a6812921ex99-2.htm

Supplemental Financial Information
Second Quarter 2011

Table of Contents	PRIMERICA, INC.
	Financial Supplement

	Page

Preface, definition of Non-GAAP financial measures	3

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

Financial results and other statistical data	5

Statements of income	6

Reconciliation of statement of income non-GAAP to GAAP financial measures	7

Segment operating results	8
Term Life Insurance segment - financial results, key statistics, and financial analysis	9-10
Investment and Savings Products segment - financial results, key statistics, and financial analysis	11

Investment portfolio	12-15

Five-year historical key statistics	16

This document may contain forward-looking statements and information. Additional information on factors that could cause results to differ materially from any forward-looking statements or information in this document is available in our preliminary prospectus supplement dated April 12, 2011 filed as an Exhibit to our Current Report on Form 8-K dated April 12, 2011.

Preface	PRIMERICA, INC.
	Financial Supplement

SECOND QUARTER 2011

This document is a financial supplement to our second quarter 2011 earnings release. It is designed to enable comprehensive analysis of our ongoing business using the same core metrics that our management utilizes in assessing our business and making strategic and operational decisions. Throughout this document we provide financial information that is derived from our U.S. GAAP financial statements and adjusted for two different purposes, as follows:

●

Operating adjustments exclude the expense associated with equity awards granted in connection with our initial public offering (“IPO”) and the impact of realized investment gains and losses. For periods which include the first quarter of 2010, operating adjustments reflect the impact of our reinsurance and reorganization activities as if they had been effected on January 1, 2010.

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

Management utilizes certain non-GAAP financial measures in managing the business and believes they present relevant and meaningful analytical metrics for evaluating the ongoing business. Reconciliations of non-GAAP to GAAP financial measures are included in this financial supplement.

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

IPO-related Transactions executed in first quarter 2010:

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

IPO-related Transactions executed in second quarter 2010:

●

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

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

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

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

●

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

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

●

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

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

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

	(2)			(3)
(Dollars in thousands)	Mar 31, 2010			Jun 30, 2010			Sep 30, 2010			Dec 31, 2010			Mar 31, 2011			Jun 30, 2011
Condensed Balance Sheets
Assets:
Investments and cash	$	2,983,780		$	2,275,564		$	2,284,127		$	2,279,621		$	2,330,098		$	2,297,013
Due from reinsurers		3,595,239			3,639,298			3,694,015			3,731,634			3,770,966			3,795,348
Deferred policy acquisition costs		702,429			745,322			798,335			853,211			908,600			966,094
Income taxes		56,114			—			—			—			—			—
Other assets		523,584			554,950			610,518			573,055			582,080			567,482
Separate account assets		2,222,267			2,098,936			2,301,896			2,446,786			2,582,881			2,544,429
Total assets	$	10,083,413		$	9,314,070		$	9,688,891		$	9,884,307		$	10,174,625		$	10,170,366

Liabilities:
Future policy benefits	$	4,248,277		$	4,286,258		$	4,349,375		$	4,409,183		$	4,470,185		$	4,532,615
Other policy liabilities		630,294			608,307			609,047			592,711			604,487			588,202
Income taxes		—			129,776			127,732			136,226			142,780			130,283
Other liabilities		1,106,834			412,141			395,762			386,182			397,561			364,533
Note payable		—			300,000			300,000			300,000			300,000			300,000
Payable under securities lending		129,042			161,056			208,765			181,726			186,089			163,342
Separate account liabilities		2,222,267			2,098,936			2,301,896			2,446,786			2,582,881			2,544,429
Total liabilities		8,336,714			7,996,474			8,292,577			8,452,814			8,683,983			8,623,404
Stockholders’ equity:
Common stock ($0.01 par value) (1)		—			727			727			728			732			736
Paid-in capital		1,312,072			870,706			882,676			883,169			889,654			894,018
Retained earnings		300,531			304,075			342,920			395,057			446,767			488,521
Treasury stock		—			—			—			—			—			—
Accumulated other comprehensive income (loss), net:
Net unrealized investment gains (losses) not other-than-temporarily impaired		85,265			97,505			120,949			98,322			96,543			105,647
Net unrealized investment losses other-than-temporarily impaired		(4,245	)		(3,703	)		(2,883	)		(2,275	)		(2,275	)		(2,275	)
Cumulative translation adjustment		53,076			48,286			51,925			56,492			59,221			60,315
Total stockholders’ equity		1,746,699			1,317,596			1,396,314			1,431,493			1,490,642			1,546,962
Total liabilities and stockholders' equity	$	10,083,413		$	9,314,070		$	9,688,891		$	9,884,307		$	10,174,625		$	10,170,366

Reconciliation of Adjusted Stockholders' Equity to Total Stockholders' Equity
Adjusted stockholders' equity	$	1,665,679		$	1,223,794		$	1,278,248		$	1,335,446		$	1,396,374		$	1,443,590
Reconciling items:
Net unrealized investment gains (losses) not other-than-temporarily impaired		85,265			97,505			120,949			98,322			96,543			105,647
Net unrealized investment losses other-than-temporarily impaired		(4,245	)		(3,703	)		(2,883	)		(2,275	)		(2,275	)		(2,275	)
Total reconciling items		81,020			93,802			118,066			96,047			94,268			103,372
Total stockholders’ equity	$	1,746,699		$	1,317,596		$	1,396,314		$	1,431,493		$	1,490,642		$	1,546,962

Deferred Policy Acquisition Costs Rollforward
Balance, beginning of period	$	2,789,905		$	702,429		$	745,322		$	798,335		$	853,211		$	908,600
General expenses deferred		16,095			15,061			14,876			14,481			14,123			16,946
Commission costs deferred		77,208			56,831			57,232			65,285			60,296			66,661
Amortization of deferred policy acquisition costs		(91,756	)		(22,899	)		(23,844	)		(29,536	)		(25,556	)		(27,385	)
Transferred to reinsurers		(2,099,941	)		—			—			—			—			—
Foreign currency impact and other, net		10,918			(6,100	)		4,750			4,646			6,527			1,272
Balance, end of period	$	702,429		$	745,322		$	798,335		$	853,211		$	908,600		$	966,094

(1)	Outstanding common shares exclude restricted stock units.

(2)

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

(3)

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

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

		Q1 2010		Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011		YOY Q2
(Dollars in thousands, except per-share data)		Q1 2010		Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011		$ Change			% Change			YTD 2011
Earnings per Share
Basic earnings per share:
Weighted-average common shares and fully vested equity awards	na			71,843,588			72,259,352			72,453,126			72,671,481			73,457,333			1,613,745			2.2	%		73,066,578

Net income	na		$	22,008		$	39,595		$	52,889		$	52,467		$	44,023		$	22,015			100.0	%	$	96,491
Less income attributable to unvested participating securities	na			(928	)		(1,540	)		(2,051	)		(2,103	)		(1,284	)		(356	)		-38.4	%		(3,225	)
Net income used in computing basic EPS	na		$	21,080		$	38,055		$	50,838		$	50,364		$	42,739		$	21,659			102.7	%	$	93,266
Basic earnings per share	na		$	0.29		$	0.53		$	0.70		$	0.69		$	0.58		$	0.29			98.3	%	$	1.28

Net operating income	na		$	37,199		$	40,913		$	45,217		$	48,629		$	44,999		$	7,799			21.0	%	$	93,628
Less operating income attributable to unvested participating securities	na			(1,569	)		(1,591	)		(1,753	)		(1,949	)		(1,313	)		256			16.3	%		(3,129	)
Net operating income used in computing basic operating EPS	na		$	35,631		$	39,322		$	43,464		$	46,680		$	43,686		$	8,055			22.6	%	$	90,498
Basic operating income per share	na		$	0.50		$	0.54		$	0.60		$	0.64		$	0.59		$	0.10			19.9	%	$	1.24

Diluted earnings per share:
Weighted-average common shares and fully vested equity awards	na			71,843,588			72,259,352			72,453,126			72,671,481			73,457,333			1,613,745			2.2	%		73,066,578
Dilutive impact of warrants	na			890,777			660,066			786,628			1,154,597			743,814			(146,963	)		-16.5	%		960,944
Shares used to calculate diluted EPS	na			72,734,365			72,919,418			73,239,754			73,826,078			74,201,147			1,466,782			2.0	%		74,027,522

Net income	na		$	22,008		$	39,595		$	52,889		$	52,467		$	44,023		$	22,015			100.0	%	$	96,491
Less income attributable to unvested participating securities	na			(917	)		(1,527	)		(2,030	)		(2,072	)		(1,272	)		(355	)		-38.7	%		(3,186	)
Net income used in computing diluted EPS	na		$	21,091		$	38,068		$	50,859		$	50,395		$	42,751		$	21,660			102.7	%	$	93,305
Diluted earnings per share	na		$	0.29		$	0.52		$	0.69		$	0.68		$	0.58		$	0.29			98.7	%	$	1.26

Net operating income	na		$	37,199		$	40,913		$	45,217		$	48,629		$	44,999		$	7,799			21.0	%	$	93,628
Less operating income attributable to unvested participating securities	na			(1,550	)		(1,578	)		(1,735	)		(1,920	)		(1,301	)		250			16.1	%		(3,091	)
Net operating income used in computing diluted operating EPS	na		$	35,649		$	39,335		$	43,482		$	46,709		$	43,698		$	8,049			22.6	%	$	90,537
Diluted operating income per share	na		$	0.49		$	0.54		$	0.59		$	0.63		$	0.59		$	0.10			20.2	%	$	1.22

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

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

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

																		YOY Q2
		Q1 2010		Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011		Change			% Change		YTD 2011
Annualized Return on Equity
Average stockholders' equity	na		$	1,296,220		$	1,356,955		$	1,413,904		$	1,461,068		$	1,518,802		$	222,583			17.2%	$	1,489,935
Average adjusted stockholders' equity	na		$	1,208,809		$	1,251,021		$	1,306,847		$	1,365,910		$	1,419,982		$	211,174			17.5%	$	1,392,946

Net income return on stockholders' equity	na			6.8	%		11.7	%		15.0	%		14.4	%		11.6	%		4.8	%	nm			13.0	%
Net income return on adjusted stockholders' equity	na			7.3	%		12.7	%		16.2	%		15.4	%		12.4	%		5.1	%	nm			13.9	%

Net operating income return on adjusted stockholders' equity	na			12.3	%		13.1	%		13.8	%		14.2	%		12.7	%		0.4	%	nm			13.4	%

Capital Structure
Debt-to-capital (1)	na			18.5	%		17.7	%		17.3	%		16.8	%		16.2	%		-2.3	%	nm			16.2	%

Cash and invested assets to stockholders' equity	na			1.7	x		1.6	x		1.6	x		1.6	x		1.5	x		(0.2x	)	nm			1.5	x
Cash and invested assets to adjusted stockholders' equity	na			1.9	x		1.8	x		1.7	x		1.7	x		1.6	x		(0.3x	)	nm			1.6	x

Share count, end of period (2)	na			72,729,617			72,727,173			72,843,213			73,187,837			73,603,111			873,494			1.2%		73,603,111
Adjusted stockholders' equity per share	na		$	16.83		$	17.58		$	18.33		$	19.08		$	19.61		$	2.79			16.6%	$	19.61

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

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

Statements of Income	PRIMERICA, INC.
	Financial Supplement

		(4)																	YOY Q2
(Dollars in thousands)		Q1 2010			Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011		$ Change			% Change			YTD 2011
Statement of Income
Revenues:
Direct premiums	$	537,845		$	547,455		$	547,444		$	548,330		$	552,069		$	560,881		$	13,426			2.5	%	$	1,112,950
Ceded premiums		(148,119	)		(447,213	)		(437,054	)		(417,981	)		(422,238	)		(435,564	)		11,649			2.6	%		(857,802	)
Net premiums		389,726			100,242			110,390			130,349			129,831			125,317			25,075			25.0	%		255,148
Net investment income		82,576			27,991			27,855			26,688			28,626			27,229			(762	)		-2.7	%		55,855
Commissions and fees:
Sales-based (1)		36,363			36,301			32,941			37,001			43,128			44,904			8,603			23.7	%		88,032
Asset-based (2)		38,014			39,445			37,602			52,412			44,825			45,348			5,904			15.0	%		90,174
Account-based (3)		10,208			10,317			10,620			10,545			10,432			11,811			1,493			14.5	%		22,242
Other commissions and fees		7,105			7,162			8,574			8,331			7,731			6,635			(528	)		-7.4	%		14,366
Realized investment (losses) gains		31,057			374			1,015			1,700			327			2,035			1,661		nm				2,362
Other, net		11,893			12,466			12,239			12,362			11,452			11,816			(650	)		-5.2	%		23,268
Total revenues		606,942			234,299			241,236			279,387			276,352			275,095			40,796			17.4	%		551,447
Benefits and expenses:
Benefits and claims		170,735			45,124			49,811			52,033			57,635			57,272			12,148			26.9	%		114,907
Amortization of DAC		91,756			22,899			23,844			29,536			25,556			27,385			4,486			19.6	%		52,941
Insurance commissions		6,371			4,233			5,100			4,205			5,000			4,219			(14	)	nm				9,219
Insurance expenses		37,529			10,083			11,999			15,887			9,552			19,154			9,071			90.0	%		28,706
Sales commissions:
Sales-based (1)		26,203			25,998			23,474			25,319			30,547			31,378			5,381			20.7	%		61,925
Asset-based (2)		12,715			12,911			12,232			20,271			15,451			15,111			2,200			17.0	%		30,562
Other sales commissions		4,963			4,603			6,558			4,676			4,358			3,674			(929	)		-20.2	%		8,032
Interest expense		—			6,928			6,968			6,976			6,997			6,998			70			1.0	%		13,995
Other operating expenses		36,268			65,183			39,371			39,962			40,111			41,743			(23,440	)		-36.0	%		81,854
Total benefits and expenses		386,541			197,961			179,357			198,865			195,207			206,934			8,973			4.5	%		402,141
Income before income taxes		220,402			36,338			61,879			80,522			81,145			68,161			31,823			87.6	%		149,306
Income taxes		77,116			14,330			22,284			27,633			28,678			24,138			9,808			68.4	%		52,816
Net income	$	143,286		$	22,008		$	39,595		$	52,889		$	52,467		$	44,023		$	22,015			100.0	%	$	96,490

Income Before Income Taxes by Segment
Term Life	$	160,367		$	44,095		$	42,581		$	52,000		$	57,649		$	45,781		$	1,686			3.8	%	$	103,430
Investment & Savings Products		25,447			26,735			26,578			34,769			31,039			30,470			3,735			14.0	%		61,509
Corporate & Other Distributed Products		34,587			(34,492	)		(7,280	)		(6,247	)		(7,543	)		(8,090	)		26,402			76.5	%		(15,633	)
Income before income taxes	$	220,402		$	36,338		$	61,879		$	80,522		$	81,145		$	68,161		$	31,823			87.6	%	$	149,306


(1)	Sales-based - revenues or commission expenses relating to the sales of mutual funds and variable annuities
(2)	Asset-based - revenues or commission expenses relating to the value of assets in client accounts for which we earn ongoing service, distribution, and other fees
(3)	Account-based - revenues relating to the fee generating client accounts we administer
(4)	Excludes the effect of the reinsurance and reorganization transactions we executed in connection with and subsequent to our IPO. As such, ceded premiums, net investment income, benefits and claims, amortization of DAC, insurance expenses, interest expense, and other operating expenses exclude the impact of the various Citi reinsurance agreements, dividends, the note payable to Citi, and the equity grants made in connection with our IPO.

6 of 16

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

																			YOY Q2											YOY YTD
(Dollars in thousands)	Q1 2010			Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011			$ Change		% Change			YTD 2010			YTD 2011			$ Change			% Change
Reconciliation from Operating Revenues to Total Revenues
Operating revenues	$	224,822		$	233,925		$	240,221		$	264,546		$	267,296		$	273,060		$	39,135		16.7	%	$	458,747		$	540,356		$	81,610			17.8	%

Operating revenues reconciling items:
Realized investment gains/losses		31,057			374			1,015			1,700			327			2,035		nm		nm				31,431			2,362		nm			nm
Ceded premiums - reinsurance recoveries		—			—			—			13,141			8,729			—		nm		nm				—			8,729		nm			nm
Ceded premiums - ceded to Citi reinsurers		296,328			—			—			—			—			—		nm		nm				296,328			—		nm			nm
Pro rata net investment income - assets transferred to Citi reinsurers		54,735			—			—			—			—			—		nm		nm				54,735			—		nm			nm
Total operating revenues reconciling items		382,121			374			1,015			14,841			9,056			2,035		nm		nm				382,495			11,091		nm			nm

Total revenues	$	606,942		$	234,299		$	241,236		$	279,387		$	276,352		$	275,095		$	40,796		17.4	%	$	841,241		$	551,447		$	(289,794	)		-34.4	%


Reconciliation from Operating Income Before Income Taxes to Income Before Income Taxes
Operating income before income taxes	$	58,689		$	61,421		$	63,940		$	68,842		$	75,209		$	69,672		$	8,251		13.4	%	$	120,109		$	144,881		$	24,771			20.6	%

Operating income before income taxes reconciling items:
Realized investment gains/losses		31,057			374			1,015			1,700			327			2,035		nm		nm				31,431			2,362		nm			nm
Ceded premiums - reinsurance recoveries		—			—			—			13,141			8,729			—		nm		nm				—			8,729		nm			nm
Initial & accelerated management / field grant expense		—			(25,457	)		(3,076	)		(3,161	)		(3,120	)		(3,546	)	nm		nm				(25,457	)		(6,665	)	nm			nm
Ceded premiums - ceded to Citi reinsurers		296,328			—			—			—			—			—		nm		nm				296,328			—		nm			nm
Pro rata net investment income - assets transferred to Citi reinsurers		54,735			—			—			—			—			—		nm		nm				54,735			—		nm			nm
Benefits and claims - ceded to Citi reinsurers		(128,204	)		—			—			—			—			—		nm		nm				(128,204	)		—		nm			nm
Amortization of DAC - ceded to Citi reinsurers		(71,389	)		—			—			—			—			—		nm		nm				(71,389	)		—		nm			nm
Insurance commissions - expense allowance received from Citi reinsurers		(1,669	)		—			—			—			—			—		nm		nm				(1,669	)		—		nm			nm
Insurance expenses - expense allowance received from Citi reinsurers		(26,083	)		—			—			—			—			—		nm		nm				(26,083	)		—		nm			nm
Interest expense - finance charge payable to Citi reinsurer		2,812			—			—			—			—			—		nm		nm				2,812			—		nm			nm
Interest expense - note payable		4,125			—			—			—			—			—		nm		nm				4,125			—		nm			nm
Total operating income before income taxes reconciling items		161,713			(25,083	)		(2,061	)		11,680			5,936			(1,511	)	nm		nm				136,630			4,425		nm			nm

Income before income taxes	$	220,402		$	36,338		$	61,879		$	80,522		$	81,145		$	68,161		$	31,823		87.6	%	$	256,740		$	149,306		$	(107,434	)		-41.8	%


Reconciliation from Net Operating Income to Net Income
Net operating income	$	38,154		$	37,199		$	40,914		$	45,217		$	48,629		$	44,999		$	7,799		21.0	%	$	75,353		$	93,628		$	18,274			24.3	%

Net operating income reconciling items:
Operating income before income taxes reconciling items		161,713			(25,083	)		(2,061	)		11,680			5,936			(1,511	)	nm		nm				136,630			4,425		nm			nm
Tax impact of operating income reconciling items at effective tax rate		(56,582	)		9,891			742			(4,008	)		(2,098	)		535		nm		nm				(46,690	)		(1,563	)	nm			nm
Total net operating income reconciling items		105,131			(15,191	)		(1,319	)		7,672			3,838			(976	)	nm		nm				89,940			2,862		nm			nm

Net income	$	143,286		$	22,008		$	39,595		$	52,889		$	52,467		$	44,023		$	22,015		100.0	%	$	165,294		$	96,490		$	(68,804	)		-41.6	%

7 of 16

Segment Operating Results	PRIMERICA, INC.
	Financial Supplement

																			YOY Q2												YOY YTD
(Dollars in thousands)	Q1 2010			Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011			$ Change			% Change			YTD 2010			YTD 2011			$ Change			% Change
Term Life Insurance
Revenues:
Direct premiums	$	517,932		$	527,792		$	525,644		$	529,341		$	532,167		$	540,283		$	12,491			2.4	%	$	1,045,724		$	1,072,451		$	26,727			2.6	%
Ceded premiums		(440,699	)		(444,008	)		(433,234	)		(427,571	)		(427,382	)		(431,890	)		12,118			2.7	%		(884,707	)		(859,272	)		25,435			2.9	%
Net premiums		77,233			83,784			92,410			101,770			104,786			108,393			24,609			29.4	%		161,017			213,179			52,162			32.4	%
Allocated net investment income		16,497			15,961			15,595			14,242			15,794			15,669			(292	)		-1.8	%		32,458			31,463			(995	)		-3.1	%
Other, net		8,782			8,643			7,929			7,914			7,653			7,580			(1,064	)		-12.3	%		17,425			15,233			(2,192	)		-12.6	%
Operating revenues		102,511			108,388			115,933			123,926			128,233			131,641			23,253			21.5	%		210,899			259,875			48,976			23.2	%
Benefits and expenses:
Benefits and claims		32,905			35,134			39,084			42,325			47,351			43,921			8,787			25.0	%		68,039			91,271			23,233			34.1	%
Amortization of DAC		17,418			19,128			21,900			26,477			22,146			22,995			3,867			20.2	%		36,547			45,141			8,594			23.5	%
Insurance commissions		456			404			330			320			327			268			(136	)		-33.7	%		860			594			(265	)		-30.8	%
Insurance expenses		8,687			6,824			9,194			13,095			6,618			15,804			8,980			131.6	%		15,511			22,422			6,911			44.6	%
Interest expense		2,812			2,803			2,843			2,851			2,872			2,873			70			2.5	%		5,615			5,745			129			2.3	%
Operating benefits and expenses		62,278			64,294			73,352			85,067			79,313			85,860			21,567			33.5	%		126,571			165,174			38,603			30.5	%
Operating income before income taxes	$	40,234		$	44,095		$	42,581		$	38,859		$	48,920		$	45,781		$	1,686			3.8	%	$	84,328		$	94,701		$	10,373			12.3	%

Investment & Savings Products
Revenues:
Commissions and fees:
Sales-based	$	36,363		$	36,301		$	32,941		$	37,001		$	43,128		$	44,904		$	8,603			23.7	%	$	72,664		$	88,032		$	15,368			21.1	%
Asset-based		38,014			39,445			37,602			52,412			44,825			45,348			5,904			15.0	%		77,459			90,174			12,715			16.4	%
Account-based		10,208			10,317			10,620			10,545			10,432			11,811			1,493			14.5	%		20,526			22,242			1,717			8.4	%
Other, net		2,108			2,155			2,711			3,064			2,461			2,522			367			17.0	%		4,263			4,984			720			16.9	%
Operating revenues		86,693			88,218			83,874			103,021			100,846			104,586			16,367			18.6	%		174,911			205,432			30,520			17.4	%
Benefits and expenses:
Amortization of DAC		2,549			3,029			1,361			2,392			2,785			3,751			722			23.8	%		5,578			6,535			958			17.2	%
Insurance commissions		1,809			1,989			1,964			2,091			2,140			2,344			355			17.9	%		3,798			4,484			687			18.1	%
Sales commissions:																						#DIV/0!												#DIV/0!
Sales-based		26,203			25,998			23,474			25,319			30,547			31,378			5,381			20.7	%		52,201			61,925			9,725			18.6	%
Asset-based		12,715			12,911			12,232			20,271			15,451			15,111			2,200			17.0	%		25,626			30,562			4,936			19.3	%
Other operating expenses		17,970			17,556			18,266			18,179			18,884			21,531			3,974			22.6	%		35,527			40,415			4,888			13.8	%
Operating benefits and expenses		61,246			61,483			57,296			68,253			69,807			74,115			12,632			20.5	%		122,729			143,922			21,193			17.3	%
Operating income before income taxes	$	25,447		$	26,735		$	26,578		$	34,769		$	31,039		$	30,470		$	3,735			14.0	%	$	52,182		$	61,509		$	9,327			17.9	%

Corporate & Other Distributed Products
Revenues:
Direct premiums	$	19,913		$	19,663		$	21,800		$	18,989		$	19,902		$	20,597		$	934			4.8	%	$	39,577		$	40,499		$	923			2.3	%
Ceded premiums		(3,748	)		(3,206	)		(3,820	)		(3,551	)		(3,585	)		(3,674	)		(468	)		-14.6	%		(6,954	)		(7,259	)		(305	)		-4.4	%
Net premiums		16,165			16,458			17,980			15,438			16,317			16,924			466			2.8	%		32,623			33,240			618			1.9	%
Allocated net investment income		11,344			12,030			12,260			12,446			12,831			11,560			(470	)		-3.9	%		23,374			24,392			1,018			4.4	%
Commissions and fees:
Loans		2,455			1,918			3,527			2,427			1,528			1,202			(716	)		-37.3	%		4,373			2,730			(1,644	)		-37.6	%
DebtWatchers		620			779			845			1,035			1,071			805			26		nm				1,399			1,876			477		nm
Prepaid Legal Services		2,340			2,305			2,287			2,689			2,619			2,345			39			1.7	%		4,645			4,964			319			6.9	%
Auto and Homeowners Insurance		1,012			1,372			1,200			1,395			1,687			1,507			135			9.8	%		2,384			3,194			810			34.0	%
Long-Term Care Insurance		679			788			715			784			825			775			(12	)		-1.6	%		1,466			1,601			134			9.2	%
Other, net		1,004			1,668			1,600			1,383			1,338			1,714			47			2.8	%		2,671			3,052			381			14.3	%
Operating revenues		35,618			37,318			40,414			37,598			38,216			36,832			(485	)		-1.3	%		72,935			75,048			2,113			2.9	%
Benefits and expenses:
Benefits and claims		9,626			9,991			10,727			9,708			10,284			13,352			3,361			33.6	%		19,617			23,636			4,019			20.5	%
Amortization of DAC		400			742			583			667			625			639			(104	)		-14.0	%		1,142			1,264			122			10.7	%
Insurance commissions		2,438			1,838			2,804			1,793			2,534			1,607			(231	)		-12.6	%		4,276			4,141			(136	)		-3.2	%
Insurance expenses		2,759			3,259			2,804			2,792			2,934			3,350			91			2.8	%		6,018			6,284			265			4.4	%
Sales commissions		4,963			4,603			6,560			4,676			4,358			3,674			(929	)		-20.2	%		9,566			8,032			(1,534	)		-16.0	%
Interest expense		4,125			4,125			4,125			4,125			4,125			4,125			—		nm				8,250			8,250			—		nm
Other operating expenses		18,298			22,170			18,030			18,622			18,107			16,667			(5,503	)		-24.8	%		40,467			34,773			(5,694	)		-14.1	%
Operating benefits and expenses		42,609			46,727			45,633			42,383			42,967			43,413			(3,314	)		-7.1	%		89,337			86,380			(2,957	)		-3.3	%
Operating income before income taxes	$	(6,992	)	$	(9,410	)	$	(5,219	)	$	(4,786	)	$	(4,751	)	$	(6,581	)	$	2,829			30.1	%	$	(16,402	)	$	(11,331	)	$	5,070			30.9	%

8 of 16

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

																			YOY Q2												YOY YTD
(Dollars in thousands)	Q1 2010			Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011			$ Change			% Change			YTD 2010			YTD 2011			$ Change			% Change
Term Life Insurance Operating Income Before Income Taxes
Revenues:
Direct premiums	$	517,932		$	527,792		$	525,644		$	529,341		$	532,167		$	540,283		$	12,491			2.4	%	$	1,045,724		$	1,072,451		$	26,727			2.6	%
Ceded premiums		(440,699	)		(444,008	)		(433,234	)		(427,571	)		(427,382	)		(431,890	)		12,118			2.7	%		(884,707	)		(859,272	)		25,435			2.9	%
Net premiums		77,233			83,784			92,410			101,770			104,786			108,393			24,609			29.4	%		161,017			213,179			52,162			32.4	%
Allocated net investment income		16,497			15,961			15,595			14,242			15,794			15,669			(292	)		-1.8	%		32,458			31,463			(995	)		-3.1	%
Other, net		8,782			8,643			7,929			7,914			7,653			7,580			(1,064	)		-12.3	%		17,425			15,233			(2,192	)		-12.6	%
Operating revenues		102,511			108,388			115,933			123,926			128,233			131,641			23,253			21.5	%		210,899			259,875			48,976			23.2	%
Benefits and expenses:
Benefits and claims		32,905			35,134			39,084			42,325			47,351			43,921			8,787			25.0	%		68,039			91,271			23,233			34.1	%
Amortization of DAC		17,418			19,128			21,900			26,477			22,146			22,995			3,867			20.2	%		36,547			45,141			8,594			23.5	%
Insurance commissions		456			404			330			320			327			268			(136	)		-33.7	%		860			594			(265	)		-30.8	%
Insurance expenses		8,687			6,824			9,194			13,095			6,618			15,804			8,980			131.6	%		15,511			22,422			6,911			44.6	%
Interest expense		2,812			2,803			2,843			2,851			2,872			2,873			70			2.5	%		5,615			5,745			129			2.3	%
Operating benefits and expenses		62,278			64,294			73,352			85,067			79,313			85,860			21,567			33.5	%		126,571			165,174			38,603			30.5	%
Operating income before income taxes	$	40,234		$	44,095		$	42,581		$	38,859		$	48,920		$	45,781		$	1,686			3.8	%	$	84,328		$	94,701		$	10,373			12.3	%

New Term Life Insurance Operating Income Before Income Taxes (1)
Revenues:
Direct premiums	$	10,138		$	21,256		$	30,149		$	38,197		$	46,771		$	56,581		$	35,325		nm			$	31,394		$	103,352		$	71,958		nm
Ceded premiums		(3,737	)		(3,869	)		(3,351	)		(4,029	)		(8,075	)		(9,320	)		(5,451	)		-140.9	%		(7,605	)		(17,395	)		(9,789	)		-128.7	%
Net premiums		6,401			17,388			26,799			34,168			38,697			47,261			29,873		nm				23,789			85,957			62,169		nm
Allocated net investment income		109			175			318			478			630			722			547		nm				284			1,352			1,068		nm
Other, net		8,802			8,675			8,100			7,890			7,614			7,605			(1,070	)		-12.3	%		17,477			15,219			(2,257	)		-12.9	%
Operating revenues		15,312			26,238			35,216			42,537			46,941			55,588			29,351			111.9	%		41,549			102,529			60,980			146.8	%
Benefits and expenses:
Benefits and claims		1,517			5,413			10,343			13,550			14,002			17,380			11,967		nm				6,931			31,382			24,451		nm
Amortization of DAC		968			6,405			7,725			11,667			10,163			10,527			4,122			64.4	%		7,373			20,691			13,317		nm
Insurance commissions		—			0			(1	)		(0	)		(0	)		(0	)		(0	)	nm				0			(0	)		(0	)	nm
Insurance expenses		18,180			16,050			18,224			19,128			15,761			24,550			8,500			53.0	%		34,230			40,310			6,080			17.8	%
Interest expense		—			(0	)		—			—			—			—			0			100.0	%		(0	)		—			0			100.0	%
Operating benefits and expenses		20,665			27,869			36,291			44,344			39,926			52,457			24,588			88.2	%		48,534			92,383			43,849			90.3	%
Operating income before income taxes	$	(5,354	)	$	(1,631	)	$	(1,075	)	$	(1,807	)	$	7,015		$	3,132		$	4,762		nm			$	(6,984	)	$	10,147		$	17,131		nm

Legacy Term Life Insurance Operating Income Before Income Taxes (2)
Revenues:
Direct premiums	$	507,794		$	506,536		$	495,494		$	491,144		$	485,396		$	483,702		$	(22,834	)		-4.5	%	$	1,014,329		$	969,098		$	(45,231	)		-4.5	%
Ceded premiums		(436,962	)		(440,140	)		(429,883	)		(423,542	)		(419,307	)		(422,570	)		17,569			4.0	%		(877,101	)		(841,877	)		35,225			4.0	%
Net premiums		70,832			66,396			65,611			67,602			66,089			61,132			(5,264	)		-7.9	%		137,228			127,222			(10,006	)		-7.3	%
Allocated net investment income		16,388			15,786			15,277			13,763			15,164			14,947			(839	)		-5.3	%		32,174			30,111			(2,063	)		-6.4	%
Other, net		(20	)		(32	)		(170	)		24			39			(26	)		6			18.7	%		(52	)		14			66			125.9	%
Operating revenues		87,199			82,150			80,718			81,389			81,293			76,053			(6,098	)		-7.4	%		169,350			157,346			(12,004	)		-7.1	%
Benefits and expenses:
Benefits and claims		31,388			29,721			28,741			28,775			33,349			26,541			(3,180	)		-10.7	%		61,108			59,890			(1,219	)		-2.0	%
Amortization of DAC		16,450			12,723			14,175			14,810			11,983			12,468			(255	)		-2.0	%		29,173			24,451			(4,723	)		-16.2	%
Insurance commissions		456			404			331			320			327			268			(136	)		-33.7	%		860			595			(265	)		-30.8	%
Insurance expenses		10,047			9,888			9,648			12,270			9,366			9,466			(422	)		-4.3	%		19,936			18,831			(1,104	)		-5.5	%
Insurance expense allowance		(19,541	)		(19,114	)		(18,678	)		(18,303	)		(18,508	)		(18,212	)		902			4.7	%		(38,655	)		(36,720	)		1,935			5.0	%
Interest expense		2,812			2,803			2,843			2,851			2,872			2,873			70			2.5	%		5,615			5,745			129			2.3	%
Operating benefits and expenses		41,612			36,425			37,061			40,723			39,387			33,403			(3,022	)		-8.3	%		78,037			72,791			(5,246	)		-6.7	%
Operating income before income taxes	$	45,587		$	45,726		$	43,657		$	40,666		$	41,905		$	42,649		$	(3,076	)		-6.7	%	$	91,313		$	84,555		$	(6,758	)		-7.4	%


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

9 of 16

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

																			YOY Q2												YOY YTD
(Dollars in thousands, except as noted)		Q1 2010			Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011		$ Change			% Change			YTD 2010			YTD 2011			$ Change			% Change
Key Statistics

Life-insurance licensed sales force, beginning of period		99,785			97,354			96,066			96,872			94,850			92,212			(5,142	)		-5.3	%		99,785			94,850			(4,935	)		-4.9	%
New life-licensed representatives		7,366			9,887			9,430			7,805			7,145			8,061			(1,826	)		-18.5	%		17,253			15,206			(2,047	)		-11.9	%
Non-renewal and terminated representatives		(9,797	)		(11,175	)		(8,624	)		(9,827	)		(9,783	)		(9,754	)		1,421			12.7	%		(20,972	)		(19,537	)		1,435			6.8	%
Life-insurance licensed sales force, end of period		97,354			96,066			96,872			94,850			92,212			90,519			(5,547	)		-5.8	%		96,066			90,519			(5,547	)		-5.8	%

Estimated annualized issued term life premium ($mills) (1):
Premium from new policies	$	43.4		$	48.9		$	44.1		$	44.5		$	41.1		$	47.5		$	(1.4	)		-2.9	%	$	92.2		$	88.6		$	(3.6	)		-3.9	%
Additions and increases in premium		10.8			11.7			10.9			11.2			10.4			11.4			(0.3	)		-2.2	%		22.5			21.8			(0.7	)		-3.0	%
Total estimated annualized issued term life premium	$	54.2		$	60.6		$	55.0		$	55.6		$	51.5		$	58.9		$	(1.7	)		-2.7	%	$	114.7		$	110.4		$	(4.3	)		-3.7	%

Issued term life policies		52,445			60,406			54,373			56,290			51,281			59,826			(580	)	nm				112,851			111,107			(1,744	)		-1.5	%
Estimated average annualized issued term life premium per policy (1)(2)	$	827		$	809		$	811		$	790		$	802		$	794		$	(15	)		-1.9	%	$	817		$	797		$	(20	)		-2.4	%

Term life face amount in-force, beginning of period ($mills)	$	650,195		$	651,790		$	653,530		$	654,633		$	656,791		$	658,523		$	6,734			1.0	%	$	650,195		$	656,791		$	6,596			1.0	%
Issued term life face amount (3)		17,997			20,042			18,113			18,250			16,735			18,974			(1,068	)		-5.3	%		38,038			35,709			(2,330	)		-6.1	%
Terminated term life face amount		(18,867	)		(16,156	)		(17,836	)		(18,105	)		(17,247	)		(14,724	)		1,432			8.9	%		(35,023	)		(31,971	)		3,052			8.7	%
Foreign currency impact, net		2,464			(2,146	)		826			2,013			2,244			843			2,989		nm				318			3,087			2,769		nm
Term life face amount in-force, end of period	$	651,790		$	653,530		$	654,633		$	656,791		$	658,523		$	663,617		$	10,087			1.5	%	$	653,530		$	663,617		$	10,087			1.5	%


New Term Life Insurance - Financial Analysis

Direct premium	$	10,138		$	21,256		$	30,149		$	38,197		$	46,771		$	56,581			35,325		nm			$	31,394		$	103,352		$	71,958		nm

New term life operating income before income taxes	$	(5,354	)	$	(1,631	)	$	(1,075	)	$	(1,807	)	$	7,015		$	3,132			4,762		nm			$	(6,984	)	$	10,147		$	17,131		nm
% of direct premium		-52.8	%		-7.7	%		-3.6	%		-4.7	%		15.0	%		5.5	%	nm			nm				-22.2	%		9.8	%	nm			nm

Benefits & expenses, net (4)	$	6,222		$	15,687		$	21,418		$	29,245		$	32,240		$	37,227			21,540			137.3	%	$	21,909		$	69,467		$	47,558		nm
% of direct premium		61.4	%		73.8	%		71.0	%		76.6	%		68.9	%		65.8	%	nm			nm				69.8	%		67.2	%	nm			nm

Insurance expenses, net (5)	$	9,378		$	7,375		$	10,124		$	11,237		$	8,147		$	16,944			9,569			129.8	%	$	16,753		$	25,091		$	8,338			49.8	%
% of direct premium		92.5	%		34.7	%		33.6	%		29.4	%		17.4	%		29.9	%	nm			nm				53.4	%		24.3	%	nm			nm


Legacy Term Life Insurance - Financial Analysis

Direct premium	$	507,794		$	506,536		$	495,494		$	491,144		$	485,396		$	483,702			(22,834	)		-4.5	%	$	1,014,329		$	969,098		$	(45,231	)		-4.5	%

Legacy term life operating income before income taxes	$	45,587		$	45,726		$	43,657		$	40,666		$	41,905		$	42,649			(3,076	)		-6.7	%	$	91,313		$	84,555		$	(6,758	)		-7.4	%
% of direct premium		9.0	%		9.0	%		8.8	%		8.3	%		8.6	%		8.8	%	nm			nm				9.0	%		8.7	%	nm			nm


(1	)	Estimated annualized issued term life premium - estimated as average premium per $1,000 of face amounts issued on new policies and additions (before free look returns) multiplied by actual face amount issued on new policies, rider additions and face amount increases.
(2	)	In whole dollars
(3	)	Issued term life face amount - includes face amount on issued term life policies, additional riders added to existing policies, and face increases under increasing benefit riders
(4	)	Benefits & expenses, net - includes total benefits & claims, ceded premiums, insurance commissions, and amortization of deferred policy acquisition costs
(5	)	Insurance expenses, net - insurance expenses, net of other net revenues

10 of 16

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

(Dollars in thousands, except as noted)																			YOY Q2												YOY YTD
Investment & Savings Products Operating Income Before Income Taxes		Q1 2010			Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011		$ Change			% Change			YTD 2010			YTD 2011			$ Change			% Change
Revenues:
Commissions and fees:
Sales-based	$	36,363		$	36,301		$	32,941		$	37,001		$	43,128		$	44,904		$	8,603			23.7	%	$	72,664		$	88,032		$	15,368			21.1	%
Asset-based		38,014			39,445			37,602			52,412			44,825			45,348			5,904			15.0	%		77,459			90,174			12,715			16.4	%
Account-based		10,208			10,317			10,620			10,545			10,432			11,811			1,493			14.5	%		20,526			22,242			1,717			8.4	%
Other, net		2,108			2,155			2,711			3,064			2,461			2,522			367			17.0	%		4,263			4,984			720			16.9	%
Operating revenues		86,693			88,218			83,874			103,021			100,846			104,586			16,367			18.6	%		174,911			205,432			30,520			17.4	%
Benefits and expenses:
Amortization of DAC		2,549			3,029			1,361			2,392			2,785			3,751			722			23.8	%		5,578			6,535			958			17.2	%
Insurance commissions		1,809			1,989			1,964			2,091			2,140			2,344			355			17.9	%		3,798			4,484			687			18.1	%
Sales commissions:
Sales-based		26,203			25,998			23,474			25,319			30,547			31,378			5,381			20.7	%		52,201			61,925			9,725			18.6	%
Asset-based		12,715			12,911			12,232			20,271			15,451			15,111			2,200			17.0	%		25,626			30,562			4,936			19.3	%
Other operating expenses		17,970			17,556			18,266			18,179			18,884			21,531			3,974			22.6	%		35,527			40,415			4,888			13.8	%
Operating benefits and expenses		61,246			61,483			57,296			68,253			69,807			74,115			12,632			20.5	%		122,729			143,922			21,193			17.3	%
Operating income before income taxes	$	25,447		$	26,735		$	26,578		$	34,769		$	31,039		$	30,470		$	3,735			14.0	%	$	52,182		$	61,509		$	9,327			17.9	%


Key Statistics
Product sales ($mills)
Retail Mutual Funds	$	594.7		$	551.0		$	474.8		$	520.3		$	646.0		$	603.1		$	52.1			9.5	%	$	1,145.7		$	1,249.1		$	103.4			9.0	%
Variable Annuities and other		267.3			308.3			287.5			306.1			344.6			458.0			149.7			48.6	%		575.7			802.6			227.0			39.4	%
Total sales-based revenue generating product sales		862.1			859.3			762.3			826.4			990.6			1,061.1			201.8			23.5	%		1,721.4			2,051.7			330.3			19.2	%
Managed Mutual Funds		—			—			—			—			—			0.2			0.2		nm				—			0.2			0.2		nm
Segregated Funds		111.4			64.0			61.6			76.6			123.1			74.2			10.2			15.9	%		175.4			197.2			21.8			12.4	%
Total product sales	$	973.5		$	923.3		$	823.9		$	903.0		$	1,113.7		$	1,135.5		$	212.2			23.0	%	$	1,896.8		$	2,249.2		$	352.3			18.6	%

Client asset values, beginning of period ($mills)	$	31,303		$	32,670		$	29,723		$	32,600		$	34,869		$	36,187		$	3,517			10.8	%	$	31,303		$	34,869		$	3,566			11.4	%
Inflows		974			923			824			903			1,114			1,136			212			23.0	%		1,897			2,249			352			18.6	%
Outflows (1)		(956	)		(903	)		(887	)		(945	)		(1,083	)		(1,118	)		(215	)		-23.8	%		(1,859	)		(2,201	)		(342	)		-18.4	%
Net flows		17			20			(63	)		(42	)		31			18			(3	)	nm				37			48			11		nm
Change in market value, net and other (2)		1,350			(2,967	)		2,940			2,311			1,288			(185	)		2,782		nm				(1,618	)		1,102			2,720		nm
Client asset values, end of period	$	32,670		$	29,723		$	32,600		$	34,869		$	36,187		$	36,020		$	6,297			21.2	%	$	29,723		$	36,020		$	6,297			21.2	%

Average client asset values ($mills)
Mutual Funds	$	22,453		$	22,424		$	21,919		$	23,661		$	24,882		$	25,330		$	2,906			13.0	%	$	22,439		$	25,106		$	2,668			11.9	%
Variable Annuities and other		6,847			6,955			6,954			7,623			8,242			8,588			1,633			23.5	%		6,901			8,415			1,514			21.9	%
Segregated Funds		2,105			2,182			2,184			2,327			2,477			2,545			363			16.7	%		2,144			2,511			368			17.2	%
Total	$	31,404		$	31,561		$	31,056		$	33,611		$	35,602		$	36,463		$	4,902			15.5	%	$	31,483		$	36,033		$	4,550			14.5	%

Average number of fee-generating accounts (thous) (3)		2,762			2,741			2,715			2,694			2,662			2,611			(131	)		-4.8	%		2,752			2,637			(115	)		-4.2	%


Financial Analysis

Sales-based net revenue as % of sales (4)		1.18	%		1.20	%		1.24	%		1.41	%		1.27	%		1.27	%	nm			nm				1.19	%		1.27	%	nm			nm

Asset-based net revenue as % of average asset values (5)		0.07	%		0.07	%		0.07	%		0.08	%		0.07	%		0.07	%	nm			nm				0.13	%		0.13	%	nm			nm

Account-based revenue per average fee generating account (6)	$	3.70		$	3.76		$	3.91		$	3.91		$	3.92		$	4.52		nm			nm				7.46			8.44		nm			nm


(1	)	Asset value outflows - include (a) redemptions of assets, (b) sales charges on the inflow sales figures, and (c) the net flow of money market funds sold and redeemed on the company's recordkeeping platform. The redemptions of assets must be estimated for approximately 9% of account values as these figures are not readily available. Actual redemptions as a percentage of account values for similar known account values are used to estimate the unknown redemption values.
(2	)	Change in market value, net - market value fluctuations net of fees, expenses, and foreign currency impact
(3	)	Fee generating accounts - mutual fund accounts for which we receive recording keeping and/or custodial fees
(4	)	Sales-based net revenue - commission and fee revenue less commissions paid to the sales force based on product sales activity
(5	)	Asset-based net revenue - commission and fee revenue less commissions paid to the sales force earned based on product account values including amortization of deferred acquisition costs for segregated funds
(6	)	In whole dollars

11 of 16

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

	As of or for the period ended June 30, 2011
											% 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		$	114,051			$	114,051	$	—			5.0	%		5.4	%

Fixed Income:
Treasury			33,406				29,358		4,048			1.5	%		1.4	%		3.37	%	AAA
Government			108,697				94,975		13,721			4.8	%		4.5	%		4.75	%	AA-
Tax-Exempt Municipal			7,104				6,674		430			0.3	%		0.3	%		3.80	%	AA
Corporate			1,330,592				1,220,284		110,308			58.6	%		58.1	%		5.64	%	BBB+
Mortgage-Backed			316,725				293,420		23,305			13.9	%		14.0	%		5.44	%	AA+
Asset-Backed			64,797				65,984		(1,187	)		2.9	%		3.1	%		1.66	%	AA-
CMBS			152,736				145,449		7,287			6.7	%		6.9	%		5.00	%	AAA
Private			109,913				103,515		6,398			4.8	%		4.9	%		6.09	%	BBB
Redeemable Preferred			539				691		(152	)		0.0	%		0.0	%		45.19	%		A
Convertible			10,605				9,839		765			0.5	%		0.5	%		4.59	%	BBB
Total Fixed Income			2,135,113				1,970,189		164,924			94.0	%		93.8	%		5.38	%		A
	OK				OK
Equities:
Perpetual Preferred			211				85		126			0.0	%		0.0	%
Common Stock			11,228				8,567		2,662			0.5	%		0.4	%
Mutual Fund			7,435				4,042		3,393			0.3	%		0.2	%
Other			3,911				3,911		—			0.2	%		0.2	%
Total Equities			22,786				16,605		6,181			1.0	%		0.8	%
	OK				OK
Total Invested Assets		$	2,271,950			$	2,100,845	$	171,105			100.0	%		100.0	%
					OK
Corporate Portfolio by Sector

Banking		$	140,441			$	133,106	$	7,335			10.6	%		10.9	%
Basic Industry			100,574				91,390		9,184			7.6	%		7.5	%
Brokerage			20,381				18,363		2,017			1.5	%		1.5	%
Capital Goods			82,685				75,716		6,970			6.2	%		6.2	%
Communications			97,154				88,316		8,837			7.3	%		7.2	%
Consumer Cyclical			60,856				55,314		5,541			4.6	%		4.5	%
Consumer Non-Cyclical			153,518				138,691		14,827			11.5	%		11.4	%
Electric			131,050				118,200		12,850			9.8	%		9.7	%
Energy			78,274				70,667		7,608			5.9	%		5.8	%
Finance Companies			35,300				30,948		4,353			2.7	%		2.5	%
Financial Other			12,076				11,444		632			0.9	%		0.9	%
Industrial Other			23,398				21,901		1,497			1.8	%		1.8	%
Insurance			116,412				108,803		7,608			8.7	%		8.9	%
Natural Gas			80,156				72,624		7,531			6.0	%		6.0	%
REITs			107,418				100,845		6,573			8.1	%		8.3	%
Technology			61,048				56,682		4,366			4.6	%		4.6	%
Transportation			24,492				22,281		2,211			1.8	%		1.8	%
Utility Other			5,361				4,994		367			0.4	%		0.4	%
Total Corporate portfolio		$	1,330,592			$	1,220,284	$	110,308			100.0	%		100.0	%
	OK				OK
Fixed-Maturity Securities - Effective Maturity
Fixed-Maturity Securities - Effective Maturity

Effective maturity
< 1 Yr.		$	238,475			$	233,552	$	4,924			11.2	%		11.9	%
1-2 Yrs.			219,108				206,994		12,114			10.3	%		10.5	%
2-5 Yrs.			905,055				832,827		72,228			42.4	%		42.3	%
5-10 Yrs.			710,358				642,074		68,284			33.3	%		32.6	%
> 10 Yrs.			62,117				54,743		7,374			2.9	%		2.8	%
Total Fixed Income		$	2,135,113			$	1,970,189	$	164,924			100.0	%		100.0	%
	OK				OK
Duration

Fixed Income portfolio duration			3.7	years

12 of 16

Investment Portfolio - Quality Ratings As of June 30, 2011	PRIMERICA, INC.
	Financial Supplement

(Dollars in thousands)
Investment Portfolio Quality Ratings (1)
		Amortized Cost		% of Total
Total Fixed Income portfolio:
Rating
AAA		$	499,282		25.3	%
AA			193,817		9.8	%
A			445,900		22.6	%
BBB			706,325		35.9	%
Below Investment Grade			123,564		6.3	%
NA			1,301		0.1	%	OK
	Total Fixed Income	$	1,970,189		100.0	%

				Amortized Cost		% of Total							Amortized Cost		% of Total
Corporate asset class:										Private asset class:
	Rating										Rating
	AAA			$	350		0.0	%			AAA		$	268		0.3	%
	AA				124,724		10.2	%			AA			6,535		6.3	%
	A				399,204		32.7	%			A			14,750		14.2	%
	BBB				614,062		50.3	%			BBB			66,980		64.7	%
	Below Investment Grade				81,411		6.7	%			Below Investment Grade			14,983		14.5	%
	NA				532		0.0	%	OK		NA			—		—		OK
			Total Corporate	$	1,220,284		100.0	%				Total Private	$	103,515		100.0	%



CMBS asset class:										Mortgage-Backed asset class:
	Rating										Rating
	AAA			$	123,370		84.8	%			AAA		$	264,162		90.0	%
	AA				18,508		12.7	%			AA			3,614		1.2	%
	A				1,201		0.8	%			A			3,129		1.1	%
	BBB				1,288		0.9	%			BBB			6,843		2.3	%
	Below Investment Grade				979		0.7	%			Below Investment Grade			15,673		5.3	%
	NA				104		0.1	%	OK		NA			—		—		OK
			Total CMBS	$	145,449		100.0	%				Total Mortgage-Backed	$	293,420		100.0	%



Asset-Backed asset class:										Treasury & Government asset classes:
	Rating										Rating
	AAA			$	53,506		81.1	%			AAA		$	57,317		46.1	%
	AA				—		—				AA			34,627		27.9	%
	A				1,449		2.2	%			A			22,635		18.2	%
	BBB				2,000		3.0	%			BBB			9,238		7.4	%
	Below Investment Grade				9,029		13.7	%			Below Investment Grade			—		—
	NA				—		—		OK		NA			516		0.4	%	OK
			Total Asset-Backed	$	65,984		100.0	%				Total Treasury & Government	$	124,333		100.0	%



NAIC Designations

		1		$	1,029,766		57.3	%
		2			665,714		37.1	%
		3			73,381		4.1	%
		4			19,244		1.1	%
		5			5,769		0.3	%
		6			2,336		0.1	%
			U.S. Insurer Fixed Income (2)		1,796,210		100.0	%
	Other (3)				190,584
	Cash and cash equivalents				114,051
			Total Invested Assets	$	2,100,845	OK

(1	)	Ratings method for split ratings: If by 2 NRSROs, use lower of the two; if by 3 or more NRSROs, use second lowest
(2	)	NAIC ratings for our U.S. insurance companies' fixed income portfolios
(3	)	Other consists of assets held by our non-life companies, Canadian insurance company, and unrated equities

13 of 16

Investment Portfolio - Mortgage Backed Vintage Analysis As of June 30, 2011	PRIMERICA, INC.
	Financial Supplement

(Dollars in thousands)		2004 and Prior		2005		2006		2007		2008		2009		2010		2011		Total
Commercial Mortgage-Backed Securities		Amortized Cost by Vintage
Current Rating:
AAA		$	61,980	$	22,906	$	6,139	$	7,784	$	1,165	$	5,927	$	4,592	$	12,878	$	123,370
AA			8,249		10,259		—		—		—		—		—		—		18,508
A			1,001		—		200		—		—		—		—		—		1,201
BBB			1,288		—		—		—		—		—		—		—		1,288
BB			255		—		—		—		—		—		—		—		255
B			288		—		—		—		—		—		—		—		288
CCC and lower			315		224		—		—		—		—		—		—		539
	Total	$	73,376	$	33,389	$	6,339	$	7,784	$	1,165	$	5,927	$	4,592	$	12,878	$	145,449

			Net Unrealized Gain/(Loss) by Vintage
Current Rating:
	AAA		$	2,516		$	1,051	$	669	$	660	$	38	$	242	$	(10	)	$	22	$	5,188
	AA			478			26		—		—		—		—		—			—		504
	A			13			—		12		—		—		—		—			—		25
	BBB			(106	)		—		—		—		—		—		—			—		(106	)
	BB			900			—		—		—		—		—		—			—		900
	B			529			—		—		—		—		—		—			—		529
	CCC and lower			248			—		—		—		—		—		—			—		248
		Total	$	4,577		$	1,077	$	681	$	660	$	38	$	242	$	(10	)	$	22	$	7,287

																											OK
Prime Residential Mortgage-Backed Securities			Amortized Cost by Vintage
Current Rating:
	AAA		$	125,443		$	24,438		$	24,801		$	40,983		$	26,899		$	240		$	5,750		$	14,240		$	262,794
	AA			3,614			—			—			—			—			—			—			—			3,614
	A			1,514			1,615			—			—			—			—			—			—			3,129
	BBB			—			6,843			—			—			—			—			—			—			6,843
	BB			715			3,781			—			—			—			—			—			—			4,496
	B			—			1,666			—			—			—			—			—			—			1,666
	CCC and lower			—			1,243			—			1,639			—			—			—			—			2,882
		Total	$	131,286		$	39,585		$	24,801		$	42,622		$	26,899		$	240		$	5,750		$	14,240		$	285,423
				46	%		14	%		9	%		15	%		9	%		0	%		2	%		5	%
			Net Unrealized Gain/(Loss) by Vintage
Current Rating:
	AAA		$	12,509		$	1,182		$	2,523		$	3,914		$	2,901		$	25		$	95		$	358		$	23,507
	AA			134			—			—			—			—			—			—			—			134
	A			28			12			—			—			—			—			—			—			40
	BBB			—			(300	)		—			—			—			—			—			—			(300	)
	BB			22			(111	)		—			—			—			—			—			—			(89	)
	B			—			(24	)		—			—			—			—			—			—			(24	)
	CCC and lower			—			(24	)		—			28			—			—			—			—			5
		Total	$	12,693		$	735		$	2,523		$	3,942		$	2,901		$	25		$	95		$	358		$	23,273


Alt-A Residential Mortgage-Backed Securities		Amortized Cost by Vintage
Current Rating:
AAA		$	—		$	1,369		$	—		$	—		$	—		$	—		$	—		$	—		$	1,369
AA			—			—			—			—			—			—			—			—			—
A			—			—			—			—			—			—			—			—			—
BBB			—			—			—			—			—			—			—			—			—
BB			617			—			—			—			—			—			—			—			617
B			—			3,200			—			—			—			—			—			—			3,200
CCC and lower			2,544			268			—			—			—			—			—			—			2,812
	Total	$	3,161		$	4,836		$	—		$	—		$	—		$	—		$	—		$	—		$	7,997
			40	%		60	%		0	%		0	%		0	%		0	%		0	%		0	%

			Net Unrealized Gain/(Loss) by Vintage
Current Rating:
AAA			$	—		$	32		$	—	$	—	$	—	$	—	$	—	$	—	$	32
AA				—			—			—		—		—		—		—		—		—
	A			—			—			—		—		—		—		—		—		—
BBB				—			—			—		—		—		—		—		—		—
BB				25			—			—		—		—		—		—		—		25
	B			—			(9	)		—		—		—		—		—		—		(9	)
CCC and lower				(5	)		(11	)		—		—		—		—		—		—		(16	)
		Total	$	20		$	13		$	—	$	—	$	—	$	—	$	—	$	—	$	32

14 of 16

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

																						YOY Q2
(Dollars in thousands)					Q1 2010			Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011		$ Change			% Change
Net Investment Income by Source
	Bonds & notes			$	83,814		$	27,796		$	28,350		$	28,091		$	29,014		$	27,462		$	(334	)		-1.2	%
	Preferred and common stocks				1,239			164			189			231			188			165			1		nm
	Deposit asset underlying 10% reinsurance treaty				—			1,551			624			(704	)		508			650			(901	)		-58.1	%
	Policy loans				336			341			326			362			347			306			(35	)		-10.2	%
	Cash & cash equivalents				283			85			103			73			70			65			(20	)		-23.5	%
	Other				—			55			—			—			(19	)		13			(42	)		-75.8	%
			Total investment income		85,671			29,992			29,591			28,053			30,108			28,662			(1,331	)		-4.4	%
	Investment expenses				3,095			2,001			1,737			1,365			1,482			1,433			(568	)		-28.4	%
			Net investment income	$	82,576		$	27,991		$	27,855		$	26,688		$	28,626		$	27,229		$	(763	)		-2.7	%
			Fixed income book yield, end of period		5.79	%		5.72	%		5.47	%		5.48	%		5.30	%		5.38	%	na			-34 bps
			New money yield		3.48	%		2.43	%		2.50	%		3.58	%		2.72	%		4.45	%	na			202 bps

																						YOY Q2
					Q1 2010			Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011		% Pt Change
Fixed Income Portfolio Quality Ratings
	Rating
	AAA				32.5	%		31.4	%		28.0	%		26.7	%		26.1	%		25.3	%		-7.2	%
	AA				7.9	%		6.9	%		8.0	%		9.1	%		9.5	%		9.8	%		1.9	%
	A				21.2	%		21.4	%		22.2	%		21.9	%		22.4	%		22.6	%		1.4	%
	BBB				30.8	%		32.4	%		34.8	%		35.6	%		35.8	%		35.9	%		5.0	%
	Below Investment Grade				7.1	%		7.8	%		6.9	%		6.7	%		6.2	%		6.3	%		-0.8	%
	NA				0.4	%		0.1	%		0.1	%		0.1	%		0.0	%		0.1	%		-0.3	%
			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, 2011																								As of June 30, 2011
				Market Value			Amortized Cost			Credit Rating																		Market Value		Amortized Cost
Top 25 Exposures																						Foreign Exposure (1)

		1	Government of Canada	$	38,266		$	33,282		AAA												Canada						$	63,354	$	59,106
		2	National Rural Utilities Cooperative		17,929			14,900			A+											United Kingdom							71,292		67,104
		3	General Electric Co		15,448			13,549		AA+												Australia							46,974		43,237
		4	Bank of America Corp		13,872			12,713			A											France							28,711		27,327
		5	Verizon Communications Inc		13,230			11,488			A-											Spain							22,114		22,053
		6	ProLogis Inc		12,634			11,741		BBB-												Japan							5,594		5,367
		7	Enel SpA		10,767			10,542			A-											Italy							13,849		13,540
		8	Edison International		10,725			10,547			B+											Emerging Markets (2)							42,687		39,036
		9	ConocoPhillips		10,485			9,058			A											All Other							100,488		92,052
		10	Banco Santander SA		9,994			9,930		AA															Total			$	395,062	$	368,823	OK
		11	MetLife Inc		9,975			9,468			A+
		12	AT&T Inc		9,944			8,789			A-											Government Investments
		13	Reynolds American Inc		9,623			7,924		BBB
		14	Xstrata PLC		9,580			9,290		BBB+												AAA						$	—	$	—
		15	Iberdrola SA		9,380			8,468		BBB+												AA							2,898		2,572
		16	Province of Quebec Canada		9,372			7,667			A+												A						13,048		12,282
		17	Diageo PLC		9,289			8,640			A-											BBB							10,301		9,238
		18	Health Care REIT Inc		9,105			9,132		BBB-												Below Investment Grade							—		—
		19	Altria Group Inc		8,953			7,395		BBB												NA							—		—
		20	Province of Ontario Canada		8,590			6,750		AA-															Total			$	26,247	$	24,092
		21	Vale SA		7,903			7,100		BBB+
		22	ArcelorMittal		7,785			6,581		BBB-												Non-Government Investments
		23	Montpelier Re Holdings Ltd		7,628			7,207		BBB
		24	Roche Holding AG		7,608			6,555		AA-												AAA						$	—	$	—
		25	Ventas Inc		7,589			7,360		BBB												AA							58,517		55,939
			Total	$	285,676		$	256,077															A						141,502		133,678
																						BBB							151,058		139,315
			% of total fixed income portfolio		13.2	%		12.7	%													Below Investment Grade							15,155		14,799
																						NA							2,583		1,000
																									Total			$	368,815	$	344,730	OK


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

15 of 16

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

(Dollars in millions)	2006			2007			2008			2009			2010				Q1 2010			Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011


Recruits		204,316			220,950			235,125			221,920			231,390			58,085			65,245			58,178			49,882			52,813			65,138


Life-insurance licensed sales force, beginning of period		97,105			96,532			97,125			100,651			99,785			99,785			97,354			96,066			96,872			94,850			92,212
New life-licensed representatives		35,233			36,308			39,383			37,629			34,488			7,366			9,887			9,430			7,805			7,145			8,061
Non-renewal and terminated representatives		(35,806	)		(35,715	)		(35,857	)		(38,495	)		(39,423	)		(9,797	)		(11,175	)		(8,624	)		(9,827	)		(9,783	)		(9,754	)
Life-insurance licensed sales force, end of period		96,532			97,125			100,651			99,785			94,850			97,354			96,066			96,872			94,850			92,212			90,519


Issued term life policies		245,520			244,733			241,173			233,837			223,514			52,445			60,406			54,373			56,290			51,281			59,826


Issued term life face amount	$	84,503		$	87,619		$	87,279		$	80,497		$	74,401		$	17,997		$	20,042		$	18,113		$	18,250		$	16,735		$	18,974


Term life face amount in force, beginning of period	$	572,155		$	599,470		$	632,086		$	633,467		$	650,195		$	650,195		$	651,790		$	653,530		$	654,633		$	656,791		$	658,523
Issued term life face amount		84,503			87,619			87,279			80,497			74,401			17,997			20,042			18,113			18,250			16,735			18,974
Terminated term life face amount		(57,277	)		(64,966	)		(72,008	)		(74,642	)		(70,964	)		(18,867	)		(16,156	)		(17,836	)		(18,105	)		(17,247	)		(14,724	)
Foreign currency impact, net		90			9,963			(13,891	)		10,873			3,158			2,464			(2,146	)		826			2,013			2,244			843
Term life face amount in force, end of period	$	599,470		$	632,086		$	633,467		$	650,195		$	656,791		$	651,790		$	653,530		$	654,633		$	656,791		$	658,523		$	663,617


Estimated annualized issued term life premium
Premium from new policies	$	204.7		$	208.9		$	205.0		$	193.7		$	180.8		$	43.4		$	48.9		$	44.1		$	44.5		$	41.1		$	47.5
Additions and increases in premium		41.1			43.4			43.0			42.6			44.6			10.8			11.7			10.9			11.2			10.4			11.4
Total estimated annualized issued term life premium	$	245.8		$	252.4		$	248.0		$	236.3		$	225.4		$	54.2		$	60.6		$	55.0		$	55.6		$	51.5		$	58.9


Investment & Savings product sales	$	4,664.7		$	5,189.5		$	4,458.4		$	3,006.6		$	3,623.6		$	973.5		$	923.3		$	823.9		$	903.0		$	1,113.7		$	1,135.5

Investment & Savings average client asset values	$	32,082		$	36,735		$	32,763		$	26,845		$	31,908		$	31,404		$	31,561		$	31,056		$	33,611		$	35,602		$	36,463

16 of 16