Primerica, Inc. - FORM 8-K - EX-99.2 - SUPPLEMENTAL FINANCIAL INFORMATION

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8-K - FORM 8-K - Primerica, Inc.	d8k.htm
EX-99.1 - PRESS RELEASE - Primerica, Inc.	dex991.htm

Exhibit 99.2

LOGO

Supplemental Financial Information

Third Quarter 2010


Table of Contents		PRIMERICA, INC.
		Financial Supplement


		Page

Preface, definition of Non-GAAP financial measures		3

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 Non-GAAP to GAAP financial measures		7

Segment operating results		8

Term life insurance segment - financial results, key statistics, and financial analysis		9-10

Investment and savings product segment - financial results, key statistics, and financial analysis		11

Investment portfolio		12-15

Five-year historical key statistics		16

This document may contain forward-looking statements and information. Additional information on factors that could cause results to differ materially from any forward-looking statements or information in this document is available in our Registration Statement on Form S-1, originally filed with the U.S. Securities and Exchange Commission (SEC) on November 5, 2009, as amended through March 31, 2010 and as updated in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2010.

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Preface		PRIMERICA, INC.
		Financial Supplement

THIRD QUARTER 2010

This document is a financial supplement to our third quarter 2010 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 two different purposes, as follows:

•

Operating adjustments exclude the impact of realized investment gains and losses, the expense associated with equity awards granted in connection with our initial public offering (“IPO”), and items believed by management not to be indicative of ongoing operations. For periods ending on or before March 31, 2010, operating adjustments reflect the impact of our reinsurance and reorganization activities as if they had occurred at the beginning of the respective calendar year.

•

Adjusted when used in describing stockholders’ equity refers to the removal of the impact of net unrealized gains and losses on invested assets.

Management utilizes certain 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.

The following transactions were executed in conjunction with our IPO in March and April 2010 (the “IPO-related Transactions”) and are included in our actual and/or operating results as appropriate.

IPO-related Transactions executed in first quarter 2010:

•

On March 31, 2010, we reinsured between 80% and 90% of our business that was in-force at year-end 2009 to various affiliates of Citigroup Inc. (“Citi”) and declared extraordinary dividends to Citi.

IPO-related Transactions executed in second quarter 2010:

•

On April 1, 2010, Citi contributed the legal entities comprising our business to us. We issued approximately 75.0 million shares of common stock and warrants exercisable for approximately 4.1 million additional shares of our common stock to Citi. Additionally, we issued a $300.0 million note to Citi, due March 31, 2015 and bearing interest at 5.5% annually.

•

On April 1, 2010, our common stock began trading under the ticker symbol “PRI” on the New York Stock Exchange.

•

On April 1, 2010, Citi sold approximately 24.6 million shares of our common stock (after giving effect to the over-allotment option) to the public in the IPO.

•

On April 1, 2010, Citi contributed approximately 5.0 million shares back to us, which we granted in the form of equity awards to certain of our management and sales force leaders. Of these, approximately 200,000 shares were granted to replace unvested Citi awards.

•

On April 15, 2010, Citi sold approximately 16.4 million shares and the warrants to purchase approximately 4.1 million additional shares of our common stock to private equity funds managed by Warburg Pincus LLC (“Warburg Pincus”) for a purchase price of $230.0 million (the “private sale”). Following the IPO and the private sale, certain historical Citi equity awards immediately vested.

•

Effective as of April 1, 2010, we made elections under Section 338(h)(10) of the Internal Revenue Code, which resulted in changes to our deferred tax balances and reduced stockholders’ equity.

•

Prior to April 8, 2010, our federal income tax return was consolidated into Citi’s federal income tax return. In anticipation of our corporate reorganization, we entered into a tax separation agreement with Citi and prepaid our estimated tax liability through March 31, 2010. In accordance with the tax separation agreement, Citi will indemnify the Company and its subsidiaries against any federal, state or local income tax liability for any taxable period ending on or before April 7, 2010, the closing date of the IPO. Our advance tax payments paid to Citi exceeded our actual tax liabilities. As a result, we recorded the overpayment as a return of capital resulting in a reduction of tax assets and a reduction of stockholders’ equity.

Certain items throughout this supplement may not add due to rounding. 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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Quarterly Balance Sheets and Reconciliation of Balance Sheet Non-GAAP to GAAP Financial Measures		PRIMERICA, INC.
		Financial Supplement


*(Dollars in thousands)*	Mar 31, 2009			Jun 30, 2009			Sep 30, 2009			Dec 31, 2009			(2) Mar 31, 2010			(3) Jun 30, 2010			Sep 30, 2010
Balance Sheets
Assets:
Investments and cash	$	5,866,133		$	6,360,019		$	6,888,696		$	7,096,708		$	3,002,900		$	2,275,564		$	2,284,127
Due from reinsurers		833,696			837,726			849,665			867,242			3,595,239			3,603,532			3,668,585
Deferred policy acquisition costs		2,718,724			2,757,143			2,797,269			2,789,905			702,429			745,322			798,335
Income taxes		—			—			—			—			56,114			—			—
Other assets		409,095			406,318			402,836			380,584			394,542			393,893			401,752
Separate account assets		1,536,367			1,766,928			2,033,119			2,093,342			2,222,267			2,098,936			2,301,896

Total assets	$	11,364,015		$	12,128,134		$	12,971,585		$	13,227,781		$	9,973,491		$	9,117,247		$	9,454,695

Liabilities:
Future policy benefits	$	4,038,781		$	4,100,628		$	4,161,925		$	4,197,454		$	4,248,277		$	4,286,258		$	4,349,375
Other policy liabilities		570,327			574,991			597,617			604,343			630,294			608,307			609,047
Income taxes		647,037			740,985			873,367			890,617			—			129,776			127,732
Other liabilities		335,639			358,927			374,251			498,252			1,125,954			376,374			370,331
Note payable		—			—			—			—			—			300,000			300,000
Separate account liabilities		1,536,367			1,766,928			2,033,119			2,093,342			2,222,267			2,098,936			2,301,896

Total liabilities		7,128,151			7,542,459			8,040,279			8,284,008			8,226,792			7,799,651			8,058,381

Stockholders’ equity:
Common stock (1)		—			—			—			—			—			727			727
Paid-in capital		1,086,861			1,095,756			1,097,843			1,124,096			1,312,072			870,706			882,676
Retained earnings		3,447,196			3,565,166			3,683,697			3,648,801			300,531			304,075			342,920
Treasury stock		—			—			—			—			—			—			—
Accumulated other comprehensive income (loss), net:
Net unrealized investment gains (losses) not other-than-temporarily impaired		(268,721	)		(67,583	)		134,720			146,105			85,265			97,505			120,949
Net unrealized investment losses other-than-temporarily impaired		(17,174	)		(16,521	)		(17,966	)		(16,120	)		(4,245	)		(3,703	)		(2,883	)
Cumulative translation adjustment		(12,298	)		8,857			33,012			40,891			53,076			48,286			51,925

Total stockholders’ equity		4,235,864			4,585,675			4,931,306			4,943,773			1,746,699			1,317,596			1,396,314

Total liabilities and stockholders’ equity	$	11,364,015		$	12,128,134		$	12,971,585		$	13,227,781		$	9,973,491		$	9,117,247		$	9,454,695


Reconciliation of Adjusted Stockholders’ Equity to Total Stockholders’ Equity
Adjusted stockholders’ equity	$	4,521,759		$	4,669,779		$	4,814,552		$	4,813,788		$	1,665,679		$	1,223,794		$	1,278,248
Reconciling items:
Net unrealized investment gains (losses) not other-than-temporarily impaired		(268,721	)		(67,583	)		134,720			146,105			85,265			97,505			120,949
Net unrealized investment losses other-than-temporarily impaired		(17,174	)		(16,521	)		(17,966	)		(16,120	)		(4,245	)		(3,703	)		(2,883	)

Total reconciling items		(285,895	)		(84,104	)		116,754			129,985			81,020			93,802			118,066

Total stockholders’ equity	$	4,235,864		$	4,585,675		$	4,931,306		$	4,943,773		$	1,746,699		$	1,317,596		$	1,396,314


Deferred Policy Acquisition Costs Rollforward
Balance, beginning of period	$	2,727,422		$	2,718,724		$	2,757,143		$	2,797,269		$	2,789,905		$	702,429		$	745,322
General expenses deferred		13,416			14,563			21,006			15,552			16,095			15,061			14,876
Commission costs deferred		79,506			87,314			83,228			76,496			77,208			56,831			57,232
Amortization of deferred policy acquisition costs		(94,814	)		(86,234	)		(88,736	)		(111,506	)		(91,756	)		(22,899	)		(23,844	)
Transferred to reinsurers		—			—			—			—			(2,099,941	)		—			—
Foreign currency impact and other, net		(6,806	)		22,777			24,629			12,094			10,918			(6,100	)		4,750

Balance, end of period	$	2,718,724		$	2,757,143		$	2,797,269		$	2,789,905		$	702,429		$	745,322		$	798,335

(1)	Common stock reflects $.01 par value. Outstanding common shares exclude restricted stock units.

(2)

The balance sheet as of March 31, 2010 reflects the impact of the Citi reinsurance transactions executed on March 31, 2010. The Citi reinsurance transactions were given retroactive effect to January 1, 2010. As a result, the first quarter 2010 balance sheet includes a return of capital to Citi equally offsetting the income attributable to the underlying policies earned between January 1, 2010 and March 31, 2010. The first quarter 2010 balance sheet also reflects the extraordinary dividends declared on March 31, 2010.

(3)

The balance sheet as of June 30, 2010 reflects the issuance of the Citi note, reductions to stockholders’ equity and corresponding changes in deferred tax balances as a result of the 338(h)(10) elections, and a reduction in stockholders’ equity as a result of reflecting our overpayment of estimated taxes to Citi as a return of capital.

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Financial Results and Other Statistical Data		PRIMERICA, INC.
		Financial Supplement

(Dollars in thousands, except per-share data)

Q1
2009

Q2
2009

Q3
2009

Q4
2009

Q1
2010

Q2
2010

Q3
2010

Earnings per Share

Basic earnings per share:

Weighted average common shares and fully vested equity awards

71,843,588

72,259,352

Net income

22,008

39,595

Less income attributable to unvested participating securities

(928

)

(1,540

)

Net income used in computing basic EPS

21,080

38,055

Basic earnings per share

0.29

0.53

Net operating income

37,199

40,913

Less operating income attributable to unvested participating securities

(1,569

)

(1,591

)

Net operating income used in computing basic operating EPS

35,631

39,322

Basic net operating income per share

0.50

0.54

Diluted earnings per share:

Weighted average common shares and fully vested equity awards

71,843,588

72,259,352

Diluted impact of warrants

890,777

660,066

Shares used to calculate diluted EPS

72,734,365

72,919,418

Net income

22,008

39,595

Less income attributable to unvested participating securities

(917

)

(1,527

)

Net income used in computing diluted EPS

21,091

38,068

Diluted earnings per share

0.29

0.52

Net operating income

37,199

40,913

Less operating income attributable to unvested participating securities

(1,550

)

(1,578

)

Net operating income used in computing diluted operating EPS

35,649

39,335

Diluted net operating income per share

0.49

0.54

In April 2010, Primerica issued shares, warrants, and equity awards to complete the transactions related to our corporate reorganization. Both the vested and unvested equity awards maintain nonforfeitable dividend rights that result in dividend payment obligations on a one-to-one ratio with common shares for any future dividend declarations. These awards are deemed participating securities for calculating EPS.

As a result of issuing equity awards that are deemed participating securities, we calculate EPS using the two-class method. Under the two-class method, we allocate earnings to common shares and to fully vested equity awards. Earnings attributable to unvested equity awards, along with the corresponding share counts, are excluded from EPS reflected on our consolidated statements of income. In calculating basic EPS, we deduct any dividends on and undistributed earnings allocated to unvested equity awards from net income and then divide the result by the weighted average number of common shares and fully vested equity awards outstanding for the period.

We determine the potential dilutive effect of warrants on EPS using the treasury-stock method. Under this method, we utilize the exercise price to determine the amount of cash that would be available to repurchase shares if the warrants were exercised. We then use the average market price of our common shares during the reporting period to determine how many shares we could repurchase with the cash raised from the exercise. The net incremental share count issued represents the potential dilutive securities. We then reallocate earnings to common shares and fully vested equity awards incorporating the increased, fully diluted share count to determine diluted EPS.

Q1
2009

Q2
2009

Q3
2009

Q4
2009

Q1
2010

Q2
2010

Q3
2010

Annualized Return on Equity

Average stockholders’ equity

1,296,220

1,356,955

Average adjusted stockholders’ equity

1,208,809

1,251,021

Net income return on stockholders’ equity

6.8

11.7

Net income return on adjusted stockholders’ equity

7.3

12.7

Net operating income return on adjusted stockholders’ equity

12.3

13.1

Capital Structure

Debt-to-capital (1)

18.5

17.7

Cash and invested assets to stockholders’ equity

1.7

1.6

Cash and invested assets to adjusted stockholders’ equity

1.9

1.8

Share count, end of period (2)

72,729,617

72,727,173

Adjusted stockholders’ equity per share

16.83

17.58

Financial Strength Ratings

Primerica Life Insurance Company:

S&P

AA-

A.M. Best

A+

Fitch

A+

(1)	Capital in the debt-to-capital ratio includes stockholders’ equity and the note payable.

(2)

Share count reflects outstanding common shares, including restricted shares, but excludes restricted stock units (RSUs). The RSUs will deliver common shares in the future as the restrictions lift. The shares underlying these RSUs were contributed by Citi concurrent with our IPO and were subsequently retired.

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Statements of Income		PRIMERICA, INC.
		Financial Supplement


*(Dollars in thousands)*	Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010			(4) Q2 2010			(4) Q3 2010
Statement of Income
Revenues:
Direct premiums	$	516,647		$	529,004		$	531,713		$	535,417		$	537,845		$	547,455		$	547,444
Ceded premiums		(137,609	)		(158,401	)		(154,725	)		(160,019	)		(148,119	)		(447,213	)		(437,054	)

Net premiums		379,038			370,603			376,987			375,399			389,726			100,242			110,390
Net investment income		82,385			89,755			88,736			90,450			82,576			27,991			27,855
Commissions and fees:
Sales-based (1)		28,203			29,451			28,672			32,472			36,363			36,301			32,941
Asset-based (2)		27,555			29,718			33,344			36,964			38,014			39,445			37,602
Account-based (3)		11,089			10,784			10,717			10,657			10,208			10,317			10,620
Other commissions and fees		12,870			12,737			11,546			9,208			7,105			7,162			8,574
Realized investment (losses) gains		(11,259	)		(9,003	)		(11,212	)		9,503			31,057			374			1,015
Other, net		12,955			13,542			12,586			13,948			11,893			12,466			12,239

Total revenues		542,837			547,587			551,376			578,602			606,942			234,299			241,236

Benefits and expenses:
Benefits and claims		145,749			151,444			154,631			148,448			170,735			45,124			49,811
Amortization of DAC		94,814			86,234			88,736			111,506			91,756			22,899			23,844
Insurance commissions		14,620			6,396			6,384			6,988			6,371			4,233			5,100
Insurance expenses		40,088			36,203			39,480			32,989			37,529			10,083			11,999
Sales commissions:
Sales-based (1)		21,106			21,555			20,780			23,470			26,203			25,998			23,474
Asset-based (2)		9,430			9,533			10,883			12,157			12,715			12,911			12,232
Other sales commissions		9,653			9,301			8,513			6,374			4,963			4,603			6,558
Interest expense		—			—			—			—			—			6,928			6,968
Other operating expenses		32,601			28,587			34,092			37,698			36,268			65,183			39,371

Total benefits and expenses		368,062			349,253			363,502			379,630			386,541			197,961			179,357

Income before income taxes		174,775			198,334			187,875			198,972			220,402			36,338			61,879
Income taxes		62,218			66,214			64,044			72,890			77,116			14,330			22,284

Net income	$	112,557		$	132,120		$	123,831		$	126,082		$	143,286		$	22,008		$	39,595


Income Before Income Taxes by Segment
Term Life	$	162,150		$	171,865		$	168,605		$	156,391		$	160,367		$	44,095		$	42,582
Investment & Savings Products		20,371			20,717			26,221			26,096			25,447			26,735			26,578
Corporate & Other Distributed Products		(7,746	)		5,751			(6,951	)		16,485			34,587			(34,492	)		(7,281	)

Income before income taxes	$	174,775		$	198,334		$	187,875		$	198,972		$	220,402		$	36,338		$	61,879

(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)

Reflects the full effect of the reinsurance and reorganization transactions we executed in connection with our IPO. As such, ceded premiums, net investment income, benefits and claims, amortization of DAC, insurance expenses, interest expense, and other operating expenses reflect the impact of the various Citi reinsurance agreements, dividends, the note payable to Citi, and the equity grants made in connection with our IPO.

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Reconciliation of Statement of Income Non-GAAP to GAAP Financial Measures			PRIMERICA, INC.
			Financial Supplement


*(Dollars in thousands)*	Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010			Q2 2010			Q3 2010			YOY Q3												YOY YTD
*(Dollars in thousands)*	Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010			Q2 2010			Q3 2010			$ Change			% Change			YTD 2009			YTD 2010			$ Change			% Change
Reconciliation from Operating Revenues to Total Revenues
Operating revenues	$	211,734		$	226,783		$	236,734		$	250,103		$	224,822		$	233,925		$	240,221		$	3,487			1.5	%	$	675,252		$	698,968		$	23,716			3.5	%
Operating revenues reconciling items:
Realized investment gains/losses		(11,259	)		(9,003	)		(11,212	)		9,503			31,057			374			1,015			nm			nm			(31,473	)		32,446			nm			nm
Ceded premiums - ceded to Citi reinsurers		287,755			270,259			266,990			259,032			296,328			—			—			nm			nm			825,004			296,328			nm			nm
Pro rata net investment income - assets transferred to Citi reinsurers		54,607			59,547			58,864			59,963			54,735			—			—			nm			nm			173,017			54,735			nm			nm
Other income adjustment to Term Life Insurance segment (1)		—			(1,379	)		1,379			—			—			—			—			nm			nm			—			—			nm			nm
Other income adjustment to Corporate & Other segment (1)		—			1,379			(1,379	)		—			—			—			—			nm			nm			—			—			nm			nm

Total operating revenues reconciling items		331,103			320,803			314,642			328,498			382,121			374			1,015			nm			nm			966,548			383,510			nm			nm

Total revenues	$	542,837		$	547,587		$	551,376		$	578,602		$	606,942		$	234,299		$	241,236		$	(310,140	)		-56.2	%	$	1,641,800		$	1,082,477		$	(559,323	)		-34.1	%


Reconciliation from Operating Income Before Income Taxes to Income Before Income Taxes
Operating income before income taxes	$	45,179		$	68,219		$	62,579		$	67,293		$	58,689		$	61,421		$	63,940		$	1,361			2.2	%	$	175,977		$	184,049		$	8,072			4.6	%
Operating income before income taxes reconciling items:
Realized investment gains/losses		(11,259	)		(9,003	)		(11,212	)		9,503			31,057			374			1,015			nm			nm			(31,473	)		32,446			nm			nm
Initial & accelerated management / field grant expense		—			—			—			—			—			(25,457	)		(3,076	)		nm			nm			—			(28,533	)		nm			nm
Ceded premiums - ceded to Citi reinsurers		287,755			270,259			266,990			259,032			296,328			—			—			nm			nm			825,004			296,328			nm			nm
Pro rata net investment income - assets transferred to Citi reinsurers		54,607			59,547			58,864			59,963			54,735			—			—			nm			nm			173,017			54,735			nm			nm
Benefits and claims - ceded to Citi reinsurers		(109,112	)		(108,383	)		(107,166	)		(99,325	)		(128,204	)		—			—			nm			nm			(324,661	)		(128,204	)		nm			nm
Amortization of DAC - ceded to Citi reinsurers		(73,073	)		(63,860	)		(63,631	)		(79,167	)		(71,389	)		—			—			nm			nm			(200,564	)		(71,389	)		nm			nm
Insurance commissions - expense allowance received from Citi reinsurers		(1,180	)		(1,409	)		(1,450	)		(1,484	)		(1,669	)		—			—			nm			nm			(4,039	)		(1,669	)		nm			nm
Insurance expenses - expense allowance received from Citi reinsurers		(24,864	)		(23,862	)		(23,756	)		(24,133	)		(26,083	)		—			—			nm			nm			(72,482	)		(26,083	)		nm			nm
Interest expense - finance charge payable to Citi reinsurer		2,597			2,700			2,532			3,164			2,812			—			—			nm			nm			7,829			2,812			nm			nm
Interest expense - note payable		4,125			4,125			4,125			4,125			4,125			—			—			nm			nm			12,375			4,125			nm			nm
Other income adjustment to Term Life Insurance segment (1)		—			(1,379	)		1,379			—			—			—			—			nm			nm			—			—			nm			nm
Other income adjustment to Corporate & Other segment (1)		—			1,379			(1,379	)		—			—			—			—			nm			nm			—			—			nm			nm
Insurance expense adjustment to Term Life Insurance segment (1)		—			—			(1,791	)		2,635			—			—			—			nm			nm			(1,791	)		—			nm			nm
Other operating expense adjustment to Investment & Savings segment (1)		—			—			1,791			—			—			—			—			nm			nm			1,791			—			nm			nm
Other operating expense adjustment to Corporate & Other segment (1)		—			—			—			(2,635	)		—			—			—			nm			nm			—			—			nm			nm

Total operating income before income taxes reconciling items		129,596			130,115			125,296			131,678			161,713			(25,083	)		(2,061	)		nm			nm			385,006			134,569			nm			nm

Income before income taxes	$	174,775		$	198,334		$	187,875		$	198,972		$	220,402		$	36,338		$	61,879		$	(125,996	)		-67.1	%	$	560,984		$	318,619		$	(242,365	)		-43.2	%


Reconciliation from Net Operating Income to Net Income
Net operating income	$	29,096		$	45,444		$	41,247		$	42,641		$	38,154		$	37,199		$	40,914		$	(333	)		nm		$	115,787		$	116,267		$	480			nm
Net operating income reconciling items:
Operating income before income taxes reconciling items		129,596			130,115			125,296			131,678			161,713			(25,083	)		(2,061	)		nm			nm			385,006			134,569			nm			nm
Tax impact of operating income reconciling items at effective tax rate		(46,135	)		(43,439	)		(42,711	)		(48,238	)		(56,582	)		9,891			742			nm			nm			(132,285	)		(45,948	)		nm			nm

Total net operating income reconciling items		83,461			86,676			82,584			83,440			105,131			(15,191	)		(1,319	)		nm			nm			252,721			88,621			nm			nm

Net income	$	112,557		$	132,120		$	123,831		$	126,082		$	143,286		$	22,008		$	39,595		$	(84,236	)		-68.0	%	$	368,508		$	204,889		$	(163,620	)		-44.4	%

(1)	These adjustments reallocate specific 2009 segment expenses to be consistent with 2010 segment allocations for each quarter presented. These adjustments had no impact on consolidated results.

7 of 16


Segment Operating Results			PRIMERICA, INC.
			Financial Supplement


*(Dollars in thousands)*	Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010			Q2 2010			Q3 2010			YOY Q3						YTD 2009			YTD 2010			YOY YTD
*(Dollars in thousands)*	Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010			Q2 2010			Q3 2010			$ Change			% Change			YTD 2009			YTD 2010			$ Change			% Change
Term Life Insurance
Revenues:
Direct premiums	$	496,683		$	507,376		$	510,695		$	516,234		$	517,932		$	527,792		$	525,644		$	14,949			2.9	%	$	1,514,754		$	1,571,367		$	56,613			3.7	%
Ceded premiums		(422,006	)		(425,341	)		(418,216	)		(415,263	)		(440,699	)		(444,008	)		(433,234	)		(15,018	)		-3.6	%		(1,265,564	)		(1,317,941	)		(52,377	)		-4.1	%

Net premiums		74,677			82,035			92,479			100,970			77,233			83,784			92,410			(69	)		nm			249,190			253,426			4,236			1.7	%
Allocated net investment income		17,678			18,282			16,673			15,669			16,497			15,961			15,595			(1,079	)		-6.5	%		52,634			48,052			(4,581	)		-8.7	%
Other, net		8,615			8,990			7,560			8,490			8,782			8,643			7,929			369			4.9	%		25,165			25,354			189			nm

Operating revenues		100,970			109,307			116,712			125,130			102,511			108,388			115,933			(779	)		nm			326,989			326,833			(157	)		nm

Benefits and expenses:
Benefits and claims		26,614			31,437			37,032			39,968			32,905			35,134			39,084			2,052			5.5	%		95,084			107,123			12,039			12.7	%
Amortization of DAC		19,439			20,506			23,003			28,984			17,418			19,128			21,900			(1,103	)		-4.8	%		62,948			58,447			(4,501	)		-7.2	%
Insurance commissions		8,876			660			336			2,220			456			404			330			(6	)		-1.9	%		9,872			1,189			(8,682	)		-88.0	%
Insurance expenses		11,639			8,848			10,341			8,139			8,687			6,824			9,194			(1,147	)		-11.1	%		30,828			24,705			(6,124	)		-19.9	%
Interest expense		2,597			2,700			2,532			3,164			2,812			2,803			2,843			311			12.3	%		7,829			8,458			629			8.0	%

Operating benefits and expenses		69,165			64,150			73,245			82,475			62,278			64,294			73,352			106			nm			206,561			199,923			(6,638	)		-3.2	%

Operating income before income taxes	$	31,805		$	45,156		$	43,467		$	42,655		$	40,234		$	44,095		$	42,582		$	(885	)		-2.0	%	$	120,429		$	126,910		$	6,481			5.4	%

Investment & Savings Products
Revenues:
Commissions and fees:
Sales-based	$	28,203		$	29,451		$	28,672		$	32,472		$	36,363		$	36,301		$	32,941		$	4,269			14.9	%	$	86,326		$	105,604		$	19,279			22.3	%
Asset-based		27,555			29,718			33,344			36,964			38,014			39,445			37,602			4,258			12.8	%		90,617			115,061			24,444			27.0	%
Account-based		11,089			10,784			10,717			10,657			10,208			10,317			10,620			(97	)		nm			32,590			31,146			(1,445	)		-4.4	%
Other, net		2,437			2,536			2,682			2,858			2,108			2,155			2,711			28			1.1	%		7,655			6,974			(681	)		-8.9	%

Operating revenues		69,285			72,488			75,415			82,952			86,693			88,218			83,874			8,459			11.2	%		217,188			258,785			41,597			19.2	%

Benefits and expenses:
Amortization of DAC		1,936			1,508			1,304			2,506			2,549			3,029			1,361			57			4.4	%		4,748			6,938			2,191			46.1	%
Insurance commissions		1,737			1,482			1,766			1,845			1,809			1,989			1,964			197			11.2	%		4,985			5,761			776			15.6	%
Sales commissions:																										#DIV/0!												#DIV/0!
Sales-based		21,106			21,555			20,780			23,470			26,203			25,998			23,474			2,693			13.0	%		63,442			75,674			12,232			19.3	%
Asset-based		9,430			9,533			10,883			12,157			12,715			12,911			12,232			1,349			12.4	%		29,846			37,858			8,012			26.8	%
Other operating expenses		14,705			17,693			16,252			16,878			17,970			17,556			18,266			2,014			12.4	%		48,650			53,793			5,143			10.6	%

Operating benefits and expenses		48,914			51,771			50,985			56,856			61,246			61,483			57,296			6,311			12.4	%		151,671			180,025			28,355			18.7	%

Operating income before income taxes	$	20,371		$	20,717		$	24,430		$	26,096		$	25,447		$	26,735		$	26,578		$	2,148			8.8	%	$	65,518		$	78,760		$	13,242			20.2	%

Corporate & Other Distributed Products
Revenues:
Direct premiums	$	19,964		$	21,628		$	21,018		$	19,184		$	19,913		$	19,663		$	21,800		$	782			3.7	%	$	62,610		$	61,376		$	(1,233	)		-2.0	%
Ceded premiums		(3,357	)		(3,319	)		(3,499	)		(3,787	)		(3,748	)		(3,206	)		(3,820	)		(321	)		-9.2	%		(10,176	)		(10,774	)		(598	)		-5.9	%

Net premiums		16,606			18,309			17,518			15,396			16,165			16,458			17,980			462			2.6	%		52,434			50,603			(1,831	)		-3.5	%
Allocated net investment income		10,100			11,926			13,199			14,818			11,344			12,030			12,260			(939	)		-7.1	%		35,225			35,634			409			1.2	%
Commissions and fees:
Loans		8,832			8,685			7,401			4,738			2,455			1,918			3,527			(3,874	)		-52.3	%		24,918			7,900			(17,019	)		-68.3	%
DebtWatchers		—			1			120			386			620			779			845			725			nm			121			2,243			2,123			nm
Prepaid Legal Services		2,438			2,338			2,323			2,316			2,340			2,305			2,287			(35	)		-1.5	%		7,099			6,932			(166	)		-2.3	%
Auto and Homeowners Insurance		844			994			994			1,104			1,012			1,372			1,200			206			20.8	%		2,832			3,584			752			26.6	%
Long-Term Care Insurance		755			719			709			664			679			788			715			6			nm			2,183			2,181			(2	)		nm
Other, net		1,903			2,016			2,343			2,600			1,004			1,668			1,600			(743	)		-31.7	%		6,262			4,271			(1,991	)		-31.8	%

Operating revenues		41,479			44,988			44,607			42,022			35,618			37,318			40,414			(4,193	)		-9.4	%		131,074			113,349			(17,725	)		-13.5	%

Benefits and expenses:
Benefits and claims		10,023			11,625			10,433			9,155			9,626			9,991			10,727			294			2.8	%		32,081			30,344			(1,737	)		-5.4	%
Amortization of DAC		366			360			798			849			400			742			583			(215	)		-26.9	%		1,525			1,725			200			13.1	%
Insurance commissions		2,827			2,845			2,832			1,439			2,438			1,838			2,806			(26	)		nm			8,504			7,082			(1,422	)		-16.7	%
Insurance expenses		3,585			3,493			3,592			3,352			2,759			3,259			2,804			(788	)		-21.9	%		10,670			8,823			(1,847	)		-17.3	%
Sales commissions		9,653			9,301			8,513			6,374			4,963			4,603			6,558			(1,955	)		-23.0	%		27,467			16,124			(11,343	)		-41.3	%
Interest expense		4,125			4,125			4,125			4,125			4,125			4,125			4,125			—			nm			12,375			12,375			—			nm
Other operating expenses		17,896			10,894			19,631			18,185			18,298			22,170			18,030			(1,601	)		-8.2	%		48,421			58,497			10,076			20.8	%

Operating benefits and expenses		48,476			42,643			49,925			43,479			42,609			46,727			45,634			(4,291	)		-8.6	%		141,043			134,970			(6,073	)		-4.3	%

Operating income before income taxes	$	(6,996	)	$	2,345		$	(5,318	)	$	(1,458	)	$	(6,992	)	$	(9,410	)	$	(5,220	)	$	98			1.8	%	$	(9,969	)	$	(21,621	)	$	(11,652	)		-116.9	%

8 of 16


Term Life Insurance - Financial Results			PRIMERICA, INC.
			Financial Supplement


																						YOY Q3												YOY YTD
*(Dollars in thousands)*	Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010			Q2 2010			Q3 2010			$ Change			% Change			YTD 2009			YTD 2010			$ Change			% Change
Term Life Insurance Operating Income Before Income Taxes
Revenues:
Direct premiums	$	496,683		$	507,376		$	510,695		$	516,234		$	517,932		$	527,792		$	525,644		$	14,949			2.9	%	$	1,514,754		$	1,571,367		$	56,613			3.7	%
Ceded premiums		(422,006	)		(425,341	)		(418,216	)		(415,263	)		(440,699	)		(444,008	)		(433,234	)		(15,018	)		-3.6	%		(1,265,564	)		(1,317,941	)		(52,377	)		-4.1	%

Net premiums		74,677			82,035			92,479			100,970			77,233			83,784			92,410			(69	)		nm			249,190			253,426			4,236			1.7	%
Allocated net investment income		17,678			18,282			16,673			15,669			16,497			15,961			15,595			(1,079	)		-6.5	%		52,634			48,052			(4,581	)		-8.7	%
Other, net		8,615			8,990			7,560			8,490			8,782			8,643			7,929			369			4.9	%		25,165			25,354			189			nm

Operating revenues		100,970			109,307			116,712			125,130			102,511			108,388			115,933			(779	)		nm			326,989			326,833			(157	)		nm

Benefits and expenses:
Benefits and claims		26,614			31,437			37,032			39,968			32,905			35,134			39,084			2,052			5.5	%		95,084			107,123			12,039			12.7	%
Amortization of DAC		19,439			20,506			23,003			28,984			17,418			19,128			21,900			(1,103	)		-4.8	%		62,948			58,447			(4,501	)		-7.2	%
Insurance commissions		8,876			660			336			2,220			456			404			330			(6	)		-1.9	%		9,872			1,189			(8,682	)		-88.0	%
Insurance expenses		11,639			8,848			10,341			8,139			8,687			6,824			9,194			(1,147	)		-11.1	%		30,828			24,705			(6,124	)		-19.9	%
Interest expense		2,597			2,700			2,532			3,164			2,812			2,803			2,843			311			12.3	%		7,829			8,458			629			8.0	%

Operating benefits and expenses		69,165			64,150			73,245			82,475			62,278			64,294			73,352			106			nm			206,561			199,923			(6,638	)		-3.2	%


Operating income before income taxes	$	31,805		$	45,156		$	43,467		$	42,655		$	40,234		$	44,095		$	42,582		$	(885	)		-2.0	%	$	120,429		$	126,910		$	6,481			5.4	%


New Term Life Insurance Operating Income Before Income Taxes (1)
Revenues:
Direct premiums		na			na			na			na		$	10,138		$	21,256		$	30,149			na			na			na		$	61,544			na			na
Ceded premiums		na			na			na			na			(3,737	)		(3,869	)		(3,351	)		na			na			na			(10,956	)		na			na

Net premiums		na			na			na			na			6,401			17,388			26,799			na			na			na			50,587			na			na
Allocated net investment income		na			na			na			na			109			175			318			na			na			na			602			na			na
Other, net		na			na			na			na			8,802			8,675			8,100			na			na			na			25,576			na			na

Operating revenues		na			na			na			na			15,312			26,238			35,216			na			na			na			76,765			na			na

Benefits and expenses:
Benefits and claims		na			na			na			na			1,517			5,413			10,343			na			na			na			17,274			na			na
Amortization of DAC		na			na			na			na			968			6,405			7,725			na			na			na			15,099			na			na
Insurance commissions		na			na			na			na			—			0			(1	)		na			na			na			(1	)		na			na
Insurance expenses		na			na			na			na			18,180			16,050			18,224			na			na			na			52,454			na			na
Interest expense		na			na			na			na			—			(0	)		—			na			na			na			(0	)		na			na


Operating benefits and expenses		na			na			na			na			20,665			27,869			36,291			na			na			na			84,825			na			na


Operating income before income taxes		na			na			na			na		$	(5,354	)	$	(1,631	)	$	(1,075	)		na			na			na		$	(8,060	)		na			na

Legacy Term Life Insurance Operating Income Before Income Taxes (2)
Revenues:
Direct premiums		na			na			na			na		$	507,794		$	506,536		$	495,494			na			na			na		$	1,509,824			na			na
Ceded premiums		na			na			na			na			(436,962	)		(440,140	)		(429,883	)		na			na			na			(1,306,985	)		na			na

Net premiums		na			na			na			na			70,832			66,396			65,611			na			na			na			202,839			na			na
Allocated net investment income		na			na			na			na			16,388			15,786			15,277			na			na			na			47,451			na			na
Other, net		na			na			na			na			(20	)		(32	)		(170	)		na			na			na			(223	)		na			na

Operating revenues		na			na			na			na			87,199			82,150			80,718			na			na			na			250,067			na			na

Benefits and expenses:
Benefits and claims		na			na			na			na			31,388			29,721			28,741			na			na			na			89,849			na			na
Amortization of DAC		na			na			na			na			16,450			12,723			14,175			na			na			na			43,349			na			na
Insurance commissions		na			na			na			na			456			404			331			na			na			na			1,190			na			na
Insurance expenses		na			na			na			na			10,047			9,888			9,648			na			na			na			29,584			na			na
Insurance expense allowance		na			na			na			na			(19,541	)		(19,114	)		(18,678	)		na			na			na			(57,333	)		na			na
Interest expense		na			na			na			na			2,812			2,803			2,843			na			na			na			8,458			na			na


Operating benefits and expenses		na			na			na			na			41,612			36,425			37,060			na			na			na			115,098			na			na

Operating income before income taxes		na			na			na			na		$	45,587		$	45,726		$	43,657			na			na			na		$	134,970			na			na

(1)	Represents results associated with business written subsequent to the Citi reinsurance transactions executed on March 31, 2010.

(2)	Represents results associated with business subject to the Citi reinsurance transactions.

9 of 16


Term Life Insurance - Key Statistics and Financial Analysis			PRIMERICA, INC.
			Financial Supplement


*(Dollars in thousands, except as noted)*	Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010			Q2 2010			Q3 2010			YOY Q3						YTD 2009			YTD 2010			YOY YTD
*(Dollars in thousands, except as noted)*	Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010			Q2 2010			Q3 2010			$ Change			% Change			YTD 2009			YTD 2010			$ Change			% Change
Key Statistics
Life-insurance licensed sales force, beginning of period		100,651			100,409			100,672			101,095			99,785			97,354			96,066			(4,606	)		-4.6	%		100,651			99,785			(866	)		nm
New life-licensed representatives		9,270			9,978			9,642			8,739			7,366			9,887			9,430			(212	)		-2.2	%		28,890			26,683			(2,207	)		-7.6	%
Non-renewal and terminated representatives		(9,512	)		(9,715	)		(9,219	)		(10,049	)		(9,797	)		(11,175	)		(8,624	)		595			6.5	%		(28,446	)		(29,596	)		(1,150	)		-4.0	%

Life-insurance licensed sales force, end of period		100,409			100,672			101,095			99,785			97,354			96,066			96,872			(4,223	)		-4.2	%		101,095			96,872			(4,223	)		-4.2	%

Estimated annualized issued term life premium ($mills) (1):
Premium from new policies	$	44.3		$	51.0		$	48.3		$	50.2		$	43.4		$	48.9		$	44.1		$	(4.2	)		-8.6	%	$	143.5		$	136.3		$	(7.2	)		-5.0	%
Additions and increases in premium		10.2			10.8			10.6			11.0			10.8			11.7			10.9			0.3			3.2	%		31.6			33.4			1.8			5.7	%

Total estimated annualized issued term life premium	$	54.5		$	61.8		$	58.9		$	61.2		$	54.2		$	60.6		$	55.0		$	(3.8	)		-6.5	%	$	175.1		$	169.8		$	(5.3	)		-3.1	%

Issued term life policies		53,023			62,202			58,070			60,542			52,445			60,406			54,373			(3,697	)		-6.4	%		173,295			167,224			(6,071	)		-3.5	%
Term life face amount in-force, beginning of period ($mills)	$	633,467		$	631,566		$	639,377		$	646,341		$	650,195		$	651,790		$	653,530		$	14,152			2.2	%	$	633,467		$	650,195		$	16,729			2.6	%
Issued term life face amount (2)		18,660			21,070			19,909			20,858			17,997			20,042			18,113			(1,796	)		-9.0	%		59,639			56,152			(3,488	)		-5.8	%
Terminated term life face amount		(19,614	)		(17,333	)		(18,009	)		(19,686	)		(18,867	)		(16,156	)		(17,836	)		172			nm			(54,956	)		(52,859	)		2,097			3.8	%
Foreign currency impact, net		(947	)		4,074			5,064			2,683			2,464			(2,146	)		826			(4,237	)		nm			8,191			1,145			(7,046	)		nm

Term life face amount in-force, end of period	$	631,566		$	639,377		$	646,341		$	650,195		$	651,790		$	653,530		$	654,633		$	8,292			1.3	%	$	646,341		$	654,633		$	8,292			1.3	%

New Term Life Insurance - Financial Analysis
Direct premium		na			na			na			na		$	10,138		$	21,256		$	30,149			nm			nm			na		$	61,544			nm			nm
New term life operating income before income taxes		na			na			na			na		$	(5,354	)	$	(1,631	)	$	(1,075	)		nm			nm			na		$	(8,060	)		nm			nm
% of direct premium		na			na			na			na			-52.8	%		-7.7	%		-3.6	%		nm			nm			na			-13.1	%		nm			nm
Benefits & expenses, net (3)		na			na			na			na		$	6,222		$	15,687		$	21,418			nm			nm			na		$	43,328			nm			nm
% of direct premium		na			na			na			na			61.4	%		73.8	%		71.0	%		nm			nm			na			70.4	%		nm			nm
Insurance expenses, net (4)		na			na			na			na		$	9,378		$	7,375		$	10,124			nm			nm			na		$	26,877			nm			nm
% of direct premium		na			na			na			na			92.5	%		34.7	%		33.6	%		nm			nm			na			43.7	%		nm			nm

Legacy Term Life Insurance - Financial Analysis
Direct premium		na			na			na			na		$	507,794		$	506,536		$	495,494			nm			nm			na		$	1,509,824			nm			nm
Legacy term life operating income before income taxes		na			na			na			na		$	45,587		$	45,726		$	43,657			nm			nm			na		$	134,970			nm			nm
% of direct premium		na			na			na			na			9.0	%		9.0	%		8.8	%		nm			nm			na			8.9	%		nm			nm

(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)	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

(3)	Benefits & expenses, net - includes total benefits & claims, ceded premiums, insurance commissions, and amortization of deferred policy acquisition costs

(4)	Insurance expenses, net - insurance expenses net of other net revenues

10 of 16


Investment and Savings Products - Financial Results, Key Statistics, and Financial Analysis			PRIMERICA, INC.
			Financial Supplement


																						YOY Q3												YOY YTD
*(Dollars in thousands, except as noted)*	Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010			Q2 2010			Q3 2010			$ Change			% Change			YTD 2009			YTD 2010			$ Change			% Change
Investment & Savings Products Operating Income Before Income Taxes
Revenues:
Commissions and fees:
Sales-based	$	28,203		$	29,451		$	28,672		$	32,472		$	36,363		$	36,301		$	32,941		$	4,269			14.9	%	$	86,326		$	105,604		$	19,279			22.3	%
Asset-based		27,555			29,718			33,344			36,964			38,014			39,445			37,602			4,258			12.8	%		90,617			115,061			24,444			27.0	%
Account-based		11,089			10,784			10,717			10,657			10,208			10,317			10,620			(97	)		nm			32,590			31,146			(1,445	)		-4.4	%
Other, net		2,437			2,536			2,682			2,858			2,108			2,155			2,711			28			1.1	%		7,655			6,974			(681	)		-8.9	%

Operating revenues		69,285			72,488			75,415			82,952			86,693			88,218			83,874			8,459			11.2	%		217,188			258,785			41,597			19.2	%

Benefits and expenses:
Amortization of DAC		1,936			1,508			1,304			2,506			2,549			3,029			1,361			57			4.4	%		4,748			6,938			2,191			46.1	%
Insurance commissions		1,737			1,482			1,766			1,845			1,809			1,989			1,964			197			11.2	%		4,985			5,761			776			15.6	%
Sales commissions:
Sales-based		21,106			21,555			20,780			23,470			26,203			25,998			23,474			2,693			13.0	%		63,442			75,674			12,232			19.3	%
Asset-based		9,430			9,533			10,883			12,157			12,715			12,911			12,232			1,349			12.4	%		29,846			37,858			8,012			26.8	%
Other operating expenses		14,705			17,693			16,252			16,878			17,970			17,556			18,266			2,014			12.4	%		48,650			53,793			5,143			10.6	%

Operating benefits and expenses		48,914			51,771			50,985			56,856			61,246			61,483			57,296			6,311			12.4	%		151,671			180,025			28,355			18.7	%

Operating income before income taxes	$	20,371		$	20,717		$	24,430		$	26,096		$	25,447		$	26,735		$	26,578		$	2,148			8.8	%	$	65,518		$	78,760		$	13,242			20.2	%


Key Statistics
Product sales ($mills)
Mutual Funds	$	445.0		$	427.5		$	444.4		$	504.1		$	594.7		$	551.0		$	474.8		$	30.4			6.8	%	$	1,316.9		$	1,620.5		$	303.6			23.1	%
Variable Annuities / Fixed Annuities / 401(k)		208.4			247.7			217.7			248.8			267.3			308.3			287.5			69.8			32.1	%		673.7			863.2			189.4			28.1	%

Total sales-based revenue generating product sales		653.4			675.2			662.1			752.9			862.1			859.3			762.3			100.2			15.1	%		1,990.7			2,483.7			493.0			24.8	%
Segregated Funds		75.4			55.7			59.5			72.5			111.4			64.0			61.6			2.0			3.4	%		190.6			237.0			46.4			24.4	%

Total product sales	$	728.8		$	730.9		$	721.6		$	825.4		$	973.5		$	923.3		$	823.9		$	102.3			14.2	%	$	2,181.2		$	2,720.7		$	539.4			24.7	%

Asset values, beginning of period ($mills)	$	24,677		$	23,146		$	26,496		$	30,114		$	31,303		$	32,670		$	29,723		$	3,227			12.2	%	$	24,677		$	31,303		$	6,626			26.9	%
Inflows		729			731			722			825			974			923			824			102			14.2	%		2,181			2,721			539			24.7	%
Outflows (1)		(816	)		(705	)		(717	)		(758	)		(956	)		(903	)		(876	)		(158	)		-22.1	%		(2,239	)		(2,735	)		(496	)		-22.2	%

Net flows		(88	)		26			4			67			17			20			(52	)		(56	)		nm			(57	)		(14	)		43			nm
Change in market value, net and other (2)		(1,443	)		3,323			3,614			1,123			1,350			(2,967	)		2,929			(684	)		nm			5,494			1,311			(4,183	)		nm

Asset values, end of period	$	23,146		$	26,496		$	30,114		$	31,303		$	32,670		$	29,723		$	32,600		$	2,487			8.3	%	$	30,114		$	32,600		$	2,487			8.3	%

Average asset values ($mills)
Mutual Funds	$	16,818		$	18,261		$	20,441		$	21,795		$	22,453		$	22,424		$	21,919		$	1,478			7.2	%	$	18,507		$	22,265		$	3,759			20.3	%
Variable Annuities / Fixed Annuities / 401(k)		4,926			5,379			6,064			6,539			6,847			6,955			6,954			890			14.7	%		5,456			6,918			1,462			26.8	%
Segregated Funds		1,510			1,699			1,908			2,041			2,105			2,182			2,184			276			14.5	%		1,706			2,157			451			26.5	%

Total	$	23,253		$	25,340		$	28,413		$	30,375		$	31,404		$	31,561		$	31,056		$	2,643			9.3	%	$	25,669		$	31,341		$	5,672			22.1	%

Average number of fee-generating accounts (thous) (3)		2,904			2,844			2,813			2,790			2,762			2,741			2,715			(98	)		-3.5	%		2,854			2,739			(114	)		-4.0	%

Financial Analysis
Sales-based net revenue as % of sales (4)		1.09	%		1.17	%		1.19	%		1.20	%		1.18	%		1.20	%		1.24	%		nm			nm			1.15	%		1.21	%		nm			nm
Asset-based net revenue as % of average asset values (5)		0.06	%		0.07	%		0.07	%		0.07	%		0.07	%		0.07	%		0.07	%		nm			nm			0.20	%		0.21	%		nm			nm
Account-based revenue per average fee generating account (6)	$	3.82		$	3.79		$	3.81		$	3.82		$	3.70		$	3.76		$	3.91			nm			nm			11.42			11.37			nm			nm

(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 9% 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, expenses, and foreign currency impact

(3)	Fee generating accounts - mutual fund accounts for which we receive recording keeping and/or custodial fees

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

(5)	Asset-based net revenue - commission and fee revenue less commissions paid to the sales force earned based on product account values including amortization of deferred acquisition costs for segregated funds

(6)	In whole dollars

11 of 16


Investment Portfolio - Summary of Holdings		PRIMERICA, INC.
		Financial Supplement


	As of or for the period ended September 30, 2010
*(Dollars in thousands)*	Market Value		Amortized Cost		Unrealized G/(L)			% of Total						Avg			Avg Rating
*(Dollars in thousands)*	Market Value		Amortized Cost		Unrealized G/(L)			Market Value			Amortized Cost			Book Yield			Avg Rating
Investment Portfolio by Asset Class

Cash and cash equivalents	$	74,759	$	74,759	$	—			3.3	%		3.6	%

Fixed Income:
Treasury		33,985		30,357		3,628			1.5	%		1.5	%		3.35	%		AAA
Government		92,507		80,931		11,576			4.1	%		3.9	%		4.67	%		AA
Tax-Exempt Municipal		7,256		6,675		582			0.3	%		0.3	%		4.09	%		AA
Corporate		1,282,457		1,156,005		126,452			56.8	%		55.9	%		5.75	%		BBB+
Mortgage-Backed		375,068		350,409		24,659			16.6	%		16.9	%		5.59	%		AA+
Asset-Backed		64,975		66,660		(1,685	)		2.9	%		3.2	%		2.17	%		AA-
CMBS		159,109		151,389		7,720			7.0	%		7.3	%		5.29	%		AAA
Private		109,155		99,684		9,471			4.8	%		4.8	%		6.21	%		BBB
Redeemable Preferred		424		495		(71	)		0.0	%		0.0	%		35.83	%		A-
Convertible		36,826		35,314		1,512			1.6	%		1.7	%		3.66	%		A-

Total Fixed Income		2,161,763		1,977,919		183,844			95.7	%		95.6	%		5.47	%		A

Equities:
Perpetual Preferred		2,253		2,086		166			0.1	%		0.1	%
Common Stock		12,068		8,897		3,171			0.5	%		0.4	%
Mutual Fund		4,792		3,110		1,682			0.2	%		0.2	%
Other		2,370		2,368		3			0.1	%		0.1	%

Total Equities		21,483		16,460		5,023			1.0	%		0.8	%


Total Invested Assets	$	2,258,005	$	2,069,138	$	188,867			100.0	%		100.0	%


Corporate Portfolio by Sector

Banking	$	105,734	$	99,146	$	6,588			8.2	%		8.6	%
Basic Industry		97,934		87,469		10,465			7.6	%		7.6	%
Brokerage		18,024		16,263		1,762			1.4	%		1.4	%
Capital Goods		93,814		85,389		8,425			7.3	%		7.4	%
Communications		110,109		98,701		11,408			8.6	%		8.5	%
Consumer Cyclical		62,039		56,083		5,956			4.8	%		4.9	%
Consumer Non-Cyclical		133,822		116,247		17,575			10.4	%		10.1	%
Electric		135,103		119,372		15,731			10.5	%		10.3	%
Energy		78,758		68,842		9,916			6.1	%		6.0	%
Finance Companies		27,058		22,708		4,350			2.1	%		2.0	%
Financial Other		8,098		7,450		648			0.6	%		0.6	%
Industrial Other		22,193		20,243		1,950			1.7	%		1.8	%
Insurance		122,359		113,186		9,173			9.5	%		9.8	%
Natural Gas		76,921		68,814		8,107			6.0	%		6.0	%
REITs		102,422		96,186		6,237			8.0	%		8.3	%
Technology		54,846		49,596		5,250			4.3	%		4.3	%
Transportation		27,774		25,318		2,456			2.2	%		2.2	%
Utility Other		5,449		4,991		458			0.4	%		0.4	%

Total Corporate portfolio	$	1,282,457	$	1,156,005	$	126,452			100.0	%		100.0	%


Fixed-Maturity Securities - Effective Maturity

Effective maturity
< 1 Yr.	$	286,676	$	282,142	$	4,534			13.3	%		14.3	%
1-2 Yrs.		208,024		197,725		10,299			9.6	%		10.0	%
2-5 Yrs.		983,082		904,241		78,841			45.5	%		45.7	%
5-10 Yrs.		623,245		539,907		83,339			28.8	%		27.3	%
> 10 Yrs.		60,736		53,904		6,832			2.8	%		2.7	%

Total Fixed Income	$	2,161,763	$	1,977,919	$	183,844			100.0	%		100.0	%


Duration

Fixed Income portfolio duration		3.4 years

12 of 16


Investment Portfolio - Quality Ratings As of September 30, 2010		PRIMERICA, INC.
		Financial Supplement


*(Dollars in thousands)*	Amortized Cost		% of Total
Investment Portfolio Quality Ratings (1)
Total Fixed Income portfolio:
Rating
AAA	$	553,810		28.0	%
AA		157,281		8.0	%
A		438,147		22.2	%
BBB		689,002		34.8	%
Below Investment Grade		137,341		6.9	%
NA		2,338		0.1	%

Total Fixed Income	$	1,977,919		100.0	%


Corporate asset class:
Rating
AAA	$	350		0.0	%
AA		101,184		8.8	%
A		372,040		32.2	%
BBB		603,088		52.2	%
Below Investment Grade		78,213		6.8	%
NA		1,130		0.1	%

Total Corporate	$	1,156,005		100.0	%


CMBS asset class:
Rating
AAA	$	124,288		82.1	%
AA		22,745		15.0	%
A		2,949		1.9	%
BBB		284		0.2	%
Below Investment Grade		1,008		0.7	%
NA		115		0.1	%

Total CMBS	$	151,389		100.0	%

Asset-Backed asset class:
Rating
AAA	$	48,841		73.3	%
AA		1,450		2.2	%
A		—		—
BBB		3,381		5.1	%
Below Investment Grade		12,988		19.5	%
NA		—		—

Total Asset-Backed	$	66,660		100.0	%


Private asset class:
Rating
AAA	$	310		0.3	%
AA		4,600		4.6	%
A		19,228		19.3	%
BBB		51,702		51.9	%
Below Investment Grade		23,844		23.9	%
NA		—		—

Total Private	$	99,684		100.0	%


Mortgage-Backed asset class:
Rating
AAA	$	316,508		90.3	%
AA		811		0.2	%
A		4,290		1.2	%
BBB		9,832		2.8	%
Below Investment Grade		18,968		5.4	%
NA		—		—

Total Mortgage-Backed	$	350,409		100.0	%


Treasury & Government asset classes:
Rating
AAA	$	63,204		56.8	%
AA		20,687		18.6	%
A		20,518		18.4	%
BBB		6,879		6.2	%
Below Investment Grade		—		—
NA		—		—

Total Treasury & Government	$	111,287		100.0	%


NAIC Designations
1	$	1,069,242		58.1	%
2		659,970		35.9	%
3		74,076		4.0	%
4		28,671		1.6	%
5		4,710		0.3	%
6		2,144		0.1	%

U.S. Insurer Fixed Income (2)		1,838,815		100.0	%
Other (3)		155,564
Cash and cash equivalents		74,759

Total Invested Assets	$	2,069,138

(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

13 of 16


Investment Portfolio - Mortgage Backed Vintage Analysis As of September 30, 2010		PRIMERICA, INC.
		Financial Supplement


	2004 and Prior			2005			2006		2007		2008		2009		2010			Total
*(Dollars in thousands)*	Amortized Cost by Vintage
Commercial Mortgage-Backed Securities
Current Rating:
AAA	$	72,681		$	21,975		$	9,410	$	7,982	$	2,281	$	5,920	$	4,039		$	124,288
AA		12,484			10,261			—		—		—		—		—			22,745
A		2,749			—			200		—		—		—		—			2,949
BBB		284			—			—		—		—		—		—			284
BB		394			—			—		—		—		—		—			394
B		275			—			—		—		—		—		—			275
CCC and lower		228			226			—		—		—		—		—			454

Total	$	89,095		$	32,462		$	9,610	$	7,982	$	2,281	$	5,920	$	4,039		$	151,389


	Net Unrealized Gain/(Loss) by Vintage
Current Rating:
AAA	$	3,808		$	1,149		$	932	$	606	$	89	$	443	$	(1	)	$	7,026
AA		179			(145	)		—		—		—		—		—			34
A		196			—			10		—		—		—		—			206
BBB		(183	)		—			—		—		—		—		—			(183	)
BB		478			—			—		—		—		—		—			478
B		143			—			—		—		—		—		—			143
CCC and lower		15			2			—		—		—		—		—			17

Total	$	4,636		$	1,005		$	941	$	606	$	89	$	443	$	(1	)	$	7,720

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	Amortized Cost by Vintage
Prime Residential Mortgage-Backed Securities
Current Rating:
AAA	$	161,551	$	32,168		$	32,813	$	51,681	$	36,532	$	—	$	—	$	314,745
AA		—		—			—		—		—		—		—		—
A		998		3,292			—		—		—		—		—		4,290
BBB		—		9,832			—		—		—		—		—		9,832
BB		—		5,452			—		—		—		—		—		5,452
B		—		2,958			—		—		—		—		—		2,958
CCC and lower		—		1,636			—		1,700		—		—		—		3,336

Total	$	162,549	$	55,338		$	32,813	$	53,382	$	36,532	$	—	$	—	$	340,613


	Net Unrealized Gain/(Loss) by Vintage
Current Rating:
AAA	$	13,954	$	1,486		$	2,729	$	4,106	$	3,192	$	—	$	—	$	25,467
AA		—		—			—		—		—		—		—		—
A		21		115			—		—		—		—		—		136
BBB		—		(451	)		—		—		—		—		—		(451	)
BB		—		(208	)		—		—		—		—		—		(208	)
B		—		(59	)		—		—		—		—		—		(59	)
CCC and lower		—		(25	)		—		77		—		—		—		51

Total	$	13,975	$	858		$	2,729	$	4,183	$	3,192	$	—	$	—	$	24,936

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	Amortized Cost by Vintage
Alt-A Residential Mortgage-Backed Securities
Current Rating:
AAA	$	—		$	1,763		$	—	$	—	$	—	$	—	$	—	$	1,763
AA		811			—			—		—		—		—		—		811
A		—			—			—		—		—		—		—		—
BBB		—			—			—		—		—		—		—		—
BB		—			—			—		—		—		—		—		—
B		—			3,651			—		—		—		—		—		3,651
CCC and lower		3,261			311			—		—		—		—		—		3,572

Total	$	4,072		$	5,724		$	—	$	—	$	—	$	—	$	—	$	9,796


	Net Unrealized Gain/(Loss) by Vintage
Current Rating:
AAA	$	—		$	43		$	—	$	—	$	—	$	—	$	—	$	43
AA		21			—			—		—		—		—		—		21
A		—			—			—		—		—		—		—		—
BBB		—			—			—		—		—		—		—		—
BB		—			—			—		—		—		—		—		—
B		—			(283	)		—		—		—		—		—		(283	)
CCC and lower		(25	)		(33	)		—		—		—		—		—		(59	)

Total	$	(4	)	$	(274	)	$	—	$	—	$	—	$	—	$	—	$	(278	)

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14 of 16


Investment Portfolio - Supplemental Data and Trends		PRIMERICA, INC.
		Financial Supplement


*(Dollars in thousands)*	Q1 2009		Q2 2009		Q3 2009		Q4 2009		Q1 2010			Q2 2010			Q3 2010
Net Investment Income by Source
Bonds & notes		na		na		na		na	$	83,814		$	27,796		$	28,350
Preferred and common stocks		na		na		na		na		1,239			164			189
Deposit asset underlying 10% reinsurance treaty		na		na		na		na		—			1,551			624
Policy loans		na		na		na		na		336			341			326
Cash & cash equivalents		na		na		na		na		283			85			103
Other		na		na		na		na		—			55			—

Total investment income		na		na		na		na		85,671			29,992			29,591
Investment expenses		na		na		na		na		3,095			2,001			1,737

Net investment income		na		na		na		na	$	82,576		$	27,991		$	27,855

Fixed income average book yield		na		na		na		na		5.79	%		5.72	%		5.47	%
New money yield										3.48	%		2.43	%		2.50	%

Fixed Income Portfolio Quality Ratings
Rating
AAA		na		na		na		na		32.5	%		31.4	%		28.0	%
AA		na		na		na		na		7.9	%		6.9	%		8.0	%
A		na		na		na		na		21.2	%		21.4	%		22.2	%
BBB		na		na		na		na		30.8	%		32.4	%		34.8	%
Below Investment Grade		na		na		na		na		7.1	%		7.8	%		6.9	%
NA		na		na		na		na		0.4	%		0.1	%		0.1	%

Total Fixed Income		na		na		na		na		100.0	%		100.0	%		100.0	%
Average rating by amortized cost		na		na		na		na		A			A			A


		As of September 30, 2010
		Market Value			Amortized Cost			Credit Rating
Top 25 Exposures

1	Government of Canada	$	37,408		$	33,413			AAA
2	Verizon Communications Inc		15,780			13,513			A
3	General Electric Co		15,615			13,693			AA
4	National Rural Utilities Cooperative		15,465			11,949			A+
5	Bank of America Corp		14,076			12,703			A
6	ConocoPhillips		11,312			9,495			A
7	Enel SpA		11,170			10,539			A-
8	Edison International		11,170			11,170			B+
9	Medtronic Inc		10,800			10,426			AA-
10	AT&T Inc		10,341			8,767			A
11	Toyota Motor Corp		10,200			10,070			AA
12	Banco Santander SA		9,889			9,818			AA
13	Loews Corp		9,843			9,015			BBB
14	Reynolds American Inc		9,604			7,857			BBB
15	Amgen Inc		9,486			9,299			A+
16	Iberdrola SA		9,337			8,467			BBB+
17	Transocean Ltd		8,967			8,471			BBB
18	Altria Group Inc		8,682			6,881			BBB
19	Roche Holding AG		8,387			6,912			AA-
20	Vale SA		7,995			7,101			BBB+
21	Province of Ontario Canada		7,990			6,489			AA-
22	ArcelorMittal		7,895			6,576			BBB
23	Montpelier Re Holdings Ltd		7,748			7,207			BBB
24	Lockheed Martin Corp		7,631			6,941			A-
25	France Telecom SA		7,551			7,091			A-

	Total	$	284,342		$	253,863


	% of total fixed income portfolio		13.2	%		12.8	%


	As of September 30, 2010
	Market Value		Amortized Cost
Foreign Exposure (1)

Canada	$	62,101	$	56,689
United Kingdom		59,004		54,059
Australia		40,616		36,282
France		25,580		23,864
Spain		19,624		19,102
Japan		18,283		18,062
Italy		14,356		13,537
Emerging Markets (2)		37,318		32,983
All Other		89,778		79,206

Total	$	366,661	$	333,783

Government Investments

AAA	$	517	$	495
AA		2,928		2,572
A		10,642		9,623
BBB		8,061		6,879
Below Investment Grade		—		—
NA		—		—

Total	$	22,148	$	19,569

Non-Government Investments

AAA	$	—	$	—
AA		52,752		49,416
A		115,217		106,030
BBB		149,927		134,332
Below Investment Grade		24,420		23,436
NA		2,198		1,000

Total	$	344,514	$	314,214

(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 Brazil, Chile, Colombia, India, Korea, Mexico, Peru, Poland and South Africa

15 of 16


Five-Year Historical Key Statistics		PRIMERICA, INC.
		Financial Supplement


*(Dollars in millions)*	2005			2006			2007			2008			2009			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010			Q2 2010			Q3 2010
Recruits		215,615			204,316			220,950			235,125			221,920			57,623			57,453			58,654			48,190			58,085			65,245			58,178

Life-insurance licensed sales force, beginning of period		100,979			97,105			96,532			97,125			100,651			100,651			100,409			100,672			101,095			99,785			97,354			96,066
New life-licensed representatives		35,812			35,233			36,308			39,383			37,629			9,270			9,978			9,642			8,739			7,366			9,887			9,430
Non-renewal and terminated representatives		(39,686	)		(35,806	)		(35,715	)		(35,857	)		(38,495	)		(9,512	)		(9,715	)		(9,219	)		(10,049	)		(9,797	)		(11,175	)		(8,624	)

Life-insurance licensed sales force, end of period		97,105			96,532			97,125			100,651			99,785			100,409			100,672			101,095			99,785			97,354			96,066			96,872


Issued term life policies		251,442			245,520			244,733			241,173			233,837			53,023			62,202			58,070			60,542			52,445			60,406			54,373

Issued term life face amount	$	83,481		$	84,503		$	87,619		$	87,279		$	80,497		$	18,660		$	21,070		$	19,909		$	20,858		$	17,997		$	20,042		$	18,113

Term life face amount in-force, beginning of period	$	536,922		$	572,155		$	599,470		$	632,086		$	633,467		$	633,467		$	631,566		$	639,377		$	646,341		$	650,195		$	651,790		$	653,530
Issued term life face amount		83,481			84,503			87,619			87,279			80,497			18,660			21,070			19,909			20,858			17,997			20,042			18,113
Terminated term life face amount		(51,092	)		(57,277	)		(64,966	)		(72,008	)		(74,642	)		(19,614	)		(17,333	)		(18,009	)		(19,686	)		(18,867	)		(16,156	)		(17,836	)
Foreign currency impact, net		2,844			90			9,963			(13,891	)		10,873			(947	)		4,074			5,064			2,683			2,464			(2,146	)		826

Term life face amount in-force, end of period	$	572,155		$	599,470		$	632,086		$	633,467		$	650,195		$	631,566		$	639,377		$	646,341		$	650,195		$	651,790		$	653,530		$	654,633

Estimated annualized issued term life premium
Premium from new policies	$	201.8		$	204.7		$	208.9		$	205.0		$	193.7		$	44.3		$	51.0		$	48.3		$	50.2		$	43.4		$	48.9		$	44.1
Additions and increases in premium		35.3			41.1			43.4			43.0			42.6			10.2			10.8			10.6			11.0			10.8			11.7			10.9

Total estimated annualized issued term life premium	$	237.1		$	245.8		$	252.4		$	248.0		$	236.3		$	54.5		$	61.8		$	58.9		$	61.2		$	54.2		$	60.6		$	55.0


Investment & Savings product sales	$	4,174.3		$	4,664.7		$	5,189.5		$	4,458.4		$	3,006.6		$	728.8		$	730.9		$	721.6		$	825.4		$	973.5		$	923.3		$	823.9

Investment & Savings average client account values	$	28,474		$	32,117		$	36,696		$	32,476		$	26,905		$	23,253		$	25,340		$	28,413		$	30,375		$	31,404		$	31,561		$	31,056

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Attached files

Primerica, Inc. Reports

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