Primerica 2010 Annual Report - Direct Selling News

The net effect on stockholders’ equity ofunrealized gains and losses from investmentsecurities was as follows:December 31,2010 2009(In thousands)Net unrealized investment gains including foreign currency translation adjustment andother-than-temporary impairments $157,423 $243,510Less foreign currency translation adjustment (9,766) (43,533)Other-than-temporary impairments 3,500 24,800Net unrealized investment gains excluding foreign currency translationadjustment and other-than-temporary impairments 151,157 224,777Less deferred income taxes 52,835 78,672Net unrealized investment gains excluding foreign currency translationadjustment and other-than-temporary impairments, net of tax $ 98,322 $ 146,105Investment IncomeThe components of net investment incomewere as follows:Year ended December 31,2010 2009 2008(In thousands)Fixed-maturity securities $ 168,051 $352,753 $ 311,442Equity securities 1,822 6,923 (2,789)Policy loans and other invested assets 1,403 1,549 1,773Cash and cash equivalents 562 2,887 16,248Market return on deposit asset underlying 10% reinsurance agreement 1,471 299 1,468Gross investment income 173,309 364,411 328,142Less investment expenses 8,198 13,085 14,107Net investment income $ 165,111 $ 351,326 $314,035Trading portfolio gains (losses) included in netinvestment income were as follows:Year ended December 31,2010 2009 2008(In thousands)Trading portfolio gains (losses) includedin net investment income $533 $1,770 $(987)Trading portfolio (losses) gains included in netinvestment income from fixed-maturitysecurities still owned was as follows:Year ended December 31,2010 2009 2008(In thousands)Trading portfolio (losses) gains fromfixed-maturity securities still owned $(223) $1,216 $(2,665)Primerica 2010 Annual Report 129