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

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8-K - PRIMERICA, INC. 8-K - Primerica, Inc.	a50365135.htm
EX-99.1 - EXHIBIT 99.1 - Primerica, Inc.	a50365135ex99_1.htm

Exhibit 99.2

Supplemental Financial Information

Second 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	12-14

Five-year historical key statistics	15

This document may contain forward-looking statements and information. Additional information and factors that could cause actual results to differ materially from any forward-looking statements or information in this document is available in our Form 10-K for the year ended December 31, 2011, as modified and updated by the Form 8-K filed on May 8, 2012 as well as the Form 10-Q for the quarter ended March 31, 2012.

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Preface

PRIMERICA, INC.

Financial Supplement

SECOND QUARTER 2012

This document is a financial supplement to our second 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.

3 of 15

Condensed Balance Sheets and Reconciliation of Balance Sheet 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			Jun 30, 2012
Condensed Balance Sheets
Assets:
	Investments and cash	$	2,330,098		$	2,297,013		$	2,319,873		$	2,157,582		$	2,167,231		$	2,016,842
	Due from reinsurers		3,769,599			3,793,995			3,818,759			3,855,318			3,895,162			3,903,028
	Deferred policy acquisition costs		786,055			833,784			864,623			904,485			948,087			990,558
	Other assets		582,079			567,482			586,647			525,836			522,123			540,010
	Separate account assets		2,582,881			2,544,429			2,276,705			2,408,598			2,541,313			2,500,640
	Total assets	$	10,050,712		$	10,036,703		$	9,866,607		$	9,851,820		$	10,073,917		$	9,951,077

Liabilities:
	Future policy benefits	$	4,470,185		$	4,532,615		$	4,557,535		$	4,614,860		$	4,676,374		$	4,723,359
	Other policy liabilities		604,487			588,202			589,826			589,542			606,793			593,956
	Income taxes		100,666			84,859			87,950			81,316			88,503			82,755
	Other liabilities		396,195			363,181			389,319			381,495			331,112			329,539
	Note payable		300,000			300,000			300,000			300,000			300,000			300,000
	Payable under securities lending		186,089			163,342			185,483			149,358			142,507			143,963
	Separate account liabilities		2,582,881			2,544,429			2,276,705			2,408,598			2,541,313			2,500,640
	Total liabilities		8,640,502			8,576,628			8,386,817			8,525,169			8,686,602			8,674,211
Stockholders’ equity:
	Common stock ($0.01 par value) (1)		732			736			737			649			653			599
	Paid-in capital		1,016,973			1,021,338			1,026,265			835,232			842,613			693,717
	Retained earnings		240,739			276,089			308,912			344,104			383,847			426,936
	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			107,187
	Net unrealized investment losses other-than-temporarily impaired		(2,275	)		(2,275	)		(2,363	)		(1,665	)		(1,981	)		(2,031	)
	Cumulative translation adjustment		57,498			58,541			46,982			51,248			54,584			50,457
	Total stockholders’ equity		1,410,210			1,460,076			1,479,790			1,326,650			1,387,314			1,276,866
	Total liabilities and stockholders' equity	$	10,050,712		$	10,036,703		$	9,866,607		$	9,851,820		$	10,073,917		$	9,951,077

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		$	1,171,709
Reconciling items:
	Net unrealized investment gains (losses) not other-than-temporarily impaired		96,542			105,646			99,257			97,082			107,598			107,187
	Net unrealized investment losses other-than-temporarily impaired		(2,275	)		(2,275	)		(2,363	)		(1,665	)		(1,981	)		(2,031	)
	Total reconciling items		94,268			103,372			96,894			95,417			105,617			105,156
	Total stockholders’ equity	$	1,410,210		$	1,460,076		$	1,479,790		$	1,326,650		$	1,387,314		$	1,276,866

Deferred Policy Acquisition Costs Rollforward
Balance, beginning of period		$	738,946		$	786,055		$	833,784		$	864,623		$	904,485		$	948,087
	General expenses deferred		7,381			8,410			7,625			7,754			7,003			7,492
	Commission costs deferred		56,822			62,091			61,785			58,793			60,116			66,540
	Amortization of deferred policy acquisition costs		(23,229	)		(23,975	)		(26,645	)		(30,185	)		(26,531	)		(28,205	)
	Foreign currency impact and other, net		6,135			1,203			(11,927	)		3,501			3,015			(3,356	)
Balance, end of period		$	786,055		$	833,784		$	864,623		$	904,485		$	948,087		$	990,558

(1)	Outstanding common shares exclude restricted stock units.

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Financial Results and Other Statistical Data

PRIMERICA, INC.

Financial Supplement

(Dollars in thousands, except per-share data)		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012			Q2 2012		YOY Q2												YOY YTD
(Dollars in thousands, except per-share data)		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012			Q2 2012		Change			% Change			YTD 2011			YTD 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			61,530,879			(11,926,454	)	-16.2		%		73,066,578			63,331,957			(9,734,621	)	-13.3		%

Net income	$	47,272		$	37,620		$	35,096		$	37,204		$	41,756		$	46,179		$	8,559			22.8	%	$	84,892		$	87,936		$	3,044			3.6	%
Less income attributable to unvested participating securities		(1,895	)		(1,097	)		(988	)		(1,111	)		(1,357	)		(1,110	)		(13	)		-1.2	%		(2,837	)		(2,498	)		339			12.0	%
Net income used in computing basic EPS	$	45,377		$	36,523		$	34,108		$	36,094		$	40,400		$	45,069		$	8,546			23.4	%	$	82,055		$	85,438		$	3,383			4.1	%
Basic earnings per share	$	0.62		$	0.50		$	0.46		$	0.52		$	0.62		$	0.73		$	0.24			47.3	%	$	1.12		$	1.35		$	0.23			20.1	%

Net operating income	$	43,441		$	38,592		$	37,301		$	36,652		$	42,377		$	45,455		$	6,863			17.8	%	$	82,034		$	87,832		$	5,798			7.1	%
Less operating income attributable to unvested participating securities		(1,741	)		(1,126	)		(1,051	)		(1,094	)		(1,377	)		(1,093	)		33			2.9	%		(2,741	)		(2,495	)		246			9.0	%
Net operating income used in computing basic operating EPS	$	41,700		$	37,467		$	36,250		$	35,558		$	41,000		$	44,362		$	6,896			18.4	%	$	79,293		$	85,337		$	6,045			7.6	%
Basic operating income per share	$	0.57		$	0.51		$	0.49		$	0.51		$	0.63		$	0.72		$	0.21			41.4	%	$	1.09		$	1.35		$	0.26			24.2	%

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			61,530,879			(11,926,454	)	-16.2		%		73,066,578			63,331,957			(9,734,621	)	-13.3		%
Dilutive impact of warrants		1,154,597			743,814			541,184			802,787			1,141,687			1,155,701			411,887			55.4	%		960,944			1,148,767			187,823			19.5	%
Shares used to calculate diluted EPS		73,826,078			74,201,147			74,199,437			70,169,219			66,274,722			62,686,580			(11,514,567	)	-15.5		%		74,027,522			64,480,724			(9,546,798	)	-12.9		%

Net income	$	47,272		$	37,620		$	35,096		$	37,204		$	41,756		$	46,179		$	8,559			22.8	%	$	84,892		$	87,936		$	3,044			3.6	%
Less income attributable to unvested participating securities		(1,867	)		(1,087	)		(982	)		(1,099	)		(1,335	)		(1,092	)		(4	)		-0.4	%		(2,802	)		(2,457	)		346			12.3	%
Net income used in computing diluted EPS	$	45,405		$	36,533		$	34,115		$	36,105		$	40,421		$	45,088		$	8,555			23.4	%	$	82,090		$	85,479		$	3,389			4.1	%
Diluted earnings per share	$	0.62		$	0.49		$	0.46		$	0.51		$	0.61		$	0.72		$	0.23			46.1	%	$	1.11		$	1.33		$	0.22			19.5	%

Net operating income	$	43,441		$	38,592		$	37,301		$	36,652		$	42,377		$	45,455		$	6,863			17.8	%	$	82,034		$	87,832		$	5,798			7.1	%
Less operating income attributable to unvested participating securities		(1,715	)		(1,115	)		(1,044	)		(1,083	)		(1,355	)		(1,074	)		41			3.7	%		(2,708	)		(2,454	)		254			9.4	%
Net operating income used in computing diluted operating EPS	$	41,726		$	37,477		$	36,257		$	35,570		$	41,022		$	44,381		$	6,904			18.4	%	$	79,326		$	85,378		$	6,052			7.6	%
Diluted operating income per share	$	0.57		$	0.51		$	0.49		$	0.51		$	0.62		$	0.71		$	0.20			40.2	%	$	1.07		$	1.32		$	0.25			23.6	%



		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012			Q2 2012		YOY Q2												YOY YTD
		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012			Q2 2012		Change			% Change			YTD 2011			YTD 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		$	1,332,090		$	(103,053	)		-7.2	%	$	1,409,256		$	1,344,536		$	(64,720	)		-4.6	%
Average adjusted stockholders' equity	$	1,288,212		$	1,336,324		$	1,369,800		$	1,307,064		$	1,256,465		$	1,226,703		$	(109,620	)		-8.2	%	$	1,312,268		$	1,241,584		$	(70,683	)		-5.4	%

Net income return on stockholders' equity		13.7	%		10.5	%		9.6	%		10.6	%		12.3	%		13.9	%		3.4	%	nm				12.0	%		13.1	%		1.0	%	nm
Net income return on adjusted stockholders' equity		14.7	%		11.3	%		10.2	%		11.4	%		13.3	%		15.1	%		3.8	%	nm				12.9	%		14.2	%		1.2	%	nm

Net operating income return on adjusted stockholders' equity		13.5	%		11.6	%		10.9	%		11.2	%		13.5	%		14.8	%		3.3	%	nm				12.5	%		14.1	%		1.6	%	nm

Capital Structure
Debt-to-capital (1)		17.5	%		17.0	%		16.9	%		18.4	%		17.8	%		19.0	%		2.0	%	nm				17.0	%		19.0	%		2.0	%	nm

Cash and invested assets to stockholders' equity		1.7	x		1.6	x		1.6	x		1.6	x		1.6	x		1.6	x		0.0	x	nm				1.6	x		1.6	x		0.0	x	nm
Cash and invested assets to adjusted stockholders' equity		1.8	x		1.7	x		1.7	x		1.8	x		1.7	x		1.7	x		0.0	x	nm				1.7	x		1.7	x		0.0	x	nm

Share count, end of period (2)		73,187,837			73,603,111			73,740,120			64,882,643			65,303,547			59,868,486			(13,734,625	)	-18.7		%		73,603,111			59,868,486			(13,734,625	)	-18.7		%
Adjusted stockholders' equity per share	$	17.98		$	18.43		$	18.75		$	18.98		$	19.63		$	19.57		$	1.14			6.2	%	$	18.43		$	19.57		$	1.14			6.2	%

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

Holding Company Senior Debt Ratings
Moody's	na			Baa2			Baa2			Baa2			Baa2			Baa2			nm			nm			nm			nm			nm			nm
S&P	na			A-			A-			A-			A-			A-			nm			nm			nm			nm			nm			nm
A.M. Best	na			a-			a-			a-			a-			a-			nm			nm			nm			nm			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 Q2												YOY YTD
(Dollars in thousands)		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012			Q2 2012		$ Change			% Change			YTD 2011			YTD 2012			$ Change			% Change
Statement of Income
Revenues:
Direct premiums	$	552,069		$	560,881		$	560,739		$	555,778		$	561,037		$	570,073		$	9,192			1.6	%	$	1,112,950		$	1,131,110		$	18,160			1.6	%
Ceded premiums		(422,238	)		(435,564	)		(425,643	)		(419,630	)		(418,163	)		(415,814	)		19,750			4.5	%		(857,802	)		(833,978	)		23,824			2.8	%
Net premiums		129,831			125,317			135,096			136,148			142,874			154,259			28,942			23.1	%		255,148			297,132			41,984			16.5	%
Net investment income		28,626			27,229			27,103			25,644			26,097			23,605			(3,624	)		-13.3	%		55,855			49,702			(6,153	)		-11.0	%
Commissions and fees:
Sales-based (1)		43,128			44,904			42,244			40,086			44,467			47,269			2,364			5.3	%		88,032			91,736			3,704			4.2	%
Asset-based (2)		44,825			45,348			41,996			40,889			43,722			43,751			(1,598	)		-3.5	%		90,174			87,472			(2,701	)		-3.0	%
Account-based (3)		10,432			11,811			10,140			9,615			9,373			9,494			(2,317	)		-19.6	%		22,242			18,867			(3,375	)		-15.2	%
Other commissions and fees		7,731			6,635			6,502			6,693			6,343			6,248			(386	)		-5.8	%		14,366			12,591			(1,774	)		-12.4	%
Realized investment (losses) gains		327			2,035			(178	)		4,256			2,132			4,320			2,285			112.3	%		2,362			6,452			4,090		nm
Other, net		11,452			11,816			12,887			12,526			11,594			11,581			(236	)		-2.0	%		23,268			23,174			(94	)		-0.4	%
Total revenues		276,352			275,095			275,790			275,855			286,601			300,525			25,430			9.2	%		551,447			587,127			35,680			6.5	%
Benefits and expenses:
Benefits and claims		57,635			57,272			64,101			63,688			67,933			68,925			11,652			20.3	%		114,907			136,858			21,951			19.1	%
Amortization of DAC		23,229			23,975			26,645			30,185			26,531			28,205			4,231			17.6	%		47,203			54,736			7,533			16.0	%
Insurance commissions		8,998			9,532			10,536			9,553			8,496			6,457			(3,075	)		-32.3	%		18,530			14,954			(3,576	)		-19.3	%
Insurance expenses		15,798			26,988			22,133			24,273			22,444			24,589			(2,399	)		-8.9	%		42,786			47,033			4,247			9.9	%
Sales commissions:
Sales-based (1)		30,553			31,389			29,640			26,805			31,600			33,285			1,895			6.0	%		61,942			64,885			2,943			4.8	%
Asset-based (2)		15,451			15,111			13,805			13,534			14,745			15,031			(80	)		-0.5	%		30,562			29,777			(786	)		-2.6	%
Other sales commissions		4,434			3,774			3,692			3,534			3,371			3,159			(615	)		-16.3	%		8,208			6,531			(1,678	)		-20.4	%
Interest expense		6,997			6,998			7,000			6,973			6,910			8,505			1,508			21.5	%		13,995			15,416			1,421			10.2	%
Other operating expenses		40,001			41,590			42,732			40,630			41,104			40,447			(1,142	)		-2.7	%		81,591			81,551			(40	)	nm
Total benefits and expenses		203,095			216,630			220,285			219,175			223,135			228,605			11,975			5.5	%		419,725			451,740			32,015			7.6	%
Income before income taxes		73,256			58,465			55,505			56,681			63,466			71,921			13,455			23.0	%		131,722			135,386			3,665			2.8	%
Income taxes		25,985			20,845			20,409			19,477			21,709			25,741			4,896			23.5	%		46,830			47,451			621			1.3	%
Net income	$	47,272		$	37,620		$	35,096		$	37,204		$	41,756		$	46,179		$	8,559			22.8	%	$	84,892		$	87,936		$	3,044			3.6	%

Income Before Income Taxes by Segment
Term Life	$	49,716		$	36,027		$	39,663		$	37,045		$	44,283		$	51,722		$	15,696			43.6	%	$	85,743		$	96,006		$	10,263			12.0	%
Investment & Savings Products		31,039			30,470			26,746			28,821			28,869			29,444			(1,026	)		-3.4	%		61,509			58,314			(3,195	)		-5.2	%
Corporate & Other Distributed Products		(7,498	)		(8,032	)		(10,903	)		(9,185	)		(9,687	)		(9,246	)		(1,214	)		-15.1	%		(15,530	)		(18,933	)		(3,403	)		-21.9	%
Income before income taxes	$	73,256		$	58,465		$	55,505		$	56,681		$	63,466		$	71,921		$	13,455			23.0	%	$	131,722		$	135,386		$	3,665			2.8	%

(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

6 of 15

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

																			YOY Q2											YOY YTD
		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012			Q2 2012		$ Change		% Change			YTD 2011			YTD 2012			$ Change		% Change
(Dollars in thousands)		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012			Q2 2012		$ Change		% Change			YTD 2011			YTD 2012			$ Change		% Change
Reconciliation from Operating Revenues to Total Revenues
Operating revenues	$	267,296		$	273,060		$	275,968		$	271,600		$	284,469		$	296,206		$	23,145		8.5	%	$	540,356		$	580,675		$	40,319		7.5	%

Operating revenues reconciling items:
Realized investment gains/losses		327			2,035			(178	)		4,256			2,132			4,320		nm		nm				2,362			6,452		nm		nm
Ceded premiums - reinsurance recoveries		8,729			—			—			—			—			—		nm		nm				8,729			—		nm		nm
Total operating revenues reconciling items		9,056			2,035			(178	)		4,256			2,132			4,320		nm		nm				11,091			6,452		nm		nm

Total revenues	$	276,352		$	275,095		$	275,790		$	275,855		$	286,601		$	300,525		$	25,430		9.2	%	$	551,447		$	587,127		$	35,680		6.5	%


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		$	70,793		$	10,817		18.0	%	$	127,296		$	135,201		$	7,905		6.2	%

Operating income before income taxes reconciling items:
Realized investment gains/losses		327			2,035			(178	)		4,256			2,132			4,320		nm		nm				2,362			6,452		nm		nm
Ceded premiums - reinsurance recoveries		8,729			—			—			—			—			—		nm		nm				8,729			—		nm		nm
Initial & accelerated management / field grant expense		(3,120	)		(3,546	)		(3,309	)		(3,415	)		(3,075	)		(3,192	)	nm		nm				(6,665	)		(6,267	)	nm		nm
Total operating income before income taxes reconciling items		5,936			(1,510	)		(3,487	)		841			(943	)		1,128		nm		nm				4,425			185		nm		nm

Income before income taxes	$	73,256		$	58,465		$	55,505		$	56,681		$	63,466		$	71,921		$	13,455		23.0	%	$	131,722		$	135,386		$	3,665		2.8	%


Reconciliation from Net Operating Income to Net Income
Net operating income	$	43,441		$	38,592		$	37,301		$	36,652		$	42,377		$	45,455		$	6,863		17.8	%	$	82,034		$	87,832		$	5,798		7.1	%

Net operating income reconciling items:
Operating income before income taxes reconciling items		5,936			(1,510	)		(3,487	)		841			(943	)		1,128		nm		nm				4,425			185		nm		nm
Tax impact of operating income reconciling items at effective tax rate		(2,105	)		539			1,282			(289	)		323			(404	)	nm		nm				(1,567	)		(81	)	nm		nm
Total net operating income reconciling items		3,830			(972	)		(2,205	)		552			(621	)		724		nm		nm				2,858			104		nm		nm

Net income	$	47,272		$	37,620		$	35,096		$	37,204		$	41,756		$	46,179		$	8,559		22.8	%	$	84,892		$	87,936		$	3,044		3.6	%

7 of 15

Segment Operating Results	PRIMERICA, INC.
	Financial Supplement

																			YOY Q2												YOY YTD
(Dollars in thousands)		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012			Q2 2012		$ Change			% Change			YTD 2011			YTD 2012			$ Change			% Change
Term Life Insurance
Revenues:
Direct premiums	$	532,167		$	540,283		$	539,693		$	537,450		$	542,157		$	550,329		$	10,046			1.9	%	$	1,072,451		$	1,092,487		$	20,036			1.9	%
Ceded premiums		(427,382	)		(431,890	)		(421,933	)		(416,477	)		(414,559	)		(412,038	)		19,852			4.6	%		(859,272	)		(826,597	)		32,675			3.8	%
Net premiums		104,786			108,393			117,760			120,973			127,598			138,292			29,898			27.6	%		213,179			265,890			52,711			24.7	%
Allocated net investment income		15,794			15,669			15,664			15,560			16,659			16,685			1,017			6.5	%		31,463			33,345			1,882			6.0	%
Other, net		7,653			7,580			8,289			8,144			7,547			7,753			174			2.3	%		15,233			15,301			68			0.4	%
Operating revenues		128,233			131,641			141,713			144,678			151,805			162,730			31,089			23.6	%		259,875			314,535			54,660			21.0	%
Benefits and expenses:
Benefits and claims		47,351			43,921			52,067			53,820			57,509			59,984			16,063			36.6	%		91,271			117,493			26,222			28.7	%
Amortization of DAC		20,127			19,894			22,289			27,163			23,933			22,547			2,653			13.3	%		40,022			46,480			6,459			16.1	%
Insurance commissions		4,063			5,320			5,633			4,380			3,577			2,314			(3,006	)		-56.5	%		9,384			5,891			(3,492	)		-37.2	%
Insurance expenses		12,833			23,607			19,186			19,421			19,717			21,782			(1,825	)		-7.7	%		36,440			41,499			5,059			13.9	%
Interest expense		2,872			2,873			2,875			2,848			2,785			4,380			1,508			52.5	%		5,745			7,166			1,421			24.7	%
Operating benefits and expenses		87,246			95,615			102,050			107,633			107,521			111,008			15,393			16.1	%		182,861			218,529			35,668			19.5	%
Operating income before income taxes	$	40,987		$	36,027		$	39,663		$	37,045		$	44,283		$	51,722		$	15,696			43.6	%	$	77,014		$	96,006		$	18,992			24.7	%

Investment & Savings Products
Revenues:
Commissions and fees:
Sales-based	$	43,128		$	44,904		$	42,244		$	40,086		$	44,467		$	47,269		$	2,364			5.3	%	$	88,032		$	91,736		$	3,704			4.2	%
Asset-based		44,825			45,348			41,996			40,889			43,722			43,751			(1,598	)		-3.5	%		90,174			87,472			(2,701	)		-3.0	%
Account-based		10,432			11,811			10,140			9,615			9,373			9,494			(2,317	)		-19.6	%		22,242			18,867			(3,375	)		-15.2	%
Other, net		2,461			2,522			3,105			3,196			2,572			2,454			(68	)		-2.7	%		4,984			5,026			42			0.8	%
Operating revenues		100,846			104,586			97,486			93,786			100,133			102,967			(1,618	)		-1.5	%		205,432			203,101			(2,331	)		-1.1	%
Benefits and expenses:
Amortization of DAC		2,785			3,751			4,034			1,913			3,223			2,881			(870	)		-23.2	%		6,535			6,103			(432	)		-6.6	%
Insurance commissions		2,140			2,344			2,277			2,089			2,149			2,252			(93	)		-4.0	%		4,484			4,401			(84	)		-1.9	%
Sales commissions:																																		#DIV/0!
Sales-based		30,553			31,389			29,640			26,805			31,600			33,285			1,895			6.0	%		61,942			64,885			2,943			4.8	%
Asset-based		15,451			15,111			13,805			13,534			14,745			15,031			(80	)		-0.5	%		30,562			29,777			(786	)		-2.6	%
Other operating expenses		18,878			21,519			20,984			20,624			19,547			20,074			(1,445	)		-6.7	%		40,398			39,621			(777	)		-1.9	%
Operating benefits and expenses		69,807			74,115			70,740			64,964			71,264			73,523			(592	)		-0.8	%		143,922			144,787			864			0.6	%
Operating income before income taxes	$	31,039		$	30,470		$	26,746		$	28,821		$	28,869		$	29,444		$	(1,026	)		-3.4	%	$	61,509		$	58,314		$	(3,195	)		-5.2	%

Corporate & Other Distributed Products
Revenues:
Direct premiums	$	19,902		$	20,597		$	21,046		$	18,328		$	18,880		$	19,744		$	(854	)		-4.1	%	$	40,499		$	38,624		$	(1,876	)		-4.6	%
Ceded premiums		(3,585	)		(3,674	)		(3,710	)		(3,153	)		(3,604	)		(3,777	)		(103	)		-2.8	%		(7,259	)		(7,381	)		(122	)		-1.7	%
Net premiums		16,317			16,924			17,336			15,174			15,276			15,967			(957	)		-5.7	%		33,240			31,243			(1,998	)		-6.0	%
Allocated net investment income		12,831			11,560			11,439			10,083			9,437			6,919			(4,641	)		-40.1	%		24,392			16,357			(8,035	)		-32.9	%
Commissions and fees:
Loans		1,528			1,202			1,126			1,134			913			627			(575	)		-47.9	%		2,730			1,539			(1,190	)		-43.6	%
DebtWatchers		1,071			805			840			791			717			648			(157	)		-19.5	%		1,876			1,365			(511	)	nm
Prepaid Legal Services		2,619			2,345			2,329			2,321			2,289			2,266			(79	)		-3.4	%		4,964			4,555			(409	)		-8.2	%
Auto and Homeowners Insurance		1,687			1,507			1,427			1,606			1,689			1,836			329			21.8	%		3,194			3,526			332			10.4	%
Long-Term Care Insurance		825			775			764			835			724			650			(126	)		-16.2	%		1,601			1,373			(227	)		-14.2	%
Other sales commissions		1			0			16			5			12			222			221		nm				2			234			232		nm
Other, net		1,337			1,715			1,493			1,186			1,475			1,373			(342	)		-19.9	%		3,052			2,848			(204	)		-6.7	%
Operating revenues		38,216			36,833			36,770			33,136			32,531			30,508			(6,325	)		-17.2	%		75,050			63,039			(12,011	)		-16.0	%
Benefits and expenses:
Benefits and claims		10,284			13,352			12,034			9,867			10,424			8,941			(4,411	)		-33.0	%		23,636			19,365			(4,271	)		-18.1	%
Amortization of DAC		317			330			322			1,110			(625	)		2,778			2,448		nm				646			2,153			1,506		nm
Insurance commissions		2,794			1,867			2,626			3,084			2,770			1,891			24			1.3	%		4,662			4,661			(0	)	nm
Insurance expenses		2,965			3,381			2,947			4,851			2,727			2,807			(575	)		-17.0	%		6,346			5,534			(812	)		-12.8	%
Sales commissions		4,434			3,774			3,692			3,534			3,371			3,159			(615	)		-16.3	%		8,208			6,531			(1,678	)		-20.4	%
Interest expense		4,125			4,125			4,125			4,125			4,125			4,125			—		nm				8,250			8,250			—		nm
Other operating expenses		18,003			16,525			18,440			16,591			18,482			17,181			656			4.0	%		34,528			35,663			1,135			3.3	%
Operating benefits and expenses		42,922			43,354			44,186			43,162			41,275			40,882			(2,472	)		-5.7	%		86,276			82,157			(4,119	)		-4.8	%
Operating income before income taxes	$	(4,705	)	$	(6,521	)	$	(7,416	)	$	(10,026	)	$	(8,744	)	$	(10,374	)	$	(3,853	)		-59.1	%	$	(11,227	)	$	(19,118	)	$	(7,892	)		-70.3	%

8 of 15

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

(Dollars in thousands)																			YOY Q2												YOY YTD
Term Life Insurance Operating Income Before Income Taxes		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012			Q2 2012		$ Change			% Change			YTD 2011			YTD 2012			$ Change			% Change
Revenues:
Direct premiums	$	532,167		$	540,283		$	539,693		$	537,450		$	542,157		$	550,329		$	10,046			1.9	%	$	1,072,451		$	1,092,487		$	20,036			1.9	%
Ceded premiums		(427,382	)		(431,890	)		(421,933	)		(416,477	)		(414,559	)		(412,038	)		19,852			4.6	%		(859,272	)		(826,597	)		32,675			3.8	%
Net premiums		104,786			108,393			117,760			120,973			127,598			138,292			29,898			27.6	%		213,179			265,890			52,711			24.7	%
Allocated net investment income		15,794			15,669			15,664			15,560			16,659			16,685			1,017			6.5	%		31,463			33,345			1,882			6.0	%
Other, net		7,653			7,580			8,289			8,144			7,547			7,753			174			2.3	%		15,233			15,301			68			0.4	%
Operating revenues		128,233			131,641			141,713			144,678			151,805			162,730			31,089			23.6	%		259,875			314,535			54,660			21.0	%
Benefits and expenses:
Benefits and claims		47,351			43,921			52,067			53,820			57,509			59,984			16,063			36.6	%		91,271			117,493			26,222			28.7	%
Amortization of DAC		20,127			19,894			22,289			27,163			23,933			22,547			2,653			13.3	%		40,022			46,480			6,459			16.1	%
Insurance commissions		4,063			5,320			5,633			4,380			3,577			2,314			(3,006	)		-56.5	%		9,384			5,891			(3,492	)		-37.2	%
Insurance expenses		12,833			23,607			19,186			19,421			19,717			21,782			(1,825	)		-7.7	%		36,440			41,499			5,059			13.9	%
Interest expense		2,872			2,873			2,875			2,848			2,785			4,380			1,508			52.5	%		5,745			7,166			1,421			24.7	%
Operating benefits and expenses		87,246			95,615			102,050			107,633			107,521			111,008			15,393			16.1	%		182,861			218,529			35,668			19.5	%
Operating income before income taxes	$	40,987		$	36,027		$	39,663		$	37,045		$	44,283		$	51,722		$	15,696			43.6	%	$	77,014		$	96,006		$	18,992			24.7	%

New Term Life Insurance Operating Income Before Income Taxes (1)
Revenues:
Direct premiums	$	46,771		$	56,581		$	64,655		$	71,240		$	79,146		$	88,860		$	32,279			57.0	%	$	103,352		$	168,006		$	64,653			62.6	%
Ceded premiums		(8,075	)		(9,320	)		(8,513	)		(8,753	)		(13,012	)		(14,450	)		(5,130	)		-55.0	%		(17,395	)		(27,461	)		(10,066	)		-57.9	%
Net premiums		38,697			47,261			56,142			62,487			66,134			74,410			27,149			57.4	%		85,957			140,544			54,587			63.5	%
Allocated net investment income		630			722			986			1,195			1,302			2,431			1,709		nm				1,352			3,733			2,381		nm
Other, net		7,614			7,605			8,287			8,151			7,501			7,671			66			0.9	%		15,219			15,172			(47	)		-0.3	%
Operating revenues		46,941			55,588			65,415			71,833			74,938			84,512			28,924			52.0	%		102,529			159,450			56,921			55.5	%
Benefits and expenses:
Benefits and claims		14,002			17,380			21,086			23,261			25,056			26,667			9,288			53.4	%		31,382			51,723			20,341			64.8	%
Amortization of DAC		9,249			8,324			11,193			14,893			14,674			12,117			3,793			45.6	%		17,573			26,790			9,218			52.5	%
Insurance commissions		3,737			5,052			5,366			4,123			3,364			1,965			(3,087	)		-61.1	%		8,789			5,330			(3,460	)		-39.4	%
Insurance expenses		21,976			32,353			28,054			28,915			28,133			29,911			(2,442	)		-7.5	%		54,328			58,044			3,715			6.8	%
Interest expense		—			—			—			—			—			266			266		nm				—			266			266		nm
Operating benefits and expenses		48,963			63,109			65,700			71,193			71,227			70,927			7,818			12.4	%		112,072			142,153			30,081			26.8	%
Operating income before income taxes	$	(2,023	)	$	(7,520	)	$	(284	)	$	640		$	3,711		$	13,585		$	21,106		nm			$	(9,543	)	$	17,296		$	26,839		nm

Legacy Term Life Insurance Operating Income Before Income Taxes (2)
Revenues:
Direct premiums	$	485,396		$	483,702		$	475,038		$	466,211		$	463,011		$	461,470		$	(22,233	)		-4.6	%	$	969,098		$	924,481		$	(44,617	)		-4.6	%
Ceded premiums		(419,307	)		(422,570	)		(413,421	)		(407,724	)		(401,548	)		(397,588	)		24,982			5.9	%		(841,877	)		(799,136	)		42,741			5.1	%
Net premiums		66,089			61,132			61,618			58,487			61,464			63,882			2,749			4.5	%		127,222			125,345			(1,876	)		-1.5	%
Allocated net investment income		15,164			14,947			14,678			14,365			15,357			14,255			(692	)		-4.6	%		30,111			29,612			(499	)		-1.7	%
Other, net		39			(26	)		2			(7	)		46			82			108		nm				14			128			115		nm
Operating revenues		81,293			76,053			76,298			72,845			76,867			78,218			2,165			2.8	%		157,346			155,085			(2,260	)		-1.4	%
Benefits and expenses:
Benefits and claims		33,349			26,541			30,981			30,560			32,453			33,317			6,776			25.5	%		59,890			65,770			5,880			9.8	%
Amortization of DAC		10,878			11,571			11,096			12,270			9,259			10,430			(1,140	)		-9.9	%		22,449			19,690			(2,759	)		-12.3	%
Insurance commissions		327			268			267			257			213			349			81			30.4	%		595			562			(33	)		-5.5	%
Insurance expenses		9,366			9,466			9,014			7,989			9,162			9,164			(302	)		-3.2	%		18,831			18,327			(505	)		-2.7	%
Insurance expense allowance		(18,508	)		(18,212	)		(17,883	)		(17,483	)		(17,579	)		(17,293	)		919			5.0	%		(36,720	)		(34,872	)		1,848			5.0	%
Interest expense		2,872			2,873			2,875			2,848			2,785			4,114			1,241			43.2	%		5,745			6,900			1,155			20.1	%
Operating benefits and expenses		38,283			32,506			36,351			36,441			36,294			40,082			7,575			23.3	%		70,789			76,376			5,587			7.9	%
Operating income before income taxes	$	43,010		$	43,547		$	39,947		$	36,405		$	40,573		$	38,137		$	(5,410	)		-12.4	%	$	86,556		$	78,709		$	(7,847	)		-9.1	%

(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 15

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

										(6)			(6)			(6)			YOY Q2												YOY YTD
(Dollars in thousands, except as noted)		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012			Q2 2012		$ Change			% Change			YTD 2011			YTD 2012			$ Change			% Change
Key Statistics

Life-insurance licensed sales force, beginning of period		94,850			92,212			90,519			91,970			91,176			89,651			(2,561	)		-2.8	%		94,850			91,176			(3,674	)		-3.9	%
New life-licensed representatives		7,145			8,061			10,334			8,171			7,650			9,786			1,725			21.4	%		15,206			17,436			2,230			14.7	%
Non-renewal and terminated representatives		(9,783	)		(9,754	)		(8,883	)		(8,965	)		(9,175	)		(8,569	)		1,185			12.1	%		(19,537	)		(17,744	)		1,793			9.2	%
Life-insurance licensed sales force, end of period		92,212			90,519			91,970			91,176			89,651			90,868			349			0.4	%		90,519			90,868			349			0.4	%

Estimated annualized issued term life premium ($mills) (1):
Premium from new policies	$	41.1		$	47.5		$	50.1		$	48.9		$	44.7		$	47.8		$	0.4			0.8	%	$	88.6		$	92.6		$	4.0			4.5	%
Additions and increases in premium		10.4			11.4			11.5			11.6			10.7			11.4			(0.1	)		-0.6	%		21.8			22.1			0.2			1.0	%
Total estimated annualized issued term life premium	$	51.5		$	58.9		$	61.7		$	60.4		$	55.4		$	59.2		$	0.3			0.5	%	$	110.4		$	114.6		$	4.2			3.8	%

Issued term life policies		51,281			59,826			65,067			61,361			56,145			60,583			757			1.3	%		111,107			116,728			5,621			5.1	%
Estimated average annualized issued term life premium per policy (1)(2)	$	802		$	794		$	771		$	796		$	797		$	790		$	(4	)		-0.5	%	$	797		$	793		$	(4	)		-0.5	%

Term life face amount in-force, beginning of period ($mills)	$	656,791		$	658,523		$	663,617		$	666,182		$	664,955		$	664,423		$	5,900			0.9	%	$	656,791		$	664,955		$	8,164			1.2	%
Issued term life face amount (3)		16,735			18,974			18,885			18,552			16,983			18,307			(667	)		-3.5	%		35,709			35,290			(419	)		-1.2	%
Terminated term life face amount		(17,247	)		(14,724	)		(16,221	)		(18,760	)		(16,307	)		(14,322	)		402			2.7	%		(31,971	)		(30,630	)		1,341			4.2	%
Foreign currency impact, net		2,244			843			(98	)		(1,019	)		(1,208	)		(384	)		(1,227	)	nm				3,087			(1,592	)		(4,679	)	nm
Term life face amount in-force, end of period	$	658,523		$	663,617		$	666,182		$	664,955		$	664,423		$	668,024		$	4,408			0.7	%	$	663,617		$	668,024		$	4,408			0.7	%


New Term Life Insurance - Financial Analysis

Direct premium	$	46,771		$	56,581		$	64,655		$	71,240		$	79,146		$	88,860			32,279			57.0	%	$	103,352		$	168,006		$	64,653			62.6	%

New term life operating income before income taxes	$	(2,023	)	$	(7,520	)	$	(284	)	$	640		$	3,711		$	13,585			21,106		nm			$	(9,543	)	$	17,296		$	26,839		nm
% of direct premium		-4.3	%		-13.3	%		-0.4	%		0.9	%		4.7	%		15.3	%	nm			nm				-9.2	%		10.3	%	nm			nm

Benefits & expenses, net (4)	$	35,063		$	40,076		$	46,158		$	51,030		$	56,105		$	55,199			15,123			37.7	%	$	75,138		$	111,304		$	36,166			48.1	%
% of direct premium		75.0	%		70.8	%		71.4	%		71.6	%		70.9	%		62.1	%	nm			nm				72.7	%		66.3	%	nm			nm

Insurance expenses, net (5)	$	14,362		$	24,747		$	19,768		$	20,764		$	20,632		$	22,240			(2,508	)		-10.1	%	$	39,109		$	42,872		$	3,763			9.6	%
% of direct premium		30.7	%		43.7	%		30.6	%		29.1	%		26.1	%		25.0	%	nm			nm				37.8	%		25.5	%	nm			nm


Legacy Term Life Insurance - Financial Analysis

Direct premium	$	485,396		$	483,702		$	475,038		$	466,211		$	463,011		$	461,470			(22,233	)		-4.6	%	$	969,098		$	924,481		$	(44,617	)		-4.6	%

Legacy term life operating income before income taxes	$	43,010		$	43,547		$	39,947		$	36,405		$	40,573		$	38,137			(5,410	)		-12.4	%	$	86,556		$	78,709		$	(7,847	)		-9.1	%
% of direct premium		8.9	%		9.0	%		8.4	%		7.8	%		8.8	%		8.3	%	nm			nm				8.9	%		8.5	%	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
(6)		Reflects a change in methodology for terminating representatives that was implemented in the fourth quarter of 2011.

10 of 15

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

(Dollars in thousands, except as noted)																			YOY Q2												YOY YTD
Investment & Savings Products Operating Income Before Income Taxes		Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012			Q2 2012		$ Change			% Change			YTD 2011			YTD 2012			$ Change			% Change
Revenues:
Commissions and fees:
Sales-based	$	43,128		$	44,904		$	42,244		$	40,086		$	44,467		$	47,269		$	2,364			5.3	%	$	88,032		$	91,736		$	3,704			4.2	%
Asset-based		44,825			45,348			41,996			40,889			43,722			43,751			(1,598	)		-3.5	%		90,174			87,472			(2,701	)		-3.0	%
Account-based		10,432			11,811			10,140			9,615			9,373			9,494			(2,317	)		-19.6	%		22,242			18,867			(3,375	)		-15.2	%
Other, net		2,461			2,522			3,105			3,196			2,572			2,454			(68	)		-2.7	%		4,984			5,026			42			0.8	%
Operating revenues		100,846			104,586			97,486			93,786			100,133			102,967			(1,618	)		-1.5	%		205,432			203,101			(2,331	)		-1.1	%
Benefits and expenses:
Amortization of DAC		2,785			3,751			4,034			1,913			3,223			2,881			(870	)		-23.2	%		6,535			6,103			(432	)		-6.6	%
Insurance commissions		2,140			2,344			2,277			2,089			2,149			2,252			(93	)		-4.0	%		4,484			4,401			(84	)		-1.9	%
Sales commissions:
Sales-based		30,553			31,389			29,640			26,805			31,600			33,285			1,895			6.0	%		61,942			64,885			2,943			4.8	%
Asset-based		15,451			15,111			13,805			13,534			14,745			15,031			(80	)		-0.5	%		30,562			29,777			(786	)		-2.6	%
Other operating expenses		18,878			21,519			20,984			20,624			19,547			20,074			(1,445	)		-6.7	%		40,398			39,621			(777	)		-1.9	%
Operating benefits and expenses		69,807			74,115			70,740			64,964			71,264			73,523			(592	)		-0.8	%		143,922			144,787			864			0.6	%
Operating income before income taxes	$	31,039		$	30,470		$	26,746		$	28,821		$	28,869		$	29,444		$	(1,026	)		-3.4	%	$	61,509		$	58,314		$	(3,195	)		-5.2	%


Key Statistics
Product sales ($mills)
Retail Mutual Funds	$	646.0		$	603.1		$	498.3		$	482.5		$	611.9		$	589.6		$	(13.5	)		-2.2	%	$	1,249.1		$	1,201.5		$	(47.6	)		-3.8	%
Variable Annuities and other		344.6			458.0			483.4			388.4			428.9			500.3			42.3			9.2	%		802.6			929.3			126.7			15.8	%
Total sales-based revenue generating product sales		990.6			1,061.1			981.7			870.9			1,040.8			1,090.0			28.8			2.7	%		2,051.7			2,130.8			79.1			3.9	%
Managed Mutual Funds		—			0.2			11.8			16.6			23.1			39.6			39.4		nm				0.2			62.7			62.5		nm
Segregated Funds		123.1			74.2			66.6			68.4			123.7			64.3			(9.9	)		-13.3	%		197.2			188.0			(9.2	)		-4.7	%
Total product sales	$	1,113.7		$	1,135.5		$	1,060.0		$	955.8		$	1,187.7		$	1,193.9		$	58.4			5.1	%	$	2,249.2		$	2,381.6		$	132.4			5.9	%

Client asset values, beginning of period ($mills)	$	34,869		$	36,187		$	36,020		$	31,623		$	33,664		$	36,279		$	91			0.3	%	$	34,869		$	33,664		$	(1,205	)		-3.5	%
Inflows		1,114			1,136			1,060			956			1,188			1,194			58			5.1	%		2,249			2,382			132			5.9	%
Outflows (1)		(1,083	)		(1,118	)		(1,091	)		(983	)		(1,233	)		(1,144	)		(26	)		-2.3	%		(2,201	)		(2,377	)		(176	)		-8.0	%
Net flows		31			18			(31	)		(27	)		(45	)		50			32		nm				48			4			(44	)	nm
Change in market value, net and other (2)		1,288			(185	)		(4,365	)		2,068			2,660			(1,043	)		(857	)	nm				1,102			1,617			515		nm
Client asset values, end of period	$	36,187		$	36,020		$	31,623		$	33,664		$	36,279		$	35,286		$	(734	)		-2.0	%	$	36,020		$	35,286		$	(734	)		-2.0	%

Average client asset values ($mills)
Retail Mutual Funds	$	24,882		$	25,330		$	23,500		$	22,583		$	23,694		$	23,724		$	(1,606	)		-6.3	%	$	25,106		$	23,709		$	(1,397	)		-5.6	%
Managed Mutual Funds		—			0			21			104			212			326			326		nm				0			269			269		nm
Variable Annuities and other		8,242			8,588			8,192			8,083			8,717			8,972			384			4.5	%		8,415			8,845			430			5.1	%
Segregated Funds		2,477			2,545			2,479			2,454			2,499			2,527			(18	)		-0.7	%		2,511			2,513			2			0.1	%
Total	$	35,602		$	36,463		$	34,192		$	33,224		$	35,122		$	35,550		$	(913	)		-2.5	%	$	36,033		$	35,336		$	(697	)		-1.9	%

Average number of fee-generating accounts (thous) (3)		2,662			2,611			2,626			2,611			2,584			2,583			(27	)		-1.0	%		2,637			2,584			(53	)		-2.0	%


Financial Analysis

Sales-based net revenue as % of sales (4)		1.27	%		1.27	%		1.28	%		1.53	%		1.24	%		1.28	%	nm			nm				1.27	%		1.26	%	nm			nm

Asset-based net revenue as % of average asset values (5)		0.07	%		0.07	%		0.06	%		0.07	%		0.07	%		0.07	%	nm			nm				0.13	%		0.13	%	nm			nm

Account-based revenue per average fee generating account (6)	$	3.92		$	4.52		$	3.86		$	3.68		$	3.63		$	3.67		nm			nm			$	8.44		$	7.30		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 15

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

			As of or for the period ended June 30, 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			$	108,062		$	108,062	$	—			5.4	%		5.9	%

Fixed Income:
Treasury		Treasury		33,910			30,803		3,107			1.7	%		1.7	%		3.05	%	AAA
Government		Government		111,277			96,386		14,892			5.6	%		5.3	%		4.70	%	AA
Tax-Exempt Municipal		Tax-Exempt Municipal		8,719			8,304		416			0.4	%		0.5	%		3.31	%	AA
Corporate		Corporate		1,191,834			1,080,848		110,986			59.8	%		59.2	%		5.75	%	BBB+
Mortgage-Backed		Mortgage Backed		230,040			210,551		19,488			11.5	%		11.5	%		5.48	%	AAA
Asset-Backed		Asset Backed		31,849			33,319		(1,470	)		1.6	%		1.8	%		1.72	%	AA
CMBS		CMBS		113,413			106,712		6,701			5.7	%		5.8	%		4.87	%	AAA
Private		Private		123,893			117,942		5,951			6.2	%		6.5	%		5.75	%	BBB
Redeemable Preferred		Redeemable Preferred		876			1,343		(468	)		0.0	%		0.1	%		37.42	%	A-
Convertible		Convertible		6,956			6,605		350			0.3	%		0.4	%		4.59	%	A-
	Total Fixed Income			1,852,767			1,692,814		159,953			93.0	%		92.7	%		5.48	%	A
			OK			OK
Equities:
Perpetual Preferred		Perpetual Preferred		3,673			3,085		588			0.2	%		0.2	%
Common Stock		Common Stock		13,371			10,523		2,848			0.7	%		0.6	%
Mutual Fund		Mutual Fund		7,539			4,198		3,342			0.4	%		0.2	%
Other		Others		7,227			7,227		—			0.4	%		0.4	%
	Total Equities			31,811			25,033		6,778			1.6	%		1.4	%
			OK			OK
	Total Invested Assets		$	1,992,641		$	1,825,910	$	166,731			100.0	%		100.0	%
						OK
Corporate Portfolio by Sector

Banking		Banking	$	108,113		$	102,888	$	5,225			9.1	%		9.5	%
Basic Industry		Basic Industry		90,908			82,312		8,596			7.6	%		7.6	%
Brokerage		Brokerage		15,556			14,536		1,020			1.3	%		1.3	%
Capital Goods		Capital Goods		77,228			69,322		7,906			6.5	%		6.4	%
Communications		Communications		79,386			72,066		7,320			6.7	%		6.7	%
Consumer Cyclical		Consumer Cyclical		49,750			45,527		4,224			4.2	%		4.2	%
Consumer Non-Cyclical		Consumer Non Cyclical		144,762			127,329		17,433			12.1	%		11.8	%
Electric		Electric		115,045			99,906		15,139			9.7	%		9.2	%
Energy		Energy		89,235			80,133		9,102			7.5	%		7.4	%
Finance Companies		Finance Companies		28,004			24,618		3,386			2.3	%		2.3	%
Financial Other		Financial Other		7,895			7,444		451			0.7	%		0.7	%
Industrial Other		Industrial Other		33,482			30,567		2,915			2.8	%		2.8	%
Insurance		Insurance		96,570			88,584		7,986			8.1	%		8.2	%
Natural Gas		Natural Gas		59,401			53,161		6,240			5.0	%		4.9	%
REITs		REITs		112,230			104,525		7,705			9.4	%		9.7	%
Technology		Technology		60,934			56,810		4,124			5.1	%		5.3	%
Transportation		Transportation		18,174			16,122		2,051			1.5	%		1.5	%
Utility Other		Utility Other		5,161			4,997		164			0.4	%		0.5	%
	Total Corporate portfolio		$	1,191,834		$	1,080,848	$	110,986			100.0	%		100.0	%
			OK			OK
Fixed-Maturity Securities - Effective Maturity
Fixed-Maturity Securities - Effective Maturity

Effective maturity
< 1 Yr.			$	184,071		$	180,426	$	3,645			9.9	%		10.7	%		4.49	%
1-2 Yrs.				294,327			276,083		18,244			15.9	%		16.3	%		5.87	%
2-5 Yrs.				593,005			547,542		45,464			32.0	%		32.3	%		5.23	%
5-10 Yrs.				723,640			638,646		84,995			39.1	%		37.7	%		5.79	%
> 10 Yrs.				57,724			50,118		7,605			3.1	%		3.0	%		5.84	%
	Total Fixed Income		$	1,852,767		$	1,692,814	$	159,953			100.0	%		100.0	%		5.48	%
			OK			OK
Duration

Fixed Income portfolio duration				3.6	years

12 of 15

Investment Portfolio - Quality Ratings As of June 30, 2012									PRIMERICA, INC.
									Financial Supplement


(Dollars in thousands)
Investment Portfolio Quality Ratings (1)
			Amortized Cost		% of Total
Total Fixed Income portfolio:
	Rating
	AAA		$	358,513		21.2	%
	AA			128,994		7.6	%
	A			396,068		23.4	%
	BBB			699,906		41.3	%
	Below Investment Grade			108,448		6.4	%
	NA			885		0.1	%	OK
		Total Fixed Income	$	1,692,814		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			58,758		5.4	%		%		AA			6,431		5.5	%
	A			343,180		31.8	%				A			14,430		12.2	%
	BBB			603,431		55.8	%				BBB			79,773		67.6	%
	Below Investment Grade			74,284		6.9	%				Below Investment Grade			17,086		14.5	%
	NA			845		0.1	%	OK			NA			—		—		OK
		Total Corporate	$	1,080,848		100.0	%					Total Private	$	117,942		100.0	%



CMBS asset class:										Mortgage-Backed asset class:
	Rating										Rating
	AAA		$	91,298		85.6	%				AAA		$	190,733		90.6	%
	AA			12,248		11.5	%				AA			4,531		2.2	%
	A			1,573		1.5	%				A			1,562		0.7	%
	BBB			1,001		0.9	%				BBB			3,793		1.8	%
	Below Investment Grade			589		0.6	%				Below Investment Grade			9,932		4.7	%
	NA			2		0.0	%	OK			NA			—		—		OK
		Total CMBS	$	106,712		100.0	%					Total Mortgage-Backed	$	210,551		100.0	%



Asset-Backed asset class:										Treasury & Government asset classes:
	Rating										Rating
	AAA		$	25,597		76.8	%				AAA		$	49,683		39.1	%
	AA			768		2.3	%				AA			39,685		31.2	%		0.00	%
	A			427		1.3	%				A			30,071		23.6	%		0.00	%
	BBB			—		—					BBB			7,750		6.1	%		#######
	Below Investment Grade			6,527		19.6	%				Below Investment Grade			—		—
	NA			—		—		OK			NA			—		—		Error
		Total Asset-Backed	$	33,319		100.0	%					Total Treasury & Government	$	127,189		100.0	%



NAIC Designations

	1		$	748,009		50.4	%
	2			651,842		43.9	%
	3			56,704		3.8	%
	4			18,575		1.3	%
	5			2,070		0.1	%
	6			8,222		0.6	%
		U.S. Insurer Fixed Income (2)		1,485,422		100.0	%
	Other (3)			232,426
	Cash and cash equivalents			108,062
		Total Invested Assets	$	1,825,910	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 15

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

																					YOY Q2
(Dollars in thousands)				Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012			Q2 2012		$ Change			% Change
Net Investment Income by Source
	Bonds & notes		$	29,014		$	27,462		$	27,413		$	26,019		$	25,762		$	23,797		$	(3,665	)		-13.3	%
	Preferred and common stocks			188			165			170			194			223			244			79			47.9	%
	Deposit asset underlying 10% reinsurance treaty			508			650			449			412			1,030			574			(76	)		-11.7	%
	Policy loans			347			306			441			326			314			223			(83	)		-27.2	%
	Cash & cash equivalents			70			65			63			109			135			111			46			70.8	%
	Other			(19	)		13			—			—			37			38			25		nm
		Total investment income		30,108			28,662			28,536			27,060			27,500			24,987			(3,675	)		-12.8	%
	Investment expenses			1,482			1,433			1,433			1,417			1,403			1,382			(51	)		-3.6	%
		Net investment income	$	28,626		$	27,229		$	27,103		$	25,643		$	26,097		$	23,605		$	(3,623	)		-13.3	%
		Fixed income book yield, end of period		5.30	%		5.38	%		5.33	%		5.52	%		5.46	%		5.48	%
		New money yield		2.72	%		4.45	%		2.42	%		3.69	%		2.69	%		3.46	%

																					YOY Q2
				Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012			Q2 2012		% Pt Change
Fixed Income Portfolio Quality Ratings
	Rating
	AAA			26.1	%		25.3	%		24.9	%		23.5	%		23.1	%		21.2	%		-4.2	%
	AA			9.5	%		9.8	%		9.9	%		8.3	%		8.5	%		7.6	%		-2.2	%
	A			22.4	%		22.6	%		22.6	%		23.7	%		23.3	%		23.4	%		0.8	%
	BBB			35.8	%		35.9	%		35.9	%		37.6	%		38.8	%		41.3	%		5.5	%
	Below Investment Grade			6.2	%		6.3	%		6.6	%		6.9	%		6.3	%		6.4	%		0.1	%
	NA			0.0	%		0.1	%		0.0	%		0.0	%		0.1	%		0.1	%		0.0	%
		Total Fixed Income		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%	nm

		Average rating by amortized cost		A			A			A			A			A			A		na

		As of June 30, 2012								As of June 30, 2012					As of June 30, 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		$	32,700		$	29,976		AAA	United Kingdom	$	65,469	$	60,686	AAA	$	—	$	—
2	General Electric Co		14,295			12,762		AA+	Australia		50,368		46,154	AA		2,934		2,725
3	Verizon Communications Inc		13,003			11,498		A-	Canada		42,055		38,310	A		17,072		15,507
4	Bank of America Corp		12,511			11,678		A-	France		24,868		23,844	BBB		11,905		10,533
5	Province of Ontario Canada		11,246			9,177		AA-	Brazil		18,272		16,273	Below Investment Grade		-		-
6	Iberdrola SA		10,572			9,441		BBB+	Germany		14,941		13,763	NA		-		-
7	National Rural Utilities Cooperative		10,369			7,185		A+	Ireland		13,483		12,742	Total	$	31,911	$	28,764
8	Prologis Inc		10,309			9,413		BBB-	Netherlands		13,092		12,507
9	Time Warner Cable Inc		9,417			9,120		BBB	Korea Republic Of		12,404		11,700
10	Altria Group Inc		9,282			7,417		BBB	Spain		12,031		11,504	Non-Government Investments (1)
11	Province of Quebec Canada		8,672			7,077		A+	Italy		11,325		11,189
12	Phillips 66		8,547			7,224		A	Switzerland		8,900		7,534	AAA	$	—	$	—
13	Ventas Inc		8,335			8,101		BBB	Mexico		8,278		7,375	AA		21,617		19,250
14	Roche Holding AG		8,141			6,564		AA-	Luxembourg		8,181		7,239	A		109,526		100,968
15	Valspar SA		7,929			7,099		BBB	Belgium		7,611		6,259	BBB		166,964		155,577
16	ArcelorMittal		7,799			7,011		BBB-	Emerging Markets (2)		9,066		8,217	Below Investment Grade		18,600		18,848
17	International Business Machine		7,685			6,406		AA-	All Other		31,482		29,776	NA		3,209		1,665
18	Montpelier Re Holdings Ltd		7,684			7,207		BBB	Total	$	351,826	$	325,071	Total	$	319,915	$	296,307
19	TESCO PLC		7,430			6,313		A-
20	Edison International		7,193			6,259		B
21	BHP Billiton Ltd		7,136			6,556		A+
22	MetLife Inc		7,037			6,626		AA-
23	TE Connectivity Ltd		7,008			6,974		BBB
24	American Express Co		6,905			6,449		BBB
25	Republic of Korea		6,904			6,368		A
	Total	$	248,107		$	219,902

	% of total fixed income portfolio		12.5	%		12.0	%


(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

14 of 15

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			Q2 2012


Recruits		220,950			235,125			221,920			231,390			244,756			52,813			65,138			83,074			43,731			58,551			48,976


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			89,651
New life-licensed representatives		36,308			39,383			37,629			34,488			33,711			7,145			8,061			10,334			8,171			7,650			9,786
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	)		(8,569	)
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			90,868


Issued term life policies		244,733			241,173			233,837			223,514			237,535			51,281			59,826			65,067			61,361			56,145			60,583


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		$	18,307


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		$	664,423
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			18,307
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	)		(14,322	)
Foreign currency impact, net		9,963			(13,891	)		10,873			3,158			1,970			2,244			843			(98	)		(1,019	)		(1,208	)		(384	)
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		$	668,024


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		$	47.8
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			11.4
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		$	59.2


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		$	1,193.9

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		$	35,550

15 of 15

Primerica, Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - August 7, 2012

Attached files

Primerica, Inc. Reports