Q4 2018 Earnings Results

February 8, 2019

Forward-Looking Statements

This presentation may contain forward-looking statements and information. Additional

information on factors that could cause results to differ materially from those projected in

this presentation is available in our Form 10-K for the year ended December 31, 2017, as

may be updated by our quarterly reports on Form 10-Q, available in the “Investor

Relations” section of our website http://investors.primerica.com.

Non-GAAP Financial Measures

This presentation also contains non-GAAP financial measures. A reconciliation of those

measures to GAAP financial measures is included in our Financial Supplement, which is

posted in the Investor Relations section of our website, http://investors.primerica.com.

Reported amounts may not add due to rounding.

Forward-Looking Statements and Non-GAAP Financial Measures

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● Ended 2018 with 130,736 life licensed

representatives, surpassing goal set four years ago

to grow the salesforce from 98,000 to 130,000

● More than $95 billion of Term Life face amount

issued for the second year in a row

● Record $7 billion in Investment and Savings Product

sales

Financial Highlights

● 11% increase in adjusted operating revenues

driven by 12% growth in adjusted direct premiums

● 21% growth in adjusted net operating income

● Diluted adjusted operating EPS was $2.01

● Adjusted operating ROAE was 24.0% for Q4 2018

($ in millions, except per-shareamounts)

Q4 2018 Q4 2017 % Change

Revenues $487.3 $442.9 10%

Net income $86.5 $168.4 -49%

Stockholders’ equity (2) $1,461.5 $1,419.1 3%

Diluted EPS (3) $1.99 $3.72 -47%

Book value per share (4) $34.23 $32.07 7%

ROE (6) 23.8% 49.9%

Q4 2018 VERSUS Q4 2017

(1) For a reconciliation of GAAP to non-GAAP financial measures refer to page 7 of our Financial Supplement (2) As of period end(3) 43,311,282 weighted-average shares for Q4 2018(4) 42,694,258 common shares outstanding as of December 31, 2018(5) Annualized adjusted net operating income return on adjusted equity(6) Annualized net income return on equity

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IMPORTANT MILESTONES IN 2018 GAAP FINANCIAL RESULTS (1)

($ in millions, except per-shareamounts)

Q4 2018 Q4 2017 % Change

Adjusted operating revenues $488.7 $441.9 11%

Adjusted net operating income $87.6 $72.3 21%

Adjusted stockholders’ equity (2) $1,468.9 $1,379.5 6%

Diluted adjusted operating EPS (3) $2.01 $1.60 26%

Adjusted book value per share (4) $34.40 $31.17 10%

Adjusted operating ROAE (5) 24.0% 22.1%

Debt-to-capital (2) 20.4% 20.8%

ADJUSTED OPERATING FINANCIAL RESULTS (1)

94.9 98.4106.7

116.8126.1

130.7

2010 2014 2015 2016 2017 2018

SALE

SFO

RC

E

Sales Force Highlights

● 4% increase in the size of the life insurance

licensed sales force to 130,736

● Continue to attract large number of people

to the business

● New life licenses down 7% due to recent

recruiting trends

● Expect life licensed sales force to grow in

line with longer-term CAGR in 2019

Q4 2018 VERSUS Q4 2017

LIFE LICENSED SALES FORCE (THOUSANDS) (1)

($ in billions) Q4 2018 Q4 2017 % Change

Recruits 61,990 64,401 -4%

New life licensed representatives 11,052 11,902 -7%

Life insurance licensed sales force (1) 130,736 126,121 4%

Issued life insurance policies 72,122 80,068 -10%

Life insurance face amount in force (1) $781.0 $763.8 2%

Investment & savings products sales $1.74 $1.60 8%

Investment & savings products client asset values (1) $57.7 $61.2 -6%

Investment & savings products average client asset values

$61.0 $59.9 2%

SUMMARY OF SALES FORCE & BUSINESS HIGHLIGHTS

(1) As of period end

(1) As of period endCAGR: Compound Annual Growth Rate

4

9% 8%

55.7 66.4 70.6 70.8

68.177.4 84.0 83.8

66.775.4 78.1 74.9

69.6

79.1 80.1 72.1

2015 2016 2017 2018

PO

LIC

IES

Q4

Q3

Q2

Q1

Production Highlights

Term Life Insurance

● Productivity was in the historical range at 0.18 policies issued per life insurance licensed representative per month, but lower than the prior year, which was at the high end of the range at 0.21

Investment & Savings Products

● 10% growth in revenue-generating product sales

— Driven by a 44% increase in variable annuity sales,

reflecting recent product enhancements by our

product partners

● 2% growth in average client asset values

— Driven by $360 million of net client inflows

Q4 2018 VERSUS Q4 2017

HISTORICAL ISP PRODUCTION ($ IN BILLIONS)

260.1

298.2312.8

ISSUED TERM LIFE POLICIES (THOUSANDS)

301.6

$48.48 $49.43$56.79

$61.84Average Client Asset Values

$1.51 $1.38 $1.59 $1.78

$1.57 $1.47 $1.57 $1.76

$1.37 $1.34$1.43

$1.76$1.41 $1.41

$1.60$1.74

2015 2016 2017 2018

SALE

SQ4

Q3

Q2

Q1

$5.86$5.59

$6.19$7.04

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Term Life Segment

● Adjusted directed premiums growth of 12%

drove operating revenue growth of 11%

● DAC amortization ratio consistent with prior

year

● Benefits and claims ratio also consistent with

prior year

● Prior year insurance expense ratio was lower

due to a premium and retaliatory tax benefit

associated with the change in Primerica Life

Insurance Company’s state of domicile

Q4 2018 VERSUS Q4 2017 SELECTED TERM LIFE OPERATING RESULTS

($ in millions) Q4 2018 Q4 2017 % Change

Direct premiums $667.8 $644.4 3.6%

Premium ceded to IPO coinsurers (1) ($281.3) ($300.1) 6.3%

Adjusted direct premiums (ADP) (2) $386.5 $344.2 12.3%

Operating revenues $291.9 $263.0 11.0%

Operating Income before Income taxes $72.1 $68.2 5.7%

(1) Premiums ceded to IPO coinsurers under the IPO coinsurance transactions excluding any reimbursements from IPO coinsurers on previously existing reinsurance agreements

(2) Direct premiums net of premiums ceded to IPO coinsurers

(3) As a percentage of adjusted direct premiums

(4) Benefits and claims net of other ceded premiums, which are largely YRT

(5) Insurance expenses net of other, net revenues

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Key Ratios (3) Q4 2018 Q4 2017

Benefits and claims, net (4) 57.5% 57.6%

DAC amortization & insurance commissions 17.1% 16.9%

Insurance expenses, net (5) 7.8% 6.5%

Term life income before income taxes 18.7% 19.8%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Legacy IY 2010 IY 2011 IY 2012 IY 2013 IY 2014

IY 2015 IY 2016 IY 2017 IY 2018 IY 2019

● Adjusted direct premiums are expected to

grow more than 11% in 2019

● Main drivers of adjusted direct premium

growth

— IPO coinsurance transactions

▪ Benefit of IPO coinsurance transactions has been

diminishing, as expected, with growth in the

post-IPO block and the run-off of the pre-IPO

block

— Retention of policies continuing beyond their

initial policy term (EOT impact)

▪ Provided growth in 2017-2018 and is now

reaching steady state

— Growth in issued policies over recent years

Term Life Adjusted Direct Premium

ILLUSTRATION OF ADJUSTED DIRECT PREMIUMS GROWTH BY ISSUE YEAR (IY)

2015 2016 2017 2018 2019 (F)

Adjusted direct premium growth Y-O-Y rate 11.2% 13.2% 15.4% 13.9% 11.4%

IPO impact 11.2% 9.5% 8.6% 7.6% 6.8%

EOT impact 2.3% 2.7% 1.8%

Sales impact 1.3% 4.1% 4.3% 3.5% 3.0%

FX impact -1.2% -0.3% 0.2% 0.0% -0.1%

Y-O-Y growth in Term life policies issued 17.7% 14.7% 4.9% -3.6% 3.0%

7

25%17%

13%11%

11%13%

15%

14%

11%

77%

23%80%

20%

AD

JUST

EDD

IREC

TP

REM

IUM

S

COMPONENTS OF ADJUSTED DIRECT PREMIUMS (ADP) ANNUAL GROWTH

Investment & Savings Products Segment

Q4 2018 VERSUS Q4 2017 SUMMARY ISP OPERATING RESULTS

($ in millions, except account-based net revenue)

Q4 2018 Q4 2017%

Change

Sales-based revenues $67.0 $58.3 15%

Asset-based revenues $75.0 $73.0 3%

Account-based revenues $20.5 $14.7 39%

Other, net $2.4 $2.5 -4%

Total operating revenues $164.9 $148.5 11%

Benefits and expenses $119.3 $101.5 17%

Income before income taxes $45.6 $47.0 -3%

Sales-Based net revenue as % of revenue-generating sales (1) 1.29% 1.24%

Asset-based net revenue as % of average asset values (2) 0.051% 0.055%

Account-based net revenue per average fee generating position (3) $3.80 $3.52

● Strong demand for annuities led to 15%

growth in sales-based revenues and total

revenue growth of 11%

● Lifetime Investment Platform helped asset-

based revenues grow 2.8%

● New record-keeping platform fees generated

$6 million in account-based revenues, offset

by a similar increase in other operating

expenses

● Segregated fund DAC amortization increased

$2.6 million due to strong markets in 2017

versus softer markets in 2018

(1) Commission and fee revenue less commissions paid to the sales force based on product sales activity

(2) Commission and fee revenue less administration and advisory fees paid to third-party providers and commissions paid to the sales force earned based on product account values including amortization of deferred acquisition costs for segregated funds

(3) Fee revenue less recordkeeping fees paid to third-party providers based on fee-generating positions and certain direct general expenses

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$274,384$223,621

$846,922

$681,910

$56,408

< 1 Year 1-2 Years 2-5 Years 5-10 Years > 10 Years

Invested Assets Portfolio

● Net investment income increased $2.3

million or 12% year-over-year from growth

in the size of the portfolio, partially offset

by lower reinvestment rates

● Long-term reinvestment rate of 4.02% on

fourth quarter purchases

● Expect continued yield pressure as higher-

yielding investments mature in 2019

(based on amortized cost (except for market value); excludes cash; period end) Q4 2018

Fixed income / other mix 98% / 2%

Fixed income average book yield 3.89%

Average rating A

Investment grade / BIG mix 97% / 3%

Average duration 3.5 years

Market value $2.12 billion

Net unrealized gain / (loss) ($9.2) million

KEY PORTFOLIO ATTRIBUTES

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4.50%3.75%

3.68%

3.91%

4.56%

BOOK VALUE AND YIELD OF MATURITIES (1) (2)

(1) Percent represents average book yield(2) As of December 31, 2018

Insurance & Operating Expenses

Q4 2018 VERSUS Q4 2017 INSURANCE & OPERATING EXPENSES

($ in millions) Cons * Life ISP Corp

Q4 2017 Expenses* $80.9 $33.1 $25.9 $21.8

Recordkeeping related expenses 5.7 0.0 5.7 0.0

Growth in the business and key initiatives

8.4 4.2 2.0 2.2

PY change of domicile impact 3.3 3.3 0.0 0.0

Q4 2018 Expenses * $98.3 $40.6 $33.6 $24.0

● Operating expenses of $98.3 million were

$17.4 million higher than Q4 2017

— $5.7 million increase in expenses related to

changes in ISP record-keeping contracts

were offset by incremental revenues

— $8.4 million of additional expenses to

support growth and business initiatives

— Q4 2017 included the full-year impact of

Primerica Life’s change in its state of

domicile to Tennessee

* Items may not add due to rounding

10

● In 2019, insurance and other operating

expenses are expected to grow between

~6% and 8%

— Includes both normal business growth and

investments in new initiatives

● First quarter expenses generally $10 million

higher than other quarters, reflecting

annual grants of management equity

awards

Expense Growth and Business Investment Initiatives

11

ESTIMATED INCREASE

Salaries and other employee costs (1) $5-6 million

Revenue-related expense growth $6-7 million

Product development $3-4 million

Technology $10-14 million

TOTAL INCREASE$24-31 million

(6%-8%)

TECHNOLOGY

● Cyber and information security $3 – 4 million

● Technology management and investments in infrastructure

$2 – 3 million

● Modernization Initiatives $3 – 4 million

● Expand digital platform $2 – 3 million

TOTAL TECHNOLOGY $10 – 14 MILLION

(1) Excludes technology-related employee costs

● Expect 2019 operating effective income tax rate of approximately 23%, consistent with

2018’s rate

● Primerica Life Insurance Company’s (PLIC) statutory risk-based capital ratio (RBC) was

estimated to be around 440% with holding company liquidity at about $152 million as of

December 31, 2018

● Repurchased $210 million of common stock under the share repurchase program in 2018

● Expect to repurchase around $225 million of common stock in 2019

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Taxes, Capital and Liquidity