Primerica, Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2

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8-K - PRIMERICA, INC. 8-K - Primerica, Inc.	a50256863.htm
EX-99.1 - EXHIBIT 99.1 - Primerica, Inc.	a50256863ex99-1.htm

Exhibit 99.2

Supplemental Financial Information
First Quarter 2012

Table of Contents	PRIMERICA, INC.
	Financial Supplement

	Page
Preface, definition of Non-GAAP financial measures	3

Condensed balance sheets and reconciliation of balance sheet non-GAAP to GAAP financial measures	4

Financial results and other statistical data	5

Statements of income	6

Reconciliation of statement of income 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 Products 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 Form 10-K for the year ended December 31, 2011.

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Preface	PRIMERICA, INC.
	Financial Supplement

FIRST QUARTER 2012

This document is a financial supplement to our first quarter 2012 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 expense associated with equity awards granted in connection with our initial public offering (“IPO”) and the impact of realized investment gains and losses. For periods which include the first quarter of 2011, operating adjustments exclude the impact of certain reinsurance recoveries which previously had not been recognized due to the uncertain nature of their recovery.

●	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.

Effective January 1, 2012, we adopted ASU 2010-26 Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts and no longer defer certain indirect acquisition costs or costs attributable to unsuccessful efforts of acquiring life insurance policies. We adopted this accounting policy change retrospectively and, accordingly, our historical results have been adjusted to reflect all results on a consistent basis across all periods presented. See the table below for the impact on key metrics.

During the first quarter 2012, we closed a redundant reserve financing transaction. In connection with this transaction, we formed Peach Re, Inc. (Peach Re), a special purpose financial captive insurance company and indirect wholly owned subsidiary of the company. In March 2012, Peach Re entered into a letter of credit facility with Deutsche Bank AG New York Branch with a term of approximately 14 years for a maximum amount of $510 million to support certain of its obligations for a portion of the reserves (commonly referred to as Regulation XXX reserves) related to level premium term life insurance policies ceded to Peach Re by Primerica Life under a new coinsurance agreement. In connection with this transaction, Primerica Life Insurance Company (PLIC) obtained regulatory approval for the March 2012 payment of an extraordinary dividend of $150 million to Primerica, Inc.

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.


ASU 2010-26 Implementation Impact Reconciliations
(Unaudited – in thousands, except per-share data)

	December 31,
	2011
Stockholders' equity prior to implementation	$	1,422,641
Adjustment for the adoption of ASU 2010-26		(95,991	)
Stockholders' equity upon adoption	$	1,326,650

	Three months
	ended March 31,
		2011
Net income as originally reported	$	52,467
Adjustment for the adoption of ASU 2010-26		(5,196	)
Net income as revised for the adoption of ASU 2010-26	$	47,271

Diluted earnings per share as originally reported	$	0.68
Adjustment for the adoption of ASU 2010-26		(0.06	)
Diluted earnings per share as revised for the adoption of ASU 2010-26	$	0.62

Diluted operating earnings per share as originally reported	$	0.63
Adjustment for the adoption of ASU 2010-26		(0.06	)
Diluted operating earnings per share as revised for the adoption of ASU 2010-26	$	0.57

3 of 16

Condensed Balance Sheets and Reconciliation of Balance Sheet to Non-GAAP to GAAP Financial Measures	PRIMERICA, INC.
	Financial Supplement

(Dollars in thousands)	Mar 31, 2011			Jun 30, 2011			Sep 30, 2011			Dec 31, 2011			Mar 31, 2012
Condensed Balance Sheets
Assets:
Investments and cash	$	2,330,098		$	2,297,013		$	2,319,873		$	2,157,582		$	2,167,231
Due from reinsurers		3,769,599			3,793,995			3,818,759			3,855,318			3,895,162
Deferred policy acquisition costs		786,055			833,784			864,623			904,485			948,087
Other assets		582,079			567,482			586,647			525,836			522,123
Separate account assets		2,582,881			2,544,429			2,276,705			2,408,598			2,541,313
Total assets	$	10,050,712		$	10,036,703		$	9,866,607		$	9,851,820		$	10,073,917

Liabilities:
Future policy benefits	$	4,470,185		$	4,532,615		$	4,557,535		$	4,614,860		$	4,676,374
Other policy liabilities		604,487			588,202			589,826			589,542			606,793
Income taxes		100,666			84,859			87,950			81,316			88,503
Other liabilities		396,195			363,181			389,319			381,495			331,112
Note payable		300,000			300,000			300,000			300,000			300,000
Payable under securities lending		186,089			163,342			185,483			149,358			142,507
Separate account liabilities		2,582,881			2,544,429			2,276,705			2,408,598			2,541,313
Total liabilities		8,640,502			8,576,628			8,386,817			8,525,169			8,686,602
Stockholders’ equity:
Common stock ($0.01 par value) (1)		732			736			737			649			653
Paid-in capital		1,016,973			1,021,338			1,026,265			835,232			842,613
Retained earnings		240,739			276,089			308,912			344,104			383,847
Treasury stock		—			—			—			—			—
Accumulated other comprehensive income (loss), net:
Net unrealized investment gains (losses) not other-than-temporarily impaired		96,542			105,646			99,257			97,082			107,598
Net unrealized investment losses other-than-temporarily impaired		(2,275	)		(2,275	)		(2,363	)		(1,665	)		(1,981
Cumulative translation adjustment		57,498			58,541			46,982			51,248			54,584
Total stockholders’ equity		1,410,210			1,460,076			1,479,790			1,326,650			1,387,314
Total liabilities and stockholders' equity	$	10,050,712		$	10,036,703		$	9,866,607		$	9,851,820		$	10,073,917

Reconciliation of Adjusted Stockholders' Equity to Total Stockholders' Equity
Adjusted stockholders' equity	$	1,315,943		$	1,356,704		$	1,382,895		$	1,231,233		$	1,281,697
Reconciling items:
Net unrealized investment gains (losses) not other-than-temporarily impaired		96,542			105,646			99,257			97,082			107,598
Net unrealized investment losses other-than-temporarily impaired		(2,275	)		(2,275	)		(2,363	)		(1,665	)		(1,981	)
Total reconciling items		94,268			103,372			96,894			95,417			105,617
Total stockholders’ equity	$	1,410,210		$	1,460,076		$	1,479,790		$	1,326,650		$	1,387,314

Deferred Policy Acquisition Costs Rollforward
Balance, beginning of period	$	738,946		$	786,055		$	833,784		$	864,623		$	904,485
General expenses deferred		7,381			8,410			7,625			7,754			7,003
Commission costs deferred		56,822			62,091			61,785			58,793			60,116
Amortization of deferred policy acquisition costs		(23,229	)		(23,975	)		(26,645	)		(30,185	)		(26,531	)
Foreign currency impact and other, net		6,135			1,203			(11,927	)		3,501			3,015
Balance, end of period	$	786,055		$	833,784		$	864,623		$	904,485		$	948,087

(1)	Outstanding common shares exclude restricted stock units.

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

		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012		YOY Q1
(Dollars in thousands, except per-share data)		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012		Change			% Change
Earnings per Share
Basic earnings per share:
Weighted-average common shares and fully vested equity awards		72,671,481			73,457,333			73,658,253			69,366,432			65,133,035			(7,538,446	)		-10.4	%

Net income	$	47,272		$	37,620		$	35,096		$	37,204		$	41,756		$	(5,516	)		-11.7	%
Less income attributable to unvested participating securities		(1,895	)		(1,097	)		(988	)		(1,111	)		(1,357	)		538			28.4	%
Net income used in computing basic EPS	$	45,377		$	36,523		$	34,108		$	36,094		$	40,400		$	(4,978	)		-11.0	%
Basic earnings per share	$	0.62		$	0.50		$	0.46		$	0.52		$	0.62		$	(0.00	)		-0.7	%

Net operating income	$	43,441		$	38,592		$	37,301		$	36,652		$	42,377		$	(1,065	)		-2.5	%
Less operating income attributable to unvested participating securities		(1,741	)		(1,126	)		(1,051	)		(1,094	)		(1,377	)		364			20.9	%
Net operating income used in computing basic operating EPS	$	41,700		$	37,467		$	36,250		$	35,558		$	41,000		$	(701	)		-1.7	%
Basic operating income per share	$	0.57		$	0.51		$	0.49		$	0.51		$	0.63		$	0.06			9.7	%

Diluted earnings per share:
Weighted-average common shares and fully vested equity awards		72,671,481			73,457,333			73,658,253			69,366,432			65,133,035			(7,538,446	)		-10.4	%
Dilutive impact of warrants		1,154,597			743,814			541,184			802,787			1,141,687			(12,910	)		-1.1	%
Shares used to calculate diluted EPS		73,826,078			74,201,147			74,199,437			70,169,219			66,274,722			(7,551,356	)		-10.2	%

Net income	$	47,272		$	37,620		$	35,096		$	37,204		$	41,756		$	(5,516	)		-11.7	%
Less income attributable to unvested participating securities		(1,867	)		(1,087	)		(982	)		(1,099	)		(1,335	)		531			28.5	%
Net income used in computing diluted EPS	$	45,405		$	36,533		$	34,115		$	36,105		$	40,421		$	(4,984	)		-11.0	%
Diluted earnings per share	$	0.62		$	0.49		$	0.46		$	0.51		$	0.61		$	(0.01	)		-0.8	%

Net operating income	$	43,441		$	38,592		$	37,301		$	36,652		$	42,377		$	(1,065	)		-2.5	%
Less operating income attributable to unvested participating securities		(1,715	)		(1,115	)		(1,044	)		(1,083	)		(1,355	)		360			21.0	%
Net operating income used in computing diluted operating EPS	$	41,726		$	37,477		$	36,257		$	35,570		$	41,022		$	(704	)		-1.7	%
Diluted operating income per share	$	0.57		$	0.51		$	0.49		$	0.51		$	0.62		$	0.05			9.5	%

		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012		YOY Q1
		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012		Change			% Change
Annualized Return on Equity
Average stockholders' equity	$	1,383,369		$	1,435,143		$	1,469,933		$	1,403,220		$	1,356,982		$	(26,387	)		-1.9	%
Average adjusted stockholders' equity	$	1,288,212		$	1,336,324		$	1,369,800		$	1,307,064		$	1,256,465		$	(31,746	)		-2.5	%

Net income return on stockholders' equity		13.7	%		10.5	%		9.6	%		10.6	%		12.3	%		-1.4	%	nm
Net income return on adjusted stockholders' equity		14.7	%		11.3	%		10.2	%		11.4	%		13.3	%		-1.4	%	nm

Net operating income return on adjusted stockholders' equity		13.5	%		11.6	%		10.9	%		11.2	%		13.5	%		0.0	%	nm

Capital Structure
Debt-to-capital (1)		17.5	%		17.0	%		16.9	%		18.4	%		17.8	%		0.2	%	nm

Cash and invested assets to stockholders' equity		1.7	x		1.6	x		1.6	x		1.6	x		1.6	x		(0.1x	)	nm
Cash and invested assets to adjusted stockholders' equity		1.8	x		1.7	x		1.7	x		1.8	x		1.7	x		(0.1x	)	nm

Share count, end of period (2)		73,187,837			73,603,111			73,740,120			64,882,643			65,303,547			(7,884,290	)		-10.8	%
Adjusted stockholders' equity per share	$	17.98		$	18.43		$	18.75		$	18.98		$	19.63		$	1.65			9.2	%

Financial Strength Ratings - Primerica Life Insurance Company
Moody's	na			A2			A2			A2			A2			nm			nm
S&P	AA-			AA-			AA-			AA-			AA-			nm			nm
A.M. Best	A+			A+			A+			A+			A+			nm			nm
Fitch	A+			A+			A+			A+			A+			nm			nm

Holding Company Senior Debt Ratings
Moody's	na			Baa2			Baa2			Baa2			Baa2			nm			nm
S&P	na			A-			A-			A-			A-			nm			nm
A.M. Best	na			a-			a-			a-			a-			nm			nm

(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).

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Statements of Income	PRIMERICA, INC.
	Financial Supplement

																YOY Q1
(Dollars in thousands)		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012		$ Change			% Change
Statement of Income
Revenues:
Direct premiums	$	552,069		$	560,881		$	560,739		$	555,778		$	561,037		$	8,968			1.6	%
Ceded premiums		(422,238	)		(435,564	)		(425,643	)		(419,630	)		(418,163	)		4,074			1.0	%
Net premiums		129,831			125,317			135,096			136,148			142,874			13,042			10.0	%
Net investment income		28,626			27,229			27,103			25,644			26,097			(2,529	)		-8.8	%
Commissions and fees:
Sales-based (1)		43,128			44,904			42,244			40,086			44,467			1,339			3.1	%
Asset-based (2)		44,825			45,348			41,996			40,889			43,722			(1,104	)		-2.5	%
Account-based (3)		10,432			11,811			10,140			9,615			9,373			(1,059	)		-10.1	%
Other commissions and fees		7,731			6,635			6,502			6,693			6,343			(1,388	)		-18.0	%
Realized investment (losses) gains		327			2,035			(178	)		4,256			2,132			1,805		nm
Other, net		11,452			11,816			12,887			12,526			11,594			142			1.2	%
Total revenues		276,352			275,095			275,790			275,855			286,601			10,250			3.7	%
Benefits and expenses:
Benefits and claims		57,635			57,272			64,101			63,688			67,933			10,299			17.9	%
Amortization of DAC		23,229			23,975			26,645			30,185			26,531			3,302			14.2	%
Insurance commissions		8,998			9,532			10,536			9,553			8,496			(501	)		-5.6	%
Insurance expenses		15,798			26,988			22,133			24,273			22,444			6,646			42.1	%
Sales commissions:
Sales-based (1)		30,553			31,389			29,640			26,805			31,600			1,047			3.4	%
Asset-based (2)		15,451			15,111			13,805			13,534			14,745			(706	)		-4.6	%
Other sales commissions		4,434			3,774			3,692			3,534			3,371			(1,062	)		-24.0	%
Interest expense		6,997			6,998			7,000			6,973			6,910			(87	)		-1.2	%
Other operating expenses		40,001			41,590			42,732			40,630			41,104			1,102			2.8	%
Total benefits and expenses		203,095			216,630			220,285			219,175			223,135			20,040			9.9	%
Income before income taxes		73,256			58,465			55,505			56,681			63,466			(9,791	)		-13.4	%
Income taxes		25,985			20,845			20,409			19,477			21,709			(4,275	)		-16.5	%
Net income	$	47,272		$	37,620		$	35,096		$	37,204		$	41,756		$	(5,516	)		-11.7	%

Income Before Income Taxes by Segment
Term Life	$	49,716		$	36,027		$	39,663		$	37,045		$	44,283		$	(5,432	)		-10.9	%
Investment & Savings Products		31,039			30,470			26,746			28,821			28,869			(2,169	)		-7.0	%
Corporate & Other Distributed Products		(7,498	)		(8,032	)		(10,903	)		(9,185	)		(9,687	)		(2,189	)		-29.2	%
Income before income taxes	$	73,256		$	58,465		$	55,505		$	56,681		$	63,466		$	(9,791	)		-13.4	%

(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

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

																YOY Q1
		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012		$ Change			% Change
(Dollars in thousands)		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012		$ Change			% Change
Reconciliation from Operating Revenues to Total Revenues
Operating revenues	$	267,296		$	273,060		$	275,968		$	271,600		$	284,469		$	17,173			6.4	%

Operating revenues reconciling items:
Realized investment gains/losses		327			2,035			(178	)		4,256			2,132		nm			nm
Ceded premiums - reinsurance recoveries		8,729			—			—			—			—		nm			nm
Total operating revenues reconciling items		9,056			2,035			(178	)		4,256			2,132		nm			nm

Total revenues	$	276,352		$	275,095		$	275,790		$	275,855		$	286,601		$	10,250			3.7	%


Reconciliation from Operating Income Before Income Taxes to Income Before Income Taxes
Operating income before income taxes	$	67,321		$	59,976		$	58,992		$	55,840		$	64,409		$	(2,912	)		-4.3	%

Operating income before income taxes reconciling items:
Realized investment gains/losses		327			2,035			(178	)		4,256			2,132		nm			nm
Ceded premiums - reinsurance recoveries		8,729			—			—			—			—		nm			nm
Initial & accelerated management / field grant expense		(3,120	)		(3,546	)		(3,309	)		(3,415	)		(3,075	)	nm			nm
Total operating income before income taxes reconciling items		5,936			(1,510	)		(3,487	)		841			(943	)	nm			nm

Income before income taxes	$	73,256		$	58,465		$	55,505		$	56,681		$	63,466		$	(9,791	)		-13.4	%


Reconciliation from Net Operating Income to Net Income
Net operating income	$	43,441		$	38,592		$	37,301		$	36,652		$	42,377		$	(1,065	)		-2.5	%

Net operating income reconciling items:
Operating income before income taxes reconciling items		5,936			(1,510	)		(3,487	)		841			(943	)	nm			nm
Tax impact of operating income reconciling items at effective tax rate		(2,105	)		539			1,282			(289	)		323		nm			nm
Total net operating income reconciling items		3,830			(972	)		(2,205	)		552			(621	)	nm			nm

Net income	$	47,272		$	37,620		$	35,096		$	37,204		$	41,756		$	(5,516	)		-11.7	%

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Segment Operating Results	PRIMERICA, INC.
	Financial Supplement

																YOY Q1
(Dollars in thousands)		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012		$ Change			% Change
Term Life Insurance
Revenues:
Direct premiums	$	532,167		$	540,283		$	539,693		$	537,450		$	542,157		$	9,990			1.9	%
Ceded premiums		(427,382	)		(431,890	)		(421,933	)		(416,477	)		(414,559	)		12,822			3.0	%
Net premiums		104,786			108,393			117,760			120,973			127,598			22,812			21.8	%
Allocated net investment income		15,794			15,669			15,664			15,560			16,659			865			5.5	%
Other, net		7,653			7,580			8,289			8,144			7,547			(106	)		-1.4	%
Operating revenues		128,233			131,641			141,713			144,678			151,805			23,571			18.4	%
Benefits and expenses:
Benefits and claims		47,351			43,921			52,067			53,820			57,509			10,158			21.5	%
Amortization of DAC		20,127			19,894			22,289			27,163			23,933			3,806			18.9	%
Insurance commissions		4,063			5,320			5,633			4,380			3,577			(486	)		-12.0	%
Insurance expenses		12,833			23,607			19,186			19,421			19,717			6,884			53.6	%
Interest expense		2,872			2,873			2,875			2,848			2,785			(87	)		-3.0	%
Operating benefits and expenses		87,246			95,615			102,050			107,633			107,521			20,275			23.2	%
Operating income before income taxes	$	40,987		$	36,027		$	39,663		$	37,045		$	44,283		$	3,296			8.0	%

Investment & Savings Products
Revenues:
Commissions and fees:
Sales-based	$	43,128		$	44,904		$	42,244		$	40,086		$	44,467		$	1,339			3.1	%
Asset-based		44,825			45,348			41,996			40,889			43,722			(1,104	)		-2.5	%
Account-based		10,432			11,811			10,140			9,615			9,373			(1,059	)		-10.1	%
Other, net		2,461			2,522			3,105			3,196			2,572			110			4.5	%
Operating revenues		100,846			104,586			97,485			93,786			100,133			(713	)		-0.7	%
Benefits and expenses:
Amortization of DAC		2,785			3,751			4,034			1,913			3,223			438			15.7	%
Insurance commissions		2,140			2,344			2,277			2,089			2,149			9			0.4	%
Sales commissions:
Sales-based		30,553			31,389			29,640			26,805			31,600			1,047			3.4	%
Asset-based		15,451			15,111			13,805			13,534			14,745			(706	)		-4.6	%
Other operating expenses		18,878			21,519			20,984			20,624			19,547			668			3.5	%
Operating benefits and expenses		69,807			74,115			70,740			64,964			71,264			1,457			2.1	%
Operating income before income taxes	$	31,039		$	30,470		$	26,746		$	28,821		$	28,869		$	(2,169	)		-7.0	%

Corporate & Other Distributed Products
Revenues:
Direct premiums	$	19,902		$	20,597		$	21,046		$	18,328		$	18,880		$	(1,022	)		-5.1	%
Ceded premiums		(3,585	)		(3,674	)		(3,710	)		(3,153	)		(3,604	)		(19	)		-0.5	%
Net premiums		16,317			16,924			17,336			15,174			15,276			(1,041	)		-6.4	%

Allocated net investment income		12,831			11,560			11,439			10,083			9,437			(3,394	)		-26.5	%
Commissions and fees:
Loans		1,528			1,202			1,126			1,134			913			(615	)		-40.3	%
DebtWatchers		1,071			805			840			791			717			(354	)		-33.1	%
Prepaid Legal Services		2,619			2,345			2,329			2,321			2,289			(331	)		-12.6	%
Auto and Homeowners Insurance		1,687			1,507			1,427			1,606			1,689			2			0.1	%
Long-Term Care Insurance		825			775			764			835			724			(102	)		-12.3	%
Other sales commissions		1			0			16			5			12			11		nm
Other, net		1,337			1,715			1,493			1,186			1,475			138			10.3	%
Operating revenues		38,216			36,833			36,770			33,136			32,531			(5,685	)		-14.9	%
Benefits and expenses:
Benefits and claims		10,284			13,352			12,034			9,867			10,424			140			1.4	%
Amortization of DAC		317			330			322			1,110			(625	)		(942	)	nm
Insurance commissions		2,794			1,867			2,626			3,084			2,770			(24	)		-0.9	%
Insurance expenses		2,965			3,381			2,947			4,851			2,727			(238	)		-8.0	%
Sales commissions		4,434			3,774			3,692			3,534			3,371			(1,062	)		-24.0	%
Interest expense		4,125			4,125			4,125			4,125			4,125			—		nm
Other operating expenses		18,003			16,525			18,440			16,591			18,482			479			2.7	%
Operating benefits and expenses		42,922			43,354			44,186			43,162			41,275			(1,647	)		-3.8	%
Operating income before income taxes	$	(4,705	)	$	(6,521	)	$	(7,416	)	$	(10,026	)	$	(8,744	)	$	(4,039	)		-85.8	%

8 of 16

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

(Dollars in thousands)																YOY Q1
Term Life Insurance Operating Income Before Income Taxes		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012		$ Change			% Change
Revenues:
Direct premiums	$	532,167		$	540,283		$	539,693		$	537,450		$	542,157		$	9,990			1.9	%
Ceded premiums		(427,382	)		(431,890	)		(421,933	)		(416,477	)		(414,559	)		12,822			3.0	%
Net premiums		104,786			108,393			117,760			120,973			127,598			22,812			21.8	%
Allocated net investment income		15,794			15,669			15,664			15,560			16,659			865			5.5	%
Other, net		7,653			7,580			8,289			8,144			7,547			(106	)		-1.4	%
Operating revenues		128,233			131,641			141,713			144,678			151,805			23,571			18.4	%
Benefits and expenses:
Benefits and claims		47,351			43,921			52,067			53,820			57,509			10,158			21.5	%
Amortization of DAC		20,127			19,894			22,289			27,163			23,933			3,806			18.9	%
Insurance commissions		4,063			5,320			5,633			4,380			3,577			(486	)		-12.0	%
Insurance expenses		12,833			23,607			19,186			19,421			19,717			6,884			53.6	%
Interest expense		2,872			2,873			2,875			2,848			2,785			(87	)		-3.0	%
Operating benefits and expenses		87,246			95,615			102,050			107,633			107,521			20,275			23.2	%
Operating income before income taxes	$	40,987		$	36,027		$	39,663		$	37,045		$	44,283		$	3,296			8.0	%

New Term Life Insurance Operating Income Before Income Taxes (1)
Revenues:
Direct premiums	$	46,771		$	56,581		$	64,655		$	71,240		$	79,146		$	32,375			69.2	%
Ceded premiums		(8,075	)		(9,320	)		(8,513	)		(8,753	)		(13,012	)		(4,937	)		-61.1	%
Net premiums		38,697			47,261			56,142			62,487			66,134			27,438			70.9	%
Allocated net investment income		630			722			986			1,195			1,302			672			106.6	%
Other, net		7,614			7,605			8,287			8,151			7,501			(113	)		-1.5	%
Operating revenues		46,941			55,588			65,415			71,833			74,938			27,997			59.6	%
Benefits and expenses:
Benefits and claims		14,002			17,380			21,086			23,261			25,056			11,054			78.9	%
Amortization of DAC		9,249			8,324			11,193			14,893			14,674			5,425			58.7	%
Insurance commissions		3,737			5,052			5,366			4,123			3,364			(372	)		-10.0	%
Insurance expenses		21,976			32,353			28,054			28,915			28,133			6,157			28.0	%
Interest expense		—			—			—			—			—			—		nm
Operating benefits and expenses		48,963			63,109			65,700			71,193			71,227			22,263			45.5	%
Operating income before income taxes	$	(2,023	)	$	(7,520	)	$	(284	)	$	640		$	3,711		$	5,734		nm

Legacy Term Life Insurance Operating Income Before Income Taxes (2)
Revenues:
Direct premiums	$	485,396		$	483,702		$	475,038		$	466,211		$	463,011		$	(22,385	)		-4.6	%
Ceded premiums		(419,307	)		(422,570	)		(413,421	)		(407,724	)		(401,548	)		17,759			4.2	%
Net premiums		66,089			61,132			61,618			58,487			61,464			(4,626	)		-7.0	%
Allocated net investment income		15,164			14,947			14,678			14,365			15,357			193			1.3	%
Other, net		39			(26	)		2			(7	)		46			7			17.3	%
Operating revenues		81,293			76,053			76,298			72,845			76,867			(4,426	)		-5.4	%
Benefits and expenses:
Benefits and claims		33,349			26,541			30,981			30,560			32,453			(896	)		-2.7	%
Amortization of DAC		10,878			11,571			11,096			12,270			9,259			(1,619	)		-14.9	%
Insurance commissions		327			268			267			257			213			(114	)		-34.9	%
Insurance expenses		9,366			9,466			9,014			7,989			9,162			(203	)		-2.2	%
Insurance expense allowance		(18,508	)		(18,212	)		(17,883	)		(17,483	)		(17,579	)		929			5.0	%
Interest expense		2,872			2,873			2,875			2,848			2,785			(87	)		-3.0	%
Operating benefits and expenses		38,283			32,506			36,351			36,441			36,294			(1,989	)		-5.2	%
Operating income before income taxes	$	43,010		$	43,547		$	39,947		$	36,405		$	40,573		$	(2,437	)		-5.7	%


(1	)	Represents results associated with business written subsequent to the 2010 Citi reinsurance transactions.
(2	)	Represents results associated with business subject to the 2010 Citi reinsurance transactions.

9 of 16

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

																YOY Q1
(Dollars in thousands, except as noted)		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012		$ Change			% Change
Key Statistics

Life-insurance licensed sales force, beginning of period		94,850			92,212			90,519			91,970			91,176			(3,674	)		-3.9	%
New life-licensed representatives		7,145			8,061			10,334			8,171			7,650			505			7.1	%
Non-renewal and terminated representatives		(9,783	)		(9,754	)		(8,883	)		(8,965	)		(9,175	)		608			6.2	%
Life-insurance licensed sales force, end of period		92,212			90,519			91,970			91,176			89,651			(2,561	)		-2.8	%

Estimated annualized issued term life premium ($mills) (1):
Premium from new policies	$	41.1		$	47.5		$	50.1		$	48.9		$	44.7		$	3.6			8.8	%
Additions and increases in premium		10.4			11.4			11.5			11.6			10.7			0.3			2.9	%
Total estimated annualized issued term life premium	$	51.5		$	58.9		$	61.7		$	60.4		$	55.4		$	3.9			7.6	%

Issued term life policies		51,281			59,826			65,067			61,361			56,145			4,864			9.5	%
Estimated average annualized issued term life premium per policy (1)(2)	$	802		$	794		$	771		$	796		$	797		$	(5	)		-0.6	%

Term life face amount in-force, beginning of period ($mills)	$	656,791		$	658,523		$	663,617		$	666,182		$	664,955		$	8,164			1.2	%
Issued term life face amount (3)		16,735			18,974			18,885			18,552			16,983			248			1.5	%
Terminated term life face amount		(17,247	)		(14,724	)		(16,221	)		(18,760	)		(16,307	)		939			5.4	%
Foreign currency impact, net		2,244			843			(98	)		(1,019	)		(1,208	)		(3,452	)	nm
Term life face amount in-force, end of period	$	658,523		$	663,617		$	666,182		$	664,955		$	664,423		$	5,900			0.9	%


New Term Life Insurance - Financial Analysis

Direct premium	$	46,771		$	56,581		$	64,655		$	71,240		$	79,146			32,375			69.2	%

New term life operating income before income taxes	$	(2,023	)	$	(7,520	)	$	(284	)	$	640		$	3,711			5,734		nm
% of direct premium		-4.3	%		-13.3	%		-0.4	%		0.9	%		4.7	%	nm			nm

Benefits & expenses, net (4)	$	35,063		$	40,076		$	46,158		$	51,030		$	56,105			21,043			60.0	%
% of direct premium		75.0	%		70.8	%		71.4	%		71.6	%		70.9	%	nm			nm

Insurance expenses, net (5)	$	14,362		$	24,747		$	19,768		$	20,764		$	20,632			6,270			43.7	%
% of direct premium		30.7	%		43.7	%		30.6	%		29.1	%		26.1	%	nm			nm


Legacy Term Life Insurance - Financial Analysis

Direct premium	$	485,396		$	483,702		$	475,038		$	466,211		$	463,011			(22,385	)		-4.6	%

Legacy term life operating income before income taxes	$	43,010		$	43,547		$	39,947		$	36,405		$	40,573			(2,437	)		-5.7	%
% of direct premium		8.9	%		9.0	%		8.4	%		7.8	%		8.8	%	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)	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
(4)	Benefits & expenses, net - includes total benefits & claims, ceded premiums, insurance commissions, and amortization of deferred policy acquisition costs
(5)	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

(Dollars in thousands, except as noted)																YOY Q1
Investment & Savings Products Operating Income Before Income Taxes		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012		$ Change			% Change
Revenues:
Commissions and fees:
Sales-based	$	43,128		$	44,904		$	42,244		$	40,086		$	44,467		$	1,339			3.1	%
Asset-based		44,825			45,348			41,996			40,889			43,722			(1,104	)		-2.5	%
Account-based		10,432			11,811			10,140			9,615			9,373			(1,059	)		-10.1	%
Other, net		2,461			2,522			3,105			3,196			2,572			110			4.5	%
Operating revenues		100,846			104,586			97,485			93,786			100,133			(713	)		-0.7	%
Benefits and expenses:
Amortization of DAC		2,785			3,751			4,034			1,913			3,223			438			15.7	%
Insurance commissions		2,140			2,344			2,277			2,089			2,149			9			0.4	%
Sales commissions:
Sales-based		30,553			31,389			29,640			26,805			31,600			1,047			3.4	%
Asset-based		15,451			15,111			13,805			13,534			14,745			(706	)		-4.6	%
Other operating expenses		18,878			21,519			20,984			20,624			19,547			668			3.5	%
Operating benefits and expenses		69,807			74,115			70,740			64,964			71,264			1,457			2.1	%
Operating income before income taxes	$	31,039		$	30,470		$	26,746		$	28,821		$	28,869		$	(2,169	)		-7.0	%


Key Statistics
Product sales ($mills)
Retail Mutual Funds	$	646.0		$	603.1		$	498.3		$	482.5		$	611.9		$	(34.1	)		-5.3	%
Variable Annuities and other		344.6			458.0			483.4			388.4			428.9			84.3			24.5	%
Total sales-based revenue generating product sales		990.6			1,061.1			981.7			870.9			1,040.8			50.2			5.1	%
Managed Mutual Funds		—			0.2			11.8			16.6			23.1			23.1		nm
Segregated Funds		123.1			74.2			66.6			68.4			123.7			0.7			0.5	%
Total product sales	$	1,113.7		$	1,135.5		$	1,060.0		$	955.8		$	1,187.7		$	74.0			6.6	%

Client asset values, beginning of period ($mills)	$	34,869		$	36,187		$	36,020		$	31,623		$	33,664		$	(1,205	)		-3.5	%
Inflows		1,114			1,136			1,060			956			1,188			74			6.6	%
Outflows (1)		(1,083	)		(1,118	)		(1,091	)		(983	)		(1,233	)		(150	)		-13.8	%
Net flows		31			18			(31	)		(27	)		(45	)		(76	)	nm
Change in market value, net and other (2)		1,288			(185	)		(4,365	)		2,068			2,660			1,372		nm
Client asset values, end of period	$	36,187		$	36,020		$	31,623		$	33,664		$	36,279		$	91			0.3	%

Average client asset values ($mills)
Retail Mutual Funds	$	24,882		$	25,330		$	23,500		$	22,583		$	23,694		$	(1,188	)		-4.8	%
Managed Mutual Funds		—			0			21			104			212			212		nm
Variable Annuities and other		8,242			8,588			8,192			8,083			8,717			475			5.8	%
Segregated Funds		2,477			2,545			2,479			2,454			2,499			21			0.9	%
Total	$	35,602		$	36,463		$	34,192		$	33,224		$	35,122		$	(480	)		-1.3	%

Average number of fee-generating accounts (thous) (3)		2,662			2,611			2,626			2,611			2,584			(78	)		-2.9	%


Financial Analysis

Sales-based net revenue as % of sales (4)		1.27	%		1.27	%		1.28	%		1.53	%		1.24	%	nm			nm

Asset-based net revenue as % of average asset values (5)		0.07	%		0.07	%		0.06	%		0.07	%		0.07	%	nm			nm

Account-based revenue per average fee generating account (6)	$	3.92		$	4.52		$	3.86		$	3.68		$	3.63		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 8% 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 March 31, 2012
								% 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 and cash equivalents	$	155,536	$	155,536	$	—			7.3	%		7.9	%

Fixed Income:
Treasury		38,401		34,601		3,800			1.8	%		1.8	%		3.03	%	AAA
Government		116,610		101,785		14,826			5.4	%		5.2	%		4.71	%	AA
Tax-Exempt Municipal		7,068		6,645		423			0.3	%		0.3	%		3.32	%	AA-
Corporate		1,226,933		1,115,047		111,886			57.3	%		56.6	%		5.80	%	BBB+
Mortgage-Backed		255,367		234,480		20,887			11.9	%		11.9	%		5.47	%	AA+
Asset-Backed		53,155		54,638		(1,482	)		2.5	%		2.8	%		1.41	%	AA
CMBS		125,899		118,821		7,078			5.9	%		6.0	%		4.94	%	AAA
Private		118,962		112,732		6,230			5.6	%		5.7	%		5.79	%	BBB
Redeemable Preferred		869		1,389		(519	)		0.0	%		0.1	%		45.71	%	A-
Convertible		11,040		10,564		477			0.5	%		0.5	%		3.60	%	A
Total Fixed Income		1,954,306		1,790,701		163,605			91.3	%		90.9	%		5.46	%	A

Equities:
Perpetual Preferred		3,507		3,085		422			0.2	%		0.2	%
Common Stock		11,519		8,546		2,974			0.5	%		0.4	%
Mutual Fund		7,781		4,153		3,628			0.4	%		0.2	%
Other		8,894		8,894		0			0.4	%		0.5	%
Total Equities		31,702		24,678		7,024			1.5	%		1.3	%

Total Invested Assets	$	2,141,544	$	1,970,915	$	170,629			100.0	%		100.0	%
			OK
Corporate Portfolio by Sector

Banking	$	120,533	$	114,494	$	6,040			9.8	%		10.3	%
Basic Industry		93,432		84,257		9,175			7.6	%		7.6	%
Brokerage		17,413		15,704		1,709			1.4	%		1.4	%
Capital Goods		74,024		66,607		7,417			6.0	%		6.0	%
Communications		88,130		80,203		7,926			7.2	%		7.2	%
Consumer Cyclical		52,204		47,879		4,325			4.3	%		4.3	%
Consumer Non-Cyclical		147,058		130,243		16,815			12.0	%		11.7	%
Electric		121,011		106,037		14,974			9.9	%		9.5	%
Energy		84,588		75,908		8,680			6.9	%		6.8	%
Finance Companies		26,241		22,754		3,487			2.1	%		2.0	%
Financial Other		13,021		12,462		559			1.1	%		1.1	%
Industrial Other		34,263		31,279		2,984			2.8	%		2.8	%
Insurance		98,953		90,880		8,073			8.1	%		8.2	%
Natural Gas		62,071		56,201		5,870			5.1	%		5.0	%
REITs		113,413		106,256		7,156			9.2	%		9.5	%
Technology		59,563		55,073		4,489			4.9	%		4.9	%
Transportation		14,815		12,826		1,989			1.2	%		1.2	%
Utility Other		6,201		5,983		218			0.5	%		0.5	%
Total Corporate portfolio	$	1,226,933	$	1,115,047	$	111,886			100.0	%		100.0	%

Fixed-Maturity Securities - Effective Maturity
Fixed-Maturity Securities - Effective Maturity

Effective maturity
< 1 Yr.	$	182,894	$	180,486	$	2,407			9.4	%		10.1	%		4.13	%
1-2 Yrs.		278,342		262,154		16,188			14.2	%		14.6	%		5.69	%
2-5 Yrs.		702,523		648,228		54,295			35.9	%		36.2	%		5.27	%
5-10 Yrs.		733,986		652,099		81,887			37.6	%		36.4	%		5.86	%
> 10 Yrs.		56,561		47,733		8,829			2.9	%		2.7	%		6.40	%
Total Fixed Income	$	1,954,306	$	1,790,701	$	163,605			100.0	%		100.0	%		5.46	%	OK

Duration

Fixed Income portfolio duration		3.7	years

12 of 16

Investment Portfolio - Quality Ratings As of March 31, 2012									PRIMERICA, INC.
									Financial Supplement

(Dollars in thousands)
Investment Portfolio Quality Ratings (1)
				Amortized Cost		% of Total
Total Fixed Income portfolio:
	Rating
	AAA			$	413,622		23.1	%
	AA				151,508		8.5	%
	A				416,351		23.3	%
	BBB				695,257		38.8	%
	Below Investment Grade				112,727		6.3	%
	NA				1,236		0.1	%	OK
			Total Fixed Income	$	1,790,701		100.0	%




				Amortized Cost		% of Total							Amortized Cost		% of Total
Corporate asset class:										Private asset class:
	Rating										Rating
	AAA			$	350		0.0	%			AAA		$	222		0.2	%
	AA				73,846		6.6	%			AA			6,458		5.7	%
	A				361,381		32.4	%			A			13,017		11.5	%
	BBB				601,797		54.0	%			BBB			75,428		66.9	%
	Below Investment Grade				76,624		6.9	%			Below Investment Grade			17,607		15.6	%
	NA				1,049		0.1	%	OK		NA			—		—
			Total Corporate	$	1,115,047		100.0	%				Total Private	$	112,732		100.0	%



CMBS asset class:										Mortgage-Backed asset class:
	Rating										Rating
	AAA			$	98,151		82.6	%			AAA		$	212,494		90.6	%
	AA				17,497		14.7	%			AA			5,554		2.4	%
	A				1,572		1.3	%			A			1,582		0.7	%
	BBB				1,284		1.1	%			BBB			3,350		1.4	%
	Below Investment Grade				308		0.3	%			Below Investment Grade			11,500		4.9	%
	NA				9		0.0	%	OK		NA			—		—
			Total CMBS	$	118,821		100.0	%				Total Mortgage-Backed	$	234,480		100.0	%



Asset-Backed asset class:										Treasury & Government asset classes:
	Rating										Rating
	AAA			$	46,006		84.2	%			AAA		$	56,399		41.4	%
	AA				838		1.5	%			AA			41,554		30.5	%
	A				1,135		2.1	%			A			28,815		21.1	%
	BBB				—		—				BBB			9,619		7.1	%
	Below Investment Grade				6,658		12.2	%			Below Investment Grade			—		—
	NA				—		—		OK		NA			—		—
			Total Asset-Backed	$	54,638		100.0	%				Total Treasury & Government	$	136,386		100.0	%



NAIC Designations

		1		$	850,668		53.0	%
		2			662,388		41.2	%
		3			60,513		3.8	%
		4			28,718		1.8	%
		5			1,548		0.1	%
		6			1,955		0.1	%
			U.S. Insurer Fixed Income (2)		1,605,790		100.0	%
	Other (3)				209,589
	Cash and cash equivalents				155,536
			Total Invested Assets	$	1,970,915	OK


(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 March 31, 2012	PRIMERICA, INC.
	Financial Supplement

(Dollars in thousands)			2004 and Prior			2005			2006			2007			2008			2009			2010			2011			2012			Total
Commercial Mortgage-Backed Securities			Amortized Cost by Vintage
Current Rating:
	AAA		$	45,421		$	22,231		$	4,003		$	7,265		$	566		$	5,933		$	683		$	11,191		$	858		$	98,151
	AA			7,245			10,251			—			—			—			—			—			—			—			17,497
	A			1,000			—			200			—			—			—			—			—			372			1,572
	BBB			1,284			—			—			—			—			—			—			—			—			1,284
	BB			108			—			—			—			—			—			—			—			—			108
	B			62			—			—			—			—			—			—			—			—			62
	CCC and lower			95			53			—			—			—			—			—			—			—			148
		Total	$	55,215		$	32,535		$	4,203		$	7,265		$	566		$	5,933		$	683		$	11,191		$	1,231		$	118,821
				46	%		27	%		4	%		6	%		0	%		5	%		1	%		9	%		1	%	OK
			Net Unrealized Gain/(Loss) by Vintage
Current Rating:
	AAA		$	1,767		$	1,399		$	650		$	573		$	8		$	458		$	6		$	613		$	2		$	5,477
	AA			418			681			—			—			—			—			—			—			—			1,099
	A			(44	)		—			12			—			—			—			—			—			27			(5	)
	BBB			(172	)		—			—			—			—			—			—			—			—			(172	)
	BB			324			—			—			—			—			—			—			—			—			324
	B			17			—			—			—			—			—			—			—			—			17
	CCC and lower			23			315			—			—			—			—			—			—			—			338
		Total	$	2,333		$	2,395		$	662		$	573		$	8		$	458		$	6		$	613		$	30		$	7,078

Prime Residential Mortgage-Backed Securities			Amortized Cost by Vintage
Current Rating:
	AAA		$	96,951		$	19,424		$	20,440		$	33,623		$	20,534		$	240		$	4,679		$	12,387		$	3,260		$	211,537
	AA			5,554			—			—			—			—			—			—			—			—			5,554
	A			1,136			446			—			—			—			—			—			—			—			1,582
	BBB			—			3,350			—			—			—			—			—			—			—			3,350
	BB			523			2,612			—			—			—			—			—			—			—			3,135
	B			—			896			—			—			—			—			—			—			—			896
	CCC and lower			—			2,747			—			1,438			—			—			—			—			—			4,185
		Total	$	104,164		$	29,474		$	20,440		$	35,061		$	20,534		$	240		$	4,679		$	12,387		$	3,260		$	230,238
				45	%		13	%		9	%		15	%		9	%		0	%		2	%		5	%		1	%
			Net Unrealized Gain/(Loss) by Vintage
Current Rating:
	AAA		$	10,605		$	1,106		$	2,387		$	3,235		$	2,422		$	20		$	240		$	769		$	151		$	20,936
	AA			144			—			—			—			—			—			—			—			—			144
	A			8			4			—			—			—			—			—			—			—			12
	BBB			—			(36	)		—			—			—			—			—			—			—			(36	)
	BB			20			(128	)		—			—			—			—			—			—			—			(108	)
	B			—			(0	)		—			—			—			—			—			—			—			(0	)
	CCC and lower			—			(144	)		—			27			—			—			—			—			—			(117	)
		Total	$	10,777		$	803		$	2,387		$	3,262		$	2,422		$	20		$	240		$	769		$	151		$	20,832

Alt-A Residential Mortgage-Backed Securities			Amortized Cost by Vintage
Current Rating:
	AAA		$	—		$	957		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	957
	AA			—			—			—			—			—			—			—			—			—			—
	A			—			—			—			—			—			—			—			—			—			—
	BBB			—			—			—			—			—			—			—			—			—			—
	BB			431			—			—			—			—			—			—			—			—			431
	B			—			2,622			—			—			—			—			—			—			—			2,622
	CCC and lower			—			231			—			—			—			—			—			—			—			231
		Total	$	431		$	3,811		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	4,242
				10	%		90	%		0	%		0	%		0	%		0	%		0	%		0	%		0	%
			Net Unrealized Gain/(Loss) by Vintage
Current Rating:
	AAA		$	—		$	50		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	50
	AA			—			—			—			—			—			—			—			—			—			—
	A			—			—			—			—			—			—			—			—			—			—
	BBB			—			—			—			—			—			—			—			—			—			—
	BB			18			—			—			—			—			—			—			—			—			18
	B			—			2			—			—			—			—			—			—			—			2
	CCC and lower			—			(15	)		—			—			—			—			—			—			—			(15	)
		Total	$	18		$	37		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	55

14 of 16

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

																	YOY Q1
(Dollars in thousands)			Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012		$ Change			% Change
Net Investment Income by Source
Bonds & notes		$	29,014		$	27,462		$	27,413		$	26,019		$	25,762		$	(3,252	)		-11.2	%
Preferred and common stocks			188			165			170			194			223			35			18.6	%
Deposit asset underlying 10% reinsurance treaty			508			650			449			412			1,030			522			102.8	%
Policy loans			347			306			441			326			314			(33	)		-9.5	%
Cash & cash equivalents			70			65			63			109			135			65			92.9	%
Other			(19	)		13			—			—			37			56		nm
	Total investment income		30,108			28,662			28,536			27,060			27,500			(2,608	)		-8.7	%
Investment expenses			1,482			1,433			1,433			1,417			1,403			(79	)		-5.3	%
	Net investment income	$	28,626		$	27,229		$	27,103		$	25,643		$	26,097		$	(2,529	)		-8.8	%
Fixed income book yield, end of period			5.30	%		5.38	%		5.33	%		5.52	%		5.46	%
New money yield			2.72	%		4.45	%		2.42	%		3.69	%		2.69	%

												YOY Q1
		Q1 2011		Q2 2011		Q3 2011		Q4 2011		Q1 2011		% Pt Change
Fixed Income Portfolio Quality Ratings
Rating
AAA		26.1	%	25.3	%	24.9	%	23.5	%	23.1	%		-3.0	%
AA		9.5	%	9.8	%	9.9	%	8.3	%	8.5	%		-1.0	%
A		22.4	%	22.6	%	22.6	%	23.7	%	23.3	%		0.9	%
BBB		35.8	%	35.9	%	35.9	%	37.6	%	38.8	%		3.0	%
Below Investment Grade		6.2	%	6.3	%	6.6	%	6.9	%	6.3	%		0.1	%
NA		0.0	%	0.1	%	0.0	%	0.0	%	0.1	%		0.0	%
	Total Fixed Income	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	nm

	Average rating by amortized cost	A		A		A		A		A		na

				As of March 31, 2012									As of March 31, 2012						As of March 31, 2012
				Market Value			Amortized Cost			Credit Rating			Market Value		Amortized Cost				Market Value		Amortized Cost
Top 25 Exposures											Foreign Exposure (1)						Government Investments (1)

	1	Government of Canada		$	39,134		$	35,481		AAA	United Kingdom		$	62,762	$	58,201	AAA		$	—	$	—
	2	Verizon Communications Inc			13,086			11,496		A-	Canada			52,872		48,742	AA			1,766		1,575
	3	General Electric Co			12,985			11,449		AA+	Australia			49,146		45,154	A			19,856		18,489
	4	Prologis Inc			12,627			11,746		BBB-	France			26,783		25,703	BBB			10,843		9,619
	5	Bank of America Corp			12,559			11,674		A-	Brazil			19,706		17,405	Below Investment Grade			—		—
	6	Time Warner Cable Inc			12,276			11,914		BBB	Germany			18,335		17,113	NA			—		—
	7	ConocoPhillips			10,854			9,132		A	Korea Republic Of			14,313		13,497		Total	$	32,464	$	29,683
	8	Province of Ontario Canada			10,759			8,670		AA-	Netherlands			13,374		11,189
	9	National Rural Utilities Cooperative			10,379			7,184		A+	Italy			11,689		11,695
	10	Iberdrola SA			9,526			8,468		BBB+	Spain			11,371		11,532	Non-Government Investments (1)
	11	Health Care REIT Inc			9,470			9,136		BBB-	Hong Kong			10,490		10,149
	12	Reynolds American Inc			9,438			7,996		BBB-	Switzerland			8,745		7,237	AAA		$	—	$	—
	13	Altria Group Inc			9,158			7,411		BBB	Luxembourg			8,583		7,647	AA			27,835		25,472
	14	Republic of Korea			8,806			8,363		A	Mexico			8,221		7,532	A			121,988		113,450
	15	Edison International			8,542			7,531		B	Ireland			8,117		7,745	BBB			165,963		153,664
	16	Province of Quebec Canada			8,532			6,785		A+	Emerging Markets (2)			10,865		10,050	Below Investment Grade			18,247		18,572
	17	Hutchison Whampoa Ltd			8,421			8,065		A-	All Other			33,961		31,279	NA			2,834		1,029
	18	ArcelorMittal			8,192			7,284		BBB-		Total	$	369,332	$	341,871		Total	$	336,868	$	312,188
	19	Vale SA			8,036			7,129		A-			OK		OK
	20	Roche Holding AG			8,001			6,562		AA-
	21	Montpelier Re Holdings Ltd			7,684			7,207		BBB
	22	TE Connectivity Ltd			7,684			7,545		BBB
	23	Weatherford International Ltd/			7,480			6,552		BBB
	24	TESCO PLC			7,410			6,310		A-
	25	Ventas Inc			7,266			7,080		BBB
			Total	$	268,306		$	238,172

			% of total fixed income portfolio		12.5	%		12.1	%


	(1)	US$ denominated investments in issuers outside of the United States based on country of risk
	(2)	Emerging markets is as defined by MSCI, Inc. which include Chile, India, Peru, Poland and South Africa

15 of 16

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

(Dollars in millions)	2007			2008			2009			2010			2011				Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012


Recruits		220,950			235,125			221,920			231,390			244,756			52,813			65,138			83,074			43,731			58,551


Life-insurance licensed sales force, beginning of period		96,532			97,125			100,651			99,785			94,850			94,850			92,212			90,519			91,970			91,176
New life-licensed representatives		36,308			39,383			37,629			34,488			33,711			7,145			8,061			10,334			8,171			7,650
Non-renewal and terminated representatives		(35,715	)		(35,857	)		(38,495	)		(39,423	)		(37,385	)		(9,783	)		(9,754	)		(8,883	)		(8,965	)		(9,175	)
Life-insurance licensed sales force, end of period		97,125			100,651			99,785			94,850			91,176			92,212			90,519			91,970			91,176			89,651


Issued term life policies		244,733			241,173			233,837			223,514			237,535			51,281			59,826			65,067			61,361			56,145


Issued term life face amount	$	87,619		$	87,279		$	80,497		$	74,401		$	73,146		$	16,735		$	18,974		$	18,885		$	18,552		$	16,983


Term life face amount in force, beginning of period	$	599,470		$	632,086		$	633,467		$	650,195		$	656,791			656,791		$	658,523		$	663,617		$	666,182		$	664,955
Issued term life face amount		87,619			87,279			80,497			74,401			73,146			16,735			18,974			18,885			18,552			16,983
Terminated term life face amount		(64,966	)		(72,008	)		(74,642	)		(70,964	)		(66,951	)		(17,247	)		(14,724	)		(16,221	)		(18,760	)		(16,307	)
Foreign currency impact, net		9,963			(13,891	)		10,873			3,158			1,970			2,244			843			(98	)		(1,019	)		(1,208	)
Term life face amount in force, end of period	$	632,086		$	633,467		$	650,195		$	656,791		$	664,955		$	658,523		$	663,617		$	666,182		$	664,955		$	664,423


Estimated annualized issued term life premium
Premium from new policies	$	208.9		$	205.0		$	193.7		$	180.8		$	187.6		$	41.1		$	47.5		$	50.1		$	48.9		$	44.7
Additions and increases in premium		43.4			43.0			42.6			44.6			44.9			10.4			11.4			11.5			11.6			10.7
Total estimated annualized issued term life premium	$	252.4		$	248.0		$	236.3		$	225.4		$	232.5		$	51.5		$	58.9		$	61.7		$	60.4		$	55.4


Investment & Savings product sales	$	5,189.5		$	4,458.4		$	3,006.6		$	3,623.6		$	4,265.1		$	1,113.7		$	1,135.5		$	1,060.0		$	955.8		$	1,187.7

Investment & Savings average client asset values	$	36,735		$	32,763		$	26,845		$	31,908		$	34,870		$	35,602		$	36,463		$	34,192		$	33,224		$	35,122

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Primerica, Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - May 1, 2012

Attached files

Primerica, Inc. Reports