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

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8-K - PRIMERICA, INC. 8-K - Primerica, Inc.	a51095615.htm
EX-99.1 - EXHIBIT 99.1 - Primerica, Inc.	a51095615ex99_1.htm

Exhibit 99.2

Supplemental Financial Information

First Quarter 2015

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, financial analysis, and key statistics	11-12

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, 2014.

2 of 16

Preface

PRIMERICA, INC.

Financial Supplement

FIRST QUARTER 2015

This document is a financial supplement to our first quarter 2015 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 impact of realized investment gains and losses and the impact of entering into Co-CEOs transition agreements as described in our Form 8-K dated January 2, 2015.

●	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		FY 2014			Q1 2014		Q2 2014		Q3 2014			Q4 2014
Direct premiums	$	40,465		$	36,943	$	36,878	$	—	$	—	$	—	$	—		$	—
Benefits and claims		30,170			24,699		21,543		—		—		—		—			—
Insurance commissions		6,405			5,831		5,941		—		—		—		—			—
Insurance expenses		5,099			5,647		3,202		—		—		—		—			—
Net gain on sale		—			—		—		2,427		2,455		—		(28	)		—
Income before income taxes		(1,209	)		766		6,192		2,427		2,455		—		(28	)		—
Net Income	$	(783	)	$	497	$	4,025	$	1,578	$	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.

3 of 16

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

PRIMERICA, INC.

Financial Supplement

(Dollars in thousands)	Dec 31, 2013			Mar 31, 2014			Jun 30, 2014			Sep 30, 2014			Dec 31, 2014			Mar 31, 2015
Condensed Balance Sheets
Assets:
Investments and cash excluding securities held to maturity	$	1,984,592		$	2,014,610		$	2,042,834		$	2,039,759		$	2,040,832		$	2,056,975
Securities held to maturity		—			—			—			189,830			220,000			238,000
Total investments and cash		1,984,592			2,014,610			2,042,834			2,229,589			2,260,832			2,294,975
Due from reinsurers		4,055,054			4,074,527			4,077,734			4,130,637			4,115,533			4,094,456
Deferred policy acquisition costs		1,208,466			1,242,983			1,293,974			1,321,415			1,351,180			1,377,022
Other assets		578,009			597,265			597,348			591,895			570,267			571,496
Separate account assets		2,503,829			2,458,739			2,581,659			2,469,118			2,440,303			2,386,265
Total assets	$	10,329,950		$	10,388,124		$	10,593,549		$	10,742,654		$	10,738,114		$	10,724,214

Liabilities:
Future policy benefits	$	5,063,103		$	5,103,278		$	5,180,013		$	5,214,878		$	5,264,608		$	5,289,016
Other policy liabilities		593,084			585,217			576,737			630,248			610,057			602,291
Income taxes		105,885			127,906			137,797			136,065			140,467			157,684
Other liabilities		377,689			375,864			346,535			365,900			392,810			381,369
Notes payable		374,481			374,494			374,506			374,519			374,532			374,545
Surplus note		—			—			—			189,830			220,000			238,000
Payable under securities lending		89,852			109,094			93,569			67,614			50,211			55,622
Separate account liabilities		2,503,829			2,458,739			2,581,659			2,469,118			2,440,303			2,386,265
Total liabilities		9,107,923			9,134,591			9,290,818			9,448,172			9,492,988			9,484,792
Stockholders’ equity:
Common stock ($0.01 par value) (1)		548			546			542			537			522			516
Paid-in capital		472,632			462,837			447,949			429,257			353,335			323,996
Retained earnings		640,840			679,183			721,788			756,738			795,741			830,624
Treasury stock		—			—			—			—			—			—
Accumulated other comprehensive income (loss), net:
Net unrealized investment gains (losses) not other-than-temporarily impaired		67,378			78,911			92,049			78,130			74,307			83,401
Net unrealized investment losses other-than-temporarily impaired		(1,346	)		(1,346	)		(1,346	)		(461	)		(461	)		(461	)
Cumulative translation adjustment		41,975			33,404			41,749			30,282			21,682			1,346
Total stockholders’ equity		1,222,027			1,253,532			1,302,731			1,294,482			1,245,126			1,239,422
Total liabilities and stockholders' equity	$	10,329,950		$	10,388,124		$	10,593,549		$	10,742,654		$	10,738,114		$	10,724,214

Reconciliation of Adjusted Stockholders' Equity to Total Stockholders' Equity
Adjusted stockholders' equity	$	1,155,996		$	1,175,968		$	1,212,028		$	1,216,813		$	1,171,280		$	1,156,482
Reconciling items:
Net unrealized investment gains (losses) not other-than-temporarily impaired		67,378			78,911			92,049			78,130			74,307			83,401
Net unrealized investment losses other-than-temporarily impaired		(1,346	)		(1,346	)		(1,346	)		(461	)		(461	)		(461	)
Total reconciling items		66,032			77,564			90,703			77,669			73,846			82,940
Total stockholders’ equity	$	1,222,027		$	1,253,532		$	1,302,731		$	1,294,482		$	1,245,126		$	1,239,422

Adjusted Stockholders' Equity Rollforward
Balance, beginning of period	$	1,123,780		$	1,155,996		$	1,175,968		$	1,212,028		$	1,216,813		$	1,171,280
Net Income		37,201			45,080			49,271			41,595			45,466			43,401
Shareholder dividends		(6,138	)		(6,738	)		(6,666	)		(6,646	)		(6,462	)		(8,517	)
Retirement of shares and warrants		—			(19,187	)		(21,972	)		(30,694	)		(82,447	)		(44,789	)
Net foreign currency translation adjustment		(6,697	)		(8,571	)		8,346			(11,468	)		(8,600	)		(20,336	)
Other, net		7,850			9,389			7,081			11,997			6,510			15,444
Balance, end of period	$	1,155,996		$	1,175,968		$	1,212,028		$	1,216,813		$	1,171,280		$	1,156,482

Deferred Policy Acquisition Costs Rollforward
Balance, beginning of period	$	1,179,143		$	1,208,466		$	1,242,983		$	1,293,974		$	1,321,415		$	1,351,180
General expenses deferred		7,396			7,273			8,136			7,147			8,171			7,953
Commission costs deferred		63,828			69,559			68,674			66,602			67,980			70,389
Amortization of deferred policy acquisition costs		(35,627	)		(35,193	)		(32,696	)		(36,944	)		(39,544	)		(36,213	)
Foreign currency impact and other, net		(6,274	)		(7,122	)		6,877			(9,363	)		(6,842	)		(16,287	)
Balance, end of period	$	1,208,466		$	1,242,983		$	1,293,974		$	1,321,415		$	1,351,180		$	1,377,022

(1)	Outstanding common shares exclude restricted stock units.

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Financial Results and Other Statistical Data

PRIMERICA, INC.

Financial Supplement

																YOY Q1
(Dollars in thousands, except per-share data)	Q1 2014			Q2 2014				Q3 2014			Q4 2014			Q1 2015			Change		% Change
Earnings per Share
Basic earnings per share:
Weighted-average common shares and fully vested equity awards		55,224,404			54,926,561			54,712,874			53,420,998			52,642,881			(2,581,523	)	-4.8	%

Net income	$	45,080		$	49,271		$	41,595		$	45,466		$	43,401		$	(1,680	)	-3.7	%
Less income attributable to unvested participating securities		(576	)		(542	)		(447	)		(491	)		(444	)		132		26.9	%
Net income used in computing basic EPS	$	44,504		$	48,729		$	41,147		$	44,975		$	42,956		$	(1,547	)	-3.4	%
Basic earnings per share	$	0.81		$	0.89		$	0.75		$	0.84		$	0.82		$	0.01		1.2	%

Net operating income	$	43,314		$	48,731		$	41,796		$	48,953		$	42,566		$	(747	)	-1.5	%
Less operating income attributable to unvested participating securities		(554	)		(536	)		(450	)		(529	)		(436	)		118		22.3	%
Net operating income used in computing basic operating EPS	$	42,760		$	48,194		$	41,346		$	48,424		$	42,131		$	(630	)	-1.3	%
Basic operating income per share	$	0.77		$	0.88		$	0.76		$	0.91		$	0.80		$	0.03		2.9	%

Diluted earnings per share:
Weighted-average common shares and fully vested equity awards		55,224,404			54,926,561			54,712,874			53,420,998			52,642,881			(2,581,523	)	-4.8	%
Dilutive impact of warrants and options		21,997			23,046			30,983			49,455			48,104			26,107		52.8	%
Shares used to calculate diluted EPS		55,246,401			54,949,607			54,743,857			53,470,453			52,690,985			(2,555,416	)	-4.8	%

Net income	$	45,080		$	49,271		$	41,595		$	45,466		$	43,401		$	(1,680	)	-3.7	%
Less income attributable to unvested participating securities		(576	)		(542	)		(447	)		(491	)		(444	)		132		26.9	%
Net income used in computing diluted EPS	$	44,504		$	48,729		$	41,148		$	44,975		$	42,957		$	(1,547	)	-3.4	%
Diluted earnings per share	$	0.81		$	0.89		$	0.75		$	0.84		$	0.82		$	0.01		1.2	%

Net operating income	$	43,314		$	48,731		$	41,796		$	48,953		$	42,566		$	(747	)	-1.5	%
Less operating income attributable to unvested participating securities		(554	)		(536	)		(449	)		(529	)		(435	)		118		22.3	%
Net operating income used in computing diluted operating EPS	$	42,760		$	48,194		$	41,346		$	48,424		$	42,131		$	(629	)	-1.3	%
Diluted operating income per share	$	0.77		$	0.88		$	0.76		$	0.91		$	0.80		$	0.03		2.8	%

																YOY Q1
		Q1 2014			Q2 2014			Q3 2014			Q4 2014			Q1 2015		Change			% Change
Annualized Return on Equity
Average stockholders' equity	$	1,237,780		$	1,278,132		$	1,298,607		$	1,269,804		$	1,242,274		$	4,494		0.4	%
Average adjusted stockholders' equity	$	1,165,982		$	1,193,998		$	1,214,421		$	1,194,046		$	1,163,881		$	(2,101	)	-0.2	%

Net income return on stockholders' equity		14.6	%		15.4	%		12.8	%		14.3	%		14.0	%		-0.6	%	nm
Net income return on adjusted stockholders' equity		15.5	%		16.5	%		13.7	%		15.2	%		14.9	%		-0.5	%	nm

Net operating income return on adjusted stockholders' equity		14.9	%		16.3	%		13.8	%		16.4	%		14.6	%		-0.2	%	nm

Capital Structure
Debt-to-capital (1)		23.0	%		22.3	%		22.4	%		23.1	%		23.2	%		0.2	%	nm

Cash and invested assets to stockholders' equity		1.6	x		1.6	x		1.7	x		1.8	x		1.9	x		0.2	x	nm
Cash and invested assets to adjusted stockholders' equity		1.7	x		1.7	x		1.8	x		1.9	x		2.0	x		0.3	x	nm

Share count, end of period (2)		54,569,108			54,193,684			53,681,705			52,168,653			51,554,770			(3,014,338	)	-5.8	%
Adjusted stockholders' equity per share	$	21.55		$	22.36		$	22.67		$	22.45		$	22.43		$	0.88		3.9	%

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

Holding Company Senior Debt Ratings
Moody's	Baa2			Baa2			Baa2			Baa2			Baa2			nm			nm
S&P		A	-		A	-		A	-		A	-		A	-	nm			nm
A.M. Best		a	-		a	-		a	-		a	-		a	-	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 Q1
(Dollars in thousands)		Q1 2014			Q2 2014			Q3 2014			Q4 2014			Q1 2015		$ Change			% Change
Statement of Income
Revenues:
Direct premiums	$	568,205		$	576,740		$	577,482		$	578,905		$	577,458		$	9,253		1.6	%
Ceded premiums		(402,715	)		(410,546	)		(402,198	)		(401,358	)		(397,541	)		5,174		1.3	%
Net premiums		165,490			166,194			175,284			177,546			179,918			14,428		8.7	%
Net investment income		21,599			21,681			20,465			22,728			21,173			(426	)	-2.0	%
Commissions and fees:
Sales-based (1)		57,904			60,255			58,394			61,204			60,035			2,130		3.7	%
Asset-based (2)		53,807			56,114			58,744			57,134			56,837			3,030		5.6	%
Account-based (3)		9,720			9,957			10,251			10,548			10,452			732		7.5	%
Other commissions and fees		5,499			5,713			5,539			6,381			5,511			12		0.2	%
Realized investment (losses) gains		263			831			(281	)		(1,074	)		1,284			1,022		nm
Other, net		10,045			10,384			10,791			10,917			9,929			(116	)	-1.2	%
Total revenues		324,328			331,130			339,187			345,385			345,139			20,811		6.4	%
Benefits and expenses:
Benefits and claims		75,191			72,412			81,235			82,578			82,500			7,309		9.7	%
Amortization of DAC		35,193			32,696			36,944			39,544			36,213			1,019		2.9	%
Insurance commissions		4,083			3,881			4,046			3,343			3,189			(894	)	-21.9	%
Insurance expenses		28,502			28,192			31,495			27,263			34,642			6,140		21.5	%
Sales commissions:
Sales-based (1)		41,563			42,702			41,193			42,749			42,442			879		2.1	%
Asset-based (2)		20,725			21,859			23,378			23,011			23,251			2,525		12.2	%
Other sales commissions		2,833			2,803			2,929			3,029			2,764			(68	)	-2.4	%
Interest expense		8,606			8,552			8,712			8,700			8,676			70		0.8	%
Other operating expenses		40,798			42,292			45,235			46,037			44,652			3,854		9.4	%
Total benefits and expenses		257,495			255,390			275,167			276,255			278,330			20,834		8.1	%
Income from continued operations before income taxes		66,832			75,740			64,020			69,130			66,809			(23	)	nm
Income taxes		23,347			26,469			22,407			23,664			23,408			61		0.3	%
Net income from continued operations		43,485			49,271			41,613			45,466			43,401			(84	)	-0.2	%
Net income from discontinued operations net tax		1,596			—			(18	)		—			—			(1,596	)	-100.0	%
Net income	$	45,080		$	49,271		$	41,595		$	45,466		$	43,401		$	(1,680	)	-3.7	%

Income from Continued Operations Before Income Taxes by Segment
Term Life	$	47,205		$	55,070		$	45,932		$	52,826		$	47,820		$	616		1.3	%
Investment & Savings Products		34,028			36,047			36,904			39,039			35,044			1,016		3.0	%
Corporate & Other Distributed Products		(14,400	)		(15,377	)		(18,816	)		(22,735	)		(16,055	)		(1,655	)	-11.5	%
Income from continued operations before income taxes	$	66,832		$	75,740		$	64,020		$	69,130		$	66,809		$	(23	)	nm

(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

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

PRIMERICA, INC.

Financial Supplement

																YOY Q1
		Q1 2014			Q2 2014			Q3 2014			Q4 2014			Q1 2015		$ Change			% Change
(Dollars in thousands)		Q1 2014			Q2 2014			Q3 2014			Q4 2014			Q1 2015		$ Change			% Change
Reconciliation from Term Life Adjusted Direct Premiums to Term Life Direct Premiums
Term Life adjusted direct premiums	$	214,780		$	223,706		$	228,422		$	233,044		$	237,430		$	22,650		10.5	%
Premiums ceded to Citi		344,883			344,143			340,170			337,501			331,733			(13,150	)	-3.8	%
Term Life direct premiums	$	559,663		$	567,849		$	568,592		$	570,545		$	569,164		$	9,500		1.7	%


Reconciliation from Term Life Other Ceded Premiums to Term Life Ceded Premiums
Term Life other ceded premiums	$	(55,450	)	$	(63,424	)	$	(59,417	)	$	(60,978	)	$	(63,389	)	$	(7,939	)	-14.3	%
Premiums ceded to Citi		(344,883	)		(344,143	)		(340,170	)		(337,501	)		(331,733	)		13,150		3.8	%
Term Life ceded premiums	$	(400,334	)	$	(407,566	)	$	(399,587	)	$	(398,478	)	$	(395,122	)	$	5,212		1.3	%


Reconciliation from Operating Revenues to Total Revenues
Operating revenues	$	324,065		$	330,299		$	339,468		$	346,459		$	343,854		$	19,790		6.1	%
Realized investment gains/(losses)		263			831			(281	)		(1,074	)		1,284		nm			nm
Total revenues	$	324,328		$	331,130		$	339,187		$	345,385		$	345,139		$	20,811		6.4	%


Reconciliation from Operating Income Before Income Taxes to Income from Continued Operations Before Income Taxes
Operating income before income taxes	$	66,569		$	74,909		$	64,301		$	74,432		$	65,525		$	(1,045	)	-1.6	%
Operating income before income taxes reconciling items:
Realized investment gains/(losses)		263			831			(281	)		(1,074	)		1,284		nm			nm
Co-CEOs transition expenses		—			—			—			(4,228	)		—		nm			nm
Total operating income before income taxes reconciling items		263			831			(281	)		(5,302	)		1,284		nm			nm
Income from continued operations before income taxes	$	66,832		$	75,740		$	64,020		$	69,130		$	66,809		$	(23	)	nm


Reconciliation from Net Operating Income to Net Income
Net operating income	$	43,314		$	48,731		$	41,796		$	48,953		$	42,566		$	(747	)	-1.7	%
Net operating income reconciling items:
Operating income before income taxes reconciling items		263			831			(281	)		(5,302	)		1,284		nm			nm
Tax impact of operating income reconciling items at effective tax rate		(92	)		(291	)		98			1,815			(450	)	nm			nm
Total net operating income reconciling items		171			541			(183	)		(3,487	)		834		nm			nm
Net income from continued operations	$	43,485		$	49,271		$	41,613		$	45,466		$	43,401		$	(84	)	-0.2	%
Net income from discontinued operations net tax		1,596			—			(18	)		—			—		nm			nm
Net income	$	45,080		$	49,271		$	41,595		$	45,466		$	43,401		$	(1,680	)	-3.7	%

7 of 16

Segment Operating Results

PRIMERICA, INC.

Financial Supplement

																YOY Q1
(Dollars in thousands)		Q1 2014			Q2 2014			Q3 2014			Q4 2014			Q1 2015		$ Change			% Change
Term Life Insurance
Revenues:
Direct Premiums	$	559,663		$	567,849		$	568,592		$	570,545		$	569,164		$	9,500		1.7	%
Premiums ceded to Citi (1)		(344,883	)		(344,143	)		(340,170	)		(337,501	)		(331,733	)		13,150		3.8	%
Adjusted direct premiums (2)		214,780			223,706			228,422			233,044			237,430			22,650		10.5	%
Other ceded premiums (3)		(55,450	)		(63,424	)		(59,417	)		(60,978	)		(63,389	)		(7,939	)	-14.3	%
Net premiums		159,330			160,282			169,005			172,067			174,042			14,712		9.2	%
Allocated net investment income		16,713			16,839			17,235			18,986			17,281			568		3.4	%
Other, net		6,937			7,245			7,337			7,318			7,042			105		1.5	%
Operating revenues		182,980			184,366			193,577			198,370			198,365			15,385		8.4	%
Benefits and expenses:
Benefits and claims		71,263			68,287			77,722			78,059			77,990			6,727		9.4	%
Amortization of DAC		32,721			29,778			34,171			36,661			35,017			2,296		7.0	%
Insurance commissions		1,315			929			1,070			690			601			(714	)	-54.3	%
Insurance expenses		26,413			26,293			30,514			25,978			32,804			6,391		24.2	%
Interest expense		4,063			4,009			4,168			4,156			4,132			69		1.7	%
Operating benefits and expenses		135,776			129,296			147,645			145,544			150,545			14,769		10.9	%
Operating income before income taxes	$	47,205		$	55,070		$	45,932		$	52,826		$	47,820		$	616		1.3	%

Investment & Savings Products
Revenues:
Commissions and fees:
Sales-based	$	57,904		$	60,255		$	58,394		$	61,204		$	60,035		$	2,130		3.7	%
Asset-based		53,807			56,114			58,744			57,134			56,837			3,030		5.6	%
Account-based		9,720			9,957			10,251			10,548			10,452			732		7.5	%
Other, net		1,839			1,821			1,884			2,497			1,751			(88	)	-4.8	%
Operating revenues		123,270			128,147			129,273			131,383			129,074			5,804		4.7	%
Benefits and expenses:
Amortization of DAC		2,335			2,172			2,484			1,743			1,201			(1,135	)	-48.6	%
Insurance commissions		2,086			2,237			2,290			2,185			1,971			(115	)	-5.5	%
Sales commissions:
Sales-based		41,563			42,702			41,193			42,749			42,442			879		2.1	%
Asset-based		20,725			21,859			23,378			23,011			23,251			2,525		12.2	%
Other operating expenses		22,532			23,131			23,024			22,655			25,166			2,634		11.7	%
Operating benefits and expenses		89,243			92,100			92,369			92,344			94,031			4,788		5.4	%
Operating income before income taxes	$	34,028		$	36,047		$	36,904		$	39,039		$	35,044		$	1,016		3.0	%

Corporate & Other Distributed Products
Revenues:
Direct premiums	$	8,542		$	8,892		$	8,890		$	8,360		$	8,295		$	(247	)	-2.9	%
Ceded premiums		(2,381	)		(2,980	)		(2,611	)		(2,880	)		(2,419	)		(37	)	-1.6	%
Net premiums		6,160			5,912			6,279			5,480			5,876			(284	)	-4.6	%
Allocated net investment income		4,885			4,842			3,230			3,742			3,892			(994	)	-20.3	%
Commissions and fees:
Loans		200			101			78			69			42			(157	)	-78.9	%
DebtWatchers		385			360			337			316			307			(78	)	-20.2	%
Prepaid Legal Services		2,339			2,285			2,487			3,225			2,468			129		5.5	%
Auto and Homeowners Insurance		1,719			1,998			1,606			2,032			1,770			51		3.0	%
Long-Term Care Insurance		521			570			565			550			534			13		2.5	%
Other sales commissions		337			399			467			188			391			54		15.9	%
Other, net		1,269			1,318			1,569			1,103			1,136			(133	)	-10.5	%
Operating revenues		17,814			17,785			16,618			16,706			16,415			(1,399	)	-7.9	%
Benefits and expenses:
Benefits and claims		3,928			4,125			3,513			4,519			4,510			582		14.8	%
Amortization of DAC		137			747			289			1,141			(5	)		(142	)	-103.9	%
Insurance commissions		681			715			686			468			617			(65	)	-9.5	%
Insurance expenses		2,088			1,900			981			1,285			1,837			(251	)	-12.0	%
Sales commissions		2,833			2,803			2,929			3,029			2,764			(68	)	-2.4	%
Interest expense		4,543			4,543			4,544			4,544			4,544			1		nm
Other operating expenses		18,266			19,161			22,211			19,154			19,486			1,220		6.7	%
Operating benefits and expenses		32,477			33,993			35,153			34,139			33,754			1,277		3.9	%
Operating income before income taxes	$	(14,663	)	$	(16,208	)	$	(18,535	)	$	(17,433	)	$	(17,339	)	$	(2,676	)	-18.3	%

(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 Q1
Term Life Insurance Operating Income Before Income Taxes	Q1 2014			Q2 2014			Q3 2014			Q4 2014			Q1 2015			$ Change			% Change
Revenues:
Direct Premiums	$	559,663		$	567,849		$	568,592		$	570,545		$	569,164			9,500		1.7	%
Premiums ceded to Citi (1)		(344,883	)		(344,143	)		(340,170	)		(337,501	)		(331,733	)		13,150		3.8	%
Adjusted direct premiums (2)		214,780			223,706			228,422			233,044			237,430			22,650		10.5	%
Other ceded premiums (3)		(55,450	)		(63,424	)		(59,417	)		(60,978	)		(63,389	)		(7,939	)	-14.3	%
Net premiums		159,330			160,282			169,005			172,067			174,042			14,712		9.2	%
Allocated net investment income		16,713			16,839			17,235			18,986			17,281			568		3.4	%
Other, net		6,937			7,245			7,337			7,318			7,042			105		1.5	%
Operating revenues		182,980			184,366			193,577			198,370			198,365			15,385		8.4	%
Benefits and expenses:
Benefits and claims		71,263			68,287			77,722			78,059			77,990			6,727		9.4	%
Amortization of DAC		32,721			29,778			34,171			36,661			35,017			2,296		7.0	%
Insurance commissions		1,315			929			1,070			690			601			(714	)	-54.3	%
Insurance expenses		26,413			26,293			30,514			25,978			32,804			6,391		24.2	%
Interest expense		4,063			4,009			4,168			4,156			4,132			69		1.7	%
Operating benefits and expenses		135,776			129,296			147,645			145,544			150,545			14,769		10.9	%
Operating income before income taxes	$	47,205		$	55,070		$	45,932		$	52,826		$	47,820		$	616		1.3	%

Total Term Life Insurance - Financial Analysis
Primary direct premiums (4)	$	130,855		$	139,973		$	145,636		$	150,916		$	156,714		$	25,860		19.8	%
Legacy direct premiums (5)		428,809			427,876			422,956			419,629			412,449			(16,359	)	-3.8	%
Total direct premiums	$	559,663		$	567,849		$	568,592		$	570,545		$	569,164		$	9,500		1.7	%

Premiums ceded to Citi	$	344,883		$	344,143		$	340,170		$	337,501		$	331,733			(13,150	)	-3.8	%
% of Legacy direct premiums		80.4	%		80.4	%		80.4	%		80.4	%		80.4	%		nm		nm

Benefits and claims, net (6)	$	126,713		$	131,711		$	137,139		$	139,037		$	141,379			14,665		11.6	%
% of adjusted direct premiums		59.0	%		58.9	%		60.0	%		59.7	%		59.5	%		nm		nm

DAC amortization & insurance commissions	$	34,036		$	30,707		$	35,241		$	37,351		$	35,619			1,582		4.6	%
% of adjusted direct premiums		15.8	%		13.7	%		15.4	%		16.0	%		15.0	%		nm		nm

Insurance expenses, net (7)	$	19,476		$	19,047		$	23,177		$	18,660		$	25,762			6,286		32.3	%
% of adjusted direct premiums		9.1	%		8.5	%		10.1	%		8.0	%		10.9	%		nm		nm

Total term life operating income before income taxes	$	47,205		$	55,070		$	45,932		$	52,826		$	47,820			616		1.3	%
% of adjusted direct premiums		22.0	%		24.6	%		20.1	%		22.7	%		20.1	%		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 Q1
(Dollars in thousands, except as noted)	Q1 2014			Q2 2014			Q3 2014			Q4 2014			Q1 2015			$ Change				% Change
Key Statistics

Life-insurance licensed sales force, beginning of period		95,566			95,382			96,596			97,966			98,358				2,792		2.9	%
New life-licensed representatives		7,447			9,082			8,793			8,510			7,486				39		0.5	%
Non-renewal and terminated representatives		(7,631	)		(7,868	)		(7,423	)		(8,118	)		(7,699	)			(68	)	-0.9	%
Life-insurance licensed sales force, end of period		95,382			96,596			97,966			98,358			98,145				2,763		2.9	%

Estimated annualized issued term life premium ($mills) (1):
Premium from new policies	$	40.1		$	48.0		$	44.7		$	47.0		$	45.1			$	5.1		12.6	%
Additions and increases in premium		12.4			13.0			12.9			13.3			12.8				0.4		3.4	%
Total estimated annualized issued term life premium	$	52.5		$	61.1		$	57.6		$	60.3		$	57.9			$	5.5		10.4	%

Issued term life policies		49,320			59,569			55,146			56,949			55,677				6,357		12.9	%
Estimated average annualized issued term life premium per policy (1)(2)	$	813		$	806		$	810		$	825		$	811			$	(2	)	-0.3	%

Term life face amount in-force, beginning of period ($mills)	$	674,868		$	673,078		$	681,978		$	681,178		$	681,927			$	7,059		1.0	%
Issued term life face amount (3)		15,748			18,494			17,337			17,996			17,181				1,434		9.1	%
Terminated term life face amount		(14,160	)		(12,759	)		(13,866	)		(14,177	)		(13,344	)			816		5.8	%
Foreign currency impact, net		(3,378	)		3,166			(4,272	)		(3,070	)		(7,247	)			(3,869	)	nm
Term life face amount in-force, end of period	$	673,078		$	681,978		$	681,178		$	681,927		$	678,517			$	5,439		0.8	%

(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

Investment and Savings Products - Financial Results and Financial Analysis

PRIMERICA, INC.

Financial Supplement

(Dollars in thousands, except as noted)																	YOY Q1
Investment & Savings Products Operating Income Before Income Taxes	Q1 2014			Q2 2014			Q3 2014			Q4 2014			Q1 2015				$ Change			% Change
Revenues:
Commissions and fees:
Sales-based	$	57,904		$	60,255		$	58,394		$	61,204			$	60,035		$	2,130		3.7	%
Asset-based		53,807			56,114			58,744			57,134				56,837			3,030		5.6	%
Account-based		9,720			9,957			10,251			10,548				10,452			732		7.5	%
Other, net		1,839			1,821			1,884			2,497				1,751			(88	)	-4.8	%
Operating revenues		123,270			128,147			129,273			131,383				129,074			5,804		4.7	%
Benefits and expenses:
Amortization of DAC		2,335			2,172			2,484			1,743				1,201			(1,135	)	-48.6	%
Insurance commissions		2,086			2,237			2,290			2,185				1,971			(115	)	-5.5	%
Sales commissions:
Sales-based		41,563			42,702			41,193			42,749				42,442			879		2.1	%
Asset-based		20,725			21,859			23,378			23,011				23,251			2,525		12.2	%
Other operating expenses		22,532			23,131			23,024			22,655				25,166			2,634		11.7	%
Operating benefits and expenses		89,243			92,100			92,369			92,344				94,031			4,788		5.4	%
Operating income before income taxes	$	34,028		$	36,047		$	36,904		$	39,039			$	35,044		$	1,016		3.0	%

Financial Analysis

Fees paid based on client asset values (1)	$	4,569		$	4,780		$	4,974		$	4,827			$	4,674		$	105		2.3	%
Fees paid based on fee-generating accounts (2)		2,931			2,978			3,009			3,043				3,172			240		8.2	%
Other operating expenses		15,031			15,372			15,041			14,786				17,320			2,289		15.2	%
Total other operating expenses	$	22,532		$	23,131		$	23,024		$	22,655			$	25,166		$	2,634		11.7	%

Sales-based net revenue as % of revenue-generating sales (3)
U.S.		1.33	%		1.37	%		1.43	%		1.46	%			1.36	%	nm			nm
Canada		1.09	%		1.02	%		0.97	%		0.95	%			1.09	%	nm			nm
Total		1.29	%		1.33	%		1.37	%		1.39	%			1.32	%	nm			nm

Asset-based net revenue as % of average asset values (4)
U.S.		0.036	%		0.037	%		0.037	%		0.036	%			0.036	%	nm			nm
Canada		0.127	%		0.126	%		0.123	%		0.127	%			0.134	%	nm			nm
Total		0.053	%		0.054	%		0.054	%		0.053	%			0.053	%	nm			nm

Account-based net revenue per average fee generating account (5)(6)	$	2.62		$	2.67		$	2.75		$	2.83			$	2.70		nm			nm

(1)	Fees paid based on client asset values - administration fees on Canadian Segregated Funds and advisory fees on Managed Accounts that vary directly with client asset values
(2)	Fees paid based on fee-generating accounts - recordkeeping fees that vary with the number of fee-generating accounts
(3)	Sales-based net revenue - commission and fee revenue less commissions paid to the sales force based on product sales activity
(4)	Asset-based net revenue - commission and fee revenue less administration and advisory fees paid to third-party providers and commissions paid to the sales force earned based on product account values including amortization of deferred acquisition costs for segregated funds
(5)	Account-based net revenue - fee revenue less recordkeeping fees paid to third-party providers based on fee-generating accounts
(6)	In whole dollars

11 of 16

Investment and Savings Products - Key Statistics

PRIMERICA, INC.

Financial Supplement

(Dollars in thousands, except as noted)																	YOY Q1
Key Statistics		Q1 2014			Q2 2014			Q3 2014			Q4 2014		Q1 2015				$ Change			% Change

Product sales ($mills)
U.S. Retail Mutual Funds	$	569.0		$	650.1		$	600.1		$	616.1			$	641.2		$	72.2		12.7	%
Canada Retail Mutual Funds		252.4			170.9			162.7			188.4				214.5			(37.9	)	-15.0	%
Indexed Annuities		84.2			84.7			62.0			54.0				73.7			(10.5	)	-12.5	%
Variable Annuities and other		365.8			417.1			434.2			469.4				405.0			39.2		10.7	%
Total sales-based revenue generating product sales		1,271.4			1,322.7			1,259.0			1,327.8				1,334.3			62.9		4.9	%
Managed Accounts		62.8			65.3			66.3			63.9				66.1			3.3		5.2	%
Segregated Funds		76.6			51.1			51.2			64.1				114.4			37.7		49.2	%
Total product sales	$	1,410.8		$	1,439.2		$	1,376.5		$	1,455.8			$	1,514.8		$	103.9		7.4	%

Canada Retail Mutual Funds	$	252.4		$	170.9		$	162.7		$	188.4			$	214.5		$	(37.9	)	-15.0	%
Segregated Funds		76.6			51.1			51.2			64.1				114.4			37.7		49.2	%
Total Canada product sales		329.0			222.0			213.9			252.5				328.8			(0.2	)	-0.1	%
Total U.S. product sales		1,081.8			1,217.2			1,162.6			1,203.3				1,185.9			104.1		9.6	%
Total product sales	$	1,410.8		$	1,439.2		$	1,376.5		$	1,455.8			$	1,514.8		$	103.9		7.4	%

Client asset values, beginning of period ($mills)	$	44,990		$	45,839		$	48,008		$	47,399			$	48,656		$	3,666		8.1	%
Inflows		1,411			1,439			1,377			1,456				1,515			104		7.4	%
Outflows (1)		(1,246	)		(1,211	)		(1,206	)		(1,161	)			(1,246	)		0		nm
Net flows		165			228			171			295				269			104		nm
Foreign currency impact, net		(321	)		313			(432	)		(309	)			(734	)		(413	)	nm
Change in market value, net and other (2)		1,005			1,628			(348	)		1,270				1,004			(1	)	nm
Client asset values, end of period	$	45,839		$	48,008		$	47,399		$	48,656			$	49,195		$	3,356		7.3	%
Annualized net flows as % of beginning of period asset values		1.5	%		2.0	%		1.4	%		2.5	%			2.2	%		0.7	%	nm

Average client asset values ($mills)
U.S. Retail Mutual Funds	$	22,797		$	23,458		$	23,945		$	24,363			$	24,787		$	1,990		8.7	%
Canada Retail Mutual Funds		6,045			6,371			6,513			6,265				6,035			(9	)	-0.2	%
Managed Accounts		1,095			1,203			1,287			1,369				1,446			351		32.1	%
Indexed Annuities		839			921			986			1,035				1,089			250		29.8	%
Variable Annuities and other		11,839			12,152			12,548			12,748				12,995			1,156		9.8	%
Segregated Funds		2,449			2,507			2,547			2,462				2,390			(59	)	-2.4	%
Total	$	45,063		$	46,611		$	47,825		$	48,243			$	48,743		$	3,679		8.2	%

Canada Retail Mutual Funds	$	6,045		$	6,371		$	6,513		$	6,265			$	6,035		$	(9	)	-0.2	%
Segregated Funds		2,449			2,507			2,547			2,462				2,390			(59	)	-2.4	%
Total Canada average client assets		8,494			8,878			9,060			8,728				8,425			(68	)	-0.8	%
Total U.S. average client assets		36,570			37,733			38,766			39,515				40,317			3,748		10.2	%
Total average client assets	$	45,063		$	46,611		$	47,825		$	48,243			$	48,743		$	3,679		8.2	%

Average number of fee-generating accounts (thous) (3)
Recordkeeping and custodial accounts		1,991			2,011			2,026			2,034				2,067			76		3.8	%
Recordkeeping only accounts		596			604			611			616				628			32		5.3	%
Total		2,587			2,614			2,636			2,651				2,695			108		4.2	%

(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 4% 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 and expenses
(3)	Fee generating accounts - mutual fund accounts for which we receive recording keeping and/or custodial fees

12 of 16

Investment Portfolio - Summary of Holdings

PRIMERICA, INC.

Financial Supplement

	As of or for the period ended March 31, 2015
									% 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	$	180,207		$	180,207	$	-			8.9	%		9.4	%

Fixed Income:
Treasury		32,834			34,814		(1,980	)		1.6	%		1.8	%		2.43	%	AAA
Government		139,093			137,142		1,951			6.8	%		7.1	%		4.26	%	AA-
Tax-Exempt Municipal		4,845			4,980		(135	)		0.2	%		0.3	%		3.26	%	BBB+
Corporate		1,239,153			1,165,068		74,086			61.0	%		60.4	%		4.85	%	BBB+
Mortgage-Backed		112,169			102,946		9,223			5.5	%		5.3	%		4.84	%	AAA
Asset-Backed		79,413			79,127		286			3.9	%		4.1	%		0.94	%	AA+
CMBS		77,840			73,926		3,914			3.8	%		3.8	%		3.30	%	AAA
Private		106,187			100,316		5,871			5.2	%		5.2	%		5.06	%	BBB
Redeemable Preferred		2,727			2,882		(155	)		0.1	%		0.1	%		15.38	%	BBB+
Convertible		3,020			2,556		464			0.1	%		0.1	%		4.92	%	BBB+
Total Fixed Income		1,797,281			1,703,757		93,524			88.5	%		88.4	%		4.53	%	A

Equities:
Perpetual Preferred		16,519			15,052		1,467			0.8	%		0.8	%
Common Stock		22,925			17,129		5,795			1.1	%		0.9	%
Mutual Fund		6,770			4,573		2,198			0.3	%		0.2	%
Other		5,593			5,593		-			0.3	%		0.3	%
Total Equities		51,807			42,347		9,460			2.6	%		2.2	%

Total Invested Assets	$	2,029,295		$	1,926,311	$	102,984			99.9	%		99.9	%

Corporate Portfolio by Sector

Energy	$	158,513		$	153,143	$	5,370			12.8	%		13.1	%
Consumer Non Cyclical		140,073			129,912		10,161			11.3	%		11.2	%
Reits		134,973			126,579		8,394			10.9	%		10.9	%
Basic Industry		105,534			98,900		6,634			8.5	%		8.5	%
Banking		114,884			113,289		1,595			9.3	%		9.7	%
Electric		95,537			86,471		9,066			7.7	%		7.4	%
Technology		89,665			84,689		4,977			7.2	%		7.3	%
Insurance		80,651			73,609		7,041			6.5	%		6.3	%
Capital Goods		71,868			66,134		5,734			5.8	%		5.7	%
Communications		69,547			64,107		5,440			5.6	%		5.5	%
Consumer Cyclical		52,211			49,100		3,111			4.2	%		4.2	%
Transportation		41,459			40,487		972			3.3	%		3.5	%
Brokerage		28,110			26,055		2,055			2.3	%		2.2	%
Finance Companies		17,920			16,227		1,693			1.4	%		1.4	%
Industrial Other		16,220			15,356		864			1.3	%		1.3	%
Natural Gas		12,675			11,919		756			1.0	%		1.0	%
Financial Other		9,312			9,092		219			0.8	%		0.8	%
Total Corporate portfolio	$	1,239,153		$	1,165,068	$	74,086			100.0	%		100.0	%
	Error			Error
Fixed-Maturity Securities - Effective Maturity
Fixed-Maturity Securities - Effective Maturity

Effective maturity
< 1 Yr.	$	191,494		$	189,703	$	1,792			10.7	%		11.1	%		3.53	%
1-2 Yrs.		98,093			98,331		(238	)		5.5	%		5.8	%		3.91	%
2-5 Yrs.		690,924			635,867		55,057			38.4	%		37.3	%		5.14	%
5-10 Yrs.		765,195			731,641		33,554			42.6	%		42.9	%		4.31	%
> 10 Yrs.		51,576			48,215		3,360			2.9	%		2.8	%		4.97	%
Total Fixed Income	$	1,797,281		$	1,703,757	$	93,524			100.0	%		100.0	%		4.53	%

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 March 31, 2015

PRIMERICA, INC.

Financial Supplement


(Dollars in thousands)
Investment Portfolio Quality Ratings (1)
			Amortized Cost		% of Total
Total Fixed Income portfolio:
	Rating
	AAA		$	294,057	17.3	%
	AA			117,844	6.9	%
	A			382,027	22.4	%
	BBB			814,451	47.8	%
	Below Investment Grade			94,873	5.6	%
	NA			505	0.0	%
		Total Fixed Income	$	1,703,757	100.0	%




			Amortized Cost		% of Total					Amortized Cost		% of Total
Corporate asset class:							Private asset class:
	Rating							Rating
	AAA		$	4,320	0.4	%		AAA		$	62	0.1	%
	AA			55,757	4.8	%		AA			4,121	4.1	%
	A			315,634	27.1	%		A			1,067	1.1	%
	BBB			705,145	60.5	%		BBB			90,166	89.9	%
	Below Investment Grade			84,033	7.2	%		Below Investment Grade			4,900	4.9	%
	NA			178	0.0	%		NA			-	—
		Total Corporate	$	1,165,068	100.0	%			Total Private	$	100,316	100.0	%



CMBS asset class:							Mortgage-Backed asset class:
	Rating							Rating
	AAA		$	68,434	92.6	%		AAA		$	96,964	94.2	%
	AA			1,673	2.3	%		AA			2,557	2.5	%
	A			2,583	3.5	%		A			1,397	1.4	%
	BBB			1,235	1.7	%		BBB			2,028	2.0	%
	Below Investment Grade			-	—			Below Investment Grade			-	—
	NA			-	0.0	%		NA			-	—
		Total CMBS	$	73,926	100.0	%			Total Mortgage-Backed	$	102,946	100.0	%



Asset-Backed asset class:							Treasury & Government asset classes:
	Rating							Rating
	AAA		$	59,652	75.4	%		AAA		$	64,042	37.2	%
	AA			1,503	1.9	%		AA			52,768	30.7	%
	A			17,483	22.1	%		A			41,723	24.3	%
	BBB			127	0.2	%		BBB			13,423	7.8	%
	Below Investment Grade			362	0.5	%		Below Investment Grade			-	—
	NA			-	—			NA			-	—
		Total Asset-Backed	$	79,127	100.0	%			Total Treasury & Government	$	171,956	100.0	%


NAIC Designations

	1			569,469	41.5	%
	2			713,615	52.0	%
	3			69,311	5.1	%
	4			14,079	1.0	%
	5			4,708	0.3	%
	6			138	0.0	%
		U.S. Insurer Fixed Income (2)		1,371,319	100.0	%
	Other (3)			374,785
	Cash and cash equivalents			180,207
		Total Invested Assets		1,926,311

(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 Q1
(Dollars in thousands)		Q1 2014			Q2 2014			Q3 2014			Q4 2014			Q1 2015		$ Change			% Change
Net Investment Income by Source
Fixed-maturity securities (available-for-sale)	$	21,032		$	20,454		$	20,933		$	22,268		$	19,795			(1,237	)	-5.9	%
Fixed-maturity securities (held-to-maturity)		-			-			1,299			2,183			2,475			2,475		nm
Equity Securities		385			471			450			556			516			131		34.0	%
Deposit asset underlying 10% reinsurance treaty		953			1,490			(127	)		779			1,672			719		75.4	%
Policy loans and other invested assets		388			398			367			295			359			(29	)	-7.5	%
Cash & cash equivalents		53			68			70			56			43			(10	)	-18.9	%
Total investment income		22,811			22,881			22,992			26,137			24,860			2,049		9.0	%
Investment expenses		1,212			1,200			1,228			1,226			1,212			-		0.0	%
Interest Expense on Surplus Note		—			—			1,299			2,183			2,475			2,475		nm
Net investment income	$	21,599		$	21,681		$	20,465		$	22,728		$	21,173			(426	)	-2.0	%
Fixed income book yield, end of period		4.87	%		4.76	%		4.62	%		4.61	%		4.53	%		—		—
New money yield		3.61	%		2.55	%		2.29	%		3.04	%		2.47	%		—		—

											YOY Q1
	Q1 2014		Q2 2014		Q3 2014		Q4 2014		Q1 2015		% Pt Change
Fixed Income Portfolio Quality Ratings
Rating
AAA	17.1	%	16.7	%	17.2	%	17.4	%	17.3	%	0.2	%
AA	7.8	%	8.3	%	6.8	%	7.0	%	6.9	%	-0.9	%
A	22.8	%	22.1	%	23.0	%	22.4	%	22.4	%	-0.4	%
BBB	47.5	%	47.5	%	48.1	%	48.0	%	47.8	%	0.3	%
Below Investment Grade	4.6	%	4.9	%	4.9	%	5.0	%	5.6	%	0.9	%
NA	0.1	%	0.4	%	0.0	%	0.0	%	0.0	%	-0.1	%
Total Fixed Income	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	nm

Average rating by amortized cost	A		A		A		A		A		na

			As of March 31, 2015							As of March 31, 2015					As of March 31, 2015
			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	$	25,093		$	27,764	AAA	United Kingdom	$	59,864	$	56,550	AAA	$	751	$	750
2	General Electric Co		18,998			16,388	AA+	Australia		43,037		40,063	AA		11,784		10,804
3	Province of Ontario Canada		10,242			10,360	AA-	Canada		42,301		39,803	A		17,044		15,779
4	Wells Fargo & Co		10,029			9,797	A	Brazil		20,273		20,161	BBB		13,762		13,423
5	National Rural Utilities Cooperative		9,860			7,759	A	France		17,853		16,718	Below Investment Grade		—		—
6	Iberdrola SA		9,401			8,472	BBB	Switzerland		16,354		15,560	NA		0		0
7	Washington Real Estate Investment		8,908			8,517	BBB	Ireland		13,637		12,249	Total	$	43,341	$	40,755
8	TransCanada Corp		8,084			8,110	A-	Bermuda		12,667		8,683
9	Discover Financial Services		7,615			6,551	BBB-	Netherlands		12,424		11,843
10	National Fuel Gas Co		7,564			6,562	BBB	Germany		10,710		10,089	Non-Government Investments (1)
11	Altria Group Inc		7,486			6,220	BBB+	Korea Republic Of		9,191		8,683
12	Vale Oversees Ltd		7,378			7,096	A-	Mexico		8,793		8,112	AAA	$	—	$	—
13	Ingram Micro Inc		7,125			6,666	BBB-	Hong Kong		7,346		6,982	AA		19,863		18,617
14	Prudential Financial Inc		6,952			6,414	A	Luxembourg		7,030		6,088	A		91,063		86,142
15	Phillips 66		6,900			6,137	BBB+	Belgium		6,966		5,688	BBB		173,857		163,377
16	Tesco PLC		6,890			6,354	BB+	Emerging Markets (2)		14,646		13,876	Below Investment Grade		20,599		19,109
17	Republic of Korea		6,881			6,383	A+	All Other		46,011		47,211	NA		382		360
18	ArcelorMittal		6,826			5,888	BB	Total	$	349,105	$	328,360	Total	$	305,764	$	287,606
19	International Business Machines		6,796			6,200	AA-
20	Verizon Communications Inc		6,401			5,943	BBB+
21	Australia & New Zealand Banking		6,238			6,096	BBB+
22	Province of Quebec Canada		6,188			5,837	A+
23	Ventas Inc		6,085			5,862	BBB+
24	Bunge Ltd		6,046			5,796	BBB-
25	Western Union Co/The		5,999			5,779	BBB
	Total	$	215,985		$	202,952

	% of total fixed income portfolio		10.6	%		10.5%

(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.

15 of 16

Five-Year Historical Key Statistics

PRIMERICA, INC.

Financial Supplement

(Dollars in millions)	2010			2011			2012			2013			2014				Q1 2014			Q2 2014			Q3 2014			Q4 2014		Q1 2015


Recruits		231,390			244,756			191,752			186,251			190,439			48,306			50,024			49,055			43,054				53,300


Life-insurance licensed sales force, beginning of period		99,785			94,850			91,176			92,373			95,566			95,566			95,382			96,596			97,966				98,358
New life-licensed representatives		34,488			33,711			34,425			34,155			33,832			7,447			9,082			8,793			8,510				7,486
Non-renewal and terminated representatives		(39,423	)		(37,385	)		(33,228	)		(30,962	)		(31,040	)		(7,631	)		(7,868	)		(7,423	)		(8,118	)			(7,699	)
Life-insurance licensed sales force, end of period		94,850			91,176			92,373			95,566			98,358			95,382			96,596			97,966			98,358				98,145


Issued term life policies		223,514			237,535			222,558			214,617			220,984			49,320			59,569			55,146			56,949				55,677


Issued term life face amount	$	74,401		$	73,146		$	68,053		$	67,783		$	69,574		$	15,748		$	18,494		$	17,337		$	17,996			$	17,181


Term life face amount in force, beginning of period	$	650,195		$	656,791		$	664,955		$	670,412		$	674,868		$	674,868		$	673,078		$	681,978		$	681,178			$	681,927
Issued term life face amount		74,401			73,146			68,053			67,783			69,574			15,748			18,494			17,337			17,996				17,181
Terminated term life face amount		(70,964	)		(66,951	)		(61,593	)		(57,730	)		(54,962	)		(14,160	)		(12,759	)		(13,866	)		(14,177	)			(13,344	)
Foreign currency impact, net		3,158			1,970			(1,003	)		(5,596	)		(7,553	)		(3,378	)		3,166			(4,272	)		(3,070	)			(7,247	)
Term life face amount in force, end of period	$	656,791		$	664,955		$	670,412		$	674,868		$	681,927		$	673,078		$	681,978		$	681,178		$	681,927			$	678,517


Estimated annualized issued term life premium
Premium from new policies	$	180.8		$	187.6		$	176.1		$	173.5		$	179.8		$	40.1		$	48.0		$	44.7		$	47.0			$	45.1
Additions and increases in premium		44.6			44.9			45.5			48.6			51.6			12.4			13.0			12.9			13.3				12.8
Total estimated annualized issued term life premium	$	225.4		$	232.5		$	221.5		$	222.1		$	231.4		$	52.5		$	61.1		$	57.6		$	60.3			$	57.9


Investment & Savings product sales	$	3,623.6		$	4,265.1		$	4,712.2		$	5,208.8		$	5,682.3		$	1,410.8		$	1,439.2		$	1,376.5		$	1,455.8			$	1,514.8

Investment & Savings average client asset values	$	31,908		$	34,870		$	35,904		$	41,035		$	46,936		$	45,063		$	46,611		$	47,825		$	48,243			$	48,743

16 of 16

Primerica, Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - May 6, 2015

Attached files

Primerica, Inc. Reports