Primerica 2010 Annual Report - Direct Selling News

Gross unrealized losses as a percentage of the fairvalue of total available-for-sale fixed-maturity andequity securities were less than 1% at December 31,2010, compared with approximately 2% atDecember 31, 2009. The decline in the percentagefrom year-end 2009 was primarily a result of thestrong market value gains that our invested assetportfolio has experienced in 2010 as interest ratesand spreads continue to decline.The percentages of investment-grade fixed-maturitysecurities in a gross unrealized loss position, bylength of time, were as follows:December 31,2010 2009Fixed-maturity securities in a gross unrealized loss positionfor less than 12 months that are investment grade 92% 94%Fixed-maturity securities in a gross unrealized loss positionfor 12 months or longer that are investment grade 69% 83%The decline in the percentages of investmentgradefixed-maturity securities in an unrealizedloss position was primarily a result of thechange in the composition of our invested assetportfolio as a result of our corporatereorganization as well as increased marketvalues as interest rates and spreads declinedduring 2010.The scheduled maturity distribution of theavailable-for-sale fixed-maturity portfolio follows.December 31, 2010Cost oramortized cost Fair value(In thousands)Due in one year or less $ 177,927 $ 181,887Due after one year through five years 655,609 709,776Due after five years through 10 years 513,974 574,212Due after 10 years 59,117 64,0081,406,627 1,529,883Mortgage-and asset-backed securities 523,130 551,478Total fixed-maturity securities $1,929,757 $ 2,081,361Expected maturities may differ from scheduledcontractual maturities because issuers of securitiesmay have the right to call or prepay obligations with orwithout call or prepayment penalties.128 Freedom Lives Here