a50047283ex99-3.htm

THIRD QUARTER 2011

This document is a financial supplement to our third 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.

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		(2)			(3)
(Dollars in thousands)	Mar 31, 2010			Jun 30, 2010			Sep 30, 2010			Dec 31, 2010			Mar 31, 2011			Jun 30, 2011			Sep 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		$	2,319,873
Due from reinsurers		3,595,239			3,639,298			3,694,015			3,731,634			3,770,966			3,795,348			3,819,738
Deferred policy acquisition costs		702,429			745,322			798,335			853,211			908,600			966,094			1,004,545
Income taxes		56,114			—			—			—			—			—			—
Other assets		523,584			554,950			610,518			573,055			582,080			567,482			586,646
Separate account assets		2,222,267			2,098,936			2,301,896			2,446,786			2,582,881			2,544,429			2,276,705
Total assets	$	10,083,413		$	9,314,070		$	9,688,891		$	9,884,307		$	10,174,625		$	10,170,366		$	10,007,507

Liabilities:
Future policy benefits	$	4,248,277		$	4,286,258		$	4,349,375		$	4,409,183		$	4,470,185		$	4,532,615		$	4,557,535
Other policy liabilities		630,294			608,307			609,047			592,711			604,487			588,202			589,826
Income taxes		—			129,776			127,732			136,226			142,780			130,283			136,028
Other liabilities		1,106,834			412,141			395,762			386,182			397,561			364,533			390,297
Note payable		—			300,000			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			185,483
Separate account liabilities		2,222,267			2,098,936			2,301,896			2,446,786			2,582,881			2,544,429			2,276,705
Total liabilities		8,336,714			7,996,474			8,292,577			8,452,814			8,683,983			8,623,404			8,435,874
Stockholders’ equity:
Common stock ($0.01 par value) (1)		—			727			727			728			732			736			737
Paid-in capital		1,312,072			870,706			882,676			883,169			889,654			894,018			898,945
Retained earnings		300,531			304,075			342,920			395,057			446,767			488,521			526,847
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			99,257
Net unrealized investment losses other-than-temporarily impaired		(4,245	)		(3,703	)		(2,883	)		(2,275	)		(2,275	)		(2,275	)		(2,363	)
Cumulative translation adjustment		53,076			48,286			51,925			56,492			59,221			60,315			48,210
Total stockholders’ equity		1,746,699			1,317,596			1,396,314			1,431,493			1,490,642			1,546,962			1,571,633
Total liabilities and stockholders' equity	$	10,083,413		$	9,314,070		$	9,688,891		$	9,884,307		$	10,174,625		$	10,170,366		$	10,007,507

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		$	1,474,739
Reconciling items:
Net unrealized investment gains (losses) not other-than-temporarily impaired		85,265			97,505			120,949			98,322			96,543			105,647			99,257
Net unrealized investment losses other-than-temporarily impaired		(4,245	)		(3,703	)		(2,883	)		(2,275	)		(2,275	)		(2,275	)		(2,363	)
Total reconciling items		81,020			93,802			118,066			96,047			94,268			103,372			96,894
Total stockholders’ equity	$	1,746,699		$	1,317,596		$	1,396,314		$	1,431,493		$	1,490,642		$	1,546,962		$	1,571,633

Deferred Policy Acquisition Costs Rollforward
Balance, beginning of period	$	2,789,905		$	702,429		$	745,322		$	798,335		$	853,211		$	908,600		$	966,094
General expenses deferred		16,095			15,061			14,876			14,481			14,123			16,946			15,340
Commission costs deferred		77,208			56,831			57,232			65,285			60,296			66,661			66,302
Amortization of deferred policy acquisition costs		(91,756	)		(22,899	)		(23,844	)		(29,536	)		(25,556	)		(27,385	)		(30,532	)
Transferred to reinsurers		(2,099,941	)		—			—			—			—			—			—
Foreign currency impact and other, net		10,918			(6,100	)		4,750			4,646			6,527			1,272			(12,659	)
Balance, end of period	$	702,429		$	745,322		$	798,335		$	853,211		$	908,600		$	966,094		$	1,004,545

(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.

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

																				YOY Q3
(Dollars in thousands, except per-share data)	Q1 2010		Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011			Q3 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			73,658,253			1,398,901			1.9	%		73,264,528

Net income	na	$	22,008		$	39,595		$	52,889		$	52,467		$	44,023		$	40,600		$	1,006			2.5	%	$	137,091
Less income attributable to unvested participating securities	na		(928	)		(1,540	)		(2,051	)		(2,103	)		(1,284	)		(1,144	)		396			25.7	%		(4,341	)
Net income used in computing basic EPS	na	$	21,080		$	38,055		$	50,838		$	50,364		$	42,739		$	39,457		$	1,402			3.7	%	$	132,750
Basic earnings per share	na	$	0.29		$	0.53		$	0.70		$	0.69		$	0.58		$	0.54		$	0.01			1.7	%	$	1.81

Net operating income	na	$	37,199		$	40,913		$	45,217		$	48,629		$	44,999		$	42,817		$	1,904			4.7	%	$	136,445
Less operating income attributable to unvested participating securities	na		(1,569	)		(1,591	)		(1,753	)		(1,949	)		(1,313	)		(1,206	)		385			24.2	%		(4,320	)
Net operating income used in computing basic operating EPS	na	$	35,631		$	39,322		$	43,464		$	46,680		$	43,686		$	41,611		$	2,289			5.8	%	$	132,125
Basic operating income per share	na	$	0.50		$	0.54		$	0.60		$	0.64		$	0.59		$	0.56		$	0.02			3.8	%	$	1.80

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			73,658,253			1,398,901			1.9	%		73,264,528
Dilutive impact of warrants	na		890,777			660,066			786,628			1,154,597			743,814			541,184			(118,882	)		-18.0	%		830,342
Shares used to calculate diluted EPS	na		72,734,365			72,919,418			73,239,754			73,826,078			74,201,147			74,199,437			1,280,019			1.8	%		74,094,870

Net income	na	$	22,008		$	39,595		$	52,889		$	52,467		$	44,023		$	40,600		$	1,006			2.5	%	$	137,091
Less income attributable to unvested participating securities	na		(917	)		(1,527	)		(2,030	)		(2,072	)		(1,272	)		(1,136	)		391			25.6	%		(4,295	)
Net income used in computing diluted EPS	na	$	21,091		$	38,068		$	50,859		$	50,395		$	42,751		$	39,464		$	1,397			3.7	%	$	132,796
Diluted earnings per share	na	$	0.29		$	0.52		$	0.69		$	0.68		$	0.58		$	0.53		$	0.01			1.9	%	$	1.79

Net operating income	na	$	37,199		$	40,913		$	45,217		$	48,629		$	44,999		$	42,817		$	1,904			4.7	%	$	136,445
Less operating income attributable to unvested participating securities	na		(1,550	)		(1,578	)		(1,735	)		(1,920	)		(1,301	)		(1,198	)		379			24.1	%		(4,275	)
Net operating income used in computing diluted operating EPS	na	$	35,649		$	39,335		$	43,482		$	46,709		$	43,698		$	41,619		$	2,283			5.8	%	$	132,170
Diluted operating income per share	na	$	0.49		$	0.54		$	0.59		$	0.63		$	0.59		$	0.56		$	0.02			4.0	%	$	1.78

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 Q3
	Q1 2010		Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011			Q3 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		$	1,559,298		$	202,343			14.9	%	$	1,513,056
Average adjusted stockholders' equity	na	$	1,208,809		$	1,251,021		$	1,306,847		$	1,365,910		$	1,419,982		$	1,459,165		$	208,144			16.6	%	$	1,415,019

Net income return on stockholders' equity	na		6.8	%		11.7	%		15.0	%		14.4	%		11.6	%		10.4	%		-1.3	%	nm				12.1	%
Net income return on adjusted stockholders' equity	na		7.3	%		12.7	%		16.2	%		15.4	%		12.4	%		11.1	%		-1.5	%	nm				12.9	%

Net operating income return on adjusted
stockholders' equity	na		12.3	%		13.1	%		13.8	%		14.2	%		12.7	%		11.7	%		-1.3	%	nm				12.9	%

Capital Structure
Debt-to-capital (1)	na		18.5	%		17.7	%		17.3	%		16.8	%		16.2	%		16.0	%		-1.7	%	nm				16.0	%

Cash and invested assets to stockholders' equity	na		1.7	x		1.6	x		1.6	x		1.6	x		1.5	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		1.6	x		(0.2x	)	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			73,740,120			1,012,947			1.4	%		73,740,120
Adjusted stockholders' equity per share	na	$	16.83		$	17.58		$	18.33		$	19.08		$	19.61		$	20.00		$	2.42			13.8	%	$	20.00

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

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

Statements of Income																						PRIMERICA, INC.
																						Financial Supplement

		(4)																				YOY Q3
(Dollars in thousands)		Q1 2010			Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011			Q3 2011		$ Change			% Change			YTD 2011
Statement of Income
Revenues:
Direct premiums	$	537,845		$	547,455		$	547,444		$	548,330		$	552,069		$	560,881		$	560,739		$	13,295			2.4	%	$	1,673,689
Ceded premiums		(148,119	)		(447,213	)		(437,054	)		(417,981	)		(422,238	)		(435,564	)		(425,643			11,411			2.6	%		(1,283,445	)
Net premiums		389,726			100,242			110,390			130,349			129,831			125,317			135,096			24,706			22.4	%		390,244
Net investment income		82,576			27,991			27,855			26,688			28,626			27,229			27,103			(752	)		-2.7	%		82,958
Commissions and fees:
Sales-based (1)		36,363			36,301			32,941			37,001			43,128			44,904			42,244			9,303			28.2	%		130,276
Asset-based (2)		38,014			39,445			37,602			52,412			44,825			45,348			41,996			4,394			11.7	%		132,170
Account-based (3)		10,208			10,317			10,620			10,545			10,432			11,811			10,140			(480	)		-4.5	%		32,382
Other commissions and fees		7,105			7,162			8,574			8,331			7,731			6,635			6,502			(2,071	)		-24.2	%		20,868
Realized investment (losses) gains		31,057			374			1,015			1,700			327			2,035			(178	)		(1,193	)		-117.5	%		2,184
Other, net		11,893			12,466			12,239			12,362			11,452			11,816			12,886			647			5.3	%		36,154
Total revenues		606,942			234,299			241,236			279,387			276,352			275,095			275,790			34,554			14.3	%		827,237
Benefits and expenses:
Benefits and claims		170,735			45,124			49,811			52,033			57,635			57,272			64,101			14,290			28.7	%		179,008
Amortization of DAC		91,756			22,899			23,844			29,536			25,556			27,385			30,532			6,688			28.0	%		83,473
Insurance commissions		6,371			4,233			5,100			4,205			5,000			4,219			4,909			(191	)		-3.7	%		14,128
Insurance expenses		37,529			10,083			11,999			15,887			9,552			19,154			15,465			3,466			28.9	%		44,171
Sales commissions:
Sales-based (1)		26,203			25,998			23,474			25,319			30,547			31,378			29,627			6,153			26.2	%		91,552
Asset-based (2)		12,715			12,911			12,232			20,271			15,451			15,111			13,805			1,573			12.9	%		44,368
Other sales commissions		4,963			4,603			6,558			4,676			4,358			3,674			3,538			(3,020			-46.0	%		11,570
Interest expense		—			6,928			6,968			6,976			6,997			6,998			7,000			32		nm				20,995
Other operating expenses		36,268			65,183			39,371			39,962			40,111			41,743			42,962			3,591			9.1	%		124,816
Total benefits and expenses		386,541			197,961			179,357			198,865			195,207			206,934			211,940			32,583			18.2	%		614,081
Income before income taxes		220,402			36,338			61,879			80,522			81,145			68,161			63,850			1,971			3.2	%		213,156
Income taxes		77,116			14,330			22,284			27,633			28,678			24,138			23,250			966			4.3	%		76,066
Net income	$	143,286		$	22,008		$	39,595		$	52,889		$	52,467		$	44,023		$	40,600		$	1,005			2.5	%	$	137,090

Income Before Income Taxes by Segment
Term Life	$	160,367		$	44,095		$	42,581		$	52,000		$	57,649		$	45,781		$	48,088		$	5,507			12.9	%	$	151,518
Investment & Savings Products		25,447			26,735			26,578			34,769			31,039			30,470			26,746			168		nm				88,255
Corporate & Other Distributed Products		34,587			(34,492	)		(7,280	)		(6,247	)		(7,543	)		(8,090	)		(10,984	)		(3,704	)		-50.9	%		(26,617	)
Income before income taxes	$	220,402		$	36,338		$	61,879		$	80,522		$	81,145		$	68,161		$	63,850		$	1,971			3.2	%	$	213,156

Reconciliation of Statement of Income Non-GAAP to GAAP Financial Measures																											PRIMERICA, INC.
																											Financial Supplement
																						YOY Q3											YOY YTD
(Dollars in thousands)		Q1 2010			Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011			Q3 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		$	275,968		$	35,747		14.9	%	$	698,968		$	816,324		$	117,357			16.8	%

Operating revenues reconciling items:
Realized investment gains/losses		31,057			374			1,015			1,700			327			2,035			(178	)	nm		nm				32,446			2,184		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			(178	)	nm		nm				383,510			10,913		nm			nm

Total revenues	$	606,942		$	234,299		$	241,236		$	279,387		$	276,352		$	275,095		$	275,790		$	34,554		14.3	%	$	1,082,477		$	827,237		$	(255,240	)		-23.6	%

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		$	67,337		$	3,397		5.3	%	$	184,049		$	212,217		$	28,168			15.3	%

Operating income before income taxes reconciling
items:
Realized investment gains/losses		31,057			374			1,015			1,700			327			2,035			(178	)	nm		nm				32,446			2,184		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	)		(3,309	)	nm		nm				(28,533	)		(9,974	)	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	)		(3,487	)	nm		nm				134,569			939		nm			nm

Income before income taxes	$	220,402		$	36,338		$	61,879		$	80,522		$	81,145		$	68,161		$	63,850		$	1,971		3.2	%	$	318,619		$	213,156		$	(105,463	)		-33.1	%


Reconciliation from Net Operating Income to Net Income
Net operating income	$	38,154		$	37,199		$	40,914		$	45,217		$	48,629		$	44,999		$	42,817		$	1,903		4.7	%	$	116,267		$	136,445		$	20,178			17.4	%

Net operating income reconciling items:
Operating income before income taxes
reconciling items		161,713			(25,083	)		(2,061	)		11,680			5,936			(1,511	)		(3,487	)	nm		nm				134,569			939		nm			nm
Tax impact of operating income
reconciling items at effective tax rate		(56,582	)		9,891			742			(4,008	)		(2,098	)		535			1,270		nm		nm				(45,948	)		(293	)	nm			nm
Total net operating income reconciling items		105,131			(15,191	)		(1,319	)		7,672			3,838			(976	)		(2,217	)	nm		nm				88,621			645		nm			nm

Net income	$	143,286		$	22,008		$	39,595		$	52,889		$	52,467		$	44,023		$	40,600		$	1,005		2.5	%	$	204,889		$	137,090		$	(67,799	)		-33.1	%

Segment Operating Results																												PRIMERICA, INC.
																												Financial Supplement

																						YOY Q3												YOY YTD
(Dollars in thousands)		Q1 2010			Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011			Q3 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		$	539,693		$	14,049			2.7	%	$	1,571,367		$	1,612,144		$	40,776			2.6	%
Ceded premiums		(440,699	)		(444,008	)		(433,234	)		(427,571	)		(427,382	)		(431,890	)		(421,933	)		11,301			2.6	%		(1,317,941	)		(1,281,205	)		36,736			2.8	%
Net premiums		77,233			83,784			92,410			101,770			104,786			108,393			117,760			25,350			27.4	%		253,426			330,939			77,512			30.6	%
Allocated net investment income		16,497			15,961			15,595			14,242			15,794			15,669			15,664			70		nm				48,052			47,127			(925	)		-1.9	%
Other, net		8,782			8,643			7,929			7,914			7,653			7,580			8,289			360			4.5	%		25,354			23,522			(1,832	)		-7.2	%
Operating revenues		102,511			108,388			115,933			123,926			128,233			131,641			141,713			25,780			22.2	%		326,833			401,588			74,755			22.9	%
Benefits and expenses:
Benefits and claims		32,905			35,134			39,084			42,325			47,351			43,921			52,067			12,983			33.2	%		107,123			143,339			36,216			33.8	%
Amortization of DAC		17,418			19,128			21,900			26,477			22,146			22,995			25,868			3,967			18.1	%		58,447			71,009			12,562			21.5	%
Insurance commissions		456			404			330			320			327			268			267			(63	)		-19.2	%		1,190			861			(329	)		-27.6	%
Insurance expenses		8,687			6,824			9,194			13,095			6,618			15,804			12,549			3,355			36.5	%		24,705			34,971			10,266			41.6	%
Interest expense		2,812			2,803			2,843			2,851			2,872			2,873			2,875			32			1.1	%		8,458			8,619			161			1.9	%
Operating benefits and expenses		62,278			64,294			73,352			85,067			79,313			85,860			93,625			20,273			27.6	%		199,923			258,799			58,876			29.4	%
Operating income before income taxes	$	40,234		$	44,095		$	42,581		$	38,859		$	48,920		$	45,781		$	48,088		$	5,506			12.9	%	$	126,910		$	142,789		$	15,879			12.5	%

Investment & Savings Products
Revenues:
Commissions and fees:
Sales-based	$	36,363		$	36,301		$	32,941		$	37,001		$	43,128		$	44,904		$	42,244		$	9,303			28.2	%	$	105,604		$	130,276		$	24,672			23.4	%
Asset-based		38,014			39,445			37,602			52,412			44,825			45,348			41,996			4,394			11.7	%		115,061			132,170			17,109			14.9	%
Account-based		10,208			10,317			10,620			10,545			10,432			11,811			10,140			(480	)		-4.5	%		31,146			32,382			1,236			4.0	%
Other, net		2,108			2,155			2,711			3,064			2,461			2,522			3,105			394			14.5	%		6,974			8,089			1,115			16.0	%
Operating revenues		86,693			88,218			83,874			103,021			100,846			104,586			97,486			13,612			16.2	%		258,785			302,917			44,132			17.1	%
Benefits and expenses:
Amortization of DAC		2,549			3,029			1,361			2,392			2,785			3,751			4,034			2,673		nm				6,938			10,569			3,631			52.3	%
Insurance commissions		1,809			1,989			1,964			2,091			2,140			2,344			2,277			314			16.0	%		5,761			6,762			1,001			17.4	%
Sales commissions:
Sales-based		26,203			25,998			23,474			25,319			30,547			31,378			29,627			6,153			26.2	%		75,674			91,552			15,878			21.0	%
Asset-based		12,715			12,911			12,232			20,271			15,451			15,111			13,805			1,573			12.9	%		37,858			44,368			6,509			17.2	%
Other operating expenses		17,970			17,556			18,266			18,179			18,884			21,531			20,997			2,730			14.9	%		53,793			61,411			7,618			14.2	%
Operating benefits and expenses		61,246			61,483			57,296			68,253			69,807			74,115			70,740			13,444			23.5	%		180,025			214,662			34,637			19.2	%
Operating income before income taxes	$	25,447		$	26,735		$	26,578		$	34,769		$	31,039		$	30,470		$	26,746		$	168		nm			$	78,760		$	88,255		$	9,495			12.1	%

Corporate & Other Distributed Products
Revenues:
Direct premiums	$	19,913		$	19,663		$	21,800		$	18,989		$	19,902		$	20,597		$	21,046		$	(754	)		-3.5	%	$	61,376		$	61,545		$	169		nm
Ceded premiums		(3,748	)		(3,206	)		(3,820	)		(3,551	)		(3,585	)		(3,674	)		(3,710	)		110			2.9	%		(10,774	)		(10,969	)		(195	)		-1.8	%
Net premiums		16,165			16,458			17,980			15,438			16,317			16,924			17,336			(644	)		-3.6	%		50,603			50,576			(26	)	nm
Allocated net investment income		11,344			12,030			12,260			12,446			12,831			11,560			11,439			(821	)		-6.7	%		35,634			35,830			196		nm
Commissions and fees:
Loans		2,455			1,918			3,527			2,427			1,528			1,202			1,126			(2,400	)		-68.1	%		7,900			3,856			(4,044			-51.2	%
DebtWatchers		620			779			845			1,035			1,071			805			840			(4	)	nm				2,243			2,716			473		nm
Prepaid Legal Services		2,340			2,305			2,287			2,689			2,619			2,345			2,329			41			1.8	%		6,932			7,293			360			5.2	%
Auto and Homeowners Insurance		1,012			1,372			1,200			1,395			1,687			1,507			1,427			227			18.9	%		3,584			4,621			1,037			28.9	%
Long-Term Care Insurance		679			788			715			784			825			775			764			49			6.8	%		2,181			2,364			183			8.4	%
Other sales commissions		—			—			—			—			1			0			16			16		nm				—			18			18		nm
Other, net		1,004			1,668			1,600			1,383			1,338			1,714			1,492			(108	)		-6.8	%		4,271			4,544			273			6.4	%
Operating revenues		35,618			37,318			40,414			37,598			38,217			36,833			36,769			(3,645	)		-9.0	%		113,349			111,819			(1,530	)		-1.3	%
Benefits and expenses:
Benefits and claims		9,626			9,991			10,727			9,708			10,284			13,352			12,034			1,307			12.2	%		30,344			35,670			5,326			17.6	%
Amortization of DAC		400			742			583			667			625			639			631			48			8.2	%		1,725			1,895			169			9.8	%
Insurance commissions		2,438			1,838			2,804			1,793			2,534			1,607			2,365			(439	)		-15.6	%		7,080			6,506			(574	)		-8.1	%
Insurance expenses		2,759			3,259			2,804			2,792			2,934			3,350			2,916			112			4.0	%		8,823			9,200			377			4.3	%
Sales commissions		4,963			4,603			6,560			4,676			4,358			3,674			3,538			(3,022	)		-46.1	%		16,126			11,570			(4,555	)		-28.2	%
Interest expense		4,125			4,125			4,125			4,125			4,125			4,125			4,125			—		nm				12,375			12,375			—		nm
Other operating expenses		18,298			22,170			18,030			18,622			18,107			16,667			18,657			627			3.5	%		58,497			53,431			(5,066	)		-8.7	%
Operating benefits and expenses		42,609			46,727			45,633			42,383			42,967			43,413			44,267			(1,367	)		-3.0	%		134,970			130,646			(4,324	)		-3.2	%
Operating income before income taxes	$	(6,992	)	$	(9,410	)	$	(5,219	)	$	(4,786	)	$	(4,749	)	$	(6,580	)	$	(7,498	)	$	(2,278	)		-43.7	%	$	(21,621	)	$	(18,827	)	$	2,794			12.9	%

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

(Dollars in thousands)																						YOY Q3												YOY YTD
Term Life Insurance Operating Income Before Income Taxes		Q1 2010			Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011			Q3 2011		$ Change			% Change			YTD 2010			YTD 2011			$ Change			% Change
Revenues:
Direct premiums	$	517,932		$	527,792		$	525,644		$	529,341		$	532,167		$	540,283		$	539,693		$	14,049			2.7	%	$	1,571,367		$	1,612,144		$	40,776			2.6	%
Ceded premiums		(440,699	)		(444,008	)		(433,234	)		(427,571	)		(427,382	)		(431,890	)		(421,933	)		11,301			2.6	%		(1,317,941	)		(1,281,205	)		36,736			2.8	%
Net premiums		77,233			83,784			92,410			101,770			104,786			108,393			117,760			25,350			27.4	%		253,426			330,939			77,512			30.6	%
Allocated net investment income		16,497			15,961			15,595			14,242			15,794			15,669			15,664			70		nm				48,052			47,127			(925	)		-1.9	%
Other, net		8,782			8,643			7,929			7,914			7,653			7,580			8,289			360			4.5	%		25,354			23,522			(1,832	)		-7.2	%
Operating revenues		102,511			108,388			115,933			123,926			128,233			131,641			141,713			25,780			22.2	%		326,833			401,588			74,755			22.9	%
Benefits and expenses:
Benefits and claims		32,905			35,134			39,084			42,325			47,351			43,921			52,067			12,983			33.2	%		107,123			143,339			36,216			33.8	%
Amortization of DAC		17,418			19,128			21,900			26,477			22,146			22,995			25,868			3,967			18.1	%		58,447			71,009			12,562			21.5	%
Insurance commissions		456			404			330			320			327			268			267			(63	)		-19.2	%		1,190			861			(329	)		-27.6	%
Insurance expenses		8,687			6,824			9,194			13,095			6,618			15,804			12,549			3,355			36.5	%		24,705			34,971			10,266			41.6	%
Interest expense		2,812			2,803			2,843			2,851			2,872			2,873			2,875			32			1.1	%		8,458			8,619			161			1.9	%
Operating benefits and expenses		62,278			64,294			73,352			85,067			79,313			85,860			93,625			20,273			27.6	%		199,923			258,799			58,876			29.4	%
Operating income before income taxes	$	40,234		$	44,095		$	42,581		$	38,859		$	48,920		$	45,781		$	48,088		$	5,506			12.9	%	$	126,910		$	142,789		$	15,879			12.5	%

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		$	64,655		$	34,505			114.4	%	$	61,544		$	168,007		$	106,464		nm
Ceded premiums		(3,737	)		(3,869	)		(3,351	)		(4,029	)		(8,075	)		(9,320	)		(8,513	)		(5,162	)	nm				(10,956	)		(25,907	)		(14,951	)		-136.5	%
Net premiums		6,401			17,388			26,799			34,168			38,697			47,261			56,142			29,344			109.5	%		50,587			142,100			91,512		nm
Allocated net investment income		109			175			318			478			630			722			986			669		nm				602			2,339			1,737		nm
Other, net		8,802			8,675			8,100			7,890			7,614			7,605			8,287			187			2.3	%		25,576			23,506			(2,070	)		-8.1	%
Operating revenues		15,312			26,238			35,216			42,537			46,941			55,588			65,415			30,199			85.8	%		76,765			167,944			91,179			118.8	%
Benefits and expenses:
Benefits and claims		1,517			5,413			10,343			13,550			14,002			17,380			21,086			10,743			103.9	%		17,274			52,468			35,194		nm
Amortization of DAC		968			6,405			7,725			11,667			10,163			10,527			13,822			6,097			78.9	%		15,099			34,513			19,414			128.6	%
Insurance commissions		—			0			(1	)		(0	)		(0	)		(0	)		(0	)		1			91.2	%		(1	)		(0	)		1			78.6	%
Insurance expenses		18,180			16,050			18,224			19,128			15,761			24,550			21,417			3,193			17.5	%		52,454			61,728			9,274			17.7	%
Interest expense		—			(0	)		—			—			—			—			—			—		nm				(0	)		—			0			100.0	%
Operating benefits and expenses		20,665			27,869			36,291			44,344			39,926			52,457			56,325			20,034			55.2	%		84,825			148,708			63,883			75.3	%
Operating income before income taxes	$	(5,354	)	$	(1,631	)	$	(1,075	)	$	(1,807	)	$	7,015		$	3,132		$	9,090		$	10,165		nm			$	(8,060		$	19,236		$	27,296		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		$	475,038		$	(20,456			-4.1	%	$	1,509,824		$	1,444,136		$	(65,687	)		-4.4	%
Ceded premiums		(436,962	)		(440,140	)		(429,883	)		(423,542	)		(419,307	)		(422,570	)		(413,421	)		16,463			3.8	%		(1,306,985	)		(1,255,297	)		51,687			4.0	%
Net premiums		70,832			66,396			65,611			67,602			66,089			61,132			61,618			(3,993	)		-6.1	%		202,839			188,839			(14,000	)		-6.9	%
Allocated net investment income		16,388			15,786			15,277			13,763			15,164			14,947			14,678			(599	)		-3.9	%		47,451			44,789			(2,662	)		-5.6	%
Other, net		(20	)		(32	)		(170	)		24			39			(26	)		2			173			101.3	%		(223	)		16			238			107.1	%
Operating revenues		87,199			82,150			80,718			81,389			81,293			76,053			76,298			(4,420	)		-5.5	%		250,067			233,643			(16,424	)		-6.6	%
Benefits and expenses:
Benefits and claims		31,388			29,721			28,741			28,775			33,349			26,541			30,981			2,240			7.8	%		89,849			90,871			1,022			1.1	%
Amortization of DAC		16,450			12,723			14,175			14,810			11,983			12,468			12,046			(2,130	)		-15.0	%		43,349			36,496			(6,852	)		-15.8	%
Insurance commissions		456			404			331			320			327			268			267			(64	)		-19.4	%		1,191			861			(329	)		-27.7	%
Insurance expenses		10,047			9,888			9,648			12,270			9,366			9,466			9,014			(634	)		-6.6	%		29,584			27,846			(1,738	)		-5.9	%
Insurance expense allowance		(19,541	)		(19,114	)		(18,678	)		(18,303	)		(18,508	)		(18,212	)		(17,883	)		795			4.3	%		(57,333	)		(54,602	)		2,730			4.8	%
Interest expense		2,812			2,803			2,843			2,851			2,872			2,873			2,875			32			1.1	%		8,458			8,619			161			1.9	%
Operating benefits and expenses		41,612			36,425			37,061			40,723			39,387			33,403			37,300			239		nm				115,098			110,091			(5,007	)		-4.4	%
Operating income before income taxes	$	45,587		$	45,726		$	43,657		$	40,666		$	41,905		$	42,650		$	38,998		$	(4,659	)		-10.7	%	$	134,969		$	123,552		$	(11,417	)		-8.5	%

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

																						YOY Q3												YOY YTD
(Dollars in thousands, except as noted)		Q1 2010			Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011			Q3 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			90,519			(5,547	)		-5.8	%		99,785			94,850			(4,935	)		-4.9	%
New life-licensed representatives		7,366			9,887			9,430			7,805			7,145			8,061			10,334			904			9.6	%		26,683			25,540			(1,143	)		-4.3	%
Non-renewal and terminated representatives		(9,797	)		(11,175	)		(8,624	)		(9,827	)		(9,783	)		(9,754	)		(8,883	)		(259	)		-3.0	%		(29,596	)		(28,420	)		1,176			4.0	%
Life-insurance licensed sales force, end of period		97,354			96,066			96,872			94,850			92,212			90,519			91,970			(4,902	)		-5.1	%		96,872			91,970			(4,902	)		-5.1	%

Estimated annualized issued term life premium ($mills) (1):
Premium from new policies	$	43.4		$	48.9		$	44.1		$	44.5		$	41.1		$	47.5		$	50.1		$	6.0			13.7	%	$	136.3		$	138.7		$	2.4			1.8	%
Additions and increases in premium		10.8			11.7			10.9			11.2			10.4			11.4			11.5			0.6			5.6	%		33.4			33.4			(0.1	)	nm
Total estimated annualized issued term life premium	$	54.2		$	60.6		$	55.0		$	55.6		$	51.5		$	58.9		$	61.7		$	6.6			12.1	%	$	169.8		$	172.1		$	2.3			1.4	%

Issued term life policies		52,445			60,406			54,373			56,290			51,281			59,826			65,067			10,694			19.7	%		167,224			176,174			8,950			5.4	%
Estimated average annualized issued term life premium per policy (1)(2)	$	827		$	809		$	811		$	790		$	802		$	794		$	771		$	(40	)		-5.0	%	$	815		$	788		$	(28	)		-3.4	%

Term life face amount in-force, beginning of period ($mills)	$	650,195		$	651,790		$	653,530		$	654,633		$	656,791		$	658,523		$	663,617		$	10,087			1.5	%	$	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			18,885			772			4.3	%		56,152			54,594			(1,558	)		-2.8	%
Terminated term life face amount		(18,867	)		(16,156	)		(17,836	)		(18,105	)		(17,247	)		(14,724	)		(16,221	)		1,615			9.1	%		(52,859	)		(48,192	)		4,667			8.8	%
Foreign currency impact, net		2,464			(2,146	)		826			2,013			2,244			843			(98	)		(924	)	nm				1,145			2,989			1,844		nm
Term life face amount in-force, end of period	$	651,790		$	653,530		$	654,633		$	656,791		$	658,523		$	663,617		$	666,182		$	11,549			1.8	%	$	654,633		$	666,182		$	11,549			1.8	%


New Term Life Insurance - Financial Analysis

Direct premium	$	10,138		$	21,256		$	30,149		$	38,197		$	46,771		$	56,581		$	64,655			34,505			114.4	%	$	61,544		$	168,007		$	106,464		nm

New term life operating income before income taxes	$	(5,354	)	$	(1,631	)	$	(1,075	)	$	(1,807	)	$	7,015		$	3,132		$	9,090			10,165		nm			$	(8,060	)	$	19,236		$	27,296		nm
% of direct premium		-52.8	%		-7.7	%		-3.6	%		-4.7	%		15.0	%		5.5	%		14.1		nm			nm				-13.1	%		11.4	%	nm			nm

Benefits & expenses, net (4)	$	6,222		$	15,687		$	21,418		$	29,245		$	32,240		$	37,227		$	43,421			22,002			102.7	%	$	43,328		$	112,888		$	69,560		nm
% of direct premium		61.4	%		73.8	%		71.0	%		76.6	%		68.9	%		65.8	%		67.2		nm			nm				70.4	%		67.2	%	nm			nm

Insurance expenses, net (5)	$	9,378		$	7,375		$	10,124		$	11,237		$	8,147		$	16,944		$	13,131			3,007			29.7	%	$	26,877		$	38,222		$	11,344			42.2	%
% of direct premium		92.5	%		34.7	%		33.6	%		29.4	%		17.4	%		29.9	%		20.3		nm			nm				43.7	%		22.7	%	nm			nm


Legacy Term Life Insurance - Financial Analysis

Direct premium	$	507,794		$	506,536		$	495,494		$	491,144		$	485,396		$	483,702		$	475,038			(20,456	)		-4.1	%	$	1,509,824		$	1,444,136		$	(65,687	)		-4.4	%

Legacy term life operating income before income taxes	$	45,587		$	45,726		$	43,657		$	40,666		$	41,905		$	42,650		$	38,998			(4,659	)		-10.7	%	$	134,969		$	123,552		$	(11,417	)		-8.5	%
% of direct premium		9.0	%		9.0	%		8.8	%		8.3	%		8.6	%		8.8	%		8.2		nm			nm				8.9	%		8.6	%	nm			nm

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

(Dollars in thousands, except as noted)																						YOY Q3												YOY YTD
Investment & Savings Products Operating Income Before Income Taxes		Q1 2010			Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011			Q3 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		$	42,244		$	9,303			28.2	%	$	105,604		$	130,276		$	24,672			23.4	%
Asset-based		38,014			39,445			37,602			52,412			44,825			45,348			41,996			4,394			11.7	%		115,061			132,170			17,109			14.9	%
Account-based		10,208			10,317			10,620			10,545			10,432			11,811			10,140			(480	)		-4.5	%		31,146			32,382			1,236			4.0	%
Other, net		2,108			2,155			2,711			3,064			2,461			2,522			3,105			394			14.5	%		6,974			8,089			1,115			16.0	%
Operating revenues		86,693			88,218			83,874			103,021			100,846			104,586			97,486			13,612			16.2	%		258,785			302,917			44,132			17.1	%
Benefits and expenses:
Amortization of DAC		2,549			3,029			1,361			2,392			2,785			3,751			4,034			2,673		nm				6,938			10,569			3,631			52.3	%
Insurance commissions		1,809			1,989			1,964			2,091			2,140			2,344			2,277			314			16.0	%		5,761			6,762			1,001			17.4	%
Sales commissions:
Sales-based		26,203			25,998			23,474			25,319			30,547			31,378			29,627			6,153			26.2	%		75,674			91,552			15,878			21.0	%
Asset-based		12,715			12,911			12,232			20,271			15,451			15,111			13,805			1,573			12.9	%		37,858			44,368			6,509			17.2	%
Other operating expenses		17,970			17,556			18,266			18,179			18,884			21,531			20,997			2,730			14.9	%		53,793			61,411			7,618			14.2	%
Operating benefits and expenses		61,246			61,483			57,296			68,253			69,807			74,115			70,740			13,444			23.5	%		180,025			214,662			34,637			19.2	%
Operating income before income taxes	$	25,447		$	26,735		$	26,578		$	34,769		$	31,039		$	30,470		$	26,746		$	168		nm			$	78,760		$	88,255		$	9,495			12.1	%


Key Statistics
Product sales ($mills)
Retail Mutual Funds	$	594.7		$	551.0		$	474.8		$	520.3		$	646.0		$	603.1		$	498.3		$	23.4			4.9	%	$	1,620.5		$	1,747.4		$	126.8			7.8	%
Variable Annuities and other		267.3			308.3			287.5			306.1			344.6			458.0			483.4			196.0			68.2	%		863.2			1,286.1			422.9			49.0	%
Total sales-based revenue generating product sales		862.1			859.3			762.3			826.4			990.6			1,061.1			981.7			219.4			28.8	%		2,483.7			3,033.4			549.7			22.1	%
Managed Mutual Funds		—			—			—			—			—			0.2			11.8			11.8		nm				—			12.0			12.0		nm
Segregated Funds		111.4			64.0			61.6			76.6			123.1			74.2			66.6			5.0			8.1	%		237.0			263.8			26.8			11.3	%
Total product sales	$	973.5		$	923.3		$	823.9		$	903.0		$	1,113.7		$	1,135.5		$	1,060.0		$	236.2			28.7	%	$	2,720.7		$	3,309.2		$	588.5			21.6	%

Client asset values, beginning of period ($mills)	$	31,303		$	32,670		$	29,723		$	32,600		$	34,869		$	36,187		$	36,020		$	6,297			21.2	%	$	31,303		$	34,869		$	3,566			11.4	%
Inflows		974			923			824			903			1,114			1,136			1,060			236			28.7	%		2,721			3,309			589			21.6	%
Outflows (1)		(956	)		(903	)		(887	)		(945	)		(1,083	)		(1,118	)		(1,024	)		(137	)		-15.5	%		(2,746	)		(3,225	)		(479	)		-17.4	%
Net flows		17			20			(63	)		(42	)		31			18			36			99		nm				(25	)		84			110		nm
Change in market value, net and other (2)		1,350			(2,967	)		2,940			2,311			1,288			(185	)		(4,433	)		(7,373	)	nm				1,322			(3,331	)		(4,653	)	nm
Client asset values, end of period	$	32,670		$	29,723		$	32,600		$	34,869		$	36,187		$	36,020		$	31,623		$	(977	)		-3.0	%	$	32,600		$	31,623		$	(977	)		-3.0	%

Average client asset values ($mills)
Mutual Funds	$	22,453		$	22,424		$	21,919		$	23,661		$	24,882		$	25,330		$	23,521		$	1,603			7.3	%	$	22,265		$	24,578		$	2,313			10.4	%
Variable Annuities and other		6,847			6,955			6,954			7,623			8,242			8,588			8,192			1,238			17.8	%		6,918			8,341			1,422			20.6	%
Segregated Funds		2,105			2,182			2,184			2,327			2,477			2,545			2,479			295			13.5	%		2,157			2,501			343			15.9	%
Total	$	31,404		$	31,561		$	31,056		$	33,611		$	35,602		$	36,463		$	34,192		$	3,136			10.1	%	$	31,341		$	35,419		$	4,078			13.0	%

Average number of fee-generating accounts (thous) (3)		2,762			2,741			2,715			2,694			2,662			2,611			2,626			(89	)		-3.3	%		2,739			2,633			(106	)		-3.9	%


Financial Analysis

Sales-based net revenue as % of sales (4)		1.18	%		1.20	%		1.24	%		1.41	%		1.27	%		1.27	%		1.29	%	nm			nm				1.21	%		1.28	%	nm			nm

Asset-based net revenue as % of average asset values (5)		0.07	%		0.07	%		0.07	%		0.08	%		0.07	%		0.07	%		0.06	%	nm			nm				0.21	%		0.20	%	nm			nm

Account-based revenue per average fee generating account (6)	$	3.70		$	3.76		$	3.91		$	3.91		$	3.92		$	4.52		$	3.86		nm			nm				11.37			12.30		nm			nm

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

	As of or for the period ended September 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	$	154,027	$	154,027	$	—			6.7	%		7.2	%

Fixed Income:
Treasury		36,217		33,134		3,082			1.6	%		1.5	%		3.14	%	AAA
Government		106,458		94,587		11,871			4.6	%		4.4	%		4.71	%	AA-
Tax-Exempt Municipal		9,049		8,632		417			0.4	%		0.4	%		3.70	%	AA
Corporate		1,326,659		1,226,170		100,489			57.8	%		57.3	%		5.62	%	BBB+
Mortgage-Backed		297,266		273,545		23,721			13.0	%		12.8	%		5.46	%	AA+
Asset-Backed		72,551		74,093		(1,542	)		3.2	%		3.5	%		1.60	%	AA
CMBS		144,760		138,736		6,024			6.3	%		6.5	%		4.93	%	AAA
Private		109,184		104,654		4,530			4.8	%		4.9	%		6.08	%	BBB
Redeemable Preferred		683		919		(236	)		0.0	%		0.0	%		48.25	%	A
Convertible		14,923		14,314		609			0.7	%		0.7	%		3.77	%	BBB+
Total Fixed Income		2,117,751		1,968,786		148,965			92.3	%		91.9	%		5.33	%	A

Equities:
Perpetual Preferred		191		85		106			0.0	%		0.0	%
Common Stock		9,505		8,567		938			0.4	%		0.4	%
Mutual Fund		6,741		4,079		2,662			0.3	%		0.2	%
Other		5,665		5,665		—			0.2	%		0.3	%
Total Equities		22,102		18,396		3,706			1.0	%		0.9	%
Total Invested Assets	$	2,293,880	$	2,141,208	$	152,671			100.0	%		100.0	%

Corporate Portfolio by Sector

Banking	$	140,713	$	137,908	$	2,805			10.6	%		11.2	%
Basic Industry		99,293		91,744		7,549			7.5	%		7.5	%
Brokerage		21,495		19,892		1,602			1.6	%		1.6	%
Capital Goods		79,853		72,591		7,262			6.0	%		5.9	%
Communications		99,849		92,196		7,652			7.5	%		7.5	%
Consumer Cyclical		61,864		58,149		3,715			4.7	%		4.7	%
Consumer Non-Cyclical		154,352		136,757		17,594			11.6	%		11.2	%
Electric		128,809		115,172		13,637			9.7	%		9.4	%
Energy		75,262		67,695		7,567			5.7	%		5.5	%
Finance Companies		27,589		24,728		2,861			2.1	%		2.0	%
Financial Other		13,065		12,480		585			1.0	%		1.0	%
Industrial Other		31,716		29,286		2,430			2.4	%		2.4	%
Insurance		114,667		108,254		6,412			8.6	%		8.8	%
Natural Gas		76,146		68,986		7,160			5.7	%		5.6	%
REITs		104,249		99,179		5,070			7.9	%		8.1	%
Technology		63,192		59,187		4,005			4.8	%		4.8	%
Transportation		29,288		26,970		2,318			2.2	%		2.2	%
Utility Other		5,260		4,994		265			0.4	%		0.4	%
Total Corporate portfolio	$	1,326,659	$	1,226,170	$	100,489			100.0	%		100.0	%

Fixed-Maturity Securities - Effective Maturity

Effective maturity
< 1 Yr.	$	233,529	$	229,852	$	3,676			11.0	%		11.7	%
1-2 Yrs.		266,528		256,228		10,300			12.6	%		13.0	%
2-5 Yrs.		863,485		806,368		57,117			40.8	%		41.0	%
5-10 Yrs.		693,361		622,493		70,868			32.7	%		31.6	%
> 10 Yrs.		60,848		53,844		7,004			2.9	%		2.7	%
Total Fixed Income	$	2,117,751	$	1,968,786	$	148,965			100.0	%		100.0	%

Duration

Fixed Income portfolio duration		3.5	years


	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		123,911		10.1	%		AA		6,509		6.2	%
A		398,947		32.5	%		A		13,982		13.4	%
BBB		616,621		50.3	%		BBB		66,655		63.7	%
Below Investment Grade		85,662		7.0	%		Below Investment Grade		17,240		16.5	%
NA		679		0.1	%		NA		—		—
Total Corporate	$	1,226,170		100.0	%		Total Private	$	104,654		100.0	%



CMBS asset class:						Mortgage-Backed asset class:
Rating							Rating
AAA	$	116,900		84.3	%		AAA	$	247,307		90.4	%
AA		18,507		13.3	%		AA		3,168		1.2	%
A		1,201		0.9	%		A		1,383		0.5	%
BBB		1,288		0.9	%		BBB		5,067		1.9	%
Below Investment Grade		768		0.6	%		Below Investment Grade		16,620		6.1	%
NA		72		0.1	%		NA		—		—
Total CMBS	$	138,736		100.0	%		Total Mortgage-Backed	$	273,545		100.0	%



Asset-Backed asset class:						Treasury & Government asset classes:
Rating							Rating
AAA	$	61,944		83.6	%		AAA	$	60,843		47.6	%
AA		—		—			AA		37,085		29.0	%
A		1,358		1.8	%		A		20,567		16.1	%
BBB		2,000		2.7	%		BBB		9,226		7.2	%
Below Investment Grade		8,790		11.9	%		Below Investment Grade		—		—
NA		—		—			NA		—		—
Total Asset-Backed	$	74,093		100.0	%		Total Treasury & Government	$	127,722		100.0	%

Investment Portfolio - Mortgage Backed Vintage Analysis As of September 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		$	56,854	$	22,740	$	4,289	$	7,671	$	976	$	5,929	$	4,554	$	13,887	$	116,900
AA			8,249		10,258		—		—		—		—		—		—		18,507
A			1,001		—		200		—		—		—		—		—		1,201
BBB			1,288		—		—		—		—		—		—		—		1,288
BB			255		—		—		—		—		—		—		—		255
B			236		—		—		—		—		—		—		—		236
CCC and lower			295		53		—		—		—		—		—		—		349
	Total	$	68,179	$	33,051	$	4,489	$	7,671	$	976	$	5,929	$	4,554	$	13,887	$	138,736

		Net Unrealized Gain/(Loss) by Vintage
Current Rating:
AAA		$	1,727		$	688		$	671	$	542	$	21	$	561	$	27	$	214	$	4,450
AA			275			(238	)		—		—		—		—		—		—		37
A			(11	)		—			3		—		—		—		—		—		(8	)
BBB			(167	)		—			—		—		—		—		—		—		(167	)
BB			994			—			—		—		—		—		—		—		994
B			513			—			—		—		—		—		—		—		513
CCC and lower			205			—			—		—		—		—		—		—		205
	Total	$	3,535		$	450		$	675	$	542	$	21	$	561	$	27	$	214	$	6,024

Prime Residential Mortgage-Backed Securities			Amortized Cost by Vintage
Current Rating:
	AAA		$	116,989		$	22,684		$	23,161		$	38,391		$	25,150		$	240		$	5,522		$	13,923		$	246,060
	AA			3,168			—			—			—			—			—			—			—			3,168
	A			1,383			—			—			—			—			—			—			—			1,383
	BBB			—			5,067			—			—			—			—			—			—			5,067
	BB			705			3,364			—			—			—			—			—			—			4,068
	B			—			3,634			—			—			—			—			—			—			3,634
	CCC and lower			—			1,133			—			1,588			—			—			—			—			2,721
		Total	$	122,245		$	35,882		$	23,161		$	39,979		$	25,150		$	240		$	5,522		$	13,923		$	266,102
				46	%		13	%		9	%		15	%		9	%		0	%		2	%		5	%
			Net Unrealized Gain/(Loss) by Vintage
Current Rating:
	AAA		$	12,159		$	1,329		$	2,817		$	3,897		$	2,876		$	10		$	273		$	829		$	24,190
	AA			116			—			—			—			—			—			—			—			116
	A			(15	)		—			—			—			—			—			—			—			(15	)
	BBB			—			(247	)		—			—			—			—			—			—			(247	)
	BB			26			(163	)		—			—			—			—			—			—			(137	)
	B			—			(153	)		—			—			—			—			—			—			(153	)
	CCC and lower			—			(22	)		—			(1	)		—			—			—			—			(23	)
		Total	$	12,286		$	743		$	2,817		$	3,896		$	2,876		$	10		$	273		$	829		$	23,730

Alt-A Residential Mortgage-Backed Securities			Amortized Cost by Vintage
Current Rating:
	AAA		$	—		$	1,247		$	—		$	—		$	—		$	—		$	—		$	—		$	1,247
	AA			—			—			—			—			—			—			—			—			—
	A			—			—			—			—			—			—			—			—			—
	BBB			—			—			—			—			—			—			—			—			—
	BB			558			—			—			—			—			—			—			—			558
	B			—			3,063			—			—			—			—			—			—			3,063
	CCC and lower			2,323			253			—			—			—			—			—			—			2,576
		Total	$	2,881		$	4,562		$	—		$	—		$	—		$	—		$	—		$	—		$	7,443
				39	%		61	%		0	%		0	%		0	%		0	%		0	%		0	%
			Net Unrealized Gain/(Loss) by Vintage
Current Rating:
	AAA		$	—		$	40		$	—		$	—		$	—		$	—		$	—		$	—		$	40
	AA			—			—			—			—			—			—			—			—			—
	A			—			—			—			—			—			—			—			—			—
	BBB			—			—			—			—			—			—			—			—			—
	BB			26			—			—			—			—			—			—			—			26
	B			—			(50	)		—			—			—			—			—			—			(50	)
	CCC and lower			(5	)		(20	)		—			—			—			—			—			—			(25	)
		Total	$	21		$	(30	)	$	—		$	—		$	—		$	—		$	—		$	—		$	(9	)

14 of 16

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

																								YOY Q3
(Dollars in thousands)				Q1 2010			Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011			Q3 2011		$ Change			% Change
Net Investment Income by Source
	Bonds & notes		$	83,814		$	27,796		$	28,350		$	28,091		$	29,014		$	27,462		$	27,413		$	(937	)		-3.3	%
	Preferred and common stocks			1,239			164			189			231			188			165			170			(19	)		-10.1	%
	Deposit asset underlying 10% reinsurance treaty			—			1,551			624			(704	)		508			650			449			(175	)		-28.0	%
	Policy loans			336			341			326			362			347			306			441			115			35.3	%
	Cash & cash equivalents			283			85			103			73			70			65			63			(40	)		-38.8	%
	Other			—			55			—			—			(19	)		13			—			—		nm
		Total investment income		85,671			29,992			29,591			28,053			30,108			28,662			28,536			(1,056	)		-3.6	%
	Investment expenses			3,095			2,001			1,737			1,365			1,482			1,433			1,433			(304	)		-17.5	%
		Net investment income	$	82,576		$	27,991		$	27,855		$	26,688		$	28,626		$	27,229		$	27,103		$	(752	)		-2.7	%
		Fixed income book yield, end of period		5.79	%		5.72	%		5.47	%		5.48	%		5.30	%		5.38	%		5.33	%	na			-14 bps
		New money yield		3.48	%		2.43	%		2.50	%		3.58	%		2.72	%		4.45	%		2.42	%	na			-8 bps

																								YOY Q3
				Q1 2010			Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011			Q3 2011		% Pt Change
Fixed Income Portfolio Quality Ratings
	Rating
	AAA			32.5	%		31.4	%		28.0	%		26.7	%		26.1	%		25.3	%		24.9	%		-3.1	%
	AA			7.9	%		6.9	%		8.0	%		9.1	%		9.5	%		9.8	%		9.9	%		2.0	%
	A			21.2	%		21.4	%		22.2	%		21.9	%		22.4	%		22.6	%		22.6	%		0.5	%
	BBB			30.8	%		32.4	%		34.8	%		35.6	%		35.8	%		35.9	%		35.9	%		1.1	%
	Below Investment Grade			7.1	%		7.8	%		6.9	%		6.7	%		6.2	%		6.3	%		6.6	%		-0.3	%
	NA			0.4	%		0.1	%		0.1	%		0.1	%		0.0	%		0.1	%		0.0	%		-0.1	%
		Total Fixed Income		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%	nm

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

			As of September 30, 2011										As of September 30, 2011
			Market Value			Amortized Cost			Credit Rating				Market Value		Amortized Cost
Top 25 Exposures											Foreign Exposure (1)

	1	Government of Canada	$	39,016		$	36,269		AAA		United Kingdom		$	64,351	$	60,241
	2	National Rural Utilities Cooperative		15,235			12,022			A+	Canada			59,593		55,046
	3	Verizon Communications Inc		13,210			11,490			A-	Australia			44,242		40,894
	4	Bank of America Corp		12,698			12,716			A	France			29,035		28,348
	5	General Electric Co		12,272			10,932		AA+		Germany			26,356		25,334
	6	ProLogis Inc		12,067			11,743		BBB-		Spain			20,807		21,564
	7	ConocoPhillips		10,746			9,063			A	Italy			14,617		15,254
	8	AT&T Inc		10,063			8,797			A-	Emerging Markets (2)			41,511		39,022
	9	Enel SpA		10,049			10,543			A-	All Other			83,920		77,826
	10	Edison International		10,010			9,981			B+		Total	$	384,433	$	363,529	OK
	11	Banco Santander SA		9,970			9,973		AA
	12	Iberdrola SA		9,629			8,468		BBB+		Government Investments
	13	Time Warner Cable Inc		9,567			9,075		BBB
	14	Reynolds American Inc		9,545			7,947		BBB-		AAA		$	—	$	—
	15	Xstrata PLC		9,460			9,226		BBB+		AA			2,870		2,572
	16	Diageo PLC		9,238			8,592			A-	A			13,246		12,559
	17	Province of Quebec Canada		9,122			7,660			A+	BBB			10,041		9,226
	18	Altria Group Inc		9,004			7,400		BBB		Below Investment Grade			—		—
	19	Health Care REIT Inc		8,957			9,133		BBB-		NA			—		—
	20	Province of Ontario Canada		8,413			6,746		AA-			Total	$	26,157	$	24,358
	21	Roche Holding AG		8,029			6,558		AA-
	22	PNC Financial Services Group I		7,830			8,284			A-	Non-Government Investments
	23	Vale SA		7,651			7,122		BBB+
	24	Lockheed Martin Corp		7,611			6,946			A-	AAA		$	—	$	—
	25	Montpelier Re Holdings Ltd		7,560			7,207		BBB		AA			61,318		58,934
		Total	$	276,953		$	253,895				A			130,925		124,259
											BBB			144,053		134,764
		% of total fixed income portfolio		12.1	%		11.9	%			Below Investment Grade			19,584		20,192
											NA			2,396		1,022
												Total	$	358,275	$	339,172	OK

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			Q3 2011


Recruits		204,316			220,950			235,125			221,920			231,390			58,085			65,245			58,178			49,882			52,813			65,138			83,074


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			90,519
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			10,334
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	)		(8,883	)
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			91,970


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			65,067


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		$	18,885


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		$	663,617
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			18,885
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	)		(16,221
Foreign currency impact, net		90			9,963			(13,891	)		10,873			3,158			2,464			(2,146	)		826			2,013			2,244			843			(98	)
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		$	666,182


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		$	50.1
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			11.5
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		$	61.7


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		$	1,060.0

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		$	34,192

16 of 16



	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

(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

NAIC Designations

1	$	1,005,706	56.3	%
2		676,608	37.9	%
3		76,365	4.3	%
4		22,140	1.2	%
5		4,053	0.2	%
6		2,307	0.1	%
U.S. Insurer Fixed Income (2)		1,787,178	100.0	%
Other (3)		200,003
Cash and cash equivalents		154,027
Total Invested Assets	$	2,141,208

(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).

(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.

(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.

(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

(Dollars in thousands)
Investment Portfolio Quality Ratings (1)
	Amortized Cost		% of Total
Total Fixed Income portfolio:
Rating
AAA	$	489,560		24.9	%
AA		194,975		9.9	%
A		445,430		22.6	%
BBB		707,322		35.9	%
Below Investment Grade		130,576		6.6	%
NA		922		0.0	%
Total Fixed Income	$	1,968,786		100.0	%

(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

(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

Supplemental Financial Information
Third Quarter 2011