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

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EX-99.1 - EXHIBIT 99.1 - Primerica, Inc.	a51396939ex99_1.htm
8-K - PRIMERICA, INC. 8-K - Primerica, Inc.	a51396939.htm

Exhibit 99.2

Supplemental Financial Information
Second Quarter 2016

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, financial analysis, and key statistics	11-12

Investment portfolio	13-15

Five-year historical key statistics	16

This document may contain forward-looking statements and information. Additional information and factors that could cause actual results to differ materially from any forward-looking statements or information in this document is available in our Form 10-K for the year ended December 31, 2015.

2 of 16

Preface

PRIMERICA, INC.

Financial Supplement

SECOND QUARTER 2016

This document is a financial supplement to our second quarter 2016 earnings release. It is designed to enable comprehensive analysis of our ongoing business using the same core metrics that our management utilizes in assessing our business and making strategic and operational decisions. Throughout this document we provide financial information that is derived from our U.S. GAAP financial statements and adjusted for three different purposes, as follows:

Operating adjustments exclude the impact of realized investment gains and losses. We exclude realized investment gains and losses in measuring operating revenues to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains and losses and other factors prior to an invested asset's maturity that are not directly associated with the Company's insurance operations.

Adjusted stockholders’ equity refers to the removal of the impact of net unrealized gains and losses on invested assets. We exclude unrealized investment gains and losses in measuring adjusted stockholders' equity as unrealized gains and losses from the Company's invested assets are largely caused by market movements in interest rates and credit spreads that do not necessarily correlate with the cash flows we will ultimately realize when an invested asset matures or is disposed.

IPO coinsurance transactions adjustments relate to transactions in the first quarter of 2010, where we reinsured between 80% and 90% of our business that was in-force at year-end 2009 to entities then affiliated with Citigroup Inc. (“Citi”) that were executed concurrent with our IPO. We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate within this block of business.

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.

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

3 of 16

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

PRIMERICA, INC.

Financial Supplement

(Dollars in thousands)	Dec 31, 2014			Mar 31, 2015			Jun 30, 2015			Sep 30, 2015			Dec 31, 2015			Mar 31, 2016			Jun 30, 2016
Condensed Balance Sheets
Assets:
Investments and cash excluding securities held to maturity	$	2,040,313		$	2,053,392		$	1,963,702		$	1,924,636		$	1,965,576		$	1,968,419		$	2,027,735
Securities held to maturity		220,000			238,000			328,000			356,000			365,220			404,860			431,000
Total investments and cash		2,260,313			2,291,392			2,291,702			2,280,636			2,330,796			2,373,279			2,458,735
Due from reinsurers		4,115,533			4,094,456			4,137,425			4,103,949			4,110,628			4,160,266			4,147,284
Deferred policy acquisition costs		1,351,180			1,377,022			1,430,508			1,465,175			1,500,259			1,559,833			1,619,236
Other assets		567,069			568,391			591,579			623,583			603,707			655,303			668,228
Separate account assets		2,440,303			2,386,265			2,324,980			2,086,598			2,063,899			2,264,108			2,311,124
Total assets	$	10,734,398		$	10,717,525		$	10,776,195		$	10,559,941		$	10,609,289		$	11,012,789		$	11,204,606

Liabilities:
Future policy benefits	$	5,264,608		$	5,289,016		$	5,361,580		$	5,388,042		$	5,431,711		$	5,518,834		$	5,581,043
Other policy liabilities		591,719			577,951			587,687			578,322			594,908			597,057			587,565
Income taxes		140,467			157,684			156,212			152,314			148,125			177,457			199,985
Other liabilities		410,629			402,126			384,666			397,114			416,417			418,469			422,556
Notes payable		372,187			372,278			372,369			372,460			372,552			372,643			372,735
Surplus note		219,147			237,162			327,176			355,190			364,424			404,079			430,233
Payable under securities lending		50,211			55,622			63,898			83,220			71,482			87,383			91,901
Separate account liabilities		2,440,303			2,386,265			2,324,980			2,086,598			2,063,899			2,264,108			2,311,124
Total liabilities		9,489,272			9,478,103			9,578,569			9,413,262			9,463,517			9,840,030			9,997,141
Stockholders’ equity:
Common stock ($0.01 par value) (1)		522			516			501			486			483			473			466
Paid-in capital		353,335			323,996			259,937			195,314			180,250			137,857			102,824
Retained earnings		795,741			830,624			871,440			912,749			952,804			989,685			1,040,860
Treasury stock		—			—			—			—			—			—			—
Accumulated other comprehensive income (loss), net:
Net unrealized investment gains (losses) not other-than-temporarily impaired		74,307			83,401			61,742			49,889			32,106			48,747			68,473
Net unrealized investment losses other-than-temporarily impaired		(461	)		(461	)		(461	)		(73	)		(71	)		(70	)		(68	)
Cumulative translation adjustment		21,682			1,346			4,468			(11,684	)		(19,801	)		(3,933	)		(5,091	)
Total stockholders’ equity		1,245,126			1,239,422			1,197,626			1,146,680			1,145,772			1,172,759			1,207,465
Total liabilities and stockholders' equity	$	10,734,398		$	10,717,525		$	10,776,195		$	10,559,941		$	10,609,289		$	11,012,789		$	11,204,606

Reconciliation of Adjusted Stockholders' Equity to Total Stockholders' Equity
Adjusted stockholders' equity	$	1,171,280		$	1,156,482		$	1,136,345		$	1,096,864		$	1,113,736		$	1,124,082		$	1,139,060
Reconciling items:
Net unrealized investment gains (losses) not other-than-temporarily impaired		74,307			83,401			61,742			49,889			32,106			48,747			68,473
Net unrealized investment losses other-than-temporarily impaired		(461	)		(461	)		(461	)		(73	)		(71	)		(70	)		(68	)
Total reconciling items		73,846			82,940			61,281			49,816			32,036			48,678			68,405
Total stockholders’ equity	$	1,245,126		$	1,239,422		$	1,197,626		$	1,146,680		$	1,145,772		$	1,172,759		$	1,207,465

Adjusted Stockholders' Equity Rollforward
Balance, beginning of period	$	1,216,813		$	1,171,280		$	1,156,482		$	1,136,345		$	1,096,864		$	1,113,736		$	1,124,082
Net Income		45,466			43,401			49,173			49,350			47,948			45,176			59,326
Shareholder dividends		(6,462	)		(8,517	)		(8,357	)		(8,042	)		(7,893	)		(8,295	)		(8,151	)
Retirement of shares and warrants		(82,447	)		(44,789	)		(70,999	)		(71,433	)		(20,538	)		(52,988	)		(41,330	)
Net foreign currency translation adjustment		(8,600	)		(20,336	)		3,121			(16,152	)		(8,116	)		15,867			(1,157	)
Other, net		6,510			15,444			6,925			6,795			5,471			10,585			6,290
Balance, end of period	$	1,171,280		$	1,156,482		$	1,136,345		$	1,096,864		$	1,113,736		$	1,124,082		$	1,139,060

Deferred Policy Acquisition Costs Rollforward
Balance, beginning of period	$	1,321,415		$	1,351,180		$	1,377,022		$	1,430,508		$	1,465,175		$	1,500,259		$	1,559,833
General expenses deferred		8,171			7,953			8,554			8,396			7,951			8,443			9,138
Commission costs deferred		67,980			70,389			78,799			79,787			77,810			81,174			89,783
Amortization of deferred policy acquisition costs		(39,544	)		(36,213	)		(36,383	)		(40,797	)		(44,334	)		(43,129	)		(38,720	)
Foreign currency impact and other, net		(6,842	)		(16,287	)		2,516			(12,718	)		(6,343	)		13,086			(798	)
Balance, end of period	$	1,351,180		$	1,377,022		$	1,430,508		$	1,465,175		$	1,500,259		$	1,559,833		$	1,619,236


(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 2015			Q2 2015			Q3 2015			Q4 2015			Q1 2016			Q2 2016			Change			% Change			YTD 2015			YTD 2016				$ Change			% Change
Earnings per Share
Basic earnings per share:
Weighted-average common shares and fully vested equity awards		52,642,881			51,786,679			50,081,730			49,061,165			48,549,580			47,657,649				(4,129,030	)		-8.0	%		52,212,414			48,103,614				(4,108,800	)		-7.9	%

Net income	$	43,401		$	49,173		$	49,350		$	47,948		$	45,176		$	59,326			$	10,153			20.6	%	$	92,573		$	104,502			$	11,929			12.9	%
Less income attributable to unvested participating securities		(444	)		(366	)		(379	)		(374	)		(370	)		(491	)			(124	)		-34.0	%		(814	)		(861	)			(47	)		-5.7	%
Net income used in computing basic EPS	$	42,956		$	48,806		$	48,971		$	47,574		$	44,806		$	58,835			$	10,029			20.5	%	$	91,760		$	103,642			$	11,882			12.9	%
Basic earnings per share	$	0.82		$	0.94		$	0.98		$	0.97		$	0.92		$	1.23			$	0.29			31.0	%	$	1.76		$	2.15			$	0.40			22.6	%

Net operating income	$	42,566		$	48,791		$	49,521		$	50,174		$	45,680		$	57,104			$	8,314			17.0	%	$	91,357		$	102,785			$	11,428			12.5	%
Less operating income attributable to unvested participating securities		(436	)		(363	)		(381	)		(392	)		(375	)		(472	)			(109	)		-30.0	%		(803	)		(847	)			(43	)		-5.4	%
Net operating income used in computing basic operating EPS	$	42,131		$	48,427		$	49,140		$	49,782		$	45,306		$	56,632			$	8,205			16.9	%	$	90,554		$	101,938			$	11,384			12.6	%
Basic operating income per share	$	0.80		$	0.94		$	0.98		$	1.01		$	0.93		$	1.19			$	0.25			27.1	%	$	1.73		$	2.12			$	0.38			22.2	%

Diluted earnings per share:
Weighted-average common shares and fully vested equity awards		52,642,881			51,786,679			50,081,730			49,061,165			48,549,580			47,657,649				(4,129,030	)		-8.0	%		52,212,414			48,103,614				(4,108,800	)		-7.9	%
Dilutive impact of contingently issuable shares		48,104			25,292			21,792			31,685			24,090			49,680				24,388			96.4	%		36,557			36,885				328			0.9	%
Shares used to calculate diluted EPS		52,690,985			51,811,971			50,103,522			49,092,850			48,573,670			47,707,329				(4,104,642	)		-7.9	%		52,248,971			48,140,499				(4,108,472	)		-7.9	%

Net income	$	43,401		$	49,173		$	49,350		$	47,948		$	45,176		$	59,326			$	10,153			20.6	%	$	92,573		$	104,502			$	11,929			12.9	%
Less income attributable to unvested participating securities		(444	)		(366	)		(379	)		(374	)		(370	)		(490	)			(124	)		-33.9	%		(813	)		(860	)			(47	)		-5.7	%
Net income used in computing diluted EPS	$	42,957		$	48,807		$	48,971		$	47,574		$	44,806		$	58,835			$	10,029			20.5	%	$	91,760		$	103,642			$	11,882			12.9	%
Diluted earnings per share	$	0.82		$	0.94		$	0.98		$	0.97		$	0.92		$	1.23			$	0.29			30.9	%	$	1.76		$	2.15			$	0.40			22.6	%

Net operating income	$	42,566		$	48,791		$	49,521		$	50,174		$	45,680		$	57,104			$	8,314			17.0	%	$	91,357		$	102,785			$	11,428			12.5	%
Less operating income attributable to unvested participating securities		(435	)		(363	)		(381	)		(392	)		(374	)		(472	)			(109	)		-29.9	%		(803	)		(846	)			(43	)		-5.4	%
Net operating income used in computing diluted operating EPS	$	42,131		$	48,427		$	49,140		$	49,782		$	45,306		$	56,632			$	8,205			16.9	%	$	90,554		$	101,939			$	11,384			12.6	%
Diluted operating income per share	$	0.80		$	0.93		$	0.98		$	1.01		$	0.93		$	1.19			$	0.25			27.0	%	$	1.73		$	2.12			$	0.38			22.2	%



		Q1 2015			Q2 2015			Q3 2015			Q4 2015			Q1 2016			Q2 2016		YOY Q2													YOY YTD
		Q1 2015			Q2 2015			Q3 2015			Q4 2015			Q1 2016			Q2 2016			Change			% Change			YTD 2015			YTD 2016				$ Change			% Change
Annualized Return on Equity
Average stockholders' equity	$	1,242,274		$	1,218,524		$	1,172,153		$	1,146,226		$	1,159,266		$	1,190,112			$	(28,412	)		-2.3	%	$	1,230,399		$	1,174,689			$	(55,710	)		-4.5	%
Average adjusted stockholders' equity	$	1,163,881		$	1,146,414		$	1,116,605		$	1,105,300		$	1,118,909		$	1,131,571			$	(14,843	)		-1.3	%	$	1,155,147		$	1,125,240			$	(29,907	)		-2.6	%

Net income return on stockholders' equity		14.0	%		16.1	%		16.8	%		16.7	%		15.6	%		19.9	%			3.8	%	nm				15.0	%		17.8	%			2.7	%	nm
Net income return on adjusted stockholders' equity		14.9	%		17.2	%		17.7	%		17.4	%		16.2	%		21.0	%			3.8	%	nm				16.0	%		18.6	%			2.5	%	nm

Net operating income return on adjusted stockholders' equity		14.6	%		17.0	%		17.7	%		18.2	%		16.3	%		20.2	%			3.2	%	nm				15.8	%		18.3	%			2.5	%	nm

Capital Structure
Debt-to-capital (1)		23.1	%		23.7	%		24.5	%		24.5	%		24.1	%		23.6	%			-0.1	%	nm				23.7	%		23.6	%			-0.1	%	nm

Cash and invested assets to stockholders' equity		1.8	x		1.9	x		2.0	x		2.0	x		2.0	x		2.0	x			0.1	x	nm				1.9	x		2.0	x			0.1	x	nm
Cash and invested assets to adjusted stockholders' equity		2.0	x		2.0	x		2.1	x		2.1	x		2.1	x		2.2	x			0.1	x	nm				2.0	x		2.2	x			0.1	x	nm

Share count, end of period (2)		51,554,770			50,110,938			48,571,139			48,296,623			47,295,175			46,601,587				(3,509,351	)		-7.0	%		50,110,938			46,601,587				(3,509,351	)		-7.0	%
Adjusted stockholders' equity per share	$	22.43		$	22.68		$	22.58		$	23.06		$	23.77		$	24.44			$	1.77			7.8	%	$	22.68		$	24.44			$	1.77			7.8	%

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)	Debt-to-capital is that of the parent company only. Capital in the debt-to-capital ratio includes stockholders' equity and the note payable.
(2)	Share count reflects outstanding common shares, 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 2015			Q2 2015			Q3 2015			Q4 2015			Q1 2016			Q2 2016		$ Change			% Change			YTD 2015			YTD 2016			$ Change			% Change
Statement of Income
Revenues:
Direct premiums	$	577,458		$	588,248		$	587,882		$	591,856		$	597,130		$	612,189		$	23,941			4.1	%	$	1,165,707		$	1,209,319		$	43,613			3.7	%
Ceded premiums		(397,541	)		(406,854	)		(393,987	)		(396,838	)		(395,333	)		(406,683	)		171		nm				(804,395	)		(802,017	)		2,379			0.3	%
Net premiums		179,918			181,394			193,895			195,018			201,797			205,506			24,112			13.3	%		361,312			407,303			45,991			12.7	%
Net investment income		21,173			19,075			18,715			17,546			21,238			20,389			1,314			6.9	%		40,249			41,627			1,379			3.4	%
Commissions and fees:
Sales-based (1)		60,035			63,072			56,418			57,859			56,220			59,057			(4,015	)		-6.4	%		123,107			115,276			(7,830	)		-6.4	%
Asset-based (2)		56,837			59,144			58,794			57,144			55,306			59,541			397			0.7	%		115,981			114,848			(1,133	)		-1.0	%
Account-based (3)		10,452			10,994			11,445			11,605			11,309			11,611			617			5.6	%		21,447			22,920			1,473			6.9	%
Other commissions and fees		5,511			5,939			5,711			6,185			5,987			6,692			753			12.7	%		11,451			12,679			1,228			10.7	%
Realized investment (losses) gains		1,284			597			(259	)		(3,361	)		(783	)		3,440			2,843		nm				1,881			2,657			776			41.2	%
Other, net		9,635			10,301			11,105			12,132			11,889			13,007			2,706			26.3	%		19,936			24,896			4,961			24.9	%
Total revenues		344,845			350,517			355,824			354,128			362,962			379,244			28,727			8.2	%		695,362			742,206			46,844			6.7	%
Benefits and expenses:
Benefits and claims		82,500			82,521			88,599			85,694			90,977			88,984			6,464			7.8	%		165,021			179,961			14,940			9.1	%
Amortization of DAC		36,213			36,383			40,797			44,334			43,129			38,720			2,337			6.4	%		72,595			81,849			9,254			12.7	%
Insurance commissions		3,189			4,145			4,619			4,388			4,147			4,472			327			7.9	%		7,334			8,619			1,285			17.5	%
Insurance expenses		34,348			28,744			30,261			29,667			33,311			33,026			4,282			14.9	%		63,093			66,337			3,245			5.1	%
Sales commissions:
Sales-based (1)		42,442			44,595			40,036			40,809			40,327			42,040			(2,556	)		-5.7	%		87,038			82,367			(4,670	)		-5.4	%
Asset-based (2)		23,251			24,059			24,374			23,802			23,093			24,907			849			3.5	%		47,309			48,000			691			1.5	%
Other sales commissions		2,764			2,845			2,991			2,925			3,222			3,199			354			12.4	%		5,609			6,421			812			14.5	%
Interest expense		8,676			8,642			8,718			7,471			7,173			7,178			(1,464	)		-16.9	%		17,318			14,350			(2,967	)		-17.1	%
Other operating expenses		44,652			41,759			40,475			42,644			47,370			44,838			3,079			7.4	%		86,411			92,208			5,797			6.7	%
Total benefits and expenses		278,036			273,692			280,871			281,735			292,749			287,364			13,672			5.0	%		551,728			580,113			28,386			5.1	%
Income before income taxes		66,809			76,825			74,953			72,393			70,213			91,880			15,055			19.6	%		143,635			162,093			18,458			12.9	%
Income taxes		23,408			27,653			25,603			24,445			25,037			32,554			4,902			17.7	%		51,061			57,591			6,530			12.8	%
Net income	$	43,401		$	49,173		$	49,350		$	47,948		$	45,176		$	59,326		$	10,153			20.6	%	$	92,573		$	104,502		$	11,929			12.9	%

Income Before Income Taxes by Segment
Term Life	$	36,076		$	44,689		$	46,519		$	45,925		$	46,081		$	58,017		$	13,328			29.8	%	$	80,765		$	104,098		$	23,333			28.9	%
Investment & Savings Products		35,044			37,746			34,811			38,482			31,691			36,065			(1,681	)		-4.5	%		72,789			67,755			(5,034	)		-6.9	%
Corporate & Other Distributed Products		(4,310	)		(5,610	)		(6,377	)		(12,014	)		(7,558	)		(2,202	)		3,408			60.7	%		(9,920	)		(9,760	)		160			1.6	%
Income before income taxes	$	66,809		$	76,825		$	74,953		$	72,393		$	70,213		$	91,880		$	15,055			19.6	%	$	143,635		$	162,093		$	18,458			12.9	%

6 of 16

Reconciliation of Statement of Income Non-GAAP to GAAP Financial Measures

PRIMERICA, INC.

Financial Supplement

																			YOY Q2												YOY YTD
		Q1 2015			Q2 2015			Q3 2015			Q4 2015			Q1 2016			Q2 2016		$ Change			% Change			YTD 2015			YTD 2016			$ Change			% Change
(Dollars in thousands)		Q1 2015			Q2 2015			Q3 2015			Q4 2015			Q1 2016			Q2 2016		$ Change			% Change			YTD 2015			YTD 2016			$ Change			% Change
Reconciliation from Term Life Adjusted Direct Premiums to Term Life Direct Premiums
Term Life adjusted direct premiums	$	237,430		$	247,889		$	256,026		$	259,700		$	267,750		$	281,350		$	33,461			13.5	%	$	485,319		$	549,100		$	63,780			13.1	%
Premiums ceded to IPO Coinsurers		331,733			331,984			323,501			324,870			321,494			322,767			(9,217	)		-2.8	%		663,717			644,262			(19,455	)		-2.9	%
Term Life direct premiums	$	569,164		$	579,873		$	579,527		$	584,570		$	589,244		$	604,117		$	24,244			4.2	%	$	1,149,036		$	1,193,361		$	44,325			3.9	%


Reconciliation from Term Life Other Ceded Premiums to Term Life Ceded Premiums
Term Life other ceded premiums	$	(63,389	)	$	(72,227	)	$	(67,939	)	$	(69,310	)	$	(71,776	)	$	(81,725	)	$	(9,498	)		-13.2	%	$	(135,616	)	$	(153,501	)	$	(17,886	)		-13.2	%
Premiums ceded to IPO Coinsurers		(331,733	)		(331,984	)		(323,501	)		(324,870	)		(321,494	)		(322,767	)		9,217			2.8	%		(663,717	)		(644,262	)		19,455			2.9	%
Term Life ceded premiums	$	(395,122	)	$	(404,211	)	$	(391,440	)	$	(394,179	)	$	(393,271	)	$	(404,492	)	$	(282	)		-0.1	%	$	(799,333	)	$	(797,763	)	$	1,570			0.2	%


Reconciliation from Operating Revenues to Total Revenues
Operating revenues	$	343,560		$	349,920		$	356,083		$	357,489		$	363,745		$	375,804		$	25,883			7.4	%	$	693,481		$	739,549		$	46,068			6.6	%
Realized investment gains/(losses)		1,284			597			(259	)		(3,361	)		(783	)		3,440		nm			nm				1,881			2,657		nm			nm
Total revenues	$	344,845		$	350,517		$	355,824		$	354,128		$	362,962		$	379,244		$	28,727			8.2	%	$	695,362		$	742,206		$	46,844			6.7	%


Reconciliation from Operating Income Before Income Taxes to Income Before Income Taxes
Operating income before income taxes	$	65,525		$	76,228		$	75,212		$	75,754		$	70,996		$	88,440		$	12,211			16.0	%	$	141,753		$	159,436		$	17,683			12.5	%

Operating income before income taxes reconciling items:
Realized investment gains/(losses)		1,284			597			(259	)		(3,361	)		(783	)		3,440		nm			nm				1,881			2,657		nm			nm
Total operating income before income taxes reconciling items		1,284			597			(259	)		(3,361	)		(783	)		3,440		nm			nm				1,881			2,657		nm			nm

Income before income taxes	$	66,809		$	76,825		$	74,953		$	72,393		$	70,213		$	91,880		$	15,055			19.6	%	$	143,635		$	162,093		$	18,458			12.9	%


Reconciliation from Net Operating Income to Net Income
Net operating income	$	42,566		$	48,791		$	49,521		$	50,174		$	45,680		$	57,104		$	8,314			17.0	%	$	91,357		$	102,785		$	11,428			12.5	%

Net operating income reconciling items:
Operating income before income taxes reconciling items		1,284			597			(259	)		(3,361	)		(783	)		3,440		nm			nm				1,881			2,657		nm			nm
Tax impact of operating income reconciling items at effective tax rate		(450	)		(215	)		88			1,135			279			(1,219	)	nm			nm				(665	)		(940	)	nm			nm
Total net operating income reconciling items		834			382			(170	)		(2,226	)		(504	)		2,221		nm			nm				1,217			1,717		nm			nm
Net income	$	43,401		$	49,173		$	49,350		$	47,948		$	45,176		$	59,326		$	10,153			20.6	%	$	92,573		$	104,502		$	11,929			12.9	%

7 of 16

Segment Operating Results

PRIMERICA, INC.

Financial Supplement

																			YOY Q2												YOY YTD
(Dollars in thousands)		Q1 2015			Q2 2015			Q3 2015			Q4 2015			Q1 2016			Q2 2016		$ Change			% Change			YTD 2015			YTD 2016			$ Change			% Change
Term Life Insurance
Revenues:
Direct Premiums	$	569,164		$	579,873		$	579,527		$	584,570		$	589,244		$	604,117		$	24,244			4.2	%	$	1,149,036		$	1,193,361		$	44,325			3.9	%
Premiums ceded to IPO coinsurers (1)		(331,733	)		(331,984	)		(323,501	)		(324,870	)		(321,494	)		(322,767	)		9,217			2.8	%		(663,717	)		(644,262	)		19,455			2.9	%
Adjusted direct premiums (2)		237,430			247,889			256,026			259,700			267,750			281,350			33,461			13.5	%		485,319			549,100			63,780			13.1	%
Other ceded premiums (3)		(63,389	)		(72,227	)		(67,939	)		(69,310	)		(71,776	)		(81,725	)		(9,498	)		-13.2	%		(135,616	)		(153,501	)		(17,886	)		-13.2	%
Net premiums		174,042			175,662			188,087			190,390			195,973			199,625			23,963			13.6	%		349,704			395,598			45,895			13.1	%
Allocated net investment income		1,405			1,436			1,508			1,639			1,850			1,871			436			30.3	%		2,840			3,721			880			31.0	%
Other, net		6,749			7,291			7,605			8,136			8,455			9,183			1,891			25.9	%		14,040			17,638			3,598			25.6	%
Operating revenues		182,195			184,389			197,200			200,165			206,278			210,679			26,290			14.3	%		366,584			416,957			50,373			13.7	%
Benefits and expenses:
Benefits and claims		77,990			78,268			83,816			82,158			86,795			83,835			5,567			7.1	%		156,258			170,630			14,372			9.2	%
Amortization of DAC		35,017			32,797			37,263			42,903			41,224			36,477			3,680			11.2	%		67,814			77,702			9,888			14.6	%
Insurance commissions		601			1,382			1,084			1,180			968			1,094			(288	)		-20.8	%		1,983			2,062			79			4.0	%
Insurance expenses		32,511			27,253			28,516			27,999			31,210			31,255			4,002			14.7	%		59,764			62,465			2,701			4.5	%
Operating benefits and expenses		146,119			139,700			150,680			154,240			160,198			152,662			12,962			9.3	%		285,819			312,859			27,040			9.5	%
Operating income before income taxes	$	36,076		$	44,689		$	46,519		$	45,925		$	46,081		$	58,017		$	13,328			29.8	%	$	80,765		$	104,098		$	23,333			28.9	%

Investment & Savings Products
Revenues:
Commissions and fees:
Sales-based	$	60,035		$	63,072		$	56,418		$	57,859		$	56,220		$	59,057		$	(4,015	)		-6.4	%	$	123,107		$	115,276		$	(7,830	)		-6.4	%
Asset-based		56,837			59,144			58,794			57,144			55,306			59,541			397			0.7	%		115,981			114,848			(1,133	)		-1.0	%
Account-based		10,452			10,994			11,445			11,605			11,309			11,611			617			5.6	%		21,447			22,920			1,473			6.9	%
Other, net		1,751			1,870			2,000			2,799			2,200			2,484			614			32.8	%		3,621			4,685			1,064			29.4	%
Operating revenues		129,074			135,081			128,657			129,408			125,035			132,694			(2,387	)		-1.8	%		264,155			257,729			(6,426	)		-2.4	%
Benefits and expenses:
Amortization of DAC		1,201			2,901			3,299			552			1,919			1,704			(1,197	)		-41.3	%		4,101			3,623			(479	)		-11.7	%
Insurance commissions		1,971			2,182			2,957			2,731			2,631			2,884			702			32.2	%		4,153			5,515			1,361			32.8	%
Sales commissions:
Sales-based		42,442			44,595			40,036			40,809			40,327			42,040			(2,556	)		-5.7	%		87,038			82,367			(4,670	)		-5.4	%
Asset-based		23,251			24,059			24,374			23,802			23,093			24,907			849			3.5	%		47,309			48,000			691			1.5	%
Other operating expenses		25,166			23,599			23,180			23,032			25,374			25,094			1,496			6.3	%		48,765			50,469			1,704			3.5	%
Operating benefits and expenses		94,031			97,335			93,846			90,925			93,345			96,629			(706	)		-0.7	%		191,366			189,973			(1,392	)		-0.7	%
Operating income before income taxes	$	35,044		$	37,746		$	34,811		$	38,482		$	31,691		$	36,065		$	(1,681	)		-4.5	%	$	72,789		$	67,755		$	(5,034	)		-6.9	%

Corporate & Other Distributed Products
Revenues:
Direct premiums	$	8,295		$	8,376		$	8,355		$	7,286		$	7,886		$	8,072		$	(304	)		-3.6	%	$	16,670		$	15,958		$	(712	)		-4.3	%
Ceded premiums		(2,419	)		(2,644	)		(2,547	)		(2,658	)		(2,063	)		(2,191	)		453			17.1	%		(5,063	)		(4,254	)		809			16.0	%
Net premiums		5,876			5,732			5,808			4,628			5,823			5,881			149			2.6	%		11,608			11,704			97			0.8	%
Allocated net investment income		19,768			17,640			17,207			15,907			19,389			18,518			878			5.0	%		37,408			37,906			498			1.3	%
Commissions and fees:
Loans		42			43			37			40			44			43			(0	)		-1.1	%		85			87			1			1.7	%
DebtWatchers		307			311			303			299			282			280			(31	)		-10.0	%		618			562			(56	)		-9.1	%
Prepaid Legal Services		2,468			2,494			2,527			2,579			2,650			2,739			245			9.8	%		4,962			5,389			427			8.6	%
Auto and Homeowners Insurance		1,770			2,096			1,841			2,201			1,757			2,231			136			6.5	%		3,865			3,989			123			3.2	%
Long-Term Care Insurance		534			583			558			599			713			638			55			9.4	%		1,117			1,351			234			21.0	%
Other sales commissions		391			412			445			466			540			762			350			84.8	%		803			1,302			499			62.1	%
Other, net		1,135			1,140			1,500			1,197			1,233			1,340			201			17.6	%		2,275			2,574			299			13.1	%
Operating revenues		32,291			30,450			30,227			27,916			32,432			32,431			1,981			6.5	%		62,741			64,863			2,122			3.4	%
Benefits and expenses:
Benefits and claims		4,510			4,253			4,783			3,536			4,182			5,149			896			21.1	%		8,764			9,331			568			6.5	%
Amortization of DAC		(5	)		685			235			880			(15	)		539			(146	)		-21.3	%		680			524			(156	)		-22.9	%
Insurance commissions		617			581			578			477			548			494			(87	)		-15.0	%		1,197			1,042			(155	)		-13.0	%
Insurance expenses		1,837			1,491			1,745			1,668			2,101			1,771			280			18.8	%		3,329			3,872			544			16.3	%
Sales commissions		2,764			2,845			2,991			2,925			3,222			3,199			354			12.4	%		5,609			6,421			812			14.5	%
Interest expense		8,676			8,642			8,718			7,471			7,173			7,178			(1,464	)		-16.9	%		17,317			14,350			(2,967	)		-17.1	%
Other operating expenses		19,486			18,160			17,296			19,612			21,995			19,744			1,584			8.7	%		37,646			41,740			4,093			10.9	%
Operating benefits and expenses		37,885			36,657			36,345			36,569			39,207			38,074			1,417			3.9	%		74,542			77,281			2,738			3.7	%
Operating income before income taxes	$	(5,595	)	$	(6,207	)	$	(6,118	)	$	(8,653	)	$	(6,775	)	$	(5,642	)	$	564			9.1	%	$	(11,801	)	$	(12,417	)	$	(616	)		-5.2	%


(1)	Premiums ceded to IPO coinsurers - premiums ceded to IPO coinsurers under the IPO coinsurance transactions excluding any reimbursements from the IPO coinsurers on previously existing reinsurance agreements
(2)	Adjusted direct premiums - direct premiums net of premiums ceded to IPO coinsurers
(3)	Other ceded premiums - premiums ceded to non-IPO coinsurers net of any applicable reimbursements from the IPO coinsurers

8 of 16

Term Life Insurance - Financial Results and Analysis

PRIMERICA, INC.

Financial Supplement

(Dollars in thousands)																			YOY Q2												YOY YTD
Term Life Insurance Operating Income Before Income Taxes		Q1 2015			Q2 2015			Q3 2015			Q4 2015			Q1 2016			Q2 2016		$ Change			% Change			YTD 2015			YTD 2016			$ Change			% Change
Revenues:
Direct Premiums	$	569,164		$	579,873		$	579,527		$	584,570		$	589,244		$	604,117		$	24,244			4.2	%	$	1,149,036		$	1,193,361		$	44,325			3.9	%
Premiums ceded to IPO coinsurers (1)		(331,733	)		(331,984	)		(323,501	)		(324,870	)		(321,494	)		(322,767	)		9,217			2.8	%		(663,717	)		(644,262	)		19,455			2.9	%
Adjusted direct premiums (2)		237,430			247,889			256,026			259,700			267,750			281,350			33,461			13.5	%		485,319			549,100			63,780			13.1	%
Other ceded premiums (3)		(63,389	)		(72,227	)		(67,939	)		(69,310	)		(71,776	)		(81,725	)		(9,498	)		-13.2	%		(135,616	)		(153,501	)		(17,886	)		-13.2	%
Net premiums		174,042			175,662			188,087			190,390			195,973			199,625			23,963			13.6	%		349,704			395,598			45,895			13.1	%
Allocated net investment income		1,405			1,436			1,508			1,639			1,850			1,871			436			30.3	%		2,840			3,721			880			31.0	%
Other, net		6,749			7,291			7,605			8,136			8,455			9,183			1,891			25.9	%		14,040			17,638			3,598			25.6	%
Operating revenues		182,195			184,389			197,200			200,165			206,278			210,679			26,290			14.3	%		366,584			416,957			50,373			13.7	%
Benefits and expenses:
Benefits and claims		77,990			78,268			83,816			82,158			86,795			83,835			5,567			7.1	%		156,258			170,630			14,372			9.2	%
Amortization of DAC		35,017			32,797			37,263			42,903			41,224			36,477			3,680			11.2	%		67,814			77,702			9,888			14.6	%
Insurance commissions		601			1,382			1,084			1,180			968			1,094			(288	)		-20.8	%		1,983			2,062			79			4.0	%
Insurance expenses		32,511			27,253			28,516			27,999			31,210			31,255			4,002			14.7	%		59,764			62,465			2,701			4.5	%
Operating benefits and expenses		146,119			139,700			150,680			154,240			160,198			152,662			12,962			9.3	%		285,819			312,859			27,040			9.5	%
Operating income before income taxes	$	36,076		$	44,689		$	46,519		$	45,925		$	46,081		$	58,017		$	13,328			29.8	%	$	80,765		$	104,098		$	23,333			28.9	%

Total Term Life Insurance - Financial Analysis
Primary direct premiums (4)	$	156,714		$	167,118		$	177,307		$	180,664		$	189,540		$	202,830		$	35,712			21.4	%	$	323,833		$	392,370		$	68,538			21.2	%
Legacy direct premiums (5)		412,449			412,754			402,220			403,906			399,704			401,287			(11,468	)		-2.8	%		825,204			800,991			(24,213	)		-2.9	%
Total direct premiums	$	569,164		$	579,873		$	579,527		$	584,570		$	589,244		$	604,117		$	24,244			4.2	%	$	1,149,036		$	1,193,361		$	44,325			3.9	%

Premiums ceded to IPO coinsurers	$	331,733		$	331,984		$	323,501		$	324,870		$	321,494		$	322,767		$	(9,217	)		-2.8	%	$	663,717		$	644,262		$	(19,455	)		-2.9	%
% of Legacy direct premiums		80.4	%		80.4	%		80.4	%		80.4	%		80.4	%		80.4	%	nm			nm				80.4	%		80.4	%	nm			nm

Benefits and claims, net (6)	$	141,379		$	150,494		$	151,755		$	151,468		$	158,571		$	165,560		$	15,065			10.0	%	$	291,873		$	324,131		$	32,258			11.1	%
% of adjusted direct premiums		59.5	%		60.7	%		59.3	%		58.3	%		59.2	%		58.8	%	nm			nm				60.1	%		59.0	%	nm			nm

DAC amortization & insurance commissions	$	35,619		$	34,179		$	38,347		$	44,083		$	42,193		$	37,572		$	3,393			9.9	%	$	69,798		$	79,764		$	9,967			14.3	%
% of adjusted direct premiums		15.0	%		13.8	%		15.0	%		17.0	%		15.8	%		13.4	%	nm			nm				14.4	%		14.5	%	nm			nm

Insurance expenses, net (7)	$	25,762		$	19,962		$	20,912		$	19,863		$	22,755		$	22,072		$	2,110			10.6	%	$	45,724		$	44,827		$	(897	)		-2.0	%
% of adjusted direct premiums		10.9	%		8.1	%		8.2	%		7.6	%		8.5	%		7.8	%	nm			nm				9.4	%		8.2	%	nm			nm

Total Term Life operating income before income taxes	$	36,076		$	44,689		$	46,519		$	45,925		$	46,081		$	58,017		$	13,328			29.8	%	$	80,765		$	104,098		$	23,333			28.9	%
Term Life operating margin (8)		15.2	%		18.0	%		18.2	%		17.7	%		17.2	%		20.6	%	nm			nm				16.6	%		19.0	%	nm			nm


(1)	Premiums ceded to IPO coinsurers - premiums ceded to IPO coinsurers under the IPO coinsurance transactions excluding any reimbursements from the IPO coinsurers on previously existing reinsurance agreements
(2)	Adjusted direct premiums - direct premiums net of premiums ceded to IPO coinsurers
(3)	Other ceded premiums - premiums ceded to non-IPO coinsurers net of any applicable reimbursements from the IPO coinsurers
(4)	Primary direct premiums - direct premiums not subject to the 2010 IPO coinsurance transactions
(5)	Legacy direct premiums - direct premiums subject to the 2010 IPO coinsurance transactions
(6)	Benefits and claims, net - benefits & claims net of other ceded premiums which are largely YRT
(7)	Insurance expenses, net - insurance expenses net of other net revenues
(8)	Term Life operating margin - Term Life operating income before income taxes as a percentage of adjusted direct premiums

9 of 16

Term Life Insurance - Key Statistics

PRIMERICA, INC.

Financial Supplement

																			YOY Q2												YOY YTD
(Dollars in thousands, except as noted)		Q1 2015			Q2 2015			Q3 2015			Q4 2015			Q1 2016			Q2 2016		$ Change			% Change			YTD 2015			YTD 2016			$ Change			% Change
Key Statistics

Life-insurance licensed sales force, beginning of period		98,358			98,145			101,008			104,702			106,710			108,220			10,075			10.3	%		98,358			106,710			8,352			8.5	%
New life-licensed representatives		7,486			10,439			11,160			10,547			9,666			12,171			1,732			16.6	%		17,925			21,837			3,912			21.8	%
Non-renewal and terminated representatives		(7,699	)		(7,576	)		(7,466	)		(8,539	)		(8,156	)		(8,026	)		(450	)		-5.9	%		(15,275	)		(16,182	)		(907	)		-5.9	%
Life-insurance licensed sales force, end of period		98,145			101,008			104,702			106,710			108,220			112,365			11,357			11.2	%		101,008			112,365			11,357			11.2	%

Estimated annualized issued term life premium ($mills) (1):
Premium from new policies	$	45.1		$	55.3		$	54.5		$	57.4		$	54.0		$	63.1		$	7.8			14.1	%	$	100.5		$	117.1		$	16.7			16.6	%
Additions and increases in premium		12.8			14.0			13.7			14.4			14.0			15.4			1.4			10.3	%		26.8			29.4			2.6			9.8	%
Total estimated annualized issued term life premium	$	57.9		$	69.3		$	68.2		$	71.8		$	68.0		$	78.6		$	9.2			13.3	%	$	127.3		$	146.5		$	19.3			15.1	%

Issued term life policies		55,677			68,097			66,658			69,627			66,376			77,384			9,287			13.6	%		123,774			143,760			19,986			16.1	%
Estimated average annualized issued term life premium per policy (1)(2)	$	811		$	813		$	817		$	825		$	814		$	816		$	3			0.4	%	$	812		$	815		$	3			0.4	%

Term life face amount in-force, beginning of period ($mills)	$	681,927		$	678,517		$	688,163		$	689,316		$	693,194		$	704,632		$	26,115			3.8	%	$	681,927		$	693,194		$	11,267			1.7	%
Issued term life face amount (3)		17,181			20,585			20,321			21,023			19,790			23,145			2,560			12.4	%		37,767			42,935			5,169			13.7	%
Terminated term life face amount		(13,344	)		(12,064	)		(13,659	)		(14,513	)		(13,814	)		(12,700	)		(636	)		-5.3	%		(25,408	)		(26,514	)		(1,105	)		-4.4	%
Foreign currency impact, net		(7,247	)		1,125			(5,509	)		(2,632	)		5,462			(321	)		(1,447	)		-128.6	%		(6,122	)		5,140			11,262		nm
Term life face amount in-force, end of period	$	678,517		$	688,163		$	689,316		$	693,194		$	704,632		$	714,756		$	26,593			3.9	%	$	688,163		$	714,756		$	26,593			3.9	%


(1)	Estimated annualized issued term life premium - estimated as average premium per $1,000 of face amounts issued on new policies and additions (before free look returns) multiplied by actual face amount issued on new policies, rider additions and face amount increases.
(2)	In whole dollars
(3)	Issued term life face amount - includes face amount on issued term life policies, additional riders added to existing policies, and face increases under increasing benefit riders

10 of 16

Investment and Savings Products - Financial Results and Financial Analysis

PRIMERICA, INC.

Financial Supplement

(Dollars in thousands, except as noted)																			YOY Q2												YOY YTD
Investment & Savings Products Operating Income Before Income Taxes		Q1 2015			Q2 2015			Q3 2015			Q4 2015			Q1 2016			Q2 2016		$ Change			% Change			YTD 2015			YTD 2016			$ Change			% Change
Revenues:
Commissions and fees:
Sales-based	$	60,035		$	63,072		$	56,418		$	57,859		$	56,220		$	59,057		$	(4,015	)		-6.4	%	$	123,107		$	115,276		$	(7,830	)		-6.4	%
Asset-based		56,837			59,144			58,794			57,144			55,306			59,541			397			0.7	%		115,981			114,848			(1,133	)		-1.0	%
Account-based		10,452			10,994			11,445			11,605			11,309			11,611			617			5.6	%		21,447			22,920			1,473			6.9	%
Other, net		1,751			1,870			2,000			2,799			2,200			2,484			614			32.8	%		3,621			4,685			1,064			29.4	%
Operating revenues		129,074			135,081			128,657			129,408			125,035			132,694			(2,387	)		-1.8	%		264,155			257,729			(6,426	)		-2.4	%
Benefits and expenses:
Amortization of DAC		1,201			2,901			3,299			552			1,919			1,704			(1,197	)		-41.3	%		4,101			3,623			(479	)		-11.7	%
Insurance commissions		1,971			2,182			2,957			2,731			2,631			2,884			702			32.2	%		4,153			5,515			1,361			32.8	%
Sales commissions:
Sales-based		42,442			44,595			40,036			40,809			40,327			42,040			(2,556	)		-5.7	%		87,038			82,367			(4,670	)		-5.4	%
Asset-based		23,251			24,059			24,374			23,802			23,093			24,907			849			3.5	%		47,309			48,000			691			1.5	%
Other operating expenses		25,166			23,599			23,180			23,032			25,374			25,094			1,496			6.3	%		48,765			50,469			1,704			3.5	%
Operating benefits and expenses		94,031			97,335			93,846			90,925			93,345			96,629			(706	)		-0.7	%		191,366			189,973			(1,392	)		-0.7	%
Operating income before income taxes	$	35,044		$	37,746		$	34,811		$	38,482		$	31,691		$	36,065		$	(1,681	)		-4.5	%	$	72,789		$	67,755		$	(5,034	)		-6.9	%

Financial Analysis

Fees paid based on client asset values (1)	$	4,674		$	4,828		$	4,540		$	4,429		$	4,298		$	4,677		$	(151	)		-3.1	%	$	9,502		$	8,974		$	(528	)		-5.6	%
Fees paid based on fee-generating positions (2)		3,172			3,439			3,464			3,483			3,495			3,510			72			2.1	%		6,610			7,005			395			6.0	%
Other operating expenses		17,320			15,332			15,175			15,120			17,582			16,907			1,575			10.3	%		32,652			34,489			1,837			5.6	%
Total other operating expenses	$	25,166		$	23,599		$	23,180		$	23,032		$	25,374		$	25,094		$	1,496			6.3	%	$	48,765		$	50,469		$	1,704			3.5	%

Sales-based net revenue as % of revenue-generating sales (3)
U.S.		1.36	%		1.34	%		1.38	%		1.38	%		1.31	%		1.29	%	nm			nm				1.35	%		1.30	%	nm			nm
Canada		1.09	%		1.07	%		0.97	%		0.96	%		1.10	%		1.04	%	nm			nm				1.08	%		1.08	%	nm			nm
Total		1.32	%		1.31	%		1.33	%		1.33	%		1.28	%		1.26	%	nm			nm				1.31	%		1.27	%	nm			nm

Asset-based net revenue as % of average asset values (4)
U.S.		0.036	%		0.037	%		0.037	%		0.036	%		0.036	%		0.036	%	nm			nm				0.073	%		0.071	%	nm			nm
Canada		0.134	%		0.118	%		0.111	%		0.146	%		0.124	%		0.131	%	nm			nm				0.252	%		0.256	%	nm			nm
Total		0.053	%		0.051	%		0.049	%		0.054	%		0.050	%		0.052	%	nm			nm				0.103	%		0.102	%	nm			nm

Account-based net revenue per average fee generating position (5)(6)	$	2.70		$	2.68		$	2.81		$	2.85		$	2.74		$	2.81		nm			nm			$	5.38		$	5.54		nm			nm


(1)	Fees paid based on client asset values - administration fees on Canadian Segregated Funds and advisory fees on Managed Accounts that vary directly with client asset values
(2)	Fees paid based on fee-generating positions - recordkeeping fees that vary with the number of fee-generating positions
(3)	Sales-based net revenue - commission and fee revenue less commissions paid to the sales force based on product sales activity
(4)	Asset-based net revenue - commission and fee revenue less administration and advisory fees paid to third-party providers and commissions paid to the sales force earned based on product account values including amortization of deferred acquisition costs for segregated funds
(5)	Account-based net revenue - fee revenue less recordkeeping fees paid to third-party providers based on fee-generating positions
(6)	In whole dollars

11 of 16

Investment and Savings Products - Key Statistics

PRIMERICA, INC.

Financial Supplement

(Dollars in thousands, except as noted)																			YOY Q2												YOY YTD
Key Statistics		Q1 2015			Q2 2015			Q3 2015			Q4 2015			Q1 2016			Q2 2016		$ Change			% Change			YTD 2015			YTD 2016			$ Change			% Change

Product sales ($mills)
U.S. Retail Mutual Funds	$	641.2		$	698.7		$	597.4		$	620.0		$	599.9		$	693.2		$	(5.5	)		-0.8	%	$	1,339.8		$	1,293.1		$	(46.8	)		-3.5	%
Canada Retail Mutual Funds		214.5			170.2			158.4			158.7			209.6			159.4			(10.7	)		-6.3	%		384.6			369.1			(15.5	)		-4.0	%
Indexed Annuities		73.7			91.2			75.3			80.2			84.4			114.2			23.1			25.3	%		164.8			198.6			33.8			20.5	%
Variable Annuities and other		405.0			452.2			404.3			422.2			349.4			383.6			(68.6	)		-15.2	%		857.2			733.0			(124.1	)		-14.5	%
Total sales-based revenue generating product sales		1,334.3			1,412.2			1,235.4			1,281.0			1,243.3			1,350.5			(61.7	)		-4.4	%		2,746.4			2,593.8			(152.6	)		-5.6	%
Managed Accounts		66.1			72.2			57.1			51.4			45.2			55.2			(17.0	)		-23.5	%		138.3			100.5			(37.9	)		-27.4	%
Segregated Funds		114.4			82.4			74.2			76.1			87.3			63.9			(18.5	)		-22.4	%		196.8			151.2			(45.5	)		-23.1	%
Total product sales	$	1,514.8		$	1,566.8		$	1,366.8		$	1,408.6		$	1,375.9		$	1,469.6		$	(97.1	)		-6.2	%	$	3,081.5		$	2,845.5		$	(236.0	)		-7.7	%

Canada Retail Mutual Funds	$	214.5		$	170.2		$	158.4		$	158.7		$	209.6		$	159.4		$	(10.7	)		-6.3	%	$	384.6		$	369.1		$	(15.5	)		-4.0	%
Segregated Funds		114.4			82.4			74.2			76.1			87.3			63.9			(18.5	)		-22.4	%		196.8			151.2			(45.5	)		-23.1	%
Total Canada product sales		328.8			252.6			232.7			234.8			297.0			223.4			(29.2	)		-11.6	%		581.4			520.3			(61.0	)		-10.5	%
Total U.S. product sales		1,185.9			1,314.2			1,134.1			1,173.8			1,078.9			1,246.3			(67.9	)		-5.2	%		2,500.1			2,325.2			(175.0	)		-7.0	%
Total product sales	$	1,514.8		$	1,566.8		$	1,366.8		$	1,408.6		$	1,375.9		$	1,469.6		$	(97.1	)		-6.2	%	$	3,081.5		$	2,845.5		$	(236.0	)		-7.7	%

Client asset values, beginning of period ($mills)	$	48,656		$	49,195		$	49,372		$	45,848		$	47,353		$	48,174		$	(1,021	)		-2.1	%	$	48,656		$	47,353		$	(1,303	)		-2.7	%
Inflows		1,515			1,567			1,367			1,409			1,376			1,470			(97	)		-6.2	%		3,082			2,846			(236	)		-7.7	%
Outflows (1)		(1,246	)		(1,267	)		(1,168	)		(1,163	)		(1,153	)		(1,222	)		44			3.5	%		(2,512	)		(2,376	)		137			5.4	%
Net flows		269			300			199			245			223			247			(53	)	nm				569			470			(99	)	nm
Foreign currency impact, net		(734	)		122			(581	)		(263	)		555			(32	)		(154	)	nm				(613	)		523			1,136		nm
Change in market value, net and other (2)		1,004			(245	)		(3,142	)		1,523			43			983			1,228		nm				759			1,026			267		nm
Client asset values, end of period	$	49,195		$	49,372		$	45,848		$	47,353		$	48,174		$	49,372		$	0		nm			$	49,372		$	49,372		$	0		nm
Annualized net flows as % of beginning of period asset values		2.2	%		2.4	%		1.6	%		2.1	%		1.9	%		2.1	%		-0.4	%	nm				2.3	%		2.0	%		-0.4	%	nm

Average client asset values ($mills)
U.S. Retail Mutual Funds	$	24,787		$	25,099		$	24,208		$	24,008		$	23,390		$	24,326		$	(773	)		-3.1	%		24,943			23,858		$	(1,085	)		-4.4	%
Canada Retail Mutual Funds		6,035			6,177			5,808			5,593			5,478			5,963			(214	)		-3.5	%		6,106			5,720			(386	)		-6.3	%
Managed Accounts		1,446			1,526			1,532			1,567			1,582			1,680			153			10.0	%		1,486			1,631			145			9.7	%
Indexed Annuities		1,089			1,162			1,230			1,296			1,366			1,450			288			24.7	%		1,126			1,408			282			25.1	%
Variable Annuities and other		12,995			13,313			12,980			12,965			12,711			13,228			(84	)		-0.6	%		13,154			12,969			(184	)		-1.4	%
Segregated Funds		2,390			2,381			2,205			2,112			2,120			2,289			(92	)		-3.9	%		2,386			2,204			(181	)		-7.6	%
Total	$	48,743		$	49,658		$	47,963		$	47,542		$	46,646		$	48,936		$	(722	)		-1.5	%	$	49,200		$	47,791		$	(1,409	)		-2.9	%

Canada Retail Mutual Funds	$	6,035		$	6,177		$	5,808		$	5,593		$	5,478		$	5,963		$	(214	)		-3.5	%	$	6,106		$	5,720		$	(386	)		-6.3	%
Segregated Funds		2,390			2,381			2,205			2,112			2,120			2,289			(92	)		-3.9	%		2,386			2,204			(181	)		-7.6	%
Total Canada average client assets		8,425			8,558			8,014			7,705			7,597			8,252			(306	)		-3.6	%		8,492			7,925			(567	)		-6.7	%
Total U.S. average client assets		40,317			41,100			39,950			39,837			39,049			40,684			(416	)		-1.0	%		40,709			39,866			(843	)		-2.1	%
Total average client assets	$	48,743		$	49,658		$	47,963		$	47,542		$	46,646		$	48,936		$	(722	)		-1.5	%	$	49,200		$	47,791		$	(1,409	)		-2.9	%

Average number of fee-generating positions (thous) (3)
Recordkeeping and custodial		2,067			2,165			2,179			2,188			2,191			2,200			35			1.6	%		2,116			2,196			79			3.8	%
Recordkeeping only		628			657			662			664			666			684			27			4.1	%		642			675			32			5.1	%
Total		2,695			2,822			2,841			2,853			2,857			2,884			62			2.2	%		2,758			2,870			112			4.1	%


(1)	Asset value outflows - include (a) redemptions of assets, (b) sales charges on the inflow sales figures, and (c) the net flow of money market funds sold and redeemed on the company's recordkeeping platform. The redemptions of assets must be estimated for approximately 4% of account values as these figures are not readily available. Actual redemptions as a percentage of account values for similar known account values are used to estimate the unknown redemption values.
(2)	Change in market value, net - market value fluctuations net of fees and expenses
(3)	Fee generating positions - mutual fund positions for which we receive recording keeping fees. An individual client account may include multiple mutual fund positions. We may also receive fees earned for custodial services that we provide to clients with retirement plan accounts that hold positions in these mutual funds.

12 of 16

Investment Portfolio - Summary of Holdings

PRIMERICA, INC.

Financial Supplement

	As of or for the period ended June 30, 2016
								% 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	$	213,091	$	213,091	$	-			10.7	%		11.3	%

Fixed Income:
Treasury		28,786		26,948		1,837			1.4	%		1.4	%		2.32	%	AAA
Government		156,998		145,504		11,494			7.9	%		7.7	%		3.99	%	AA-
Tax-Exempt Municipal		3,609		3,521		88			0.2	%		0.2	%		3.22	%	A-
Corporate		1,209,283		1,144,704		64,579			60.6	%		60.5	%		4.62	%	BBB+
Mortgage-Backed		87,538		80,545		6,993			4.4	%		4.3	%		4.53	%	AA+
Asset-Backed		39,162		38,718		444			2.0	%		2.0	%		1.70	%	AA+
CMBS		104,637		100,033		4,603			5.2	%		5.3	%		3.16	%	AAA
Private		97,705		92,529		5,176			4.9	%		4.9	%		4.89	%	BBB
Redeemable Preferred		4,119		4,100		19			0.2	%		0.2	%		14.02	%	BBB
Convertible		2,950		2,578		372			0.1	%		0.1	%		4.92	%	BBB
Total Fixed Income		1,734,786		1,639,181		95,605			86.9	%		86.7	%		4.40	%	A-

Equities:
Perpetual Preferred		17,637		15,766		1,871			0.9	%		0.8	%
Common Stock		18,542		12,710		5,832			0.9	%		0.7	%
Mutual Fund		6,756		4,826		1,930			0.3	%		0.3	%
Other		6,105		6,105		0			0.3	%		0.3	%
Total Equities		49,040		39,407		9,633			2.5	%		2.1	%

Total Invested Assets	$	1,996,917	$	1,891,679	$	105,238			100.0	%		100.0	%

Corporate Portfolio by Sector

Energy	$	142,413	$	138,657	$	3,756			11.8	%		12.1	%
Reits		131,014		123,509		7,505			10.8	%		10.8	%
Consumer Non Cyclical		130,345		121,028		9,317			10.8	%		10.6	%
Banking		128,522		124,405		4,116			10.6	%		10.9	%
Technology		100,269		95,906		4,363			8.3	%		8.4	%
Basic Industry		97,366		92,114		5,252			8.1	%		8.0	%
Electric		81,597		77,582		4,015			6.7	%		6.8	%
Insurance		77,734		71,712		6,023			6.4	%		6.3	%
Communications		75,860		70,112		5,748			6.3	%		6.1	%
Capital Goods		70,796		65,726		5,070			5.9	%		5.7	%
Consumer Cyclical		58,899		55,858		3,040			4.9	%		4.9	%
Transportation		40,171		38,291		1,880			3.3	%		3.3	%
Brokerage		33,330		31,259		2,071			2.8	%		2.7	%
Finance Companies		12,511		11,718		793			1.0	%		1.0	%
Natural Gas		11,043		10,426		616			0.9	%		0.9	%
Industrial Other		10,254		9,308		947			0.8	%		0.8	%
Financial Other		6,079		6,096		(17	)		0.5	%		0.5	%
Utility Other		1,081		997		84			0.1	%		0.1	%
Total Corporate portfolio	$	1,209,283	$	1,144,704	$	64,579			100.0	%		100.0	%

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

Effective maturity
< 1 Yr.	$	108,490	$	107,060	$	1,430			6.3	%		6.5	%		3.40	%
1-2 Yrs.		177,661		171,389		6,272			10.2	%		10.5	%		4.69	%
2-5 Yrs.		703,680		657,294		46,387			40.6	%		40.1	%		4.70	%
5-10 Yrs.		692,071		656,056		36,015			39.9	%		40.0	%		4.16	%
> 10 Yrs.		52,884		47,383		5,502			3.0	%		2.9	%		4.66	%
Total Fixed Income	$	1,734,786	$	1,639,181	$	95,605			100.0	%		100.0	%		4.40	%

Duration

Fixed Income portfolio duration		4.1	years

Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

13 of 16

Investment Portfolio - Quality Ratings As of June 30, 2016

PRIMERICA, INC.

Financial Supplement

(Dollars in thousands)
Investment Portfolio Quality Ratings (1)
	Amortized Cost		% of Total
Total Fixed Income portfolio:
Rating
AAA	$	255,485		15.6	%
AA		152,460		9.3	%
A		359,201		21.9	%
BBB		778,690		47.5	%
Below Investment Grade		91,055		5.6	%
NA		2,291		0.1	%
Total Fixed Income	$	1,639,181		100.0	%




	Amortized Cost		% of Total						Amortized Cost		% of Total
Corporate asset class:						Private asset class:
Rating							Rating
AAA	$	8,663		0.8	%		AAA		$	2,367		2.6	%
AA		69,996		6.1	%		AA			1,380		1.5	%
A		308,262		26.9	%		A			82,312		89.0	%
BBB		683,381		59.7	%		BBB			6,470		7.0	%
Below Investment Grade		74,127		6.5	%		Below Investment Grade			-		—
NA		275		0.0	%		NA			-		—
Total Corporate	$	1,144,704		100.0	%		Total Private		$	92,529		100.0	%


CMBS asset class:						Mortgage-Backed asset class:
Rating							Rating
AAA	$	95,292		95.3	%		AAA		$	76,209		94.6	%
AA		1,219		1.2	%		AA			1,682		2.1	%
A		-		—			A			539		0.7	%
BBB		2,304		2.3	%		BBB			2,115		2.6	%
Below Investment Grade		1,218		1.2	%		Below Investment Grade			-		—
NA		-		—			NA			-		—
Total CMBS	$	100,033		100.0	%		Total Mortgage-Backed		$	80,545		100.0	%


Asset-Backed asset class:						Treasury & Government asset classes:
Rating							Rating
AAA	$	22,824		58.9	%		AAA		$	51,938		30.1	%
AA		4,880		12.6	%		AA			72,023		41.8	%
A		9,058		23.4	%		A			35,531		20.6	%
BBB		11		0.0	%		BBB			7,110		4.1	%
Below Investment Grade		221		0.6	%		Below Investment Grade			5,852		3.4	%
NA		1,724		4.5	%		NA			-		—
Total Asset-Backed	$	38,718		100.0	%		Total Treasury & Government		$	172,453		100.0	%


NAIC Designations

1	$	586,002		43.0	%
2		702,065		49.3	%
3		69,825		5.7	%
4		16,779		1.2	%
5		1,433		0.7	%
6		1,105		0.1	%			`
U.S. Insurer Fixed Income (2)		1,377,208		100.0	%
Other (3)		301,380
Cash and cash equivalents		213,091
Total Invested Assets	$	1,891,679


(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
Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

14 of 16

Investment Portfolio - Supplemental Data and Trends

PRIMERICA, INC.

Financial Supplement

																			YOY Q2
(Dollars in thousands)		Q1 2015			Q2 2015			Q3 2015			Q4 2015			Q1 2016			Q2 2016		$ Change			% Change
Net Investment Income by Source
Fixed-maturity securities (available-for-sale)	$	19,795		$	19,551		$	18,786		$	19,140		$	19,249		$	18,377			(1,174	)		-6.0	%
Fixed-maturity securities (held-to-maturity)		2,475			2,707			3,772			4,094			4,154			4,605			1,898			70.1	%
Equity Securities		516			503			514			526			520			502			(1	)		-0.2	%
Deposit asset underlying 10% reinsurance treaty		1,672			(116	)		220			(1,294	)		2,200			2,185			2,301		mn
Policy loans and other invested assets		359			337			354			318			330			352			15			4.5	%
Cash & cash equivalents		43			47			51			87			149			199			152		mn
Total investment income		24,860			23,029			23,697			22,871			26,602			26,220			3,191			12.8	%
Investment expenses		1,212			1,247			1,210			1,231			1,210			1,226			(21	)		-1.7	%
Interest Expense on Surplus Note		2,475			2,707			3,772			4,094			4,154			4,605			1,898			70.1	%
Net investment income	$	21,173		$	19,075		$	18,715		$	17,546		$	21,238		$	20,389			1,314			6.9	%
Fixed income book yield, end of period		4.53	%		4.51	%		4.54	%		4.40	%		4.46	%		4.40	%
New money yield		2.47	%		2.57	%		3.39	%		2.26	%		3.14	%		2.41	%

																			YOY Q2
		Q1 2015			Q2 2015			Q3 2015			Q4 2015			Q1 2016			Q2 2016		% Pt Change
Fixed Income Portfolio Quality Ratings
Rating
AAA		17.3	%		16.6	%		16.0	%		17.2	%		16.7	%		15.6	%		-1.1	%
AA		6.9	%		6.5	%		6.8	%		7.4	%		8.1	%		9.3	%		2.8	%
A		22.4	%		22.6	%		22.1	%		22.8	%		22.5	%		21.9	%		-0.7	%
BBB		47.8	%		48.9	%		49.4	%		47.3	%		46.3	%		47.5	%		-1.4	%
Below Investment Grade		5.6	%		5.2	%		5.6	%		5.3	%		6.4	%		5.6	%		0.3	%
NA		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.1	%		0.1	%
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, 2016								As of June 30, 2016					As of June 30, 2016
		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	$	25,151		$	23,478		AAA	Australia	$	59,157	$	56,268	AAA	$	1,533	$	1,395
2	National Rural Utilities Cooperative		11,787			10,267		A	Canada		45,881		43,454	AA		16,922		16,011
3	General Electric Co		10,153			9,548		AA+	United Kingdom		35,772		33,714	A		10,962		10,188
4	Wells Fargo & Co		9,645			9,048		A	Bermuda		15,853		15,034	BBB		5,990		5,624
5	Iberdrola SA		9,024			8,473		BBB+	Switzerland		15,262		14,994	Below Investment Grade		5,927		6,079
6	National Fuel Gas Co		8,694			8,066		BBB	France		14,982		14,010	NA		0		0
7	Province of Ontario Canada		8,644			7,926		AA-	Netherlands		14,225		13,731	Total	$	41,334	$	39,296
8	Anheuser-Busch InBev SA/NV		8,504			7,837		A-	Belgium		13,205		11,708
9	TransCanada Corp		8,349			7,926		A-	Germany		12,190		11,708
10	US Bancorp		8,052			7,381		A-	Ireland		12,142		10,999	Non-Government Investments (1)
11	Macquarie Group Ltd		7,719			7,313		BBB	Brazil		11,205		11,270
12	AT&T Inc		7,695			6,414		BBB+	Japan		8,031		7,696	AAA	$	—	$	—
13	Australia & New Zealand Banking		7,666			7,495		A+	Korea Republic Of		6,708		6,391	AA		19,760		19,002
14	Prudential Financial Inc		7,501			7,157		A	Mexico		6,246		5,824	A		79,994		75,532
15	HSBC Holdings PLC		7,480			7,215		A	Cayman Islands		4,983		5,000	BBB		162,341		152,890
16	Express Scripts Holding Co		6,911			6,529		BBB+	Emerging Markets (2)		14,849		13,968	Below Investment Grade		15,974		15,663
17	Ventas Inc		6,905			6,499		BBB+	All Other		29,102		26,995	NA		390		379
18	Ingram Micro Inc		6,805			6,668		BBB-	Total	$	319,792	$	302,763	Total	$	278,458	$	263,466
19	Republic of Korea		6,708			6,391		AA-
20	Altria Group Inc		6,676			6,565		BBB+
21	International Business Machines		6,488			6,038		AA-
22	Brookfield Asset Management Inc		6,326			6,113		A-
23	Discovery Communications Inc		6,267			5,784		BBB-
24	Berkshire Hathaway Inc		6,210			5,915		AA
25	Intel Corp		6,199			5,221		A+
Total		$	211,557		$	197,267

% of total fixed income portfolio			10.6	%		10.4	%


(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
Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

15 of 16

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

(Dollars in millions)	2011			2012			2013			2014			2015				Q1 2015			Q2 2015			Q3 2015			Q4 2015			Q1 2016			Q2 2016


Recruits		244,756			191,752			186,251			190,439			228,115			53,300			60,246			65,945			48,624			63,427			65,273


Life-insurance licensed sales force, beginning of period		94,850			91,176			92,373			95,566			98,358			98,358			98,145			101,008			104,702			106,710			108,220
New life-licensed representatives		33,711			34,425			34,155			33,832			39,632			7,486			10,439			11,160			10,547			9,666			12,171
Non-renewal and terminated representatives		(37,385	)		(33,228	)		(30,962	)		(31,040	)		(31,280	)		(7,699	)		(7,576	)		(7,466	)		(8,539	)		(8,156	)		(8,026	)
Life-insurance licensed sales force, end of period		91,176			92,373			95,566			98,358			106,710			98,145			101,008			104,702			106,710			108,220			112,365


Issued term life policies		237,535			222,558			214,617			220,984			260,059			55,677			68,097			66,658			69,627			66,376			77,384


Issued term life face amount	$	73,146		$	68,053		$	67,783		$	69,574		$	79,111		$	17,181		$	20,585		$	20,321		$	21,023		$	19,790		$	23,145


Term life face amount in force, beginning of period	$	656,791		$	664,955		$	670,412		$	674,868		$	681,927		$	681,927		$	678,517		$	688,163		$	689,316		$	693,194		$	704,632
Issued term life face amount		73,146			68,053			67,783			69,574			79,111			17,181			20,585			20,321			21,023			19,790			23,145
Terminated term life face amount		(66,951	)		(61,593	)		(57,730	)		(54,962	)		(53,580	)		(13,344	)		(12,064	)		(13,659	)		(14,513	)		(13,814	)		(12,700	)
Foreign currency impact, net		1,970			(1,003	)		(5,596	)		(7,553	)		(14,263	)		(7,247	)		1,125			(5,509	)		(2,632	)		5,462			(321	)
Term life face amount in force, end of period	$	664,955		$	670,412		$	674,868		$	681,927		$	693,194		$	678,517		$	688,163		$	689,316		$	693,194		$	704,632		$	714,756


Estimated annualized issued term life premium
Premium from new policies	$	187.6		$	176.1		$	173.5		$	179.8		$	212.4		$	45.1		$	55.3		$	54.5		$	57.4		$	54.0		$	63.1
Additions and increases in premium		44.9			45.5			48.6			51.6			54.9			12.8			14.0			13.7			14.4			14.0			15.4
Total estimated annualized issued term life premium	$	232.5		$	221.5		$	222.1		$	231.4		$	267.3		$	57.9		$	69.3		$	68.2		$	71.8		$	68.0		$	78.6


Investment & Savings product sales	$	4,265.1		$	4,712.2		$	5,208.8		$	5,682.3		$	5,856.8		$	1,514.8		$	1,566.8		$	1,366.8		$	1,408.6		$	1,375.9		$	1,469.6

Investment & Savings average client asset values	$	34,870		$	35,904		$	41,035		$	46,936		$	48,477		$	48,743		$	49,658		$	47,963		$	47,542		$	46,646		$	48,936

16 of 16

Primerica, Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - August 8, 2016

Attached files

Primerica, Inc. Reports