Business Wire | Aug 5, 2021 04:15PM EDT

Primerica Reports Second Quarter 2021 Results

Aug. 05, 2021

DULUTH, Ga.--(BUSINESS WIRE)--Aug. 05, 2021--Primerica, Inc. (NYSE: PRI) today announced financial results for the quarter ended June 30, 2021. Total revenues of $654.7 million increased 25% compared to the second quarter of 2020. Net income of $128.2 million increased 26%, while earnings per diluted share of $3.22 increased 28% compared to the same quarter last year. ROE remained robust at 26.3%.

Adjusted operating revenues, adjusted net operating income and diluted adjusted operating earnings per share are non-GAAP financial measures that exclude the impact of realized gains/losses and the mark-to-market adjustment on the reinsurance deposit asset. Adjusted net operating income and diluted adjusted operating earnings per share also exclude transaction-related expenses associated with the purchase of 80% of the operating subsidiaries of Etelequote Limited ("e-TeleQuote"). During the second quarter of 2021, transaction-related expenses were $2.1 million. A reconciliation of non-GAAP to GAAP financial measures is included at the end of this release.

Adjusted operating revenues were $654.2 million, increasing 25% compared to the second quarter of 2020. Adjusted net operating income of $129.4 million increased 31%, while diluted adjusted operating earnings per share of $3.25 increased 33% compared to the same quarter last year. ROAE was 27.8% during the second quarter of 2021 and 25.6% during the second quarter of 2020.

Second quarter results reflect clients' continued demand for investment products and term life protection, strength in equity markets, and elevated persistency across all durations of the Company's in-force Term Life insurance business. Clients remain focused on the future and planning for retirement which, when combined with strong equity markets, pushed investment products sales over $3.0 billion for the first time in Company history. The Term Life segment continues to experience elevated death claims due to a combination of COVID-related deaths as well as excess mortality not identified as COVID.

"Sales results in our core businesses remain very strong," said Glenn Williams, Chief Executive Officer. "We are encouraged by our continued momentum and remain focused on growing our sales force as the licensing process starts to normalize and new recruits resume their pre-COVID activities."

Second Quarter Distribution & Segment Results

Distribution Results

% Q2 2021 Q2 2020 Change

Life-Licensed Sales Force ^(1) 132,041 134,157 (2 ) %

Recruits 89,285 133,123 (33 ) %

New Life-Licensed Representatives 10,112 12,250 (17 ) %

Life Insurance Policies Issued 90,071 94,044 (4 ) %

Life Productivity^ (2) 0.23 0.24 *

ISP Product Sales ($ billions) $ 3.04 $ 1.69 80 %

Average Client Asset Values ($ $ 89.38 $ 64.64 38 % billions)

Closed U.S. Mortgage Volume ($ million $ 298.6 $ 65.8 * brokered)

^(1) End of period

^(2) Life productivity equals policies issued divided by the average number oflife insurance licensed representatives per month

* Not calculated

Segment Results

% Q2 2021 Q2 2020 Change

($ in thousands)

Adjusted Operating Revenues:

Term Life Insurance $ 383,536 $ 328,233 17 %

Investment and Savings Products 238,012 164,181 45 %

Corporate and Other Distributed Products 32,607 29,400 11 % ^(1)

Total adjusted operating revenues ^(1) $ 654,155 $ 521,814 25 %



Adjusted Operating Income (Loss) before income taxes:

Term Life Insurance $ 116,778 $ 94,904 23 %

Investment and Savings Products 71,154 46,860 52 %

Corporate and Other Distributed Products (16,888 ) (11,703 ) 44 % ^(1)

Total adjusted operating income before $ 171,044 $ 130,061 32 % income taxes ^(1)

^(1) See the Non-GAAP Financial Measures section and the Adjusted OperatingResults reconciliation tables at the end of this release for additionalinformation.

Life Insurance Licensed Sales Force

During the second quarter, the Company recruited nearly 90,000 individuals and over 10,000 representatives obtained a new life insurance license. Year-over-year comparisons are challenging due to measures introduced last year to mitigate the COVID shutdown. The Company remains focused on converting new recruits to licensed representatives despite disruptions in the licensing process.

At June 30, 2021, the Company had a total of 132,041 independent life-licensed representatives, including an estimated 2,400 individuals with COVID-related temporary licenses or licenses with an extended renewal date. Experience suggests the likelihood of conversion to a permanent license or ultimately renewing an extended renewal diminishes over time. At this point, the 2,400 individuals are not expected to remain licensed.

Term Life Insurance

Term life continues to experience strong results with revenues increasing to $383.5 million, or 17% year-over-year, driven by 16% growth in adjusted direct premiums from strong sales and favorable persistency. Pre-tax income of $116.8 million increased 23% over the prior year period.

Client demand for term life insurance protection remains high. During the quarter, the Company issued over 90,000 life insurance policies, only 4% below the heightened level issued last year when the onset of COVID created a surge in demand for new policies. Productivity for the quarter, which is seasonally elevated in the second quarter, remained above the Company's historical range at 0.23 policies per life-licensed representatives per month versus 0.24 in the prior year's second quarter, reflecting the continued favorable sentiment for protection products.

COVID claims of approximately $6 million during the quarter were generally in line with expectations and $4 million lower than the prior year period. The Company also experienced about $3 million in higher claims not identified as COVID in the current period that we believe is normal volatility. Persistency remains above historical levels and improved over the already strong persistency experienced a year ago. Better persistency reduced DAC amortization by $6 million, partially offset by a $2 million higher benefit reserve increase year-over-year. Insurance expenses increased 12% due to growth in the business, higher employee costs and investments in technology.

Investment and Savings Products

Investment sales remained at record levels with a total of $3.0 billion in new sales during the second quarter of 2021. Strong equity markets that continue to fuel investor confidence, combined with clients' increased focus on saving for the future, led to significant growth across all products, including mutual funds, annuities and managed accounts. Net client inflows of $1.2 billion during the quarter were approximately twice the level in the prior year period. Client asset values ended the quarter at $91.7 billion, an increase of 34% year-over-year, reflecting strong market performance and nearly $3.5 billion of net client inflows over the last twelve months.

Revenues of $238.0 million during the second quarter increased 45% compared to the same quarter in 2020, while pre-tax income of $71.2 million increased 52%. Sales-based revenues increased 67% while revenue generating sales increased 79%. Revenue growth lagged the growth in sales due to a higher proportion of large mutual fund trades, which earn a lower per-sale commission. Asset-based revenues increased 39% year-over-year, in line with the increase in average client asset values. Sales and asset-based commission expenses were largely in line with revenues. Canadian segregated fund DAC amortization during the second quarter of 2021 was higher by approximately $1.7 million compared to the second quarter of 2020 due to the significant market correction during the prior year period. Other operating expenses increased 11% year-over-year largely due to the growth in the underlying business.

Corporate and Other Distributed Products

During the second quarter of 2021, the segment recorded an adjusted operating loss before taxes of $16.9 million compared to $11.7 million in the prior year's second quarter. Segment adjusted revenues increased $3.2 million, or 11% year-over-year, with commissions and fees from mortgage sales increasing $4.8 million. Allocated net investment income decreased $2.0 million from lower portfolio yields and a higher allocation to the Term Life segment to support the growing block of business, partially offset by a larger invested asset portfolio.

Sales commissions and other operating expenses increased $9.2 million, or $7.1 million when excluding the $2.1 million in e-TeleQuote transaction-related expenses recognized during the quarter. The remainder of the year-over-year increase was due in part to $3.1 million in mortgage commissions and support costs as well as approximately $3 million of employee-related costs and continued spending on growth initiatives and technology. Benefits and claims increased $1.6 million year-over-year primarily due to the lower interest rate environment and improved persistency on a closed block of discontinued business.

Taxes

The effective tax rate remains relatively unchanged at 24.4% in the second quarter of 2021 compared to 24.3% in the second quarter of 2020.

Capital

As of June 30, 2021, invested assets and cash at the holding company was $666.0 million, reflecting the liquidity build-up to fund the acquisition of e-TeleQuote, which closed on July 1. Immediately following the closing, invested assets and cash at the holding company was $169.1 million. The NAIC recently adopted new bond factors that go into effect for 2021 year-end reporting. Using this new approach, Primerica Life Insurance Company's statutory risk-based capital (RBC) ratio is estimated at 410% at June 30, 2021. The Board of Directors has approved a dividend of $0.47 per share, payable on September 14, 2021, to stockholders of record on August 20, 2021.

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, adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income, adjusted stockholders' equity and diluted adjusted operating earnings per share. Adjusted direct premiums and other ceded premiums are net of amounts ceded under coinsurance transactions that were executed concurrent with our initial public offering (the "IPO coinsurance transactions") for all periods presented. We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate within this block of business. Adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income and diluted adjusted operating earnings per share exclude the impact of realized investment gains (losses) and fair value mark-to-market ("MTM") investment adjustments, including credit impairments, for all periods presented. We exclude realized investment gains (losses), including credit impairments, and MTM investment adjustments in measuring these non-GAAP financial measures to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains (losses) and market pricing variations prior to an invested asset's maturity or sale that are not directly associated with the Company's insurance operations. Adjusted operating income before taxes, adjusted net operating income, and diluted adjusted operating earnings per share also exclude the transaction-related expenses associated with the purchase of 80% of Etelequote Limited's operating subsidiaries (collectively "e-TeleQuote"). We exclude e-TeleQuote transaction-related expenses as these are non-recurring items that will cause incomparability between period-over-period results. Adjusted stockholders' equity excludes the impact of net unrealized investment gains (losses) recorded in accumulated other comprehensive income (loss) for all periods presented. We exclude unrealized investment gains (losses) in measuring adjusted stockholders' equity as unrealized gains (losses) from the Company's available-for-sale securities are largely caused by market movements in interest rates and credit spreads that do not necessarily correlate with the cash flows we will ultimately realize when an available-for-sale security matures or is sold.

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 the 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 GAAP to non-GAAP financial measures are attached to this release.

Earnings Webcast Information

Primerica will hold a webcast on Friday, August 6, 2021 at 9:00 a.m. Eastern, to discuss the quarter's results. To access the webcast, go to https://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. This release and a detailed financial supplement will be posted on Primerica's website.

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 sales representatives; new laws or regulations that could apply to our distribution model, which could require us to modify our distribution structure; changes to the independent contractor status of sales representatives; our or sales representatives' violation of or non-compliance with laws and regulations; any failure to protect the confidentiality of client information; differences between our actual experience and our expectations regarding mortality or persistency as reflected in the pricing for our insurance policies; changes in federal, state and provincial legislation or regulation that affects our insurance, investment product, and mortgage businesses; our failure to meet regulatory capital ratios or other minimum capital and surplus requirements; a significant downgrade by a ratings organization; the failure of our reinsurers or reserve financing counterparties to perform their obligations; the failure of our investment products to remain competitive with other investment options or the loss of our relationship with one or more of the companies whose investment products we provide; litigation and regulatory investigations and actions concerning us or sales representatives; heightened standards of conduct or more stringent licensing requirements for sales representatives; inadequate policies and procedures regarding suitability review of client transactions; revocation of our subsidiary's status as a non-bank custodian; economic down cycles that impact our business, financial condition and results of operations; major public health pandemics, epidemics or outbreaks or other catastrophic events; the failure of our information technology systems, breach of our information security, failure of our business continuity plan or the loss of the Internet; the effects of credit deterioration and interest rate fluctuations on our invested asset portfolio and other assets; incorrectly valuing our investments; changes in accounting standards may impact how we record and report our financial condition and results of operations; the inability of our subsidiaries to pay dividends or make distributions; litigation and regulatory investigations and actions; a significant change in the competitive environment in which we operate; the loss of key personnel or sales force leaders; any acquisition or investment in businesses that do not perform as we expect or are difficult to integrate; due to our very limited history with e-TeleQuote, we cannot be certain that its business will be successful or that we will successfully address any risks not known to us that may become material; a failure by e-TeleQuote to comply with the requirements of the United States government's Centers for Medicare and Medicaid Services and those of its carrier partners; legislative or regulatory changes to Medicare Advantage or changes to the implementing guidance by the Centers for Medicare and Medicaid Services; e-TeleQuote's inability to acquire or generate leads on commercially viable terms, convert leads to sales or if customer policyholder retention is lower than assumed; e-TeleQuote's inability to enroll individuals during the Medicare annual election; the loss of a key carrier, or the modification of commission rates or underwriting practices with a key carrier partner could adversely affect e-TeleQuote's business; cyber-attack(s), security breaches or if e-TeleQuote is otherwise unable to safeguard the security and privacy of confidential data, including personal health information; and fluctuations in the market price of our common stock or Canadian currency exchange rates. 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 provider of financial services to middle-income households in North America. Independent licensed representatives educate Primerica 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 third parties. We insured approximately 5.5 million lives and had over 2.6 million client investment accounts at December 31, 2020. Primerica, through its insurance company subsidiaries, was the #2 issuer of Term Life insurance coverage in North America in 2020. Primerica stock is included in the S&P MidCap 400 and the Russell 1000 stock indices and is traded on The New York Stock Exchange under the symbol "PRI".

PRIMERICA, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets



(Unaudited)

June 30, December 31, 2021 2020

(In thousands)

Assets

Investments:

Fixed-maturity securities $ 2,514,585 $ 2,464,611 available-for-sale, at fair value

Fixed-maturity security held-to-maturity, at 1,368,740 1,346,350 amortized cost

Short-term investments available-for-sale, 40,325 - at fair value

Equity securities, at fair value 39,377 38,023

Trading securities, at fair value 33,498 16,300

Policy loans 29,449 30,199

Total investments 4,025,974 3,895,483

Cash and cash equivalents 774,591 547,569

Accrued investment income 18,698 17,618

Reinsurance recoverables 4,239,510 4,273,904

Deferred policy acquisition costs, net 2,808,347 2,629,644

Agent balances, due premiums and other 273,493 259,448 receivables

Intangible assets 45,275 45,275

Income taxes 75,069 73,290

Operating lease right-of-use assets 44,037 46,567

Other assets 469,050 456,967

Separate account assets 2,745,827 2,659,520

Total assets $ 15,519,871 $ 14,905,285



Liabilities and Stockholders' Equity

Liabilities:

Future policy benefits $ 6,984,272 $ 6,790,557

Unearned and advance premiums 20,229 17,136

Policy claims and other benefits payable 471,290 519,711

Other policyholders' funds 485,855 447,765

Notes payable - Long term 374,606 374,415

Other debt obligations - Long term 125,000 -

Surplus note 1,368,194 1,345,772

Income taxes 204,197 223,496

Operating lease liabilities 50,194 52,806

Other liabilities 590,831 566,068

Payable under securities lending 80,613 72,154

Separate account liabilities 2,745,827 2,659,520

Total liabilities 13,501,108 13,069,400



Stockholders' equity:

Common stock 394 393

Paid-in capital 12,880 -

Retained earnings 1,894,539 1,705,786

Accumulated other comprehensive income(loss), 110,950 129,706

net of income tax

Total stockholders' equity 2,018,763 1,835,885

Total liabilities and stockholders' equity $ 15,519,871 $ 14,905,285

PRIMERICA, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(Unaudited)

Three months ended June 30,

2021

2020

(In thousands, except per-share amounts)

Revenues:

Direct premiums

$

780,299

$

717,088

Ceded premiums

(413,850

)

(402,549

)

Net premiums

366,449

314,539

Commissions and fees

250,688

171,788

Net investment income

20,535

22,710

Realized investment gains (losses)

701

1,742

Other, net

16,313

15,036

Total revenues

654,686

525,815

Benefits and expenses:

Benefits and claims

168,347

139,646

Amortization of deferred policy acquisition costs

54,286

53,177

Sales commissions

131,303

85,492

Insurance expenses

48,579

43,753

Insurance commissions

8,838

6,333

Interest expense

7,141

7,200

Other operating expenses

66,726

56,152

Total benefits and expenses

485,220

391,753

Income before income taxes

169,466

134,062

Income taxes

41,304

32,552

Net income

$

128,162

$

101,510

Earnings per share:

Basic earnings per share

$

3.23

$

2.52

Diluted earnings per share

$

3.22

$

2.51

Weighted-average shares used in computing

earnings per share:

Basic

39,531

40,132

Diluted

39,652

40,246

PRIMERICA, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(Unaudited)



Three months ended June 30,

2021 2020

(In thousands, except per-share amounts)

Revenues:

Direct premiums $ 780,299 $ 717,088

Ceded premiums (413,850 ) (402,549 )

Net premiums 366,449 314,539

Commissions and fees 250,688 171,788

Net investment income 20,535 22,710

Realized investment gains (losses) 701 1,742

Other, net 16,313 15,036

Total revenues 654,686 525,815



Benefits and expenses:

Benefits and claims 168,347 139,646

Amortization of deferred policy 54,286 53,177 acquisition costs

Sales commissions 131,303 85,492

Insurance expenses 48,579 43,753

Insurance commissions 8,838 6,333

Interest expense 7,141 7,200

Other operating expenses 66,726 56,152

Total benefits and expenses 485,220 391,753

Income before income taxes 169,466 134,062

Income taxes 41,304 32,552

Net income $ 128,162 $ 101,510



Earnings per share:

Basic earnings per share $ 3.23 $ 2.52

Diluted earnings per share $ 3.22 $ 2.51



Weighted-average shares used incomputing

earnings per share:

Basic 39,531 40,132

Diluted 39,652 40,246

PRIMERICA, INC. AND SUBSIDIARIES

Consolidated Adjusted Operating Results Reconciliation

(Unaudited - in thousands, except per share amounts)

Three months ended June 30,

2021

2020

% Change

Total revenues

$

654,686

$

525,815

25

%

Less: Realized investment gains (losses)

701

1,742

Less: 10% deposit asset MTM included in NII

(170

)

2,259

Adjusted operating revenues

$

654,155

$

521,814

25

%

Income before income taxes

$

169,466

$

134,062

26

%

Less: Realized investment gains (losses)

701

1,742

Less: 10% deposit asset MTM included in NII

(170

)

2,259

Less: e-TeleQuote transaction-related expenses

(2,109

)

-

Adjusted operating income before income taxes

$

171,044

$

130,061

32

%

Net income

$

128,162

$

101,510

26

%

Less: Realized investment gains (losses)

701

1,742

Less: 10% deposit asset MTM included in NII

(170

)

2,259

Less: e-TeleQuote transaction-related expenses

(2,109

)

-

Less: Tax impact of preceding items

385

(972

)

Adjusted net operating income

$

129,355

$

98,481

31

%

Diluted earnings per share (1)

$

3.22

$

2.51

28

%

Less: Net after-tax impact of operating adjustments

(0.03

)

0.07

Diluted adjusted operating earnings per share (1)

$

3.25

$

2.44

33

%

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

PRIMERICA, INC. AND SUBSIDIARIES

Consolidated Adjusted Operating Results Reconciliation

(Unaudited - in thousands, except per share amounts)



Three months ended June 30,

2021 2020 % Change

Total revenues $ 654,686 $ 525,815 25 %

Less: Realized investment gains (losses) 701 1,742

Less: 10% deposit asset MTM included in (170 ) 2,259 NII

Adjusted operating revenues $ 654,155 $ 521,814 25 %



Income before income taxes $ 169,466 $ 134,062 26 %

Less: Realized investment gains (losses) 701 1,742

Less: 10% deposit asset MTM included in (170 ) 2,259 NII

Less: e-TeleQuote transaction-related (2,109 ) - expenses

Adjusted operating income before income $ 171,044 $ 130,061 32 %taxes



Net income $ 128,162 $ 101,510 26 %

Less: Realized investment gains (losses) 701 1,742

Less: 10% deposit asset MTM included in (170 ) 2,259 NII

Less: e-TeleQuote transaction-related (2,109 ) - expenses

Less: Tax impact of preceding items 385 (972 )

Adjusted net operating income $ 129,355 $ 98,481 31 %



Diluted earnings per share ^(1) $ 3.22 $ 2.51 28 %

Less: Net after-tax impact of operating (0.03 ) 0.07 adjustments

Diluted adjusted operating earnings per $ 3.25 $ 2.44 33 %share ^(1)

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

TERM LIFE INSURANCE SEGMENT

Adjusted Premiums Reconciliation

(Unaudited - in thousands)



Three months ended June 30,

2021 2020 % Change

Direct premiums $ 774,500 $ 711,188 9 %

Less: Premiums ceded to IPO 246,874 257,529 coinsurers

Adjusted direct premiums $ 527,626 $ 453,659 16 %



Ceded premiums $ (412,028 ) $ (400,919 )

Less: Premiums ceded to IPO (246,874 ) (257,529 ) coinsurers

Other ceded premiums $ (165,154 ) $ (143,390 )



Net premiums $ 362,472 $ 310,269 17 %



CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT

Adjusted Operating Results Reconciliation

(Unaudited - in thousands)

Three months ended June 30,

2021

2020

% Change

Total revenues

$

33,138

$

33,401

(1

)%

Less: Realized investment gains (losses)

701

1,742

Less: 10% deposit asset MTM included in NII

(170

)

2,259

Adjusted operating revenues

$

32,607

$

29,400

11

%

Loss before income taxes

$

(18,466

)

$

(7,702

)

140

%

Less: Realized investment gains (losses)

701

1,742

Less: 10% deposit asset MTM included in NII

(170

)

2,259

Less: e-TeleQuote transaction-related expenses

(2,109

)

-

Adjusted operating loss before income taxes

$

(16,888

)

$

(11,703

)

44

%

CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT

Adjusted Operating Results Reconciliation

(Unaudited - in thousands)



Three months ended June 30,

2021 2020 % Change

Total revenues $ 33,138 $ 33,401 (1 )%

Less: Realized investment gains 701 1,742 (losses)

Less: 10% deposit asset MTM included (170 ) 2,259 in NII

Adjusted operating revenues $ 32,607 $ 29,400 11 %



Loss before income taxes $ (18,466 ) $ (7,702 ) 140 %

Less: Realized investment gains 701 1,742 (losses)

Less: 10% deposit asset MTM included (170 ) 2,259 in NII

Less: e-TeleQuote transaction-related (2,109 ) - expenses

Adjusted operating loss before income $ (16,888 ) $ (11,703 ) 44 %taxes

PRIMERICA, INC. AND SUBSIDIARIES

Adjusted Stockholders' Equity Reconciliation

(Unaudited - in thousands)

June 30, 2021

December 31, 2020

% Change

Stockholders' equity

$

2,018,763

$

1,835,885

10

%

Less: Unrealized net investment gains (losses) recorded

in stockholders' equity, net of income tax

96,990

128,128

Adjusted stockholders' equity

$

1,921,773

$

1,707,757

13

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20210805005849/en/

CONTACT: Investor Contact: Nicole Russell 470-564-6663 Email: Nicole.Russell@primerica.com

CONTACT: Media Contact: Keith Hancock 470-564-6328 Email: Keith.Hancock@Primerica.com