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

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8-K - PRIMERICA, INC. 8-K - Primerica, Inc.	a50973720.htm
EX-99.1 - EXHIBIT 99.1 - Primerica, Inc.	a50973720ex99_1.htm

Exhibit 99.2

Supplemental Financial Information

Third Quarter 2014

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	9-11
Investment and Savings Products segment - financial results, key statistics, and financial analysis	12

Investment portfolio	13-15

Five-year historical key statistics	16

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, 2013.

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Preface

PRIMERICA, INC.

Financial Supplement

THIRD QUARTER 2014

This document is a financial supplement to our third quarter 2014 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 three different purposes, as follows:

●

Operating adjustments exclude the expense associated with equity awards granted in connection with our initial public offering (“IPO”), the impact of realized investment gains and losses, and the impact of certain charges related to claims made by certain Florida Retirement System (FRS) plan participants as described in our Form 8-K dated January 16, 2014 and subsequent filings.

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

●	Citi reinsurance transaction adjustments relate to transactions in the first quarter of 2010, where we reinsured between 80% and 90% of our business that was in-force at year-end 2009 to various affiliates of Citigroup Inc. (“Citi”) that were executed concurrent with our IPO.

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.

Discontinued Operations

In January 2014, National Benefit Life Insurance Company, our New York insurance company, sold the assets and liabilities of its short-term statutory disability benefit insurance business ("DBL") to AmTrust North America, Inc., which assumed all liabilities for DBL insurance. The results of operations for DBL were previously reported in our Corporate and Other Distributed Products segment. As a result, beginning in the first quarter of 2014, the historical results of DBL have been eliminated from our Corporate and Other Distributed Products segment and are now reported in discontinued operations in Primerica’s consolidated statements of income for all periods presented.


Historical DBL results now reported in discontinued operations
($ in thousands)
	FY 2011			FY 2012		FY 2013			Q1 2013		Q2 2013		Q3 2013			Q4 2013		Q1 2014		Q2 2014		Q3 2014
Direct premiums	$	40,465		$	36,943	$	36,878	$	9,995	$	8,817	$	9,048		$	9,018	$	—	$	—	$	—
Benefits and claims		30,170			24,699		21,543		5,430		5,447		5,364			5,301		—		—		—
Insurance commissions		6,405			5,831		5,941		1,843		1,293		1,396			1,410		—		—		—
Insurance expenses		5,099			5,647		3,202		1,630		1,581		(1,493	)		1,485		—		—		—
Net gain on sale		—			—		—		—		—		—			—		2,455		—		(28	)
Income before income taxes		(1,209	)		766		6,192		1,092		496		3,781			822		2,455		—		(28	)
Net Income	$	(783	)	$	497	$	4,024	$	710	$	322	$	2,458		$	534	$	1,596	$	—	$	(18	)

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.

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

PRIMERICA, INC.

Financial Supplement

(Dollars in thousands)	Dec 31, 2012			Mar 31, 2013			Jun 30, 2013			Sep 30, 2013			Dec 31, 2013			Mar 31, 2014			Jun 30, 2014			Sep 30, 2014
Condensed Balance Sheets
Assets:
Investments and cash excluding securities held to maturity	$	2,068,752		$	2,115,144		$	1,876,077		$	1,909,560		$	1,984,592		$	2,014,610		$	2,042,834		$	2,039,759
Securities held to maturity		—			—			—			—			—			—			—			189,830
Total investments and cash		2,068,752			2,115,144			1,876,077			1,909,560			1,984,592			2,014,610			2,042,834			2,229,589
Due from reinsurers		4,005,194			4,005,539			3,993,258			4,033,138			4,055,054			4,074,527			4,077,734			4,130,637
Deferred policy acquisition costs		1,066,422			1,098,124			1,133,542			1,179,143			1,208,466			1,242,983			1,293,974			1,321,415
Other assets		579,393			599,840			566,809			564,953			578,009			597,265			597,348			591,895
Separate account assets		2,618,115			2,614,669			2,435,740			2,512,886			2,503,829			2,458,739			2,581,659			2,469,118
Total assets	$	10,337,877		$	10,433,316		$	10,005,426		$	10,199,680		$	10,329,950		$	10,388,124		$	10,593,549		$	10,742,654

Liabilities:
Future policy benefits	$	4,850,488		$	4,898,538		$	4,943,743		$	5,022,048		$	5,063,103		$	5,103,278		$	5,180,013		$	5,214,878
Other policy liabilities		606,310			614,892			584,587			587,646			593,084			585,217			576,737			630,248
Income taxes		114,611			122,925			89,713			101,708			105,885			127,906			137,797			136,065
Other liabilities		358,578			366,669			344,649			329,566			377,689			375,864			346,535			365,900
Notes payable		374,433			374,445			374,457			374,469			374,481			374,494			374,506			374,519
Surplus note		—			—			—			—			—			—			—			189,830
Payable under securities lending		139,927			133,325			86,272			75,852			89,852			109,094			93,569			67,614
Separate account liabilities		2,618,115			2,614,669			2,435,740			2,512,886			2,503,829			2,458,739			2,581,659			2,469,118
Total liabilities		9,062,461			9,125,463			8,859,162			9,004,174			9,107,923			9,134,591			9,290,818			9,448,172
Stockholders’ equity:
Common stock ($0.01 par value) (1)		564			567			545			547			548			546			542			537
Paid-in capital		602,269			609,100			456,050			464,784			472,632			462,837			447,949			429,257
Retained earnings		503,173			535,609			572,714			609,778			640,840			679,183			721,788			756,738
Treasury stock		—			—			—			—			—			—			—			—
Accumulated other comprehensive income (loss), net:
Net unrealized investment gains (losses) not other-than-temporarily impaired		114,958			112,263			74,845			72,773			67,378			78,911			92,049			78,130
Net unrealized investment losses other-than-temporarily impaired		(1,035	)		(1,045	)		(1,047	)		(1,047	)		(1,346	)		(1,346	)		(1,346	)		(461	)
Cumulative translation adjustment		55,488			51,358			43,158			48,672			41,975			33,404			41,749			30,282
Total stockholders’ equity		1,275,416			1,307,853			1,146,265			1,195,505			1,222,027			1,253,532			1,302,731			1,294,482
Total liabilities and stockholders' equity	$	10,337,877		$	10,433,316		$	10,005,426		$	10,199,680		$	10,329,950		$	10,388,124		$	10,593,549		$	10,742,654

Reconciliation of Adjusted Stockholders' Equity to Total Stockholders' Equity
Adjusted stockholders' equity	$	1,161,494		$	1,196,634		$	1,072,467		$	1,123,780		$	1,155,996		$	1,175,968		$	1,212,028		$	1,216,813
Reconciling items:
Net unrealized investment gains (losses) not other-than-temporarily impaired		114,958			112,263			74,845			72,773			67,378			78,911			92,049			78,130
Net unrealized investment losses other-than-temporarily impaired		(1,035	)		(1,045	)		(1,047	)		(1,047	)		(1,346	)		(1,346	)		(1,346	)		(461	)
Total reconciling items		113,923			111,219			73,797			71,726			66,032			77,564			90,703			77,669
Total stockholders’ equity	$	1,275,416		$	1,307,853		$	1,146,265		$	1,195,505		$	1,222,027		$	1,253,532		$	1,302,731		$	1,294,482

Adjusted Stockholders' Equity Rollforward
Balance, beginning of period	$	1,218,939		$	1,161,494		$	1,196,634		$	1,072,467		$	1,123,780		$	1,155,996		$	1,175,968		$	1,212,028
Net Income		40,270			38,845			43,490			43,190			37,201			45,080			49,271			41,595
Shareholder dividends		(5,321	)		(6,409	)		(6,385	)		(6,126	)		(6,138	)		(6,738	)		(6,666	)		(6,646	)
Retirement of shares and warrants		(98,208	)		(3,077	)		(166,395	)		—			—			(19,187	)		(21,972	)		(30,694	)
Net foreign currency translation adjustment		(2,746	)		(4,130	)		(8,200	)		5,514			(6,697	)		(8,571	)		8,346			(11,468	)
Other, net		8,559			9,911			13,323			8,736			7,850			9,389			7,081			11,997
Balance, end of period	$	1,161,494		$	1,196,634		$	1,072,467		$	1,123,780		$	1,155,996		$	1,175,968		$	1,212,028		$	1,216,813

Deferred Policy Acquisition Costs Rollforward
Balance, beginning of period	$	1,036,020		$	1,066,422		$	1,098,124		$	1,133,542		$	1,179,143		$	1,208,466		$	1,242,983		$	1,293,974
General expenses deferred		6,869			6,631			8,669			7,399			7,396			7,273			8,136			7,147
Commission costs deferred		60,349			60,048			63,835			65,535			63,828			69,559			68,674			66,602
Amortization of deferred policy acquisition costs		(34,628	)		(31,252	)		(30,111	)		(32,192	)		(35,627	)		(35,193	)		(32,696	)		(36,944	)
Foreign currency impact and other, net		(2,187	)		(3,726	)		(6,974	)		4,860			(6,274	)		(7,122	)		6,877			(9,363	)
Balance, end of period	$	1,066,422		$	1,098,124		$	1,133,542		$	1,179,143		$	1,208,466		$	1,242,983		$	1,293,974		$	1,321,415

(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 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 2014			Q3 2014			$ Change			% Change			YTD 2013			YTD 2014			$ Change			% Change
Earnings per Share
Basic earnings per share:
Weighted-average common shares and fully vested equity awards		56,598,327			56,510,785			54,957,274			55,080,615			55,224,404			54,926,561			54,712,874			(244,400	)		-0.40	%		56,019,271			54,953,027			(1,066,244	)		-1.90	%

Net income	$	38,845		$	43,490		$	43,190		$	37,201		$	45,080		$	49,271		$	41,595		$	(1,595	)		-3.70	%	$	125,525		$	135,947		$	10,422			8.30	%
Less income attributable to unvested participating securities		(1,017	)		(553	)		(556	)		(482	)		(576	)		(542	)		(447	)		109			19.60	%		(2,173	)		(1,564	)		609			28.00	%
Net income used in computing basic EPS	$	37,828		$	42,938		$	42,633		$	36,718		$	44,504		$	48,729		$	41,147		$	(1,486	)		-3.50	%	$	123,352		$	134,382		$	11,031			8.90	%
Basic earnings per share	$	0.67		$	0.76		$	0.78		$	0.67		$	0.81		$	0.89		$	0.75		$	(0.02	)		-3.10	%	$	2.20		$	2.45		$	0.24			11.10	%

Net operating income	$	38,602		$	41,165		$	40,996		$	46,234		$	43,314		$	48,731		$	41,796		$	800			2.00	%	$	120,763		$	133,840		$	13,077			10.80	%
Less operating income attributable to unvested participating securities		(1,011	)		(523	)		(528	)		(600	)		(554	)		(536	)		(450	)		78			14.80	%		(2,090	)		(1,540	)		550			26.30	%
Net operating income used in computing basic operating EPS	$	37,591		$	40,642		$	40,468		$	45,634		$	42,760		$	48,194		$	41,346		$	878			2.20	%	$	118,673		$	132,300		$	13,627			11.50	%
Basic operating income per share	$	0.66		$	0.72		$	0.74		$	0.83		$	0.77		$	0.88		$	0.76		$	0.02			2.60	%	$	2.12		$	2.41		$	0.29			13.60	%

Diluted earnings per share:
Weighted-average common shares and fully vested equity awards		56,598,327			56,510,785			54,957,274			55,080,615			55,224,404			54,926,561			54,712,874			(244,400			-0.40	%		56,019,271			54,953,027			(1,066,244	)		-1.90	%
Dilutive impact of warrants and options		1,809,066			1,338,164			1,187			15,012			21,997			23,046			30,983			29,796		nm				1,049,472			25,342			(1,024,130	)		-97.60	%
Shares used to calculate diluted EPS		58,407,393			57,848,949			54,958,461			55,095,627			55,246,401			54,949,607			54,743,857			(214,604	)		-0.40	%		57,068,743			54,978,369			(2,090,374	)		-3.70	%

Net income	$	38,845		$	43,490		$	43,190		$	37,201		$	45,080		$	49,271		$	41,595		$	(1,595	)		-3.70	%	$	125,525		$	135,947		$	10,422			8.30	%
Less income attributable to unvested participating securities		(991	)		(542	)		(556	)		(482	)		(576	)		(542	)		(447	)		109			19.60	%		(2,140	)		(1,564	)		576			26.90	%
Net income used in computing diluted EPS	$	37,854		$	42,948		$	42,633		$	36,718		$	44,504		$	48,729		$	41,148		$	(1,486	)		-3.50	%	$	123,385		$	134,383		$	10,998			8.90	%
Diluted earnings per share	$	0.65		$	0.74		$	0.78		$	0.67		$	0.81		$	0.89		$	0.75		$	(0.02	)		-3.10	%	$	2.16		$	2.44		$	0.28			13.10	%

Net operating income	$	38,602		$	41,165		$	40,996		$	46,234		$	43,314		$	48,731		$	41,796		$	800			2.00	%	$	120,763		$	133,840		$	13,077			10.80	%
Less operating income attributable to unvested participating securities		(985	)		(513	)		(528	)		(600	)		(554	)		(536	)		(449	)		78			14.90	%		(2,058	)		(1,539	)		519			25.20	%
Net operating income used in computing diluted operating EPS	$	37,617		$	40,652		$	40,468		$	45,635		$	42,760		$	48,194		$	41,346		$	878			2.20	%	$	118,705		$	132,300		$	13,596			11.50	%
Diluted operating income per share	$	0.64		$	0.70		$	0.74		$	0.83		$	0.77		$	0.88		$	0.76		$	0.02			2.60	%	$	2.08		$	2.41		$	0.33			15.70	%

																						YOY Q3												YOY YTD
	Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 2014			Q3 2014			Change			% Change			YTD 2013			YTD 2014			$ Change			% Change
Annualized Return on Equity
Average stockholders' equity	$	1,291,635		$	1,227,059		$	1,170,885		$	1,208,766		$	1,237,780		$	1,278,132		$	1,298,607		$	127,722			10.9	%	$	1,229,859		$	1,271,506		$	41,647			3.4	%
Average adjusted stockholders' equity	$	1,179,064		$	1,134,551		$	1,098,123		$	1,139,888		$	1,165,982		$	1,193,998		$	1,214,421		$	116,297			10.6	%	$	1,137,246		$	1,191,467		$	54,221			4.8	%

Net income return on stockholders' equity		12.0	%		14.2	%		14.8	%		12.3	%		14.6	%		15.4	%		12.8	%		-1.9	%	nm				13.6	%		14.3	%		0.6	%	nm
Net income return on adjusted stockholders' equity		13.2	%		15.3	%		15.7	%		13.1	%		15.5	%		16.5	%		13.7	%		-2.0	%	nm				14.7	%		15.2	%		0.5	%	nm

Net operating income return on adjusted stockholders' equity		13.1	%		14.5	%		14.9	%		16.2	%		14.9	%		16.3	%		13.8	%		-1.2	%	nm				14.2	%		15.0	%		0.8	%	nm

Capital Structure
Debt-to-capital (1)		22.3	%		24.6	%		23.9	%		23.5	%		23.0	%		22.3	%		22.4	%		-1.4	%	nm				23.9	%		22.4	%		-1.4	%	nm

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

Share count, end of period (2)		56,682,195			54,503,822			54,686,613			54,833,510			54,569,108			54,193,684			53,681,705			(1,004,908	)		-1.8	%		54,686,613			53,681,705			(1,004,908	)		-1.8	%
Adjusted stockholders' equity per share	$	21.11		$	19.68		$	20.55		$	21.08		$	21.55		$	22.36		$	22.67		$	2.12			10.3	%	$	20.55		$	22.67		$	2.12			10.3	%

Financial Strength Ratings - Primerica Life Insurance Co
Moody's		A2			A2			A2			A2			A2			A3			A3		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			Baa3			Baa3		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)	Debt-to-capital is that of the parent company only. 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 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 2014			Q3 2014			$ Change			% Change			YTD 2013			YTD 2014			$ Change			% Change
Statement of Income
Revenues:
Direct premiums	$	560,904		$	568,391		$	567,047		$	568,848		$	568,205		$	576,740		$	577,482		$	10,435			1.8	%		1,696,342		$	1,722,427		$	26,085			1.5	%
Ceded premiums		(410,604	)		(417,450	)		(407,489	)		(408,615	)		(402,715	)		(410,546	)		(402,198	)		5,291			1.3	%		(1,235,543	)		(1,215,459	)		20,084			1.6	%
Net premiums		150,300			150,941			159,558			160,233			165,490			166,194			175,284			15,726			9.9	%		460,799			506,968			46,169			10.0	%
Net investment income		23,216			21,027			22,103			22,407			21,599			21,681			20,465			(1,637	)		-7.4	%		66,345			63,745			(2,600	)		-3.9	%
Commissions and fees:
Sales-based (1)		49,656			52,108			51,934			54,386			57,904			60,255			58,394			6,460			12.4	%		153,698			176,554			22,855			14.9	%
Asset-based (2)		47,490			49,492			51,037			53,493			53,807			56,114			58,744			7,707			15.1	%		148,018			168,665			20,647			13.9	%
Account-based (3)		9,453			9,588			9,811			10,010			9,720			9,957			10,251			440			4.5	%		28,852			29,928			1,076			3.7	%
Other commissions and fees		5,674			5,994			5,658			6,019			5,499			5,713			5,539			(119	)		-2.1	%		17,326			16,751			(575	)		-3.3	%
Realized investment (losses) gains		2,286			3,468			(407	)		899			263			831			(281	)		126			30.9	%		5,347			813			(4,534	)		-84.8	%
Other, net		10,376			10,872			10,714			10,776			10,045			10,384			10,791			77			0.7	%		31,962			31,220			(742	)		-2.3	%
Total revenues		298,450			303,490			310,408			318,222			324,328			331,130			339,187			28,779			9.3	%		912,348			994,645			82,296			9.0	%
Benefits and expenses:
Benefits and claims		68,816			64,322			76,548			70,246			75,191			72,412			81,235			4,688			6.1	%		209,685			228,839			19,153			9.1	%
Amortization of DAC		31,252			30,111			32,192			35,627			35,193			32,696			36,944			4,752			14.8	%		93,556			104,834			11,277			12.1	%
Insurance commissions		4,223			4,131			3,933			4,242			4,083			3,881			4,046			114			2.9	%		12,287			12,010			(277	)		-2.3	%
Insurance expenses		25,512			26,513			26,576			26,854			28,502			28,192			31,495			4,919			18.5	%		78,602			88,189			9,587			12.2	%
Sales commissions:
Sales-based (1)		35,373			36,702			36,266			38,190			41,563			42,702			41,193			4,927			13.6	%		108,341			125,458			17,117			15.8	%
Asset-based (2)		16,668			17,807			18,805			19,988			20,725			21,859			23,378			4,573			24.3	%		53,280			65,962			12,683			23.8	%
Other sales commissions		3,007			3,129			3,316			2,986			2,833			2,803			2,929			(388	)		-11.7	%		9,453			8,564			(889	)		-9.4	%
Interest expense		8,795			8,792			8,726			8,704			8,606			8,552			8,712			(15	)		-0.2	%		26,314			25,870			(444	)		-1.7	%
Other operating expenses		45,664			45,031			41,273			55,241			40,798			42,292			45,235			3,962			9.6	%		131,968			128,326			(3,642	)		-2.8	%
Total benefits and expenses		239,310			236,539			247,636			262,078			257,495			255,390			275,167			27,531			11.1	%		723,486			788,052			64,566			8.9	%
Income from continued operations before income taxes		59,140			66,950			62,772			56,143			66,832			75,740			64,020			1,248			2.0	%		188,863			206,593			17,730			9.4	%
Income taxes		21,005			23,783			22,041			19,477			23,347			26,469			22,407			367			1.7	%		66,828			72,224			5,396			8.1	%
Net income from continued operations		38,135			43,168			40,732			36,666			43,485			49,271			41,613			881			2.2	%		122,035			134,369			12,334			10.1	%
Net income from discontinued operations net tax		710			322			2,458			534			1,596			—			(18	)		(2,476	)		-100.7	%		3,490			1,578			(1,913	)		-54.8	%
Net income	$	38,845		$	43,490		$	43,190		$	37,201		$	45,080		$	49,271		$	41,595		$	(1,595	)		-3.7	%		125,525		$	135,947		$	10,422			8.3	%

Income from Continued Operations Before Income Taxes by Segment
Term Life	$	45,125		$	51,899		$	50,136		$	50,042		$	47,205		$	55,070		$	45,932		$	(4,203	)		-8.4	%		147,159		$	148,207		$	1,048			0.7	%
Investment & Savings Products		26,353			27,488			31,498			19,810			34,028			36,047			36,904			5,406			17.2	%		85,339			106,978			21,639			25.4	%
Corporate & Other Distributed Products		(12,338	)		(12,436	)		(18,862	)		(13,708	)		(14,400	)		(15,377	)		(18,816	)		45			0.2	%		(43,636	)		(48,593	)		(4,957	)		-11.4	%
Income from continued operations before income taxes	$	59,140		$	66,950		$	62,772		$	56,143		$	66,832		$	75,740		$	64,020		$	1,248			2.0	%		188,863		$	206,593		$	17,730			9.4	%

(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 16

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

PRIMERICA, INC.

Financial Supplement

																						YOY Q3												YOY YTD
	Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 2014			Q3 2014			$ Change			% Change			YTD 2013			YTD 2014			$ Change			% Change
(Dollars in thousands)	Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 2014			Q3 2014			$ Change			% Change			YTD 2013			YTD 2014			$ Change			% Change
Reconciliation from Term Life Adjusted Direct Premiums to Term Life Direct Premiums
Term Life adjusted direct premiums	$	193,409		$	201,422		$	205,503		$	210,572		$	214,780		$	223,706		$	228,422		$	22,919			11.2	%	$	600,333		$	666,908		$	66,574			11.1	%
Premiums ceded to Citi		358,625			357,613			351,983			350,077			344,883			344,143			340,170			(11,813	)		-3.4	%		1,068,222			1,029,196			(39,026	)		-3.7	%
Term Life direct premiums	$	552,034		$	559,035		$	557,486		$	560,649		$	559,663		$	567,849		$	568,592		$	11,106			2.0	%	$	1,668,555		$	1,696,104		$	27,549			1.7	%


Reconciliation from Term Life Other Ceded Premiums to Term Life Ceded Premiums
Term Life other ceded premiums	$	(49,229	)	$	(56,608	)	$	(52,476	)	$	(55,430	)	$	(55,450	)	$	(63,424	)	$	(59,417	)	$	(6,941	)		-13.2	%	$	(158,313	)	$	(178,290	)	$	(19,977	)		-12.6	%
Premiums ceded to Citi		(358,625	)		(357,613	)		(351,983	)		(350,077	)		(344,883	)		(344,143	)		(340,170	)		11,813			3.4	%		(1,068,222	)		(1,029,196	)		39,026			3.7	%
Term Life ceded premiums	$	(407,854	)	$	(414,222	)	$	(404,459	)	$	(405,506	)	$	(400,334	)	$	(407,566	)	$	(399,587	)	$	4,872			1.2	%	$	(1,226,535	)	$	(1,207,487	)	$	19,048			1.6	%


Reconciliation from Operating Revenues to Total Revenues
Operating revenues	$	296,164		$	300,022		$	310,815		$	317,323		$	324,065		$	330,299		$	339,468		$	28,653			9.2	%	$	907,002		$	993,831		$	86,830			9.6	%
Realized investment gains/(losses)		2,286			3,468			(407	)		899			263			831			(281	)	nm			nm				5,347			813		nm			nm
Total revenues	$	298,450		$	303,490		$	310,408		$	318,222		$	324,328		$	331,130		$	339,187		$	28,779			9.3	%	$	912,348		$	994,645		$	82,296			9.0	%


Reconciliation from Operating Income Before Income Taxes to Income from Continued Operations Before Income Taxes
Operating income before income taxes	$	59,864		$	63,844		$	63,179		$	70,795		$	66,569		$	74,909		$	64,301		$	1,122			1.8	%	$	186,888		$	205,779		$	18,892			10.1	%

Operating income before income taxes reconciling items:
Realized investment gains/(losses)		2,286			3,468			(407	)		899			263			831			(281	)	nm			nm				5,347			813		nm			nm
FRS legal settlements		—			(188	)		—			(15,551	)		—			—			—		nm			nm				(188	)		—		nm			nm
IPO equity award grants		(3,010	)		(174	)		—			—			—			—			—		nm			nm				(3,184	)		—		nm			nm
Total operating income before income taxes reconciling items		(724	)		3,106			(407	)		(14,652	)		263			831			(281	)	nm			nm				1,975			813		nm			nm

Income from continued operations before income taxes	$	59,140		$	66,950		$	62,772		$	56,143		$	66,832		$	75,740		$	64,020		$	1,248			2.0	%	$	188,863		$	206,593		$	17,730			9.4	%


Reconciliation from Net Operating Income to Net Income
Net operating income	$	38,602		$	41,165		$	40,996		$	46,234		$	43,314		$	48,731		$	41,796		$	800			2.0	%	$	120,763		$	133,840		$	13,077			10.8	%

Net operating income reconciling items:
Operating income before income taxes reconciling items		(724	)		3,106			(407	)		(14,652	)		263			831			(281	)	nm			nm				1,975			813		nm			nm
Tax impact of operating income reconciling items at effective tax rate		257			(1,103	)		143			5,084			(92	)		(291	)		98		nm			nm				(703	)		(284	)	nm			nm
Total net operating income reconciling items		(467	)		2,003			(264	)		(9,568	)		171			541			(183	)	nm			nm				1,272			529		nm			nm

Net income from continued operations	$	38,135		$	43,168		$	40,732		$	36,666		$	43,485		$	49,271		$	41,613		$	881			2.2	%	$	122,035		$	134,369		$	12,334			10.1	%
Net income from discontinued operations net tax		710			322			2,458			534			1,596			—			(18	)	nm			nm				3,490			1,578		nm			nm
Net income	$	38,845		$	43,490		$	43,190		$	37,201		$	45,080		$	49,271		$	41,595		$	(1,595	)		-3.7	%	$	125,525		$	135,947		$	10,422			8.3	%

7 of 16

Segment Operating Results

PRIMERICA, INC.

Financial Supplement

																						YOY Q3												YOY YTD
(Dollars in thousands)	Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 2014			Q3 2014			$ Change			% Change			YTD 2013			YTD 2014			$ Change			% Change
Term Life Insurance
Revenues:
Direct Premiums	$	552,034		$	559,035		$	557,486		$	560,649		$	559,663		$	567,849		$	568,592		$	11,106			2.0	%	$	1,668,555		$	1,696,104		$	27,549			1.7	%
Premiums ceded to Citi (1)		(358,625	)		(357,613	)		(351,983	)		(350,077	)		(344,883	)		(344,143	)		(340,170	)		11,813			3.4	%		(1,068,222	)		(1,029,196	)		39,026			3.7	%
Adjusted direct premiums (2)		193,409			201,422			205,503			210,572			214,780			223,706			228,422			22,919			11.2	%		600,333			666,908			66,574			11.1	%
Other ceded premiums (3)		(49,229	)		(56,608	)		(52,476	)		(55,430	)		(55,450	)		(63,424	)		(59,417	)		(6,941	)		-13.2	%		(158,313	)		(178,290	)		(19,977	)		-12.6	%
Net premiums		144,180			144,813			153,027			155,142			159,330			160,282			169,005			15,978			10.4	%		442,020			488,617			46,597			10.5	%
Allocated net investment income		16,670			16,935			17,385			17,807			16,713			16,839			17,235			(150	)		-0.9	%		50,989			50,787			(203	)		-0.4	%
Other, net		6,984			7,436			7,399			7,199			6,937			7,245			7,337			(62	)		-0.8	%		21,819			21,520			(299	)		-1.4	%
Operating revenues		167,833			169,184			177,811			180,147			182,980			184,366			193,577			15,766			8.9	%		514,828			560,924			46,096			9.0	%
Benefits and expenses:
Benefits and claims		65,547			61,689			67,788			67,334			71,263			68,287			77,722			9,934			14.7	%		195,023			217,272			22,250			11.4	%
Amortization of DAC		27,865			25,777			29,679			32,570			32,721			29,778			34,171			4,492			15.1	%		83,320			96,670			13,350			16.0	%
Insurance commissions		1,199			1,062			901			1,437			1,315			929			1,070			169			18.7	%		3,162			3,314			151			4.8	%
Insurance expenses		23,846			24,508			25,125			24,603			26,413			26,293			30,514			5,389			21.5	%		73,478			83,221			9,742			13.3	%
Interest expense		4,252			4,250			4,183			4,161			4,063			4,009			4,168			(15	)		-0.4	%		12,685			12,240			(445	)		-3.5	%
Operating benefits and expenses		122,708			117,285			127,676			130,105			135,776			129,296			147,645			19,969			15.6	%		367,669			412,716			45,047			12.3	%
Operating income before income taxes	$	45,125		$	51,899		$	50,136		$	50,042		$	47,205		$	55,070		$	45,932		$	(4,203	)		-8.4	%	$	147,159		$	148,207		$	1,048			0.7	%

Investment & Savings Products
Revenues:
Commissions and fees:
Sales-based	$	49,656		$	52,108		$	51,934		$	54,386		$	57,904		$	60,255		$	58,394		$	6,460			12.4	%	$	153,698		$	176,554		$	22,855			14.9	%
Asset-based		47,490			49,492			51,037			53,493			53,807			56,114			58,744			7,707			15.1	%		148,018			168,665			20,647			13.9	%
Account-based		9,453			9,588			9,811			10,010			9,720			9,957			10,251			440			4.5	%		28,852			29,928			1,076			3.7	%
Other, net		2,122			2,173			1,941			2,444			1,839			1,821			1,884			(57	)		-2.9	%		6,236			5,543			(693	)		-11.1	%
Operating revenues		108,721			113,361			114,723			120,333			123,270			128,147			129,273			14,550			12.7	%		336,805			380,690			43,885			13.0	%
Benefits and expenses:
Amortization of DAC		2,892			3,876			2,542			1,885			2,335			2,172			2,484			(58	)		-2.3	%		9,310			6,991			(2,319	)		-24.9	%
Insurance commissions		2,274			2,331			2,249			2,193			2,086			2,237			2,290			42			1.8	%		6,853			6,614			(239	)		-3.5	%
Sales commissions:																																					#DIV/0!
Sales-based		35,373			36,702			36,266			38,190			41,563			42,702			41,193			4,927			13.6	%		108,341			125,458			17,117			15.8	%
Asset-based		16,668			17,807			18,805			19,988			20,725			21,859			23,378			4,573			24.3	%		53,280			65,962			12,683			23.8	%
Other operating expenses		25,162			24,971			23,362			22,716			22,532			23,131			23,024			(338	)		-1.4	%		73,495			68,687			(4,808	)		-6.5	%
Operating benefits and expenses		82,368			85,686			83,224			84,972			89,243			92,100			92,369			9,145			11.0	%		251,279			273,712			22,433			8.9	%
Operating income before income taxes	$	26,353		$	27,675		$	31,498		$	35,361		$	34,028		$	36,047		$	36,904		$	5,406			17.2	%	$	85,527		$	106,978		$	21,452			25.1	%

Corporate & Other Distributed Products
Revenues:
Direct premiums	$	8,870		$	9,356		$	9,561		$	8,200		$	8,542		$	8,892		$	8,890		$	(671	)		-7.0	%	$	27,787		$	26,324		$	(1,463	)		-5.3	%
Ceded premiums		(2,750	)		(3,229	)		(3,030	)		(3,109	)		(2,381	)		(2,980	)		(2,611	)		419			13.8	%		(9,008	)		(7,973	)		1,035			11.5	%
Net premiums		6,120			6,127			6,531			5,091			6,160			5,912			6,279			(252	)		-3.9	%		18,779			18,351			(428	)		-2.3	%
Allocated net investment income		6,546			4,092			4,718			4,600			4,885			4,842			3,230			(1,487	)		-31.5	%		15,356			12,958			(2,398	)		-15.6	%
Commissions and fees:
Loans		293			406			264			256			200			101			78			(187	)		-70.7	%		963			378			(585	)		-60.8	%
DebtWatchers		491			462			482			411			385			360			337			(145	)		-30.0	%		1,435			1,082			(353	)	nm
Prepaid Legal Services		2,254			2,255			2,396			2,415			2,339			2,285			2,487			91			3.8	%		6,905			7,111			206			3.0	%
Auto and Homeowners Insurance		1,685			1,890			1,470			1,982			1,719			1,998			1,606			136			9.2	%		5,046			5,322			277			5.5	%
Long-Term Care Insurance		628			664			705			565			521			570			565			(140	)		-19.9	%		1,997			1,656			(341	)		-17.1	%
Other sales commissions		323			316			341			389			337			399			467			126			36.9	%		981			1,203			222			22.7	%
Other, net		1,270			1,263			1,374			1,133			1,269			1,318			1,569			195			14.2	%		3,907			4,156			250			6.4	%
Operating revenues		19,610			17,477			18,281			16,843			17,814			17,785			16,618			(1,663	)		-9.1	%		55,368			52,217			(3,151	)		-5.7	%
Benefits and expenses:
Benefits and claims		3,269			2,634			8,760			2,912			3,928			4,125			3,513			(5,247	)		-59.9	%		14,663			11,566			(3,096	)		-21.1	%
Amortization of DAC		496			459			(29	)		1,171			137			747			289			318		nm				926			1,173			247			26.6	%
Insurance commissions		750			738			783			612			681			715			686			(97	)		-12.3	%		2,271			2,082			(189	)		-8.3	%
Insurance expenses		1,667			2,006			1,451			2,252			2,088			1,900			981			(470	)		-32.4	%		5,124			4,969			(155	)		-3.0	%
Sales commissions		3,007			3,129			3,316			2,986			2,833			2,803			2,929			(388	)		-11.7	%		9,453			8,564			(889	)		-9.4	%
Interest expense		4,543			4,543			4,543			4,543			4,543			4,543			4,544			1		nm				13,629			13,630			2		nm
Other operating expenses		17,492			19,698			17,911			16,975			18,266			19,161			22,211			4,300			24.0	%		55,101			59,639			4,538			8.2	%
Operating benefits and expenses		31,224			33,207			36,736			31,450			32,477			33,993			35,153			(1,583	)		-4.3	%		101,166			101,624			457			0.5	%
Operating income before income taxes	$	(11,614	)	$	(15,730	)	$	(18,455	)	$	(14,607	)	$	(14,663	)	$	(16,208	)	$	(18,535	)	$	(81	)		-0.4	%	$	(45,798	)	$	(49,406	)	$	(3,608	)		-7.9	%

(1)	Premiums ceded to Citi - premiums ceded to Citi under the Citi reinsurance transactions excluding any reimbursements from Citi on previously existing reinsurance agreements
(2)	Adjusted direct premiums - direct premiums net of premiums ceded to Citi
(3)	Other ceded premiums - premiums ceded to non-Citi reinsurers net of any applicable reimbursements from Citi

8 of 16

Term Life Insurance - Financial Results and Analysis

PRIMERICA, INC.

Financial Supplement

(Dollars in thousands)																						YOY Q3												YOY YTD
Term Life Insurance Operating Income Before Income Taxes	Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 2014			Q3 2014			$ Change			% Change			YTD 2013			YTD 2014			$ Change			% Change
Revenues:
Direct Premiums	$	552,034		$	559,035		$	557,486		$	560,649		$	559,663		$	567,849		$	568,592			11,106			2.0	%	$	1,668,555		$	1,696,104		$	27,549			1.7	%
Premiums ceded to Citi (1)		(358,625	)		(357,613	)		(351,983	)		(350,077	)		(344,883	)		(344,143	)		(340,170	)		11,813			3.4	%		(1,068,222	)		(1,029,196	)		39,026			3.7	%
Adjusted direct premiums (2)		193,409			201,422			205,503			210,572			214,780			223,706			228,422			22,919			11.2	%		600,333			666,908			66,574			11.1	%
Other ceded premiums (3)		(49,229	)		(56,608	)		(52,476	)		(55,430	)		(55,450	)		(63,424	)		(59,417	)		(6,941	)		-13.2	%		(158,313	)		(178,290	)		(19,977	)		-12.6	%
Net premiums		144,180			144,813			153,027			155,142			159,330			160,282			169,005			15,978			10.4	%		442,020			488,617			46,597			10.5	%
Allocated net investment income		16,670			16,935			17,385			17,807			16,713			16,839			17,235			(150	)		-0.9	%		50,989			50,787			(203	)		-0.4	%
Other, net		6,984			7,436			7,399			7,199			6,937			7,245			7,337			(62	)		-0.8	%		21,819			21,520			(299	)		-1.4	%
Operating revenues		167,833			169,184			177,811			180,147			182,980			184,366			193,577			15,766			8.9	%		514,828			560,924			46,096			9.0	%
Benefits and expenses:
Benefits and claims		65,547			61,689			67,788			67,334			71,263			68,287			77,722			9,934			14.7	%		195,023			217,272			22,250			11.4	%
Amortization of DAC		27,865			25,777			29,679			32,570			32,721			29,778			34,171			4,492			15.1	%		83,320			96,670			13,350			16.0	%
Insurance commissions		1,199			1,062			901			1,437			1,315			929			1,070			169			18.7	%		3,162			3,314			151			4.8	%
Insurance expenses		23,846			24,508			25,125			24,603			26,413			26,293			30,514			5,389			21.5	%		73,478			83,221			9,742			13.3	%
Interest expense		4,252			4,250			4,183			4,161			4,063			4,009			4,168			(15	)		-0.4	%		12,685			12,240			(445	)		-3.5	%
Operating benefits and expenses		122,708			117,285			127,676			130,105			135,776			129,296			147,645			19,969			15.6	%		367,669			412,716			45,047			12.3	%
Operating income before income taxes	$	45,125		$	51,899		$	50,136		$	50,042		$	47,205		$	55,070		$	45,932		$	(4,203	)		-8.4	%	$	147,159		$	148,207		$	1,048			0.7	%

Total Term Life Insurance - Financial Analysis
Primary direct premiums (4)	$	106,077		$	114,407		$	119,852		$	125,394		$	130,855		$	139,973		$	145,636		$	25,784			21.5	%	$	340,336		$	416,464		$	76,127			22.4	%
Legacy direct premiums (5)		445,957			444,628			437,634			435,255			428,809			427,876			422,956			(14,678	)		-3.4	%		1,328,219			1,279,640			(48,579	)		-3.7	%
Total direct premiums	$	552,034		$	559,035		$	557,486		$	560,649		$	559,663		$	567,849		$	568,592		$	11,106			2.0	%	$	1,668,555		$	1,696,104		$	27,549			1.7	%

Premiums ceded to Citi	$	358,625		$	357,613		$	351,983		$	350,077		$	344,883		$	344,143		$	340,170			(11,813	)		-3.4	%	$	1,068,222		$	1,029,196		$	(39,026	)		-3.7	%
% of Legacy direct premiums		80.4	%		80.4	%		80.4	%		80.4	%		80.4	%		80.4	%		80.4	%	nm			nm				80.4	%		80.4	%	nm			nm

Benefits and claims, net (6)	$	114,776		$	118,297		$	120,263		$	122,764		$	126,713		$	131,711		$	137,139			16,875			14.0	%	$	353,336		$	395,563		$	42,227			12.0	%
% of adjusted direct premiums		59.3	%		58.7	%		58.5	%		58.3	%		59.0	%		58.9	%		60.0	%	nm			nm				58.9	%		59.3	%	nm			nm

DAC amortization & insurance commissions	$	29,064		$	26,839		$	30,580		$	34,007		$	34,036		$	30,707		$	35,241			4,661			15.2	%	$	86,483		$	99,984		$	13,501			15.6	%
% of adjusted direct premiums		15.0	%		13.3	%		14.9	%		16.1	%		15.8	%		13.7	%		15.4	%	nm			nm				14.4	%		15.0	%	nm			nm

Insurance expenses, net (7)	$	16,862		$	17,072		$	17,726		$	17,404		$	19,476		$	19,047		$	23,177			5,451			30.8	%	$	51,659		$	61,700		$	10,041			19.4	%
% of adjusted direct premiums		8.7	%		8.5	%		8.6	%		8.3	%		9.1	%		8.5	%		10.1	%	nm			nm				8.6	%		9.3	%	nm			nm

Total term life operating income before income taxes	$	45,125		$	51,899		$	50,136		$	50,042		$	47,205		$	55,070		$	45,932			(4,203	)		-8.4	%	$	147,159		$	148,207		$	1,048			0.7	%
% of adjusted direct premiums		23.3	%		25.8	%		24.4	%		23.8	%		22.0	%		24.6	%		20.1	%	nm			nm				24.5	%		22.2	%	nm			nm

(1)	Premiums ceded to Citi - premiums ceded to Citi under the Citi reinsurance transactions excluding any reimbursements from Citi on previously existing reinsurance agreements
(2)	Adjusted direct premiums - direct premiums net of premiums ceded to Citi
(3)	Other ceded premiums - premiums ceded to non-Citi reinsurers net of any applicable reimbursements from Citi
(4)	Primary direct premiums - direct premiums not subject to the 2010 Citi reinsurance transactions
(5)	Legacy direct premiums - direct premiums subject to the 2010 Citi reinsurance transactions
(6)	Benefits and claims, net - benefits & claims net of other ceded premiums which are largely YRT
(7)	Insurance expenses, net - insurance expenses net of other net revenues

9 of 16

Term Life Insurance - Key Statistics

PRIMERICA, INC.

Financial Supplement

																						YOY Q3												YOY YTD
(Dollars in thousands, except as noted)	Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 2014			Q3 2014			$ Change			% Change			YTD 2013			YTD 2014			$ Change			% Change
Key Statistics

Life-insurance licensed sales force, beginning of period		92,373			90,917			92,227			94,529			95,566			95,382			96,596			4,369			4.7	%		92,373			95,566			3,193			3.5	%
New life-licensed representatives		7,165			8,875			9,630			8,485			7,447			9,082			8,793			(837	)		-8.7	%		25,670			25,322			(348	)		-1.4	%
Non-renewal and terminated representatives		(8,621	)		(7,565	)		(7,328	)		(7,448	)		(7,631	)		(7,868	)		(7,423	)		(95	)		-1.3	%		(23,514	)		(22,922	)		592			2.5	%
Life-insurance licensed sales force, end of period		90,917			92,227			94,529			95,566			95,382			96,596			97,966			3,437			3.6	%		94,529			97,966			3,437			3.6	%

Estimated annualized issued term life premium ($mills) (1):
Premium from new policies	$	40.2		$	45.9		$	43.9		$	43.5		$	40.1		$	48.0		$	44.7		$	0.8			1.8	%	$	130.0		$	132.8		$	2.8			2.2	%
Additions and increases in premium		11.4			12.3			12.3			12.5			12.4			13.0			12.9			0.6			4.7	%		36.0			38.3			2.3			6.3	%
Total estimated annualized issued term life premium	$	51.6		$	58.2		$	56.2		$	56.0		$	52.5		$	61.1		$	57.6		$	1.4			2.4	%	$	166.0		$	171.1		$	5.1			3.1	%

Issued term life policies		50,356			57,622			53,997			52,642			49,320			59,569			55,146			1,149			2.1	%		161,975			164,035			2,060			1.3	%
Estimated average annualized issued term life premium per policy (1)(2)	$	799		$	797		$	813		$	826		$	813		$	806		$	810		$	(3	)		-0.3	%	$	803		$	810		$	7			0.9	%

Term life face amount in-force, beginning of period ($mills)	$	670,412		$	670,414		$	674,355		$	676,360		$	674,868		$	673,078		$	681,978		$	7,623			1.1	%	$	670,412		$	674,868		$	4,456			0.7	%
Issued term life face amount (3)		15,709			17,798			17,056			17,219			15,748			18,494			17,337			282			1.7	%		50,563			51,578			1,015			2.0	%
Terminated term life face amount		(14,917	)		(13,139	)		(14,346	)		(15,329	)		(14,160	)		(12,759	)		(13,866	)		480			3.3	%		(42,402	)		(40,785	)		1,617			3.8	%
Foreign currency impact, net		(790	)		(719	)		(704	)		(3,383	)		(3,378	)		3,166			(4,272	)		(3,568	)	nm				(2,213	)		(4,484	)		(2,271	)	nm
Term life face amount in-force, end of period	$	670,414		$	674,355		$	676,360		$	674,868		$	673,078		$	681,978		$	681,178		$	4,817			0.7	%	$	676,360		$	681,178		$	4,817			0.7	%

(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

10 of 16

Term Life Insurance - New Term / Legacy Format of Financial Results

PRIMERICA, INC.

Financial Supplement

																						YOY Q3												YOY YTD
(Dollars in thousands)	Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 2014			Q3 2014			$ Change			% Change			YTD 2013			YTD 2014			$ Change			% Change
New Term Life Insurance Operating Income Before Income Taxes (1)
Revenues:
Direct premiums	$	106,077		$	114,407		$	119,852		$	125,394		$	130,855		$	139,973		$	145,636		$	25,784			21.5	%	$	340,336		$	416,464		$	76,127			22.4	%
Ceded premiums		(18,577	)		(20,927	)		(18,937	)		(19,934	)		(23,400	)		(25,838	)		(24,248	)		(5,311	)		-28.0	%		(58,441	)		(73,487	)		(15,045	)		-25.7	%
Net premiums		87,501			93,479			100,915			105,460			107,455			114,135			121,388			20,473			20.3	%		281,895			342,977			61,082			21.7	%
Allocated net investment income		3,513			3,941			4,438			5,055			5,182			5,734			6,023			1,585			35.7	%		11,892			16,939			5,047			42.4	%
Other, net		6,957			7,366			7,304			7,128			6,924			7,315			7,311			7			0.1	%		21,627			21,549			(78	)		-0.4	%
Operating revenues		97,971			104,786			112,657			117,643			119,561			127,183			134,721			22,065			19.6	%		315,413			381,465			66,052			20.9	%
Benefits and expenses:
Benefits and claims		32,124			33,764			39,105			40,357			40,597			40,773			47,049			7,944			20.3	%		104,993			128,418			23,425			22.3	%
Amortization of DAC		17,759			17,091			20,417			23,817			23,470			21,267			24,943			4,526			22.2	%		55,267			69,679			14,412			26.1	%
Insurance commissions		817			691			493			573			911			534			648			155			31.5	%		2,001			2,093			92			4.6	%
Insurance expenses		31,613			32,550			33,040			33,567			34,961			34,935			38,690			5,650			17.1	%		97,203			108,586			11,383			11.7	%
Interest expense		361			403			422			464			483			511			735			313			74.2	%		1,185			1,729			544			45.9	%
Operating benefits and expenses		82,674			84,499			93,477			98,777			100,422			98,020			112,064			18,588			19.9	%		260,650			310,506			49,856			19.1	%
Operating income before income taxes	$	15,296		$	20,287		$	19,180		$	18,866		$	19,138		$	29,163		$	22,657		$	3,477			18.1	%	$	54,763		$	70,959		$	16,195			29.6	%

New Term Life Insurance - Financial Analysis (1)
Direct premium	$	106,077		$	114,407		$	119,852		$	125,394		$	130,855		$	139,973		$	145,636			25,784			21.5	%		340,336			416,464			76,127			22.4	%

New term life operating income before income taxes	$	15,296		$	20,287		$	19,180		$	18,866		$	19,138		$	29,163		$	22,657			3,477			18.1	%		54,763			70,959			16,195			29.6	%
% of direct premium		14.4	%		17.7	%		16.0	%		15.0	%		14.6	%		20.8	%		15.6	%	nm			nm				16.1	%		17.0	%	nm			nm

Benefits & expenses, net (2)	$	69,277		$	72,474		$	78,952		$	84,680		$	88,377		$	88,412		$	96,888			17,936			22.7	%		220,703			273,677			52,974			24.0	%
% of direct premium		65.3	%		63.3	%		65.9	%		67.5	%		67.5	%		63.2	%		66.5	%	nm			nm				64.8	%		65.7	%	nm			nm

Insurance expenses, net (3)	$	24,656		$	25,184		$	25,736		$	26,439		$	28,038		$	27,620		$	31,379			5,643			21.9	%		75,576			87,037			11,461			15.2	%
% of direct premium		23.2	%		22.0	%		21.5	%		21.1	%		21.4	%		19.7	%		21.5	%	nm			nm				22.2	%		20.9	%	nm			nm

Legacy Term Life Insurance Operating Income Before Income Taxes (4)
Revenues:
Direct premiums	$	445,957		$	444,628		$	437,634		$	435,255		$	428,809		$	427,876		$	422,956		$	(14,678	)		-3.4	%	$	1,328,219		$	1,279,640		$	(48,579	)		-3.7	%
Ceded premiums		(389,277	)		(393,294	)		(385,522	)		(385,572	)		(376,934	)		(381,728	)		(375,338	)		10,183			2.6	%		(1,168,093	)		(1,134,000	)		34,093			2.9	%
Net premiums		56,679			51,334			52,112			49,682			51,875			46,148			47,617			(4,494	)		-8.6	%		160,125			145,640			(14,485	)		-9.0	%
Allocated net investment income		13,156			12,994			12,947			12,752			11,531			11,105			11,212			(1,736	)		-13.4	%		39,098			33,848			(5,250	)		-13.4	%
Other, net		27			70			96			70			14			(69	)		27			(69	)		-72.0	%		192			(29	)		(221	)		-115.0	%
Operating revenues		69,863			64,397			65,155			62,504			63,420			57,183			58,856			(6,299	)		-9.7	%		199,415			179,459			(19,956	)		-10.0	%
Benefits and expenses:
Benefits and claims		33,422			27,925			28,683			26,977			30,666			27,514			30,673			1,991			6.9	%		90,030			88,854			(1,176	)		-1.3	%
Amortization of DAC		10,105			8,686			9,262			8,753			9,252			8,511			9,228			(34	)		-0.4	%		28,053			26,991			(1,062	)		-3.8	%
Insurance commissions		383			371			408			865			404			395			421			13			3.3	%		1,161			1,220			59			5.1	%
Insurance expenses		9,128			8,598			8,490			7,203			7,664			7,384			7,666			(823	)		-9.7	%		26,216			22,714			(3,502	)		-13.4	%
Insurance expense allowance		(16,896	)		(16,640	)		(16,405	)		(16,168	)		(16,212	)		(16,025	)		(15,842	)		563			3.4	%		(49,940	)		(48,079	)		1,861			3.7	%
Interest expense		3,892			3,847			3,761			3,698			3,580			3,498			3,433			(328	)		-8.7	%		11,500			10,510			(990	)		-8.6	%
Operating benefits and expenses		40,034			32,786			34,199			31,329			35,354			31,276			35,580			1,382			4.0	%		107,019			102,210			(4,809	)		-4.5	%
Operating income before income taxes	$	29,829		$	31,611		$	30,956		$	31,176		$	28,066		$	25,907		$	23,275		$	(7,681	)		-24.8	%	$	92,396		$	77,249		$	(15,147	)		-16.4	%

Legacy Term Life Insurance - Financial Analysis (4)
Direct premium	$	445,957		$	444,628		$	437,634		$	435,255		$	428,809		$	427,876		$	422,956			(14,678	)		-3.4	%		1,328,219			1,279,64			(48,579	)		-3.7	%

Legacy term life operating income before income taxes	$	29,829		$	31,611		$	30,956		$	31,176		$	28,066		$	25,907		$	23,275			(7,681	)		-24.8	%		92,396			77,249			(15,147	)		-16.4	%
% of direct premium		6.7	%		7.1	%		7.1	%		7.2	%		6.5	%		6.1	%		5.5	%	nm			nm				7.0	%		6.0	%	nm			nm

(1)	Represents results associated with business not subject to the 2010 Citi reinsurance transactions.
(2)	Benefits & expenses, net - includes total benefits & claims, ceded premiums, insurance commissions, and amortization of deferred policy acquisition costs
(3)	Insurance expenses, net - insurance expenses, net of other net revenues
(4)	Represents results associated with business subject to the 2010 Citi reinsurance transactions.

11 of 16

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 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 2014			Q3 2014			$ Change			% Change			YTD 2013			YTD 2014			$ Change			% Change
Revenues:
Commissions and fees:
Sales-based	$	49,656		$	52,108		$	51,934		$	54,386		$	57,904		$	60,255		$	58,394		$	6,460			12.4	%	$	153,698		$	176,554		$	22,855			14.9	%
Asset-based		47,490			49,492			51,037			53,493			53,807			56,114			58,744			7,707			15.1	%		148,018			168,665			20,647			13.9	%
Account-based		9,453			9,588			9,811			10,010			9,720			9,957			10,251			440			4.5	%		28,852			29,928			1,076			3.7	%
Other, net		2,122			2,173			1,941			2,444			1,839			1,821			1,884			(57	)		-2.9	%		6,236			5,543			(693	)		-11.1	%
Operating revenues		108,721			113,361			114,723			120,333			123,270			128,147			129,273			14,550			12.7	%		336,805			380,690			43,885			13.0	%
Benefits and expenses:
Amortization of DAC		2,892			3,876			2,542			1,885			2,335			2,172			2,484			(58	)		-2.3	%		9,310			6,991			(2,319	)		-24.9	%
Insurance commissions		2,274			2,331			2,249			2,193			2,086			2,237			2,290			42			1.8	%		6,853			6,614			(239	)		-3.5	%
Sales commissions:
Sales-based		35,373			36,702			36,266			38,190			41,563			42,702			41,193			4,927			13.6	%		108,341			125,458			17,117			15.8	%
Asset-based		16,668			17,807			18,805			19,988			20,725			21,859			23,378			4,573			24.3	%		53,280			65,962			12,683			23.8	%
Other operating expenses		25,162			24,971			23,362			22,716			22,532			23,131			23,024			(338	)		-1.4	%		73,495			68,687			(4,808	)		-6.5	%
Operating benefits and expenses		82,368			85,686			83,224			84,972			89,243			92,100			92,369			9,145			11.0	%		251,279			273,712			22,433			8.9	%
Operating income before income taxes	$	26,353		$	27,675		$	31,498		$	35,361		$	34,028		$	36,047		$	36,904		$	5,406			17.2	%	$	85,527		$	106,978		$	21,452			25.1	%


Key Statistics
Product sales ($mills)
Retail Mutual Funds	$	711.9		$	722.7		$	648.2		$	683.3		$	821.4		$	820.9		$	762.8		$	114.7			17.7	%	$	2,082.8		$	2,405.1		$	322.4			15.5	%
Indexed Annuities		92.9			111.7			104.4			104.0			84.2			84.7			62.0			(42.5	)		-40.7	%		309.1			230.9			(78.2	)		-25.3	%
Variable Annuities and other		388.1			361.5			388.0			384.3			365.8			417.1			434.2			46.2			11.9	%		1,137.7			1,217.1			79.3			7.0	%
Total sales-based revenue generating product sales		1,193.0			1,195.9			1,140.6			1,171.5			1,271.4			1,322.7			1,259.0			118.4			10.4	%		3,529.5			3,853.1			323.5			9.2	%
Managed Accounts		56.7			57.5			57.1			53.8			62.8			65.3			66.3			9.2			16.1	%		171.3			194.5			23.2			13.5	%
Segregated Funds		115.6			64.3			51.0			51.7			76.6			51.1			51.2			0.2			0.5	%		230.9			179.0			(51.9	)		-22.5	%
Total product sales	$	1,365.3		$	1,317.7		$	1,248.7		$	1,277.1		$	1,410.8		$	1,439.2		$	1,376.5		$	127.8			10.2	%	$	3,931.7		$	4,226.5		$	294.8			7.5	%

Client asset values, beginning of period ($mills)	$	37,386		$	39,853		$	40,166		$	42,177		$	44,990		$	45,839		$	48,008		$	7,842			19.5	%	$	37,386		$	44,990		$	7,604			20.3	%
Inflows		1,365			1,318			1,249			1,277			1,411			1,439			1,377			128			10.2	%		3,932			4,227			295			7.5	%
Outflows (1)		(1,283	)		(1,165	)		(1,140	)		(1,146	)		(1,246	)		(1,211	)		(1,206	)		(66	)		-5.8	%		(3,587	)		(3,663	)		(76	)		-2.1	%
Net flows		82			153			109			131			165			228			171			61		nm				345			564			219		nm
Change in market value, net and other (2)		2,384			161			1,901			2,682			683			1,941			(780	)		(2,681	)	nm				4,446			1,845			(2,601	)	nm
Client asset values, end of period	$	39,853		$	40,166		$	42,177		$	44,990		$	45,839		$	48,008		$	47,399		$	5,222			12.4	%	$	42,177		$	47,399		$	5,222			12.4	%
Annualized net flows as % of beginning of period asset values		0.9	%		1.5	%		1.1	%		1.2	%		1.5	%		2.0	%		1.4	%		0.3	%	nm				1.2	%		1.7	%		0.4	%	nm

Average client asset values ($mills)
Retail Mutual Funds	$	25,170		$	26,041		$	26,478		$	28,122		$	28,842		$	29,829		$	30,457		$	3,979			15.0	%	$	25,896		$	29,709		$	3,813			14.7	%
Managed Accounts		652			786			882			1,004			1,095			1,203			1,287			404			45.8	%		774			1,195			421			54.4	%
Indexed Annuities		441			545			648			750			839			921			986			338			52.1	%		545			915			370			68.0	%
Variable Annuities and other		9,869			10,352			10,687			11,410			11,839			12,152			12,548			1,861			17.4	%		10,303			12,180			1,877			18.2	%
Segregated Funds		2,624			2,601			2,529			2,546			2,449			2,507			2,547			18			0.7	%		2,585			2,501			(84	)		-3.2	%
Total	$	38,756		$	40,326		$	41,225		$	43,832		$	45,063		$	46,611		$	47,825		$	6,601			16.0	%	$	40,102		$	46,500		$	6,398			16.0	%

Average number of fee-generating accounts (thous) (3)
Recordkeeping and custodial accounts		1,940			1,946			1,955			1,975			1,991			2,011			2,026			71			3.6	%		1,947			2,009			62			3.2	%
Recordkeeping only accounts		596			576			582			590			596			604			611			28			4.9	%		585			603			19			3.2	%
Total		2,536			2,522			2,537			2,566			2,587			2,614			2,636			99			3.9	%		2,532			2,612			81			3.2	%


Financial Analysis

Sales-based net revenue as % of revenue-generating sales (4)		1.20	%		1.29	%		1.37	%		1.38	%		1.29	%		1.33	%		1.37	%	nm			nm				1.29	%		1.33	%	nm			nm

Asset-based net revenue as % of average asset values (5)		0.07	%		0.06	%		0.07	%		0.07	%		0.06	%		0.06	%		0.06	%	nm			nm				0.20	%		0.19	%	nm			nm

Account-based revenue per average fee generating account (6)	$	3.73		$	3.80		$	3.87		$	3.90		$	3.76		$	3.81		$	3.89		nm			nm			$	11.40		$	11.46		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

12 of 16

Investment Portfolio - Summary of Holdings

PRIMERICA, INC.

Financial Supplement

	As of or for the period ended September 30, 2014
								% 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	$	165,072	$	165,072	$	-			8.2	%		8.7	%

Fixed Income:
Treasury		31,079		30,938		141			1.5	%		1.6	%		2.88	%	AAA
Government		134,268		127,817		6,450			6.7	%		6.7	%		4.31	%	AA
Tax-Exempt Municipal		5,027		5,020		7			0.2	%		0.3	%		3.25	%	AA-
Corporate		1,218,839		1,140,757		78,082			60.6	%		60.0	%		4.98	%	BBB+
Mortgage-Backed		124,622		115,558		9,064			6.2	%		6.1	%		4.89	%	AAA
Asset-Backed		90,367		90,289		79			4.5	%		4.8	%		0.69	%	AA+
CMBS		83,791		79,920		3,871			4.2	%		4.2	%		3.91	%	AAA
Private		104,594		99,725		4,869			5.2	%		5.2	%		5.23	%	BBB
Redeemable Preferred		2,407		2,746		(339	)		0.1	%		0.1	%		19.65	%	A-
Convertible		2,067		1,670		397			0.1	%		0.1	%		5.50	%	BBB
Total Fixed Income		1,797,060		1,694,440		102,620			89.3	%		89.2	%		4.62	%	A

Equities:
Perpetual Preferred		14,851		14,051		800			0.7	%		0.7	%
Common Stock		22,834		16,553		6,281			1.1	%		0.9	%
Mutual Fund		5,994		3,767		2,227			0.3	%		0.2	%
Other		6,454		6,454		0			0.3	%		0.3	%
Total Equities		50,133		40,824		9,309			2.5	%		2.1	%

Total Invested Assets	$	2,012,265	$	1,900,336	$	111,929			100.0	%		100.0	%

Corporate Portfolio by Sector

Energy	$	147,734	$	138,839	$	8,895			12.1	%		12.2	%
Consumer Non Cyclical		140,415		130,492		9,924			11.5	%		11.4	%
Reits		133,290		126,188		7,102			10.9	%		11.1	%
Basic Industry		109,129		102,910		6,219			9.0	%		9.0	%
Electric		107,601		96,592		11,009			8.8	%		8.5	%
Banking		101,146		98,085		3,060			8.3	%		8.6	%
Insurance		82,229		75,167		7,061			6.7	%		6.6	%
Technology		80,447		76,560		3,887			6.6	%		6.7	%
Communications		72,642		66,980		5,662			6.0	%		5.9	%
Capital Goods		70,680		65,385		5,295			5.8	%		5.7	%
Consumer Cyclical		49,187		46,502		2,685			4.0	%		4.1	%
Transportation		39,983		38,443		1,540			3.3	%		3.4	%
Brokerage		25,957		24,070		1,887			2.1	%		2.1	%
Brokerage		19,284		17,678		1,606			1.6	%		1.5	%
Industrial Other		19,008		18,125		882			1.6	%		1.6	%
Natural Gas		10,805		9,650		1,155			0.9	%		0.8	%
Financial Other		9,302		9,091		212			0.8	%		0.8	%
Total Corporate Portfolio	$	1,218,839	$	1,140,757	$	78,082			100.0	%		100.0	%
	Error		Error
Fixed-Maturity Securities - Effective Maturity

Effective maturity
< 1 Yr.	$	200,818	$	197,921	$	2,897			11.2	%		11.7	%		3.34	%
1-2 Yrs.		119,862		116,410		3,452			6.7	%		6.9	%		4.27	%
2-5 Yrs.		648,466		590,486		57,980			36.1	%		34.8	%		5.37	%
5-10 Yrs.		774,389		741,184		33,204			43.1	%		43.7	%		4.43	%
> 10 Yrs.		53,525		48,438		5,087			3.0	%		2.9	%		5.11	%
Total Fixed Income	$	1,797,060	$	1,694,440	$	102,620			100.0	%		100.0	%		4.64	%

Duration

Fixed Income portfolio duration		4.2	years

Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

13 of 16

Investment Portfolio - Quality Ratings As of September 30, 2014

PRIMERICA, INC.

Financial Supplement

(Dollars in thousands)
Investment Portfolio Quality Ratings (1)
		Amortized Cost	% of Total
Total Fixed Income portfolio:
Rating
AAA	$	291,813	17.2	%
AA		114,712	6.8	%
A		389,616	23.0	%
BBB		814,245	48.1	%
Below Investment Grade		83,547	4.9	%
NA		507	0.0	%
Total Fixed Income	$	1,694,440	100.0	%




		Amortized Cost	% of Total				Amortized Cost	% of Total
Corporate asset class:					Private asset class:
Rating					Rating
AAA	$	4,313	0.4	%	AAA	$	119	0.1	%
AA		57,051	5.0	%	AA		4,180	4.2	%
A		300,077	26.3	%	A		3,616	3.6	%
BBB		707,879	62.1	%	BBB		85,689	85.9	%
Below Investment Grade		71,260	6.2	%	Below Investment Grade		6,120	6.1	%
NA		178	0.0	%	NA		-	—
Total Corporate	$	1,140,757	100.0	%	Total Private	$	99,725	100.0	%



CMBS asset class:					Mortgage-Backed asset class:
Rating					Rating
AAA	$	71,351	89.3	%	AAA	$	108,921	94.3	%
AA		2,430	3.0	%	AA		2,933	2.5	%
A		582	0.7	%	A		1,541	1.3	%
BBB		4,285	5.4	%	BBB		2,164	1.9	%
Below Investment Grade		1,272	1.6	%	Below Investment Grade		-	—
NA		0	0.0	%	NA		-	—
Total CMBS	$	79,920	100.0	%	Total Mortgage-Backed	$	115,558	100.0	%



Asset-Backed asset class:					Treasury & Government asset classes:
Rating					Rating
AAA	$	48,135	53.3	%	AAA	$	58,382	36.8	%
AA		1,932	2.1	%	AA		47,079	29.7	%
A		39,609	43.9	%	A		42,701	26.9	%
BBB		170	0.2	%	BBB		10,593	6.7	%
Below Investment Grade		443	0.5	%	Below Investment Grade		-	—
NA		-	—		NA		-	—
Total Asset-Backed	$	90,289	100.0	%	Total Treasury & Government	$	158,755	100.0	%


NAIC Designations

1	$	604,264	41.1	%
2		786,007	53.4	%
3		62,389	4.2	%
4		10,809	0.7	%
5		7,537	0.5	%
6		632	0.0	%
U.S. Insurer Fixed Income (2)		1,471,638	100.0	%
Other (3)		263,626
Cash and cash equivalents		165,072
Total Invested Assets	$	1,900,336

(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

Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

14 of 16

Investment Portfolio - Supplemental Data and Trends

PRIMERICA, INC.

Financial Supplement

																						YOY Q3
(Dollars in thousands)		Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 2014			Q3 2014		$ Change			% Change
Net Investment Income by Source
Fixed-maturity securities (available-for-sale)	$	23,210		$	22,648		$	21,785		$	22,217		$	21,032		$	20,454		$	19,634			(2,151	)		-9.9	%
Fixed-maturity securities (held-to-maturity)		—			—			—			—			—			—			1,299			1,299		nm
Equity Securities		272			292			277			345			385			471			450			173			62.5	%
Deposit asset underlying 10% reinsurance treaty		563			(1,061	)		829			607			953			1,490			(127	)		(956	)	nm
Policy loans and other invested assets		320			327			325			391			388			398			1,666			1,341			412.6	%
Cash & cash equivalents		88			73			54			57			53			68			70			16			29.6	%
Total investment income		24,453			22,279			23,270			23,617			22,811			22,881			22,992			(278	)		-1.2	%
Investment expenses		1,237			1,252			1,167			1,211			1,212			1,200			1,228			61			5.2	%
Interest Expense on Surplus Note		—			—			—			—			—			—			1,299			1,299		nm
Net investment income	$	23,216		$	21,027		$	22,103		$	22,406		$	21,599		$	21,681		$	20,465			(1,638	)		-7.4	%
Fixed income book yield, end of period		5.28	%		5.29	%		5.19	%		4.93	%		4.87	%		4.76	%		4.62	%		—			—
New money yield		2.75	%		2.91	%		3.78	%		3.01	%		3.61	%		2.55	%		2.29	%		—			—

																						YOY Q3
		Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 2014			Q3 2014		% Pt Change
Fixed Income Portfolio Quality Ratings
Rating
AAA		17.7	%		17.5	%		16.5	%		17.7	%		17.1	%		16.7	%		17.2	%		0.7	%
AA		7.7	%		7.7	%		8.0	%		7.9	%		7.8	%		8.3	%		6.8	%		-1.3	%
A		23.6	%		22.9	%		23.3	%		23.0	%		22.8	%		22.1	%		23.0	%		-0.3	%
BBB		45.7	%		46.5	%		46.7	%		46.2	%		47.5	%		47.5	%		48.1	%		1.4	%
Below Investment Grade		5.3	%		5.3	%		5.4	%		4.8	%		4.6	%		4.9	%		4.9	%		-0.4	%
NA		0.0	%		0.1	%		0.1	%		0.4	%		0.1	%		0.4	%		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, 2014								As of September 30, 2014					As of September 30, 2014
		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	$	27,938		$	28,372		AAA	United Kingdom	$	61,523	$	58,345	AAA	$	750	$	750
2	General Electric Co		19,639			16,864		AA-	Canada		44,031		41,476	AA		9,199		8,400
3	Province of Ontario Canada		11,086			10,386		AA-	Australia		39,300		36,527	A		19,327		18,168
4	Washington Real Estate Investment		10,986			10,521		BBB	Brazil		21,722		20,937	BBB		11,316		10,593
5	Wells Fargo & Co		10,592			10,391		A	France		19,695		18,718	Below Investment Grade		—		—
6	National Rural Utilities Cooperative		9,708			7,472		A+	Ireland		13,523		12,248	NA		—		—
7	Iberdrola SA		9,480			8,471		BBB+	Bermuda		13,333		12,885	Total	$	40,592	$	37,911
8	Enel SpA		7,752			6,983		BBB	Korea Republic Of		12,789		9,029
9	National Fuel Gas Co		7,669			6,558		BBB	Netherlands		10,669		10,203
10	Vale SA		7,642			7,096		A-	Italy		10,276		9,482	Non-Government Investments (1)
11	Discover Financial Services		7,601			6,550		BBB-	Korea Republic Of		9,608		9,029
12	Altria Group Inc		7,596			6,219		BBB+	Germany		9,496		9,236	AAA	$	—	$	—
13	ArcelorMittal		7,563			6,613		BB+	Mexico		9,301		8,579	AA		19,630		18,406
14	Western Union Co/The		7,481			7,283		BBB	Luxembourg		8,250		7,840	A		85,037		80,542
15	TTX Co		7,349			7,243		A-	Hong Kong		7,772		6,813	BBB		184,575		173,091
16	TransCanada Corp		7,329			7,187		A-	Emerging Markets (2)		14,520		13,884	Below Investment Grade		17,691		16,531
17	Tesco PLC		6,961			6,346		BBB	All Other		42,273		42,074	NA		557		825
18	International Business Machines		6,894			6,189		AA-	Total	$	348,082	$	327,306	Total	$	307,490	$	289,395
19	Republic of Korea		6,889			6,381		A+
20	Phillips 66		6,866			6,109		BBB
21	Senior Housing Properties Trust		6,731			6,287		BBB-
22	Province of Quebec Canada		6,727			6,099		AA-
23	Duke Realty Corp		6,507			6,104		BBB
24	Total SA		6,442			6,343		AA-
25	Verizon Communications Inc		6,435			5,706		BBB+
	Total	$	227,861		$	209,773

	% of total fixed income portfolio		11.3	%		11.0	%

(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

Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

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Five-Year Historical Key Statistics

PRIMERICA, INC.

Financial Supplement

(Dollars in millions)	2009			2010			2011			2012			2013				Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 2014			Q3 2014


Recruits		221,920			231,390			244,756			191,752			186,251			46,348			50,358			51,523			38,022			48,306			50,024			49,055


Life-insurance licensed sales force, beginning of period		100,651			99,785			94,850			91,176			92,373			92,373			90,917			92,227			94,529			95,566			95,382			96,596
New life-licensed representatives		37,629			34,488			33,711			34,425			34,155			7,165			8,875			9,630			8,485			7,447			9,082			8,793
Non-renewal and terminated representatives		(38,495	)		(39,423	)		(37,385	)		(33,228	)		(30,962	)		(8,621	)		(7,565	)		(7,328	)		(7,448	)		(7,631	)		(7,868	)		(7,423	)
Life-insurance licensed sales force, end of period		99,785			94,850			91,176			92,373			95,566			90,917			92,227			94,529			95,566			95,382			96,596			97,966


Issued term life policies		233,837			223,514			237,535			222,558			214,617			50,356			57,622			53,997			52,642			49,320			59,569			55,146


Issued term life face amount	$	80,497		$	74,401		$	73,146		$	68,053		$	67,783		$	15,709		$	17,798		$	17,056		$	17,219		$	15,748		$	18,494		$	17,337


Term life face amount in force, beginning of period	$	633,467		$	650,195		$	656,791		$	664,955		$	670,412		$	670,412		$	670,414		$	674,355		$	676,360		$	674,868		$	673,078		$	681,978
Issued term life face amount		80,497			74,401			73,146			68,053			67,783			15,709			17,798			17,056			17,219			15,748			18,494			17,337
Terminated term life face amount		(74,642	)		(70,964	)		(66,951	)		(61,593	)		(57,730	)		(14,917	)		(13,139	)		(14,346	)		(15,329	)		(14,160	)		(12,759	)		(13,866	)
Foreign currency impact, net		10,873			3,158			1,970			(1,003	)		(5,596	)		(790	)		(719	)		(704	)		(3,383	)		(3,378	)		3,166			(4,272	)
Term life face amount in force, end of period	$	650,195		$	656,791		$	664,955		$	670,412		$	674,868		$	670,414		$	674,355		$	676,360		$	674,868		$	673,078		$	681,978		$	681,178


Estimated annualized issued term life premium
Premium from new policies	$	193.7		$	180.8		$	187.6		$	176.1		$	173.5		$	40.2		$	45.9		$	43.9		$	43.5		$	40.1		$	48.0		$	44.7
Additions and increases in premium		42.6			44.6			44.9			45.5			48.6			11.4			12.3			12.3			12.5			12.4			13.0			12.9
Total estimated annualized issued term life premium	$	236.3		$	225.4		$	232.5		$	221.5		$	222.1		$	51.6		$	58.2		$	56.2		$	56.0		$	52.5		$	61.1		$	57.6


Investment & Savings product sales	$	3,006.6		$	3,623.6		$	4,265.1		$	4,712.2		$	5,208.8		$	1,365.3		$	1,317.7		$	1,248.7		$	1,277.1		$	1,410.8		$	1,439.2		$	1,376.5

Investment & Savings average client asset values	$	26,845		$	31,908		$	34,870		$	35,904		$	41,035		$	38,756		$	40,326		$	41,225		$	43,832		$	45,063		$	46,611		$	47,825

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Primerica, Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - November 4, 2014

Attached files

Primerica, Inc. Reports