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

Attached files

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8-K - PRIMERICA, INC. 8-K - Primerica, Inc.	a50742352.htm
EX-99.1 - EXHIBIT 99.1 - Primerica, Inc.	a50742352ex99-1.htm

Exhibit 99.2

Supplemental Financial Information

Third Quarter 2013

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	12-14

Five-year historical key statistics	15

This document may contain forward-looking statements and information. Additional information and factors that could cause actual results to differ materially from any forward-looking statements or information in this document is available in our Form 10-K for the year ended December 31, 2012.

2 of 15

Preface

PRIMERICA, INC.

Financial Supplement

THIRD QUARTER 2013

This document is a financial supplement to our third quarter 2013 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.

●

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.

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

3 of 15

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

PRIMERICA, INC.

Financial Supplement

(Dollars in thousands)	Dec 31, 2011			Mar 31, 2012			Jun 30, 2012			Sep 30, 2012			Dec 31, 2012			Mar 31, 2013			Jun 30, 2013			Sep 30, 2013
Condensed Balance Sheets
Assets:
Investments and cash	$	2,157,582		$	2,167,231		$	2,016,842		$	2,176,721		$	2,068,752		$	2,115,144		$	1,876,077		$	1,909,560
Due from reinsurers		3,855,318			3,895,162			3,903,028			3,993,603			4,005,194			4,005,539			3,993,258			4,033,138
Deferred policy acquisition costs		904,485			948,087			990,558			1,036,020			1,066,422			1,098,124			1,133,542			1,179,143
Other assets		525,836			522,123			540,010			597,465			579,393			599,840			566,809			564,953
Separate account assets		2,408,598			2,541,313			2,500,640			2,630,630			2,618,115			2,614,669			2,435,740			2,512,886
Total assets	$	9,851,820		$	10,073,917		$	9,951,077		$	10,434,439		$	10,337,877		$	10,433,316		$	10,005,426		$	10,199,680

Liabilities:
Future policy benefits	$	4,614,860		$	4,676,374		$	4,723,359		$	4,797,815		$	4,850,488		$	4,898,538		$	4,943,743		$	5,022,048
Other policy liabilities		589,542			606,793			593,956			595,382			606,310			614,892			584,587			587,646
Income taxes		81,316			88,503			82,755			96,408			114,611			122,925			89,713			101,708
Other liabilities		381,495			331,112			329,539			424,706			358,577			366,670			344,649			329,567
Notes payable		300,000			300,000			300,000			374,421			374,433			374,445			374,457			374,469
Payable under securities lending		149,358			142,507			143,963			177,666			139,927			133,325			86,272			75,852
Separate account liabilities		2,408,598			2,541,313			2,500,640			2,630,630			2,618,115			2,614,669			2,435,740			2,512,886
Total liabilities		8,525,169			8,686,602			8,674,211			9,097,028			9,062,461			9,125,463			8,859,162			9,004,174
Stockholders’ equity:
Common stock ($0.01 par value) (1)		649			653			599			597			564			567			545			547
Paid-in capital		835,232			842,613			693,717			691,885			602,269			609,100			456,050			464,784
Retained earnings		344,104			383,847			426,936			468,223			503,173			535,609			572,714			609,778
Treasury stock		—			—			—			—			—			—			—			—
Accumulated other comprehensive income (loss), net:
Net unrealized investment gains (losses) not other-than-temporarily impaired		97,082			107,598			107,187			119,836			114,958			112,263			74,845			72,773
Net unrealized investment losses other-than-temporarily impaired		(1,665	)		(1,981	)		(2,031	)		(1,364	)		(1,035	)		(1,045	)		(1,047	)		(1,047	)
Cumulative translation adjustment		51,248			54,584			50,457			58,234			55,488			51,358			43,158			48,672
Total stockholders’ equity		1,326,650			1,387,314			1,276,866			1,337,411			1,275,416			1,307,853			1,146,265			1,195,505
Total liabilities and stockholders' equity	$	9,851,820		$	10,073,917		$	9,951,077		$	10,434,439		$	10,337,877		$	10,433,316		$	10,005,426		$	10,199,680

Reconciliation of Adjusted Stockholders' Equity to Total Stockholders' Equity
Adjusted stockholders' equity	$	1,231,233		$	1,281,697		$	1,171,709		$	1,218,939		$	1,161,494		$	1,196,634		$	1,072,467		$	1,123,780
Reconciling items:
Net unrealized investment gains (losses) not other-than-temporarily impaired		97,082			107,598			107,187			119,836			114,958			112,263			74,845			72,773
Net unrealized investment losses other-than-temporarily impaired		(1,665	)		(1,981	)		(2,031	)		(1,364	)		(1,035	)		(1,045	)		(1,047	)		(1,047	)
Total reconciling items		95,417			105,617			105,156			118,472			113,923			111,219			73,797			71,726
Total stockholders’ equity	$	1,326,650		$	1,387,314		$	1,276,866		$	1,337,411		$	1,275,416		$	1,307,853		$	1,146,265		$	1,195,505

Deferred Policy Acquisition Costs Rollforward
Balance, beginning of period	$	864,623		$	904,485		$	948,087		$	990,558		$	1,036,020		$	1,066,422		$	1,098,124		$	1,133,542
General expenses deferred		7,754			7,003			7,492			7,234			6,869			6,631			8,669			7,399
Commission costs deferred		58,793			60,116			66,540			61,238			60,349			60,048			63,835			65,535
Amortization of deferred policy acquisition costs		(30,185	)		(26,531	)		(28,205	)		(29,234	)		(34,628	)		(31,252	)		(30,111	)		(32,192	)
Foreign currency impact and other, net		3,501			3,015			(3,356	)		6,223			(2,187	)		(3,726	)		(6,974	)		4,860
Balance, end of period	$	904,485		$	948,087		$	990,558		$	1,036,020		$	1,066,422		$	1,098,124		$	1,133,542		$	1,179,143

(1)	Outstanding common shares exclude restricted stock units.

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Financial Results and Other Statistical Data

PRIMERICA, INC.

Financial Supplement

																						YOY Q3										YOY YTD
(Dollars in thousands, except per-share data)	Q1 2012			Q2 2012			Q3 2012			Q4 2012			Q1 2013			Q2 2013			Q3 2013			Change			% Change	YTD 2012			YTD 2013			$ Change			% Change
Earnings per Share
Basic earnings per share:
Weighted-average common shares and fully vested equity awards		65,133,035			61,530,879			60,059,741			57,415,577			56,598,327			56,510,785			54,957,274			(5,102,467	)	-8.5%		62,241,218			56,019,271			(6,221,947	)	-10.0	%

Net income	$	41,756		$	46,179		$	45,600		$	40,270		$	38,845		$	43,490		$	43,190		$	(2,410	)	-5.3%	$	133,535		$	125,525		$	(8,010	)	-6.0	%
Less income attributable to unvested participating securities		(1,357	)		(1,110	)		(1,116	)		(1,026	)		(1,017	)		(553	)		(556	)		560		50.2%		(3,625	)		(2,173	)		1,451		40.0	%
Net income used in computing basic EPS	$	40,400		$	45,069		$	44,483		$	39,244		$	37,828		$	42,938		$	42,633		$	(1,850	)	-4.2%	$	129,911		$	123,352		$	(6,559	)	-5.0	%
Basic earnings per share	$	0.62		$	0.73		$	0.74		$	0.68		$	0.67		$	0.76		$	0.78		$	0.04		4.7%	$	2.09		$	2.20		$	0.11		5.5	%

Net operating income	$	42,377		$	45,455		$	45,103		$	41,603		$	39,317		$	41,367		$	43,454		$	(1,649	)	-3.7%	$	132,935		$	124,137		$	(8,798	)	-6.6	%
Less operating income attributable to unvested participating securities		(1,377	)		(1,093	)		(1,104	)		(1,061	)		(1,030	)		(525	)		(560	)		544		49.3%		(3,608	)		(2,149	)		1,459		40.4	%
Net operating income used in computing basic operating EPS	$	41,000		$	44,362		$	43,999		$	40,542		$	38,287		$	40,841		$	42,894		$	(1,105	)	-2.5%	$	129,327		$	121,988		$	(7,339	)	-5.7	%
Basic operating income per share	$	0.63		$	0.72		$	0.73		$	0.71		$	0.68		$	0.72		$	0.78		$	0.05		6.5%	$	2.08		$	2.18		$	0.10		4.8	%

Diluted earnings per share:
Weighted-average common shares and fully vested equity awards		65,133,035			61,530,879			60,059,741			57,415,577			56,598,327			56,510,785			54,957,274			(5,102,467	)	-8.5%		62,241,218			56,019,271			(6,221,947	)	-10.0	%
Dilutive impact of warrants and options		1,141,687			1,155,701			1,502,853			1,519,844			1,809,066			1,338,164			1,187			(1,501,666	)	-99.9%		1,277,698			1,049,472			(228,226	)	-17.9	%
Shares used to calculate diluted EPS		66,274,722			62,686,580			61,562,594			58,935,421			58,407,393			57,848,949			54,958,461			(6,604,133	)	-10.7%		63,518,916			57,068,743			(6,450,173	)	-10.2	%

Net income	$	41,756		$	46,179		$	45,600		$	40,270		$	38,845		$	43,490		$	43,190		$	(2,410	)	-5.3%	$	133,535		$	125,525		$	(8,010	)	-6.0	%
Less income attributable to unvested participating securities		(1,335	)		(1,092	)		(1,092	)		(1,004	)		(991	)		(542	)		(556	)		536		49.1%		(3,559	)		(2,140	)		1,419		39.9	%
Net income used in computing diluted EPS	$	40,421		$	45,088		$	44,507		$	39,266		$	37,854		$	42,948		$	42,633		$	(1,874	)	-4.2%	$	129,977		$	123,385		$	(6,592	)	-5.1	%
Diluted earnings per share	$	0.61		$	0.72		$	0.72		$	0.67		$	0.65		$	0.74		$	0.78		$	0.05		7.3%	$	2.05		$	2.16		$	0.12		5.7	%

Net operating income	$	42,377		$	45,455		$	45,103		$	41,603		$	39,317		$	41,367		$	43,454		$	(1,649	)	-3.7%	$	132,935		$	124,137		$	(8,798	)	-6.6	%
Less operating income attributable to unvested participating securities		(1,355	)		(1,074	)		(1,080	)		(1,037	)		(1,003	)		(515	)		(560	)		521		48.2%		(3,542	)		(2,116	)		1,427		40.3	%
Net operating income used in computing diluted operating EPS	$	41,022		$	44,381		$	44,023		$	40,566		$	38,313		$	40,851		$	42,894		$	(1,129	)	-2.6%	$	129,392		$	122,021		$	(7,371	)	-5.7	%
Diluted operating income per share	$	0.62		$	0.71		$	0.72		$	0.69		$	0.66		$	0.71		$	0.78		$	0.07		9.1%	$	2.04		$	2.14		$	0.10		5.0	%

															YOY Q3									YOY YTD
	Q1 2012		Q2 2012		Q3 2012		Q4 2012		Q1 2013		Q2 2013		Q3 2013			Change			% Change	YTD 2012		YTD 2013			$ Change			% Change
Annualized Return on Equity
Average stockholders' equity	$	1,356,982	$	1,332,090	$	1,307,138	$	1,306,413	$	1,291,635	$	1,227,059	$	1,170,885		$	(136,253	)	-10.4%	$	1,332,070	$	1,229,859		$	(102,211	)	-7.7%
Average adjusted stockholders' equity	$	1,256,465	$	1,226,703	$	1,195,324	$	1,190,216	$	1,179,064	$	1,134,551	$	1,098,123		$	(97,201	)	-8.1%	$	1,226,164	$	1,137,246		$	(88,918	)	-7.3%

Net income return on stockholders' equity		12.3%		13.9%		14.0%		12.3%		12.0%		14.2%		14.8%			0.8%		nm		13.4%		13.6%			0.2%		nm
Net income return on adjusted stockholders' equity		13.3%		15.1%		15.3%		13.5%		13.2%		15.3%		15.7%			0.5%		nm		14.5%		14.7%			0.2%		nm

Net operating income return on adjusted stockholders' equity		13.5%		14.8%		15.1%		14.0%		13.3%		14.6%		15.8%			0.7%		nm		14.5%		14.6%			0.1%		nm

Capital Structure
Debt-to-capital (1)		17.8%		19.0%		21.9%		22.7%		22.3%		24.6%		23.9%			2.0%		nm		21.9%		23.9%			2.0%		nm

Cash and invested assets to stockholders' equity		1.6x		1.6x		1.6x		1.6x		1.6x		1.6x		1.6x			(0.0x)		nm		1.6x		1.6x			(0.0x)		nm
Cash and invested assets to adjusted stockholders' equity		1.7x		1.7x		1.8x		1.8x		1.8x		1.7x		1.7x			(0.1x)		nm		1.8x		1.7x			(0.1x)		nm

Share count, end of period (2)		65,303,547		59,868,486		59,722,559		56,373,795		56,682,195		54,503,822		54,686,613			(5,035,946	)	-8.4%		59,722,559		54,686,613			(5,035,946	)	-8.4%
Adjusted stockholders' equity per share	$	19.63	$	19.57	$	20.41	$	20.60	$	21.11	$	19.68	$	20.55		$	0.14		0.7%	$	20.41	$	20.55		$	0.14		0.7%

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

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

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Statements of Income

PRIMERICA, INC.

Financial Supplement

																						YOY Q3										YOY YTD
(Dollars in thousands)	Q1 2012			Q2 2012			Q3 2012			Q4 2012			Q1 2013			Q2 2013			Q3 2013			$ Change			% Change	YTD 2012			YTD 2013			$ Change			% Change
Statement of Income
Revenues:
Direct premiums	$	561,037		$	570,073		$	567,273		$	569,591		$	570,899		$	577,208		$	576,095		$	8,822		1.6%	$	1,698,383		$	1,724,202		$	25,819		1.5%
Ceded premiums		(418,163	)		(415,814	)		(414,992	)		(414,783	)		(410,604	)		(417,450	)		(407,489	)		7,503		1.8%		(1,248,969	)		(1,235,543	)		13,427		1.1%
Net premiums		142,874			154,259			152,282			154,808			160,295			159,758			168,607			16,325		10.7%		449,414			488,659			39,245		8.7%
Net investment income		26,097			23,605			26,882			24,221			23,216			21,027			22,103			(4,779	)	-17.8%		76,583			66,345			(10,238	)	-13.4%
Commissions and fees:
Sales-based (1)		44,823			47,614			43,390			50,439			49,718			52,164			51,991			8,601		19.8%		135,827			153,872			18,045		13.3%
Asset-based (2)		43,722			43,751			45,627			46,626			47,428			49,436			50,981			5,354		11.7%		133,099			147,845			14,745		11.1%
Account-based (3)		9,373			9,494			9,826			9,817			9,454			9,589			9,813			(13	)	-0.1%		28,693			28,856			163		0.6%
Other commissions and fees		6,343			6,248			5,764			6,188			5,674			5,994			5,658			(105	)	-1.8%		18,355			17,326			(1,029	)	-5.6%
Realized investment (losses) gains		2,132			4,320			3,872			1,058			2,286			3,468			(407	)		(4,279	)	-110.5%		10,324			5,347			(4,977	)	-48.2%
Other, net		11,238			11,235			11,445			11,345			10,375			10,871			10,712			(733	)	-6.4%		33,918			31,958			(1,960	)	-5.8%
Total revenues		286,601			300,525			299,087			304,501			308,445			312,307			319,457			20,369		6.8%		886,214			940,208			53,995		6.1%
Benefits and expenses:
Benefits and claims		67,933			68,925			70,738			71,151			74,246			69,770			81,912			11,174		15.8%		207,596			225,927			18,332		8.8%
Amortization of DAC		26,531			28,205			29,234			34,628			31,252			30,111			32,192			2,959		10.1%		83,970			93,556			9,586		11.4%
Insurance commissions		8,496			6,457			6,684			5,916			6,066			5,424			5,329			(1,356	)	-20.3%		21,638			16,818			(4,820	)	-22.3%
Insurance expenses		22,444			24,589			23,744			25,764			27,142			28,094			25,083			1,339		5.6%		70,777			80,319			9,542		13.5%
Sales commissions:
Sales-based (1)		31,600			33,285			30,521			34,508			35,403			36,730			36,296			5,775		18.9%		95,406			108,430			13,024		13.7%
Asset-based (2)		14,745			15,031			15,557			16,157			16,637			17,778			18,775			3,218		20.7%		45,334			53,191			7,857		17.3%
Other sales commissions		3,371			3,159			3,292			3,342			3,007			3,129			3,316			24		0.7%		9,823			9,453			(369	)	-3.8%
Interest expense		6,910			8,505			8,829			8,857			8,795			8,792			8,726			(102	)	-1.2%		24,244			26,314			2,069		8.5%
Other operating expenses		41,104			40,447			39,933			43,233			45,664			45,031			41,273			1,340		3.4%		121,484			131,968			10,484		8.6%
Total benefits and expenses		223,135			228,605			228,532			243,555			248,213			244,860			252,903			24,371		10.7%		680,272			745,976			65,705		9.7%
Income before income taxes		63,466			71,921			70,556			60,946			60,232			67,446			66,554			(4,002	)	-5.7%		205,942			194,232			(11,710	)	-5.7%
Income taxes		21,709			25,741			24,956			20,675			21,387			23,956			23,364			(1,592	)	-6.4%		72,407			68,707			(3,700	)	-5.1%
Net income	$	41,756		$	46,179		$	45,600		$	40,270		$	38,845		$	43,490		$	43,190		$	(2,410	)	-5.3%	$	133,535		$	125,525		$	(8,010	)	-6.0%

Income Before Income Taxes by Segment
Term Life	$	43,254		$	51,148		$	47,593		$	43,931		$	45,125		$	51,898		$	50,136		$	2,543		5.3%	$	141,995		$	147,159		$	5,163		3.6%
Investment & Savings Products		28,869			29,444			31,608			31,194			26,353			27,488			31,498			(109	)	-0.3%		89,922			85,339			(4,583	)	-5.1%
Corporate & Other Distributed Products		(8,658	)		(8,672	)		(8,645	)		(14,179	)		(11,246	)		(11,940	)		(15,080	)		(6,435	)	-74.4%		(25,975	)		(38,266	)		(12,291	)	-47.3%
Income before income taxes	$	63,466		$	71,921		$	70,556		$	60,946		$	60,232		$	67,446		$	66,554		$	(4,002	)	-5.7%	$	205,942		$	194,232		$	(11,710	)	-5.7%

(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

6 of 15

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

PRIMERICA, INC.

Financial Supplement

																						YOY Q3											YOY YTD
		Q1 2012			Q2 2012			Q3 2012			Q4 2012			Q1 2013			Q2 2013			Q3 2013		$ Change			% Change		YTD 2012			YTD 2013			$ Change			% Change
(Dollars in thousands)		Q1 2012			Q2 2012			Q3 2012			Q4 2012			Q1 2013			Q2 2013			Q3 2013		$ Change			% Change		YTD 2012			YTD 2013			$ Change			% Change
Reconciliation from Operating Revenues to Total Revenues
Operating revenues	$	284,469		$	296,206		$	295,215		$	303,443		$	306,159		$	308,839		$	319,864		$	24,649			8.3%	$	875,890		$	934,862		$	58,972			6.7%
Operating revenues reconciling items:
Realized investment gains/losses		2,132			4,320			3,872			1,058			2,286			3,468			(407	)	nm			nm			10,324			5,347		nm			nm
Total operating revenues reconciling items		2,132			4,320			3,872			1,058			2,286			3,468			(407	)	nm			nm			10,324			5,347		nm			nm
Total revenues	$	286,601		$	300,525		$	299,087		$	304,501		$	308,445		$	312,307		$	319,457		$	20,369			6.8%	$	886,214		$	940,208		$	53,995			6.1%


Reconciliation from Operating Income Before Income Taxes to Income Before Income Taxes
Operating income before income taxes	$	64,409		$	70,793		$	69,787		$	62,962		$	60,964		$	64,153		$	66,961		$	(2,827	)		-4.1%	$	204,989		$	192,077		$	(12,912	)		-6.3%
Operating income before income taxes reconciling items:
Realized investment gains/losses		2,132			4,320			3,872			1,058			2,286			3,468			(407	)	nm			nm			10,324			5,347		nm			nm
Initial & accelerated management / field grant expense		(3,075	)		(3,192	)		(3,104	)		(3,074	)		(3,018	)		(174	)		—		nm			nm			(9,371	)		(3,192	)	nm			nm
Total operating income before income taxes reconciling items		(943	)		1,128			768			(2,016	)		(731	)		3,293			(407	)	nm			nm			953			2,155		nm			nm
Income before income taxes	$	63,466		$	71,921		$	70,556		$	60,946		$	60,232		$	67,446		$	66,554		$	(4,002	)		-5.7%	$	205,942		$	194,232		$	(11,710	)		-5.7%


Reconciliation from Net Operating Income to Net Income
Net operating income	$	42,377		$	45,455		$	45,103		$	41,603		$	39,317		$	41,367		$	43,454		$	(1,649	)		-3.7%	$	132,935		$	124,137		$	(8,798	)		-6.6%
Net operating income reconciling items:
Operating income before income taxes reconciling items		(943	)		1,128			768			(2,016	)		(731	)		3,293			(407	)	nm			nm			953			2,155		nm			nm
Tax impact of operating income reconciling items at effective tax rate		323			(404	)		(272	)		684			260			(1,170	)		143		nm			nm			(353	)		(767	)	nm			nm
Total net operating income reconciling items		(621	)		724			497			(1,332	)		(472	)		2,123			(264	)	nm			nm			600			1,388		nm			nm
Net income	$	41,756		$	46,179		$	45,600		$	40,270		$	38,845		$	43,490		$	43,190		$	(2,410	)		-5.3%	$	133,535		$	125,525		$	(8,010	)		-6.0%

7 of 15

Segment Operating Results

PRIMERICA, INC.

Financial Supplement

																						YOY Q3												YOY YTD
(Dollars in thousands)		Q1 2012			Q2 2012			Q3 2012			Q4 2012			Q1 2013			Q2 2013			Q3 2013		$ Change			% Change			YTD 2012			YTD 2013			$ Change			% Change
Term Life Insurance
Revenues:
Direct premiums	$	542,157		$	550,329		$	549,069		$	551,725		$	552,034		$	559,035		$	557,486		$	8,417			1.5	%	$	1,641,555		$	1,668,555		$	27,000			1.6	%
Ceded premiums		(414,559	)		(412,038	)		(411,240	)		(411,786	)		(407,854	)		(414,222	)		(404,459	)		6,781			1.6	%		(1,237,837	)		(1,226,535	)		11,302			0.9	%
Net premiums		127,598			138,292			137,829			139,939			144,180			144,813			153,027			15,198			11.0	%		403,718			442,020			38,302			9.5	%
Allocated net investment income		15,630			16,112			17,411			16,967			16,670			16,935			17,385			(26	)		-0.1	%		49,152			50,989			1,837			3.7	%
Other, net		7,547			7,753			7,788			7,268			6,984			7,435			7,399			(389	)		-5.0	%		23,089			21,818			(1,271	)		-5.5	%
Operating revenues		150,775			162,157			163,028			164,174			167,833			169,183			177,811			14,783			9.1	%		475,960			514,828			38,868			8.2	%
Benefits and expenses:
Benefits and claims		57,509			59,984			60,733			61,120			65,547			61,689			67,788			7,054			11.6	%		178,226			195,023			16,796			9.4	%
Amortization of DAC		23,933			22,547			27,645			30,147			27,865			25,777			29,679			2,034			7.4	%		74,125			83,320			9,195			12.4	%
Insurance commissions		3,577			2,314			2,168			1,539			1,199			1,062			901			(1,267	)		-58.4	%		8,060			3,162			(4,897	)		-60.8	%
Insurance expenses		19,717			21,782			20,532			23,125			23,846			24,508			25,125			4,593			22.4	%		62,030			73,478			11,448			18.5	%
Interest expense		2,785			4,380			4,357			4,313			4,252			4,250			4,183			(174	)		-4.0	%		11,523			12,685			1,162			10.1	%
Operating benefits and expenses		107,521			111,008			115,435			120,244			122,708			117,285			127,676			12,241			10.6	%		333,964			367,669			33,705			10.1	%
Operating income before income taxes	$	43,254		$	51,148		$	47,593		$	43,931		$	45,125		$	51,898		$	50,136		$	2,543			5.3	%	$	141,995		$	147,159		$	5,163			3.6	%

Investment & Savings Products
Revenues:
Commissions and fees:
Sales-based	$	44,823		$	47,614		$	43,390		$	50,439		$	49,718		$	52,164		$	51,991		$	8,601			19.8	%	$	135,827		$	153,872		$	18,045			13.3	%
Asset-based		43,722			43,751			45,627			46,626			47,428			49,436			50,981			5,354			11.7	%		133,099			147,845			14,745			11.1	%
Account-based		9,373			9,494			9,826			9,817			9,454			9,589			9,813			(13	)		-0.1	%		28,693			28,856			163			0.6	%
Other, net		2,216			2,108			2,320			2,820			2,122			2,172			1,939			(382	)		-16.4	%		6,644			6,233			(412	)		-6.2	%
Operating revenues		100,133			102,967			101,163			109,701			108,721			113,361			114,723			13,560			13.4	%		304,264			336,805			32,541			10.7	%
Benefits and expenses:
Amortization of DAC		3,223			2,881			1,411			3,442			2,892			3,876			2,542			1,132			80.2	%		7,514			9,310			1,796			23.9	%
Insurance commissions		2,149			2,252			2,323			2,347			2,274			2,331			2,249			(74	)		-3.2	%		6,723			6,853			130			1.9	%
Sales commissions:
Sales-based		31,600			33,285			30,521			34,508			35,403			36,730			36,296			5,775			18.9	%		95,406			108,430			13,024			13.7	%
Asset-based		14,745			15,031			15,557			16,157			16,637			17,778			18,775			3,218			20.7	%		45,334			53,191			7,857			17.3	%
Other operating expenses		19,547			20,074			19,744			22,052			25,162			25,159			23,362			3,618			18.3	%		59,365			73,683			14,318			24.1	%
Operating benefits and expenses		71,264			73,523			69,556			78,506			82,368			85,874			83,224			13,669			19.7	%		214,342			251,466			37,124			17.3	%
Operating income before income taxes	$	28,869		$	29,444		$	31,608		$	31,194		$	26,353		$	27,488		$	31,498		$	(109	)		-0.3	%	$	89,922		$	85,339		$	(4,583	)		-5.1	%

Corporate & Other Distributed Products
Revenues:
Direct premiums	$	18,880		$	19,744		$	18,204		$	17,866		$	18,865		$	18,173		$	18,609		$	405			2.2	%	$	56,828		$	55,647		$	(1,181	)		-2.1	%
Ceded premiums		(3,604	)		(3,777	)		(3,752	)		(2,998	)		(2,750	)		(3,229	)		(3,030	)		722			19.3	%		(11,133	)		(9,008	)		2,125			19.1	%
Net premiums		15,276			15,967			14,453			14,869			16,115			14,944			15,580			1,127			7.8	%		45,695			46,639			944			2.1	%
Allocated net investment income		10,467			7,493			9,471			7,254			6,546			4,092			4,718			(4,753	)		-50.2	%		27,431			15,356			(12,075	)		-44.0	%
Commissions and fees:
Loans		913			627			438			400			293			406			264			(174	)		-39.7	%		1,978			963			(1,015	)		-51.3	%
DebtWatchers		717			648			609			548			491			462			482			(127	)		-20.9	%		1,974			1,435			(539	)	nm
Prepaid Legal Services		2,289			2,266			2,364			2,318			2,254			2,255			2,396			32			1.4	%		6,918			6,905			(13	)		-0.2	%
Auto and Homeowners Insurance		1,689			1,836			1,271			1,791			1,685			1,890			1,470			199			15.6	%		4,797			5,046			249			5.2	%
Long-Term Care Insurance		724			650			746			765			627			664			704			(42	)		-5.6	%		2,120			1,996			(124	)		-5.9	%
Other sales commissions		12			222			334			367			323			316			342			7			2.2	%		568			981			413			72.8	%
Other, net		1,475			1,373			1,337			1,257			1,270			1,264			1,374			37			2.8	%		4,185			3,907			(277	)		-6.6	%
Operating revenues		33,561			31,082			31,024			29,568			29,604			26,295			27,330			(3,694	)		-11.9	%		95,666			83,229			(12,438	)		-13.0	%
Benefits and expenses:
Benefits and claims		10,424			8,941			10,004			10,031			8,699			8,081			14,124			4,120			41.2	%		29,370			30,905			1,535			5.2	%
Amortization of DAC		(625	)		2,778			178			1,040			496			459			(29	)		(207	)		-116.1	%		2,331			926			(1,405	)		-60.3	%
Insurance commissions		2,770			1,891			2,194			2,031			2,592			2,031			2,179			(15	)		-0.7	%		6,855			6,803			(53	)		-0.8	%
Insurance expenses		2,727			2,807			3,213			2,638			3,296			3,587			(42	)		(3,255	)		-101.3	%		8,747			6,841			(1,905	)		-21.8	%
Sales commissions		3,371			3,159			3,292			3,342			3,007			3,129			3,316			24			0.7	%		9,823			9,453			(369	)		-3.8	%
Interest expense		4,125			4,125			4,472			4,544			4,543			4,543			4,543			71			1.6	%		12,722			13,629			907			7.1	%
Other operating expenses		18,482			17,181			17,085			18,106			17,484			19,698			17,911			826			4.8	%		52,748			55,093			2,345			4.4	%
Operating benefits and expenses		41,275			40,882			40,437			41,731			40,119			41,528			42,003			1,566			3.9	%		122,594			123,649			1,055			0.9	%
Operating income before income taxes	$	(7,715	)	$	(9,800	)	$	(9,413	)	$	(12,163	)	$	(10,514	)	$	(15,233	)	$	(14,673	)	$	(5,260	)		-55.9	%	$	(26,928	)	$	(40,421	)	$	(13,493	)		-50.1	%

8 of 15

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 2012			Q2 2012			Q3 2012			Q4 2012			Q1 2013			Q2 2013			Q3 2013		$ Change			% Change			YTD 2012			YTD 2013			$ Change			% Change
Revenues:
Direct premiums	$	542,157		$	550,329		$	549,069		$	551,725		$	552,034		$	559,035		$	557,486		$	8,417			1.5	%	$	1,641,555		$	1,668,555		$	27,000			1.6	%
Ceded premiums		(414,559	)		(412,038	)		(411,240	)		(411,786	)		(407,854	)		(414,222	)		(404,459	)		6,781			1.6	%		(1,237,837	)		(1,226,535	)		11,302			0.9	%
Net premiums		127,598			138,292			137,829			139,939			144,180			144,813			153,027			15,198			11.0	%		403,718			442,020			38,302			9.5	%
Allocated net investment income		15,630			16,112			17,411			16,967			16,670			16,935			17,385			(26	)		-0.1	%		49,152			50,989			1,837			3.7	%
Other, net		7,547			7,753			7,788			7,268			6,984			7,435			7,399			(389	)		-5.0	%		23,089			21,818			(1,271	)		-5.5	%
Operating revenues		150,775			162,157			163,028			164,174			167,833			169,183			177,811			14,783			9.1	%		475,960			514,828			38,868			8.2	%
Benefits and expenses:
Benefits and claims		57,509			59,984			60,733			61,120			65,547			61,689			67,788			7,054			11.6	%		178,226			195,023			16,796			9.4	%
Amortization of DAC		23,933			22,547			27,645			30,147			27,865			25,777			29,679			2,034			7.4	%		74,125			83,320			9,195			12.4	%
Insurance commissions		3,577			2,314			2,168			1,539			1,199			1,062			901			(1,267	)		-58.4	%		8,060			3,162			(4,897	)		-60.8	%
Insurance expenses		19,717			21,782			20,532			23,125			23,846			24,508			25,125			4,593			22.4	%		62,030			73,478			11,448			18.5	%
Interest expense		2,785			4,380			4,357			4,313			4,252			4,250			4,183			(174	)		-4.0	%		11,523			12,685			1,162			10.1	%
Operating benefits and expenses		107,521			111,008			115,435			120,244			122,708			117,285			127,676			12,241			10.6	%		333,964			367,669			33,705			10.1	%
Operating income before income taxes	$	43,254		$	51,148		$	47,593		$	43,931		$	45,125		$	51,898		$	50,136		$	2,543			5.3	%	$	141,995		$	147,159		$	5,163			3.6	%

New Term Life Insurance Operating Income Before Income Taxes (1)
Revenues:
Direct premiums	$	79,146		$	88,860		$	94,133		$	99,458		$	106,077		$	114,407		$	119,852		$	25,720			27.3	%	$	262,138		$	340,336		$	78,198			29.8	%
Ceded premiums		(13,012	)		(14,450	)		(13,333	)		(14,041	)		(18,577	)		(20,927	)		(18,937	)		(5,604	)		-42.0	%		(40,794	)		(58,441	)		(17,647	)		-43.3	%
Net premiums		66,134			74,410			80,800			85,417			87,501			93,479			100,915			20,115			24.9	%		221,344			281,895			60,551			27.4	%
Allocated net investment income		1,302			2,431			2,997			3,387			3,513			3,941			4,438			1,441			48.1	%		6,730			11,892			5,162			76.7	%
Other, net		7,501			7,671			7,778			7,243			6,957			7,366			7,304			(475	)		-6.1	%		22,950			21,626			(1,324	)		-5.8	%
Operating revenues		74,938			84,512			91,575			96,047			97,971			104,786			112,657			21,082			23.0	%		251,024			315,413			64,388			25.7	%
Benefits and expenses:
Benefits and claims		25,056			26,667			31,057			32,460			32,124			33,764			39,105			8,048			25.9	%		82,780			104,993			22,213			26.8	%
Amortization of DAC		14,674			12,117			17,199			20,033			17,759			17,091			20,417			3,218			18.7	%		43,989			55,267			11,278			25.6	%
Insurance commissions		3,364			1,965			1,806			1,177			829			659			469			(1,337	)		-74.0	%		7,136			1,957			(5,179	)		-72.6	%
Insurance expenses		28,133			29,911			29,043			31,271			31,613			32,550			33,040			3,997			13.8	%		87,087			97,203			10,116			11.6	%
Interest expense		—			266			303			334			361			403			422			119			39.4	%		569			1,185			616			108.4	%
Operating benefits and expenses		71,227			70,927			79,407			85,275			82,686			84,466			93,453			14,046			17.7	%		221,561			260,606			39,045			17.6	%
Operating income before income taxes	$	3,711		$	13,585		$	12,167		$	10,772		$	15,284		$	20,320		$	19,203		$	7,036			57.8	%	$	29,464		$	54,807		$	25,343			86.0	%

Legacy Term Life Insurance Operating Income Before Income Taxes (2)
Revenues:
Direct premiums	$	463,011		$	461,470		$	454,936		$	452,267		$	445,957		$	444,628		$	437,634		$	(17,303	)		-3.8	%	$	1,379,417		$	1,328,219		$	(51,198	)		-3.7	%
Ceded premiums		(401,548	)		(397,588	)		(397,907	)		(397,745	)		(389,277	)		(393,294	)		(385,522	)		12,385			3.1	%		(1,197,043	)		(1,168,093	)		28,949			2.4	%
Net premiums		61,464			63,882			57,029			54,522			56,679			51,334			52,112			(4,917	)		-8.6	%		182,374			160,125			(22,249	)		-12.2	%
Allocated net investment income		14,328			13,681			14,414			13,580			13,156			12,994			12,947			(1,467	)		-10.2	%		42,422			39,098			(3,325	)		-7.8	%
Other, net		46			82			10			25			27			70			96			86		nm				139			192			53			38.6	%
Operating revenues		75,837			77,645			71,453			68,128			69,863			64,397			65,155			(6,299	)		-8.8	%		224,935			199,415			(25,520	)		-11.3	%
Benefits and expenses:
Benefits and claims		32,453			33,317			29,676			28,660			33,422			27,925			28,683			(994	)		-3.3	%		95,446			90,030			(5,417	)		-5.7	%
Amortization of DAC		9,259			10,430			10,446			10,114			10,105			8,686			9,262			(1,184	)		-11.3	%		30,136			28,053			(2,083	)		-6.9	%
Insurance commissions		213			349			362			362			371			404			432			70			19.3	%		924			1,206			282			30.5	%
Insurance expenses		9,162			9,164			8,557			8,682			9,128			8,598			8,490			(67	)		-0.8	%		26,884			26,216			(668	)		-2.5	%
Insurance expense allowance		(17,579	)		(17,293	)		(17,068	)		(16,827	)		(16,896	)		(16,640	)		(16,405	)		664			3.9	%		(51,940	)		(49,940	)		2,000			3.8	%
Interest expense		2,785			4,114			4,054			3,979			3,892			3,847			3,761			(293	)		-7.2	%		10,954			11,500			546			5.0	%
Operating benefits and expenses		36,294			40,082			36,028			34,969			40,022			32,819			34,223			(1,805	)		-5.0	%		112,404			107,064			(5,340	)		-4.8	%
Operating income before income taxes	$	39,543		$	37,563		$	35,425		$	33,159		$	29,841		$	31,578		$	30,932		$	(4,493	)		-12.7	%	$	112,531		$	92,351		$	(20,180	)		-17.9	%

(1) Represents results associated with business written subsequent to the 2010 Citi reinsurance transactions.

(2) Represents results associated with business subject to the 2010 Citi reinsurance transactions.

9 of 15

Term Life Insurance - Key Statistics and Financial Analysis

PRIMERICA, INC.

Financial Supplement

																						YOY Q3											YOY YTD
(Dollars in thousands, except as noted)		Q1 2012			Q2 2012			Q3 2012			Q4 2012			Q1 2013			Q2 2013			Q3 2013		$ Change			% Change		YTD 2012			YTD 2013			$ Change			% Change
Key Statistics
Life-insurance licensed sales force, beginning of period		91,176			89,651			90,868			91,506			92,373			90,917			92,227			1,359		1.5	%		91,176			92,373			1,197		1.3	%
New life-licensed representatives		7,650			9,786			8,613			8,376			7,165			8,875			9,630			1,017		11.8	%		26,049			25,670			(379	)	-1.5	%
Non-renewal and terminated representatives		(9,175	)		(8,569	)		(7,975	)		(7,509	)		(8,621	)		(7,565	)		(7,328	)		647		8.1	%		(25,719	)		(23,514	)		2,205		8.6	%
Life-insurance licensed sales force, end of period	(6)	89,651			90,868			91,506			92,373			90,917			92,227			94,529			3,023		3.3	%		91,506			94,529			3,023		3.3	%

Estimated annualized issued term life premium ($mills) (1):
Premium from new policies	$	44.7		$	47.8		$	41.8		$	41.7		$	40.2		$	45.9		$	43.9		$	2.1		5.0	%	$	134.4		$	130.0		$	(4.4	)	-3.3	%
Additions and increases in premium		10.7			11.4			11.6			11.8			11.4			12.3			12.3			0.7		6.0	%		33.7			36.0			2.4		7.0	%
Total estimated annualized issued term life premium	$	55.4		$	59.2		$	53.4		$	53.5		$	51.6		$	58.2		$	56.2		$	2.8		5.2	%	$	168.1		$	166.0		$	(2.0	)	-1.2	%

Issued term life policies		56,145			60,583			53,506			52,324			50,356			57,622			53,997			491		0.9	%		170,234			161,975			(8,259	)	-4.9	%
Estimated average annualized issued term life premium per policy (1)(2)	$	797		$	790		$	782		$	796		$	799		$	797		$	813		$	31		4.0	%	$	790		$	803		$	13		1.7	%

Term life face amount in-force, beginning of period ($mills)	$	664,955		$	664,423		$	668,024		$	669,132		$	670,412		$	670,414		$	674,355		$	6,331		0.9	%	$	664,955		$	670,412		$	5,457		0.8	%
Issued term life face amount (3)		16,983			18,307			16,345			16,418			15,709			17,798			17,056			711		4.3	%		51,635			50,563			(1,072	)	-2.1	%
Terminated term life face amount		(16,307	)		(14,322	)		(15,566	)		(15,398	)		(14,917	)		(13,139	)		(14,346	)		1,220		7.8	%		(46,196	)		(42,402	)		3,794		8.2	%
Foreign currency impact, net		(1,208	)		(384	)		329			260			(790	)		(719	)		(704	)		(1,033	)	nm			(1,263	)		(2,213	)		(950	)	nm
Term life face amount in-force, end of period	$	664,423		$	668,024		$	669,132		$	670,412		$	670,414		$	674,355		$	676,360		$	7,229		1.1	%	$	669,132		$	676,360		$	7,229		1.1	%


New Term Life Insurance - Financial Analysis
Direct premium	$	79,146		$	88,860		$	94,133		$	99,458		$	106,077		$	114,407		$	119,852			25,720		27.3	%	$	262,138		$	340,336		$	78,198		29.8	%

New term life operating income before income taxes	$	3,711		$	13,585		$	12,167		$	10,772		$	15,284		$	20,320		$	19,203			7,036		57.8	%	$	29,464		$	54,807		$	25,343		86.0	%
% of direct premium		4.7	%		15.3	%		12.9	%		10.8	%		14.4	%		17.8	%		16.0	%	nm			nm			11.2	%		16.1	%	nm			nm

Benefits & expenses, net (4)	$	56,105		$	55,199		$	63,395		$	67,710		$	69,289		$	72,441		$	78,929			15,534		24.5	%	$	174,699		$	220,659		$	45,959		26.3	%
% of direct premium		70.9	%		62.1	%		67.3	%		68.1	%		65.3	%		63.3	%		65.9	%	nm			nm			66.6	%		64.8	%	nm			nm

Insurance expenses, net (5)	$	20,632		$	22,240		$	21,265		$	24,028		$	24,656		$	25,184		$	25,736			4,472		21.0	%	$	64,136		$	75,577		$	11,440		17.8	%
% of direct premium		26.1	%		25.0	%		22.6	%		24.2	%		23.2	%		22.0	%		21.5	%	nm			nm			24.5	%		22.2	%	nm			nm


Legacy Term Life Insurance - Financial Analysis
Direct premium	$	463,011		$	461,470		$	454,936		$	452,267		$	445,957		$	444,628		$	437,634			(17,303	)	-3.8	%	$	1,379,417		$	1,328,219		$	(51,198	)	-3.7	%

Legacy term life operating income before income taxes	$	39,543		$	37,563		$	35,425		$	33,159		$	29,841		$	31,578		$	30,932			(4,493	)	-12.7	%	$	112,531		$	92,351		$	(20,180	)	-17.9	%
% of direct premium		8.5	%		8.1	%		7.8	%		7.3	%		6.7	%		7.1	%		7.1	%	nm			nm			8.2	%		7.0	%	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
(6)	Reflects a change in methodology for terminating representatives that was implemented in the fourth quarter of 2011.

10 of 15

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 2012			Q2 2012			Q3 2012			Q4 2012			Q1 2013			Q2 2013			Q3 2013		$ Change			% Change			YTD 2012			YTD 2013			$ Change			% Change
Revenues:
Commissions and fees:
Sales-based	$	44,823		$	47,614		$	43,390		$	50,439		$	49,718		$	52,164		$	51,991		$	8,601			19.8	%	$	135,827		$	153,872		$	18,045			13.3	%
Asset-based		43,722			43,751			45,627			46,626			47,428			49,436			50,981			5,354			11.7	%		133,099			147,845			14,745			11.1	%
Account-based		9,373			9,494			9,826			9,817			9,454			9,589			9,813			(13	)		-0.1	%		28,693			28,856			163			0.6	%
Other, net		2,216			2,108			2,320			2,820			2,122			2,172			1,939			(382	)		-16.4	%		6,644			6,233			(412	)		-6.2	%
Operating revenues		100,133			102,967			101,163			109,701			108,721			113,361			114,723			13,560			13.4	%		304,264			336,805			32,541			10.7	%
Benefits and expenses:
Amortization of DAC		3,223			2,881			1,411			3,442			2,892			3,876			2,542			1,132			80.2	%		7,514			9,310			1,796			23.9	%
Insurance commissions		2,149			2,252			2,323			2,347			2,274			2,331			2,249			(74	)		-3.2	%		6,723			6,853			130			1.9	%
Sales commissions:
Sales-based		31,600			33,285			30,521			34,508			35,403			36,730			36,296			5,775			18.9	%		95,406			108,430			13,024			13.7	%
Asset-based		14,745			15,031			15,557			16,157			16,637			17,778			18,775			3,218			20.7	%		45,334			53,191			7,857			17.3	%
Other operating expenses		19,547			20,074			19,744			22,052			25,162			25,159			23,362			3,618			18.3	%		59,365			73,683			14,318			24.1	%
Operating benefits and expenses		71,264			73,523			69,556			78,506			82,368			85,874			83,224			13,669			19.7	%		214,342			251,466			37,124			17.3	%
Operating income before income taxes	$	28,869		$	29,444		$	31,608		$	31,194		$	26,353		$	27,488		$	31,498		$	(109	)		-0.3	%	$	89,922		$	85,339		$	(4,583	)		-5.1	%


Key Statistics
Product sales ($mills)
Retail Mutual Funds	$	611.9		$	589.6		$	545.7		$	598.5		$	711.9		$	722.7		$	648.2		$	102.5			18.8	%	$	1,747.2		$	2,082.8		$	335.5			19.2	%
Indexed Annuities		25.3			103.1			113.0			154.9			92.9			111.7			104.4			(8.5	)		-7.6	%		241.4			309.1			67.7			28.1	%
Variable Annuities and other		403.6			397.3			332.2			372.5			388.1			361.5			388.0			55.8			16.8	%		1,133.1			1,137.7			4.6			0.4	%
Total sales-based revenue generating product sales		1,040.8			1,090.0			990.9			1,126.0			1,193.0			1,195.9			1,140.6			149.8			15.1	%		3,121.7			3,529.5			407.9			13.1	%
Managed Accounts		23.1			39.6			37.3			35.8			56.7			57.5			57.1			19.8			53.2	%		100.0			171.3			71.3			71.3	%
Segregated Funds		123.7			64.3			63.5			77.3			115.6			64.3			51.0			(12.5	)		-19.7	%		251.6			230.9			(20.7	)		-8.2	%
Total product sales	$	1,187.7		$	1,193.9		$	1,091.7		$	1,239.0		$	1,365.3		$	1,317.7		$	1,248.7		$	157.1			14.4	%	$	3,473.2		$	3,931.7		$	458.5			13.2	%

Client asset values, beginning of period ($mills)	$	33,664		$	36,279		$	35,286		$	36,903		$	37,386		$	39,853		$	40,166		$	4,881			13.8	%	$	33,664		$	37,386		$	3,723			11.1	%
Inflows		1,188			1,194			1,092			1,239			1,365			1,318			1,249			157			14.4	%		3,473			3,932			458			13.2	%
Outflows (1)		(1,233	)		(1,144	)		(1,014	)		(1,052	)		(1,305	)		(1,188	)		(1,163	)		(149	)		-14.7	%		(3,391	)		(3,656	)		(265	)		-7.8	%
Net flows		(45	)		50			78			187			60			130			86			8		nm				83			276			193		nm
Change in market value, net and other (2)		2,660			(1,043	)		1,540			296			2,406			184			1,925			385		nm				3,157			4,514			1,357		nm
Client asset values, end of period	$	36,279		$	35,286		$	36,903		$	37,386		$	39,853		$	40,166		$	42,177		$	5,273			14.3	%	$	36,903		$	42,177		$	5,273			14.3	%

Average client asset values ($mills)
Retail Mutual Funds	$	23,694		$	23,724		$	23,750		$	24,198		$	25,170		$	26,041		$	26,478		$	2,728			11.5	%	$	23,723		$	25,896		$	2,174			9.2	%
Managed Accounts		212			326			425			528			652			786			882			458			107.8	%		321			774			453			141.1	%
Indexed Annuities		10			75			185			317			441			545			648			464		nm				90			545			455		nm
Variable Annuities and other		8,707			8,897			9,061			9,344			9,869			10,352			10,687			1,626			17.9	%		8,888			10,303			1,415			15.9	%
Segregated Funds		2,499			2,527			2,542			2,596			2,624			2,601			2,529			(13	)		-0.5	%		2,523			2,585			62			2.5	%
Total	$	35,122		$	35,550		$	35,962		$	36,983		$	38,756		$	40,326		$	41,225		$	5,262			14.6	%	$	35,545		$	40,102		$	4,558			12.8	%

Average number of fee-generating accounts (thous) (3)		2,584			2,583			2,552			2,547			2,536			2,522			2,537			(15	)		-0.6	%		2,573			2,532			(42	)		-1.6	%


Financial Analysis
Sales-based net revenue as % of sales (4)		1.27	%		1.31	%		1.30	%		1.41	%		1.20	%		1.29	%		1.38	%	nm			nm				1.29	%		1.29	%	nm			nm

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

Account-based revenue per average fee generating account (6)	$	3.63		$	3.67		$	3.85		$	3.85		$	3.73		$	3.80		$	3.87		nm			nm			$	11.15		$	11.40		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 8% 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 15

Investment Portfolio - Summary of Holdings

PRIMERICA, INC.

Financial Supplement



	As of or for the period ended September 30, 2013
									% 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	$	147,468		$	147,468	$	-			7.8	%		8.3	%

Fixed Income:
Treasury		30,707			29,313		1,395			1.6	%		1.7	%		2.89	%	AAA
Government		129,333			120,390		8,942			6.9	%		6.8	%		4.46	%	AA
Tax-Exempt Municipal		6,908			6,946		(39	)		0.4	%		0.4	%		3.39	%	AA-
Corporate		1,153,639			1,077,934		75,705			61.2	%		60.9	%		5.42	%	BBB+
Mortgage-Backed		138,496			128,120		10,376			7.4	%		7.2	%		5.43	%	AAA
Asset-Backed		27,777			28,036		(259	)		1.5	%		1.6	%		1.53	%	AA
CMBS		91,883			87,138		4,745			4.9	%		4.9	%		4.57	%	AAA
Private		111,757			106,050		5,708			5.9	%		6.0	%		5.44	%	BBB
Redeemable Preferred		1,671			1,948		(277	)		0.1	%		0.1	%		19.51	%	A-
Convertible		7,111			6,652		459			0.4	%		0.4	%		2.20	%	A
Total Fixed Income		1,699,282			1,592,527		106,755			90.2	%		89.9	%		5.19	%	A

Equities:
Perpetual Preferred		5,390			5,585		(195	)		0.3	%		0.3	%
Common Stock		22,153			17,654		4,499			1.2	%		1.0	%
Mutual Fund		5,403			3,542		1,861			0.3	%		0.2	%
Other		4,070			4,070		0			0.2	%		0.2	%
Total Equities		37,016			30,852		6,165			2.0	%		1.7	%

Total Invested Assets	$	1,883,766		$	1,770,847	$	112,920			100.0	%		100.0	%

Corporate Portfolio by Sector

Consumer Non Cyclical	$	136,820		$	124,997	$	11,823			11.9	%		11.6	%
Reits		110,380			104,783		5,597			9.6	%		9.7	%
Electric		108,153			97,110		11,043			9.4	%		9.0	%
Basic Industry		98,935			94,023		4,912			8.6	%		8.7	%
Banking		93,653			88,651		5,002			8.1	%		8.2	%
Energy		91,228			84,701		6,527			7.9	%		7.9	%
Insurance		88,457			81,447		7,010			7.7	%		7.6	%
Technology		70,999			69,046		1,953			6.2	%		6.4	%
Capital Goods		70,513			65,568		4,945			6.1	%		6.1	%
Communications		66,129			61,935		4,195			5.7	%		5.7	%
Natural Gas		61,255			57,215		4,040			5.3	%		5.3	%
Consumer Cyclical		51,584			48,753		2,831			4.5	%		4.5	%
Industrial Other		28,697			27,907		790			2.5	%		2.6	%
Finance Companies		24,376			22,518		1,858			2.1	%		2.1	%
Transportation		23,520			21,914		1,606			2.0	%		2.0	%
Brokerage		16,985			15,837		1,148			1.5	%		1.5	%
Financial Other		11,957			11,529		428			1.0	%		1.1	%
Total Corporate portfolio	$	1,153,639		$	1,077,934	$	75,705			100.0	%		100.0	%

Fixed-Maturity Securities - Effective Maturity


Effective maturity
< 1 Yr.	$	208,798		$	202,489	$	6,309			12.3	%		12.7	%		5.54	%
1-2 Yrs.		167,229			159,992		7,238			9.8	%		10.0	%		4.52	%
2-5 Yrs.		505,800			465,870		39,930			29.8	%		29.3	%		5.13	%
5-10 Yrs.		771,878			722,748		49,130			45.4	%		45.4	%		5.27	%
> 10 Yrs.		45,577			41,429		4,149			2.7	%		2.6	%		5.15	%
Total Fixed Income	$	1,699,282		$	1,592,527	$	106,755			100.0	%		100.0	%		5.19	%

Duration

Fixed Income portfolio duration		4.0	years

12 of 15

Investment Portfolio - Quality Ratings As of September 30, 2013

PRIMERICA, INC.

Financial Supplement




(Dollars in thousands)
Investment Portfolio Quality Ratings (1)
	Amortized Cost		% of Total
Total Fixed Income portfolio:
Rating
AAA	$	262,727		16.5	%
AA		127,798		8.0	%
A		371,723		23.3	%
BBB		743,265		46.7	%
Below Investment Grade		85,574		5.4	%
NA		1,439		0.1	%
Total Fixed Income	$	1,592,527		100.0	%




	Amortized Cost		% of Total					Amortized Cost		% of Total
Corporate asset class:						Private asset class:
Rating							Rating
AAA	$	1,075		0.1	%		AAA	$	172		0.2	%
AA		66,244		6.1	%		AA		4,295		4.0	%
A		303,414		28.1	%		A		12,103		11.4	%
BBB		632,109		58.6	%		BBB		84,249		79.4	%
Below Investment Grade		73,965		6.9	%		Below Investment Grade		5,230		4.9	%
NA		1,128		0.1	%		NA		—		—
Total Corporate	$	1,077,934		100.0	%		Total Private	$	106,050		100.0	%



CMBS asset class:						Mortgage-Backed asset class:
Rating							Rating
AAA	$	75,274		86.4	%		AAA	$	116,856		91.2	%
AA		2,746		3.2	%		AA		5,513		4.3	%
A		2,557		2.9	%		A		1,922		1.5	%
BBB		5,000		5.7	%		BBB		3,829		3.0	%
Below Investment Grade		1,559		1.8	%		Below Investment Grade		—		—
NA		2		0.0	%		NA		—		—
Total CMBS	$	87,138		100.0	%		Total Mortgage-Backed	$	128,120		100.0	%



Asset-Backed asset class:						Treasury & Government asset classes:
Rating							Rating
AAA	$	15,854		56.6	%		AAA	$	52,886		35.3	%
AA		1,468		5.2	%		AA		47,907		32.0	%
A		4,723		16.8	%		A		38,303		25.6	%
BBB		5,000		17.8	%		BBB		10,607		7.1	%
Below Investment Grade		990		3.5	%		Below Investment Grade		—		—
NA		—		—			NA		—		—
Total Asset-Backed	$	28,036		100.0	%		Total Treasury & Government	$	149,703		100.0	%



NAIC Designations

1	$	630,168		44.2	%
2		717,358		50.3	%
3		51,393		3.6	%
4		16,747		1.2	%
5		7,864		0.6	%
6		2,584		0.2	%
U.S. Insurer Fixed Income (2)		1,426,115		100.0	%
Other (3)		197,264
Cash and cash equivalents		147,468
Total Invested Assets	$	1,770,847

(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 15

Investment Portfolio- Supplemental Data and Trends

PRIMERICA, INC.

Financial Supplement


																						YOY Q3
(Dollars in thousands)		Q1 2012			Q2 2012			Q3 2012			Q4 2012			Q1 2013			Q2 2013			Q3 2013		$ Change			% Change
Net Investment Income by Source
Bonds & notes	$	25,762		$	23,797		$	26,601		$	24,360		$	23,210		$	22,648		$	21,785			(4,816	)		-18.1	%
Preferred and common stocks		223			244			245			339			272			292			277			32			13.1	%
Deposit asset underlying 10% reinsurance treaty		1,030			574			986			315			563			(1,061	)		829			(157	)		-15.9	%
Policy loans and other invested assets		350			261			315			325			320			327			325			10			3.2	%
Cash & cash equivalents		135			111			101			106			88			73			54			(47	)		-46.5	%
Total investment income		27,500			24,987			28,248			25,445			24,453			22,279			23,270			(4,978	)		-17.6	%
Investment expenses		1,403			1,382			1,367			1,224			1,237			1,252			1,167			(200	)		-14.6	%
Net investment income	$	26,097		$	23,605		$	26,881		$	24,221		$	23,216		$	21,027		$	22,103			(4,778	)		-17.8	%
Fixed income book yield, end of period		5.46	%		5.48	%		5.30	%		5.32	%		5.28	%		5.29	%		5.19	%		—			—
New money yield		2.69	%		3.46	%		2.64	%		2.94	%		2.75	%		2.91	%		3.78	%		—			—

																						YOY Q3
		Q1 2012			Q2 2012			Q3 2012			Q4 2012			Q1 2013			Q2 2013			Q3 2013		% Pt Change
Fixed Income Portfolio Quality Ratings
Rating
AAA		23.1	%		21.2	%		19.8	%		18.4	%		17.7	%		17.5	%		16.5	%		-3.3	%
AA		8.5	%		7.6	%		8.3	%		7.7	%		7.7	%		7.7	%		8.0	%		-0.3	%
A		23.3	%		23.4	%		23.7	%		23.4	%		23.6	%		22.9	%		23.3	%		-0.3	%
BBB		38.8	%		41.3	%		42.8	%		45.2	%		45.7	%		46.5	%		46.7	%		3.9	%
Below Investment Grade		6.3	%		6.4	%		5.2	%		5.1	%		5.3	%		5.3	%		5.4	%		0.2	%
NA		0.1	%		0.1	%		0.2	%		0.1	%		0.0	%		0.1	%		0.1	%		-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, 2013								As of September 30, 2013					As of September 30, 2013
			Market Value			Amortized Cost			Credit Rating		Market Value			Amortized Cost		Market Value		Amortized Cost
Top 25 Exposures										Foreign Exposure (1)					Government Investments (1)

	1	Canada	$	27,607		$	26,706		AAA	United Kingdom	$	66,001	$	62,419	AAA	$	747	$	750
	2	General Electric Co		26,327			23,495		AA-	Canada		39,670		37,496	AA		9,790		9,394
	3	International Business Machine		12,980			12,597		AA-	Australia		38,219		35,399	A		16,979		16,241
	4	Province of Ontario Canada		11,276			9,981		AA-	Brazil		21,886		21,001	BBB		11,273		10,607
	5	Iberdrola SA		10,515			9,457		BBB	France		18,851		18,085	Below Investment Grade		—		—
	6	National Rural Utilities Cooperative		10,305			7,691		A+	Ireland		15,246		13,745	NA		—		—
	7	Verizon Communications Inc		9,334			8,589		BBB+	Netherlands		14,558		14,095	Total	$	38,789	$	36,992
	8	Province of Quebec Canada		8,250			7,235		A+	Italy		12,279		11,977
	9	Vale SA		7,818			7,098		A-	Korea Republic Of		11,574		10,869
	10	Phillips 66		7,642			6,691		BBB	Germany		10,756		9,826	Non-Government Investments (1)
	11	ArcelorMittal		7,619			6,602		BB+	Spain		10,540		10,177
	12	Washington Real Estate Investment		7,453			7,318		BBB	Mexico		10,100		9,798	AAA	$	—	$	—
	13	Altria Group Inc		7,440			5,920		BBB	Bermuda		9,366		9,096	AA		20,221		18,297
	14	Prudential Financial Inc		7,418			6,819		A	Luxembourg		8,041		7,002	A		99,931		94,200
	15	Enel SpA		7,303			6,980		BBB+	Chile		7,839		7,932	BBB		172,489		163,378
	16	Tesco PLC		7,192			6,331		BBB+	Emerging Markets		7,069		7,069	Below Investment Grade		19,927		18,704
	17	TransCanada Corp		7,140			6,846		A-	All Other		50,226		46,553	NA		862		949
	18	AT&T Inc		6,897			5,959		A-	Total	$	352,220	$	332,520	Total	$	313,431	$	295,529
	19	MetLife Inc		6,786			6,600		A-
	20	Roche Holding AG		6,497			5,414		AA-
	21	Reynolds American Inc		6,743			5,342		BBB-
	22	Hospitality Properties Trust		6,396			6,394		BBB-
	23	Eaton Corp PLC		6,368			5,996		A-
	24	Liberty Property Trust		6,368			6,188		BBB
	25	Goldman Sachs Group Inc/The		6,350			5,860		A-
		Total	$	235,843		$	214,108

		% of total fixed income portfolio		12.5	%		12.1	%

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

14 of 15

Five Year Historical Key Statistics

PRIMERICA, INC.

Financial Supplement

(Dollars in millions)	2008			2009			2010			2011			2012			Q1 2012			Q2 2012			Q3 2012			Q4 2012			Q1 2013			Q2 2013			Q3 2013


Recruits		235,125			221,920			231,390			244,756		191,752			58,551			48,976			47,639			36,586			46,348			50,358			51,523


Life-insurance licensed sales force, beginning of period		97,125			100,651			99,785			94,850		91,176			91,176			89,651			90,868			91,506			92,373			90,917			92,227
New life-licensed representatives		39,383			37,629			34,488			33,711		34,425			7,650			9,786			8,613			8,376			7,165			8,875			9,630
Non-renewal and terminated representatives		(35,857	)		(38,495	)		(39,423	)		(37,385	)	(33,228	)		(9,175	)		(8,569	)		(7,975	)		(7,509	)		(8,621	)		(7,565	)		(7,328	)
Life-insurance licensed sales force, end of period		100,651			99,785			94,850			91,176		92,373			89,651			90,868			91,506			92,373			90,917			92,227			94,529


Issued term life policies		241,173			233,837			223,514			237,535		222,558			56,145			60,583			53,506			52,324			50,356			57,622			53,997


Issued term life face amount	$	87,279		$	80,497		$	74,401		$	73,146		68,053		$	16,983		$	18,307		$	16,345		$	16,418		$	15,709		$	17,798		$	17,056


Term life face amount in force, beginning of period	$	632,086		$	633,467		$	650,195		$	656,791		664,955		$	664,955		$	664,423		$	668,024		$	669,132		$	670,412		$	670,414		$	674,355
Issued term life face amount		87,279			80,497			74,401			73,146		68,053			16,983			18,307			16,345			16,418			15,709			17,798			17,056
Terminated term life face amount		(72,008	)		(74,642	)		(70,964	)		(66,951	)	(61,593	)		(16,307	)		(14,322	)		(15,566	)		(15,398	)		(14,917	)		(13,139	)		(14,346	)
Foreign currency impact, net		(13,891	)		10,873			3,158			1,970		(1,003	)		(1,208	)		(384	)		329			260			(790	)		(719	)		(704	)
Term life face amount in force, end of period	$	633,467		$	650,195		$	656,791		$	664,955		670,412		$	664,423		$	668,024		$	669,132		$	670,412		$	670,414		$	674,355		$	676,360


Estimated annualized issued term life premium
Premium from new policies	$	205.0		$	193.7		$	180.8		$	187.6		176.1		$	44.7		$	47.8		$	41.8		$	41.7		$	40.2		$	45.9		$	43.9
Additions and increases in premium		43.0			42.6			44.6			44.9		45.5			10.7			11.4			11.6			11.8			11.4			12.3			12.3
Total estimated annualized issued term life premium	$	248.0		$	236.3		$	225.4		$	232.5		221.5		$	55.4		$	59.2		$	53.4		$	53.5		$	51.6		$	58.2		$	56.2


Investment & Savings product sales	$	4,458.4		$	3,006.6		$	3,623.6		$	4,265.1		4,712.2		$	1,187.7		$	1,193.9		$	1,091.7		$	1,239.0		$	1,365.3		$	1,317.7		$	1,248.7

Investment & Savings average client asset values	$	32,763		$	26,845		$	31,908		$	34,870		35,904		$	35,122		$	35,550		$	35,962		$	36,983		$	38,756		$	40,326		$	41,225

15 of 15

Primerica, Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - November 6, 2013

Attached files

Primerica, Inc. Reports