Primerica 2010 Annual Report - Direct Selling News

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Schedule IIISupplementary Insurance InformationPRIMERICA, INC.Deferred policyacquisition costsFuturepolicybenefitsUnearnedpremiumsOther policybenefits andclaims payableSeparate accountliabilities(In thousands)As of December 31, 2010:Term Life Insurance $ 734,187 $4,237,487 $ — $ 210,595 $ —Investment and Savings Products 68,254 — — — 2,445,590Corporate and Other DistributedProducts 50,770 171,696 5,563 19,300 1,196Total $ 853,211 $ 4,409,183 $5,563 $229,895 $2,446,786As of December 31, 2009:Term Life Insurance $2,677,060 $4,023,244 $ — $ 198,193 $ —Investment and Savings Products 62,484 — — — 2,091,965Corporate and Other DistributedProducts 50,361 174,210 3,185 20,197 1,377Total $2,789,905 $ 4,197,454 $ 3,185 $ 218,390 $ 2,093,342PremiumrevenueNet investmentincomeBenefitsand claimsAmortization ofdeferred policyacquisitioncostsOther operatingexpensesPremiumswritten(In thousands)Year ended December 31,2010:Term Life Insurance $ 664,668 $ 110,633 $ 277,653 $ 156,312 $ 75,559 —Investment and SavingsProducts — — — 9,330 238,947 —Corporate and OtherDistributed Products 66,039 54,478 40,050 2,393 162,476 40,429Total $ 730,707 $ 165,111 $ 317,703 $168,035 $476,982 $40,429Year ended December 31,2009:Term Life Insurance $ 1,434,197 $ 274,212 $559,038 $ 371,663 $ 152,352 —Investment and SavingsProducts — — — 7,254 199,482 —Corporate and OtherDistributed Products 67,830 77,114 41,235 2,374 127,048 40,849Total $1,502,027 $ 351,326 $600,273 $ 381,291 $478,882 $40,849Year ended December 31,2008:Term Life Insurance $1,393,953 $244,736 $ 894,910 $ 131,286 $ 135,007 —Investment and SavingsProducts — — — 10,966 250,378 —Corporate and OtherDistributed Products 69,765 69,299 43,460 2,238 375,663 41,774Total $ 1,463,718 $ 314,035 $938,370 $144,490 $ 761,048 $ 41,774See accompanying report of independent registered public accounting firm.174 Freedom Lives Here
GrossamountSchedule IVReinsurancePRIMERICA, INC.Year ended December 31, 2010Ceded to othercompaniesAssumed fromothercompaniesNetamountPercentageof amountassumedto net(Dollars in thousands)Life insurance in force $ 662,135,294 $600,806,666 $— $ 61,328,628 — %Premiums:Life insurance $ 2,138,912 $ 1,448,694 $— $ 690,218 — %Accident and healthinsurance 42,162 1,673 — 40,489 — %Total premiums $ 2,181,074 $ 1,450,367 $— $ 730,707 — %Gross amountYear ended December 31, 2009Ceded to othercompaniesAssumedfromothercompaniesNet amountPercentageof amountassumedto net(Dollars in thousands)Life insurance in force $655,659,625 $ 421,621,165 $— $234,038,460 — %Premiums:Life insurance $ 2,069,009 $ 610,020 $— $ 1,458,989 — %Accident and healthinsurance 43,772 734 — 43,038 — %Total premiums $ 2,112,781 $ 610,754 $— $ 1,502,027 — %Gross amountYear ended December 31, 2008Ceded to othercompaniesAssumedfromothercompaniesNet amountPercentageof amountassumedto net(Dollars in thousands)Life insurance in force $ 639,157,278 $ 410,916,299 $— $228,240,979 — %Premiums:Life insurance $ 2,049,730 $ 628,055 $— $ 1,421,675 — %Accident and healthinsurance 43,062 1,019 — 42,043 — %Total premiums $ 2,092,792 $ 629,074 $— $ 1,463,718 — %See the accompanying report of independent registered public accounting firm.Primerica 2010 Annual Report 175
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Freedom Lives Here 2010 Annual Repo
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A Main Street Company for Main Stre
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North America’s vastmiddle-income
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More than 50 percent of U.S. househ
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We are PrimericaPrimerica is a Main
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Primerica helps familiescreate a fi
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René Turner wasalways told growing
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We teach people how money works.We
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UNITED STATESSECURITIES AND EXCHANG
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CAUTIONARY STATEMENT CONCERNING FOR
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PART IITEM 1.BUSINESSOverviewPrimer
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them reduce and ultimately pay off
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With the support of our home office
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ecognized with the sales representa
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force. We also profile successful s
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• bonuses and other compensation,
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originators (and in some states as
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We organize and manage our business
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premiums that are less per person p
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insurance policies that we underwri
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assistance, has developed a series
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SEC, FINRA and with respect to 529
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they sell insurance policies. Our C
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preceding 12 months, exceed this st
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interest rate risk and business ris
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operational support to its subsidia
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Privacy of Consumer Information. U.
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media. This negative commentary can
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with such laws and regulations, inc
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and disrupt the economy. Although w
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Our financial strength and credit r
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There are certain risks and uncerta
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26). The update revises the definit
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conduct standards prescribed by FIN
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licensing requirements have caused,
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Terrorist Financing Act and its acc
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educing dividends or other amounts
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housed at our Duluth and Roswell, G
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• for dates as of or periods endi
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to and subject to the limitations o
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Field Audit Department from 1993 to
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Securities Authorized for Issuanceu
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ITEM 6.SELECTED FINANCIAL DATA.The
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pursuant to which we issued to a wh
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ecruiting boost we experienced in t
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• Mortality. We use historical ex
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• sales of a higher proportion of
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on quality rating, average life and
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Deferred Policy Acquisition Costs(D
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life insurance processing responsib
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einsurance agreements impacted the
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Notes to the Pro Forma Statement of
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Term Life Insurance Segment ProForm
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Investments and Savings ProductsSeg
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We believe that the pro forma resul
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ecognized in 2008. Excluding the ef
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amortize the higher DAC balance res
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Corporate and Other DistributedProd
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The composition of our invested ass
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LIQUIDITY AND CAPITALRESOURCESDivid
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surplus notes, hybrid securities or
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ITEM 7A. QUANTITATIVE ANDQUALITATIV
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AssetsPRIMERICA, INC. AND SUBSIDIAR
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PRIMERICA, INC. AND SUBSIDIARIESCon
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PRIMERICA, INC. AND SUBSIDIARIESCon
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which we are able to reinvest at ou
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with reinsured policies. Ceded poli
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indemnify and hold the Company harm
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New Accounting PrinciplesScope Exce
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immediately contributed back to us
Page 143 and 144: The Investment and Savings Products
Page 145 and 146: (4) InvestmentsOn March 31, 2010, w
Page 147 and 148: The following tables summarize, for
Page 149 and 150: The net effect on stockholders’ e
Page 151 and 152: The amortized cost and fair value o
Page 153 and 154: The roll-forward of credit-related
Page 155 and 156: having similar tenors (e.g., sector
Page 157 and 158: (5) Financial InstrumentsThe carryi
Page 159 and 160: Due from reinsurers includes ceded
Page 161 and 162: (8) Intangible Assets and GoodwillT
Page 163 and 164: (11) Note PayableIn April 2010, we
Page 165 and 166: Income tax expense (benefit) attrib
Page 167 and 168: above, plus an additional 7,098 com
Page 169 and 170: Non-Employee Share-BasedTransaction
Page 171 and 172: We had arrangements with Citi in re
Page 173 and 174: Contingent LiabilitiesThe Company i
Page 175 and 176: ITEM 9. CHANGES IN ANDDISAGREEMENTS
Page 177 and 178: Members of Our Board of DirectorsTh
Page 179 and 180: finance, and risk and asset managem
Page 181 and 182: PART IVITEM 15. EXHIBITS AND FINANC
Page 183 and 184: 10.4 Long-Term Services Agreement d
Page 185 and 186: 10.29 Employment Agreement, dated a
Page 187 and 188: Schedule ISummary of Investments
Page 189 and 190: Schedule IICondensed Financial Info
Page 191 and 192: Schedule IICondensed Financial Info
Page 193: 101% of the outstanding principal a
Page 197 and 198: Annual MeetingThe annual meeting of
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