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Section 1: 8-K (PRIMERICA, INC. 8-K)


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT PURSUANT
TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
 
 
DATE OF REPORT (Date of earliest event reported):      November 9, 2016
 
 
PRIMERICA, INC.
(Exact Name of Registrant as Specified in Its Charter)
 

Delaware
 

001-34680
 

27-1204330
         
(State or Other Jurisdiction of
Incorporation)
 
(Commission File Number)
 
(I.R.S. Employer
Identification Number)
 
 
 
 
1 Primerica Parkway
Duluth, Georgia 30099
 
 
   
(Address of Principal Executive Offices)
   
 
 
(770) 381-1000
(Registrant’s telephone number, including area code)
 
(Former name or former address, if changed since last report)
 
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
 
☐ 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 
 
 
☐ 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
☐ 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
☐ 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 
 
Item 2.02
Results of Operations and Financial Condition.
 
 
On November 9, 2016, Primerica, Inc. (the “Company”) announced its results of operations for the quarter ended September 30, 2016. A copy of the press release is attached hereto as Exhibit 99.1.
 
The information provided pursuant to this Item 2.02, including Exhibit 99.1 in Item 9.01, is “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section, and shall not be incorporated by reference in any filing made by the Company under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), except to the extent expressly set forth by specific reference in any such filings.

Use of Non-GAAP Financial Measures

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company presents certain non-GAAP financial measures.  Specifically, the Company presents adjusted direct premiums, other ceded premiums, operating revenues, operating income before income taxes, net operating income, adjusted stockholders’ equity and diluted operating earnings per share.  Adjusted direct premiums and other ceded premiums are net of amounts ceded under coinsurance transactions that were executed concurrent with our initial public offering (the “IPO coinsurance transactions”) for all periods presented. We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate with this block of business. Operating revenues, operating income before income taxes, net operating income and diluted operating earnings per share exclude the impact of realized investment gains and losses for all periods presented. We exclude realized investment gains and losses in measuring 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.  Adjusted stockholders’ equity excludes the impact of net unrealized investment gains and losses recorded in accumulated 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.

Our definitions of these non-GAAP financial measures may differ from the definitions of similar measures used by other companies.  Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance.  Furthermore, management believes that these non-GAAP financial measures may provide users with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of our core ongoing business.  These measures have limitations, and investors should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP.
 
 
 
2

 
 
Reconciliations of non-GAAP to GAAP financial measures are included as attachments to the press release which has been posted in the “Investor Relations” section of our website at http://investors.primerica.com.
 
 
Item 7.01
Regulation FD Disclosure.

On November 9, 2016, the Company posted to the “Investor Relations” section of its website certain supplemental financial information relating to the quarter ended September 30, 2016.  A copy of the supplemental financial information is attached hereto as Exhibit 99.2.
 
The information provided pursuant to this Item 7.01, including Exhibit 99.2 in Item 9.01, is “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of such section, and shall not be incorporated by reference in any filing made by the Company under the Exchange Act or the Securities Act, except to the extent expressly set forth by specific reference in any such filings.
 
 
Item 9.01.
Financial Statements and Exhibits.
 
 
(d) Exhibits.
 
 
 
99.1
Press Release dated November 9, 2016 – Primerica Reports Third Quarter 2016 Results
   
99.2
Primerica, Inc. Supplemental Financial Information – Third Quarter 2016
 

 
3

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Date:  November 9, 2016
 
PRIMERICA, INC.
 
 
 
 
 
 
 
 
 /s/ Alison S. Rand
 
 
 
Alison S. Rand
 
 
Executive Vice President and Chief
Financial Officer

4

EXHIBIT INDEX


Exhibit No.
Description
 
 
99.1
Press Release dated November 9, 2016 – Primerica Reports Third Quarter 2016 Results
   
99.2
Primerica, Inc. Supplemental Financial Information – Third Quarter 2016

5
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Section 2: EX-99.1 (PRIMERICA, INC. 8-K)

Exhibit 99.1
 
 
 
PRIMERICA REPORTS THIRD QUARTER 2016 RESULTS

13% growth in life insurance policies issued

10% increase in life insurance licensed representatives to 115,345

6% increase in average client asset values to a record of $50.7 billion

25% growth in diluted EPS and diluted operating EPS to $1.22

19.1% net income return on stockholders’ equity (ROE) and 20.3% net operating income return on adjusted stockholders’ equity (ROAE)

Duluth, GA, November 9, 2016 – Primerica, Inc. (NYSE: PRI) today announced financial results for the quarter ended September 30, 2016.  In the third quarter, total revenues and operating revenues both increased 8% to $383.6 million and $383.7 million, respectively, and net income grew 18% (17% on an operating basis) to $58.0 million compared with the third quarter of 2015.   Net earnings per diluted share (EPS) and net operating earnings per diluted share both increased 25% to $1.22 compared with $0.98 in the third quarter of 2015, driven by earnings growth and ongoing share repurchases.  ROE expanded to 19.1% and operating ROAE expanded to 20.3% in the current period versus 16.8% and 17.7%, respectively, in the prior year period.

Third quarter results reflect the continued strength in the Term Life business with ongoing growth in policies issued.  Net premiums grew 12% year-over-year and claims experience was below historical levels.  Investment and Savings Products (ISP) performance improved reflecting higher average client asset values, partially offset by slightly lower ISP sales versus the prior year period.

Glenn Williams, Chief Executive Officer said, “Strong core performance combined with recent share repurchases drove 25% growth in EPS and a 230 basis point increase in ROE compared to the third quarter a year ago.  We delivered double-digit increases in the size of our life insurance licensed sales force and term life insurance policies issued year-over-year. Our sales force leadership, successful execution of building distribution and significant capital deployment position us to continue to deliver value for our stakeholders.”
 
1

Distribution & Segment Results
 
Distribution Results
 
     
Q3 2016
     
Q3 2015
   
%
Change
     
Q2 2016
   
%
Change
 
Life Licensed Sales Force (1)
   
115,345
     
104,702
     
10
%
   
112,365
     
3
%
Recruits
   
73,706
     
65,945
     
12
%
   
65,273
     
13
%
New Life-Licensed Representatives
   
11,739
     
11,160
     
5
%
   
12,171
     
(4
)%
Life Insurance Policies Issued
   
75,374
     
66,658
     
13
%
   
77,384
     
(3
)%
Life Productivity (2)
   
0.22
     
0.22
     
*
     
0.23
     
*
 
ISP Product Sales ($ billions)
 
$
1.34
   
$
1.37
     
(2
)%
 
$
1.47
     
(9
)%
Average Client Asset Values ($ billions)
 
$
50.68
   
$
47.96
     
6
%
 
$
48.94
     
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
 
     
Q3 2016
     
Q3 2015
   
% Change
     
Q2 2016
   
% Change
 
   
($ in thousands)
 
Operating Revenues: (1)
                                   
Term Life Insurance
 
$
222,598
   
$
197,204
     
13
%
 
$
210,559
     
6
%
Investment and Savings Products
   
130,080
     
128,597
     
1
%
   
132,608
     
(2
)%
Corporate and Other Distributed Products
   
30,983
     
30,167
     
3
%
   
32,387
     
(4
)%
Total operating revenues (1)
 
$
383,661
   
$
355,968
     
8
%
 
$
375,553
     
2
%
                                         
Operating Income (loss) before income taxes:(1)
                                       
Term Life Insurance
 
$
58,137
   
$
46,519
     
25
%
 
$
58,017
     
*
 
Investment and Savings Products
   
35,760
     
34,811
     
3
%
   
36,065
     
(1
)%
Corporate and Other Distributed Products
   
(5,425
     
(6,118
)
   
(11
)%
   
(5,642
)
   
(4
)%
Total operating income before income taxes (1)
 
$
88,472
   
$
75,212
     
18
%
 
$
88,440
     
*
 
 
(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. Strong recruiting and licensing trends in recent quarters drove 10% year-over-year growth in the life insurance licensed sales force to 115,345 representatives at the end of the third quarter.  Recruiting of new representatives increased 12% and new life insurance licenses grew 5% from the year ago period.  On a sequential quarter basis, recruiting increased 13% and new life insurance licenses declined 4% from the second quarter.

Term Life Insurance.  In the third quarter of 2016, term life insurance policies issued increased 13% year-over-year driven by the larger life insurance licensed sales force and productivity of 0.22 policies per life insurance licensed representative per month, which continues to be at the top end of the historical productivity range.  Term Life revenues increased 13% to $222.6 million compared with the year ago period driven by a 12% increase in net premiums from increased levels of issued policies in recent years and the growth in the in force business not subject to IPO-related coinsurance agreements.  Income before income taxes grew 25% to $58.1 million year-over-year.  Claims experience during the third quarter was approximately $3 million below historical levels and led to benefits and claims growing slower than net premiums.  Persistency experience was slightly lower versus the prior year period which also contributed to slower growth in benefits and claims, but led to higher growth in deferred acquisition costs (DAC) amortization relative to net premiums.  Insurance expenses grew year-over-year largely due to $2.3 million of higher technology spending to enhance our sales force support system’s mobile application and accommodate increased capacity.
2

Investment and Savings Products (ISP).  In the third quarter, ISP revenues increased 1% to $130.1 million and income before income taxes grew 3% to $35.8 million compared with the year ago period.  Results reflect a 2% year-over-year decline in product sales to $1.34 billion as U.S. retail mutual fund sales increased 9% and fixed indexed annuities sales increased 32% while variable annuity sales declined 22%, consistent with industry trends.  Average client asset values increased 6% to a record $50.7 billion and account-based revenue increased 4% versus the prior year period.  Positive Canadian market performance and lower segregated fund redemptions in the third quarter of 2016 led to a $0.8 million deceleration of DAC amortization in the period, and a year-over-year improvement of $1.7 million.  ISP expenses increased from the year ago period largely due to $1.7 million of implementation costs related to the Department of Labor’s (DOL) Fiduciary Rule in the third quarter.

Corporate and Other Distributed Products (C&O)The C&O segment operating revenues were $31.0 million, and operating losses before income taxes were $5.4 million in the third quarter of 2016.  Results were impacted by a modest increase in insurance and other expenses primarily reflecting higher employee-related expenses partially offset by a $1.5 million negotiated reduction in the interest expense on an IPO-related reinsurance agreement.  Net investment income increased $0.3 million as the prior year period was impacted by a negative mark-to-market on the deposit asset backing an IPO-related reinsurance agreement.  Net unrealized gains increased slightly to $110.4 million at quarter-end from $105.2 million at June 30, 2016.

Capital
Primerica repurchased $41.0 million or approximately 743,000 shares of its common stock in the third quarter and repurchased $131.5 million, or 2.7 million shares year-to-date through September.  Primerica Life Insurance Company’s statutory risk-based capital (RBC) ratio was estimated to be approximately 430% as of September 30, 2016.
3

Non-GAAP Financial Measures
We report financial results in accordance with U.S. generally accepted accounting principles (GAAP).  We also present adjusted direct premiums, other ceded premiums, operating revenues, operating income before income taxes, net operating income, adjusted stockholders’ equity and diluted operating earnings per shareAdjusted direct premiums and other ceded premiums are net of amounts ceded under coinsurance transactions that were executed concurrent with our initial public offering 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.  Operating revenues, operating income before income taxes, net operating income, and diluted operating earnings per share exclude the impact of realized investment gains and losses, including other-than-temporary impairments (OTTI), for all periods presented.  We exclude realized investment gains and losses in measuring 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.  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.

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 financial performance.  Furthermore, management believes that these non-GAAP financial measures may provide users with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of 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 non-GAAP to GAAP financial measures are attached to this release.

Earnings Webcast Information
Primerica will hold a webcast Thursday, November 10, 2016 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.
4

 
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 recently adopted 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.
 
5

 
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, 2015. Primerica stock is included in the S&P MidCap 400 and the Russell 2000 stock indices and is traded on The New York Stock Exchange under the symbol “PRI”.

Investor Contact:
Kathryn Kieser
470-564-7757
Email: investorrelations@primerica.com


Media Contact:
Keith Hancock
470-564-6328
Email: Keith.Hancock@Primerica.com
 
6

PRIMERICA, INC. AND SUBSIDIARIES
 
Condensed Consolidated Balance Sheets
 
             
             
   
September 30, 2016 (1)
   
December 31, 2015
 
   
(In thousands)
 
Assets
           
Investments:
           
Fixed maturity securities available for sale, at fair value
 
$
1,761,174
   
$
1,731,459
 
Fixed maturity securities held to maturity, at amortized cost
   
454,000
     
365,220
 
Equity securities available for sale, at fair value
   
47,539
     
47,839
 
Trading securities, at fair value
   
12,259
     
5,358
 
Policy loans
   
30,801
     
28,627
 
Total investments
   
2,305,773
     
2,178,503
 
Cash and cash equivalents
   
195,323
     
152,294
 
Accrued investment income
   
17,449
     
17,080
 
Due from reinsurers
   
4,161,537
     
4,110,628
 
Deferred policy acquisition costs, net
   
1,672,454
     
1,500,259
 
Agent balances, due premiums and other receivables
   
226,539
     
190,379
 
Intangible assets, net
   
55,766
     
58,318
 
Income taxes
   
29,313
     
35,067
 
Other assets
   
356,713
     
304,356
 
Separate account assets
   
2,347,816
     
2,063,899
 
Total assets
 
$
11,368,683
   
$
10,610,783
 
                 
Liabilities and Stockholders' Equity
               
Liabilities:
               
Future policy benefits
 
$
5,629,967
   
$
5,431,711
 
Unearned premiums
   
526
     
628
 
Policy claims and other benefits payable
   
246,514
     
238,157
 
Other policyholders' funds
   
348,975
     
356,123
 
Notes payable
   
372,827
     
372,552
 
Surplus note
   
453,247
     
364,424
 
Income taxes
   
215,454
     
148,125
 
Other liabilities
   
436,621
     
417,910
 
Payable under securities lending
   
95,843
     
71,482
 
Separate account liabilities
   
2,347,816
     
2,063,899
 
Total liabilities
   
10,147,790
     
9,465,011
 
                 
Stockholders' equity:
               
Common stock
   
460
     
483
 
Paid-in capital
   
66,510
     
180,250
 
Retained earnings
   
1,090,388
     
952,804
 
Accumulated other comprehensive income, net of income tax
   
63,535
     
12,235
 
Total stockholders' equity
   
1,220,893
     
1,145,772
 
Total liabilities and stockholders' equity
 
$
11,368,683
   
$
10,610,783
 

 (1)   Unaudited
7

PRIMERICA, INC. AND SUBSIDIARIES
 
Condensed Consolidated Statements of Income
 
(Unaudited)
 
             
   
Three months ended September 30,
 
   
2016
   
2015
 
   
(In thousands, except per-share amounts)
 
Revenues:
           
Direct premiums
 
$
616,587
   
$
587,882
 
Ceded premiums
   
(399,676
)
   
(393,987
)
Net premiums
   
216,911
     
193,895
 
Commissions and fees
   
134,282
     
132,368
 
Net investment income
   
19,399
     
18,715
 
Realized investment gains (losses), including OTTI
   
(35
)
   
(259
)
Other, net
   
13,069
     
10,990
 
Total revenues
   
383,626
     
355,709
 
                 
Benefits and expenses:
               
Benefits and claims
   
93,022
     
88,599
 
Amortization of deferred policy acquisition costs
   
45,428
     
40,797
 
Sales commissions
   
66,700
     
67,402
 
Insurance expenses
   
32,837
     
30,266
 
Insurance commissions
   
4,709
     
4,619
 
Interest expense
   
7,184
     
8,718
 
Other operating expenses
   
45,309
     
40,355
 
Total benefits and expenses
   
295,189
     
280,756
 
Income before income taxes
   
88,437
     
74,953
 
Income taxes
   
30,400
     
25,603
 
Net income
 
$
58,037
   
$
49,350
 
                 
Earnings per share:
               
Basic earnings per share
 
$
1.22
   
$
0.98
 
Diluted earnings per share
 
$
1.22
   
$
0.98
 
                 
Shares used in computing earnings per share:
               
Basic
   
47,008
     
50,082
 
Diluted
   
47,051
     
50,104
 


8

PRIMERICA, INC. AND SUBSIDIARIES
 
Consolidated Operating Results Reconciliation
 
(Unaudited in thousands, except per share amounts)
 
                   
   
Three months ended September 30,
       
   
2016
   
2015
   
% Change
 
Total revenues
 
$
383,626
   
$
355,709
     
8
%
Less: Realized investment gains (losses), including OTTI
   
(35
)
   
(259
)
       
Operating revenues
 
$
383,661
   
$
355,968
     
8
%
                         
Income before income taxes
 
$
88,437
   
$
74,953
     
18
%
Less: Realized investment gains (losses), including OTTI
   
(35
)
   
(259
)
       
Operating income before income taxes
 
$
88,472
   
$
75,212
     
18
%
                         
Net income
 
$
58,037
   
$
49,350
     
18
%
Less: Realized investment gains (losses), including OTTI
   
(35
)
   
(259
)
       
Less: Tax impact of reconciling items
   
12
     
88
         
Net operating income
 
$
58,060
   
$
49,521
     
17
%
                         
Diluted earnings per share (1)
 
$
1.22
   
$
0.98
     
25
%
Less: Net after-tax impact of operating adjustments
   
-
     
-
         
Diluted operating earnings per share (1)
 
$
1.22
   
$
0.98
     
25
%

(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 September 30,
 
     
2016 
     
2015 
 
Direct premiums
 
$
608,396
   
$
579,527
 
Less: Premiums ceded to IPO coinsurers
   
319,517
     
323,501
 
Adjusted direct premiums
 
$
288,879
   
$
256,026
 
                 
Ceded premiums
 
$
(397,214
)
 
$
(391,440
)
Less: Premiums ceded to IPO coinsurers
   
(319,517
)
   
(323,501
)
Other ceded premiums
 
$
(77,697
)
 
$
(67,939
)
                 
Net premiums
 
$
211,182
   
$
188,087
 

 
CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT
 
Operating Results Reconciliation
 
(Unaudited in thousands)
 
             
 
Three months ended September 30,
 
     
2016 
     
2015 
 
Total revenues
 
$
30,948
   
$
29,908
 
Less: Realized investment gains (losses), including OTTI
   
(35
)
   
(259
)
Operating revenues
 
$
30,983
   
$
30,167
 
                 
Loss before income taxes
 
$
(5,460
)
 
$
(6,377
)
Less: Realized investment gains (losses), including OTTI
   
(35
)
   
(259
)
Operating loss before income taxes
 
$
(5,425
)
 
$
(6,118
)
 
9

PRIMERICA, INC. AND SUBSIDIARIES
 
Adjusted Stockholders' Equity Reconciliation
 
(Unaudited in thousands)
 
             
 
September 30, 2016
 
December 31, 2015
 
Stockholders' equity
 
$
1,220,893
   
$
1,145,772
 
Less: Unrealized net investment gains recorded
  in stockholders' equity, net of income tax
   
71,762
     
32,036
 
Adjusted stockholders' equity
 
$
1,149,131
   
$
1,113,736
 

10
(Back To Top)

Section 3: EX-99.2 (EXHIBIT 99.2)

Exhibit 99.2
 
 
 
 
 
Supplemental Financial Information
Third Quarter 2016
 
 
 

 
 
Table of Contents
PRIMERICA, INC.
Financial Supplement

 
   Page
 
     
Preface, definition of Non-GAAP financial measures 
 3
 
     
Condensed balance sheets and reconciliation of balance sheet non-GAAP to GAAP financial measures
 4
 
     
Financial results and other statistical data 
 5
 
     
Statements of income 
 6
 
     
Reconciliation of statement of income non-GAAP to GAAP financial measures
 7
 
     
Segment operating results 
 8
 
        Term Life Insurance segment - financial results, key statistics, and financial analysis 
 9-10
 
        Investment and Savings Products segment - financial results, financial analysis, and key statistics 
 11-12
 
     
Investment portfolio 
 13-15
 
     
Five-year historical key statistics 
 16
 
 
 

This document may contain forward-looking statements and information.  Additional information and factors that could cause actual results to differ materially from any forward-looking statements or information in this document is available in our Form 10-K for the year ended December 31, 2015.
2 of 16

 
Preface
PRIMERICA, INC.
Financial Supplement

 
THIRD QUARTER 2016
 

This document is a financial supplement to our third quarter 2016 earnings release.  It is designed to enable comprehensive analysis of our ongoing business using the same core metrics that our management utilizes in assessing our business and making strategic and operational decisions.  Throughout this document we provide financial information that is derived from our U.S. GAAP financial statements and adjusted for three different purposes, as follows:
 
 
 
Operating adjustments exclude the impact of realized investment gains and losses. We exclude realized investment gains and losses in measuring 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.
 
Adjusted stockholders’ equity refers to the removal of the impact of net unrealized gains and losses on invested assets. 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 disposed.
 
IPO coinsurance transactions adjustments relate to transactions in the first quarter of 2010, where we reinsured between 80% and 90% of our business that was in-force at year-end 2009 to entities then affiliated with Citigroup Inc. (“Citi”) that were executed concurrent with our IPO. 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.
 
 
Management utilizes certain non-GAAP financial measures in managing the business and believes they present relevant and meaningful analytical metrics for evaluating the ongoing business.  Reconciliations of non-GAAP to GAAP financial measures are included in this financial supplement.
 
Certain items throughout this supplement may not add due to rounding and as such, may not agree to other public reporting of the respective item.  Certain items throughout this supplement are noted as ‘na’ to indicate not applicable.  Certain variances are noted as ‘nm’ to indicate not meaningful.  Certain reclassifications have been made to prior-period amounts to conform to current-period reporting classifications. These reclassifications had no impact on net income or total stockholders’ equity.
3 of 16

 
Condensed Balance Sheets and Reconciliation of Balance Sheet Non-GAAP to GAAP Financial Measures
   PRIMERICA, INC.
Financial Supplement

 
(Dollars in thousands)
 
Dec 31,
2014
   
Mar 31,
2015
   
Jun 30,
2015
   
Sep 30,
2015
   
Dec 31,
2015
   
Mar 31,
2016
   
Jun 30,
2016
   
Sep 30,
2016
 
Condensed Balance Sheets
                                               
Assets:
                                               
Investments and cash excluding securities held to maturity
 
$
2,040,313
   
$
2,053,392
   
$
1,963,702
   
$
1,924,636
   
$
1,965,576
   
$
1,968,419
   
$
2,027,735
   
$
2,047,095
 
Securities held to maturity
   
220,000
     
238,000
     
328,000
     
356,000
     
365,220
     
404,860
     
431,000
     
454,000
 
Total investments and cash
   
2,260,313
     
2,291,392
     
2,291,702
     
2,280,636
     
2,330,796
     
2,373,279
     
2,458,735
     
2,501,095
 
Due from reinsurers
   
4,115,533
     
4,094,456
     
4,137,425
     
4,103,949
     
4,110,628
     
4,160,266
     
4,147,284
     
4,161,537
 
Deferred policy acquisition costs
   
1,351,180
     
1,377,022
     
1,430,508
     
1,465,175
     
1,500,259
     
1,559,833
     
1,619,236
     
1,672,454
 
Other assets
   
568,600
     
569,990
     
593,107
     
625,289
     
605,200
     
656,871
     
669,723
     
685,779
 
Separate account assets
   
2,440,303
     
2,386,265
     
2,324,980
     
2,086,598
     
2,063,899
     
2,264,108
     
2,311,124
     
2,347,816
 
Total assets
 
$
10,735,929
   
$
10,719,124
   
$
10,777,724
   
$
10,561,648
   
$
10,610,782
   
$
11,014,358
   
$
11,206,101
   
$
11,368,681
 
                                                                 
Liabilities:
                                                               
Future policy benefits
 
$
5,264,608
   
$
5,289,016
   
$
5,361,580
   
$
5,388,042
   
$
5,431,711
   
$
5,518,834
   
$
5,581,043
   
$
5,629,967
 
Other policy liabilities
   
591,719
     
577,951
     
587,687
     
578,322
     
594,908
     
597,057
     
587,565
     
596,015
 
Income taxes
   
140,467
     
157,684
     
156,212
     
152,314
     
148,125
     
177,457
     
199,985
     
215,454
 
Other liabilities
   
412,159
     
403,724
     
386,194
     
398,821
     
417,910
     
420,038
     
424,051
     
436,621
 
Notes payable
   
372,187
     
372,278
     
372,369
     
372,460
     
372,552
     
372,643
     
372,735
     
372,827
 
Surplus note
   
219,147
     
237,162
     
327,176
     
355,190
     
364,424
     
404,079
     
430,233
     
453,247
 
Payable under securities lending
   
50,211
     
55,622
     
63,898
     
83,220
     
71,482
     
87,383
     
91,901
     
95,843
 
Separate account liabilities
   
2,440,303
     
2,386,265
     
2,324,980
     
2,086,598
     
2,063,899
     
2,264,108
     
2,311,124
     
2,347,816
 
Total liabilities
   
9,490,803
     
9,479,702
     
9,580,097
     
9,414,968
     
9,465,010
     
9,841,598
     
9,998,636
     
10,147,790
 
Stockholders’ equity:
                                                               
Common stock ($0.01 par value) (1)
   
522
     
516
     
501
     
486
     
483
     
473
     
466
     
460
 
Paid-in capital
   
353,335
     
323,996
     
259,937
     
195,314
     
180,250
     
137,857
     
102,824
     
66,510
 
Retained earnings
   
795,741
     
830,624
     
871,440
     
912,749
     
952,804
     
989,685
     
1,040,860
     
1,090,388
 
Treasury stock
   
     
     
     
     
     
     
     
 
Accumulated other comprehensive income (loss), net:
                                                               
Net unrealized investment gains (losses) not other-than-temporarily impaired
   
74,307
     
83,401
     
61,742
     
49,889
     
32,106
     
48,747
     
68,473
     
71,827
 
Net unrealized investment losses other-than-temporarily impaired
   
(461
)
   
(461
)
   
(461
)
   
(73
)
   
(71
)
   
(70
)
   
(68
)
   
(66
)
Cumulative translation adjustment
   
21,682
     
1,346
     
4,468
     
(11,684
)
   
(19,801
)
   
(3,933
)
   
(5,091
)
   
(8,227
)
Total stockholders’ equity
   
1,245,126
     
1,239,422
     
1,197,626
     
1,146,680
     
1,145,772
     
1,172,759
     
1,207,465
     
1,220,891
 
Total liabilities and stockholders' equity
 
$
10,735,929
   
$
10,719,124
   
$
10,777,724
   
$
10,561,648
   
$
10,610,782
   
$
11,014,358
   
$
11,206,101
   
$
11,368,681
 
                                                                 
Reconciliation of Adjusted Stockholders' Equity to Total Stockholders' Equity
                                                               
Adjusted stockholders' equity
 
$
1,171,280
   
$
1,156,482
   
$
1,136,345
   
$
1,096,864
   
$
1,113,736
   
$
1,124,082
   
$
1,139,060
   
$
1,149,131
 
Reconciling items:
                                                               
Net unrealized investment gains (losses) not other-than-temporarily impaired
   
74,307
     
83,401
     
61,742
     
49,889
     
32,106
     
48,747
     
68,473
     
71,827
 
Net unrealized investment losses other-than-temporarily impaired
   
(461
)
   
(461
)
   
(461
)
   
(73
)
   
(71
)
   
(70
)
   
(68
)
   
(66
)
Total reconciling items
   
73,846
     
82,940
     
61,281
     
49,816
     
32,036
     
48,678
     
68,405
     
71,760
 
Total stockholders’ equity
 
$
1,245,126
   
$
1,239,422
   
$
1,197,626
   
$
1,146,680
   
$
1,145,772
   
$
1,172,759
   
$
1,207,465
   
$
1,220,891
 
                                                                 
Adjusted Stockholders' Equity Rollforward
                                                               
Balance, beginning of period
 
$
1,216,813
   
$
1,171,280
   
$
1,156,482
   
$
1,136,345
   
$
1,096,864
   
$
1,113,736
   
$
1,124,082
   
$
1,139,060
 
Net Income
   
45,466
     
43,401
     
49,173
     
49,350
     
47,948
     
45,176
     
59,326
     
58,038
 
Shareholder dividends
   
(6,462
)
   
(8,517
)
   
(8,357
)
   
(8,042
)
   
(7,893
)
   
(8,295
)
   
(8,151
)
   
(8,511
)
Retirement of shares and warrants
   
(82,447
)
   
(44,789
)
   
(70,999
)
   
(71,433
)
   
(20,538
)
   
(52,988
)
   
(41,330
)
   
(41,012
)
Net foreign currency translation adjustment
   
(8,600
)
   
(20,336
)
   
3,121
     
(16,152
)
   
(8,116
)
   
15,867
     
(1,157
)
   
(3,136
)
Other, net
   
6,510
     
15,444
     
6,925
     
6,795
     
5,471
     
10,585
     
6,290
     
4,692
 
Balance, end of period
 
$
1,171,280
   
$
1,156,482
   
$
1,136,345
   
$
1,096,864
   
$
1,113,736
   
$
1,124,082
   
$
1,139,060
   
$
1,149,131
 
                                                                 
Deferred Policy Acquisition Costs Rollforward
                                                               
Balance, beginning of period
 
$
1,321,415
   
$
1,351,180
   
$
1,377,022
   
$
1,430,508
   
$
1,465,175
   
$
1,500,259
   
$
1,559,833
   
$
1,619,236
 
General expenses deferred
   
8,171
     
7,953
     
8,554
     
8,396
     
7,951
     
8,443
     
9,138
     
9,202
 
Commission costs deferred
   
67,980
     
70,389
     
78,799
     
79,787
     
77,810
     
81,174
     
89,783
     
91,783
 
Amortization of deferred policy acquisition costs
   
(39,544
)
   
(36,213
)
   
(36,383
)
   
(40,797
)
   
(44,334
)
   
(43,129
)
   
(38,720
)
   
(45,428
)
Foreign currency impact and other, net
   
(6,842
)
   
(16,287
)
   
2,516
     
(12,718
)
   
(6,343
)
   
13,086
     
(798
)
   
(2,339
)
Balance, end of period
 
$
1,351,180
   
$
1,377,022
   
$
1,430,508
   
$
1,465,175
   
$
1,500,259
   
$
1,559,833
   
$
1,619,236
   
$
1,672,454
 

(1)
Outstanding common shares exclude restricted stock units.
4 of 16

Financial Results and Other Statistical Data
PRIMERICA, INC.
Financial Supplement

 
                                             
YOY Q3
               
YOY YTD
 
(Dollars in thousands, except per-share data)
   
Q1
2015
     
Q2
2015
     
Q3
2015
     
Q4
2015
     
Q1
2016
     
Q2
2016
     
Q3
2016
   

Change
   
%
Change
   
YTD
2015
   
YTD
2016
   
$
Change
   
%
Change
 
Earnings per Share
                                                                                           
Basic earnings per share:
                                                                                           
Weighted-average common shares and fully vested equity awards
   
52,642,881
     
51,786,679
     
50,081,730
     
49,061,165
     
48,549,580
     
47,657,649
     
47,008,203
     
(3,073,527
)
   
-6.1
%
   
51,494,382
     
47,735,812
     
(3,758,570
)
   
-7.3
%
                                                                                                         
Net income
 
$
43,401
   
$
49,173
   
$
49,350
   
$
47,948
   
$
45,176
   
$
59,326
   
$
58,038
   
$
8,688
     
17.6
%
 
$
141,924
   
$
162,540
   
$
20,616
     
14.5
%
Less income attributable to unvested participating securities
   
(444
)
   
(366
)
   
(379
)
   
(374
)
   
(370
)
   
(491
)
   
(494
)
   
(114
)
   
-30.2
%
   
(1,197
)
   
(1,353
)
   
(157
)
   
-13.1
%
Net income used in computing basic EPS
 
$
42,956
   
$
48,806
   
$
48,971
   
$
47,574
   
$
44,806
   
$
58,835
   
$
57,544
   
$
8,573
     
17.5
%
 
$
140,727
   
$
161,187
   
$
20,460
     
14.5
%
Basic earnings per share
 
$
0.82
   
$
0.94
   
$
0.98
   
$
0.97
   
$
0.92
   
$
1.23
   
$
1.22
   
$
0.25
     
25.2
%
 
$
2.73
   
$
3.38
   
$
0.64
     
23.6
%
                                                                                                         
Net operating income
 
$
42,566
   
$
48,791
   
$
49,521
   
$
50,174
   
$
45,680
   
$
57,104
   
$
58,061
   
$
8,540
     
17.2
%
 
$
140,878
   
$
160,845
   
$
19,968
     
14.2
%
Less operating income attributable to unvested participating securities
   
(436
)
   
(363
)
   
(381
)
   
(392
)
   
(375
)
   
(472
)
   
(494
)
   
(113
)
   
-29.7
%
   
(1,188
)
   
(1,339
)
   
(152
)
   
-12.8
%
Net operating income used in computing basic operating EPS
 
$
42,131
   
$
48,427
   
$
49,140
   
$
49,782
   
$
45,306
   
$
56,632
   
$
57,567
   
$
8,427
     
17.1
%
 
$
139,690
   
$
159,506
   
$
19,816
     
14.2
%
Basic operating income per share
 
$
0.80
   
$
0.94
   
$
0.98
   
$
1.01
   
$
0.93
   
$
1.19
   
$
1.22
   
$
0.24
     
24.8
%
 
$
2.71
   
$
3.34
   
$
0.63
     
23.2
%
                                                                                                         
Diluted earnings per share:
                                                                                                       
Weighted-average common shares and fully vested equity awards
   
52,642,881
     
51,786,679
     
50,081,730
     
49,061,165
     
48,549,580
     
47,657,649
     
47,008,203
     
(3,073,527
)
   
-6.1
%
   
51,494,382
     
47,735,812
     
(3,758,570
)
   
-7.3
%
Dilutive impact of contingently issuable shares
   
48,104
     
25,292
     
21,792
     
31,685
     
24,090
     
49,680
     
42,632
     
20,840
     
95.6
%
   
31,729
     
38,800
     
7,071
     
22.3
%
Shares used to calculate diluted EPS
   
52,690,985
     
51,811,971
     
50,103,522
     
49,092,850
     
48,573,670
     
47,707,329
     
47,050,835
     
(3,052,687
)
   
-6.1
%
   
51,526,111
     
47,774,612
     
(3,751,499
)
   
-7.3
%
                                                                                                         
Net income
 
$
43,401
   
$
49,173
   
$
49,350
   
$
47,948
   
$
45,176
   
$
59,326
   
$
58,038
   
$
8,688
     
17.6
%
 
$
141,924
   
$
162,540
   
$
20,616
     
14.5
%
Less income attributable to unvested participating securities
   
(444
)
   
(366
)
   
(379
)
   
(374
)
   
(370
)
   
(490
)
   
(493
)
   
(114
)
   
-30.1
%
   
(1,196
)
   
(1,352
)
   
(156
)
   
-13.1
%
Net income used in computing diluted EPS
 
$
42,957
   
$
48,807
   
$
48,971
   
$
47,574
   
$
44,806
   
$
58,835
   
$
57,544
   
$
8,574
     
17.5
%
 
$
140,728
   
$
161,188
   
$
20,460
     
14.5
%
Diluted earnings per share
 
$
0.82
   
$
0.94
   
$
0.98
   
$
0.97
   
$
0.92
   
$
1.23
   
$
1.22
   
$
0.25
     
25.1
%
 
$
2.73
   
$
3.37
   
$
0.64
     
23.5
%
                                                                                                         
Net operating income
 
$
42,566
   
$
48,791
   
$
49,521
   
$
50,174
   
$
45,680
   
$
57,104
   
$
58,061
   
$
8,540
     
17.2
%
 
$
140,878
   
$
160,845
   
$
19,968
     
14.2
%
Less operating income attributable to unvested participating securities
   
(435
)
   
(363
)
   
(381
)
   
(392
)
   
(374
)
   
(472
)
   
(494
)
   
(113
)
   
-29.7
%
   
(1,187
)
   
(1,338
)
   
(151
)
   
-12.7
%
Net operating income used in computing diluted operating EPS
 
$
42,131
   
$
48,427
   
$
49,140
   
$
49,782
   
$
45,306
   
$
56,632
   
$
57,567
   
$
8,427
     
17.1
%
 
$
139,691
   
$
159,507
   
$
19,816
     
14.2
%
Diluted operating income per share
 
$
0.80
   
$
0.93
   
$
0.98
   
$
1.01
   
$
0.93
   
$
1.19
   
$
1.22
   
$
0.24
     
24.7
%
 
$
2.71
   
$
3.34
   
$
0.63
     
23.2
%
                                                                                                         
                                                                                                         
 
                                                                                                       
                                                                                                         
     
Q1
2015
     
Q2
2015
     
Q3
2015
     
Q4
2015
     
Q1
2016
     
Q2
2016
     
Q3
2016
   
YOY Q3
                   
YOY YTD
 
     

Change
   
%
Change
   
YTD
2015
   
YTD
2016
   
$
Change
   
%
Change
 
Annualized Return on Equity
                                                                                                       
Average stockholders' equity
 
$
1,242,274
   
$
1,218,524
   
$
1,172,153
   
$
1,146,226
   
$
1,159,266
   
$
1,190,112
   
$
1,214,178
   
$
42,025
     
3.6
%
 
$
1,210,984
   
$
1,187,852
   
$
(23,132
)
   
-1.9
%
Average adjusted stockholders' equity
 
$
1,163,881
   
$
1,146,414
   
$
1,116,605
   
$
1,105,300
   
$
1,118,909
   
$
1,131,571
   
$
1,144,095
   
$
27,491
     
2.5
%
 
$
1,142,300
   
$
1,131,525
   
$
(10,775
)
   
-0.9
%
                                                                                                         
Net income return on stockholders' equity
   
14.0
%
   
16.1
%
   
16.8
%
   
16.7
%
   
15.6
%
   
19.9
%
   
19.1
%
   
2.3
%
 
nm
     
15.6
%
   
18.2
%
   
2.6
%
 
nm
 
Net income return on adjusted stockholders' equity
   
14.9
%
   
17.2
%
   
17.7
%
   
17.4
%
   
16.2
%
   
21.0
%
   
20.3
%
   
2.6
%
 
nm
     
16.6
%
   
19.2
%
   
2.6
%
 
nm
 
                                                                                                         
Net operating income return on adjusted stockholders' equity
   
14.6
%
   
17.0
%
   
17.7
%
   
18.2
%
   
16.3
%
   
20.2
%
   
20.3
%
   
2.6
%
 
nm
     
16.4
%
   
19.0
%
   
2.5
%
 
nm
 
                                                                                                         
Capital Structure
                                                                                                       
Debt-to-capital (1)
   
23.1
%
   
23.7
%
   
24.5
%
   
24.5
%
   
24.1
%
   
23.6
%
   
23.4
%
   
-1.1
%
 
nm
     
24.5
%
   
23.4
%
   
-1.1
%
 
nm
 
                                                                                                         
Cash and invested assets to stockholders' equity
   
1.8
x
   
1.9
x
   
2.0
x
   
2.0
x
   
2.0
x
   
2.0
x
   
2.0
x
   
0.1
x
 
nm
     
2.0
x
   
2.0
x
   
0.1
x
 
nm
 
Cash and invested assets to adjusted stockholders' equity
   
2.0
x
   
2.0
x
   
2.1
x
   
2.1
x
   
2.1
x
   
2.2
x
   
2.2
x
   
0.1
x
 
nm
     
2.1
x
   
2.2
x
   
0.1
x
 
nm
 
                                                                                                         
Share count, end of period (2)
   
51,554,770
     
50,110,938
     
48,571,139
     
48,296,623
     
47,295,175
     
46,601,587
     
45,961,671
     
(2,609,468
)
   
-5.4
%
   
48,571,139
     
45,961,671
     
(2,609,468
)
   
-5.4
%
Adjusted stockholders' equity per share
 
$
22.43
   
$
22.68
   
$
22.58
   
$
23.06
   
$
23.77
   
$
24.44
   
$
25.00
   
$
2.42
     
10.7
%
 
$
22.58
   
$
25.00
   
$
2.42
     
10.7
%
                                                                                                         
Financial Strength Ratings - Primerica Life Insurance Co
                                                                                                       
Moody's
   
A2
     
A2
     
A2
     
A2
     
A2
     
A2
     
A2
   
nm
   
nm
   
nm
   
nm
   
nm
   
nm
 
S&P
 
AA-
   
AA-
   
AA-
   
AA-
   
AA-
   
AA-
   
AA-
   
nm
   
nm
   
nm
   
nm
   
nm
   
nm
 
A.M. Best
   
A+
 
   
A+
 
   
A+
 
   
A+
 
   
A+
 
   
A+
 
   
A+
 
 
nm
   
nm
   
nm
   
nm
   
nm
   
nm
 
                                                                                                         
Holding Company Senior Debt Ratings
                                                                                                       
Moody's
 
Baa2
   
Baa2
   
Baa2
   
Baa2
   
Baa2
   
Baa2
   
Baa2
   
nm
   
nm
   
nm
   
nm
   
nm
   
nm
 
S&P
   
A-
     
A-
     
A-
     
A-
     
A-
     
A-
     
A-
   
nm
   
nm
   
nm
   
nm
   
nm
   
nm
 
A.M. Best
   
a-
     
a-
     
a-
     
a-
     
a-
     
a-
     
a-
   
nm
   
nm
   
nm
   
nm
   
nm
   
nm
 

(1)
Debt-to-capital is that of the parent company only. Capital in the debt-to-capital ratio includes stockholders' equity and the note payable.
(2)
Share count reflects outstanding common shares, including restricted shares, but excludes restricted stock units (RSUs).
5 of 16

 
Statements of Income
PRIMERICA, INC.
Financial Supplement

 
                                             
YOY Q3
               
YOY YTD
 
(Dollars in thousands)
   
Q1
2015
     
Q2
2015
     
Q3
2015
     
Q4
2015
     
Q1
2016
     
Q2
2016
     
Q3
2016
   
$
Change
   
%
Change