Primerica 2010 Annual Report - Direct Selling News

ITEM 8. FINANCIAL STATEMENTSAND SUPPLEMENTARY DATA.REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMThe stockholders and board of directors of Primerica, Inc.:We have audited the accompanying consolidated and combined balance sheets of Primerica, Inc. andsubsidiaries (the Company) as of December 31, 2010 and 2009, and the related consolidated andcombined statements of income, stockholders’ equity, comprehensive income, and cash flows foreach of the years in the three-year period ended December 31, 2010. These consolidated andcombined financial statements are the responsibility of the Company’s management. Ourresponsibility is to express an opinion on these consolidated and combined financial statementsbased on our audits.We conducted our audits in accordance with the standards of the Public Company AccountingOversight Board (United States). Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing the accounting principlesused and significant estimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basis for our opinion.In our opinion, the consolidated and combined financial statements referred to above present fairly,in all material respects, the financial position of Primerica, Inc. and subsidiaries as of December 31,2010 and 2009, and the results of their operations and their cash flows for each of the years in thethree-year period ended December 31, 2010, in conformity with U.S. generally accepted accountingprinciples.As discussed in notes 1 and 2 to the consolidated and combined financial statements, in April 2010the Company completed its initial public offering and a series of related transactions. Also asdiscussed in note 1 to the consolidated and combined financial statements, the Company adopted theprovisions of FASB Staff Position Financial Accounting Standard No. 115-2 and Financial AccountingStandard No. 124-2, Recognition and Presentation of Other-Than-Temporary Impairments (included inFASB ASC Topic 320, Investments — Debt and Equity Securities) as of January 1, 2009./s/ KPMG LLPAtlanta, GeorgiaMarch 17, 2011106 Freedom Lives Here