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 GAAP to non-GAAP financial measures

7-8

Segment operating results  

Term Life Insurance segment - financial results, key statistics, and financial analysis  

9-10

Investment and Savings Products segment - financial results, financial analysis, and key statistics  

11-12

Senior Health segment - financial results, financial analysis, and key statistics

13

Corporate & Other Distributed Products segment - financial results

14

Investment portfolio  

15-17

Five-year historical key statistics  

18

Preface

PRIMERICA, INC.

Financial Supplement

•

Operating adjustments exclude the impact of investment gains/losses, including credit impairments, mark-to-market (MTM) investment adjustments, loss on the extinguishment of debt, transaction-related expenses/recoveries associated with the purchase of 80% of e-TeleQuote Insurance, Inc. and subsidiaries (collectively, “e-TeleQuote”), adjustments to share-based compensation expense for shares exchanged in the business combination, and non-cash goodwill impairment charges.  We exclude investment gains/losses, including credit impairments, and MTM investment adjustments in measuring adjusted operating revenues to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains and losses and other factors prior to an invested asset's maturity or sale that are not directly associated the Company's insurance operations.  We exclude the loss on the extinguishment of debt, e-TeleQuote transaction-related expenses/recoveries, and non-cash goodwill impairment charges in our non-GAAP financial measures as such expenses are non-recurring items that will cause incomparability between period-over-period results.  We exclude adjustments to share-based compensation expense for shares exchanged in the business combination to eliminate period-over-period fluctuations that may obscure comparisons of operating results primarily due to the volatility of changes in the fair value of shares prior to the dates they can ultimately be redeemed. Adjusted operating income before income taxes and adjusted net operating income exclude income attributable to the noncontrolling interest to present only the income that is attributable to stockholders of the Company.

•

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

•

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

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

PRIMERICA, INC.

Financial Supplement

(Dollars in thousands)

Dec 31,

2020

Mar 31,

2021

Jun 30,

2021

Sep 30,

2021

Dec 31,

2021

Mar 31,

2022

Jun 30,

2022

Condensed Balance Sheets

Assets:

Investments and cash excluding securities held to maturity

$

3,096,703

$

3,133,860

$

3,431,825

$

3,056,395

$

3,277,830

$

3,191,154

$

3,048,974

Securities held to maturity

1,346,350

1,362,210

1,368,740

1,376,090

1,379,100

1,390,310

1,415,940

Total investments and cash

4,443,053

4,496,070

4,800,565

4,432,485

4,656,930

4,581,464

4,464,914

Due from reinsurers

4,273,904

4,345,483

4,239,510

4,278,322

4,268,419

4,240,481

4,069,039

Deferred policy acquisition costs

2,629,644

2,712,169

2,808,347

2,877,921

2,943,782

2,994,367

3,028,511

Goodwill

—

—

—

224,180

179,154

179,154

187,707

Other assets

899,165

921,236

925,621

1,330,620

1,274,946

1,242,457

1,219,847

Separate account assets

2,659,520

2,638,901

2,745,827

2,672,606

2,799,992

2,696,891

2,358,987

Total assets

$

14,905,286

$

15,113,858

$

15,519,871

$

15,816,135

$

16,123,222

$

15,934,813

$

15,329,005

Liabilities:

Future policy benefits

$

6,790,557

$

6,885,115

$

6,984,272

$

7,057,599

$

7,138,649

$

7,216,597

$

7,276,278

Other policy liabilities

984,612

1,020,349

977,373

1,054,925

1,103,642

1,108,047

999,789

Income taxes

223,496

235,233

204,197

260,264

241,311

217,326

164,971

Other liabilities

618,874

633,719

641,025

668,643

669,631

683,865

646,660

Debt obligations

374,415

374,511

499,606

514,702

607,102

598,303

592,504

Surplus note

1,345,772

1,361,648

1,368,194

1,375,559

1,378,585

1,389,811

1,415,457

Payable under securities lending

72,154

87,190

80,613

105,264

94,529

93,171

96,603

Separate account liabilities

2,659,520

2,638,901

2,745,827

2,672,606

2,799,992

2,696,891

2,358,987

Total liabilities

13,069,401

13,236,666

13,501,107

13,709,563

14,033,442

14,004,011

13,551,249

Redeemable noncontrolling interest

$

—

$

—

$

—

$

7,631

$

7,271

$

4,616

$

2,233

Stockholders’ equity:

Common stock ($0.01 par value) (1)

393

394

394

395

394

388

378

Paid-in capital

(0

)

8,138

12,880

17,454

5,224

(0

)

(0

)

Retained earnings

1,705,786

1,785,037

1,894,539

1,988,324

2,004,506

1,980,467

1,948,244

Treasury stock

—

—

—

—

—

—

—

Accumulated other comprehensive income (loss), net:

Net unrealized gains (losses)

128,128

77,053

96,990

84,701

63,775

(66,439

)

(175,746

)

Cumulative translation adjustment

1,578

6,570

13,960

8,068

8,611

11,769

2,648

Total stockholders’ equity (2)

1,835,885

1,877,192

2,018,764

2,098,941

2,082,510

1,926,185

1,775,524

Total liabilities and stockholders' equity

$

14,905,286

$

15,113,858

$

15,519,871

$

15,816,135

$

16,123,222

$

15,934,813

$

15,329,005

Reconciliation of Total Stockholders' Equity to Adjusted Stockholders' Equity

Total stockholders' equity

$

1,835,885

$

1,877,192

$

2,018,764

$

2,098,941

$

2,082,510

$

1,926,185

$

1,775,524

Less: Net unrealized gains (losses)

128,128

77,053

96,990

84,701

63,775

(66,439

)

(175,746

)

Adjusted stockholders’ equity

$

1,707,757

$

1,800,139

$

1,921,774

$

2,014,241

$

2,018,735

$

1,992,624

$

1,951,270

Adjusted Stockholders' Equity Rollforward

Balance, beginning of period

$

1,614,688

$

1,707,757

$

1,800,139

$

1,921,774

$

2,014,241

$

2,018,735

$

1,992,624

Net Income attributable to Primerica, Inc.

100,084

97,872

128,162

112,456

34,868

81,418

107,947

Shareholder dividends

(15,851

)

(18,620

)

(18,660

)

(18,671

)

(18,686

)

(21,645

)

(21,178

)

Retirement of shares and warrants

(13,426

)

(5,966

)

(521

)

(88

)

(18,829

)

(103,862

)

(127,963

)

Net foreign currency translation adjustment

16,398

4,992

7,390

(5,892

)

543

3,158

(9,121

)

Other, net

5,864

14,105

5,264

4,662

6,597

14,820

8,961

Balance, end of period

$

1,707,757

$

1,800,139

$

1,921,774

$

2,014,241

$

2,018,735

$

1,992,624

$

1,951,270

Deferred Policy Acquisition Costs Rollforward

Balance, beginning of period

$

2,532,409

$

2,629,644

$

2,712,169

$

2,808,347

$

2,877,921

$

2,943,782

$

2,994,367

General expenses deferred

9,510

10,558

10,055

9,248

9,062

9,519

9,321

Commission costs deferred

128,084

134,188

136,085

129,287

124,515

123,739

119,794

Amortization of deferred policy acquisition costs

(53,342

)

(66,105

)

(54,286

)

(62,214

)

(68,575

)

(86,063

)

(85,379

)

Foreign currency impact and other, net

12,984

3,884

4,324

(6,748

)

858

3,390

(9,593

)

Balance, end of period

$

2,629,644

$

2,712,169

$

2,808,347

$

2,877,921

$

2,943,782

$

2,994,367

$

3,028,511

(1)

Outstanding common shares exclude restricted stock units.

(2)

Reflects the company's permanent stockholders' equity and does not include temporary stockholders' equity

Financial Results and Other Statistical Data

PRIMERICA, INC.

Financial Supplement

YOY Q2

YOY YTD

(Dollars in thousands, except per-share data)

Q1

2021

Q2

2021

Q3

2021

Q4

2021

Q1

2022

Q2

2022

$/#

Change

%

Change

YTD

2021

YTD

2022

$/#

Change

%

Change

Earnings per Share

Basic earnings per share:

Weighted-average common shares and fully vested equity awards

39,455,948

39,530,691

39,560,786

39,568,470

39,221,003

38,385,520

(1,145,171

)

-2.9

%

39,493,526

38,800,954

(692,572

)

-1.8%

Net income attributable to Primerica, Inc.

$

97,872

$

128,162

$

112,456

$

34,868

$

81,418

$

107,947

$

(20,214

)

-15.8

%

$

226,033

$

189,365

$

(36,668

)

-16.2%

Less income attributable to unvested participating securities

(417

)

(525

)

(458

)

(141

)

(337

)

(477

)

48

9.1

%

(945

)

(811

)

134

14.2%

Net income used in computing basic EPS

$

97,455

$

127,636

$

111,997

$

34,728

$

81,081

$

107,470

$

(20,167

)

-15.8

%

$

225,089

$

188,554

$

(36,534

)

-16.2%

Basic earnings per share

$

2.47

$

3.23

$

2.83

$

0.88

$

2.07

$

2.80

$

(0.43

)

-13.3

%

$

5.70

$

4.86

$

(0.84

)

-14.7%

Adjusted net operating income

$

97,129

$

129,355

$

118,708

$

117,007

$

83,333

$

110,701

$

(18,654

)

-14.4

%

$

226,485

$

194,034

$

(32,451

)

-14.3%

Less operating income attributable to unvested participating securities

(414

)

(530

)

(484

)

(472

)

(345

)

(490

)

41

7.7

%

(947

)

(831

)

116

12.2%

Adjusted net operating income used in computing basic operating EPS

$

96,715

$

128,825

$

118,224

$

116,535

$

82,988

$

110,212

$

(18,614

)

-14.4

%

$

225,538

$

193,203

$

(32,335

)

-14.3%

Basic adjusted operating income per share

$

2.45

$

3.26

$

2.99

$

2.95

$

2.12

$

2.87

$

(0.39

)

-11.9

%

$

5.71

$

4.98

$

(0.73

)

-12.8%

Diluted earnings per share:

Weighted-average common shares and fully vested equity awards

39,455,948

39,530,691

39,560,786

39,568,470

39,221,003

38,385,520

(1,145,171

)

-2.9

%

39,493,526

38,800,954

(692,572

)

-1.8%

Dilutive impact of contingently issuable shares

124,505

121,595

117,923

122,929

110,941

115,058

(6,537

)

-5.4

%

123,050

113,000

(10,050

)

-8.2%

Shares used to calculate diluted EPS

39,580,453

39,652,286

39,678,709

39,691,399

39,331,944

38,500,578

(1,151,708

)

-2.9

%

39,616,576

38,913,954

(702,622

)

-1.8%

Net income attributable to Primerica, Inc.

$

97,872

$

128,162

$

112,456

$

34,868

$

81,418

$

107,947

$

(20,214

)

-15.8

%

$

226,033

$

189,365

$

(36,668

)

-16.2%

Less income attributable to unvested participating securities

(416

)

(524

)

(457

)

(140

)

(337

)

(476

)

48

9.1

%

(942

)

(809

)

133

14.1%

Net income used in computing diluted EPS

$

97,456

$

127,638

$

111,998

$

34,728

$

81,081

$

107,471

$

(20,167

)

-15.8

%

$

225,091

$

188,556

$

(36,535

)

-16.2%

Diluted earnings per share

$

2.46

$

3.22

$

2.82

$

0.87

$

2.06

$

2.79

$

(0.43

)

-13.3

%

$

5.68

$

4.85

$

(0.84

)

-14.7%

Adjusted net operating income

$

97,129

$

129,355

$

118,708

$

117,007

$

83,333

$

110,701

$

(18,654

)

-14.4

%

$

226,485

$

194,034

$

(32,451

)

-14.3%

Less operating income attributable to unvested participating securities

(413

)

(529

)

(483

)

(471

)

(344

)

(488

)

40

7.6

%

(944

)

(829

)

115

12.2%

Adjusted net operating income used in computing diluted operating EPS

$

96,717

$

128,827

$

118,225

$

116,536

$

82,988

$

110,213

$

(18,614

)

-14.4

%

$

225,541

$

193,205

$

(32,336

)

-14.3%

Diluted adjusted operating income per share

$

2.44

$

3.25

$

2.98

$

2.94

$

2.11

$

2.86

$

(0.39

)

-11.9

%

$

5.69

$

4.96

$

(0.73

)

-12.8%

YOY Q2

YOY YTD

Q1

2021

Q2

2021

Q3

2021

Q4

2021

Q1

2022

Q2

2022

$/#

Change

%

Change

YTD

2021

YTD

2022

$/#

Change

%

Change

Annualized Return on Equity

Average stockholders' equity (1)

$

1,856,539

$

1,947,978

$

2,058,852

$

2,090,726

$

2,004,348

$

1,850,855

$

(97,123

)

-5.0

%

$

1,902,258

$

1,927,601

$

25,343

1.3

%

Average adjusted stockholders' equity  (1)

$

1,753,948

$

1,860,956

$

1,968,007

$

2,016,488

$

2,005,679

$

1,971,947

$

110,991

6.0

%

$

1,807,452

$

1,988,813

$

181,361

10.0

%

Net income attributable to Primerica, Inc. return on stockholders' equity

21.1

%

26.3

%

21.8

%

6.7

%

16.2

%

23.3

%

-3.0

%

nm

11.9

%

19.6

%

7.8

%

nm

Net income attributable to Primerica, Inc. return on adjusted stockholders' equity

22.3

%

27.5

%

22.9

%

6.9

%

16.2

%

21.9

%

-5.7

%

nm

11.9

%

19.6

%

7.8

%

nm

Adjusted net operating income return on adjusted stockholders' equity

22.2

%

27.8

%

24.1

%

23.2

%

16.6

%

22.5

%

-5.3

%

nm

12.5

%

19.5

%

7.0

%

nm

Capital Structure

Debt-to-capital (2)

16.6

%

19.8

%

19.7

%

22.6

%

23.7

%

25.0

%

5.2

%

nm

19.8

%

25.0

%

5.2

%

nm

Debt-to-capital, excluding AOCI (2)

17.3

%

20.8

%

20.4

%

23.2

%

23.2

%

23.3

%

2.6

%

nm

20.8

%

23.3

%

2.6

%

nm

Cash and invested assets to stockholders' equity

2.4

x

2.4

x

2.1

x

2.2

x

2.4

x

2.5

x

0.1

x

nm

2.4

x

2.5

x

0.1

x

nm

Cash and invested assets to adjusted stockholders' equity

2.5

x

2.5

x

2.2

x

2.3

x

2.3

x

2.3

x

(0.2

x)

nm

2.5

x

2.3

x

(0.2

x)

nm

Share count, end of period (3)

39,414,085

39,443,561

39,470,748

39,367,754

38,751,885

37,768,052

(1,675,509

)

-4.2

%

39,443,561

37,768,052

(1,675,509

)

-4.2

%

Adjusted stockholders' equity per share

$

45.67

$

48.72

$

51.03

$

51.28

$

51.42

$

51.66

$

2.94

6.0

%

$

48.72

$

51.66

$

2.94

6.0

%

Financial Strength Ratings - Primerica Life Insurance Co

Moody's

A1

A1

A1

A1

A1

A1

nm

nm

nm

nm

nm

nm

S&P

AA-

AA-

AA-

AA-

AA-

AA-

nm

nm

nm

nm

nm

nm

A.M. Best

A+

A+

A+

A+

A+

A+

nm

nm

nm

nm

nm

nm

Holding Company Senior Debt Ratings

Moody's

Baa1

Baa1

Baa1

Baa1

Baa1

Baa1

nm

nm

nm

nm

nm

nm

S&P

A-

A-

A-

A-

A-

A-

nm

nm

nm

nm

nm

nm

A.M. Best

a-

a-

a-

a-

a-

a-

nm

nm

nm

nm

nm

nm

(1)

Reflects the company's permanent stockholders' equity and does not include temporary stockholders' equity

(2)

Debt-to-capital is that of the parent company only.  Capital in the debt-to-capital ratio includes stockholders' equity and the note payable.

(3)

Share count reflects outstanding common shares, but excludes restricted stock units (RSUs).

Statements of Income

PRIMERICA, INC.

Financial Supplement

YOY Q2

YOY YTD

(Dollars in thousands)

Q1

2021

Q2

2021

Q3

2021

Q4

2021

Q1

2022

Q2

2022

$

Change

%

Change

YTD

2021

YTD

2022

$

Change

%

Change

Statement of Income

Revenues:

Direct premiums

$

762,227

$

780,299

$

785,277

$

794,344

$

798,666

$

808,894

$

28,594

3.7

%

$

1,542,526

$

1,607,560

$

65,033

4.2

%

Ceded premiums

(395,973

)

(413,850

)

(401,295

)

(405,147

)

(399,885

)

(419,048

)

(5,198

)

-1.3

%

(809,822

)

(818,933

)

(9,111

)

-1.1

%

Net premiums

366,254

366,450

383,983

389,197

398,781

389,846