Primerica 2010 Annual Report - Direct Selling News

Changes in asset values in client accounts wereas follows:Year endedDecember 31,Change2010 2009 $ %(Dollars in millions)Asset values, beginning of period $ 31,303 $24,677 $ 6,626 27%Inflows 3,624 3,007 617 21%Redemptions (3,691) (2,997) (694) 23%Change in market value, net andother 3,633 6,617 (2,984) -45%Asset values, end of period (1) $34,869 $ 31,303 $ 3,565 11%(1) Totals may not add due to rounding.Inflows increased consistent with the increasein sales volume. The amount of redemptionsalso increased reflecting the year-over-yearincrease in assets under management. Actualredemption rates were level as a percent ofaverage assets under management for both2010 and 2009. The market return on assetsunder management in 2010 and 2009 reflectedgeneral market value trends.Corporate and Other DistributedProducts Segment Actual ResultsWe entered into thereorganizationtransactions, whichare described morefully in Note 3 to ourpro forma statementof income, duringMarch and April of2010. As such, actualresults for the yearended December 31,2010 include approximately three months ofoperations that do not reflect thereorganization transactions, while actualresults for the year ended December 31, 2009do not reflect the effects of the reorganizationtransactions. Corporate and Other DistributedProducts segment actual results were asfollows:Year endedDecember 31,Change2010 2009 $ %(Dollars in thousands)Revenues:Direct premiums $ 80,365 $ 81,793 $ (1,428) -2%Ceded premiums (14,325) (13,963) (362) 3%Net premiums 66,040 67,830 (1,790) -3%Allocated net investment income 54,477 77,114 (22,637) -29%Commissions and fees 31,172 46,360 (15,188) -33%Realized investment gains (losses),including OTTI 34,146 (21,970) 56,116 *Other, net 5,653 8,862 (3,209) -36%Total revenues 191,488 178,196 13,292 7%Benefits and expenses:Benefits and claims 40,052 41,235 (1,183) -3%Amortization of DAC 2,392 2,374 18 *Insurance commissions 8,875 9,943 (1,068) -11%Insurance expenses 11,615 14,022 (2,407) -17%Sales commissions 20,800 33,841 (13,041) -39%Interest expense 12,375 — 12,375 *Other operating expenses 108,810 69,242 39,568 57%Total benefits and expenses 204,919 170,657 34,262 20%(Loss) income before incometaxes $ (13,431) $ 7,539 $(20,970) ** Less than 1%, or not meaningful90 Freedom Lives Here TM