Preface, definition of Non-GAAP financial measures

Balance sheets and reconciliation of balance sheet Non-GAAP to GAAP financial measures

Financial results and other statistical data

Statements of income

Reconciliation of statement of income Non-GAAP to GAAP financial measures

Segment operating results

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

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

Investment portfolio

Five-year historical key statistics

Operating adjustments exclude the impact of realized investment gains and losses, the expense associated with equity awards granted in connection with our initial public offering (“IPO”), and other items believed by management not to be indicative of ongoing operations, including amounts related to agreements to recover ceded premium payments not previously passed through to our reinsurers. For periods ending on or before March 31, 2010, operating adjustments reflect the impact of our reinsurance and reorganization activities as if they had occurred at the beginning of the respective calendar year.

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

Term Life Insurance: increase in insurance expenses of $4.0 million primarily related to premium taxes;

Investment and Savings Products: increase in commissions and fees revenues of $11.6 million with a corresponding increase in sales commission expense of $6.8 million both primarily related to 12b-1 commissions; and

Corporate and Other Distributed Products: increase in commissions and fees revenues of $0.4 million.

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.

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 8, 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 through March 31, 2010. 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.

(Dollars in thousands)

Balance Sheets

Assets:

Investments and cash

Due from reinsurers

Deferred policy acquisition costs

Income taxes

Other assets (1)

Separate account assets

Total assets

Liabilities:

Future policy benefits

Other policy liabilities

Income taxes

Other liabilities

Note payable

Payable under securities lending (1)

Separate account liabilities

Total liabilities

Stockholders’ equity:

Common stock (2)

Paid-in capital

Retained earnings

Treasury stock

Accumulated other comprehensive income (loss), net:

Net unrealized investment gains (losses) not other-than-temporarily impaired

Net unrealized investment losses other-than-temporarily impaired

Cumulative translation adjustment

Total stockholders’ equity

Total liabilities and stockholders equity

Reconciliation of Adjusted Stockholders’ Equity to Total Stockholders’ Equity

Adjusted stockholders’ equity

Reconciling items:

Net unrealized investment gains (losses) not other-than-temporarily impaired

Net unrealized investment losses other-than-temporarily impaired

Total reconciling items

Total stockholders’ equity

Deferred Policy Acquisition Costs Rollforward

Balance, beginning of period

General expenses deferred

Commission costs deferred

Amortization of deferred policy acquisition costs

Transferred to reinsurers

Foreign currency impact and other, net

Balance, end of period

(Dollars in thousands, except per-share data)

Earnings per Share

Basic earnings per share:

Weighted average common shares and fully vested equity awards

Net income

Less income attributable to unvested participating securities

Net income used in computing basic EPS

Basic earnings per share

Net operating income

Less operating income attributable to unvested participating securities

Net operating income used in computing basic operating EPS

Basic net operating income per share

Diluted earnings per share:

Weighted average common shares and fully vested equity awards

Diluted impact of warrants

Shares used to calculate diluted EPS

Net income

Less income attributable to unvested participating securities

Net income used in computing diluted EPS

Diluted earnings per share

Net operating income

Less operating income attributable to unvested participating securities

Net operating income used in computing diluted operating EPS

Diluted net operating income per share

Annualized Return on Equity

Average stockholders’ equity

Average adjusted stockholders’ equity

Net income return on stockholders’ equity

Net income return on adjusted stockholders’ equity

Net operating income return on adjusted stockholders’ equity

Capital Structure

Debt-to-capital (1)

Cash and invested assets to stockholders’ equity

Cash and invested assets to adjusted stockholders’ equity

Share count, end of period (2)

Adjusted stockholders’ equity per share

Financial Strength Ratings

Primerica Life Insurance Company:

S&P

A.M. Best

Fitch

(Dollars in thousands)

Statement of Income

Revenues:

Direct premiums

Ceded premiums

Net premiums

Net investment income

Commissions and fees:

Sales-based (1)

Asset-based (2)