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Investor Presentaiton

31 Primerica's Use of Reinsurance Yearly Renewal Term (YRT) Reinsurance Reinsure 90% of the mortality risk on new issued policies on a quota share basis YRT cedes the mortality risk only YRT premiums start low and increase as the underlying policies age Used since 1991 as a risk management tool to lower claim volatility High quality pool of reinsurers IPO Coinsurance At the IPO, coinsured 80% of in-force business. No use of coinsurance since then Coinsurance is similar to sharing a portion of the business Coinsurers receive their portion of all premiums and pay their portion of all claims Primerica receives allowances from the coinsurers to cover their portion of the company's expenses and commissions Decreases with the run-off of this closed block When policies reach the end of their initial level premium period in 2017 or thereafter, we no longer cede the policy under the IPO coinsurance PRIMERICA

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