James Lake, Author at Primerica Newsroom

Primerica Reports Second Quarter 2019 Results

Business Wire, August 07, 2019

Investment and Savings Products reach record levels in sales and ending client asset values

Term Life net premiums grow 9%; adjusted direct premiums grow 11%

Net earnings per diluted share (EPS) of $2.28, up 17%; return on stockholders’ equity (ROE) of 25.1%

Adjusted operating EPS of $2.21, up 14%; adjusted net operating income return on adjusted stockholders’ equity (ROAE) of 25.1%

Declared dividend of $0.34 per share, payable on September 13, 2019

Primerica, Inc. (NYSE: PRI) today announced financial results for the quarter ended June 30, 2019. Total revenues of $504.9 million increased 8% compared to the second quarter of 2018. Net income of $97.4 million increased 12%, while earnings per diluted share of $2.28 increased 17% compared to the same quarter last year. ROE increased to 25.1% during the current quarter from 24.5% during the second quarter of 2018.

Adjusted operating revenues were $501.4 million, increasing 7% compared to the second quarter of 2018. Adjusted net operating income of $94.8 million increased 10%, while adjusted operating earnings per diluted share of $2.21 increased 14% compared to the same quarter last year. ROAE increased to 25.1% during the current quarter from 24.5% during the second quarter of 2018.

Key factors contributing to the quarter’s financial results were 11% growth in Term Life adjusted direct premiums year-over-year and the financial benefit of record sales and client asset values in the Investment and Savings Products (ISP) segment. Insurance and other operating expenses grew by a modest 2%, while other expenses such as commissions, benefits and claims and DAC amortization grew in line with their related revenues. The company repurchased $57.1 million of common stock during the quarter and is on track to achieve its $225 million repurchase target for the year.

“Our quarterly financial results reflect the strength of our model with net income growth of 12% and earnings per share growth of 17%,” said Glenn Williams, Chief Executive Officer. “Our biennial convention in June was a great success. It energized our sales force, accelerated momentum and renewed our commitment to serve middle-income families as only Primerica can.”

Second Quarter Distribution & Segment Results
Distribution Results
	Q2 2019		Q2 2018		% Change
Life Licensed Sales Force ⁽¹⁾		129,550		130,156	*
Recruits		86,173		76,520	13	%
New Life-Licensed Representatives		10,919		13,544	(19)	%
Life Insurance Policies Issued		78,664		83,754	(6)	%
Life Productivity ⁽²⁾		0.20		0.22	*
ISP Product Sales ($ billions)	$	1.94	$	1.76	10	%
Average Client Asset Values ($ billions)	$	64.43	$	61.30	5	%

⁽¹⁾	End of period
⁽²⁾	Life productivity equals policies issued divided by the average number of life insurance licensed representatives per month
*	Not calculated or less than 1%



Segment Results
	Q2 2019			Q2 2018		% Change
			($ in thousands)
Adjusted Operating Revenues: ⁽¹⁾
Term Life Insurance	$	296,868		$	272,978	9	%
Investment and Savings Products	$	173,086		$	162,041	*
Corporate and Other Distributed Products	$	31,434		$	31,058	1	%
Total adjusted operating revenues ⁽¹⁾	$	501,388		$	466,877	7	%

Adjusted Operating Income (loss) before income taxes:⁽¹⁾
Term Life Insurance	$	83,997		$	75,828	11	%
Investment and Savings Products		47,343			43,227	10	%
Corporate and Other Distributed Products		(7,394)			(6,228)	19	%
Total adjusted operating income before income taxes ⁽¹⁾	$	123,946		$	112,827	10	%

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

Life Insurance Licensed Sales Force and Distribution Trends

During the second current quarter, 86,173 individuals were recruited to Primerica, a year-over-year increase of 13%. Much of this increase came during the second half of June, driven by excitement generated at the biennial convention and incentives announced to drive recruiting and productivity. Lower recruiting levels earlier in the year, and the resulting impact on new life-licensed representatives in the period, led to a life insurance licensed sales force at quarter-end of 129,550, largely unchanged from the prior year.

The ISP segment posted solid quarterly results with net new client inflows of $227 million, led by a 31% increase in sales of variable annuities year-overyear and strong demand for managed accounts, which ended the quarter up 19% to $3.3 billion in client account asset values.

Term Life Insurance

Operating revenues of $296.9 million during the second quarter increased 9% compared to the second quarter of 2018 driven by 11% growth in adjusted direct premiums. Persistency during the quarter was consistent with the prior year and benefits and claims experience was in line with historical trends. Income before income taxes was $84.0 million, an increase of 11% year-over-year.

During the second quarter of 2019, new life insurance policies issued were 78,664, down 6% compared to the prior year period. Productivity for the quarter was 0.20 policies per life insurance licensed representative per month, which was within the Company’s historical range of 0.18 to 0.22, but below the prior year level of 0.22.

Investment and Savings Products

Operating revenues of $173.1 million during the second quarter increased 6% compared to the second quarter of 2018. The increase in revenues is due in part to a 10% increase in sales volume, reflecting strong demand for variable annuities and an increase in demand for mutual funds. Higher average client asset values also contributed to the increase in revenues as average assets increased 5% compared to the second quarter of 2019. Sales and asset-based commission expenses were generally consistent with the associated revenues. These strong drivers, combined with the Company’s efforts to reduce costs and realize operational efficiencies, led to a 10% increase in income before income taxes.

As of June 30, 2019, ending client asset values were $66 billion and sales for the quarter were $1.9 billion, both new highwater marks for the Company. Net new client inflows were $305 million for the quarter.

Net Investment Income

Net investment income during the quarter benefited by approximately $2.0 million from an increase in the size of the invested assets portfolio compared to the same quarter in 2018, as well as higher book earnings on the deposit asset underlying the 10% coinsurance agreement from extending the portfolio duration. These were partly offset by lower reinvestment yields on purchases made in the general portfolio.

Taxes

In the second quarter of 2019, the GAAP effective income tax rate was 23.5% compared to 23.8% during the second quarter of 2018.

Capital

During the second quarter of 2019, the Company repurchased 463,916 shares of common stock with a value of $57.1 million, bringing the year-to-date total to $110.7 million. The Board of Directors has approved a dividend of $0.34 per share, payable on September 13, 2019, to stockholders of record on August 21, 2019.

Primerica has a strong balance sheet and continues to be well-capitalized to meet future needs. Primerica Life Insurance Company’s statutory risk-based capital (RBC) ratio was estimated to be approximately 440% as of June 30, 2019.

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, 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 (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 other-than-temporary impairments (OTTI), for all periods presented. We exclude realized investment gains (losses) 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 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.

Earnings Webcast Information

Primerica will hold a webcast on Thursday, August 8, 2019 at 10:00 am EST, to discuss the quarter’s results. 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. 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 affect our distribution model; changes to the independent contractor status of sales representatives; our or sales representatives’ violation of or non-compliance with laws and regulations or the failure to protect the confidentiality of client information; differences between our actual experience and our expectations regarding mortality, persistency, expenses and interests rates as reflected in the pricing for our insurance policies; the occurrence of a catastrophic event; changes in federal, state and provincial legislation or regulation that affects our insurance and investment product businesses; our failure to meet regulatory capital ratios 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; the failure of our investment products to remain competitive with other investment options or the change to investment and savings products offered by key providers in a way that is not beneficial to our business; fluctuations in the performance of client assets under management; legal 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; the failure of, or legal challenges to, the support tools we provide to sales force; the failure of our information technology systems, breach of our information security or failure of our business continuity plan; the effects of credit deterioration and interest rate fluctuations on our invested asset portfolio; incorrectly valuing our investments; the inability of our subsidiaries to pay dividends or make distributions; our inability to generate and maintain a sufficient amount of working capital; our non-compliance with the covenants of our senior unsecured debt; the loss of key personnel; 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, provides financial services to middle-income households in North America. Primerica licensed representatives educate their clients about how to better prepare for a more secure financial future by assessing their needs and providing appropriate solutions through term life insurance, mutual funds, annuities and other financial products. Primerica insured approximately 5 million lives and had over 2 million client investment accounts at December 31, 2018. Primerica, through its insurance company subsidiaries, was the #2 issuer of Term Life insurance coverage in North America in 2018. 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
	June 30, 2019		December 31, 2018
Assets
Investments:
Fixed-maturity securities available-for-sale, at fair value	$	2,216,260	$	2,069,635
Fixed-maturity security held-to-maturity, atamortized cost		1,087,790		970,390
Short-term investments available-for-sale, at fair value		–		8,171
Equity securities, at fair value		38,897		37,679
Trading securities, at fair value		23,375		13,610
Policy loans		33,527		31,501
Total investments		3,399,849		3,130,986
Cash and cash equivalents		244,975		262,138
Accrued investment income		17,434		17,057
Reinsurance recoverables		4,185,850		4,141,569
Deferred policy acquisition costs, net		2,238,315		2,133,920
Agent balances, due premiums and other receivables		238,367		215,139
Intangible assets, net		46,409		48,111
Income taxes		65,777		59,336
Operating lease right-of-use assets		49,381		-
Other assets¹		394,058		391,291
Separate account assets		2,437,291		2,195,501
Total assets	$	13,317,706	$	12,595,048

Liabilities and Stockholders’ Equity
Liabilities:
Future policy benefits	$	6,314,403	$	6,168,157
Unearned and advance premiums		17,111		15,587
Policy claims and other benefits payable		322,417		313,862
Other policyholders’ funds		377,737		370,644
Notes payable		373,848		373,661
Surplus note		1,087,117		969,685
Income taxes		206,301		187,104
Operating lease liabilities		55,662		-
Other liabilities		496,027		486,772
Payable under securities lending		43,867		52,562
Separate account liabilities		2,437,291		2,195,501
Total liabilities		11,731,781		11,133,535

Stockholders’ equity:
Common stock		420		427
Paid-in capital		-		-
Retained earnings		1,537,535		1,489,520
Accumulated other comprehensive income (loss), net of income tax		47,970		(28,434)
Total stockholders’ equity		1,585,925		1,461,513
Total liabilities and stockholders’ equity	$	13,317,706	$	12,595,048

⁽¹⁾ Certain reclassifications have been made to the December 31, 2018 amounts to conform to current-period reporting classifications. These reclassifications had no impact on net income or total stockholders’ equity.


PRIMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)
	Three months ended June 30,
		2019		2018
	(In thousands, except per-share amounts)
Revenues:
Direct premiums		$	687,262	$	667,191
Ceded premiums			(400,588)		(403,449)
Net premiums			286,674		263,742
Commissions and fees			178,468		167,940
Net investment income			24,868		20,030
Realized investment gains (losses), including OTTI			1,067		1,313
Other, net			13,825		14,790
Total revenues			504,902		467,815

Benefits and expenses:
Benefits and claims			115,068		105,069
Amortization of deferred policy acquisition costs			58,762		53,847
Sales commissions			90,099		82,954
Insurance expenses			44,570		43,451
Insurance commissions			5,829		6,417
Interest expense			7,201		7,229
Other operating expenses			55,913		55,083
Total benefits and expenses			377,442		354,050
Income before income taxes			127,460		113,765
Income taxes			30,014		27,065
Net income		$	97,446	$	86,700

Earnings per share:
Basic earnings per share		$	2.28	$	1.96
Diluted earnings per share		$	2.28	$	1.95

Weighted-average shares used in computing earnings per share:
Basic			42,483		44,066
Diluted			42,619		44,207


PRIMERICA, INC. AND SUBSIDIARIES
Consolidated Adjusted Operating Results Reconciliation (Unaudited – in thousands, except per share amounts)

	Three months ended June 30,
		2019		2018		% Change
	(In thousands, except per-share amounts)
Total Revenues		$	504,902	$	467,815		8
Less: Realized investment gains (losses), including OTTI			1,067		1,313
Less: 10% deposit asset MTM included in net investment income (NII)⁽¹⁾			2,447		(375)
Adjusted operating revenues			501,388	$	466,877		7

Income before income taxes		$	127,460	$	113,765		12
Less: Realized investment gains (losses), including OTTI		$	1,067	$	1,313
Less: 10% deposit asset MTM included in NII			2,447		(375)
Adjusted operating income before income taxes			123,946		112,827	10	%
Net income		$	97,446	$	(375)	12	%
Less: Realized investment gains (losses), including OTTI			1,067	$	1,313
Less: 10% deposit asset MTM included in NII			2,447	$	(375)
Less: Tax impact of preceding items			(828)		(223)
Adjusted operating income			94,759		85,985		10%

Diluted earnings per share⁽¹⁾		$	2.28	$	1.95		17%
Less: Net after-tax impact of operating adjustments			0.07		0.02
Diluted adjusted operating earnings per share ⁽¹⁾		$	2.21	$	1.93		14%

____________________ (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,
	2019			2018
Direct premiums	$	681,004			$	660,505
Less: Premiums ceded to IPO coinsurers		272,596				290,956
Adjusted direct premiums	$	408,408			$	369,549

Ceded premiums	$	(398,927)			$	(401,686)
Less: Premiums ceded to IPO coinsurers		(272,596)				(290,956)
Other ceded premiums	$	(126,331	)		$	(110,730)

Net premiums	$	282,077			$	258,819

CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT
Adjusted Operating Results Reconciliation
(Unaudited – in thousands)

	Three months ended June 30,
	2019			2018
Total revenues	$	34,948			$	31,996
Less: Realized investment gains (losses), including OTTI		1,067				1,313
Less: 10% deposit asset MTM included in NII		2,447				(375)
Adjusted operating revenues	$	31,434			$	31,058

Loss before income taxes	$	(3,880	)		$	(5,290)
Less: Realized investment gains (losses), including OTTI		1,067				1,313
Less: 10% deposit asset MTM included in NII		2,447				(375)
Adjusted operating loss before income taxes	$	(7,394)		$	(6,228)

PRIMERICA, INC. AND SUBSIDIARIES
Adjusted Stockholders' Equity Reconciliation
(Unaudited – in thousands)

	June 30, 2019		December 31, 2018
Stockholders' equity	$	1,585,925		$	1,461,513
Less: Unrealized net investment gains (losses) recorded in stockholders' equity, net of income tax		56,227			(7,370)
Adjusted stockholders' equity	$	1,529,698		$	1,468,883

Contacts

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

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

926005

by James Lake

More Than One-Third of Mass Market Households Don’t Receive Financial Advice

Advisor Canada, May 29, 2019 - Staff

A new poll reveals why that’s a problem

As the industry continues to examine whether an advice gap exists in Canada among mass market households, a new poll finds that a significant proportion of middle-income households aren’t working with financial advisors, with negative results.

The Primerica survey found that one in three middle-income Americans say credit card debt is their biggest financial concern. Williams says many families use credit cards to supplement their income. Because money is tight, they focus on just making the minimum payment. That is a big mistake.

No insight is offered, however, on why the lack of access exists. (Trust isn’t the issue: in line with other research, the poll revealed overwhelming trust in the information provided by financial professionals.)

What is clear is that the lack of access to professional advice is a problem. The poll found that 61% have made at least one costly financial decision, with an average loss of $29,000. Also, about half (47%) fear they aren’t saving enough for retirement.

Most of those surveyed who haven’t seen a financial professional believe they would benefit from seeing one (75%), and they’re likely right. The poll found that client outcomes are better for those who receive financial advice.

“It’s just a matter of understanding what they need to do,” Williams says. “What type of coverage? What amount of coverage? Ten times of the breadwinner’s income is what is needed to replace the income in the event of death.”

For example, 56% of middle-income Canadians who hadn’t met with financial professionals had also never invested their savings. Of those who had met with a financial professional, only 22% had failed to invest.

Further, a greater proportion of those who met with a financial professional scored a C or higher on various financial behaviours, such as saving and investing, relative to those who didn’t (82% versus 54%).

Working with a financial professional might be particularly important considering Canadians’ low rates of financial literacy. The survey found that only one-third of middle-income Canadians feel confident with general concepts such as saving and budgeting, and fewer than two in 10 could explain the concept of compound interest or how to invest in a financial product.

For more details, read the Primerica report.

About the poll: Conducted by Golfdale Consulting in February 2019, the online survey polled a representative sample of 1,000 Canadians aged 18 and older with household incomes between $20,000 and $100,000. All data was weighted to Canada Census (2016) based on age, gender and region. The margin of error is about 3%.

860925

by James Lake

Primerica Reports First Quarter 2019 Results

Business Wire, May 07, 2019

Life insurance licensed representatives increase 2% to 129,821

Term Life net premiums grow 10%; adjusted direct premiums grow 11%

Investment and Savings Products ending client asset values grow 5%

Net earnings per diluted share (EPS) of $1.83, up 26%; return on stockholders’ equity (ROE) of 21.2%

Adjusted operating EPS of $1.74, up 19%; adjusted net operating income return on adjusted stockholders’ equity (ROAE) of 20.3%

Declared dividend of $0.34 per share, payable on June 14, 2019

Primerica, Inc. (NYSE: PRI) today announced financial results for the quarter ended March 31, 2019. Total revenues of $495.0 million increased 8% compared to the first quarter of 2018. Net income of $79.2 million increased 20%, while earnings per diluted share of $1.83 increased 26% compared to the same quarter last year. ROE increased from 18.5% during the first quarter of 2018 to 21.2% during the current quarter.

Adjusted operating revenues were $490.0 million, increasing 6% compared to the first quarter of 2018. Adjusted net operating income of $75.3 million increased 14%, while adjusted operating earnings per diluted share of $1.74 increased 19% compared to the same quarter last year. ROAE increased from 19.0% during the first quarter of 2018 to 20.3% during the current quarter.

Results for the quarter reflect the financial stability of the Company’s Term Life segment, including an 11% increase in adjusted direct premiums. Persistency during the first quarter of 2019 was generally consistent with the prior year’s first quarter and claims experience was in line with historical trends. Market volatility early in the year resulted in a slower start in the Investment and Savings Products (ISP) segment, however, client asset values rebounded in late January and average client asset values declined less than half a percent compared to the first quarter of 2018. Demand for investment products, most notably variable annuities, was robust through the last two months of the quarter and total product sales of $1.8 billion were only 1% below a very strong first quarter in 2018. Insurance and other operating expenses increased 5% due to business growth and incremental investments. The pace of investments is expected to increase as 2019 unfolds. The Company repurchased nearly $54 million of common stock during the quarter and is on track to achieve its $225 million repurchase target for the year.

“Our quarterly financial results reflect the strength and durability of our model with revenue growth of 8% and earnings per share growth of 26%, despite weaker sales than in the prior year period,” said Glenn Williams, Chief Executive Officer. “The need for financial security in middle-income families has never been greater and few companies possess the distribution breadth to assist this population demographic the way we do here at Primerica.”

First Quarter Distribution & Segment Results
Distribution Results
	Q1 2019		Q1 2018		% Change
Life Licensed Sales Force ⁽¹⁾		129,821		127,182	2	%
Recruits		63,223		76,230	(17	)%
New Life-Licensed Representatives		10,065		11,730	(14	)%
Life Insurance Policies Issued		64,242		70,821	(9	)%
Life Productivity ⁽²⁾		0.16		0.19	*
ISP Product Sales ($ billions)	$	1.76	$	1.78	(1	)%
Average Client Asset Values ($ billions)	$	61.45	$	61.70	2	%

⁽¹⁾	End of period
⁽²⁾	Life productivity equals policies issued divided by the average number of life insurance licensed representatives per month
*	Not calculated or less than 1%



Segment Results
	Q1 2019			Q1 2018		% Change
			($ in thousands)
Adjusted Operating Revenues: ⁽¹⁾
Term Life Insurance	$	296,843		$	270,309	10	%
Investment and Savings Products		162,671			162,041	*
Corporate and Other Distributed Products		30,479			30,517	*
Total adjusted operating revenues ⁽¹⁾	$	489,993		$	462,867	6	%

Adjusted Operating Income (loss) before income taxes:⁽¹⁾
Term Life Insurance	$	70,339		$	59,621	18	%
Investment and Savings Products		42,683			39,984	7	%
Corporate and Other Distributed Products		(15,648)			(13,698)	14	%
Total adjusted operating income before income taxes ⁽¹⁾	$	97,374		$	85,907	13	%

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

Life Insurance Licensed Sales Force and Distribution Trends

As of March 31, 2019, the life insurance licensed sales force totaled 129,821 and was down slightly from December 31, 2018. The decrease in the size of the sales force reflected the impact of fewer individuals recruited over the last few quarters, which in turn resulted in a lower number of new life insurance licenses. After several years of exceptional growth, momentum in recruiting, licensing and term life sales began to slow in 2018 and this trend has continued into the first quarter. During the first quarter of 2019, approximately 64,000 term life insurance policies were issued, which represented a decline of 9% compared to the first quarter of 2018. Productivity for the quarter was 0.16 policies per life insurance licensed representative per month, below the Company’s historical range of 0.18 to 0.22. Management has confidence in its ability to rebuild momentum and the biennial convention in June provides an excellent opportunity for the leadership team to reenergize the sales force.

Segment Results

Term Life Insurance

Operating revenues of $296.8 million during the first quarter increased 10% compared to the first quarter of 2018 due to an 11% growth in adjusted direct premiums. Persistency was generally in line with the first quarter of 2018, while claims, which are typically higher in the first quarter, improved by approximately $2 million due to unfavorable claims experience in the prior year’s first quarter. Income before income taxes was $70.3 million, an increase of 18% year-over-year.

Investment and Savings Products

Operating revenues of $162.7 million were relatively unchanged compared to the same quarter in 2018, while income before income taxes of $42.7 million increased 7% year-over-year. ISP product sales and average client asset values were both negatively impacted by market volatility early in the quarter, although trends improved as the quarter progressed. The continued mix-shift toward annuity sales, which generally have higher sales-based fees, led to a 4% growth in sales-based revenues. Ending client asset values increased 5% compared to the first quarter of 2018, however, average client asset values declined slightly, resulting in a decrease in asset-based revenues. Account-based revenues declined due to the closure of Freedom portfolio accounts, which we stopped selling at the end of 2017, and the loss of associated recordkeeping and custodial fees. Sales and asset-based commission expenses were generally consistent with the associated revenues. Canadian segregated fund DAC amortization was $3 million lower than the prior year, primarily reflecting positive market performance in the first quarter of 2019.

Net Investment Income

An increase in the size of the invested assets portfolio compared to the same quarter in 2018 contributed approximately $1.6 million to investment income. The effective book yield of assets that matured during the current quarter was largely consistent with the yield on new purchases, however, for the remainder of 2019, the Company expects the book yield of maturities to be higher than current interest rates.

Taxes

In the first quarter of 2019, the GAAP effective income tax rate was 22.7% compared to 20.8% during the first quarter of 2018. The prior period tax rate included a benefit of $1.8 million associated with the Tax Cuts and Jobs Act of 2017, which reduced the tax effective rate by 2.1%.

Capital

During the first quarter of 2019, the Company repurchased 473,138 shares of common stock with a value of $53.6 million. The Board of Directors has approved a dividend of $0.34 per share, payable on June 14, 2019, to stockholders of record on May 22, 2019.

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, 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 (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 other-than-temporary impairments (OTTI), for all periods presented. We exclude realized investment gains (losses) 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. In 2018, we excluded from adjusted net operating income and diluted adjusted operating earnings per share the one-time transition impact of adjustments made to finalize the provisional amounts recognized from the enactment of the Tax Cuts and Jobs Act of 2017 (tax reform) in order to present meaningful and useful period-over-period comparisons that could be distorted by the historically infrequent tax law change. Adjusted stockholders' equity excludes the impact of net unrealized 5/8/2019 Primerica Reports First Quarter 2019 Results | Business Wire https://www.businesswire.com/news/home/20190507005991/en/ 4/10 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-forsale security matures or is sold.

Earnings Webcast Information

Primerica will hold a webcast Wednesday, May 8, 2019 at 10:00 am EST, to discuss the quarter’s results. 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. 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 affect our distribution model; changes to the independent contractor status of sales representatives; our or sales representatives’ violation of or non-compliance with laws and regulations or the failure to protect the confidentiality of client information; differences between our actual experience and our expectations regarding mortality, persistency, expenses and interests rates as reflected in the pricing for our insurance policies; the occurrence of a catastrophic event; changes in federal, state and provincial legislation or regulation that affects our insurance and investment product businesses; our failure to meet regulatory capital ratios 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; the failure of our investment products to remain competitive with other investment options or the change to investment and savings products offered by key providers in a way that is not beneficial to our business; fluctuations in the performance of client assets under management; legal 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; the failure of, or legal challenges to, the support tools we provide to sales force; the failure of our information technology systems, breach of our information security or failure of our business continuity plan; the effects of credit deterioration and interest rate fluctuations on our invested asset portfolio; incorrectly valuing our investments; the inability of our subsidiaries to pay dividends or make distributions; our inability to generate and maintain a sufficient amount of working capital; our non-compliance with the covenants of our senior unsecured debt; the loss of key personnel; 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, provides financial services to middle-income households in North America. Primerica licensed representatives educate their clients about how to better prepare for a more secure financial future by assessing their needs and providing appropriate solutions through term life insurance, mutual funds, annuities and other financial products. Primerica insured approximately 5 million lives and had over 2 million client investment accounts at December 31, 2018. Primerica, through its insurance company subsidiaries, was the #2 issuer of Term Life insurance coverage in North America in 2017. 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”.


PRIMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
	March 31, 2019		December 31, 2018
Assets
Investments:
Fixed-maturity securities available-for-sale, at fair value	$	2,088,702	$	2,069,635
Fixed-maturity security held-to-maturity, atamortized cost		1,036,110		970,390
Short-term investments available-for-sale, at fair value		8,230		8,171
Equity securities, at fair value		37,848		37,679
Trading securities, at fair value		26,556		13,610
Policy loans		30,783		31,501
Total investments		3,228,229		3,130,986
Cash and cash equivalents		279,626		262,138
Accrued investment income		18,450		17,057
Reinsurance recoverables		4,202,903		4,141,569
Deferred policy acquisition costs, net		2,181,741		2,133,920
Agent balances, due premiums and other receivables		226,061		215,139
Intangible assets, net		47,260		48,111
Income taxes		62,252		59,336
Operating lease right-of-use assets		50,506		-
Other assets¹		410,841		391,291
Separate account assets		2,368,760		2,195,501
Total assets	$	13,076,629	$	12,595,048

Liabilities and Stockholders’ Equity
Liabilities:
Future policy benefits	$	6,240,864	$	6,168,157
Unearned and advance premiums		17,341		15,587
Policy claims and other benefits payable		308,422		313,862
Other policyholders’ funds		377,360		370,644
Notes payable		373,755		373,661
Surplus note		1,035,421		969,685
Income taxes		206,180		187,104
Operating lease liabilities		56,712		-
Other liabilities		505,514		486,772
Payable under securities lending		64,914		52,562
Separate account liabilities		2,368,760		2,195,501
Total liabilities		11,555,243		11,133,535

Stockholders’ equity:
Common stock		424		427
Paid-in capital		-		-
Retained earnings		1,506,943		1,489,520
Accumulated other comprehensive income (loss), net of income tax		14,019		(28,434)
Total stockholders’ equity		1,521,386		1,461,513
Total liabilities and stockholders’ equity	$	13,076,629	$	12,595,048

⁽¹⁾ Certain reclassifications have been made to the December 31, 2018 amounts to conform to current-period reporting classifications.
These reclassifications had no impact on net income or total stockholders’ equity.


PRIMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)
	Three months ended March 31,
		2019		2018
	(In thousands, except per-share amounts)
Revenues:
Direct premiums		$	677,286	$	656,087
Ceded premiums			(389,795)		(394,249)
Net premiums			287,491		261,838
Commissions and fees			167,315		166,827
Net investment income			24,111		19,017
Realized investment gains (losses), including OTTI			2,847		(1,656)
Other, net			13,223		13,897
Total revenues			494,987		459,923

Benefits and expenses:
Benefits and claims			122,284		116,890
Amortization of deferred policy acquisition costs			64,628		60,165
Sales commissions			83,799		82,519
Insurance expenses			43,402		41,109
Insurance commissions			5,612		5,459
Interest expense			7,180		7,173
Other operating expenses			65,707		63,227
Total benefits and expenses			392,619		376,960
Income before income taxes			102,368		82,963
Income taxes			23,203		17,248
Net income		$	79,165	$	65,715

Earnings per share:
Basic earnings per share		$	1.84	$	1.46
Diluted earnings per share		$	1.83	$	1.46

Weighted-average shares used in computing earnings per share:
Basic			42,824		44,740
Diluted			42,942		44,855


PRIMERICA, INC. AND SUBSIDIARIES
Consolidated Adjusted Operating Results Reconciliation (Unaudited – in thousands, except per share amounts)

	Three months ended March 31,
		2019		2018		% Change
	(In thousands, except per-share amounts)
Total Revenues		$	494,987	$	459,923		8
Less: Realized investment gains (losses), including OTTI			2,847		(1,656)
Less: 10% deposit asset MTM included in net investment income (NII)⁽¹⁾			2,147		(1,288)
Adjusted operating revenues			489,993	$	462,867		6

Income before income taxes		$	102,368	$	82,963		23
Less: Realized investment gains (losses), including OTTI		$	2,847	$	(1,656)
Less: 10% deposit asset MTM included in NII			2,147		(1,288)
Less: Tax impact of preceding items			(1,132)		675
Less: Transition impact of tax reform			-		1,768
Adjusted operating income before income taxes			75,303		66,216		14

Diluted earnings per share⁽¹⁾		$	1.83	$	1.46		26
Less: Net after-tax impact of operating adjustments			0.09		(0.01)
Diluted adjusted operating earnings per share ⁽¹⁾		$	1.74	$	1.47		19


PRIMERICA, INC. AND SUBSIDIARIES
Adjusted Operating Results Reconciliation (Unaudited – in thousands)
	Three months ended March 31,
		2019		2018

Total Revenues		$	35,473	$	27,573
Less: Realized investment gains (losses), including OTTI			2,847		(1,656)
Less: 10% deposit asset MTM included in NII			2,147		(1,288)
Adjusted operating revenues			30,479			30,517

Loss before income taxes		$	(10,654)		(16,642)
Realized investment gains (losses), including OTTI			2,847		(1,656)
Less: 10% deposit asset MTM included in NII			2,147		(1,288)
Adjusted operating loss before income taxes			(15,648)		(13,698)


PRIMERICA, INC. AND SUBSIDIARIES
Adjusted Stockholders' Equity Reconciliation (Unaudited – in thousands)

	March 31, 2019		December 31, 2018

Stockholders' equity	$	1,521,387	$	1,461,513
Less: Unrealized net investment gains (losses) recorded in stockholders' equity, net of income tax		28,916		(7,370)
Adjusted stockholder's equity		1,492,471		1,468,883

844981

by James Lake

Money Mistakes of Middle-Income Americans

Fox Business, May 07, 2019 - Linda Bell

How confident are you in your financial future? Primerica surveyed 1,000 middle-income Americans and found that many of them are anxious about their long-term financial security. Despite those worries, many families are not taking steps to secure their financial future. Nearly two-thirds of respondents acknowledge making at least one bad financial mistake, with an average loss of more than $27,000. Glenn Williams, chief executive officer of Primerica shared some of the money missteps of middle-income Americans:

Not making more than the minimum payment on credit cards

“Of course, that stretches out the payment time and the cost of that debt,” he says. “We really encourage people to minimize the use of their credit cards. If they do use credit cards, make sure they come close to making the full payment each month and keep a balance off of that credit card.”

If you have accumulated a balance over time? Williams suggests coming up with a game plan to systematically pay off that debt and get it down to zero as quickly as possible.

Not having more than $50,000 in life insurance coverage

Williams says $50,000 in life insurance coverage is a minimal standard of income protection and not very much at all. He says most families don't realize they need more and can purchase inexpensive term life insurance relatively cheaply.

Not having money Invested in accounts outside of traditional savings

Savings accounts are bank accounts where you can store and grow your money. Williams says some families mistakenly believe they don’t have enough money to invest outside of savings accounts. He suggests investing in mutual funds. You can get started for as little as $25 month.

“Over time as their financial conditions improve, they can increase the amount they invest regularly,” Williams says. “They should start something and do it outside of the traditional savings account that has very low returns.”

Not having enough savings for at least three months of expenses

Putting aside three to six months of expenses in an emergency fund can be the hardest task for families. Williams says mom and dad are often so overwhelmed by their finances that they don’t even try to save money for a rainy day. He says that often leads to them using credit cards for emergencies.

So what’s the best way to go about saving?

“If you can set aside a fixed percentage or a fixed amount to start building that emergency fund, that’s a great way to begin,” Williams says. “You may take two steps forward and one step back. You may start building the emergency fund and then have an emergency, but at least you didn’t put it on your credit card. Already you’ve made progress if you’ve started eliminating the use of credit cards and the building of that debt.”

Not saving enough for retirement

The Primerica survey found just one in four Americans feel comfortable determining how much they need to save for retirement on their own. If you are worried about how to set yourself up for the future, Williams suggests reaching out to a financial professional.

“I would encourage people to get some outside perspective,” he says. “Find out how to have a personalized strategy to get to where you would like to go. Families enjoy having someone talk them through that. Someone who can give them examples of other families that have dealt with that successfully or maybe made mistakes that they can watch. When confidence increases, action increases from our experience.”

844449

by James Lake

New Survey: Middle-Income Americans Concerned About Their Financial Future Biggest Fear is Not Saving Enough Money for Retirement

PRNewswire, March 27, 2019

Primerica, Inc. (NYSE: PRI), a leading provider of financial services to middle-income families, today released its 2019 Primerica Financial Security Monitor, which found many Americans remain anxious about their long-term financial security. The survey of 1,000 middle-income Americans with household incomes between $29,000 and $106,000 was completed in February and found that many families are not taking steps toward a secure future. The Monitor provides a detailed snapshot of middle-income Americans financial preparedness, habits, and concerns.

Only half of middle-income Americans believe their financial security will improve in the next five years. Just one-in-four Americans feel aware enough to be very comfortable determining how much they need to save for retirement on their own. Half have never met with a financial professional. And the Monitor's Financial Security Scorecard – which measures individual financial security preparedness – found that only 31% of Americans earn an A or B for preparedness based on answers to key indicators.

"The survey confirmed our experience in the middle market. Most working families don't feel confident enough to take the steps necessary to achieve financial security. As a result, they are not optimistic about their financial futures," said Glenn Williams, Primerica CEO. "Primerica's representatives are focused every day on helping middle-income families across North America. We break down financial concepts into straightforward language and provide a financial roadmap to help families determine the right next steps to a more secure financial future."

Costly Financial Mistakes and the Value of Financial Guidance
Nearly two-thirds of respondents (61%) acknowledge making at least one really bad financial mistake, with an average loss of more than $27,000.

The Benefit of a Financial Professional to Long-term Preparedness
To measure long-term financial preparedness, the Monitor included a Financial Security Scorecard. Survey respondents were graded based on whether or not they engage in the following financial preparedness fundamentals:

Making more than the minimum payment on credit card bills every month;
Having $50,000 or more in life insurance coverage;
Saving every month, regardless of amount;
Investing some of their money in accounts outside traditional savings accounts;
Having enough savings to cover three months of expenses if the primary breadwinner loses his or her job.

Close to half (43%) reported doing two or fewer of these financial fundamentals. But those who have met with a financial professional showed stronger results: 76% of those who have met with a financial professional earned a C or better, compared to just 39% of those who have not.

Biggest Financial Fear is Being Ready for Retirement
The No. 1 fear among middle-income Americans is not saving enough for retirement (43%). When asked why they don't save more, half (50%) say it's because they don't make enough money to save.

Many Concerned About Credit Card Debt
High credit card debt is the second-rated concern, with one in three middle-income Americans saying it's their biggest financial concern. More than half do not pay off their credit card balance every month, and one-in-five make just the minimum payment or less. The average credit card debt of all respondents is nearly $3,000. The third biggest concern is paying medical bills (22%), followed by worries about stable income (20%).

More to Do to Prepare for Emergencies
Just over one-third are confident they could pay for an emergency expense, and 69% worry about how their families would cope financially if faced with a major medical expense, or if a significant economic recession were to hit (67%).

Millennials Not Comfortable 'Going at It Alone' Online
The Monitor survey also examined differences in attitudes and behaviors towards personal finance across generations. Although they are the first generation to grow up as "digital natives," millennials are the most uncomfortable of any age range doing personal financial tasks online. These respondents, between the ages of 18 and 34, are the least likely to be comfortable opening an investment account, buying insurance, completing taxes or tracking their financial progress without working directly with a financial professional. Feeling comfortable completing personal finance tasks online, unassisted, is highest among Gen Xers (the 35-54 age range).

"The finding that millennials are not comfortable managing their personal finances electronically is surprising, because we know they are very tech savvy," Williams noted. "The idea of 'going at it alone' with their personal finances can cause a lot of anxiety, and they need in-person support from a financial professional to feel confident about their decisions — especially those who are just starting out."

Unity in Financial Security Concerns
The Monitor survey revealed that while there are some differences regarding overall financial know-how and habits, financial anxiety and uncertainty was prevalent among all groups. "Our Financial Security Monitor confirms that financial security is something that everyone strives for and most people would benefit from the assistance of a financial professional in mapping a course toward that goal," Williams added. "Due to our 40 years of experience helping middle income families prepare for their financial futures, Primerica is uniquely positioned to provide that critical part of the financial equation."

by James Lake

Primerica Reports Fourth Quarter 2018 Results, 2019 Share Repurchase Authorization and Increase in Stockholder Dividend

Business Wire, February 07, 2019

Life insurance licensed representatives increase 4% to 130,736

Term Life net premiums grow 11%

Investment and Savings Products sales increase 8%

Net earnings per diluted share (EPS) of $1.99; return on stockholders’ equity (ROE) of 23.8%

Adjusted operating EPS of $2.01; adjusted net operating income return on adjusted stockholders’ equity (ROAE) of 24.0%

Board of Directors approves share repurchase program totaling $275 million; $225 million in repurchases expected in 2019

Board of Directors approves 36% increase in dividends to $0.34 per share, payable March 15, 2019

Primerica, Inc. (NYSE: PRI) today announced financial results for the fourth quarter and year ended December 31, 2018. Total revenues during the quarter of $487.3 million increased 10% compared to the same quarter in 2017. Net income during the quarter was $86.5 million, or $1.99 per diluted share, compared with net income of $168.4 million, or $3.72 per diluted share, during the fourth quarter of 2017. The fourth quarter of 2017 included a tax benefit of $95.5 million, or $2.11 per diluted share, to recognize the transition effect of the Tax Cuts and Jobs Act of 2017 (Tax Reform). ROE for the fourth quarter of 2018 was 23.8%.

Adjusted operating revenues were $488.7 million, increasing 11% compared to the fourth quarter of 2017. Adjusted net operating income was $87.6 million and adjusted operating EPS was $2.01, increasing $15.4 million, or $0.41 per diluted share, respectively, year-over-year largely driven by a lower corporate tax rate in 2018. During the fourth quarter of 2018, the full-year tax expense related to the Global Intangible Low-Taxed Income (GILTI) component of Tax Reform was reduced from approximately $4 million to $0.7 million based on regulations released by the Department of Treasury in November 2018. This adjustment resulted in a benefit of $0.07 per diluted share. ROAE for the fourth quarter of 2018 was 24.0%.

Results for both the quarter and the full year reflect solid Term Life and Investment and Savings Products (ISP) performance. Comparing the year ended December 31, 2018 to the prior year, net premiums increased 13%, average ISP client asset values increased 9% and ISP sales increased 14%. Financial results also reflect the benefit of a lower corporate tax rate due to Tax Reform. During 2018, the Company repurchased $210 million of common stock and paid quarterly dividends totaling $44 million because of strong cash flows generated by the business.

Additional 2018 production results include:

“In 2018, we delivered double-digit revenue growth and maintained our commitment to capital deployment,” said Glenn Williams, Chief Executive Officer. “Our sales force remains focused on our mission to help middle-income families achieve financial security. To support this effort, we continue to improve our products and technology to enhance the client experience and expand distribution capabilities for our representatives. We enter 2019 with a renewed level of energy and anticipation for success during a year that includes our biennial convention.”

Fourth Quarter Distribution & Segment Results
Distribution Results
	Q4 2018		Q4 2017		% Change
Life Licensed Sales Force ⁽¹⁾		130,658		126,121	4	%
Recruits		61,990		64,401	(4	)%
New Life-Licensed Representatives		11,052		11,902	(7	)%
Life Insurance Policies Issued		72,122		80,068	(10	)%
Life Productivity ⁽²⁾		0.18		0.21	*
ISP Product Sales ($ billions)	$	1.74	$	1.60	8	%
Average Client Asset Values ($ billions)	$	61.01	$	59.91	2	%

⁽¹⁾	End of period
⁽²⁾	Life productivity equals policies issued divided by the average number of life insurance licensed representatives per month
*	Not calculated



Segment Results
	Q4 2018		Q4 2017		% Change
Adjusted Operating Revenues: ⁽¹⁾
Term Life Insurance	$	291,941	$	263,031	11	%
Investment and Savings Products		164,924		148,509	11	%
Corporate and Other Distributed Products		31,831		30,323	(4	)%
Total adjusted operating revenues ⁽¹⁾	$	488,696	$	441,863	11	%

Adjusted Operating Income (loss) before income taxes:⁽¹⁾
Term Life Insurance	$	72,117	$	68,237	6	%
Investment and Savings Products		45,647		46,982	(3	)%
Corporate and Other Distributed Products		(8,471)		(8,209)	3	%
Total adjusted operating income before income taxes ⁽¹⁾	$	$109,293	$	$107,010	2	%

⁽¹⁾

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

Life Insurance Licensed Sales Force

At year-end, there were 130,736 licensed life insurance representatives, which reflected an increase of 4% compared to December 31, 2017. During the fourth quarter of 2018, both recruits and new life licenses were down slightly year-over-year, reflecting normal fluctuations in momentum.

Term Life Insurance

Revenues of $291.9 million during the fourth quarter increased 11% compared to the same quarter in 2017 and were driven by continued growth in net premiums. Persistency and benefits and claims levels were generally in line with the prior year’s fourth quarter, while insurance expenses increased $7.5 million. Approximately half of this increase was due to a premium and retaliatory tax benefit recorded in the fourth quarter of 2017 when Primerica Life Insurance Company changed its state of domicile. The remainder is attributable to supporting the growth of the business.

Term Life productivity for the quarter was 0.18 policies per life insurance licensed representative per month and remained within the historical range, although lower than recent levels. As a result, Term Life insurance policies issued declined 10% year-over-year.

Investment and Savings Products

Revenues of $164.9 million increased $16.4 million, or 11%, compared to the fourth quarter of 2017. Approximately $6 million of this amount reflects revisions to record-keeping platform contracts, which also resulted in a similar increase in operating expenses. The increase in sales-based revenues and expenses was higher than the related increase in revenue-generating product sales driven by continued strength in variable annuities and index annuities. The increase in asset-based revenues and expenses was due to continued growth in average client asset values, most notably in our managed accounts. During the quarter, average client asset values were $61.0 billion, increasing 2% compared to the prior year, and net client flows were $360 million. Canadian segregated fund DAC amortization increased $2.6 million year-over-year as markets were under pressure during the fourth quarter of 2018 in contrast to more favorable market conditions during the fourth quarter of 2017.

Corporate and Other Distributed Products

Adjusted operating revenues were $31.8 million and adjusted operating losses before income taxes were $8.5 million. Net investment income increased 5%, reflecting a larger invested asset portfolio partly offset by lower portfolio yields. Compared to the same quarter last year, expenses increased due to higher employee-related costs and other corporate growth initiatives.

Taxes

In the fourth quarter of 2018, the effective income tax rate was 19.8% During the fourth quarter, the full year tax expense related to the GILTI component of Tax Reform was reduced from $4 million to $0.7 million based on regulations released by the Department of Treasury in November. The full year 2019 operating effective income tax rate is expected to be relatively consistent with 2018 at approximately 23%.

Capital

Primerica’s strong capital generation enabled the Company’s Board of Directors to authorize the repurchase of up to $275 million of its common stock through June 30, 2020 (including $65 million that remained under the previous share repurchase program as of December 31, 2018) and approve a 36% increase in stockholder dividends to $0.34 per share payable on March 15, 2019 to stockholders of record as of February 20, 2019. The Company expects to repurchase $225 million of its common stock during 2019.

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, 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 (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 other-than-temporary impairments (OTTI), for all periods presented. We exclude realized investment gains (losses) 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. In 2017, we excluded from adjusted net operating income and diluted adjusted operating earnings per share the one-time transition impact of provisional amounts recognized from Tax Reform to present meaningful and useful period-over-period comparisons that could be distorted by the historically infrequent tax law change. In 2018, we excluded from adjusted net operating income and diluted adjusted operating earnings per share the one-time transition impact of adjustments made to finalize the provisional amounts recognized from Tax Reform. 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.

⁽¹⁾

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

Beginning in the first quarter of 2018, MTM adjustments on investments held in equity securities are recognized in total revenues measured in accordance with GAAP as realized investment gains (losses) due to the adoption of Accounting Standards Update No. 2016-01. Accordingly, we excluded the impact of MTM adjustments on investments held in equity securities from adjusted operating revenues and other non-GAAP financial measures.

Beginning in the first quarter of 2018, the MTM adjustment on a deposit asset held in support of a 10% coinsurance agreement (the 10% deposit asset MTM) recognized under the deposit method of accounting for GAAP has been excluded from adjusted operating revenues and other non-GAAP financial measures. Prior year non-GAAP financial results have not been recast as the 10% deposit asset MTM in the prior year was not material.

Earnings Webcast Information

Primerica will hold a webcast Friday, February 8, 2019 at 10:00 am EST, to discuss fourth 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; changes to the independent contractor status of our sales representatives; our or our sales representatives’ violation of or non-compliance with laws and regulations or the failure to protect the confidentiality of client information; differences between our actual experience and our expectations regarding mortality, persistency, expenses and interests rates as reflected in the pricing for our insurance policies; the occurrence of a catastrophic event that causes a large number of premature deaths of our insureds; changes in federal and state legislation, including other legislation or regulation that affects our insurance and investment product businesses, 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; the effects of credit deterioration and interest rate fluctuations on our invested asset portfolio; incorrectly valuing our investments; inadequate or unaffordable reinsurance or the failure of our reinsurers to perform their obligations; the failure of, or legal challenges to, the support tools we provide to our sales force; heightened standards of conduct or more stringent licensing requirements for our sales representatives; inadequate policies and procedures regarding suitability review of client transactions; the failure of our investment products to remain competitive with other investment options or the change to investment and savings products offered by key providers in a way that is not beneficial to our business; fluctuations in the performance of client assets under management; the inability of our subsidiaries to pay dividends or make distributions; our inability to generate and maintain a sufficient amount of working capital; our non-compliance with the covenants of our senior unsecured debt; legal and regulatory investigations and actions concerning us or our sales representatives; the loss of key personnel; the failure of our information technology systems, breach of our information security or failure of our business continuity plan; and fluctuations in 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, provides financial services to middle income households in North America. Primerica representatives educate their 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 the Company underwrites, and mutual funds, annuities and other financial products, which are distributed primarily on behalf of third parties. Primerica insured approximately 5 million lives and have over 2 million client investment accounts at December 31, 2018. 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.”


PRIMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
	December 31, 2018		December 31, 2017
Assets
Investments:
Fixed-maturity securities available-for-sale, at fair value	$	2,069,635	$	1,927,842
Fixed-maturity security held-to-maturity, atamortized cost		970,390		737,150
Short-term investments available-for-sale, at fair value		8,171		-
Equity securities available-for-sale, at fair value		-		41,107
Equity securities, at fair value		37,679		-
Trading securities, at fair value		13,610		6,228
Policy loans		31,501		32,816
Total investments		3,130,986		2,745,143
Cash and cash equivalents		262,138		279,962
Accrued investment income		17,057		16,665
Reinsurance recoverables		4,141,569		4,205,173
Deferred policy acquisition costs, net		2,133,920		1,951,892
Agent balances, due premiums and other receivables		265,258		229,522
Intangible assets, net		48,111		51,513
Income taxes		59,336		48,614
Other assets		341,172		359,347
Separate account assets		2,195,501		2,572,872
Total assets	$	12,595,048	$	12,460,703

Liabilities and Stockholders’ Equity
Liabilities:
Future policy benefits	$	6,168,157	$	5,954,524
Unearned and advance premiums		15,587		15,423
Policy claims and other benefits payable		313,862		307,401
Other policyholders’ funds		370,644		363,061
Notes payable		373,661		373,288
Surplus note		969,685		736,381
Income taxes		187,104		177,468
Other liabilities		486,772		451,398
Payable under securities lending		52,562		89,786
Separate account liabilities		2,195,501		2,572,872
Total liabilities		11,133,535		11,041,602

Stockholders’ equity:
Common stock		427		443
Paid-in capital		-		-
Retained earnings		1,489,520		1,375,090
Accumulated other comprehensive income (loss), net of income tax		(28,434)		43,568
Total stockholders’ equity		1,461,513		1,419,101
Total liabilities and stockholders’ equity	$	12,595,048	$	12,460,703


PRIMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)
	Three months ended December 31,
		December 31, 2018		December 31, 2017
	(In thousands, except per-share amounts)
Revenues:
Direct premiums		$	673,605	$	650,906
Ceded premiums			(392,290)		(397,318)
Net premiums			281,315		253,588
Commissions and fees			171,961		154,105
Net investment income			21,760		19,459
Realized investment gains (losses), including OTTI			(1,651)		1,079
Other, net			13,940		14,711
Total revenues			487,325		442,942

Benefits and expenses:
Benefits and claims			116,837		108,259
Amortization of deferred policy acquisition costs			66,184		56,304
Sales commissions			85,323		76,823
Insurance expenses			41,671		35,103
Insurance commissions			5,612		5,459
Interest expense			7,192		7,144
Other operating expenses			56,584		45,761
Total benefits and expenses			379,403		334,853
Income before income taxes			107,922		108,089
Income taxes			21,381		(60,354)
Net income		$	86,541	$	168,443

Earnings per share:
Basic earnings per share		$	1.99	$	3.73
Diluted earnings per share		$	1.99	$	3.72

Shares used in computing earnings per share:
Basic			43,180		44,809
Diluted			43,985		44,917


PRIMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)
	Three months ended December 31,
		December 31, 2018		December 31, 2017
	(In thousands, except per-share amounts)
Revenues:
Direct premiums		$	2,667,104	$	2,562,109
Ceded premiums			(1,581,164)		(1,600,771)
Net premiums			1,085,940		961,338
Commissions and fees			677,607		591,317
Net investment income			81,430		79,017
Realized investment gains (losses), including OTTI			(2,121)		1,339
Other, net			56,987		56,091
Total revenues			1,899,843		1,689,102

Benefits and expenses:
Benefits and claims			457,583		416,019
Amortization of deferred policy acquisition costs			239,730		209,399
Sales commissions			335,384		297,988
Insurance expenses			168,156		147,280
Insurance commissions			24,490		21,108
Interest expense			28,809		28,488
Other operating expenses			229,607		189,300
Total benefits and expenses			1,483,759		1,309,582
Income before income taxes			416,084		379,520
Income taxes			91,990		29,265
Net income		$	324,094	$	350,255

Earnings per share:
Basic earnings per share		$	7.35	$	7.63
Diluted earnings per share		$	7.33	$	7.61

Shares used in computing earnings per share:
Basic			43,854		45,598
Diluted			43,985		45,689


PRIMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)

	Three months ended December 31,
		2018		2017		% Change
	(In thousands, except per-share amounts)
Total Revenues		$	487,325	$	442,942		10%
Less: Realized investment gains (losses), including OTTI			(1,651)		1,079
Less: 10% deposit asset MTM included in net investment income (NII)⁽¹⁾			280		-
Commissions and fees			488,696	$	441,863		11%

Income before income taxes		$	107,922	$	108,089		*
Less: Realized investment gains (losses), including OTTI		$	(1,651)	$	1,079
Less: 10% deposit asset MTM included in NII			280		-
Adjusted operating income before income taxes			109,293		107,010		2%

Net income		$	86,541	$	168,443		(49%)
Less: Realized investment gains (losses), including OTTI			(1,651)		1,079
Sales commissions			280		-
Insurance expenses			272		(350)
Insurance commissions			-		95,457
Adjusted net operating income		$	87,640	$	72,257		21%

Diluted earnings per share⁽²⁾		$	1.99	$	3.72		(47%)
Less: Net after-tax impact of operating adjustments			(0.02)		2.12
Diluted adjusted operating earnings per share			2.01		1.60		26%

⁽¹⁾	The 10% deposit asset MTM during the year ended December 31, 2017 was not material, therefore, non-GAAP financial measures for 2017 have not been recast for this adjustment.
⁽²⁾	Percentage change in earnings per share is calculated prior to rounding per share amounts.
*	Less than 1%


PRIMERICA, INC. AND SUBSIDIARIES
Consolidated Adjusted Operating Results Reconciliation

	Three months ended December 31,
		2018		2017		% Change
	(In thousands, except per-share amounts)
Total Revenues		$	1,899,843	$	1,689,102		12%
Less: Realized investment gains (losses), including OTTI			(2,121)		1,339
Less: 10% deposit asset MTM included in net investment income (NII)⁽¹⁾			(1,680)		-
Adjusted operating revenues			$1,903,644	$	$1,687,763		13%

Income before income taxes		$	416,084	$	379,520		10%
Less: Realized investment gains (losses), including OTTI			(2,121)		1,339
Less: 10% deposit asset MTM included in NII⁽¹⁾			(1,680)		-
Adjusted operating income before income taxes		$	419,885	$	378,181		11%

Net income		$	324,094	$	350,255		(7%)
Less: Realized investment gains (losses), including OTTI			(2,121)		1,339
Less: 10% deposit asset MTM included in NII⁽¹⁾			(1,680)		-
Less: Tax impact of preceding items			827		(434)
Less: Transition impact of tax reform			2,737		95,457
Adjusted net operating income		$	324,331	$	253,893		28%

Diluted earnings per share⁽²⁾		$	7.33	$	7.61		(4%)
Less: Net after-tax impact of operating adjustments			0.00		2.09
Diluted adjusted operating earnings per share			27.33		5.52		33%

⁽¹⁾	The 10% deposit asset MTM during the year ended December 31, 2017 was not material, therefore, non-GAAP financial measures for 2017 have not been recast for this adjustment.
⁽²⁾	Percentage change in earnings per share is calculated prior to rounding per share amounts.


TERM LIFE INSURANCE SEGMENT
Adjusted Premiums Reconciliation
	Three months ended December 31,
		2018		2017
	(Unaudited – in thousands)
Direct premiums		$	2,667,104	$	2,562,109
Less: Premiums ceded to IPO coinsurers			(1,581,164)		(1,600,771)
Adjusted direct premiums			1,085,940		961,338

Ceded premiums			81,430		79,017
Less: Premiums ceded to IPO coinsurers			(2,121)		1,339
Other ceded premiums			56,987		56,091
Net premiums			1,899,843		1,689,102


CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT
Adjusted Operating Results Reconciliation
	Three months ended December 31,
		2018		2017
	(Unaudited – in thousands)
Total revenues		$	2,667,104	$	2,562,109
Less: Realized investment gains (losses), including OTTI			(1,581,164)		(1,600,771)
Less: 10% deposit asset MTM included in NII⁽¹⁾			1,085,940		961,338
Adjusted operating revenues			1,085,940		961,338

Loss before income taxes			81,430		79,017
Less: Realized investment gains (losses), including OTTI			(2,121)		1,339
Less: 10% deposit asset MTM included in NII⁽¹⁾			56,987		56,091
Adjusted operating loss before income taxes			1,899,843		1,689,102

⁽¹⁾	The 10% deposit asset MTM during the year ended December 31, 2017 was not material, therefore, non-GAAP financial measures for 2017 have not been recast for this adjustment.


PRIMERICA, INC. AND SUBSIDIARIES
Adjusted Stockholders’ Equity Reconciliation
		December 31, 2018		December 31, 2017
	(Unaudited – in thousands)
Stockholders’ equity		$	2,667,104	$	2,562,109
Less: Unrealized net investment gains (losses) recorded in stockholders’ equity, net of income tax			(1,581,164)		(1,600,771)
Adjusted stockholders’ equity			1,085,940		961,338

CONTACTS

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

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

707022

by James Lake

Primerica Welcomes Senior Leaders to Atlanta to Kick Off 2019

Direct Selling News, January 3, 2019

Primerica, Inc. (NYSE: PRI) is hosting its top representatives from across the United States and Canada for its Senior Leadership Meeting in Atlanta.

The event, which began yesterday and will run through today, will largely focus on new sales force and client initiatives for 2019.

The meeting will also celebrate Primerica's ongoing success in 2018, including term life insurance face amount in force of approximately $782 billion at year end, as well as record-breaking Investment and Savings Products sales of $7 billion, an increase of 13 percent year-over-year.

“2018 was another outstanding year for Primerica as we continued to execute our strategy to drive growth and improve performance by expanding distribution and prudently deploying capital,” said Glenn Williams, chief executive officer. “We ended the year with a sales force of more than 130,700 life insurance-licensed representatives and more than 25,000 mutual fund-licensed representatives, both of which represent the highest counts since the company went public in 2010. Our diverse, talented sales force is our biggest competitive advantage, and it positions us well to continue providing exemplary service and financial products to middle income families while delivering long-term value for all of our stakeholders.”

Additional 2018 production results include:

Recruiting of New Representatives: 291,000
Term Life Insurance Face Amount Issued: $95 billion
Term Life Insurance Claims Paid to Policy Beneficiaries: $1.4 billion
Client Asset Values of approximately $56 billion at year end
Compensation Paid to the Sales Force of approximately $790 million

“In 2019, we plan to refine our clients' experience, evaluate new product offerings, and enhance distribution capabilities for our representatives,” said Williams. “The middle-income market's need for income protection and retirement savings is greater than ever. Thanks to the strong leadership of our sales force, I am confident in our ability to meet the financial needs of hard-working families throughout North America in the coming year.”

707022

by James Lake

Primerica Reports Third Quarter 2018 Results

BusinessWire, November 6, 2018

5% increase in life insurance licensed representatives to 130,658

13% growth in Term Life net premiums

23% increase in Investment and Savings Products (ISP) sales

33% growth in net earnings per diluted share (EPS) to $1.94 and 32% growth in adjusted operating EPS to $1.93

23.9% net income return on stockholders' equity (ROE) and 23.7% adjusted net operating income return on adjusted stockholders' equity (ROAE)

Declared dividend of $0.25 per share, payable on December 14, 2018

Primerica, Inc. (NYSE: PRI) today announced financial results for the quarter ended September 30, 2018. In the third quarter, total revenues increased 13% to $484.8 million and adjusted operating revenues grew 14% to $485.2 million. Income before income taxes increased 11% and adjusted operating income before income taxes increased 12% over the prior year period. Net income grew 28% to $85.1 million and adjusted net operating income grew 27% to $84.5 million compared with the third quarter of 2017, both of which reflect 2018 benefits from the Tax Cuts and Jobs Act of 2017 (Tax Reform).

Glenn Williams, Chief Executive Officer, said, "The power of our franchise was evident in the third quarter with top-line growth in each of our businesses. The tremendous sales growth achieved in our Investment and Savings Products segment was a highlight of the quarter. The performance of our two complementary businesses combined with capital deployment and the benefit of Tax Reform delivered a 33% increase in EPS year-over-year and 23.9% ROE in the third quarter. We remain focused on executing initiatives to drive growth in order to deliver long-term value to our clients, representatives and stockholders."

During the third quarter, Term Life performance reflected a 13% increase in net premiums year-over-year, favorable claims versus historical experience, stable persistency and a modest decline in issued policies. Strong ISP performance was driven by 23% growth in total product sales and a 10% increase in average client asset values year-over-year. Insurance and other operating expenses of $96.6 million were lower than our expectations due to the timing of business initiatives.

Earnings growth, which benefited from Tax Reform, combined with ongoing share repurchases drove EPS to $1.94, up 33%, and adjusted operating EPS to $1.93, up 32% compared to the third quarter a year ago. ROE and ROAE expanded to 23.9% and 23.7%, resp

Third Quarter Distribution & Segment Results

Distribution Results
	Q3 2018		Q3 2017		% Change		Q2 2018		% Change
Life Licensed Sales Force (1)		130,658		124,436	5	%		130,156	*
Recruits		76,146		90,210	(16	)%		76,520	*
New Life-Licensed Representatives		11,715		12,783	(8	)%		13,544	(14	)%
Life Insurance Policies Issued		74,892		78,056	(4	)%		83,754	(11	)%
Life Productivity (2)		0.19		0.21	*			0.22	*
ISP Product Sales ($ billions)	$	1.76	$	1.43	23	%	$	1.76	*
Average Client Asset Values ($ billions)	$	63.36	$	57.66	10	%	$	61.30	3	%


Segment Results
	Q3 2018			Q3 2017			% Change		Q2 2018			% Change
	*($ in thousands)*
Adjusted Operating Revenues: (1)
Term Life Insurance	$	287,972		$	256,240		12	%	$	272,978		5	%
Investment and Savings Products		165,269			140,058		18	%		162,841		1	%
Corporate and Other Distributed Products		31,963			30,980		3	%		31,058		3	%
Total adjusted operating revenues (1)	$	485,204		$	427,278		14	%	$	466,877		4	%

Adjusted Operating Income (loss) before income taxes:(1)
Term Life Insurance	$	74,337		$	66,543		12	%	$	75,828		(2	)%
Investment and Savings Products		45,052			39,050		15	%		43,227		4	%
Corporate and Other Distributed Products		(7,531	)		(5,415	)	39	%		(6,228	)	21	%
Total adjusted operating income before income taxes (1)	$	111,858		$	100,178		12	%	$	112,827		(1	)%

Life Insurance Licensed Sales Force. New recruits declined 16% from the third quarter a year ago, which benefitted from approximately 17,000 recruits in hurricane-affected areas whose Independent Business Application (IBA) fees were waived. New life insurance licenses were down 8% year-over-year, while the size of the life insurance licensed sales force increased 5% to 130,658 representatives in the period.

Term Life Insurance. Term Life continued to achieve strong financial results with revenues increasing to $288.0 million driven by a 13% increase in net premiums compared with the third quarter a year ago. Income before income taxes in the segment increased 12% to $74.3 million year-over-year. Term Life productivity of 0.19 policies per life insurance licensed representative per month was within the historical range, although lower than the elevated levels experienced in the past few years. As a result, Term Life insurance policies issued declined 4% year-over-year. Term Life estimated annualized issued premiums continue to grow year-over-year with policy additions and other increases. Normal claims volatility positively impacted benefits and claims by approximately $2 million in the third quarter of 2018, which was similar to the favorable impact experienced in the prior year period. Persistency was generally consistent with the year ago quarter while non-deferred insurance commissions increased, largely due to revisions in the sales force equity program that changed the timing of expense recognition but not the economics of the program. Insurance expenses increased $3.7 million from the prior year period to support business growth and initiatives.

Investment and Savings Products. Strong Investment and Savings Products segment performance in the third quarter of 2018 was driven by sales momentum and client asset growth. Total ISP sales grew 23% versus the year ago period. Variable annuity sales increased 63% from the third quarter of 2017 reflecting recent product enhancements by our product partners which offer more attractive benefits to clients. The continued success of the Lifetime Investment Platform resulted in a year-over-year growth in both managed accounts sales and average client assets of 52% and 42%, respectively. Positive market conditions propelled growth in both ISP sales and average client assets.

During the third quarter, sales-based revenues increased 20% in line with the growth in ISP sales. Asset-based revenues grew 11% reflecting a 10% increase in overall average client asset values to $63.4 billion and positive net flows of $264 million for the period. Account-based revenues increased $6.5 million and account-based operating expenses increased $5.7 million year-over-year as a result of the revised ISP record-keeping platform contracts. Total ISP revenues increased 18% to $165.3 million and income before income taxes grew 15% to $45.1 million compared with the year ago period.

Corporate and Other Distributed Products (C&O). C&O adjusted operating revenues were $32.0 million and adjusted operating losses before income taxes were $7.5 million in the third quarter of 2018. Net investment income was positively impacted by a larger invested asset portfolio than in the prior year period, partially offset by lower portfolio yield. Net unrealized losses on our invested asset portfolio were $5.7 million at quarter-end versus $1.9 million of net unrealized gains at June 30, 2018, reflecting the impact of higher interest rates on prices of fixed income securities. Other operating expenses reflect higher employee-related costs as well as spending to support business initiatives.

Taxes
In the third quarter of 2018, the effective income tax rate was 23.6% and the operating effective income tax rate was 24.5%. The rates differ due to an adjustment made during the quarter of $1.0 million related to the transition impact of Tax Reform that has been excluded from the operating effective income tax rate. The full year 2018 operating effective income tax rate is expected to be 23.6%.

Capital
Primerica is on track to complete its share buyback plan for 2018. Repurchases were $33.5 million or approximately 300,000 shares of Primerica's common stock outstanding in the third quarter of 2018 for a total of $167.3 million or about 1.7 million shares through September 30, 2018. Primerica's Board of Directors has approved payment of a quarterly dividend of $0.25 per share that will be payable on December 14, 2018, to stockholders of record as of November 20, 2018.
Primerica Life Insurance Company's statutory risk-based capital (RBC) was estimated to be approximately 450% as of September 30, 2018.

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, adjusted operating revenues, adjusted operating income before income taxes, net adjusted 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 (IPO) 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, net adjusted operating income, and diluted adjusted operating earnings per share exclude the impact of realized investment gains (losses)1 and fair value mark-to-market (MTM) investment adjustments2, including other-than-temporary impairments (OTTI), for all periods presented. We exclude realized investment gains (losses) 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. In 2018, we excluded from net adjusted operating income and diluted adjusted operating earnings per share the one-time transition impact of changes to provisional amounts recognized from Tax Reform in order to present meaningful and useful period-over-period comparisons that are not distorted by the historic tax law change. 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.

The 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 results as reported under GAAP. Reconciliations of GAAP to non-GAAP financial measures are attached to this release.
____________________
1 Beginning in the first quarter of 2018, MTM adjustments on investments held in equity securities are recognized in total revenues measured in accordance with GAAP as realized investment gains (losses) due to the adoption of Accounting Standards Update No. 2016-01. Accordingly, we excluded the impact of MTM adjustments on investments held in equity securities from adjusted operating revenues and other non-GAAP financial measures.
2 Beginning in the first quarter of 2018, the MTM adjustment on a deposit asset held in support of a 10% coinsurance agreement (the 10% deposit asset MTM) recognized under the deposit method of accounting for GAAP has been excluded from adjusted operating revenues and other non-GAAP financial measures. Prior year non-GAAP financial results have not been recast as the 10% deposit asset MTM in the prior year was not material.

Earnings Webcast Information
Primerica will hold a webcast Wednesday, November 7, 2018 at 10:00 am EDT, to discuss third 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; changes to the independent contractor status of our sales representatives; our or our sales representatives' violation of or non-compliance with laws and regulations or the failure to protect the confidentiality of client information; differences between our actual experience and our expectations regarding mortality, persistency, expenses and interests rates as reflected in the pricing for our insurance policies; the occurrence of a catastrophic event that causes a large number of premature deaths of our insureds; changes in federal and state legislation, including other legislation or regulation that affects our insurance and investment product businesses, such as the DOL's rule defining who is a "fiduciary" of a qualified retirement plan as a result of giving investment advice; 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; the effects of credit deterioration and interest rate fluctuations on our invested asset portfolio; incorrectly valuing our investments; inadequate or unaffordable reinsurance or the failure of our reinsurers to perform their obligations; the failure of, or legal challenges to, the support tools we provide to our sales force; heightened standards of conduct or more stringent licensing requirements for our sales representatives; inadequate policies and procedures regarding suitability review of client transactions; the failure of our investment products to remain competitive with other investment options or the change to investment and savings products offered by key providers in a way that is not beneficial to our business; fluctuations in the performance of client assets under management; the inability of our subsidiaries to pay dividends or make distributions; our inability to generate and maintain a sufficient amount of working capital; our non-compliance with the covenants of our senior unsecured debt; legal and regulatory investigations and actions concerning us or our sales representatives; the loss of key personnel; the failure of our information technology systems, breach of our information security or failure of our business continuity plan; and fluctuations in 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, provides financial services to middle income households in North America. Primerica representatives educate their 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 the Company underwrites, and mutual funds, annuities and other financial products, which are distributed primarily on behalf of third parties. Primerica insured approximately 5 million lives and have over 2 million client investment accounts at December 31, 2017. 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".


PRIMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets

	(Unaudited)
	September 30, 2018					December 31, 2017
	(In thousands)
Assets
Investments:
Fixed-maturity securities available-for-sale, at fair value	$	2,010,900				$	1,927,842
Fixed-maturity security-held-to-maturity, at amortized cost		891,860					737,150
Equity securities available-for-sale, at fair value		-					41,107
Equity securities, at fair value		39,317					-
Trading securities, at fair value		15,955					6,228
Policy loans		30,902					32,816
Total investments		2,988,934					2,745,143
Cash and cash equivalents		225,378					279,962
Accrued investment income		18,202					16,665
Reinsurance recoverables		4,196,021					4,205,173
Deferred policy acquisition costs, net		2,107,814					1,951,892
Agent balances, due premiums and other receivables		295,885					229,522
Intangible assets, net		48,961					51,513
Income taxes		53,440					48,614
Other assets		352,897					359,347
Separate account assets		2,419,997					2,572,872
Total assets	$	12,707,529				$	12,460,703

Liabilities and Stockholders' Equity
Liabilities:
Future policy benefits	$	6,132,750				$	5,954,524
Unearned premiums		439					486
Policy claims and other benefits payable		287,640					307,401
Other policyholders' funds		394,046					377,998
Notes payable		373,567					373,288
Surplus note		891,139					736,381
Income taxes		182,240					177,468
Other liabilities		511,623					451,398
Payable under securities lending		70,632					89,786
Separate account liabilities		2,419,997					2,572,872
Total liabilities		11,264,073					11,041,602

Stockholders' equity:
Common stock		430					443
Paid-in capital		-					-
Retained earnings		1,452,841					1,375,090
Accumulated other comprehensive income (loss), net of income tax		(9,815		)			43,568
Total stockholders' equity		1,443,456					1,419,101
Total liabilities and stockholders' equity	$	12,707,529				$	12,460,703


PRIMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)

	Three months ended September 30,
	2018				2017
	(In thousands, except per-share amounts)
Revenues:
Direct premiums	$	670,222			$	646,079
Ceded premiums		(391,175	)			(397,641	)
Net premiums		279,047				248,438
Commissions and fees		170,879				144,627
Net investment income		20,622				19,922
Realized investment gains (losses), including OTTI		(126	)			22
Other, net		14,359				14,291
Total revenues		484,781				427,300

Benefits and expenses:
Benefits and claims		118,787				105,864
Amortization of deferred policy acquisition costs		59,534				53,384
Sales commissions		84,588				72,022
Insurance expenses		41,925				37,637
Insurance commissions		6,584				5,593
Interest expense		7,216				7,073
Other operating expenses		54,712				45,527
Total benefits and expenses		373,346				327,100
Income before income taxes		111,435				100,200
Income taxes		26,296				33,565
Net income	$	85,139			$	66,635

Earnings per share:
Basic earnings per share	$	1.95			$	1.46
Diluted earnings per share	$	1.94			$	1.46

Weighted-average shares used in computing earnings per share:
Basic		43,452				45,318
Diluted		43,589				45,408


PRIMERICA, INC. AND SUBSIDIARIES
Consolidated Adjusted Operating Results Reconciliation
(Unaudited – in thousands, except per share amounts)

	Three months ended September 30,
	2018			2017			% Change
Total revenues	$	484,781		$	427,300		13	%
Less: Realized investment gains (losses), including OTTI		(126	)		22
Less: 10% deposit asset MTM included in net investment income (NII) (2)		(297	)		-
Adjusted operating revenues	$	485,204		$	427,278		14	%

Income before income taxes	$	111,435		$	100,200		11	%
Less: Realized investment gains (losses), including OTTI		(126	)		22
Less: 10% deposit asset MTM included in NII (2)		(297	)		-
Adjusted operating income before income taxes	$	111,858		$	100,178		12	%

Net income	$	85,139		$	66,635		28	%
Less: Realized investment gains (losses), including OTTI		(126	)		22
Less: 10% deposit asset MTM included in NII (2)		(297	)		-
Less: Tax impact of preceding items		104			(8	)
Less: Transition impact of tax reform		969			-
Net adjusted operating income	$	84,489		$	66,621		27	%

Diluted earnings per share (1)	$	1.94		$	1.46		33	%
Less: Net after-tax impact of operating adjustments		0.01			-
Diluted adjusted operating earnings per share (1)	$	1.93		$	1.46		32	%

(1) Percentage change in earnings per share is calculated prior to rounding per share amounts.
(2) The 10% deposit asset MTM during the three months ended September 30, 2017 was not material, therefore, non-GAAP financial measures for 2017 have not been recast for this adjustment.


TERM LIFE INSURANCE SEGMENT
Adjusted Premiums Reconciliation
(Unaudited – in thousands)

	Three months ended September 30,
	2018			2017
Direct premiums	$	663,183		$	638,830
Less: Premiums ceded to IPO coinsurers		284,742			304,580
Adjusted direct premiums	$	378,441		$	334,250

Ceded premiums	$	(389,332	)	$	(395,772	)
Less: Premiums ceded to IPO coinsurers		(284,742	)		(304,580	)
Other ceded premiums	$	(104,590	)	$	(91,192	)

Net premiums	$	273,851		$	243,058


CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT
Adjusted Operating Results Reconciliation
(Unaudited – in thousands)

	Three months ended September 30,
	2018			2017
Total revenues	$	31,540		$	31,002
Less: Realized investment gains (losses), including OTTI		(126	)		22
Less: 10% deposit asset MTM included in NII		(297	)		-
Adjusted operating revenues	$	31,963		$	30,980

Loss before income taxes	$	(7,954	)	$	(5,393	)
Less: Realized investment gains (losses), including OTTI		(126	)		22
Less: 10% deposit asset MTM included in NII		(297	)		-
Adjusted operating loss before income taxes	$	(7,531	)	$	(5,415	)


PRIMERICA, INC. AND SUBSIDIARIES
Adjusted Stockholders' Equity Reconciliation
(Unaudited – in thousands)

	September 30, 2018			December 31, 2017
Stockholders' equity	$	1,443,456		$	1,419,101
Less: Unrealized net investment gains (losses) recorded in stockholders' equity, net of income tax		(4,515	)		39,573
Adjusted stockholders' equity	$	1,447,971		$	1,379,528

654705

by James Lake

The Primerica Foundation Awards Miami Bridge Youth & Family Services with $20,000 Grant

Business Wire, August 22, 2018

Miami Bridge Youth & Family Services has received a $20,000 Primerica Foundation grant in support of its non-residential, family crisis intervention counseling program.

“Our community-based programs, like First Stop for Families, are designed to open lines of communication in times of crisis and stress, we help families develop new solutions and approaches to overcome conflicts.”

Miami Bridge’s First Stop for Families Program works with approximately 400 youth and their families each year. Funded by the Florida Network Youth & Family Services, Inc., through the State of Florida Department of Juvenile Justice, along with the United Way and local foundations, this program is designed to provide services to help families stay together. It diverts children from having to utilize emergency shelter services by providing short-term family crisis intervention assistance. The organization’s seasoned social work staff understands the frustrations that drive wedges between children and families.

“Miami Bridge is far more than just an emergency shelter,” stated Dorcas Wilcox, CEO of Miami Bridge Youth & Family Services, Inc. “Our community-based programs, like First Stop for Families, are designed to open lines of communication in times of crisis and stress, we help families develop new solutions and approaches to overcome conflicts.”

The Primerica Foundation is the charitable arm of Primerica, Inc., the Georgia-based financial services company. The Primerica Foundation gives funding support to programs that meet critical needs of families, and in turn, build stronger communities. Since its establishment in 2010, the Foundation has positively impacted the lives of tens of thousands of individuals.

“Primerica is deeply committed to improving the communities in which we live and work,” said Glenn Williams, Primerica’s CEO. “Through targeted charitable giving, our Foundation helps strengthen and support families in their time of need. We applaud the exceptional work done by Miami Bridge and are proud to support this worthwhile organization.”

Miami Bridge’s non-residential/community behavioral services help local families, at-risk LGBTQ youth, and even truant students in the Miami-Dade County Public Schools system by making free counseling, case management and mentoring services readily available to them. Annually, Miami Bridge shelters more than 500 children and teens, providing over 10,000 care days for those individuals, as well as counseling to more than 550 families with children ages 6-17. The nonprofit’s efforts have resulted in 75 percent of youth reporting self-improvement or exhibiting a decrease in risky behaviors.

About Miami Bridge Youth & Family Services, Inc.
Miami Bridge was established in 1985 and serves as Miami-Dade County’s only 24-hour emergency shelter for children and teens in crisis ages 10-17. For more than 33 years, the non-profit organization has worked to rescue youth in the community from lives of victimization and crime by providing refuge, protection and specialized care in a nurturing, stable environment. Annually, Miami Bridge shelters more than 500 children and teens, providing over 10,000 care days for those individuals, as well as counseling to more than 550 families with children ages 6-17. For additional information, please visit www.miamibridge.org.

by James Lake

Primerica Reports Fourth Quarter 2017 Results, 2018 Share Repurchase Authorization and Fourth Quarter Stockholder Dividend

Press Release, February 7, 2018

8% increase in life insurance licensed representatives to over 126,000

16% growth in Term Life net premiums

14% increase in Investment and Savings Products (ISP) sales

Net earnings per diluted share (EPS) of $3.72 and net income return on stockholders' equity (ROE) of 49.9%, both reflecting the transition effect of the Tax Cuts and Jobs Act of 2017

Adjusted operating EPS increased 34% to $1.60 and adjusted net operating income return on adjusted stockholders' equity (ROAE) increased to 22.1%

~ $200 million common stock repurchases expected for 2018

25% increase in dividends to $0.25 per share, payable March 16, 2018

Primerica, Inc. (NYSE: PRI) today announced financial results for the quarter ended December 31, 2017. In the fourth quarter, total revenues increased 12% and adjusted operating revenues increased 13% to $442.9 million and $441.9 million, respectively. Net income grew to $168.4 million in the fourth quarter, with EPS and ROE reaching $3.72 and 49.9%, respectively. Results reflect a net benefit of $95.5 million to recognize the transition effect of the Tax Cuts and Jobs Act of 2017 (Tax Reform) during the quarter¹. Given the one-time and unusual nature of this benefit, Primerica has removed its impact from operating results. Adjusted net operating income grew 29% to $72.3 million compared with the fourth quarter of 2016 and adjusted operating EPS increased 34% to $1.60. ROAE expanded to 22.1% in the current period versus 19.2% in the prior year period.

_________________________

¹ Amount represents a preliminary estimate of the transition effect of revaluing deferred tax assets and liabilities to a 21% tax rate and the inclusion of tax on mandatory deemed repatriated foreign earnings expected to be recognized in the fourth quarter of 2017 due to the enactment of Tax Reform, which was signed into law on December 22, 2017. The final transition impact of Tax Reform may change from this preliminary estimate, possibly materially, when assumptions are refined and interpretations of the legislation are finalized including the Company's application of any additional guidance that may be issued by the U.S. Department of the Treasury or the Internal Revenue Service.

For the full year 2017, total revenues and adjusted operating revenues both increased 11% to $1.69 billion. Net income, EPS and ROE increased to $350.3 million, $7.61 and 27.4%, respectively, inclusive of the transition effect of Tax Reform. Adjusted net operating income grew 17% year-over-year to $253.9 million. Earnings growth and share repurchases throughout the year drove a 22% increase in adjusted operating EPS to $5.52 and ROAE expanded to 20.6% in 2017. Results reflect solid Term Life and ISP performance including 14% growth in net premiums, 15% growth in average ISP client asset values and 11% growth in total ISP sales year-over-year. While fluctuations in persistency and claims experience impacted quarterly results in 2017, the full-year Term Life margin remained consistent with 2016. Positive market conditions, growth in the number of fee-generating positions and the launch of the new Lifetime Investments Platform positively impacted ISP results in 2017. Insurance and other operating expenses increased 7% year-over-year primarily reflecting higher growth- and employee-related costs as well as additional spending on mobile technology initiatives. In December, Primerica Life Insurance Company changed its state of domicile to Tennessee, which lowered the retaliatory premium taxes and representative licensing fees incurred by the Company in 2017 and going forward.

Glenn Williams, Chief Executive Officer, said, "During 2017, we successfully expanded distribution, grew our sales volumes and substantially increased EPS and ROE. Our life licensed sales force grew to over 126,000 representatives at year-end. Life insurance productivity remained at the top of the historical range throughout the year which drove an increase in life insurance policies issued at a rate that surpassed the life insurance industry's results. We also delivered solid growth in Investment and Savings Products sales and client asset values in 2017. As we head into a new year, we plan to drive further growth by continuing to expand distribution, execute strategic initiatives and by actively deploying capital, including around $200 million of common stock repurchases expected in 2018. We are well-positioned to deliver long-term value for all of our stakeholders."


Fourth Quarter Distribution & Segment Results

Distribution Results
	Q4 2017			Q4 2016			% Change		Q3 2017			% Change
Life Licensed Sales Force ⁽¹⁾		126,121			116,827		8	%		124,436		1	%
Recruits		64,401			60,326		7	%		90,210		(29	)%
New Life-Licensed Representatives		11,902			11,148		7	%		12,783		(7	)%
Life Insurance Policies Issued		80,068			79,110		1	%		78,056		3	%
Life Productivity⁽²⁾		0.21			0.23		*			0.21		*
ISP Product Sales ($ billions)	$	1.60		$	1.41		14	%	$	1.43		12	%
Average Client Asset Values ($ billions)	$	59.91		$	51.45		16	%	$	57.66		4	%
⁽¹⁾ End of period
⁽²⁾ Life productivity equals policies issued divided by the average number of life insurance licensed representatives per month
* Not calculated

Segment Results
	Q4 2017			Q4 2016			% Change		Q3 2017			% Change
	($ in thousands)
Adjusted Operating Revenues: ⁽¹⁾
Term Life Insurance	$	263,031		$	227,128		16	%	$	256,240		3	%
Investment and Savings Products		148,509			137,016		8	%		140,058		6	%
Corporate and Other Distributed Products		30,323			28,255		7	%		30,980		(2	)%
Total adjusted operating revenues ⁽¹⁾	$	441,863		$	392,399		13	%	$	427,278		3	%

Adjusted Operating Income (loss) before income taxes:⁽¹⁾
Term Life Insurance	$	68,237		$	51,127		33	%	$	66,543		3	%
Investment and Savings Products		46,985			40,840		15	%		39,050		20	%
Corporate and Other Distributed Products		(8,210	)		(6,368	)	29	%		(5,415	)	52	%
Total adjusted operating income before income taxes ⁽¹⁾	$	107,012		$	85,599		25	%	$	100,178		7	%
⁽¹⁾ See the Non-GAAP Financial Measures section and the segment Operating Results Reconciliations at the end of this release for additional information.

Life Insurance Licensed Sales Force. Strong recruiting and licensing trends in recent quarters drove growth in the life insurance licensed sales force to over 126,000 representatives at the end of the fourth quarter. Both recruiting of new representatives and new life insurance licenses increased 7% from the year ago quarter. On a sequential quarter basis, recruiting and new life insurance licenses decreased due to the fourth quarter being seasonally slower and the third quarter benefitting from Independent Business Applications fees being waived for new recruits in hurricane-affected areas.

Term Life Insurance. In the fourth quarter of 2017, term life insurance policies issued increased 1% over the strong results in the fourth quarter of 2016. Productivity remained at the high end of the historical productivity range at 0.21 policies per life insurance licensed representative per month, albeit lower than the 0.23 in the prior year quarter. Term Life adjusted operating revenues increased 16% to $263.0 million compared with the year ago period. This was driven by a 16% increase in net premiums from higher levels of issued policies in recent years and the growth in the in force business not subject to IPO-related coinsurance agreements. Adjusted operating income before income taxes grew 33% to $68.2 million year-over-year.

Persistency for the fourth quarter was in-line with expectations, whereas weaker persistency during the prior year quarter increased DAC amortization by approximately $3 million in that period. Claims were consistent with historical trends and the prior year period. In December, Primerica Life Insurance Company changed its state of domicile to Tennessee, which reduced the amount of retaliatory premium taxes and representative licensing fees the company incurred in 2017. The $3.3 million full-year benefit of this change was recognized in the fourth quarter of 2017, increasing adjusted operating EPS by $0.05 for the period. This benefit will be recognized on a quarterly basis going forward.

Investment and Savings Products (ISP). In the fourth quarter, ISP revenues increased 8% to $148.5 million and income before income taxes grew 15% to $47.0 million compared with the year ago period. Sales-based revenues grew 2% whereas product sales grew 14% year-over-year. The trend of larger size trades shifting from annuities to mutual funds continued, dampening sales based revenue growth. Managed account sales were up 178% following the launch of the new Lifetime Investments Platform earlier in the year. Managed accounts do not generate sales-based revenues, but provide for ongoing asset-based revenues that are higher than those for retail mutual funds or annuities. Asset-based revenues grew 18% year-over-year driven by a 17% increase in ending client asset values to $61.2 billion and positive net flows of $297 million for the period. Account-based revenues declined 8% year-over-year largely related to the full-year benefit of a change made in the account-based fee structure in the fourth quarter of 2016.

During the fourth quarter, Canadian segregated fund DAC assumptions were updated based on emerging redemption experience. The assumptions are typically updated during the fourth quarter and the $2 million impact recognized this year was consistent with the prior year adjustment. The combination of the assumption adjustment and favorable market performance resulted in the reversal of DAC amortization during the quarter.

Corporate and Other Distributed Products (C&O). C&O adjusted operating revenues were $30.3 million and adjusted operating losses before income taxes were $8.2 million in the fourth quarter of 2017. The increase in net investment income reflects a larger invested asset portfolio partially offset by the continued impact of low investment yields. Benefits and claims for our New York subsidiary's closed block of life insurance products were approximately $1 million higher than the prior year reflecting normal volatility. Year-over-year other operating expenses in the segment increased largely due to a segment allocation change in the prior year period.

Taxes and the Impact of Tax Reform
The effective income tax rate for the fourth quarter of 2017 excluding the impact of Tax Reform, was 32.5% compared to 34.7% in the prior year period. The lower rate partially reflects excess tax benefits of approximately $0.9 million for the difference between the stock price of sales force equity awards at the time of grant and when the sales restrictions lapse whereas in the prior year period the excess tax benefits were recorded in additional paid-in-capital. The effective tax rate also benefitted from a higher proportion of Canadian earnings in the fourth quarter, which were subject to the lower Canadian tax rate.

As a result of Tax Reform, the Company's U.S. net deferred tax liability was revalued using a 21% tax rate in the fourth quarter of 2017 and taxes were increased to include mandatory deemed repatriated earnings from the Company's Canadian subsidiary. The net effect of these transition adjustments was a $95.5 million reduction to income tax expense during the quarter. As previously noted, Primerica has excluded this benefit from adjusted net operating income. Given the mix of business between the U.S. and Canada, Primerica's annual effective tax rate is expected to be in the 22-23% range for 2018. The Tax Cuts and Jobs Act includes two life insurance-specific provisions that do not impact the effective tax rate, but will reduce the cash tax benefit of a lower corporate rate. The Company's overall free cash flow is not expected to materially change due to Tax Reform.

Capital
Primerica Life Insurance Company's statutory risk-based capital (RBC) ratio was estimated to be approximately 450% as of December 31, 2017. If the NAIC adjusts the RBC calculation to reflect the new corporate tax rate, the Company's RBC ratio will decrease by approximately 70-80 basis points.

Primerica has a strong balance sheet and continues to be well-capitalized to meet future needs. In light of Primerica's strong capital generation, the Company's Board of Directors (Board) has authorized the repurchase of up to $275 million of its common stock through June 30, 2019 (including $50 million that remained under the previous share repurchase program). Primerica plans to repurchase approximately $200 million of its common stock in 2018. The Board has also approved a 25% increase in stockholder dividends to $0.25 per share payable on March 16, 2018 to stockholders of record as of February 15, 2018.

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, adjusted operating revenues, adjusted operating income before income taxes, net adjusted 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 (IPO) 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, net adjusted operating income, and diluted adjusted operating earnings per share exclude the impact of realized investment gains and losses, including other-than-temporary impairments (OTTI), for all periods presented. We exclude realized investment gains and losses in measuring adjusted operating revenues to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains and losses and other factors prior to an invested asset's maturity that are not directly associated with the Company's insurance operations. In 2017, we excluded from net adjusted operating income and diluted operating earnings per share the one-time transition impact from the Tax Cuts and Jobs Act of 2017 recognized in the fourth quarter of 2017 to present meaningful and useful period-over-period comparisons that could be distorted by this historically infrequent tax law change. Adjusted stockholders' equity excludes the impact of net unrealized investment gains and losses recorded in other comprehensive income (loss) for all periods presented. We exclude unrealized investment gains and losses in measuring adjusted stockholders' equity as unrealized gains and losses from the Company's invested assets 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 invested asset matures or is sold.

Earnings Webcast Information
Primerica will hold a webcast Thursday, February 8, 2018 at 11:00 am EST, to discuss fourth 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.

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 third 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 approximately 5 million lives and have over 2 million client investment accounts at December 31, 2017. 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."


PRIMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)

	December 31, 2017		December 31, 2016
	(In thousands)
Assets
Investments:
Fixed-maturity securities available-for-sale, at fair value	$	1,927,842	$	1,792,438
Fixed-maturity securities-held-to-maturity, at amortized cost		737,150		503,230
Equity securities available-for-sale, at fair value		41,107		44,894
Trading securities, at fair value		6,228		7,383
Policy loans		32,816		30,916
Total investments		2,745,143		2,378,861
Cash and cash equivalents		279,962		211,976
Accrued investment income		16,665		16,520
Due from reinsurers		4,205,173		4,193,562
Deferred policy acquisition costs, net		1,951,892		1,713,065
Agent balances, due premiums and other receivables		229,522		210,448
Intangible assets, net		51,513		54,915
Deferred income taxes		48,614		37,369
Other assets		359,347		334,274
Separate account assets		2,572,872		2,287,953
Total assets	$	12,460,703	$	11,438,943

Liabilities and Stockholders' Equity
Liabilities:
Future policy benefits	$	5,954,524	$	5,673,890
Unearned premiums		486		527
Policy claims and other benefits payable		307,401		268,136
Other policyholders' funds		377,998		363,038
Notes payable		373,288		372,919
Surplus note		736,381		502,491
Current income tax payable		24,896		26,365
Deferred income taxes		152,572		198,641
Other liabilities		451,398		449,963
Payable under securities lending		89,786		73,646
Separate account liabilities		2,572,872		2,287,953
Total liabilities		11,041,602		10,217,569

Stockholders' equity:
Common stock		443		457
Paid-in capital		-		52,468
Retained earnings		1,375,090		1,138,851
Accumulated other comprehensive income, net of income tax		43,568		29,598
Total stockholders' equity		1,419,101		1,221,374
Total liabilities and stockholders' equity	$	12,460,703	$	11,438,943


PRIMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)

	Three months ended December 31,
	2017			2016
	(In thousands, except per-share amounts)
Revenues:
Direct premiums	$	650,906		$	618,362
Ceded premiums		(397,318	)		(398,867	)
Net premiums		253,588			219,495
Commissions and fees		154,105			141,681
Net investment income		19,459			17,999
Realized investment gains (losses), including OTTI		1,079			1,465
Other, net		14,711			13,224
Total revenues		442,942			393,864

Benefits and expenses:
Benefits and claims		108,259			94,672
Amortization of deferred policy acquisition costs		56,304			53,305
Sales commissions		76,823			69,326
Insurance expenses		35,103			33,476
Insurance commissions		5,459			4,456
Interest expense		7,144			7,157
Other operating expenses		45,761			44,408
Total benefits and expenses		334,853			306,800
Income before income taxes		108,089			87,064
Income taxes		(60,354	)		30,191
Net income	$	168,443		$	56,873

Earnings per share:
Basic earnings per share	$	3.73		$	1.21
Diluted earnings per share	$	3.72		$	1.21

Shares used in computing earnings per share:
Basic		44,809			46,444
Diluted		44,917			46,495

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


PRIMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)

	Year ended December 31,
	2017			2016
	(In thousands, except per-share amounts)
Revenues:
Direct premiums	$	2,562,109		$	2,444,268
Ceded premiums		(1,600,771	)		(1,600,559	)
Net premiums		961,338			843,709
Commissions and fees		591,317			541,686
Net investment income		79,017			79,025
Realized investment gains (losses), including OTTI		1,339			4,088
Other, net		56,091			50,576
Total revenues		1,689,102			1,519,084

Benefits and expenses:
Benefits and claims		416,019			367,655
Amortization of deferred policy acquisition costs		209,399			180,582
Sales commissions		297,988			272,815
Insurance expenses		147,280			132,348
Insurance commissions		21,108			17,783
Interest expense		28,488			28,691
Other operating expenses		189,300			181,615
Total benefits and expenses		1,309,582			1,181,489
Income before income taxes		379,520			337,595
Income taxes		29,265			118,181
Net income	$	350,255		$	219,414

Earnings per share:
Basic earnings per share	$	7.63		$	4.59
Diluted earnings per share	$	7.61		$	4.59

Shares used in computing earnings per share:
Basic		45,598			47,411
Diluted		45,689			47,453

⁽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 December 31,
	2017			2016			% Change
Total revenues	$	442,942		$	393,864		12	%
Less: Realized investment gains (losses), including OTTI		1,079			1,465
Adjusted operating revenues	$	441,863		$	392,399		13	%

Income before income taxes	$	108,089		$	87,064		24	%
Less: Realized investment gains (losses), including OTTI		1,079			1,465
Adjusted operating income before income taxes	$	107,010		$	85,599		25	%

Net income	$	168,443		$	56,873		196	%
Less: Realized investment gains (losses), including OTTI		1,079			1,465
Less: Tax impact of reconciling items		(350	)		(509	)
Less: Transition impact of tax reform		95,457			-
Net adjusted operating income	$	72,257		$	55,917		29	%

Diluted earnings per share ⁽¹⁾	$	3.72		$	1.21		nm
Less: Net after-tax impact of operating adjustments		2.12			0.02
Diluted adjusted operating earnings per share ⁽¹⁾	$	1.60		$	1.19		34	%
_________________________
⁽¹⁾ Percentage change in earnings per share is calculated prior to rounding per share amounts.
nm – Not meaningful


PRIMERICA, INC. AND SUBSIDIARIES
Consolidated Adjusted Operating Results Reconciliation
(Unaudited – in thousands, except per share amounts)

	Year ended December 31,
	2017			2016			% Change
Total revenues	$	1,689,102		$	1,519,084		11	%
Less: Realized investment gains (losses), including OTTI		1,339			4,088
Adjusted operating revenues	$	1,687,763		$	1,514,996		11	%

Income before income taxes	$	379,520		$	337,595		12	%
Less: Realized investment gains (losses), including OTTI		1,339			4,088
Adjusted operating income before income taxes	$	378,181		$	333,507		13	%

Net income	$	350,255		$	219,414		60	%
Less: Realized investment gains (losses), including OTTI		1,339			4,088
Less: Tax impact of reconciling items		(434	)		(1,436	)
Less: Transition impact of tax reform		95,457			-
Net adjusted operating income	$	253,893		$	216,762		17	%

Diluted earnings per share ⁽¹⁾	$	7.61		$	4.59		66	%
Less: Net after-tax impact of operating adjustments		2.09			0.06
Diluted adjusted operating earnings per share ⁽¹⁾	$	5.52		$	4.53		22	%

⁽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 December 31,
	2017			2016
Direct premiums	$	644,373		$	611,583
Less: Premiums ceded to IPO coinsurers		300,144			315,955
Adjusted direct premiums	$	344,229		$	295,628

Ceded premiums	$	(394,987	)	$	(396,157	)
Less: Premiums ceded to IPO coinsurers		(300,144	)		(315,955	)
Other ceded premiums	$	(94,843	)	$	(80,202	)

Net premiums	$	249,386		$	215,426


CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT
Adjusted Operating Results Reconciliation
(Unaudited – in thousands)

	Three months ended December 31,
	2017			2016
Total revenues	$	31,402		$	29,720
Less: Realized investment gains (losses), including OTTI		1,079			1,465
Adjusted operating revenues	$	30,323		$	28,255

Loss before income taxes	$	(7,131	)	$	(4,903	)
Less: Realized investment gains (losses), including OTTI		1,079			1,465
Adjusted operating loss before income taxes	$	(8,210	)	$	(6,368	)


PRIMERICA, INC. AND SUBSIDIARIES
Adjusted Stockholders' Equity Reconciliation
(Unaudited – in thousands)

	December 31, 2017			December 31, 2016
Stockholders' equity	$	1,419,101		$	1,221,374
Less: Unrealized net investment gains recorded in stockholders' equity, net of income tax		39,573			42,791
Adjusted stockholders' equity	$	1,379,528		$	1,178,583

426291

by James Lake

James Lake

Second Quarter Distribution & Segment Results

Distribution Results

Segment Results

Contacts

A new poll reveals why that’s a problem

Not making more than the minimum payment on credit cards

Not having more than $50,000 in life insurance coverage

Not having money Invested in accounts outside of traditional savings

Not having enough savings for at least three months of expenses

Not saving enough for retirement