20.0 % 19.8 % 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.
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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 Q2 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 /#<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 1.5 % 130,522 134,907 3.4 %
10,599 12,250 13,138 12,119 10,833 10,112 ) -17.5 % 22,849 20,945 ) -8.3 %
(11,026 ) (8,188 ) (10,989 ) (13,518 ) (13,710 ) (10,101 ) ) -23.4 % (19,214 ) (23,811 ) ) -23.9 %
Life-insurance licensed sales force, end of period 130,095 134,157 136,306 134,907 132,030 132,041 ) -1.6 % 134,157 132,041 ) -1.6 %
Estimated annualized issued term life premium (mills) (1):
$ 61.5 $ 77.7 $ 86.0 $ 78.4 $ 74.5 $ 82.6 6.4 % $ 139.2 $ 157.1 12.9 %
15.0 17.8 17.9 18.1 18.0 20.3 14.1 % 32.8 38.4 16.8 %
Total estimated annualized issued term life premium $ 76.5 $ 95.5 $ 103.9 $ 96.5 $ 92.5 $ 103.0 7.8 % $ 172.0 $ 195.5 13.6 %
Issued term life policies 71,318 94,044 100,199 87,307 82,667 90,071 ) -4.2 % 165,362 172,738 4.5 %
Estimated average annualized issued term life premium per policy (1)(2) $ 863 $ 826 $ 858 $ 898 $ 901 $ 917 11.0 % $ 842 $ 910 8.0 %
Term life face amount in-force, beginning of period (mills) $ 808,262 $ 804,512 $ 821,998 $ 840,227 $ 858,818 $ 869,643 8.1 % $ 808,262 $ 858,818 6.3 %
23,221 27,754 30,104 28,357 26,643 29,981 8.0 % 50,975 56,624 11.1 %
(18,294 ) (14,315 ) (13,733 ) (14,506 ) (17,240 ) (14,706 ) ) -2.7 % (32,609 ) (31,946 ) 2.0 %
(8,676 ) 4,046 1,859 4,740 1,422 1,602 ) -60.4 % (4,630 ) 3,023 nm
Term life face amount in-force, end of period $ 804,512 $ 821,998 $ 840,227 $ 858,818 $ 869,643 $ 886,519 7.8 % $ 821,998 $ 886,519 7.8 %

All values are in US Dollars.

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

(2)     In whole dollars.

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

10 of 16

Investment and Savings Products - Financial Results and Financial Analysis PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q2 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 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 66.7 % $ 143,704 $ 202,828 41.1 %
Asset-based 81,395 78,146 86,695 93,669 101,241 108,490 38.8 % 159,540 209,731 31.5 %
Account-based 20,204 20,478 21,008 21,351 21,120 21,848 6.7 % 40,682 42,968 5.6 %
Other, net 2,542 2,745 3,034 2,949 2,949 2,958 7.8 % 5,287 5,907 11.7 %
Revenues 185,033 164,180 176,338 193,316 223,422 238,012 45.0 % 349,213 461,434 32.1 %
Benefits and expenses:
Amortization of DAC 4,305 100 1,667 982 3,275 1,786 nm 4,405 5,061 14.9 %
Insurance commissions 3,201 3,106 3,377 3,500 3,572 3,747 20.6 % 6,307 7,319 16.0 %
Sales commissions:
Sales-based 56,561 44,834 46,821 52,931 68,594 73,629 64.2 % 101,395 142,224 40.3 %
Asset-based 36,323 35,673 39,349 43,227 46,866 50,488 41.5 % 71,996 97,355 35.2 %
Other operating expenses 36,942 33,608 33,751 35,963 37,752 37,207 10.7 % 70,551 74,960 6.2 %
Benefits and expenses 137,332 117,321 124,966 136,603 160,060 166,858 42.2 % 254,654 326,917 28.4 %
Income before income taxes $ 47,700 $ 46,859 $ 51,372 $ 56,713 $ 63,363 $ 71,154 51.8 % $ 94,559 $ 134,517 42.3 %
Financial Analysis
Fees paid based on client asset values (1) $ 5,990 $ 5,712 $ 6,284 $ 6,772 $ 6,964 $ 7,535 31.9 % $ 11,702 $ 14,498 23.9 %
Fees paid based on fee-generating positions (2) 10,248 9,094 8,747 9,547 10,451 10,021 10.2 % 19,342 20,472 5.8 %
Other operating expenses 20,704 18,803 18,719 19,644 20,337 19,652 4.5 % 39,507 39,989 1.2 %
Total other operating expenses $ 36,942 $ 33,608 $ 33,751 $ 35,963 $ 37,752 $ 37,207 10.7 % $ 70,551 $ 74,960 6.2 %
Sales-based net revenue as % of revenue-generating sales (3) 0.00 % 0.00 % —
U.S. 1.34 % 1.33 % 1.27 % 1.31 % 1.29 % 1.28 % nm nm 1.33 % 1.28 % nm nm
Canada 1.06 % 0.87 % 0.93 % 0.95 % 1.05 % 0.96 % nm nm 0.99 % 1.01 % nm nm
Total 1.30 % 1.27 % 1.23 % 1.26 % 1.25 % 1.23 % nm nm 1.29 % 1.24 % nm nm
Asset-based net revenue as % of average asset values (4) 0.00 % 0.00 % —
U.S. 0.038 % 0.037 % 0.038 % 0.038 % 0.039 % 0.039 % nm nm 0.075 % 0.078 % nm nm
Canada 0.098 % 0.133 % 0.119 % 0.124 % 0.103 % 0.112 % nm nm 0.230 % 0.215 % nm nm
Total 0.047 % 0.052 % 0.050 % 0.052 % 0.049 % 0.050 % nm nm 0.099 % 0.099 % 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 nm nm $ 7.89 $ 7.85 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.
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(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.
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(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.
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(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 Q2 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 /#<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 76.2 % $ 1,679.4 $ 2,598.0 54.7 %
280.9 165.2 189.6 256.0 424.0 357.0 116.0 % 446.1 781.0 75.1 %
72.2 48.4 47.2 50.6 55.5 62.8 29.8 % 120.6 118.2 ) -1.9 %
600.6 440.5 421.7 529.3 627.1 767.6 74.3 % 1,041.0 1,394.7 34.0 %
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 78.7 % 3,287.1 4,891.9 48.8 %
246.2 200.1 223.0 230.7 330.1 381.8 90.8 % 446.3 711.8 59.5 %
124.8 73.9 85.3 57.3 154.9 135.0 82.6 % 198.7 290.0 45.9 %
Total product sales $ 2,245.7 $ 1,686.5 $ 1,841.0 $ 2,069.4 $ 2,853.5 $ 3,040.2 80.3 % $ 3,932.1 $ 5,893.7 49.9 %
$ 280.9 $ 165.2 $ 189.6 $ 256.0 $ 424.0 $ 357.0 116.0 % $ 446.1 $ 781.0 75.1 %
124.8 73.9 85.3 57.3 154.9 135.0 82.6 % 198.7 290.0 45.9 %
Total Canada product sales 405.7 239.2 274.9 313.3 579.0 492.0 105.7 % 644.8 1,071.0 66.1 %
Total U.S. product sales 1,840.0 1,447.3 1,566.1 1,756.1 2,274.5 2,548.2 76.1 % 3,287.3 4,822.7 46.7 %
Total product sales $ 2,245.7 $ 1,686.5 $ 1,841.0 $ 2,069.4 $ 2,853.5 $ 3,040.2 80.3 % $ 3,932.1 $ 5,893.7 49.9 %
Client asset values, beginning of period (mills) $ 70,537 $ 59,036 $ 68,224 $ 72,606 $ 81,533 $ 85,888 45.5 % $ 70,537 $ 81,533 15.6 %
2,246 1,686 1,841 2,069 2,853 3,040 80.3 % 3,932 5,894 49.9 %
(1,703 ) (1,074 ) (1,333 ) (1,427 ) (1,759 ) (1,826 ) ) -70.1 % (2,777 ) (3,585 ) ) -29.1 %
Net flows 543 613 508 642 1,095 1,214 98.1 % 1,155 2,308 nm
(978 ) 404 205 539 172 200 ) -50.4 % (575 ) 372 nm
(11,065 ) 8,171 3,669 7,745 3,088 4,433 ) -45.7 % (2,894 ) 7,521 nm
Client asset values, end of period $ 59,036 $ 68,224 $ 72,606 $ 81,533 $ 85,888 $ 91,735 34.5 % $ 68,224 $ 91,735 34.5 %
3.1 % 4.2 % 3.0 % 3.5 % 5.4 % 5.7 % % nm 3.3 % 5.7 % % nm
Average client asset values (mills)
$ 32,693 $ 31,586 $ 35,204 $ 37,562 $ 41,161 $ 44,398 40.6 % $ 32,140 $ 42,779 33.1 %
7,950 7,573 8,525 9,186 10,268 11,256 48.6 % 7,761 10,762 38.7 %
3,905 3,871 4,325 4,703 5,295 5,915 52.8 % 3,888 5,605 44.2 %
2,389 2,427 2,446 2,469 2,495 2,541 4.7 % 2,408 2,518 4.6 %
17,292 16,890 18,551 19,634 21,291 22,554 33.5 % 17,091 21,922 28.3 %
2,366 2,291 2,461 2,536 2,622 2,713 18.4 % 2,328 2,667 14.6 %
Total $ 66,595 $ 64,638 $ 71,512 $ 76,090 $ 83,131 $ 89,378 38.3 % $ 65,617 $ 86,255 31.5 %
$ 7,950 $ 7,573 $ 8,525 $ 9,186 $ 10,268 $ 11,256 48.6 % $ 7,761 $ 10,762 38.7 %
2,366 2,291 2,461 2,536 2,622 2,713 18.4 % 2,328 2,667 14.6 %
Total Canada average client assets 10,316 9,864 10,986 11,722 12,890 13,969 41.6 % 10,090 13,430 33.1 %
Total U.S. average client assets 56,279 54,775 60,526 64,368 70,241 75,409 37.7 % 55,527 72,825 31.2 %
Total average client assets $ 66,595 $ 64,638 $ 71,512 $ 76,090 $ 83,131 $ 89,378 38.3 % $ 65,617 $ 86,255 31.5 %
Average number of fee-generating positions (thous) (3)
2,031 2,048 2,072 2,091 2,115 2,159 5.4 % 2,039 2,137 4.8 %
658 671 685 697 714 741 10.4 % 665 727 9.5 %
Total 2,689 2,718 2,757 2,788 2,830 2,899 6.6 % 2,704 2,864 5.9 %

All values are in US Dollars.

(1) Asset value outflows - include (a) redemptions of assets, (b) sales charges on the inflow sales figures, and (c) the net flow of money market funds sold and redeemed on the company's recordkeeping platform.  The redemptions of assets must be estimated for approximately 4% of account values as these figures are not readily available.  Actual redemptions as a percentage of account values for similar known account values are used to estimate the unknown redemption values.
(2) Change in market value, net - market value fluctuations net of fees and expenses.
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(3) Fee generating positions - mutual fund positions for which we receive recordkeeping fees. An individual client account may include multiple mutual fund positions. We may also receive fees earned for custodial services that we provide to clients with retirement plan accounts that hold positions in these mutual funds.
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Investment Portfolio - Summary of Holdings PRIMERICA, INC.<br><br><br>Financial Supplement
As of or for the period ended June 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 $ 814,916 $ 814,916 $ - 24.0 % 24.9 %
Fixed Income:
Treasury 20,513 19,913 600 0.6 % 0.6 % 1.87 % AAA
Government 247,364 234,937 12,427 7.3 % 7.2 % 3.00 % AA-
Tax-Exempt Municipal 45,810 43,066 2,743 1.3 % 1.3 % 2.75 % AA
Public Corporate 1,529,370 1,444,661 84,709 45.0 % 44.1 % 3.45 % BBB+
Mortgage Backed 269,295 261,600 7,695 7.9 % 8.0 % 2.67 % AAA
Asset Backed 88,876 87,538 1,337 2.6 % 2.7 % 2.81 % A+
CMBS 156,266 150,520 5,746 4.6 % 4.6 % 2.97 % AA-
Private Placements 184,640 177,071 7,569 5.4 % 5.4 % 4.28 % BBB
Redeemable Preferred 5,949 5,447 502 0.2 % 0.2 % 5.47 % BBB
Total Fixed Income 2,548,083 2,424,755 123,329 74.9 % 74.0 % 3.31 % A-
Equities and Other:
Perpetual Preferred 13,577 13,577 - 0.4 % 0.4 %
Common Stock 17,926 17,926 - 0.5 % 0.5 %
Mutual Fund 6,103 6,103 - 0.2 % 0.2 %
Derivatives 8 8 - 0.0 % 0.0 %
Other - - - 0.0 % 0.0 %
Total Equities 37,613 37,613 - 1.1 % 1.1 %
Total Invested Assets $ 3,400,612 $ 3,277,284 $ 123,329 100.0 % 100.0 %
Public Corporate Portfolio by Sector
Consumer Non Cyclical $ 196,985 $ 187,679 $ 9,306 12.9 % 13.0 %
Insurance 175,223 166,013 9,210 11.5 % 11.5 %
Energy 161,945 150,775 11,170 10.6 % 10.4 %
REITs 141,108 132,352 8,755 9.2 % 9.2 %
Consumer Cyclical 124,977 118,186 6,791 8.2 % 8.2 %
Banking 122,119 116,194 5,925 8.0 % 8.0 %
Technology 114,202 107,410 6,792 7.5 % 7.4 %
Electric 95,148 90,426 4,722 6.2 % 6.3 %
Capital Goods 85,013 81,452 3,561 5.6 % 5.6 %
Basic Industry 79,029 74,531 4,498 5.2 % 5.2 %
Transportation 65,193 62,347 2,846 4.3 % 4.3 %
Communications 57,186 52,580 4,606 3.7 % 3.6 %
Brokerage 51,693 47,977 3,716 3.4 % 3.3 %
Finance Companies 29,399 27,705 1,694 1.9 % 1.9 %
Financial Other 10,676 10,348 327 0.7 % 0.7 %
Industrial Other 8,041 7,657 385 0.5 % 0.5 %
Utility Other 5,554 5,385 169 0.4 % 0.4 %
Natural Gas 3,581 3,319 262 0.2 % 0.2 %
Owned No Guarantee 2,298 2,325 (27 ) 0.2 % 0.2 %
Total Corporate portfolio $ 1,529,370 $ 1,444,661 $ 84,709 100.0 % 100.0 %
Fixed-Maturity Securities - Effective Maturity
Effective maturity
< 1 Yr. $ 247,368 $ 244,199 $ 3,169 9.7 % 10.1 % 2.99 %
1-2 Yrs. 325,817 313,010 12,807 12.8 % 12.9 % 3.47 %
2-5 Yrs. 839,731 787,988 51,743 33.0 % 32.5 % 3.53 %
5-10 Yrs. 852,105 812,923 39,182 33.4 % 33.5 % 3.09 %
> 10 Yrs. 283,062 266,636 16,427 11.1 % 11.0 % 3.43 %
Total Fixed Income $ 2,548,083 $ 2,424,755 $ 123,329 100.0 % 100.0 % 3.31 %
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.

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Investment Portfolio - Quality Ratings As of June 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 $ 399,729 16.5 %
AA 281,776 11.6 %
A 536,265 22.1 %
BBB 1,103,390 45.5 %
Below Investment Grade 100,104 4.1 %
NA 3,490 0.1 %
Total Fixed Income $ 2,424,755 100.0 %
Amortized  Cost % of Total Amortized  Cost % of Total
Public Corporate asset class: Private Placement asset class:
Rating Rating
AAA $ 11,843 0.8 % AAA $ - —
AA 77,705 5.4 % AA 5,519 3.1 %
A 329,222 22.8 % A 21,309 12.0 %
BBB 941,380 65.2 % BBB 137,454 77.6 %
Below Investment Grade 83,563 5.8 % Below Investment Grade 12,790 7.2 %
NA 949 0.1 % NA - —
Total Corporate $ 1,444,661 100.0 % Total Private $ 177,071 100.0 %
CMBS asset class: Mortgage-Backed asset class:
Rating Rating
AAA $ 80,451 53.4 % AAA $ 232,714 89.0 %
AA 2,946 2.0 % AA 28,514 10.9 %
A 67,053 44.5 % A 247 0.1 %
BBB - — BBB - —
Below Investment Grade 71 0.0 % Below Investment Grade 92 0.0 %
NA - — NA 34 0.0 %
Total CMBS $ 150,520 100.0 % Total Mortgage-Backed $ 261,600 100.0 %
Asset-Backed asset class: Treasury & Government asset classes:
Rating Rating
AAA $ 22,313 25.5 % AAA $ 50,446 19.8 %
AA 5,552 6.3 % AA 128,997 50.6 %
A 53,113 60.7 % A 60,196 23.6 %
BBB 3,363 3.8 % BBB 12,314 4.8 %
Below Investment Grade 691 0.8 % Below Investment Grade 2,897 1.1 %
NA 2,507 2.9 % NA 0 0.0 %
Total Asset-Backed $ 87,538 100.0 % Total Treasury & Government $ 254,850 100.0 %
NAIC Designations
1 $ 1,027,529 48.2 %
2 1,012,969 46.8 %
3 96,617 4.2 %
4 12,695 0.8 %
5 - —
6 698 0.0 %
U.S. Insurer Fixed Income (2) 2,150,509 100.0 %
Other (3) 311,859
Cash and cash equivalents 814,916
Total Invested Assets $ 3,277,284
(1) Ratings method for split ratings: If by 2 NRSROs, use lower of the two; if by 3 or more NRSROs, use second lowest.
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(2) NAIC ratings for our U.S. insurance companies' fixed income portfolios.
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(3) Other consists of assets held by our non-life companies, Canadian insurance company, and unrated equities.
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Note:  Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

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Investment Portfolio - Supplemental Data and Trends PRIMERICA, INC.<br><br><br>Financial Supplement
YOY Q2
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(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 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 ) -0.3%
Fixed-maturity securities (held-to-maturity) 13,472 14,074 14,704 15,223 15,146 15,495 10.1%
Equity Securities 451 461 433 406 391 411 ) -10.8%
Deposit asset underlying 10% reinsurance treaty 1,830 1,394 1,694 1,330 1,368 1,238 ) -11.2%
Deposit asset - Mark to Market (6,379 ) 2,259 1,165 960 (793 ) (170 ) ) -107.5%
Policy loans and other invested assets 189 541 242 272 231 98 ) -81.9%
Cash & cash equivalents 843 143 114 103 119 156 9.4%
Total investment income 31,190 39,085 39,234 39,219 36,483 37,383 ) -4.4%
Investment expenses 2,298 2,300 1,577 1,265 1,284 1,353 ) -41.2%
Interest Expense on Surplus Note 13,472 14,074 14,704 15,223 15,146 15,495 10.1%
Net investment income $ 15,420 $ 22,710 $ 22,953 $ 22,731 $ 20,052 $ 20,535 ) -9.6%
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 Q2
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 % Pt<br>Change
Fixed Income Portfolio Quality Ratings
Rating
AAA 22.9 % 21.5 % 19.6 % 18.7 % 16.6 % 16.5 % %
AA 12.1 % 11.6 % 12.8 % 12.7 % 12.2 % 11.6 % %
A 22.9 % 22.3 % 21.8 % 22.3 % 23.0 % 22.1 % %
BBB 38.9 % 40.4 % 42.0 % 42.3 % 44.0 % 45.5 % %
Below Investment Grade 3.1 % 4.0 % 3.8 % 3.9 % 4.1 % 4.2 % %
NA 0.1 % 0.1 % 0.1 % 0.1 % 0.1 % 0.1 % %
Total Fixed Income 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Average rating by amortized cost A A A A A- A-

All values are in US Dollars.

As of June 30, 2021 As of June 30, 2021 As of June 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 $ 16,105 $ 15,604 AAA Canada $ 80,769 $ 74,467 AAA $ 2,011 $ 2,001
2 ConocoPhillips 12,524 11,056 A- Australia 32,267 30,481 AA 9,923 9,634
3 Enbridge Inc 12,196 11,747 BBB+ United Kingdom 31,558 30,159 A 9,767 9,380
4 Province of Quebec Canada 11,588 10,530 AA- Cayman Islands 14,618 14,509 BBB 10,850 10,323
5 Morgan Stanley 11,582 11,071 A+ France 12,594 12,149 Below Investment Grade 2,962 2,897
6 Province of British Columbia Canada 10,475 10,181 AAA Ireland 11,464 11,943 NA — —
7 Capital One Financial Corp 10,337 9,886 BBB Japan 10,856 10,322 Total $ 35,513 $ 34,235
8 Province of Alberta Canada 10,178 9,654 A Mexico 10,559 10,153
9 Wells Fargo & Co 9,466 9,172 A- Bermuda 9,739 9,170
10 Province of Ontario Canada 9,158 8,714 A+ Netherlands 9,186 7,946 Non-Government Investments (1)
11 AbbVie Inc 8,883 8,704 BBB+ Germany 8,981 8,790
12 Entergy Corp 8,741 8,446 BBB+ Switzerland 7,757 7,698 AAA $ 4,694 $ 4,684
13 General Motors Co 8,552 7,788 BBB Brazil 4,646 4,548 AA 11,648 11,576
14 TC Energy Corp 8,142 7,658 BBB+ Israel 3,983 3,551 A 58,700 55,785
15 Discovery Inc 8,136 6,973 BBB- Luxembourg 3,685 3,500 BBB 161,666 151,368
16 Province of Newfoundland and Labrador 8,086 7,459 A Emerging Markets  (2) 14,863 14,396 Below Investment Grade 14,443 14,397
17 City of Toronto Canada 8,034 7,599 AA All Other 20,138 19,263 NA 1,000 1,000
18 CVS Health Corp 8,027 7,938 BBB Total $ 287,663 $ 273,045 Total $ 252,150 $ 238,810
19 CI Financial Corp 7,999 7,864 BBB
20 Truist Financial Corp 7,983 7,497 A-
21 Simon Property Group Inc 7,977 7,362 A
22 City of Montreal Canada 7,903 7,106 AA-
23 General Mills Inc 7,787 7,353 BBB
24 City of Chicago IL 7,786 7,390 A
25 Duke Energy Corp 7,632 7,505 BBB+
Total $ 235,278 $ 222,257
% of total fixed income portfolio 6.9 % 6.8 %
(1) US$ denominated investments in issuers outside of the United States based on country of risk.
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(2) Emerging markets is as defined by MSCI, Inc. which include Chile, India, Peru, Poland and South Africa.
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Note:  Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

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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
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Recruits 262,732 303,867 290,886 282,207 400,345 84,762 133,123 101,861 80,599 94,633 89,285
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
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
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 )
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
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
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
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
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
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 )
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
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
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
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
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
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
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
Closed U.S. Mortgage Volume (brokered) $ — $ — $ — $ 31.1 $ 442.5 $ 12.9 $ 65.8 $ 160.0 $ 203.8 $ 262.3 $ 298.6

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