Strategy to Drive Stockholder Value
15
Not a Traditional Life Insurance Company
Primerica
Traditional
Life Company
Operating Revenue¹
Fee-Based & Other Revenue
42.4%
Significant Investment & Savings Products
business with substantial recurring revenue
20.3%
Insurance Premiums
51.1%
Stable margin through extensive reinsurance
52.7%
Investment Income
6.5%
Minimal earnings dependency
26.9%
Investment Leverage²
1.9x
Less susceptible to market volatility
8.6x
Net Annualized
Operating Return on
15.3%
ROAE above average
Average Adjusted Equity³
13.7%
Variable cost structure of distribution model provides scalable infrastructure
Note: Traditional Life Company references the mean financial metrics of Torchmark, Lincoln Financial, MetLife and Prudential. Prudential's metrics are for Financial Services segment only. Peer
Adjusted Equity defined as Common Equity less unrealized gains/(losses).
1 For full year 2014
2 Calculated as (Cash + Invested Assets) / Adjusted Equity without unrealized gains
3 Full year 2014 operating income divided by the average of Q1, Q2, Q3 and Q4 2014 average adjusted equity.
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