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

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8-K - PRIMERICA, INC. 8-K - Primerica, Inc.	a50684361.htm
EX-99.1 - EXHIBIT 99.1 - Primerica, Inc.	a50684361ex99-1.htm

Exhibit 99.2

Supplemental Financial Information

Second Quarter 2013

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, 2012, as modified and updated by the Form 10-Q for the quarter ended March 31, 2013.

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Preface

PRIMERICA, INC.

Financial Supplement

SECOND QUARTER 2013

This document is a financial supplement to our second quarter 2013 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.

●	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.

In the second quarter of 2013, Primerica began classifying the deposit asset underlying the 10% reinsurance agreement with Citigroup, Inc. (Citigroup), as well as its related mark-to-market adjustments, within the Corporate and Other Distributed Products segment instead of within the Term Life Insurance segment. The deposit asset reflects a unique corporate financing-related asset that is not used in evaluating the Term Life segment, making operational decisions, or allocating resources. All prior periods have been adjusted to consistently reflect this revision. These adjustments include the reclassification of Net Investment Income/(Loss) from the Term Life Insurance Segment to the Corporate and Other Distributed Products Segment of $(1,061) in 2013 and $574 in 2012. The change does not impact our consolidated financial statements.

Historical return on investment of deposit asset included in net investment income
($ in thousands)
		2011	2012	2013
	Q1	$508	$1,030	$563
	Q2	$650	$574	($1,061)
	Q3	$449	$986
	Q4	$412	$315

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

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Condensed Balance Sheets and Reconciliation of Balance Sheet Non-GAAP to GAAP Financial Measures

PRIMERICA, INC.

Financial Supplement

(Dollars in thousands)	Dec 31, 2011			Mar 31, 2012			Jun 30, 2012			Sep 30, 2012			Dec 31, 2012			Mar 31, 2013			Jun 30, 2013
Condensed Balance Sheets
Assets:
Investments and cash	$	2,157,582		$	2,167,231		$	2,016,842		$	2,176,721		$	2,068,752		$	2,115,144		$	1,876,077
Due from reinsurers		3,855,318			3,895,162			3,903,028			3,993,603			4,005,194			4,005,539			3,993,258
Deferred policy acquisition costs		904,485			948,087			990,558			1,036,020			1,066,422			1,098,124			1,133,542
Other assets		525,836			522,123			540,010			597,465			579,393			599,840			566,809
Separate account assets		2,408,598			2,541,313			2,500,640			2,630,630			2,618,115			2,614,669			2,435,740
Total assets	$	9,851,820		$	10,073,917		$	9,951,077		$	10,434,439		$	10,337,877		$	10,433,316		$	10,005,426

Liabilities:
Future policy benefits	$	4,614,860		$	4,676,374		$	4,723,359		$	4,797,815		$	4,850,488		$	4,898,538		$	4,943,743
Other policy liabilities		589,542			606,793			593,956			595,382			606,310			614,892			584,587
Income taxes		81,316			88,503			82,755			96,408			114,611			122,925			89,713
Other liabilities		381,495			331,112			329,539			424,706			358,577			366,670			344,649
Notes payable		300,000			300,000			300,000			374,421			374,433			374,445			374,457
Payable under securities lending		149,358			142,507			143,963			177,666			139,927			133,325			86,272
Separate account liabilities		2,408,598			2,541,313			2,500,640			2,630,630			2,618,115			2,614,669			2,435,740
Total liabilities		8,525,169			8,686,602			8,674,211			9,097,028			9,062,461			9,125,463			8,859,162
Stockholders’ equity:
Common stock ($0.01 par value) (1)		649			653			599			597			564			567			545
Paid-in capital		835,232			842,613			693,717			691,885			602,269			609,100			456,050
Retained earnings		344,104			383,847			426,936			468,223			503,173			535,609			572,714
Treasury stock		—			—			—			—			—			—			—
Accumulated other comprehensive income (loss), net:
Net unrealized investment gains (losses) not other-than-temporarily impaired		97,082			107,598			107,187			119,836			114,958			112,263			74,845
Net unrealized investment losses other-than-temporarily impaired		(1,665	)		(1,981	)		(2,031	)		(1,364	)		(1,035	)		(1,045	)		(1,047	)
Cumulative translation adjustment		51,248			54,584			50,457			58,234			55,488			51,358			43,158
Total stockholders’ equity		1,326,650			1,387,314			1,276,866			1,337,411			1,275,416			1,307,853			1,146,265
Total liabilities and stockholders' equity	$	9,851,820		$	10,073,917		$	9,951,077		$	10,434,439		$	10,337,877		$	10,433,316		$	10,005,426

Reconciliation of Adjusted Stockholders' Equity to Total Stockholders' Equity
Adjusted stockholders' equity	$	1,231,233		$	1,281,697		$	1,171,709		$	1,218,939		$	1,161,494		$	1,196,634		$	1,072,467
Reconciling items:
Net unrealized investment gains (losses) not other-than-temporarily impaired		97,082			107,598			107,187			119,836			114,958			112,263			74,845
Net unrealized investment losses other-than-temporarily impaired		(1,665	)		(1,981	)		(2,031	)		(1,364	)		(1,035	)		(1,045	)		(1,047	)
Total reconciling items		95,417			105,617			105,156			118,472			113,923			111,219			73,797
Total stockholders’ equity	$	1,326,650		$	1,387,314		$	1,276,866		$	1,337,411		$	1,275,416		$	1,307,853		$	1,146,265

Deferred Policy Acquisition Costs Rollforward
Balance, beginning of period	$	864,623		$	904,485		$	948,087		$	990,558		$	1,036,020		$	1,066,422		$	1,098,124
General expenses deferred		7,754			7,003			7,492			7,234			6,869			6,631			8,669
Commission costs deferred		58,793			60,116			66,540			61,238			60,349			60,048			63,835
Amortization of deferred policy acquisition costs		(30,185	)		(26,531	)		(28,205	)		(29,234	)		(34,628	)		(31,252	)		(30,111	)
Foreign currency impact and other, net		3,501			3,015			(3,356	)		6,223			(2,187	)		(3,726	)		(6,974	)
Balance, end of period	$	904,485		$	948,087		$	990,558		$	1,036,020		$	1,066,422		$	1,098,124		$	1,133,542

(1)	Outstanding common shares exclude restricted stock units.

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Financial Results and Other Statistical Data

PRIMERICA, INC.

Financial Supplement

																			YOY Q2											YOY YTD
(Dollars in thousands, except per-share data)	Q1 2012			Q2 2012			Q3 2012			Q4 2012			Q1 2013			Q2 2013			Change			% Change		YTD 2012			YTD 2013			$ Change			% Change
Earnings per Share
Basic earnings per share:
Weighted-average common shares and fully vested equity awards	65,133,035			61,530,879			60,059,741			57,415,577			56,598,327			56,510,785			(5,020,094		)	-8.2	%	63,331,957			56,553,204			(6,778,753		)	-10.7	%

Net income	$	41,756		$	46,179		$	45,600		$	40,270		$	38,845		$	43,490		$	(2,689	)	-5.8	%	$	87,936		$	82,335		$	(5,601	)	-6.4	%
Less income attributable to unvested participating securities		(1,357	)		(1,110	)		(1,116	)		(1,026	)		(1,017	)		(553	)		558		50.2	%		(2,498	)		(1,602	)		895		35.8	%
Net income used in computing basic EPS	$	40,400		$	45,069		$	44,483		$	39,244		$	37,828		$	42,938		$	(2,132	)	-4.7	%	$	85,438		$	80,733		$	(4,705	)	-5.5	%
Basic earnings per share	$	0.62		$	0.73		$	0.74		$	0.68		$	0.67		$	0.76		$	0.03		3.7	%	$	1.35		$	1.43		$	0.08		5.8	%

Net operating income	$	42,377		$	45,455		$	45,103		$	41,603		$	39,317		$	41,367		$	(4,089	)	-9.0	%	$	87,832		$	80,683		$	(7,149	)	-8.1	%
Less operating income attributable to unvested participating securities		(1,377	)		(1,093	)		(1,104	)		(1,061	)		(1,030	)		(525	)		567		51.9	%		(2,495	)		(1,570	)		925		37.1	%
Net operating income used in computing basic operating EPS	$	41,000		$	44,362		$	43,999		$	40,542		$	38,287		$	40,841		$	(3,521	)	-7.9	%	$	85,337		$	79,113		$	(6,224	)	-7.3	%
Basic operating income per share	$	0.63		$	0.72		$	0.73		$	0.71		$	0.68		$	0.72		$	0.00		0.2	%	$	1.35		$	1.40		$	0.05		3.8	%

Diluted earnings per share:
Weighted-average common shares and fully vested equity awards	65,133,035			61,530,879			60,059,741			57,415,577			56,598,327			56,510,785			(5,020,094		)	-8.2	%	63,331,957			56,554,556			(6,777,401		)	-10.7	%
Dilutive impact of warrants and options		1,141,687			1,155,701			1,502,853			1,519,844			1,809,066			1,338,164			182,463		15.8	%		1,148,767			1,572,263			423,496		36.9	%
Shares used to calculate diluted EPS	66,274,722			62,686,580			61,562,594			58,935,421			58,407,393			57,848,949			(4,837,631		)	-7.7	%	64,480,724			58,126,819			(6,353,905		)	-9.9	%

Net income	$	41,756		$	46,179		$	45,600		$	40,270		$	38,845		$	43,490		$	(2,689		-5.8	%	$	87,936		$	82,335		$	(5,601	)	-6.4	%
Less income attributable to unvested participating securities		(1,335	)		(1,092	)		(1,092	)		(1,004	)		(991	)		(542	)		550		50.4	%		(2,457	)		(1,566			891		36.2	%
Net income used in computing diluted EPS	$	40,421		$	45,088		$	44,507		$	39,266		$	37,854		$	42,948		$	(2,140	)	-4.7	%	$	85,479		$	80,769		$	(4,710	)	-5.5	%
Diluted earnings per share	$	0.61		$	0.72		$	0.72		$	0.67		$	0.65		$	0.74		$	0.02		3.2	%	$	1.33		$	1.39		$	0.06		4.8	%

Net operating income	$	42,377		$	45,455		$	45,103		$	41,603		$	39,317		$	41,367		$	(4,089	)	-9.0	%	$	87,832		$	80,683		$	(7,149	)	-8.1	%
Less operating income attributable to unvested participating securities		(1,355	)		(1,074	)		(1,080	)		(1,037	)		(1,003	)		(515	)		559		52.1	%		(2,454	)		(1,535	)		919		37.5	%
Net operating income used in computing diluted operating EPS	$	41,022		$	44,381		$	44,023		$	40,566		$	38,313		$	40,851		$	(3,529	)	-8.0	%	$	85,378		$	79,148		$	(6,230	)	-7.3	%
Diluted operating income per share	$	0.62		$	0.71		$	0.72		$	0.69		$	0.66		$	0.71		$	(0.00	)	-0.3	%	$	1.32		$	1.36		$	0.04		2.8	%

													YOY Q2									YOY YTD
	Q1 2012		Q2 2012		Q3 2012		Q4 2012		Q1 2013		Q2 2013		Change			% Change		YTD 2012		YTD 2013		$ Change			% Change
Annualized Return on Equity
Average stockholders' equity	$	1,356,982	$	1,332,090	$	1,307,138	$	1,306,413	$	1,291,635	$	1,227,059	$	(105,032	)	-7.9	%	$	1,344,536	$	1,259,347	$	(85,190	)	-6.3	%
Average adjusted stockholders' equity	$	1,256,465	$	1,226,703	$	1,195,324	$	1,190,216	$	1,179,064	$	1,134,551	$	(92,153	)	-7.5	%	$	1,241,584	$	1,156,807	$	(84,777	)	-6.8	%

Net income return on stockholders' equity		12.3%		13.9%		14.0%		12.3%		12.0%		14.2%		0.3%		nm			13.1%		13.1%		0.0%		nm
Net income return on adjusted stockholders' equity		13.3%		15.1%		15.3%		13.5%		13.2%		15.3%		0.3%		nm			14.2%		14.2%		0.1%		nm

Net operating income return on adjusted stockholders' equity		13.5%		14.8%		15.1%		14.0%		13.3%		14.6%		-0.2%		nm			14.1%		13.9%		-0.2%		nm

Capital Structure
Debt-to-capital (1)		17.8%		19.0%		21.9%		22.7%		22.3%		24.6%		5.6%		nm			19.0%		24.6%		5.6%		nm

Cash and invested assets to stockholders' equity		1.6x		1.6x		1.6x		1.6x		1.6x		1.6x		0.1x		nm			1.6x		1.6x		0.1x		nm
Cash and invested assets to adjusted stockholders' equity		1.7x		1.7x		1.8x		1.8x		1.8x		1.7x		0.0x		nm			1.7x		1.7x		0.0x		nm

Share count, end of period (2)	65,303,547		59,868,486		59,722,559		56,373,795		56,682,195		54,503,822		(5,364,664		)	-9.0	%	59,868,486		54,503,822		(5,364,664		)	-9.0	%
Adjusted stockholders' equity per share	$	19.63	$	19.57	$	20.41	$	20.60	$	21.11	$	19.68	$	0.11		0.5	%	$	19.57	$	19.68	$	0.11		0.5	%

Financial Strength Ratings - Primerica Life Insurance Co
Moody's		A2		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

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

(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 2012			Q2 2012			Q3 2012			Q4 2012			Q1 2013			Q2 2013		$ Change			% Change		YTD 2012			YTD 2013			$ Change			% Change
Statement of Income
Revenues:
Direct premiums	$	561,037		$	570,073		$	567,273		$	569,591		$	570,899		$	577,208		$	7,135		1.3	%	$	1,131,110		$	1,148,107		$	16,997		1.5	%
Ceded premiums		(418,163	)		(415,814	)		(414,992	)		(414,783	)		(410,604	)		(417,450	)		(1,636	)	-0.4	%		(833,978	)		(828,054	)		5,924		0.7	%
Net premiums		142,874			154,259			152,282			154,808			160,295			159,758			5,499		3.6	%		297,132			320,053			22,921		7.7	%
Net investment income		26,097			23,605			26,882			24,221			23,216			21,027			(2,578	)	-10.9	%		49,702			44,243			(5,459	)	-11.0	%
Commissions and fees:
Sales-based (1)		44,459			47,267			43,119			50,140			49,425			51,838			4,571		9.7	%		91,726			101,263			9,537		10.4	%
Asset-based (2)		43,722			43,751			45,627			46,626			47,428			49,436			5,685		13.0	%		87,472			96,864			9,392		10.7	%
Account-based (3)		9,373			9,494			9,826			9,817			9,454			9,589			96		1.0	%		18,867			19,043			176		0.9	%
Other commissions and fees		6,343			6,248			5,764			6,188			5,674			5,994			(254	)	-4.1	%		12,591			11,668			(924	)	-7.3	%
Realized investment (losses) gains		2,132			4,320			3,872			1,058			2,286			3,468			(852	)	-19.7	%		6,452			5,754			(698	)	-10.8	%
Other, net		11,602			11,582			11,716			11,644			10,668			11,197			(385	)	-3.3	%		23,184			21,865			(1,319	)	-5.7	%
Total revenues		286,601			300,525			299,087			304,501			308,445			312,307			11,781		3.9	%		587,127			620,752			33,625		5.7	%
Benefits and expenses:
Benefits and claims		67,933			68,925			70,738			71,151			74,246			69,770			845		1.2	%		136,858			144,016			7,157		5.2	%
Amortization of DAC		26,531			28,205			29,234			34,628			31,252			30,111			1,906		6.8	%		54,736			61,364			6,627		12.1	%
Insurance commissions		8,496			6,457			6,684			5,916			6,066			5,424			(1,033	)	-16.0	%		14,954			11,490			(3,464	)	-23.2	%
Insurance expenses		22,444			24,589			23,744			25,764			27,142			28,094			3,505		14.3	%		47,033			55,236			8,203		17.4	%
Sales commissions:
Sales-based (1)		31,600			33,285			30,521			34,508			35,403			36,730			3,446		10.4	%		64,885			72,134			7,249		11.2	%
Asset-based (2)		14,745			15,031			15,557			16,157			16,637			17,778			2,747		18.3	%		29,777			34,415			4,639		15.6	%
Other sales commissions		3,371			3,159			3,292			3,342			3,007			3,129			(30	)	-0.9	%		6,531			6,137			(394	)	-6.0	%
Interest expense		6,910			8,505			8,829			8,857			8,795			8,792			287		3.4	%		15,416			17,588			2,172		14.1	%
Other operating expenses		41,104			40,447			39,933			43,233			45,664			45,031			4,583		11.3	%		81,551			90,694			9,143		11.2	%
Total benefits and expenses		223,135			228,605			228,532			243,555			248,213			244,860			16,256		7.1	%		451,740			493,073			41,333		9.1	%
Income before income taxes		63,466			71,921			70,556			60,946			60,232			67,446			(4,475	)	-6.2	%		135,386			127,678			(7,708	)	-5.7	%
Income taxes		21,709			25,741			24,956			20,675			21,387			23,956			(1,785	)	-6.9	%		47,451			45,343			(2,107	)	-4.4	%
Net income	$	41,756		$	46,179		$	45,600		$	40,270		$	38,845		$	43,490		$	(2,689	)	-5.8	%	$	87,936		$	82,335		$	(5,601	)	-6.4	%

Income Before Income Taxes by Segment
Term Life	$	43,254		$	51,148		$	47,593		$	43,931		$	45,125		$	51,898		$	750		1.5	%	$	94,402		$	97,023		$	2,621		2.8	%
Investment & Savings Products		28,869			29,444			31,608			31,194			26,353			27,488			(1,957	)	-6.6	%		58,314			53,841			(4,473	)	-7.7	%
Corporate & Other Distributed Products		(8,658	)		(8,672	)		(8,645	)		(14,179	)		(11,246	)		(11,940	)		(3,268	)	-37.7	%		(17,330	)		(23,185	)		(5,855	)	-33.8	%
Income before income taxes	$	63,466		$	71,921		$	70,556		$	60,946		$	60,232		$	67,446		$	(4,475	)	-6.2	%	$	135,386		$	127,678		$	(7,708	)	-5.7	%

(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
(Dollars in thousands)		Q1 2012			Q2 2012			Q3 2012			Q4 2012			Q1 2013			Q2 2013		$ Change			% Change		YTD 2012			YTD 2013			$ Change			% Change
Reconciliation from Operating Revenues to Total Revenues
Operating revenues	$	284,469		$	296,206		$	295,215		$	303,443		$	306,159		$	308,839		$	12,633		4.3	%	$	580,675		$	614,998		$	34,323		5.9	%

Operating revenues reconciling items:
Realized investment gains/losses		2,132			4,320			3,872			1,058			2,286			3,468		nm			nm			6,452			5,754		nm			nm
Total operating revenue reconciling items		2,132			4,320			3,872			1,058			2,286			3,468		nm			nm			6,452			5,754		nm			nm

Total revenues	$	286,601		$	300,525		$	299,087		$	304,501		$	308,445		$	312,307		$	11,781		3.9	%	$	587,127		$	620,752		$	33,625		5.7	%

Reconciliation from Operating Income Before Income Taxes to Income Before Income Taxes
Operating income before income taxes	$	64,409		$	70,793		$	69,787		$	62,962		$	60,964		$	64,153		$	(6,640	)	-9.4	%	$	135,201		$	125,116		$	(10,085	)	-7.5	%

Operating income before income taxes reconciling items:
Realized investment gains/losses		2,132			4,320			3,872			1,058			2,286			3,468		nm			nm			6,452			5,754		nm			nm
Initial & accelerated management / field grant expense		(3,075	)		(3,192	)		(3,104	)		(3,074	)		(3,018	)		(174	)	nm			nm			(6,267	)		(3,192	)	nm			nm
Total operating income before income taxes reconciling items		(943	)		1,128			768			(2,016	)		(731	)		3,293		nm			nm			185			2,562		nm			nm

Income before income taxes	$	63,466		$	71,921		$	70,556		$	60,946		$	60,232		$	67,446		$	(4,475	)	-6.2	%	$	135,386		$	127,678		$	(7,708	)	-5.7	%

Reconciliation from Net Operating Income to Net Income
Net operating income	$	42,377		$	45,455		$	45,103		$	41,603		$	39,317		$	41,367		$	(4,089	)	-9.0	%	$	87,832		$	80,683		$	(7,149	)	-8.1	%

Net operating income reconciling items:
Operating income before income taxes reconciling items		(943	)		1,128			768			(2,016	)		(731	)		3,293		nm			nm			185			2,562		nm			nm
Tax impact of operating income reconciling items at effective tax rate		323			(404	)		(272	)		684			260			(1,170	)	nm			nm			(81	)		(910	)	nm			nm
Total net operating income reconciling items		(621	)		724			497			(1,332	)		(472	)		2,123		nm			nm			104			1,652		nm			nm

Net income	$	41,756		$	46,179		$	45,600		$	40,270		$	38,845		$	43,490		$	(2,689	)	-5.8	%	$	87,936		$	82,335		$	(5,601	)	-6.4	%

7 of 15

Segment Operating Results

PRIMERICA, INC.

Financial Supplement

																			YOY Q2											YOY YTD
(Dollars in thousands)		Q1 2012			Q2 2012			Q3 2012			Q4 2012			Q1 2013			Q2 2013		$ Change			% Change		YTD 2012			YTD 2013			$ Change			% Change
Term Life Insurance
Revenues:
Direct premiums	$	542,157		$	550,329		$	549,069		$	551,725		$	552,034		$	559,035		$	8,706		1.6	%	$	1,092,487		$	1,111,069		$	18,583		1.7	%
Ceded premiums		(414,559	)		(412,038	)		(411,240	)		(411,786	)		(407,854	)		(414,222	)		(2,184	)	-0.5	%		(826,597	)		(822,076	)		4,521		0.5	%
Net premiums		127,598			138,292			137,829			139,939			144,180			144,813			6,522		4.7	%		265,890			288,993			23,104		8.7	%

Allocated net investment income		15,630			16,112			17,411			16,967			16,670			16,935			823		5.1	%		31,742			33,604			1,863		5.9	%
Other, net		7,547			7,753			7,788			7,268			6,984			7,435			(318	)	-4.1	%		15,301			14,419			(882	)	-5.8	%
Operating revenues		150,775			162,157			163,028			164,174			167,833			169,183			7,026		4.3	%		312,932			337,016			24,085		7.7	%
Benefits and expenses:
Benefits and claims		57,509			59,984			60,733			61,120			65,547			61,689			1,705		2.8	%		117,493			127,235			9,742		8.3	%
Amortization of DAC		23,933			22,547			27,645			30,147			27,865			25,777			3,230		14.3	%		46,480			53,642			7,161		15.4	%
Insurance commissions		3,577			2,314			2,168			1,539			1,199			1,062			(1,252	)	-54.1	%		5,891			2,261			(3,630	)	-61.6	%
Insurance expenses		19,717			21,782			20,532			23,125			23,846			24,508			2,725		12.5	%		41,499			48,353			6,854		16.5	%
Interest expense		2,785			4,380			4,357			4,313			4,252			4,250			(131	)	-3.0	%		7,166			8,502			1,336		18.6	%
Operating benefits and expenses		107,521			111,008			115,435			120,244			122,708			117,285			6,277		5.7	%		218,529			239,993			21,464		9.8	%
Operating income before income taxes	$	43,254		$	51,148		$	47,593		$	43,931		$	45,125		$	51,898		$	750		1.5	%	$	94,402		$	97,023		$	2,621		2.8	%

Investment & Savings Products
Revenues:
Commissions and fees:
Sales-based	$	44,459		$	47,267		$	43,119		$	50,140		$	49,425		$	51,838		$	4,571		9.7	%	$	91,726		$	101,263		$	9,537		10.4	%
Asset-based		43,722			43,751			45,627			46,626			47,428			49,436			5,685		13.0	%		87,472			96,864			9,392		10.7	%
Account-based		9,373			9,494			9,826			9,817			9,454			9,589			96		1.0	%		18,867			19,043			176		0.9	%
Other, net		2,580			2,456			2,591			3,118			2,415			2,498			42		1.7	%		5,036			4,913			(123	)	-2.4	%
Operating revenues		100,133			102,967			101,163			109,701			108,721			113,361			10,394		10.1	%		203,101			222,082			18,982		9.3	%
Benefits and expenses:
Amortization of DAC		3,223			2,881			1,411			3,442			2,892			3,876			995		34.6	%		6,103			6,768			664		10.9	%
Insurance commissions		2,149			2,252			2,323			2,347			2,274			2,331			79		3.5	%		4,401			4,605			204		4.6	%
Sales commissions:
Sales-based		31,600			33,285			30,521			34,508			35,403			36,730			3,446		10.4	%		64,885			72,134			7,249		11.2	%
Asset-based		14,745			15,031			15,557			16,157			16,637			17,778			2,747		18.3	%		29,777			34,415			4,639		15.6	%
Other operating expenses		19,547			20,074			19,744			22,052			25,162			25,159			5,084		25.3	%		39,621			50,320			10,699		27.0	%
Operating benefits and expenses		71,264			73,523			69,556			78,506			82,368			85,874			12,351		16.8	%		144,787			168,242			23,455		16.2	%
Operating income before income taxes	$	28,869		$	29,444		$	31,608		$	31,194		$	26,353		$	27,488		$	(1,957	)	-6.6	%	$	58,314		$	53,841		$	(4,473	)	-7.7	%

Corporate & Other Distributed Products
Revenues:
Direct premiums	$	18,880		$	19,744		$	18,204		$	17,866		$	18,865		$	18,173		$	(1,571	)	-8.0	%	$	38,624		$	37,038		$	(1,586	)	-4.1	%
Ceded premiums		(3,604	)		(3,777	)		(3,752	)		(2,998	)		(2,750	)		(3,229	)		548		14.5	%		(7,381	)		(5,978	)		1,402		19.0	%
Net premiums		15,276			15,967			14,453			14,869			16,115			14,944			(1,023	)	-6.4	%		31,243			31,060			(183	)	-0.6	%
Allocated net investment income		10,467			7,493			9,471			7,254			6,546			4,092			(3,401	)	-45.4	%		17,960			10,638			(7,322	)	-40.8	%
Commissions and fees:
Loans		913			627			438			400			293			406			(221	)	-35.2	%		1,539			699			(840	)	-54.6	%
DebtWatchers		717			648			609			548			491			462			(186	)	-28.7	%		1,365			953			(412	)	nm
Prepaid Legal Services		2,289			2,266			2,364			2,318			2,254			2,255			(11	)	-0.5	%		4,555			4,509			(45		-1.0	%
Auto and Homeowners Insurance		1,689			1,836			1,271			1,791			1,685			1,890			54		3.0	%		3,526			3,575			50		1.4	%
Long-Term Care Insurance		724			650			746			765			627			664			14		2.2	%		1,373			1,291			(82	)	-6.0	%
Other sales commissions		12			222			334			367			323			316			95		42.6	%		234			640			406		nm
Other, net		1,475			1,373			1,337			1,257			1,270			1,264			(109	)	-8.0	%		2,848			2,533			(315	)	-11.0	%
Operating revenues		33,561			31,082			31,024			29,568			29,604			26,295			(4,787	)	-15.4	%		64,642			55,899			(8,743	)	-13.5	%
Benefits and expenses:
Benefits and claims		10,424			8,941			10,004			10,031			8,699			8,081			(860	)	-9.6	%		19,365			16,780			(2,585	)	-13.3	%
Amortization of DAC		(625	)		2,778			178			1,040			496			459			(2,319	)	-83.5	%		2,153			955			(1,198	)	-55.7	%
Insurance commissions		2,770			1,891			2,194			2,031			2,592			2,031			140		7.4	%		4,661			4,624			(38	)	-0.8	%
Insurance expenses		2,727			2,807			3,213			2,638			3,296			3,587			780		27.8	%		5,534			6,883			1,349		24.4	%
Sales commissions		3,371			3,159			3,292			3,342			3,007			3,129			(30	)	-0.9	%		6,531			6,137			(394	)	-6.0	%
Interest expense		4,125			4,125			4,472			4,544			4,543			4,543			418		10.1	%		8,250			9,086			836		10.1	%
Other operating expenses		18,482			17,181			17,085			18,106			17,484			19,698			2,516		14.6	%		35,663			37,182			1,519		4.3	%
Operating benefits and expenses		41,275			40,882			40,437			41,731			40,119			41,528			645		1.6	%		82,157			81,646			(511	)	-0.6	%
Operating income before income taxes	$	(7,715	)	$	(9,800	)	$	(9,413	)	$	(12,163	)	$	(10,514	)	$	(15,233	)	$	(5,433	)	-55.4	%	$	(17,515	)	$	(25,747	)	$	(8,232	)	-47.0	%

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 2012			Q2 2012			Q3 2012			Q4 2012			Q1 2013			Q2 2013		$ Change			% Change		YTD 2012			YTD 2013			$ Change			% Change
Revenues:
Direct premiums	$	542,157		$	550,329		$	549,069		$	551,725		$	552,034		$	559,035		$	8,706		1.6	%	$	1,092,487		$	1,111,069		$	18,583		1.7	%
Ceded premiums		(414,559	)		(412,038	)		(411,240	)		(411,786	)		(407,854	)		(414,222	)		(2,184	)	-0.5	%		(826,597	)		(822,076	)		4,521		0.5	%
Net premiums		127,598			138,292			137,829			139,939			144,180			144,813			6,522		4.7	%		265,890			288,993			23,104		8.7	%
Allocated net investment income		15,630			16,112			17,411			16,967			16,670			16,935			823		5.1	%		31,742			33,604			1,863		5.9	%
Other, net		7,547			7,753			7,788			7,268			6,984			7,435			(318	)	-4.1	%		15,301			14,419			(882	)	-5.8	%
Operating revenues		150,775			162,157			163,028			164,174			167,833			169,183			7,026		4.3	%		312,932			337,016			24,085		7.7	%
Benefits and expenses:
Benefits and claims		57,509			59,984			60,733			61,120			65,547			61,689			1,705		2.8	%		117,493			127,235			9,742		8.3	%
Amortization of DAC		23,933			22,547			27,645			30,147			27,865			25,777			3,230		14.3	%		46,480			53,642			7,161		15.4	%
Insurance commissions		3,577			2,314			2,168			1,539			1,199			1,062			(1,252	)	-54.1	%		5,891			2,261			(3,630	)	-61.6	%
Insurance expenses		19,717			21,782			20,532			23,125			23,846			24,508			2,725		12.5	%		41,499			48,353			6,854		16.5	%
Interest expense		2,785			4,380			4,357			4,313			4,252			4,250			(131	)	-3.0	%		7,166			8,502			1,336		18.6	%
Operating benefits and expenses		107,521			111,008			115,435			120,244			122,708			117,285			6,277		5.7	%		218,529			239,993			21,464		9.8	%
Operating income before income taxes	$	43,254		$	51,148		$	47,593		$	43,931		$	45,125		$	51,898		$	750		1.5	%	$	94,402		$	97,023		$	2,621		2.8	%

New Term Life Insurance Operating Income Before Income Taxes (1)
Revenues:
Direct premiums	$	79,146		$	88,860		$	94,133		$	99,458		$	106,077		$	114,407		$	25,547		28.8	%	$	168,006		$	220,484		$	52,478		31.2	%
Ceded premiums		(13,012	)		(14,450	)		(13,333	)		(14,041	)		(18,577	)		(20,927	)		(6,478	)	-44.8	%		(27,461	)		(39,504	)		(12,043	)	-43.9	%
Net premiums		66,134			74,410			80,800			85,417			87,501			93,479			19,069		25.6	%		140,544			180,980			40,435		28.8	%
Allocated net investment income		1,302			2,431			2,997			3,387			3,513			3,941			1,510		62.1	%		3,733			7,454			3,721		99.7	%
Other, net		7,501			7,671			7,778			7,243			6,957			7,366			(306	)	-4.0	%		15,172			14,322			(850	)	-5.6	%
Operating revenues		74,938			84,512			91,575			96,047			97,971			104,786			20,274		24.0	%		159,450			202,756			43,306		27.2	%
Benefits and expenses:
Benefits and claims		25,056			26,667			31,057			32,460			32,124			33,764			7,096		26.6	%		51,723			65,888			14,165		27.4	%
Amortization of DAC		14,674			12,117			17,199			20,033			17,759			17,091			4,974		41.1	%		26,790			34,850			8,060		30.1	%
Insurance commissions		3,364			1,965			1,806			1,177			829			659			(1,307	)	-66.5	%		5,330			1,487			(3,842	)	-72.1	%
Insurance expenses		28,133			29,911			29,043			31,271			31,613			32,550			2,639		8.8	%		58,044			64,163			6,119		10.5	%
Interest expense		—			266			303			334			361			403			136		51.3	%		266			763			497		nm
Operating benefits and expenses		71,227			70,927			79,407			85,275			82,686			84,466			13,539		19.1	%		142,153			167,152			24,999		17.6	%
Operating income before income taxes	$	3,711		$	13,585		$	12,167		$	10,772		$	15,284		$	20,320		$	6,734		49.6	%	$	17,296		$	35,604		$	18,308		105.8	%

Legacy Term Life Insurance Operating Income Before Income Taxes (2)
Revenues:
Direct premiums	$	463,011		$	461,470		$	454,936		$	452,267		$	445,957		$	444,628		$	(16,842	)	-3.6	%	$	924,481		$	890,585		$	(33,896	)	-3.7	%
Ceded premiums		(401,548	)		(397,588	)		(397,907	)		(397,745	)		(389,277	)		(393,294			4,294		1.1	%		(799,136	)		(782,572	)		16,564		2.1	%
Net premiums		61,464			63,882			57,029			54,522			56,679			51,334			(12,548	)	-19.6	%		125,345			108,013			(17,332	)	-13.8	%
Allocated net investment income		14,328			13,681			14,414			13,580			13,156			12,994			(687	)	-5.0	%		28,008			26,150			(1,858	)	-6.6	%
Other, net		46			82			10			25			27			70			(13	)	-15.4	%		128			96			(32	)	-25.0	%
Operating revenues		75,837			77,645			71,453			68,128			69,863			64,397			(13,247	)	-17.1	%		153,482			134,260			(19,222	)	-12.5	%
Benefits and expenses:
Benefits and claims		32,453			33,317			29,676			28,660			33,422			27,925			(5,392	)	-16.2	%		65,770			61,347			(4,423	)	-6.7	%
Amortization of DAC		9,259			10,430			10,446			10,114			10,105			8,686			(1,744	)	-16.7	%		19,690			18,791			(898	)	-4.6	%
Insurance commissions		213			349			362			362			371			404			54		15.6	%		562			774			212		37.8	%
Insurance expenses		9,162			9,164			8,557			8,682			9,128			8,598			(566	)	-6.2	%		18,327			17,726			(601	)	-3.3	%
Insurance expense allowance		(17,579	)		(17,293	)		(17,068	)		(16,827	)		(16,896	)		(16,640	)		653		3.8	%		(34,872	)		(33,536	)		1,336		3.8	%
Interest expense		2,785			4,114			4,054			3,979			3,892			3,847			(267	)	-6.5	%		6,900			7,739			839		12.2	%
Operating benefits and expenses		36,294			40,082			36,028			34,969			40,022			32,819			(7,263	)	-18.1	%		76,376			72,841			(3,535	)	-4.6	%
Operating income before income taxes	$	39,543		$	37,563		$	35,425		$	33,159		$	29,841		$	31,578		$	(5,985	)	-15.9	%	$	77,106		$	61,419		$	(15,687	)	-20.3	%


(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

																		YOY Q2											YOY YTD
(Dollars in thousands, except as noted)		Q1 2012		Q2 2012			Q3 2012			Q4 2012			Q1 2013			Q2 2013		$ Change			% Change		YTD 2012			YTD 2013			$ Change			% Change
Key Statistics

Life-insurance licensed sales force, beginning of period		91,176		89,651			90,868			91,506			92,373			90,917			1,266		1.4	%		91,176			92,373			1,197		1.3	%
New life-licensed representatives		7,650		9,786			8,613			8,376			7,165			8,875			(911	)	-9.3	%		17,436			16,040			(1,396	)	-8.0	%
Non-renewal and terminated representatives		(9,175		(8,569	)		(7,975	)		(7,509	)		(8,621	)		(7,565	)		1,004		11.7	%		(17,744	)		(16,186	)		1,558		8.8	%
Life-insurance licensed sales force, end of period		89,651		90,868			91,506			92,373			90,917			92,227			1,359		1.5	%		90,868			92,227			1,359		1.5	%

Estimated annualized issued term life premium ($mills) (1):
Premium from new policies	$	44.7	$	47.8		$	41.8		$	41.7		$	40.2		$	45.9		$	(1.9	)	-4.1	%	$	92.6		$	86.1		$	(6.5	)	-7.0	%
Additions and increases in premium		10.7		11.4			11.6			11.8			11.4			12.3			1.0		8.6	%		22.1			23.7			1.7		7.5	%
Total estimated annualized issued term life premium	$	55.4	$	59.2		$	53.4		$	53.5		$	51.6		$	58.2		$	(1.0	)	-1.6	%	$	114.6		$	109.8		$	(4.8	)	-4.2	%

Issued term life policies		56,145		60,583			53,506			52,324			50,356			57,622			(2,961	)	-4.9	%		116,728			107,978			(8,750	)	-7.5	%
Estimated average annualized issued term life premium per policy (1)(2)	$	797	$	790		$	782		$	796		$	799		$	797		$	7		0.9	%	$	793		$	798		$	4		0.6	%

Term life face amount in-force, beginning of period ($mills)	$	664,955	$	664,423		$	668,024		$	669,132		$	670,412		$	670,414		$	5,991		0.9	%	$	664,955		$	670,412		$	5,457		0.8	%
Issued term life face amount (3)		16,983		18,307			16,345			16,418			15,709			17,798			(509	)	-2.8	%		35,290			33,508			(1,782	)	-5.1	%
Terminated term life face amount		(16,307		(14,322	)		(15,566	)		(15,398	)		(14,917	)		(13,139	)		1,184		8.3	%		(30,630	)		(28,056	)		2,574		8.4	%
Foreign currency impact, net		(1,208		(384	)		329			260			(790	)		(719	)		(335	)	nm			(1,592	)		(1,509	)		83		nm
Term life face amount in-force, end of period	$	664,423	$	668,024		$	669,132		$	670,412		$	670,414		$	674,355		$	6,331		0.9	%	$	668,024		$	674,355		$	6,331		0.9	%


New Term Life Insurance - Financial Analysis

Direct premium	$	79,146	$	88,860		$	94,133		$	99,458		$	106,077		$	114,407			25,547		28.8	%	$	168,006		$	220,484		$	52,478		31.2	%

New term life operating income before income taxes	$	3,711	$	13,585		$	12,167		$	10,772		$	15,284		$	20,320			6,734		49.6	%	$	17,296		$	35,604		$	18,308		105.8	%
% of direct premium		4.7		15.3	%		12.9	%		10.8	%		14.4	%		17.8	%	nm			nm			10.3	%		16.1	%	nm			nm

Benefits & expenses, net (4)	$	56,105	$	55,199		$	63,395		$	67,710		$	69,289		$	72,441			17,242		31.2	%	$	111,304		$	141,730		$	30,426		27.3	%
% of direct premium		70.9		62.1	%		67.3	%		68.1	%		65.3	%		63.3	%	nm			nm			66.3	%		64.3	%	nm			nm

Insurance expenses, net (5)	$	20,632	$	22,240		$	21,265		$	24,028		$	24,656		$	25,184			2,944		13.2	%	$	42,872		$	49,841		$	6,969		16.3	%
% of direct premium		26.1		25.0	%		22.6	%		24.2	%		23.2	%		22.0	%	nm			nm			25.5	%		22.6	%	nm			nm


Legacy Term Life Insurance - Financial Analysis

Direct premium	$	463,011	$	461,470		$	454,936		$	452,267		$	445,957		$	444,628			(16,842	)	-3.6	%	$	924,481		$	890,585		$	(33,896	)	-3.7	%

Legacy term life operating income before income taxes	$	39,543	$	37,563		$	35,425		$	33,159		$	29,841		$	31,578			(5,985	)	-15.9	%	$	77,106		$	61,419		$	(15,687	)	-20.3	%
% of direct premium		8.5		8.1	%		7.8	%		7.3	%		6.7	%		7.1	%	nm			nm			8.3	%		6.9	%	nm			nm


(1)	Estimated annualized issued term life premium - estimated as average premium per $1,000 of face amounts issued on new policies and additions (before free look returns) multiplied by actual face amount issued on new policies, rider additions and face amount increases.
(2)	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 2012			Q2 2012			Q3 2012			Q4 2012			Q1 2013			Q2 2013		$ Change			% Change			YTD 2012			YTD 2013			$ Change			% Change
Revenues:
Commissions and fees:
Sales-based	$	44,459		$	47,267		$	43,119		$	50,140		$	49,425		$	51,838		$	4,571			9.7	%	$	91,726		$	101,263		$	9,537			10.4	%
Asset-based		43,722			43,751			45,627			46,626			47,428			49,436			5,685			13.0	%		87,472			96,864			9,392			10.7	%
Account-based		9,373			9,494			9,826			9,817			9,454			9,589			96			1.0	%		18,867			19,043			176			0.9	%
Other, net		2,580			2,456			2,591			3,118			2,415			2,498			42			1.7	%		5,036			4,913			(123	)		-2.4	%
Operating revenues		100,133			102,967			101,163			109,701			108,721			113,361			10,394			10.1	%		203,101			222,082			18,982			9.3	%
Benefits and expenses:
Amortization of DAC		3,223			2,881			1,411			3,442			2,892			3,876			995			34.6	%		6,103			6,768			664			10.9	%
Insurance commissions		2,149			2,252			2,323			2,347			2,274			2,331			79			3.5	%		4,401			4,605			204			4.6	%
Sales commissions:
Sales-based		31,600			33,285			30,521			34,508			35,403			36,730			3,446			10.4	%		64,885			72,134			7,249			11.2	%
Asset-based		14,745			15,031			15,557			16,157			16,637			17,778			2,747			18.3	%		29,777			34,415			4,639			15.6	%
Other operating expenses		19,547			20,074			19,744			22,052			25,162			25,159			5,084			25.3	%		39,621			50,320			10,699			27.0	%
Operating benefits and expenses		71,264			73,523			69,556			78,506			82,368			85,874			12,351			16.8	%		144,787			168,242			23,455			16.2	%
Operating income before income taxes	$	28,869		$	29,444		$	31,608		$	31,194		$	26,353		$	27,488		$	(1,957	)		-6.6	%	$	58,314		$	53,841		$	(4,473	)		-7.7	%


Key Statistics
Product sales ($mills)
Retail Mutual Funds	$	611.9		$	589.6		$	545.7		$	598.5		$	711.9		$	722.7		$	133.0			22.6	%	$	1,201.5		$	1,434.6		$	233.1			19.4	%
Indexed Annuities		25.3			103.1			113.0			154.9			92.9			111.7			8.6			8.4	%		128.4			204.6			76.2			59.4	%
Variable Annuities and other		403.6			397.3			332.2			372.5			388.1			361.5			(35.7	)		-9.0	%		800.9			749.7			(51.2	)		-6.4	%
Total sales-based revenue generating product sales		1,040.8			1,090.0			990.9			1,126.0			1,193.0			1,195.9			105.9			9.7	%		2,130.8			2,388.9			258.1			12.1	%
Managed Accounts		23.1			39.6			37.3			35.8			56.7			57.5			17.9			45.3	%		62.7			114.2			51.5			82.1	%
Segregated Funds		123.7			64.3			63.5			77.3			115.6			64.3			(0.0	)	nm				188.0			179.9			(8.2	)		-4.3	%
Total product sales	$	1,187.7		$	1,193.9		$	1,091.7		$	1,239.0		$	1,365.3		$	1,317.7		$	123.8			10.4	%	$	2,381.6		$	2,683.0		$	301.4			12.7	%

Client asset values, beginning of period ($mills)	$	33,664		$	36,279		$	35,286		$	36,903		$	37,386		$	39,853		$	3,574			9.9	%	$	33,664		$	37,386		$	3,723			11.1	%
Inflows		1,188			1,194			1,092			1,239			1,365			1,318			124			10.4	%		2,382			2,683			301			12.7	%
Outflows (1)		(1,233	)		(1,144	)		(1,014	)		(1,052	)		(1,305	)		(1,188	)		(44	)		-3.8	%		(2,377	)		(2,493	)		(116	)		-4.9	%
Net flows		(45	)		50			78			187			60			130			80		nm				4			190			186		nm
Change in market value, net and other (2)		2,660			(1,043	)		1,540			296			2,406			184			1,226		nm				1,617			2,590			972		nm
Client asset values, end of period	$	36,279		$	35,286		$	36,903		$	37,386		$	39,853		$	40,166		$	4,881			13.8	%	$	35,286		$	40,166		$	4,881			13.8	%

Average client asset values ($mills)
Retail Mutual Funds	$	23,694		$	23,724		$	23,750		$	24,198		$	25,170		$	26,041		$	2,317			9.8	%	$	23,709		$	25,606		$	1,896			8.0	%
Managed Accounts		212			326			425			528			652			786			460			141.1	%		269			719			450		nm
Indexed Annuities		10			75			185			317			441			545			470		nm				43			493			450		nm
Variable Annuities and other		8,707			8,897			9,061			9,344			9,869			10,352			1,455			16.4	%		8,802			10,111			1,309			14.9	%
Segregated Funds		2,499			2,527			2,542			2,596			2,624			2,601			74			2.9	%		2,513			2,613			100			4.0	%
Total	$	35,122		$	35,550		$	35,962		$	36,983		$	38,756		$	40,326		$	4,776			13.4	%	$	35,336		$	39,541		$	4,205			11.9	%

Average number of fee-generating accounts (thous) (3)		2,584			2,583			2,552			2,547			2,536			2,522			(61	)		-2.4	%		2,584			2,529			(55	)		-2.1	%


Financial Analysis

Sales-based net revenue as % of sales (4)		1.24	%		1.28	%		1.27	%		1.39	%		1.18	%		1.26	%	nm			nm				1.26	%		1.22	%	nm			nm

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

Account-based revenue per average fee generating account (6)	$	3.63		$	3.67		$	3.85		$	3.85		$	3.73		$	3.80		nm			nm			$	7.30		$	7.53		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, 2013
									% 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	$	118,087		$	118,087	$	-			6.4	%		6.8	%

Fixed Income:
Treasury		31,017			30,211		806			1.7	%		1.7	%		2.86	%	AAA
Government		123,758			115,680		8,078			6.7	%		6.7	%		4.48	%	AA
Tax-Exempt Municipal		7,148			7,025		123			0.4	%		0.4	%		3.17	%	AA
Corporate		1,132,241			1,054,411		77,831			61.2	%		60.7	%		5.53	%	A-
Mortgage-Backed		146,281			135,184		11,098			7.9	%		7.8	%		5.63	%	AAA
Asset-Backed		30,988			31,399		(411	)		1.7	%		1.8	%		1.35	%	AA
CMBS		99,120			94,076		5,045			5.4	%		5.4	%		4.61	%	AAA
Private		114,249			110,082		4,167			6.2	%		6.3	%		5.46	%	BBB
Redeemable Preferred		1,650			2,677		(1,027	)		0.1	%		0.2	%		30.57	%	A-
Convertible		8,027			7,612		415			0.4	%		0.4	%		2.53	%	A-
Total Fixed Income		1,694,480			1,588,357		106,124			91.6	%		91.4	%		5.29	%	A

Equities:
Perpetual Preferred		5,957			5,585		372			0.3	%		0.3	%
Common Stock		13,896			9,635		4,261			0.8	%		0.6	%
Mutual Fund		5,508			3,495		2,013			0.3	%		0.2	%
Other		12,364			12,364		0			0.7	%		0.7	%
Total Equities		37,725			31,079		6,647			2.0	%		1.8	%

Total Invested Assets	$	1,850,293		$	1,737,522	$	112,771			100.0	%		100.0	%

Corporate Portfolio by Sector

Consumer Non Cyclical	$	128,147		$	116,088	$	12,059			11.3	%		11.0	%
Reits		112,237			106,542		5,695			9.9	%		10.1	%
Electric		109,973			97,707		12,266			9.7	%		9.3	%
Banking		101,274			96,617		4,656			8.9	%		9.2	%
Basic Industry		96,960			92,544		4,416			8.6	%		8.8	%
Insurance		86,900			79,554		7,345			7.7	%		7.5	%
Energy		83,242			76,832		6,410			7.4	%		7.3	%
Capital Goods		74,064			68,856		5,209			6.5	%		6.5	%
Technology		68,490			66,635		1,854			6.0	%		6.3	%
Communications		62,142			57,655		4,487			5.5	%		5.5	%
Natural Gas		56,045			51,631		4,414			4.9	%		4.9	%
Consumer Cyclical		46,165			43,269		2,896			4.1	%		4.1	%
Industrial Other		29,039			28,109		930			2.6	%		2.7	%
Finance Companies		24,479			22,384		2,095			2.2	%		2.1	%
Transportation		23,252			21,613		1,639			2.1	%		2.0	%
Brokerage		16,928			15,845		1,083			1.5	%		1.5	%
Financial Other		12,905			12,527		378			1.1	%		1.2	%
Total Corporate portfolio	$	1,132,241		$	1,054,411	$	77,831			100.0	%		100.0	%
	Error			Error
Fixed-Maturity Securities - Effective Maturity


Effective maturity
< 1 Yr.	$	216,565		$	211,037	$	5,528			12.8	%		13.3	%		5.79	%
1-2 Yrs.		182,162			174,277		7,886			10.8	%		11.0	%		4.76	%
2-5 Yrs.		521,720			483,694		38,025			30.8	%		30.5	%		5.11	%
5-10 Yrs.		736,137			685,759		50,378			43.4	%		43.2	%		5.38	%
> 10 Yrs.		37,897			33,590		4,307			2.2	%		2.1	%		5.29	%
Total Fixed Income	$	1,694,480		$	1,588,357	$	106,124			100.0	%		100.0	%		5.29	%

Duration

Fixed Income portfolio duration		3.9	years

12 of 15

Investment Portfolio - Quality Ratings as of June 30, 2013

PRIMERICA, INC.

Financial Supplement

(Dollars in thousands)
Investment Portfolio Quality Ratings (1)
			Amortized Cost	% of Total
Total Fixed Income portfolio:
Rating
AAA			$ 277,306	17.5%
AA			122,576	7.7%
A			363,077	22.9%
BBB			738,773	46.5%
Below Investment Grade			84,574	5.3%
NA			2,051	0.1%
	Total Fixed Income		$ 1,588,357	100.0%




			Amortized Cost	% of Total				Amortized Cost	% of Total
Corporate asset class:					Private asset class:
Rating					Rating
AAA		$	1,275	0.1%	AAA		$	172	0.2%
AA			61,646	5.8%	AA			4,323	3.9%
A			293,466	27.8%	A			14,145	12.8%
BBB			623,325	59.1%	BBB			87,082	79.1%
Below Investment Grade			73,611	7.0%	Below Investment Grade			3,861	3.5%
NA			1,088	0.1%	NA			500	0.5%
	Total Corporate	$	1,054,411	100.0%		Total Private	$	110,082	100.0%



CMBS asset class:					Mortgage-Backed asset class:
Rating					Rating
AAA		$	80,184	85.2%	AAA		$	122,528	90.6%
AA			4,745	5.0%	AA			6,124	4.5%
A			2,577	2.7%	A			2,116	1.6%
BBB			5,000	5.3%	BBB			4,416	3.3%
Below Investment Grade			1,568	1.7%	Below Investment Grade			-	—
NA			2	0.0%	NA			-	—
	Total CMBS	$	94,076	100.0%		Total Mortgage-Backed	$	135,184	100.0%



Asset-Backed asset class:					Treasury & Government asset classes:
Rating					Rating
AAA		$	18,719	59.6%	AAA		$	53,815	36.9%
AA			1,523	4.8%	AA			45,129	30.9%
A			4,777	15.2%	A			36,336	24.9%
BBB			5,000	15.9%	BBB			10,611	7.3%
Below Investment Grade			1,118	3.6%	Below Investment Grade			-	—
NA			263	0.8%	NA			-	—
	Total Asset-Backed	$	31,399	100.0%		Total Treasury & Government	$	145,891	100.0%



NAIC Designations

1		$	628,320	44.4%
2			708,016	50.0%
3			52,804	3.7%
4			16,577	1.2%
5			7,464	0.5%
6			2,198	0.2%
	U.S. Insurer Fixed Income (2)		1,415,378	100.0%
Other (3)			204,057
Cash and cash equivalents			118,087
	Total Invested Assets	$	1,737,522

(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 2012			Q2 2012			Q3 2012			Q4 2012			Q1 2013			Q2 2013		$ Change			% Change
Net Investment Income by Source
Bonds & notes	$	25,762		$	23,797		$	26,601		$	24,360		$	23,210		$	22,648			(1,149	)		-4.8%
Preferred and common stocks		223			244			245			339			272			292			48			19.7%
Deposit asset underlying 10% reinsurance treaty		1,030			574			986			315			563			(1,061	)		(1,635	)		-284.8%
Policy loans and other invested assets		350			261			315			325			320			327			66			25.3%
Cash & cash equivalents		135			111			101			106			88			73			(38	)		-34.2%
Total investment income		27,500			24,987			28,248			25,445			24,453			22,279			(2,708	)		-10.8%
Investment expenses		1,403			1,382			1,367			1,224			1,237			1,252			(130	)		-9.4%
Net investment income	$	26,097		$	23,605		$	26,881		$	24,221		$	23,216		$	21,027			(2,578	)		-10.9%
Fixed income book yield, end of period		5.46	%		5.48	%		5.30	%		5.32	%		5.28	%		5.29	%		—			—
New money yield		2.69	%		3.46	%		2.64	%		2.94	%		2.75	%		2.91	%		—			—

																			YOY Q2
		Q1 2012			Q2 2012			Q3 2012			Q4 2012			Q1 2013			Q2 2013		% Pt Change
Fixed Income Portfolio Quality Ratings
Rating
AAA		23.1	%		21.2	%		19.8	%		18.4	%		17.7	%		17.5	%		-4%			—
AA		8.5	%		7.6	%		8.3	%		7.7	%		7.7	%		7.7	%		0%			—
A		23.3	%		23.4	%		23.7	%		23.4	%		23.6	%		22.9	%		-1%			—
BBB		38.8	%		41.3	%		42.8	%		45.2	%		45.7	%		46.5	%		5%			—
Below Investment Grade		6.3	%		6.4	%		5.2	%		5.1	%		5.3	%		5.3	%		-1%			—
NA		0.1	%		0.1	%		0.2	%		0.1	%		0.0	%		0.1	%		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, 2013							As of June 30, 2013					As of June 30, 2013
			Market Value		Amortized Cost		Credit Rating		Market Value		Amortized Cost			Market Value		Amortized Cost
Top 25 Exposures								Foreign Exposure (1)					Government Investments (1)

	1	Canada	$	33,036	$	32,844	AAA	United Kingdom	$	61,333	$	58,090	AAA	$	747	$	749
	2	General Electric Co		26,624		23,364	AA-	Canada		41,548		39,503	AA		8,352		8,003
	3	International Business Machine		13,000		12,590	AA-	Australia		40,545		37,792	A		14,936		14,241
	4	Province of Ontario Canada		11,121		9,993	AA-	Brazil		21,835		21,028	BBB		11,307		10,611
	5	Iberdrola SA		10,543		9,454	BBB	France		17,781		17,085	Below Investment Grade		—		—
	6	National Rural Utilities Cooperative		10,410		7,690	A+	Germany		15,181		14,239	NA		—		—
	7	Province of Quebec Canada		8,168		7,252	A+	Ireland		15,144		13,745	Total	$	35,342	$	33,604
	8	Bank of America Corp		7,883		7,135	A-	Netherlands		13,398		13,031
	9	ArcelorMittal		7,814		7,032	BB+	Italy		12,968		12,721
	10	Vale SA		7,790		7,098	A-	Korea Republic Of		12,448		11,867	Non-Government Investments (1)
	11	Phillips 66		7,580		6,691	BBB	Spain		10,400		10,173
	12	Altria Group Inc		7,481		5,919	BBB	Mexico		8,533		8,213	AAA	$	—	$	—
	13	Washington Real Estate Investment		7,461		7,317	BBB	Bermuda		8,091		7,784	AA		19,370		17,331
	14	Prudential Financial Inc		7,435		6,816	A	Switzerland		8,088		6,838	A		95,616		89,857
	15	Enel Spa		7,270		6,979	BBB+	Luxembourg		7,992		7,199	BBB		182,559		174,247
	16	Tesco PLC		7,196		6,327	BBB+	Emerging Markets		12,694		12,497	Below Investment Grade		18,416		17,620
	17	Roche Holding AG		7,164		5,940	AA	All Other		43,791		41,560	NA		468		705
	18	TransCanada Corp		7,134		6,855	A-	Total	$	351,771	$	333,363	Total	$	316,429	$	299,759
	19	AT&T Inc		7,017		5,971	A-
	20	MetLife Inc		6,911		6,650	A-
	21	Republic of Korea		6,729		6,374	A+
	22	Verizon Communications Inc		6,541		5,889	A-
	23	Hospitality Properties Trust		6,442		6,392	BBB-
	24	Eaton Corp PLC		6,431		5,996	A-
	25	TTX Co		6,403		6,244	A+
		Total	$	241,583	$	220,81

		% of total fixed income portfolio		13.1%		12.7%


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

14 of 15

Five-Year Historical Key Statistics

PRIMERICA, INC.

Financial Supplement

(Dollars in millions)	2008			2009			2010			2011			2012				Q1 2012			Q2 2012			Q3 2012			Q4 2012			Q1 2013			Q2 2013


Recruits		235,125			221,920			231,390			244,756			191,752			58,551			48,976			47,639			36,586			46,348			50,358


Life-insurance licensed sales force, beginning of period		97,125			100,651			99,785			94,850			91,176			91,176			89,651			90,868			91,506			92,373			90,917
New life-licensed representatives		39,383			37,629			34,488			33,711			34,425			7,650			9,786			8,613			8,376			7,165			8,875
Non-renewal and terminated representatives		(35,857	)		(38,495	)		(39,423	)		(37,385	)		(33,228	)		(9,175	)		(8,569	)		(7,975	)		(7,509	)		(8,621	)		(7,565	)
Life-insurance licensed sales force, end of period		100,651			99,785			94,850			91,176			92,373			89,651			90,868			91,506			92,373			90,917			92,227


Issued term life policies		241,173			233,837			223,514			237,535			222,558			56,145			60,583			53,506			52,324			50,356			57,622


Issued term life face amount	$	87,279		$	80,497		$	74,401		$	73,146		$	68,053		$	16,983		$	18,307		$	16,345		$	16,418		$	15,709		$	17,798


Term life face amount in force, beginning of period	$	632,086		$	633,467		$	650,195		$	656,791		$	664,955		$	664,955		$	664,423		$	668,024		$	669,132		$	670,412		$	670,414
Issued term life face amount		87,279			80,497			74,401			73,146			68,053			16,983			18,307			16,345			16,418			15,709			17,798
Terminated term life face amount		(72,008	)		(74,642	)		(70,964	)		(66,951	)		(61,593	)		(16,307	)		(14,322	)		(15,566	)		(15,398	)		(14,917	)		(13,139	)
Foreign currency impact, net		(13,891	)		10,873			3,158			1,970			(1,003	)		(1,208	)		(384	)		329			260			(790	)		(719	)
Term life face amount in force, end of period	$	633,467		$	650,195		$	656,791		$	664,955		$	670,412		$	664,423		$	668,024		$	669,132		$	670,412		$	670,414		$	674,355


Estimated annualized issued term life premium
Premium from new policies	$	205.0		$	193.7		$	180.8		$	187.6		$	176.1		$	44.7		$	47.8		$	41.8		$	41.7		$	40.2		$	45.9
Additions and increases in premium		43.0			42.6			44.6			44.9			45.5			10.7			11.4			11.6			11.8			11.4			12.3
Total estimated annualized issued term life premium	$	248.0		$	236.3		$	225.4		$	232.5		$	221.5		$	55.4		$	59.2		$	53.4		$	53.5		$	51.6		$	58.2


Investment & Savings product sales	$	4,458.4		$	3,006.6		$	3,623.6		$	4,265.1		$	4,712.2		$	1,187.7		$	1,193.9		$	1,091.7		$	1,239.0		$	1,365.3		$	1,317.7

Investment & Savings average client asset values	$	32,763		$	26,845		$	31,908		$	34,870		$	35,904		$	35,122		$	35,550		$	35,962		$	36,983		$	38,756		$	40,326

15 of 15

Primerica, Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - August 6, 2013

Attached files

Primerica, Inc. Reports