a50917548.htm

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

PURSUANT TO SECTION 13 or 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT (Date of earliest event reported): July 31, 2014

(Exact Name of Registrant as Specified in Charter)

Delaware	001-34680	27-1204330

(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

1 Primerica Parkway

Duluth, Georgia 30099

(Address of Principal Executive Offices)

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02

Results of Operations and Financial Condition.

On August 6, 2014, Primerica, Inc. (the “Company”) announced its results of operations for the quarter ended June 30, 2014. A copy of the press release is attached hereto as Exhibit 99.1.

The information provided pursuant to this Item 2.02, including Exhibit 99.1 in Item 9.01, is “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section, and shall not be incorporated by reference in any filing made by the Company under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), except to the extent expressly set forth by specific reference in any such filings.

Use of Non-GAAP Financial Measures

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company presents certain non-GAAP financial measures. Specifically, the Company presents adjusted direct premiums, other ceded premiums, operating revenues, operating income before income taxes, net operating income, adjusted stockholders’ equity and diluted operating earnings per share. Adjusted direct premiums and other ceded premiums are net of amounts ceded to affiliates of Citigroup Inc. under coinsurance transactions that were executed concurrent with our initial public offering. Operating revenues, operating income before income taxes, net operating income and diluted operating earnings per share exclude the impact of realized investment gains and losses for all periods presented. Operating income before income taxes, net operating income, and diluted operating earnings per share also exclude (1) for 2013, the impact of charges recorded for the potential settlement of claims made by certain Florida Retirement System (FRS) plan participants and (2) the expense associated with our IPO-related equity awards for all periods presented. Adjusted stockholders’ equity excludes the impact of net unrealized gains and losses on invested assets for all periods presented.

We exclude these items because they are considered unusual and not indicative of our ongoing operations. Our definitions of these non-GAAP financial measures may differ from the definitions of similar measures used by other companies. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. Furthermore, management believes that these non-GAAP financial measures may provide users with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of our core ongoing business. These measures have limitations, and investors should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP.

Reconciliations of non-GAAP to GAAP financial measures are included as attachments to the press release which has been posted in the “Investor Relations” section of our website at http://investors.primerica.com.

Item 2.03

Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

On July 31, 2014, the Company and its subsidiaries entered into certain agreements to effect the Regulation XXX reserve financing transaction that it had previously reported it was pursuing. Specifically, on July 31, 2014, Vidalia Re, Inc. (“Vidalia Re”), a newly formed, wholly owned indirect subsidiary of the Company, entered into a Surplus Note Purchase Agreement (the “Surplus Note Purchase Agreement”) with Hannover Life Reassurance Company of America (Bermuda) Ltd. (“Hannover Bermuda”), Hannover Life Reassurance Company of America (“Hannover Re”), and BX8V8J, LLC (the “LLC”), a newly formed limited liability company owned by BX8V8J Member, Inc., a newly formed entity owned by a third party service provider that is not affiliated with the Company or Hannover Re. Under the Surplus Note Purchase Agreement, Vidalia Re issued a surplus note with an initial principal amount of $170.4 million (the “Surplus Note”) to the LLC in exchange for a credit enhanced note from the LLC with an equal initial principal amount (the “LLC Note”). Both notes have a maturity date of December 31, 2029. The LLC Note was issued to support certain obligations of Vidalia Re for a portion of reserves related to level premium term life insurance policies reinsured by Vidalia Re from Primerica Life Insurance Company (“PLIC”) under a coinsurance agreement between Vidalia Re and PLIC, effective as of July 31, 2014. The principal amount of each note will change based on the amount of reserves being supported. Hannover Re, the ultimate risk taker in the transaction, provides credit enhancement on the LLC Note in exchange for a fee. The transaction is “non-recourse” to the Company and PLIC, meaning that neither of these companies have guaranteed the Surplus Note or are otherwise liable for the reimbursement of any credit enhancement payments required to be made. In connection with the transaction, the Company has entered into support agreements under which it supports certain obligations of Vidalia Re, primarily the payment of fees to Hannover Re.

Under GAAP, the Company and Vidalia Re are not the primary beneficiaries of the LLC and therefore will not consolidate the LLC in their financial statements. Accordingly, the Company will record the LLC Note as an invested asset and the equivalent Surplus Note as a debt obligation in its consolidated financial statements beginning in the quarter ending September 30, 2014. In the absence of a credit enhancement payment from Hannover Re., which Vidalia Re would be required to reimburse through repayment of the surplus note, interest earned on the LLC Note will offset the interest owed on the Surplus Note and the net impact to the Company’s results of operations will be the expense incurred for the credit enhancement fee paid to Hannover Re. The estimated average annual expense for the credit enhancement is approximately $1.4 million, after-tax, over the life of the agreements. The expense is expected to be lower in the early years and higher as financed reserves increase over time.

Item 7.01

Regulation FD Disclosure.

On August 6, 2014, the Company posted to the “Investor Relations” section of its website certain supplemental financial information relating to the quarter ended June 30, 2014. A copy of the supplemental financial information is attached hereto as Exhibit 99.2.

The information provided pursuant to this Item 7.01, including Exhibit 99.2 in Item 9.01, is “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of such section, and shall not be incorporated by reference in any filing made by the Company under the Exchange Act or the Securities Act, except to the extent expressly set forth by specific reference in any such filings.

Item 9.01	Financial Statements and Exhibits.

(d) Exhibits.

99.1	Press Release dated August 6, 2014 – Primerica Reports Second Quarter 2014 Results

99.2	Primerica, Inc. Supplemental Financial Information – Second Quarter 2014

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 31, 2014	PRIMERICA, INC.


	/s/ Alison S. Rand
	Alison S. Rand
	Executive Vice President and
	Chief Financial Officer

Exhibit No.	Description

99.1	Press Release dated August 6, 2014 – Primerica Reports Second Quarter 2014 Results

99.2	Primerica, Inc. Supplemental Financial Information – Second Quarter 2014

PRIMERICA REPORTS SECOND QUARTER 2014 RESULTS

Life insurance licensed representatives increased 5% to 96,596 year-over-year

9% growth in Investment and Savings Products (ISP) sales year-over-year

Diluted EPS of $0.89 and diluted operating EPS of $0.88

15.4% net income return on stockholders’ equity and 16.3% net operating income return on adjusted stockholders’ equity (ROAE)

Completed redundant reserve financing transaction in July 2014

Duluth, GA, August 6, 2014 – Primerica, Inc. (NYSE: PRI) announced today financial results for the quarter ended June 30, 2014. Total revenues were $331.1 million in the second quarter of 2014 and net income was $49.3 million, or $0.89 per diluted share.

In the second quarter operating revenues increased by 10% to $330.3 million and net operating income increased by 18% to $48.7 million compared with $300.0 million and $41.2 million, respectively, in the year ago quarter. Net operating income per diluted share increased 25% to $0.88 and ROAE was 16.3% on an operating basis in the second quarter of 2014. Solid operating results in the second quarter were driven by growth in Term Life premiums and strong Investment and Savings Products performance including a 9% increase in total product sales and 20% growth in ending client asset values year-over-year. Second quarter expenses decreased versus prior year period largely reflecting our settlement of the Florida Retirement System (FRS) matter in the first quarter of 2014. Net investment income continued to be impacted by lower yields on invested assets, but was enhanced in the second quarter by favorable market value changes on our deposit asset in Corporate and Other Distributed Products.

Rick Williams, Chairman of the Board and Co-Chief Executive Officer said, “Strong core performance across business segments in the second quarter drove 18% growth in net operating income and a 25% increase in operating EPS versus the prior year period, and operating ROAE expanded to 16.3% in the second quarter. To further enhance stockholder value we completed a redundant reserve financing transaction in July that should enable the execution of our strategy to deploy approximately $150 million of capital annually through 2016.”

John Addison, Chairman of Primerica Distribution and Co-Chief Executive Officer said, “Our ongoing efforts to expand distribution resulted in a 5% increase in the size of our life insurance licensed sales force and a 3% increase in term life insurance policies issued year-over-year. Recent additions to our investment and savings product offerings as well as other initiatives drove a 9% increase in total ISP sales compared with the second quarter a year ago.”

Distribution Results

●

The size of our life-licensed sales force increased 5% to 96,596 at June 30, 2014 compared with 92,227 at June 30, 2013 and increased 1% from 95,382 at March 31, 2014. In the second quarter, new life insurance licenses increased 2% to 9,082 and recruiting of new representatives remained consistent with the year ago quarter. On a sequential quarter basis, new life insurance licenses increased 22% compared with the seasonally lower first quarter while recruiting of new representatives increased 4%.

●

In the second quarter, term life insurance policies issued grew 3% to 59,569 and the average annualized premium per issued policy increased 1% compared with the second quarter of 2013. Productivity in the quarter of .21X policies per life licensed representative per month returned to the range of historical productivity and was consistent with .21X in the prior year period. On a sequential quarter basis, term life insurance policies issued increased 21% compared with the first quarter of 2014, largely reflecting typical seasonality.

●

Year-over-year total Investment and Savings Products sales grew 9% to $1.44 billion compared with the second quarter a year ago, primarily reflecting strong retail mutual funds and variable annuity sales aided by strong market conditions and recent product introductions. Sequentially, total ISP sales continued to increase with results that were 2% higher than the strong first quarter of 2014. Ending client asset values increased 20% to $48.01 billion at June 30, 2014 relative to a year ago and grew 5% from $45.84 billion the end of the first quarter.

Segment Results

Primerica operates in two primary business segments: Term Life Insurance and Investment and Savings Products, and has a third segment, Corporate and Other Distributed Products. Results for the segments are shown below.

	Actual							Operating (1)
		Q2 2014			Q2 2013(2)		% Change		Q2 2014			Q2 2013(2)		% Change
Revenues:	($ in thousands)							($ in thousands)
Term Life Insurance	$	184,366		$	169,182		9%	$	184,366		$	169,182		9%
Investment and Savings Products		128,148			113,361		13%		128,148			113,361		13%
Corporate and Other Distributed Products		18,616			20,947		-11%		17,785			17,479		2%
Total revenues	$	331,130		$	303,490		9%	$	330,299		$	300,022		10%

Income (loss) from continuing operations before income taxes:
Term Life Insurance	$	55,070		$	51,897		6	$	55,070		$	51,897		6%
Investment and Savings Products		36,048			27,488		31%		36,048			27,675		30%
Corporate and Other Distributed Products		(15,378	)		(12,435	)	24%		(16,209	)		(15,728	)	3%
Total income from continuing operations before income taxes	$	75,740		$	66,950		13%	$	74,909		$	63,844		17%

(1) See the Non-GAAP Financial Measures section and the segment Operating Results Reconciliations at the end of this release for additional information.

(2) The results of operations from our short-term statutory disability insurance business (DBL) prior to its disposal in Q1 2014 were reported in our Corporate and Other Distributed Products segment. As such, we have reclassified revenues, insurance expenses, and income from before income taxes of $8,817, $1,581, and $496, respectively, in Q2 2013 from our Corporate and Other Distributed Products segment into discontinued operations.

Term Life Insurance. In the second quarter of 2014, Term Life operating revenues increased 9% to $184.4 million primarily reflecting 11% growth in net premiums compared with the second quarter of 2013. On a year-over-year basis benefits and claims grew in line with net premiums while DAC amortization grew at a faster rate due to more commission deferrals in recent years. Year-over-year insurance expenses increased with growth in the business and the run-off of Citi expense allowances. Allocated net investment income was flat year-over-year as net investment income growth from the level of assets required by the segment was offset by lower yield on invested assets. Collectively, operating income before income taxes increased 6% to $55.1 million year-over-year.

Sequentially, operating income before income taxes increased 17% reflecting seasonally higher persistency compared with the first quarter of 2014.

Investment and Savings Products. In the second quarter, operating revenues increased 13% to $128.1 million and operating income before income taxes increased 30% to $36.0 million compared with the year ago period. Results reflect a 9% increase in total product sales and 16% growth in average client asset values. Legal fees and expenses associated with FRS were $0.3 million, significantly less than the prior year level of $3.1 million. Strong Canadian segregated fund market performance led to a deceleration of DAC amortization in the second quarter, whereas the prior year period incurred higher amortization expense due to weaker market conditions at that time.

Sequentially, operating income before income taxes increased 6% compared with the first quarter due to growth in product sales and client asset values.

Corporate and Other Distributed Products. Operating revenues increased 2% to $17.8 million and operating losses before income taxes grew by $0.5 million compared with the second quarter of 2013, partially reflecting higher claims experience in the non-term life insurance products underwritten by our New York subsidiary. Allocated net investment income was higher than a year ago primarily due to market value changes on the deposit asset backing a reinsurance agreement which were positive this year and negative in the prior year. Otherwise allocated net investment income continues to decline as Term Life required assets grow, excess capital is deployed and the yield on invested assets remains depressed.

Taxes

Our effective income tax rate for the second quarter of 2014 was 34.9%, which is lower than the prior year period rate of 35.5% primarily due to the limited deductibility of IPO stock awards that fully vested in April 2013. Sequentially, our effective income tax rate was consistent with 34.9% in the first quarter.

Capital and Liquidity

In conjunction with our plan to repurchase $150 million in shares of Primerica common stock in 2014, we completed a redundant reserve financing transaction on July 31, 2014. Details of this transaction are described in our Form 8-K dated July 31, 2014 and filed August 6, 2014. During the second quarter we repurchased $21.9 million, or 480,902, shares of Primerica common stock for a total of $35.0 million, or 763,902, shares repurchased year-to-date.

Primerica Life Insurance Company’s statutory risk-based capital (RBC) ratio was estimated to be in excess of 480% as of June 30, 2014, well positioned to support existing operations and fund future growth. Our debt-to-capital ratio was 22.3% June 30, 2014.

As of June 30, 2014, our investments and cash totaled $2.04 billion compared with $2.01 billion as of March 31, 2014. Our invested asset portfolio had a net unrealized gain of $138.5 million (net of unrealized losses of $5.6 million) at June 30, 2014, up from $113.2 million at March 31, 2014 due to a decline in interest rates and credit spread tightening.

Non-GAAP Financial Measures

We report financial results in accordance with U.S. generally accepted accounting principles (GAAP). We also present adjusted direct premiums, other ceded premiums, operating revenues, operating income before income taxes, net operating income and adjusted stockholders’ equity. Adjusted direct premiums and other ceded premiums are net of amounts ceded to affiliates of Citigroup, Inc. (“Citigroup”) under coinsurance transactions that were executed concurrent with our IPO. Operating revenues, operating income before income taxes and net operating income exclude the impact of realized investment gains and losses, including other than temporary impairments (OTTI), for all periods presented. Operating income before income taxes and net operating income exclude the expense associated with our IPO-related equity awards and the impact of charges recorded for the potential settlement of claims made by certain Florida Retirement System plan participants for all periods presented. Adjusted stockholders' equity excludes the impact of net unrealized gains and losses on invested assets for all periods presented. Our definitions of these non-GAAP financial measures may differ from the definitions of similar measures used by other companies. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating our financial performance. Furthermore, management believes that these non-GAAP financial measures may provide users with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of our core ongoing business. These measures have limitations, and investors should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Reconciliations of non-GAAP to GAAP financial measures are attached to this release.

Earnings Webcast Information

Primerica will hold a webcast Thursday, August 7, 2014 at 10:00 am ET, to discuss second quarter results. This release and a detailed financial supplement will be posted on Primerica’s website. Investors are encouraged to review these materials. To access the webcast go to http://investors.primerica.com at least 15 minutes prior to the event to register, download and install any necessary software.

A replay of the call will be available for approximately 30 days on Primerica’s website, http://investors.primerica.com.

Forward-Looking Statements

Except for historical information contained in this press release, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from anticipated or projected results. Those risks and uncertainties include, among others, our failure to continue to attract and license new recruits, retain sales representatives or license or maintain the licensing of our sales representatives; our or our sales representatives’ violation of or non-compliance with laws and regulations; incorrect assumptions used to price our insurance policies; the failure of our investment products to remain competitive with other investment options; our failure to meet RBC standards or other minimum capital and surplus requirements; a downgrade or potential downgrade in our insurance subsidiaries’ financial strength ratings or our senior debt ratings; inadequate or unaffordable reinsurance or the failure of our reinsurers to perform their obligations; heightened standards of conduct or more stringent licensing requirements for our sales representatives; the inability of our subsidiaries to pay dividends or make distributions; the loss of key personnel; and general changes in economic and financial conditions, including the effects of credit deterioration and interest rate fluctuations on our invested asset portfolio. These and other risks and uncertainties affecting us are more fully described in our filings with the Securities and Exchange Commission, which are available in the "Investor Relations" section of our website at http://investors.primerica.com. Primerica assumes no duty to update its forward-looking statements as of any future date.

About Primerica, Inc.

Primerica, Inc., headquartered in Duluth, GA, is a leading distributor of financial products to middle income households in North America. Primerica representatives educate their Main Street clients about how to better prepare for a more secure financial future by assessing their needs and providing appropriate solutions through term life insurance, which we underwrite, and mutual funds, annuities and other financial products, which we distribute primarily on behalf of first parties. In addition, Primerica provides an entrepreneurial full or part-time business opportunity for individuals seeking to earn income by distributing the company’s financial products. We insured more than 4 million lives and have over 2 million client investment accounts at December 31, 2013. Primerica stock is included in the S&P MidCap 400 and the Russell 2000 stock indices and is traded on The New York Stock Exchange under the symbol “PRI”.

Investor Contact:

Kathryn Kieser

470-564-7757

Email: investorrelations@primerica.com

Media Contact:

Keith Hancock

470-564-6328

Email: Keith.Hancock@Primerica.com

PRIMERICA, INC. AND SUBSIDIARIES

Condensed Balance Sheets

	June 30,		December 31,
	2014 (1)		2013
	(In thousands)
Assets
Investments:
Fixed maturity securities available for sale, at fair value	$	1,804,163	$	1,755,712
Equity securities available for sale, at fair value		50,436		39,894
Trading securities, at fair value		9,236		12,991
Policy loans and other invested assets		28,378		26,806
Total investments		1,892,213		1,835,403
Cash and cash equivalents		150,621		149,189
Accrued investment income		17,874		18,127
Due from reinsurers		4,077,734		4,055,054
Deferred policy acquisition costs		1,293,974		1,208,466
Premiums and other receivables		175,680		175,789
Intangible assets		66,521		68,863
Income taxes		38,676		32,450
Other assets		298,597		282,780
Separate account assets		2,581,659		2,503,829
Total assets	$	10,593,549	$	10,329,950

Liabilities and Stockholders' Equity
Liabilities:
Future policy benefits	$	5,180,013	$	5,063,103
Unearned premiums		1,236		1,802
Policy claims and other benefits payable		238,598		253,304
Other policyholders' funds		336,902		337,977
Notes payable		374,506		374,481
Income taxes		137,797		105,885
Other liabilities		346,538		377,690
Payable under securities lending		93,569		89,852
Separate account liabilities		2,581,659		2,503,829
Total liabilities		9,290,818		9,107,923

Stockholders' equity:
Common stock		542		548
Paid-in capital		447,949		472,633
Retained earnings		721,788		640,840
Accumulated other comprehensive income, net of income tax		132,452		108,006
Total stockholders' equity		1,302,731		1,222,027
Total liabilities and stockholders' equity	$	10,593,549	$	10,329,950

(1) Unaudited

PRIMERICA, INC. AND SUBSIDIARIES

Condensed Statements of Income

(Unaudited)

	Three months ended June 30,
	2014			2013
	(In thousands, except per-share amounts)
Revenues:
Direct premiums	$	576,740		$	568,391
Ceded premiums		(410,546	)		(417,450	)
Net premiums		166,194			150,941
Commissions and fees		132,039			117,182
Net investment income		21,681			21,027
Realized investment gains (losses), including OTTI		831			3,468
Other, net		10,385			10,872
Total revenues		331,130			303,490

Benefits and expenses:
Benefits and claims		72,412			64,322
Amortization of deferred policy acquisition costs		32,696			30,112
Sales commissions		67,364			57,638
Insurance expenses		28,192			26,513
Insurance commissions		3,881			4,132
Interest expense		8,552			8,793
Other operating expenses		42,293			45,030
Total benefits and expenses		255,390			236,540
Income from continuing operations before income taxes		75,740			66,950
Income taxes		26,469			23,782
Income from continuing operations		49,271			43,168
Income from discontinued operations, net of income taxes		-			322
Net income	$	49,271		$	43,490

Basic earnings per share:
Continuing operations	$	0.89		$	0.75
Discontinued operations		-			0.01
Basic earnings per share	$	0.89		$	0.76

Diluted earnings per share:
Continuing operations	$	0.89		$	0.73
Discontinued operations		-			0.01
Diluted earnings per share	$	0.89		$	0.74

Shares used in computing earnings per share:
Basic		54,927			56,511
Diluted		54,950			57,849

PRIMERICA, INC. AND SUBSIDIARIES

Consolidated Operating Results Reconciliation

(Unaudited – in thousands, except per share amounts)

	Three months ended June 30,
	2014			2013			% Change
Operating revenues	$	330,299		$	300,022		10%
Realized investment gains (losses), including OTTI		831			3,468
Total revenues	$	331,130		$	303,490		9%

Operating income before income taxes	$	74,909		$	63,844		17%
Realized investment gains (losses), including OTTI		831			3,468
Other operating expense - FRS legal settlement		-			(187	)
Other operating expense - IPO equity awards		-			(175	)
Income from continuing operations before income taxes	$	75,740		$	66,950		13%

Net operating income	$	48,731		$	41,165		18%
Realized investment gains (losses), including OTTI		831			3,468
Other operating expense - FRS legal settlement		-			(187	)
Other operating expense - IPO equity awards		-			(175	)
Tax impact of reconciling items		(291	)		(1,103	)
Income from continuing operations		49,271			43,168		14%
Income from discontinued operations, net of income taxes		-			322
Net income	$	49,271		$	43,490		13%

Diluted operating earnings per share (1)	$	0.88		$	0.70		25%
Net after-tax impact of operating adjustments and discontinued operations		0.01			0.04
Diluted earnings per share (1)	$	0.89		$	0.74		19%

(1) Percentage change in earnings per share is calculated prior to rounding per share amounts.

TERM LIFE INSURANCE SEGMENT

Adjusted Premiums Reconciliation

(Unaudited – in thousands)

	Three months ended June 30,
	2014			2013
Adjusted direct premiums	$	223,705		$	201,422
Premiums ceded to Citigroup		344,143			357,613
Direct premiums	$	567,848		$	559,035

Other ceded premiums	$	(63,423	)	$	(56,609	)
Premiums ceded to Citigroup		(344,143	)		(357,613	)
Ceded premiums	$	(407,566	)	$	(414,222	)

Net premiums	$	160,282		$	144,813

INVESTMENT AND SAVINGS PRODUCTS SEGMENT

Operating Results Reconciliation

(Unaudited – in thousands)

	Three months ended June 30,
	2014		2013
Operating income before income taxes	$	36,048	$	27,675
Other operating expense - FRS legal settlement		-		(187	)
Income from continuing operations before income taxes	$	36,048	$	27,488

CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT

Operating Results Reconciliation

(Unaudited – in thousands)

	Three months ended June 30,
	2014			2013
Operating revenues	$	17,785		$	17,479
Realized investment gains (losses), including OTTI		831			3,468
Total revenues	$	18,616		$	20,947

Operating loss before income taxes	$	(16,209	)	$	(15,728	)
Realized investment gains (losses), including OTTI		831			3,468
Other operating expense - IPO equity awards		-			(175	)
Loss from continuing operations before income taxes	$	(15,378	)	$	(12,435	)

PRIMERICA, INC. AND SUBSIDIARIES

Adjusted Stockholders' Equity Reconciliation

(Unaudited – in thousands)


	June 30, 2014
Adjusted stockholders' equity	$	1,212,028
Unrealized net investment gains recorded in stockholders' equity, net of income tax		90,703
Stockholders' equity	$	1,302,731

Supplemental Financial Information

Second 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	9-12
Investment and Savings Products segment - financial results, key statistics, and financial analysis	13

Investment portfolio	14-16

Five-year historical key statistics	17

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.

Table of Contents

PRIMERICA, INC.
Financial Supplement

SECOND QUARTER 2014

This document is a financial supplement to our second 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.

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 17

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
Condensed Balance Sheets
Assets:
Investments and cash	$	2,068,752		$	2,115,144		$	1,876,077		$	1,909,560		$	1,984,592		$	2,014,610		$	2,042,834
Due from reinsurers		4,005,194			4,005,539			3,993,258			4,033,138			4,055,054			4,074,527			4,077,734
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
Other assets		579,393			599,840			566,809			564,953			578,009			597,265			597,348
Separate account assets		2,618,115			2,614,669			2,435,740			2,512,886			2,503,829			2,458,739			2,581,659
Total assets	$	10,337,877		$	10,433,316		$	10,005,426		$	10,199,680		$	10,329,950		$	10,388,124		$	10,593,549

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
Other policy liabilities		606,310			614,892			584,587			587,646			593,083			585,216			576,737
Income taxes		114,611			122,925			89,713			101,708			105,885			127,906			137,797
Other liabilities		358,577			366,670			344,649			329,567			377,690			375,864			346,536
Notes payable		374,433			374,445			374,457			374,469			374,481			374,494			374,506
Payable under securities lending		139,927			133,325			86,272			75,852			89,852			109,094			93,569
Separate account liabilities		2,618,115			2,614,669			2,435,740			2,512,886			2,503,829			2,458,739			2,581,659
Total liabilities		9,062,461			9,125,463			8,859,162			9,004,174			9,107,923			9,134,591			9,290,818
Stockholders’ equity:
Common stock ($0.01 par value) (1)		564			567			545			547			548			546			542
Paid-in capital		602,269			609,100			456,050			464,784			472,632			462,837			447,949
Retained earnings		503,173			535,609			572,714			609,778			640,840			679,183			721,788
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
Net unrealized investment losses other-than-temporarily impaired		(1,035	)		(1,045	)		(1,047	)		(1,047	)		(1,346	)		(1,346	)		(1,346	)
Cumulative translation adjustment		55,488			51,358			43,158			48,672			41,975			33,404			41,749
Total stockholders’ equity		1,275,416			1,307,853			1,146,265			1,195,505			1,222,027			1,253,532			1,302,731
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

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
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
Net unrealized investment losses other-than-temporarily impaired		(1,035	)		(1,045	)		(1,047	)		(1,047	)		(1,346	)		(1,346	)		(1,346	)
Total reconciling items		113,923			111,219			73,797			71,726			66,032			77,564			90,703
Total stockholders’ equity	$	1,275,416		$	1,307,853		$	1,146,265		$	1,195,505		$	1,222,027		$	1,253,532		$	1,302,731

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
Net Income		40,270			38,845			43,490			43,190			37,201			45,080			49,271
Shareholder dividends		(5,321	)		(6,409	)		(6,385	)		(6,126	)		(6,138	)		(6,738	)		(6,666	)
Retirement of shares and warrants		(98,208	)		(3,077	)		(166,395	)		—			—			(19,187	)		(21,972	)
Net foreign currency translation adjustment		(2,746	)		(4,130	)		(8,200	)		5,514			(6,697	)		(8,571	)		8,346
Other, net		8,559			9,911			13,323			8,736			7,850			9,389			7,081
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

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
General expenses deferred		6,869			6,631			8,669			7,399			7,396			7,273			8,136
Commission costs deferred		60,349			60,048			63,835			65,535			63,828			69,559			68,674
Amortization of deferred policy acquisition costs		(34,628	)		(31,252	)		(30,111	)		(32,192	)		(35,627	)		(35,193	)		(32,696	)
Foreign currency impact and other, net		(2,187	)		(3,726	)		(6,974	)		4,860			(6,274	)		(7,122	)		6,877
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)	Outstanding common shares exclude restricted stock units.

4 of 17

Financial Results and Other Statistical Data

PRIMERICA, INC.
Financial Supplement

																			YOY Q2											YOY YTD
(Dollars in thousands, except per-share data)	Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 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			(1,584,224	)	-2.8	%		56,553,204			55,074,660			(1,478,544	)	-2.6	%

Net income	$	38,845		$	43,490		$	43,190		$	37,201		$	45,080		$	49,271		$	5,781		13.3	%	$	82,335		$	94,352		$	12,017		14.6	%
Less income attributable to unvested participating securities		(1,017	)		(553	)		(556	)		(482	)		(576	)		(542	)		10		1.9	%		(1,602	)		(1,122	)		480		30.0	%
Net income used in computing basic EPS	$	37,828		$	42,938		$	42,633		$	36,718		$	44,504		$	48,729		$	5,792		13.5	%	$	80,733		$	93,229		$	12,497		15.5	%
Basic earnings per share	$	0.67		$	0.76		$	0.78		$	0.67		$	0.81		$	0.89		$	0.13		16.8	%	$	1.43		$	1.69		$	0.27		18.6	%

Net operating income	$	38,602		$	41,165		$	40,996		$	46,234		$	43,314		$	48,731		$	7,566		18.4	%	$	79,767		$	92,044		$	12,277		15.4	%
Less operating income attributable to unvested participating securities		(1,011	)		(523	)		(528	)		(600	)		(554	)		(536	)		(13	)	-2.6	%		(1,552	)		(1,095	)		457		29.5	%
Net operating income used in computing basic operating EPS	$	37,591		$	40,642		$	40,468		$	45,634		$	42,760		$	48,194		$	7,552		18.6	%	$	78,215		$	90,950		$	12,735		16.3	%
Basic operating income per share	$	0.66		$	0.72		$	0.74		$	0.83		$	0.77		$	0.88		$	0.16		22.0	%	$	1.38		$	1.65		$	0.27		19.4	%

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			(1,584,224	)	-2.8	%		56,553,204			55,074,660			(1,478,544	)	-2.6	%
Dilutive impact of warrants and options		1,809,066			1,338,164			1,187			15,012			21,997			23,046			(1,315,118	)	-98.3	%		1,573,615			22,522			(1,551,093	)	-98.6	%
Shares used to calculate diluted EPS		58,407,393			57,848,949			54,958,461			55,095,627			55,246,401			54,949,607			(2,899,342	)	-5.0	%		58,126,819			55,097,182			(3,029,637	)	-5.2	%

Net income	$	38,845		$	43,490		$	43,190		$	37,201		$	45,080		$	49,271		$	5,781		13.3	%	$	82,335		$	94,352		$	12,017		14.6	%
Less income attributable to unvested participating securities		(991	)		(542	)		(556	)		(482	)		(576	)		(542	)		(0	)	-0.1	%		(1,566	)		(1,122	)		444		28.4	%
Net income used in computing diluted EPS	$	37,854		$	42,948		$	42,633		$	36,718		$	44,504		$	48,729		$	5,781		13.5	%	$	80,769		$	93,230		$	12,461		15.4	%
Diluted earnings per share	$	0.65		$	0.74		$	0.78		$	0.67		$	0.81		$	0.89		$	0.14		19.4	%	$	1.39		$	1.69		$	0.30		21.8	%

Net operating income	$	38,602		$	41,165		$	40,996		$	46,234		$	43,314		$	48,731		$	7,566		18.4	%	$	79,767		$	92,044		$	12,277		15.4	%
Less operating income attributable to unvested participating securities		(985	)		(513	)		(528	)		(600	)		(554	)		(536	)		(23	)	-4.6	%		(1,517	)		(1,094	)		423		27.9	%
Net operating income used in computing diluted operating EPS	$	37,617		$	40,652		$	40,468		$	45,635		$	42,760		$	48,194		$	7,542		18.6	%	$	78,250		$	90,950		$	12,700		16.2	%
Diluted operating income per share	$	0.64		$	0.70		$	0.74		$	0.83		$	0.77		$	0.88		$	0.17		24.8	%	$	1.35		$	1.65		$	0.30		22.6	%


																			YOY Q2											YOY YTD
	Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 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		$	51,073		4.2	%	$	1,259,347		$	1,257,956		$	(1,391	)	-0.1	%
Average adjusted stockholders' equity	$	1,179,064		$	1,134,551		$	1,098,123		$	1,139,888		$	1,165,982		$	1,193,998		$	59,448		5.2	%	$	1,156,807		$	1,179,990		$	23,183		2.0	%

Net income return on stockholders' equity		12.0	%		14.2	%		14.8	%		12.3	%		14.6	%		15.4	%		1.2	%	nm			13.1	%		15.0	%		1.9	%	nm
Net income return on adjusted stockholders' equity		13.2	%		15.3	%		15.7	%		13.1	%		15.5	%		16.5	%		1.2	%	nm			14.2	%		16.0	%		1.8	%	nm

Net operating income return on adjusted stockholders' equity		13.1	%		14.5	%		14.9	%		16.2	%		14.9	%		16.3	%		1.8	%	nm			13.8	%		15.6	%		1.8	%	nm

Capital Structure
Debt-to-capital (1)		22.3	%		24.6	%		23.9	%		23.5	%		23.0	%		22.3	%		-2.3	%	nm			24.6	%		22.3	%		-2.3	%	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		(0.1x	)	nm			1.6	x		1.6	x		(0.1x	)	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		(0.1x	)	nm			1.7	x		1.7	x		(0.1x	)	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			(310,138	)	-0.6	%		54,503,822			54,193,684			(310,138	)	-0.6	%
Adjusted stockholders' equity per share	$	21.11		$	19.68		$	20.55		$	21.08		$	21.55		$	22.36		$	2.69		13.7	%	$	19.68		$	22.36		$	2.69		13.7	%

Financial Strength Ratings - Primerica Life Insurance Co
Moody's		A2			A2			A2			A2			A2			A3		nm			nm		nm			nm			nm			nm
S&P	AA-			AA-			AA-			AA-			AA-			AA-			nm			nm		nm			nm			nm			nm
A.M. Best		A+			A+			A+			A+			A+			A+		nm			nm		nm			nm			nm			nm

Holding Company Senior Debt Ratings
Moody's	Baa2			Baa2			Baa2			Baa2			Baa2			Baa3			nm			nm		nm			nm			nm			nm
S&P		A-			A-			A-			A-			A-			A-		nm			nm		nm			nm			nm			nm
A.M. Best		a-			a-			a-			a-			a-			a-		nm			nm		nm			nm			nm			nm

(1)	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).

5 of 17

Statements of Income

PRIMERICA, INC.
Financial Supplement

																			YOY Q2											YOY YTD
(Dollars in thousands)	Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 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		$	8,349		1.5	%	$	1,129,295		$	1,144,945		$	15,650		1.4	%
Ceded premiums		(410,604	)		(417,450	)		(407,489	)		(408,615	)		(402,715	)		(410,546	)		6,904		1.7	%		(828,054	)		(813,261	)		14,793		1.8	%
Net premiums		150,300			150,941			159,558			160,233			165,490			166,194			15,253		10.1	%		301,241			331,684			30,443		10.1	%
Net investment income		23,216			21,027			22,103			22,407			21,599			21,681			654		3.1	%		44,243			43,280			(963	)	-2.2	%
Commissions and fees:
Sales-based (1)		49,718			52,164			51,991			54,447			57,963			60,311			8,148		15.6	%		101,881			118,274			16,393		16.1	%
Asset-based (2)		47,428			49,436			50,981			53,432			53,749			56,058			6,621		13.4	%		96,864			109,806			12,942		13.4	%
Account-based (3)		9,453			9,588			9,811			10,010			9,720			9,957			369		3.8	%		19,042			19,678			636		3.3	%
Other commissions and fees		5,674			5,994			5,658			6,019			5,499			5,713			(281	)	-4.7	%		11,668			11,212			(455	)	-3.9	%
Realized investment (losses) gains		2,286			3,468			(407	)		899			263			831			(2,636	)	-76.0	%		5,754			1,094			(4,660	)	-81.0	%
Other, net		10,376			10,872			10,714			10,776			10,045			10,384			(488	)	-4.5	%		21,247			20,429			(818	)	-3.9	%
Total revenues		298,450			303,490			310,408			318,222			324,328			331,130			27,640		9.1	%		601,940			655,458			53,517		8.9	%
Benefits and expenses:
Benefits and claims		68,816			64,322			76,548			70,246			75,191			72,412			8,090		12.6	%		133,138			147,604			14,466		10.9	%
Amortization of DAC		31,252			30,111			32,192			35,627			35,193			32,696			2,585		8.6	%		61,364			67,890			6,526		10.6	%
Insurance commissions		4,223			4,131			3,933			4,242			4,083			3,881			(251	)	-6.1	%		8,354			7,964			(391	)	-4.7	%
Insurance expenses		25,512			26,513			26,576			26,854			28,502			28,192			1,679		6.3	%		52,026			56,694			4,668		9.0	%
Sales commissions:
Sales-based (1)		35,403			36,730			36,296			38,222			41,594			42,729			5,999		16.3	%		72,134			84,323			12,189		16.9	%
Asset-based (2)		16,637			17,778			18,775			19,956			20,695			21,831			4,053		22.8	%		34,415			42,526			8,111		23.6	%
Other sales commissions		3,007			3,129			3,316			2,986			2,833			2,803			(327	)	-10.4	%		6,137			5,636			(501	)	-8.2	%
Interest expense		8,795			8,792			8,726			8,704			8,606			8,552			(240	)	-2.7	%		17,588			17,159			(429	)	-2.4	%
Other operating expenses		45,664			45,031			41,273			55,241			40,798			42,292			(2,739	)	-6.1	%		90,694			83,090			(7,604	)	-8.4	%
Total benefits and expenses		239,310			236,539			247,636			262,078			257,495			255,390			18,850		8.0	%		475,850			512,885			37,035		7.8	%
Income from continued operations before income taxes		59,140			66,950			62,772			56,143			66,832			75,740			8,790		13.1	%		126,090			142,573			16,482		13.1	%
Income taxes		21,005			23,783			22,041			19,477			23,347			26,469			2,686		11.3	%		44,787			49,816			5,029		11.2	%
Net income from continued operations		38,135			43,168			40,732			36,666			43,485			49,271			6,103		14.1	%		81,303			92,756			11,453		14.1	%
Net income from discontinued operations net tax		710			322			2,458			534			1,596			—			(322	)	-100.0	%		1,032			1,596			563		54.6	%
Net income	$	38,845		$	43,490		$	43,190		$	37,201		$	45,080		$	49,271		$	5,781		13.3	%	$	82,335		$	94,352		$	12,017		14.6	%

Income from Continued Operations Before Income Taxes by Segment
Term Life	$	45,125		$	51,898		$	50,136		$	50,042		$	47,204		$	55,070		$	3,172		6.1	%	$	97,023		$	102,274		$	5,251		5.4	%
Investment & Savings Products		26,353			27,488			31,498			19,810			34,028			36,048			8,560		31.1	%		53,841			70,075			16,234		30.2	%
Corporate & Other Distributed Products		(12,338	)		(12,435	)		(18,862	)		(13,709	)		(14,399	)		(15,377	)		(2,941	)	-23.7	%		(24,773	)		(29,776	)		(5,003	)	-20.2	%
Income from continued operations before income taxes	$	59,140		$	66,950		$	62,772		$	56,143		$	66,832		$	75,740		$	8,790		13.1	%	$	126,090		$	142,573		$	16,482		13.1	%

(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 17

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

PRIMERICA, INC.
Financial Supplement

																			YOY Q2												YOY YTD
(Dollars in thousands)	Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 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		$	22,284			11.1	%	$	394,831		$	438,486		$	43,655		11.1	%
Premiums ceded to Citi		358,625			357,613			351,983			350,077			344,883			344,143			(13,471	)		-3.8	%		716,238			689,026			(27,212	)	-3.8	%
Term Life direct premiums	$	552,034		$	559,035		$	557,486		$	560,649		$	559,663		$	567,849		$	8,814			1.6	%		1,111,069			1,127,512		$	16,443		1.5	%


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	)	$	(6,815	)		-12.0	%	$	(105,837	)	$	(118,874	)	$	(13,036	)	-12.3	%
Premiums ceded to Citi		(358,625	)		(357,613	)		(351,983	)		(350,077	)		(344,883	)		(344,143	)		13,471			3.8	%		(716,238	)		(689,026	)		27,212		3.8	%
Term Life ceded premiums	$	(407,854	)	$	(414,222	)	$	(404,459	)	$	(405,506	)	$	(400,334	)	$	(407,566	)	$	6,655			1.6	%	$	(822,076	)	$	(807,900	)	$	14,176		1.7	%


Reconciliation from Operating Revenues to Total Revenues
Operating revenues	$	296,164		$	300,022		$	310,815		$	317,323		$	324,065		$	330,299		$	30,276			10.1	%	$	596,186		$	654,363		$	58,177		9.8	%
Realized investment gains/(losses)		2,286			3,468			(407	)		899			263			831		nm			nm				5,754			1,094		nm			nm
Total revenues	$	298,450		$	303,490		$	310,408		$	318,222		$	324,328		$	331,130		$	27,640			9.1	%	$	601,940		$	655,458		$	53,517		8.9	%


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		$	11,065			17.3	%	$	123,708		$	141,478		$	17,770		14.4	%
Operating income before income taxes reconciling items:
Realized investment gains/(losses)		2,286			3,468			(407	)		899			263			831		nm			nm				5,754			1,094		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		nm			nm				2,382			1,094		nm			nm

Income from continued operations before income taxes	$	59,140		$	66,950		$	62,772		$	56,143		$	66,832		$	75,740		$	8,790			13.1	%	$	126,090		$	142,573		$	16,482		13.1	%


Reconciliation from Net Operating Income to Net Income
Net operating income	$	38,602		$	41,165		$	40,996		$	46,234		$	43,314		$	48,731		$	7,566			18.4	%	$	79,767		$	92,044		$	12,277		15.4	%

Net operating income reconciling items:
Operating income before income taxes reconciling items		(724	)		3,106			(407	)		(14,652	)		263			831		nm			nm				2,382			1,094		nm			nm
Tax impact of operating income reconciling items at effective tax rate		257			(1,103	)		143			5,084			(92	)		(291	)	nm			nm				(846	)		(382	)	nm			nm
Total net operating income reconciling items		(467	)		2,003			(264	)		(9,568	)		171			541		nm			nm				1,536			712		nm			nm

Net income from continued operations	$	38,135		$	43,168		$	40,732		$	36,666		$	43,485		$	49,271		$	6,103			14.1	%	$	81,303		$	92,756		$	11,453		14.1	%
Net income from discontinued operations net tax		710			322			2,458			534			1,596			—		nm			nm				1,032			1,596		nm			nm
Net income	$	38,845		$	43,490		$	43,190		$	37,201		$	45,080		$	49,271		$	5,781			13.3	%	$	82,335		$	94,352		$	12,017		14.6	%

7 of 17

Segment Operating Results

PRIMERICA, INC.
Financial Supplement

																			YOY Q2												YOY YTD
(Dollars in thousands)		Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 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		$	8,814			1.6	%	$	1,111,069		$	1,127,512		$	16,443			1.5	%
Ceded premiums		(407,854	)		(414,222	)		(404,459	)		(405,506	)		(400,334	)		(407,566	)		6,655			1.6	%		(822,076	)		(807,900	)		14,176			1.7	%
Net premiums		144,180			144,813			153,027			155,142			159,330			160,282			15,469			10.7	%		288,993			319,612			30,619			10.6	%
Allocated net investment income		16,670			16,935			17,385			17,807			16,713			16,839			(96	)		-0.6	%		33,604			33,552			(52	)		-0.2	%
Other, net		6,984			7,435			7,399			7,199			6,937			7,244			(191	)		-2.6	%		14,419			14,182			(237	)		-1.6	%
Operating revenues		167,833			169,183			177,811			180,147			182,980			184,366			15,183			9.0	%		337,016			367,346			30,329			9.0	%
Benefits and expenses:
Benefits and claims		65,547			61,689			67,788			67,334			71,263			68,287			6,599			10.7	%		127,235			139,551			12,315			9.7	%
Amortization of DAC		27,865			25,777			29,679			32,570			32,721			29,778			4,001			15.5	%		53,642			62,499			8,858			16.5	%
Insurance commissions		1,199			1,062			901			1,437			1,315			929			(133	)		-12.5	%		2,261			2,244			(17	)		-0.8	%
Insurance expenses		23,846			24,508			25,125			24,603			26,413			26,293			1,785			7.3	%		48,353			52,706			4,353			9.0	%
Interest expense		4,252			4,250			4,183			4,161			4,063			4,009			(241	)		-5.7	%		8,502			8,072			(430	)		-5.1	%
Operating benefits and expenses		122,708			117,285			127,676			130,105			135,776			129,296			12,011			10.2	%		239,993			265,072			25,079			10.4	%
Operating income before income taxes	$	45,125		$	51,898		$	50,136		$	50,042		$	47,204		$	55,070		$	3,172			6.1	%	$	97,023		$	102,274		$	5,251			5.4	%

Investment & Savings Products
Revenues:
Commissions and fees:
Sales-based	$	49,718		$	52,164		$	51,991		$	54,447		$	57,963		$	60,311		$	8,148			15.6	%	$	101,881		$	118,274		$	16,393			16.1	%
Asset-based		47,428			49,436			50,981			53,432			53,749			56,058			6,621			13.4	%		96,864			109,806			12,942			13.4	%
Account-based		9,453			9,588			9,811			10,010			9,720			9,957			369			3.8	%		19,042			19,678			636			3.3	%
Other, net		2,122			2,173			1,941			2,444			1,839			1,821			(352	)		-16.2	%		4,295			3,660			(635	)		-14.8	%
Operating revenues		108,721			113,361			114,723			120,333			123,270			128,148			14,787			13.0	%		222,082			251,418			29,336			13.2	%
Benefits and expenses:
Amortization of DAC		2,892			3,876			2,542			1,885			2,335			2,172			(1,704	)		-44.0	%		6,768			4,507			(2,261	)		-33.4	%
Insurance commissions		2,274			2,331			2,249			2,193			2,086			2,237			(93	)		-4.0	%		4,605			4,324			(281	)		-6.1	%
Sales commissions:																																		#DIV/0!
Sales-based		35,403			36,730			36,296			38,222			41,594			42,729			5,999			16.3	%		72,134			84,323			12,189			16.9	%
Asset-based		16,637			17,778			18,775			19,956			20,695			21,831			4,053			22.8	%		34,415			42,526			8,111			23.6	%
Other operating expenses		25,162			24,971			23,362			22,716			22,532			23,131			(1,840	)		-7.4	%		50,133			45,663			(4,470	)		-8.9	%
Operating benefits and expenses		82,368			85,686			83,224			84,972			89,243			92,100			6,414			7.5	%		168,054			181,343			13,289			7.9	%
Operating income before income taxes	$	26,353		$	27,675		$	31,498		$	35,361		$	34,028		$	36,048		$	8,372			30.3	%	$	54,028		$	70,075		$	16,047			29.7	%

Corporate & Other Distributed Products
Revenues:
Direct premiums	$	8,870		$	9,356		$	9,561		$	8,200		$	8,542		$	8,892		$	(464	)		-5.0	%	$	18,226		$	17,434		$	(793	)		-4.3	%
Ceded premiums		(2,750	)		(3,229	)		(3,030	)		(3,109	)		(2,381	)		(2,980	)		249			7.7	%		(5,978	)		(5,362	)		617			10.3	%
Net premiums		6,120			6,127			6,531			5,091			6,160			5,912			(216	)		-3.5	%		12,248			12,072			(176	)		-1.4	%
Allocated net investment income		6,546			4,092			4,718			4,600			4,885			4,842			750			18.3	%		10,638			9,728			(911	)		-8.6	%
Commissions and fees:
Loans		293			406			264			256			200			101			(305	)		-75.1	%		699			300			(398	)		-57.0	%
DebtWatchers		491			462			482			411			385			360			(102	)		-22.2	%		953			745			(208	)	nm
Prepaid Legal Services		2,254			2,255			2,396			2,415			2,339			2,285			30			1.3	%		4,509			4,624			115			2.5	%
Auto and Homeowners Insurance		1,685			1,890			1,470			1,982			1,719			1,998			107			5.7	%		3,575			3,717			141			3.9	%
Long-Term Care Insurance		627			664			704			565			521			570			(94	)		-14.1	%		1,291			1,091			(200	)		-15.5	%
Other sales commissions		323			316			342			389			337			399			82			26.0	%		640			736			96			15.0	%
Other, net		1,270			1,264			1,374			1,133			1,269			1,318			54			4.3	%		2,533			2,587			54			2.1	%
Operating revenues		19,610			17,478			18,281			16,843			17,814			17,785			307			1.8	%		37,087			35,599			(1,488	)		-4.0	%
Benefits and expenses:
Benefits and claims		3,269			2,634			8,760			2,912			3,928			4,125			1,491			56.6	%		5,903			8,053			2,150			36.4	%
Amortization of DAC		496			459			(29	)		1,171			137			747			288			62.8	%		955			883			(71	)		-7.5	%
Insurance commissions		750			738			783			612			681			715			(24	)		-3.2	%		1,488			1,396			(93	)		-6.2	%
Insurance expenses		1,667			2,006			1,451			2,252			2,088			1,900			(106	)		-5.3	%		3,673			3,988			315			8.6	%
Sales commissions		3,007			3,129			3,316			2,986			2,833			2,803			(327	)		-10.4	%		6,137			5,636			(501	)		-8.2	%
Interest expense		4,543			4,543			4,543			4,543			4,543			4,543			1		nm				9,086			9,087			1		nm
Other operating expenses		17,492			19,698			17,911			16,975			18,266			19,161			(537	)		-2.7	%		37,190			37,427			238			0.6	%
Operating benefits and expenses		31,224			33,207			36,736			31,451			32,477			33,993			786			2.4	%		64,430			66,470			2,039			3.2	%
Operating income before income taxes	$	(11,614	)	$	(15,729	)	$	(18,455	)	$	(14,608	)	$	(14,662	)	$	(16,208	)	$	(479	)		-3.0	%	$	(27,343	)	$	(30,871	)	$	(3,527	)		-12.9	%

8 of 17

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

PRIMERICA, INC.
Financial Supplement

																			YOY Q2											YOY YTD
(Dollars in thousands)		Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 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		$	25,566		22.3	%	$	220,484		$	270,828		$	50,343		22.8	%
Ceded premiums		(18,577	)		(20,927	)		(18,937	)		(19,934	)		(23,400	)		(25,838	)		(4,911	)	-23.5	%		(39,504	)		(49,238	)		(9,734	)	-24.6	%
Net premiums		87,501			93,479			100,915			105,460			107,455			114,135			20,655		22.1	%		180,980			221,589			40,609		22.4	%
Allocated net investment income		3,513			3,941			4,438			5,055			5,182			5,734			1,793		45.5	%		7,454			10,916			3,462		46.4	%
Other, net		6,957			7,366			7,304			7,128			6,924			7,314			(52	)	-0.7	%		14,322			14,238			(85	)	-0.6	%
Operating revenues		97,971			104,786			112,657			117,643			119,561			127,182			22,397		21.4	%		202,756			246,743			43,986		21.7	%
Benefits and expenses:
Benefits and claims		32,124			33,764			39,105			40,357			40,597			40,773			7,009		20.8	%		65,888			81,370			15,481		23.5	%
Amortization of DAC		17,759			17,091			20,417			23,817			23,470			21,267			4,176		24.4	%		34,850			44,736			9,886		28.4	%
Insurance commissions		829			659			493			585			911			534			(124	)	-18.9	%		1,487			1,446			(42	)	-2.8	%
Insurance expenses		31,613			32,550			33,040			33,567			34,961			34,935			2,385		7.3	%		64,163			69,896			5,733		8.9	%
Interest expense		361			403			422			464			483			511			108		26.9	%		763			994			231		30.2	%
Operating benefits and expenses		82,686			84,466			93,477			98,789			100,422			98,020			13,554		16.0	%		167,152			198,442			31,290		18.7	%
Operating income before income taxes	$	15,284		$	20,320		$	19,180		$	18,854		$	19,138		$	29,163		$	8,843		43.5	%	$	35,604		$	48,301		$	12,697		35.7	%

New Term Life Insurance - Financial Analysis (1)
Direct premium	$	106,077		$	114,407		$	119,852		$	125,394		$	130,855		$	139,973			25,566		22.3	%		220,484			270,828			50,343		22.8	%

New term life operating income before income taxes	$	15,284		$	20,320		$	19,180		$	18,854		$	19,138		$	29,163			8,843		43.5	%		35,604			48,301			12,697		35.7	%
% of direct premium		14.4	%		17.8	%		16.0	%		15.0	%		14.6	%		20.8	%	nm			nm			16.1	%		17.8	%	nm			nm

Benefits & expenses, net (2)	$	69,289		$	72,441		$	78,952		$	84,692		$	88,378		$	88,412			15,971		22.0	%		141,730			176,790			35,060		24.7	%
% of direct premium		65.3	%		63.3	%		65.9	%		67.5	%		67.5	%		63.2	%	nm			nm			64.3	%		65.3	%	nm			nm

Insurance expenses, net (3)	$	24,656		$	25,184		$	25,736		$	26,439		$	28,038		$	27,621			2,436		9.7	%		49,841			55,658			5,818		11.7	%
% of direct premium		23.2	%		22.0	%		21.5	%		21.1	%		21.4	%		19.7	%	nm			nm			22.6	%		20.6	%	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		$	(16,752	)	-3.8	%	$	890,585		$	856,684		$	(33,901	)	-3.8	%
Ceded premiums		(389,277	)		(393,294	)		(385,522	)		(385,572	)		(376,934	)		(381,728	)		11,566		2.9	%		(782,572	)		(758,662	)		23,910		3.1	%
Net premiums		56,679			51,334			52,112			49,682			51,875			46,148			(5,186	)	-10.1	%		108,013			98,023			(9,991	)	-9.2	%
Allocated net investment income		13,156			12,994			12,947			12,752			11,531			11,105			(1,889	)	-14.5	%		26,150			22,636			(3,514	)	-13.4	%
Other, net		27			70			96			70			14			(69	)		(139	)	nm			96			(56	)		(152	)	nm
Operating revenues		69,863			64,397			65,155			62,504			63,420			57,183			(7,214	)	-11.2	%		134,260			120,603			(13,657	)	-10.2	%
Benefits and expenses:
Benefits and claims		33,422			27,925			28,683			26,977			30,666			27,514			(410	)	-1.5	%		61,347			58,181			(3,166	)	-5.2	%
Amortization of DAC		10,105			8,686			9,262			8,753			9,252			8,511			(175	)	-2.0	%		18,791			17,763			(1,028	)	-5.5	%
Insurance commissions		371			404			408			852			404			395			(9	)	-2.2	%		774			799			25		3.2	%
Insurance expenses		9,128			8,598			8,490			7,203			7,664			7,384			(1,214	)	-14.1	%		17,726			15,047			(2,678	)	-15.1	%
Insurance expense allowance		(16,896	)		(16,640	)		(16,405	)		(16,168	)		(16,212	)		(16,025	)		615		3.7	%		(33,536	)		(32,237	)		1,298		3.9	%
Interest expense		3,892			3,847			3,761			3,698			3,580			3,498			(349	)	-9.1	%		7,739			7,077			(661	)	-8.5	%
Operating benefits and expenses		40,022			32,819			34,199			31,316			35,354			31,276			(1,543	)	-4.7	%		72,841			66,630			(6,211	)	-8.5	%
Operating income before income taxes	$	29,841		$	31,578		$	30,956		$	31,188		$	28,066		$	25,907		$	(5,671	)	-18.0	%	$	61,419		$	53,973		$	(7,446	)	-12.1	%

Legacy Term Life Insurance - Financial Analysis (4)
Direct premium	$	445,957		$	444,628		$	437,634		$	435,255		$	428,809		$	427,876			(16,752	)	-3.8	%		890,585			856,684			(33,901	)	-3.8	%

Legacy term life operating income before income taxes	$	29,841		$	31,578		$	30,956		$	31,188		$	28,066		$	25,907			(5,671	)	-18.0	%		61,419			53,973			(7,446	)	-12.1	%
% of direct premium		6.7	%		7.1	%		7.1	%		7.2	%		6.5	%		6.1	%	nm			nm			6.9	%		6.3	%	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.

9 of 17

Term Life Insurance - Key Statistics

PRIMERICA, INC.
Financial Supplement

																			YOY Q2												YOY YTD
(Dollars in thousands, except as noted)		Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 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			4,465			4.9	%		92,373			95,566			3,193	3.5	%
New life-licensed representatives		7,165			8,875			9,630			8,485			7,447			9,082			207			2.3	%		16,040			16,529			489	3.0	%
Non-renewal and terminated representatives		(8,621	)		(7,565	)		(7,328	)		(7,448	)		(7,631	)		(7,868	)		(303	)		-4.0	%		(16,186	)		(15,499	)		687	4.2	%
Life-insurance licensed sales force, end of period		90,917			92,227			94,529			95,566			95,382			96,596			4,369			4.7	%		92,227			96,596			4,369	4.7	%

Estimated annualized issued term life premium ($mills) (1):
Premium from new policies	$	40.2		$	45.9		$	43.9		$	43.5		$	40.1		$	48.0		$	2.1			4.6	%	$	86.1		$	88.1		$	2.0	2.3	%
Additions and increases in premium		11.4			12.3			12.3			12.5			12.4			13.0			0.7			5.7	%		23.7			25.4			1.7	7.1	%
Total estimated annualized issued term life premium	$	51.6		$	58.2		$	56.2		$	56.0		$	52.5		$	61.1		$	2.8			4.9	%	$	109.8		$	113.5		$	3.7	3.4	%

Issued term life policies		50,356			57,622			53,997			52,642			49,320			59,569			1,947			3.4	%		107,978			108,889			911	0.8	%
Estimated average annualized issued term life premium per policy (1)(2)	$	799		$	797		$	813		$	826		$	813		$	806		$	10			1.2	%	$	798		$	809		$	12	1.5	%

Term life face amount in-force, beginning of period ($mills)	$	670,412		$	670,414		$	674,355		$	676,360		$	674,868		$	673,078		$	2,663			0.4	%	$	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			695			3.9	%		33,508			34,241			734	2.2	%
Terminated term life face amount		(14,917	)		(13,139	)		(14,346	)		(15,329	)		(14,160	)		(12,759	)		380			2.9	%		(28,056	)		(26,919	)		1,137	4.1	%
Foreign currency impact, net		(790	)		(719	)		(704	)		(3,383	)		(3,378	)		3,166			3,885		nm				(1,509	)		(212	)		1,297	nm
Term life face amount in-force, end of period	$	670,414		$	674,355		$	676,360		$	674,868		$	673,078		$	681,978		$	7,623			1.1	%	$	674,355		$	681,978		$	7,623	1.1	%

(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 17

Term Life Insurance - Financial Results and Analysis

PRIMERICA, INC.
Financial Supplement

(Dollars in thousands)																			YOY Q2												YOY YTD
Term Life Insurance Operating Income Before Income Taxes		Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 2014		$ Change			% Change			YTD 2013			YTD 2014			$ Change			% Change
Revenues:
Direct Premiums	$	552,034		$	559,035		$	557,486		$	560,649		$	559,663		$	567,849			8,814			1.6	%	$	1,111,069		$	1,127,512		$	16,443			1.5	%
Premiums ceded to Citi (1)		(358,625	)		(357,613	)		(351,983	)		(350,077	)		(344,883	)		(344,143	)		13,471			3.8	%		(716,238	)		(689,026	)		27,212			3.8	%
Adjusted direct premiums (2)		193,409			201,422			205,503			210,572			214,780			223,706			22,284			11.1	%		394,831			438,486			43,655			11.1	%
Other ceded premiums (3)		(49,229	)		(56,608	)		(52,476	)		(55,430	)		(55,450	)		(63,424	)		(6,815	)		-12.0	%		(105,837	)		(118,874	)		(13,036	)		-12.3	%
Net premiums		144,180			144,813			153,027			155,142			159,330			160,282			15,469			10.7	%		288,993			319,612			30,619			10.6	%
Allocated net investment income		16,670			16,935			17,385			17,807			16,713			16,839			(96	)		-0.6	%		33,604			33,552			(52	)		-0.2	%
Other, net		6,984			7,435			7,399			7,199			6,937			7,244			(191	)		-2.6	%		14,419			14,182			(237	)		-1.6	%
Operating revenues		167,833			169,183			177,811			180,147			182,980			184,366			15,183			9.0	%		337,016			367,346			30,329			9.0	%
Benefits and expenses:
Benefits and claims		65,547			61,689			67,788			67,334			71,263			68,287			6,599			10.7	%		127,235			139,551			12,315			9.7	%
Amortization of DAC		27,865			25,777			29,679			32,570			32,721			29,778			4,001			15.5	%		53,642			62,499			8,858			16.5	%
Insurance commissions		1,199			1,062			901			1,437			1,315			929			(133	)		-12.5	%		2,261			2,244			(17	)		-0.8	%
Insurance expenses		23,846			24,508			25,125			24,603			26,413			26,293			1,785			7.3	%		48,353			52,706			4,353			9.0	%
Interest expense		4,252			4,250			4,183			4,161			4,063			4,009			(241	)		-5.7	%		8,502			8,072			(430	)		-5.1	%
Operating benefits and expenses		122,708			117,285			127,676			130,105			135,776			129,296			12,011			10.2	%		239,993			265,072			25,079			10.4	%
Operating income before income taxes	$	45,125		$	51,898		$	50,136		$	50,042		$	47,204		$	55,070		$	3,172			6.1	%	$	97,023		$	102,274		$	5,251			5.4	%

Total Term Life Insurance - Financial Analysis
Primary direct premiums (4)	$	106,077		$	114,407		$	119,852		$	125,394		$	130,855		$	139,973		$	25,566			22.3	%	$	220,484		$	270,828		$	50,343			22.8	%
Legacy direct premiums (5)		445,957			444,628			437,634			435,255			428,809			427,876			(16,752	)		-3.8	%		890,585			856,684			(33,901	)		-3.8	%
Total direct premiums	$	552,034		$	559,035		$	557,486		$	560,649		$	559,663		$	567,849		$	8,814			1.6	%	$	1,111,069		$	1,127,512		$	16,443			1.5	%

Premiums ceded to Citi	$	358,625		$	357,613		$	351,983		$	350,077		$	344,883		$	344,143			(13,471	)		-3.8	%	$	716,238		$	689,026		$	(27,212	)		-3.8	%
% of Legacy direct premiums		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			13,414			11.3	%	$	233,073		$	258,424		$	25,352			10.9	%
% of adjusted direct premiums		59.3	%		58.7	%		58.5	%		58.3	%		59.0	%		58.9	%	nm			nm				59.0	%		58.9	%	nm			nm

DAC amortization & insurance commissions	$	29,064		$	26,839		$	30,580		$	34,007		$	34,037		$	30,707			3,868			14.4	%	$	55,903		$	64,744		$	8,841			15.8	%
% of adjusted direct premiums		15.0	%		13.3	%		14.9	%		16.1	%		15.8	%		13.7	%	nm			nm				14.2	%		14.8	%	nm			nm

Insurance expenses, net (7)	$	16,862		$	17,072		$	17,726		$	17,404		$	19,476		$	19,048			1,976			11.6	%	$	33,934		$	38,524		$	4,590			13.5	%
% of adjusted direct premiums		8.7	%		8.5	%		8.6	%		8.3	%		9.1	%		8.5	%	nm			nm				8.6	%		8.8	%	nm			nm

Total term life operating income before income taxes	$	45,125		$	51,898		$	50,136		$	50,042		$	47,204		$	55,070			3,172			6.1	%	$	97,023		$	102,274		$	5,251			5.4	%
% of adjusted direct premiums		23.3	%		25.8	%		24.4	%		23.8	%		22.0	%		24.6	%	nm			nm				24.6	%		23.3	%	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

11 of 17

Term Life Insurance - Historical Financial Results and Analysis

PRIMERICA, INC.
Financial Supplement

(Dollars in thousands)
Term Life Insurance Operating Income Before Income Taxes	FY 2011			FY 2012			FY 2013				Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012			Q2 2012			Q3 2012			Q4 2012
Revenues:
Direct Premiums	$	2,149,594		$	2,193,280		$	2,229,204		$	532,167		$	540,283		$	539,693		$	537,450		$	542,157		$	550,329		$	549,069		$	551,725
Premiums ceded to Citi (1)		(1,536,631	)		(1,473,314	)		(1,418,299	)		(390,441	)		(389,078	)		(382,104	)		(375,008	)		(372,420	)		(371,184	)		(365,906	)		(363,804	)
Adjusted direct premiums (2)		612,963			719,966			810,905			141,726			151,205			157,589			162,443			169,737			179,145			183,163			187,921
Other ceded premiums (3)		(161,051	)		(176,308	)		(213,743	)		(36,940	)		(42,812	)		(39,829	)		(41,469	)		(42,139	)		(40,854	)		(45,334	)		(47,981	)
Net premiums		451,912			543,658			597,162			104,786			108,393			117,760			120,973			127,598			138,292			137,829			139,939
Allocated net investment income		60,668			66,119			68,796			15,286			15,018			15,215			15,148			15,630			16,112			17,411			16,967
Other, net		31,666			30,357			29,017			7,653			7,580			8,289			8,144			7,547			7,753			7,788			7,268
Operating revenues		544,246			640,134			694,975			127,725			130,991			141,264			144,266			150,775			162,157			163,028			164,174
Benefits and expenses:
Benefits and claims		197,159			239,346			262,357			47,351			43,921			52,067			53,820			57,509			59,984			60,733			61,120
Amortization of DAC		89,474			104,272			115,891			20,127			19,894			22,289			27,163			23,933			22,547			27,645			30,147
Insurance commissions		19,396			9,599			4,599			4,063			5,320			5,633			4,380			3,577			2,314			2,168			1,539
Insurance expenses		75,048			85,156			98,081			12,833			23,607			19,186			19,421			19,717			21,782			20,532			23,125
Interest expense		11,468			15,835			16,846			2,872			2,873			2,875			2,848			2,785			4,380			4,357			4,313
Operating benefits and expenses		392,545			454,208			497,774			87,246			95,615			102,050			107,633			107,521			111,008			115,435			120,244
Operating income before income taxes	$	151,701		$	185,926		$	197,201		$	40,479		$	35,376		$	39,214		$	36,633		$	43,254		$	51,148		$	47,593		$	43,931

Total Term Life Insurance - Financial Analysis
Primary direct premiums (4)	$	239,247		$	361,596		$	465,730		$	46,771		$	56,581		$	64,655		$	71,240		$	79,146		$	88,860		$	94,133		$	99,458
Legacy direct premiums (5)		1,910,347			1,831,684			1,763,473			485,396			483,702			475,038			466,211			463,011			461,470			454,936			452,267
Total direct premiums	$	2,149,594		$	2,193,280		$	2,229,204		$	532,167		$	540,283		$	539,693		$	537,450		$	542,157		$	550,329		$	549,069		$	551,725

Premiums ceded to Citi	$	1,536,631		$	1,473,314		$	1,418,299		$	390,441		$	389,078		$	382,104		$	375,008		$	372,420		$	371,184		$	365,906		$	363,804
% of Legacy direct premiums		80.4	%		80.4	%		80.4	%		80.4	%		80.4	%		80.4	%		80.4	%		80.4	%		80.4	%		80.4	%		80.4	%

Benefits and claims, net (6)	$	358,210		$	415,654		$	476,100		$	84,291		$	86,733		$	91,897		$	95,290		$	99,648		$	100,838		$	106,067		$	109,101
% of adjusted direct premiums		58.4	%		57.7	%		58.7	%		59.5	%		57.4	%		58.3	%		58.7	%		58.7	%		56.3	%		57.9	%		58.1	%

DAC amortization & insurance commissions	$	108,870		$	113,871		$	120,490		$	24,191		$	25,214		$	27,922		$	31,543		$	27,510		$	24,861		$	29,813		$	31,686
% of adjusted direct premiums		17.8	%		15.8	%		14.9	%		17.1	%		16.7	%		17.7	%		19.4	%		16.2	%		13.9	%		16.3	%		16.9	%

Insurance expenses, net (7)	$	43,381		$	54,798		$	69,064		$	5,180		$	16,027		$	10,897		$	11,277		$	12,169		$	14,029		$	12,743		$	15,857
% of adjusted direct premiums		7.1	%		7.6	%		8.5	%		3.7	%		10.6	%		6.9	%		6.9	%		7.2	%		7.8	%		7.0	%		8.4	%

Total term life operating income before income taxes	$	151,701		$	185,926		$	197,201		$	40,479		$	35,376		$	39,214		$	36,633		$	43,254		$	51,148		$	47,593		$	43,931
% of adjusted direct premiums		24.7	%		25.8	%		24.3	%		28.6	%		23.4	%		24.9	%		22.6	%		25.5	%		28.6	%		26.0	%		23.4	%

Reconciliation of Statement of Income Non-GAAP to GAAP Financial Measures for Term Life
Adjusted direct premiums (2)	$	612,963		$	719,966		$	810,905		$	141,726		$	151,205		$	157,589		$	162,443		$	169,737		$	179,145		$	183,163		$	187,921
Premiums ceded to Citi (1)		1,536,631			1,473,314			1,418,299			390,441			389,078			382,104			375,008			372,420			371,184			365,906			363,804
Direct premiums	$	2,149,594		$	2,193,280		$	2,229,204		$	532,167		$	540,283		$	539,693		$	537,450		$	542,157		$	550,329		$	549,069		$	551,725

Other ceded premiums (3)	$	(161,051	)	$	(176,308	)	$	(213,743	)	$	(36,940	)	$	(42,812	)	$	(39,829	)	$	(41,469	)	$	(42,139	)	$	(40,854	)	$	(45,334	)	$	(47,981	)
Premiums ceded to Citi (1)		(1,536,631	)		(1,473,314	)		(1,418,299	)		(390,441	)		(389,078	)		(382,104	)		(375,008	)		(372,420	)		(371,184	)		(365,906	)		(363,804	)
Reinsurance recoveries (8)		8,729			—			—			8,729			—			—			—			—			—			—			—
Ceded premiums	$	(1,688,953	)	$	(1,649,622	)	$	(1,632,041	)	$	(418,653	)	$	(431,890	)	$	(421,933	)	$	(416,477	)	$	(414,559	)	$	(412,038	)	$	(411,240	)	$	(411,786	)

Operating revenues	$	544,246		$	640,134		$	694,975		$	127,725		$	130,991		$	141,264		$	144,266		$	150,775		$	162,157		$	163,028		$	164,174
Reinsurance recoveries (8)		8,729			—			—			8,729			—			—			—			—			—			—			—
Total revenues	$	552,975		$	640,134		$	694,975		$	136,454		$	130,991		$	141,264		$	144,266		$	150,775		$	162,157		$	163,028		$	164,174

Operating income before income taxes	$	151,701		$	185,926		$	197,201		$	40,479		$	35,376		$	39,214		$	36,633		$	43,254		$	51,148		$	47,593		$	43,931
Reinsurance recoveries (8)		8,729			—			—			8,729			—			—			—			—			—			—			—
Income before income taxes	$	160,430		$	185,926		$	197,201		$	49,208		$	35,376		$	39,214		$	36,633		$	43,254		$	51,148		$	47,593		$	43,931

(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
(8)	Reinsurance recoveries - Impact of certain reinsurance recoveries in the first quarter of 2011 which previously had not been recognized due to the uncertain nature of their recovery

12 of 17

Investment and Savings Products - Financial Results, Key Statistics, and Financial Analysis

PRIMERICA, INC.
Financial Supplement

(Dollars in thousands, except as noted)																			YOY Q2												YOY YTD
Investment & Savings Products Operating Income Before Income Taxes		Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 2014		$ Change			% Change			YTD 2013			YTD 2014			$ Change			% Change
Revenues:
Commissions and fees:
Sales-based	$	49,718		$	52,164		$	51,991		$	54,447		$	57,963		$	60,311		$	8,148			15.6	%	$	101,881		$	118,274		$	16,393			16.1	%
Asset-based		47,428			49,436			50,981			53,432			53,749			56,058			6,62			13.4	%		96,864			109,806			12,942			13.4	%
Account-based		9,453			9,588			9,811			10,010			9,720			9,957			369			3.8	%		19,042			19,678			636			3.3	%
Other, net		2,122			2,173			1,941			2,444			1,839			1,821			(352	)		-16.2	%		4,295			3,660			(635	)		-14.8	%
Operating revenues		108,721			113,361			114,723			120,333			123,270			128,148			14,787			13.0	%		222,082			251,418			29,336			13.2	%
Benefits and expenses:
Amortization of DAC		2,892			3,876			2,542			1,885			2,335			2,172			(1,704	)		-44.0	%		6,768			4,507			(2,261	)		-33.4	%
Insurance commissions		2,274			2,331			2,249			2,193			2,086			2,237			(93	)		-4.0	%		4,605			4,324			(281	)		-6.1	%
Sales commissions:
Sales-based		35,403			36,730			36,296			38,222			41,594			42,729			5,999			16.3	%		72,134			84,323			12,189			16.9	%
Asset-based		16,637			17,778			18,775			19,956			20,695			21,831			4,053			22.8	%		34,415			42,526			8,111			23.6	%
Other operating expenses		25,162			24,971			23,362			22,716			22,532			23,131			(1,840	)		-7.4	%		50,133			45,663			(4,470	)		-8.9	%
Operating benefits and expenses		82,368			85,686			83,224			84,972			89,243			92,100			6,414			7.5	%		168,054			181,343			13,289			7.9	%
Operating income before income taxes	$	26,353		$	27,675		$	31,498		$	35,361		$	34,028		$	36,048		$	8,372			30.3	%	$	54,028		$	70,075		$	16,047			29.7	%


Key Statistics
Product sales ($mills)
Retail Mutual Funds	$	711.9		$	722.7		$	648.2		$	683.3		$	821.4		$	820.9		$	98.3			13.6	%	$	1,434.6		$	1,642.3		$	207.7			14.5	%
Indexed Annuities		92.9			111.7			104.4			104.0			84.2			84.7			(27.0	)		-24.1	%		204.6			168.9			(35.7	)		-17.4	%
Variable Annuities and other		388.1			361.5			388.0			384.3			365.8			417.1			55.5			15.4	%		749.7			782.8			33.2			4.4	%
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			126.8			10.6	%		2,388.9			2,594.1			205.2			8.6	%
Managed Accounts		56.7			57.5			57.1			53.8			62.8			65.3			7.8			13.6	%		114.2			128.2			14.0			12.2	%
Segregated Funds		115.6			64.3			51.0			51.7			76.6			51.1			(13.1	)		-20.4	%		179.9			127.8			(52.1	)		-29.0	%
Total product sales	$	1,365.3		$	1,317.7		$	1,248.7		$	1,277.1		$	1,410.8		$	1,439.2		$	121.5			9.2	%	$	2,683.0		$	2,850.0		$	167.0			6.2	%

Client asset values, beginning of period ($mills)	$	37,386		$	39,853		$	40,166		$	42,177		$	44,990		$	45,839		$	5,986			15.0	%	$	37,386		$	44,990		$	7,604			20.3	%
Inflows		1,365			1,318			1,249			1,277			1,411			1,439			121			9.2	%		2,683			2,850			167			6.2	%
Outflows (1)		(1,283	)		(1,165	)		(1,140	)		(1,146	)		(1,246	)		(1,211	)		(46	)		-4.0	%		(2,448	)		(2,457	)		(9	)		-0.4	%
Net flows		82			153			109			131			165			228			75		nm				235			393			158		nm
Change in market value, net and other (2)		2,384			161			1,901			2,682			683			1,941			1,781		nm				2,545			2,625			80		nm
Client asset values, end of period	$	39,853		$	40,166		$	42,177		$	44,990		$	45,839		$	48,008		$	7,842			19.5	%	$	40,166		$	48,008		$	7,842			19.5	%

Average client asset values ($mills)
Retail Mutual Funds	$	25,170		$	26,041		$	26,478		$	28,122		$	28,842		$	29,829		$	3,788			14.5	%	$	25,606		$	29,335		$	3,730			14.6	%
Managed Accounts		652			786			882			1,004			1,095			1,203			416			52.9	%		719			1,149			429			59.7	%
Indexed Annuities		441			545			648			750			839			921			375			68.9	%		493			880			387			78.4	%
Variable Annuities and other		9,869			10,352			10,687			11,410			11,839			12,152			1,800			17.4	%		10,111			11,996			1,885			18.6	%
Segregated Funds		2,624			2,601			2,529			2,546			2,449			2,507			(94	)		-3.6	%		2,613			2,478			(135	)		-5.2	%
Total	$	38,756		$	40,326		$	41,225		$	43,832		$	45,063		$	46,611		$	6,286			15.6	%	$	39,541		$	45,837		$	6,296			15.9	%

Average number of fee-generating accounts (thous) (3)		2,536			2,522			2,537			2,566			2,587			2,614			92			3.6	%		2,529			2,601			72			2.8	%


Financial Analysis

Sales-based net revenue as % of revenue-generating sales (4)		1.20	%		1.29	%		1.38	%		1.38	%		1.29	%		1.33	%	nm			nm				1.25	%		1.31	%	nm			nm

Asset-based net revenue as % of average asset values (5)		0.07	%		0.06	%		0.07	%		0.07	%		0.06	%		0.06	%	nm			nm				0.13	%		0.13	%	nm			nm

Account-based revenue per average fee generating account (6)	$	3.73		$	3.80		$	3.87		$	3.90		$	3.76		$	3.81		nm			nm			$	7.53		$	7.57		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

13 of 17

Investment Portfolio - Summary of Holdings

PRIMERICA, INC.
Financial Supplement

	As of or for the period ended June 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	$	150,621	$	150,621	$	-			7.5	%		8.0	%

Fixed Income:
Treasury		32,715		31,232		1,482			1.6	%		1.7	%		2.83	%	AAA
Government		139,298		129,496		9,803			6.9	%		6.9	%		4.32	%	AA
Tax-Exempt Municipal		5,901		5,839		61			0.3	%		0.3	%		3.33	%	AA-
Corporate		1,233,806		1,138,764		95,042			61.2	%		60.7	%		5.06	%	BBB+
Mortgage-Backed		132,314		121,919		10,395			6.6	%		6.5	%		4.98	%	AAA
Asset-Backed		69,344		69,416		(72	)		3.4	%		3.7	%		0.88	%	AA+
CMBS		88,145		83,827		4,318			4.4	%		4.5	%		3.97	%	AAA
Private		107,726		101,543		6,183			5.3	%		5.4	%		5.27	%	BBB
Redeemable Preferred		2,048		2,318		(270	)		0.1	%		0.1	%		20.56	%	A-
Convertible		2,101		1,666		435			0.1	%		0.1	%		5.50	%	BBB
Total Fixed Income		1,813,399		1,686,021		127,378			90.0	%		89.9	%		4.76	%	A

Equities:
Perpetual Preferred		13,938		13,051		887			0.7	%		0.7	%
Common Stock		24,289		16,553		7,737			1.2	%		0.9	%
Mutual Fund		6,160		3,701		2,459			0.3	%		0.2	%
Other		6,049		6,049		0			0.3	%		0.3	%
Total Equities		50,436		39,353		11,083			2.5	%		2.1	%

Total Invested Assets	$	2,014,456	$	1,875,994	$	138,462			100.0	%		100.0	%

Corporate Portfolio by Sector

Energy	$	147,228	$	135,556	$	11,672			11.9	%		11.9	%
Consumer Non Cyclical		141,251		129,763		11,488			11.5	%		11.4	%
Reits		140,481		131,629		8,852			11.4	%		11.6	%
Basic Industry		111,400		102,965		8,434			9.0	%		9.0	%
Electric		110,890		98,213		12,677			9.0	%		8.6	%
Banking		100,341		95,151		5,189			8.1	%		8.4	%
Insurance		81,613		73,947		7,666			6.6	%		6.5	%
Technology		80,511		76,102		4,409			6.5	%		6.7	%
Capital Goods		73,390		67,444		5,946			5.9	%		5.9	%
Communications		71,241		64,501		6,740			5.8	%		5.7	%
Consumer Cyclical		48,905		45,460		3,445			4.0	%		4.0	%
Transportation		36,261		34,310		1,951			2.9	%		3.0	%
Finance Companies		26,673		24,698		1,975			2.2	%		2.2	%
Brokerage		26,029		24,078		1,951			2.1	%		2.1	%
Industrial Other		19,433		18,423		1,010			1.6	%		1.6	%
Financial Other		9,423		9,090		333			0.8	%		0.8	%
Natural Gas		8,561		7,257		1,303			0.7	%		0.6	%
Total Corporate portfolio	$	1,233,631	$	1,138,588	$	95,042			100.0	%		100.0	%
	Error		Error
Fixed-Maturity Securities - Effective Maturity


Effective maturity
< 1 Yr.	$	198,174	$	193,602	$	4,572			10.9	%		11.5	%		4.07	%
1-2 Yrs.		133,501		127,868		5,633			7.4	%		7.6	%		4.44	%
2-5 Yrs.		626,726		563,658		63,068			34.6	%		33.4	%		5.39	%
5-10 Yrs.		805,592		757,554		48,038			44.4	%		44.9	%		4.51	%
> 10 Yrs.		49,405		43,339		6,067			2.7	%		2.6	%		5.07	%
Total Fixed Income	$	1,813,399	$	1,686,021	$	127,378			100.0	%		100.0	%		4.76	%

Duration

Fixed Income portfolio duration		4.3	years

Investment Portfolio - Quality Ratings as of June 30, 2014

PRIMERICA, INC.
Financial Supplement

(Dollars in thousands)
Investment Portfolio Quality Ratings (1)
	Amortized Cost		% of Total
Total Fixed Income portfolio:
Rating
AAA	$	286,504		17.0	%
AA		139,940		8.3	%
A		374,666		22.2	%
BBB		802,137		47.6	%
Below Investment Grade		82,267		4.9	%
NA		507		0.0	%
Total fixed income	$	1,686,021		100.0	%




	Amortized Cost		% of Total				Amortized Cost		% of Total
Corporate asset class:						Private asset class:
Rating						Rating
AAA	$	4,610		0.4	%	AAA	$	119		0.1	%
AA		62,253		5.5	%	AA		4,209		4.1	%
A		307,186		27.0	%	A		3,660		3.6	%
BBB		694,477		61.0	%	BBB		87,233		85.9	%
Below Investment Grade		70,059		6.2	%	Below Investment Grade		6,321		6.2	%
NA		178		0.0	%	NA		-		—
Total Corporate	$	1,138,764		100.0	%	Total Private	$	101,543		100.0	%



CMBS asset class:						Mortgage-Backed asset class:
Rating						Rating
AAA	$	74,669		89.1	%	AAA	$	113,100		92.8	%
AA		1,745		2.1	%	AA		3,944		3.2	%
A		1,858		2.2	%	A		1,659		1.4	%
BBB		4,285		5.1	%	BBB		3,215		2.6	%
Below Investment Grade		1,269		1.5	%	Below Investment Grade		-		—
NA		0		0.0	%	NA		-		—
Total CMBS	$	83,827		100.0	%	Total Mortgage-Backed	$	121,919		100.0	%



Asset-Backed asset class:						Treasury & Government asset classes:
Rating						Rating
AAA	$	36,067		52.0	%	AAA	$	57,343		35.7	%
AA		18,087		26.1	%	AA		49,403		30.7	%
A		14,533		20.9	%	A		43,385		27.0	%
BBB		229		0.3	%	BBB		10,597		6.6	%
Below Investment Grade		500		0.7	%	Below Investment Grade		-		—
NA		-		—		NA		-		—
Total Asset-Backed	$	69,416		100.0	%	Total Treasury & Government	$	160,728		100.0	%



NAIC Designations

1	$	653,052		42.8	%
2		797,299		52.2	%
3		54,824		3.6	%
4		10,483		0.7	%
5		8,263		0.5	%
6		2,329		0.2	%
U.S. Insurer Fixed Income (2)		1,526,249		100.0	%
Other (3)		199,124
Cash and cash equivalents		150,621
Total Invested Assets	$	1,875,994

(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

Investment Portfolio - Supplemental Data and Trends

PRIMERICA, INC.
Financial Supplement

																			YOY Q2
(Dollars in thousands)		Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 2014		$ Change			% Change
Net Investment Income by Source
Bonds & notes	$	23,210		$	22,648		$	21,785		$	22,217		$	21,032		$	20,454			(2,194	)		-9.7	%
Preferred and common stocks		272			292			277			345			385			471			179			61.3	%
Deposit asset underlying 10% reinsurance treaty		563			(1,061	)		829			607			953			1,490			2,551		nm
Policy loans and other invested assets		320			327			325			391			388			398			71			21.7	%
Cash & cash equivalents		88			73			54			57			53			68			(5	)		-6.8	%
Total investment income		24,453			22,279			23,270			23,617			22,811			22,881			602			2.6	%
Investment expenses		1,237			1,252			1,167			1,211			1,212			1,199			(53	)		-4.5	%
Net investment income	$	23,216		$	21,027		$	22,103		$	22,406		$	21,599		$	21,682			655			3.0	%
Fixed income book yield, end of period		5.28	%		5.29	%		5.19	%		4.93	%		4.87	%		4.76	%		—			—
New money yield		2.75	%		2.91	%		3.78	%		3.01	%		3.61	%		2.55	%		—			—

																			YOY Q2
		Q1 2013			Q2 2013			Q3 2013			Q4 2013			Q1 2014			Q2 2014		% Pt Change
Fixed Income Portfolio Quality Ratings
Rating
AAA		17.7	%		17.5	%		16.5	%		17.7	%		17.1	%		16.7	%		-0.7	%
AA		7.7	%		7.7	%		8.0	%		7.9	%		7.8	%		8.3	%		0.6	%
A		23.6	%		22.9	%		23.3	%		23.0	%		22.8	%		22.1	%		-0.7	%
BBB		45.7	%		46.5	%		46.7	%		46.2	%		47.5	%		47.5	%		1.0	%
Below Investment Grade		5.3	%		5.3	%		5.4	%		4.8	%		4.6	%		4.9	%		-0.4	%
NA		0.0	%		0.1	%		0.1	%		0.4	%		0.1	%		0.4	%		0.3	%
Total Fixed Income		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%	nm

Average rating by amortized cost		A			A			A			A			A			A		na

		As of June 30, 2014								As of June 30, 2014					As of June 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	$	29,654		$	28,684		AAA	United Kingdom	$	65,025	$	61,135	AAA	$	751	$	750
2	General Electric Co		26,931			23,892		AA-	Canada		45,591		42,382	AA		9,252		8,396
3	Province of Ontario Canada		11,633			10,398		AA-	Australia		40,566		36,871	A		21,423		20,066
4	Washington Real Estate Investment		11,055			10,528		BBB	Brazil		22,212		20,967	BBB		11,525		10,597
5	Iberdrola SA		10,501			9,468		BBB+	France		20,250		19,067	Below Investment Grade		—		—
6	National Rural Utilities Cooperative		9,932			7,470		A+	Ireland		16,724		15,248	NA		0		0
7	International Business Machines		9,791			9,145		AA-	Bermuda		13,496		12,962	Total	$	42,951	$	39,808
8	Wells Fargo & Co		8,885			8,387		A	Korea Republic Of		11,540		10,877
9	Enel SpA		7,860			6,982		BBB	Netherlands		10,738		10,202
10	ArcelorMittal		7,851			6,611		BB+	Italy		10,398		9,481	Non-Government Investments (1)
11	National Fuel Gas Co		7,751			6,557		BBB	Switzerland		10,227		9,348
12	Vale SA		7,727			7,097		A-	Germany		10,169		9,328	AAA	$	—	$	—
13	Discover Financial Services		7,721			6,550		BBB-	Spain		8,703		8,289	AA		20,983		19,423
14	Altria Group Inc		7,718			6,219		BBB+	Mexico		8,374		7,842	A		94,732		88,905
15	Western Union Co/The		7,547			7,284		BBB	Chile		8,283		7,937	BBB		186,070		172,441
16	TransCanada Corp		7,537			7,196		A-	Emerging Markets (2)		13,441		12,591	Below Investment Grade		17,653		16,129
17	TTX Co		7,383			7,243		A-	All Other		47,363		43,005	NA		712		825
18	Tesco PLC		7,167			6,342		BBB	Total	$	363,101	$	337,532	Total	$	320,149	$	297,724
19	Province of Quebec Canada		7,032			6,108		AA-
20	Phillips 66		6,951			6,109		BBB
21	Republic of Korea		6,935			6,379		A+
22	Senior Housing Properties Trust		6,792			6,285		BBB-
23	Canada Housing Trust No 1		6,632			6,537		AAA
24	Duke Realty Corp		6,571			6,106		BBB
25	Verizon Communications Inc		6,545			5,706		BBB+
		$	242,099		$	219,282

	% of total fixed income portfolio		12.0	%		11.7	%

(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 India, Peru, Poland and South Africa

Page 16 of 17

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


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


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
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
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	)
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


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


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


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
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
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	)
Foreign currency impact, net		10,873			3,158			1,970			(1,003	)		(5,596	)		(790	)		(719	)		(704	)		(3,383	)		(3,378	)		3,166
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


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
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
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


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

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