10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2017

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-34680

Primerica, Inc.

(Exact name of registrant as specified in its charter)

Delaware	27-1204330
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1 Primerica Parkway Duluth, Georgia	30099
(Address of principal executive offices)	(ZIP Code)

(770) 381-1000

(Registrant’s telephone number, including area code)

Not applicable.

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    ☒  Yes    ☐  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    ☒  Yes    ☐  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐  (Do not check if a smaller reporting company)	Smaller reporting company	☐
Emerging growth company      ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.            ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ☐  Yes    ☒  No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	As of July 31, 2017
Common Stock, $0.01 Par Value	44,885,550 shares

TABLE OF CONTENTS

	Page
PART I – FINANCIAL INFORMATION	1
Item 1. Financial Statements (unaudited).	1
Condensed Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016	1
Condensed Consolidated Statements of Income for the three and six months ended June 30, 2017 and 2016	2
Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2017 and 2016	3
Condensed Consolidated Statements of Stockholders’ Equity for the six months ended June 30, 2017 and 2016	4
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2017 and 2016	5
Notes to Condensed Consolidated Financial Statements	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.	21
Item 3. Quantitative and Qualitative Disclosures About Market Risk.	37
Item 4. Controls and Procedures.	37
PART II – OTHER INFORMATION	37
Item 1. Legal Proceedings.	37
Item 1A. Risk Factors.	37
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	38
Item 6. Exhibits.	39
Signatures	40

ii

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

PRIMERICA, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

	(Unaudited)
	June 30, 2017			December 31, 2016
	(In thousands)
Assets:
Investments:
Fixed-maturity securities available-for-sale, at fair value (amortized cost: $1,822,890 in 2017    and $1,734,683 in 2016)	$	1,888,983		$	1,792,438
Fixed-maturity securities held-to-maturity, at amortized cost (fair value: $665,801 in 2017 and    $513,015 in 2016)		635,690			503,230
Equity securities available-for-sale, at fair value (cost: $35,369 in 2017 and $36,818 in 2016)		45,936			44,894
Trading securities, at fair value (cost: $15,538 in 2017 and $7,382 in 2016)		15,541			7,383
Policy loans		34,316			30,916
Total investments		2,620,466			2,378,861
Cash and cash equivalents		154,499			211,976
Accrued investment income		16,585			16,520
Due from reinsurers		4,191,754			4,193,562
Deferred policy acquisition costs, net		1,833,877			1,713,065
Agent balances, due premiums and other receivables		223,923			210,448
Intangible assets, net (accumulated amortization: $76,933 in 2017 and $75,231 in 2016)		53,214			54,915
Income taxes		39,764			37,369
Other assets		386,279			334,274
Separate account assets		2,424,937			2,287,953
Total assets	$	11,945,298		$	11,438,943
Liabilities and Stockholders’ Equity:
Liabilities:
Future policy benefits	$	5,812,217		$	5,673,890
Unearned premiums		500			527
Policy claims and other benefits payable		267,630			268,136
Other policyholders’ funds		377,313			363,038
Notes payable		373,103			372,919
Surplus note		634,980			502,491
Income taxes		241,314			225,006
Other liabilities		428,176			449,963
Payable under securities lending		115,875			73,646
Separate account liabilities		2,424,937			2,287,953
Commitments and contingent liabilities (see Commitments and Contingent Liabilities note)
Total liabilities		10,676,045			10,217,569
Stockholders’ equity:
Common stock ($0.01 par value; authorized 500,000 in 2017 and 2016; issued and    outstanding 45,035 shares in 2017 and 45,721 shares in 2016)		450			457
Paid-in capital		-			52,468
Retained earnings		1,224,375			1,138,851
Accumulated other comprehensive income (loss), net of income tax:
Unrealized foreign currency translation gains (losses)		(5,401	)		(13,193	)
Net unrealized investment gains (losses):
Net unrealized investment gains not other-than-temporarily impaired		49,883			42,852
Net unrealized investment losses other-than-temporarily impaired		(54	)		(61	)
Total stockholders’ equity		1,269,253			1,221,374
Total liabilities and stockholders’ equity	$	11,945,298		$	11,438,943

See accompanying notes to condensed consolidated financial statements.

1

PRIMERICA, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income – Unaudited

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(In thousands, except per-share amounts)
Revenues:
Direct premiums	$	637,426		$	612,189		$	1,265,124		$	1,209,319
Ceded premiums		(406,043	)		(406,683	)		(805,811	)		(802,017	)
Net premiums		231,383			205,506			459,313			407,302
Commissions and fees		148,317			136,902			292,584			265,723
Investment income net of investment expenses		25,829			24,994			51,442			50,387
Interest expense on surplus note		(6,087	)		(4,605	)		(11,806	)		(8,760	)
Net investment income		19,742			20,389			39,636			41,627
Realized investment gains (losses), including other-than-    temporary impairment losses		104			3,440			238			2,657
Other, net		14,150			12,757			27,089			24,284
Total revenues		413,696			378,994			818,860			741,593
Benefits and expenses:
Benefits and claims		99,512			88,984			201,897			179,961
Amortization of deferred policy acquisition costs		47,861			38,720			99,710			81,849
Sales commissions		75,440			70,146			149,144			136,789
Insurance expenses		36,920			32,906			74,541			66,035
Insurance commissions		5,157			4,472			10,057			8,619
Interest expense		7,143			7,178			14,270			14,350
Other operating expenses		45,274			44,708			98,011			91,898
Total benefits and expenses		317,307			287,114			647,630			579,501
Income before income taxes		96,389			91,880			171,230			162,092
Income taxes		33,282			32,554			56,054			57,590
Net income	$	63,107		$	59,326		$	115,176		$	104,502
Earnings per share:
Basic earnings per share	$	1.36		$	1.23		$	2.48		$	2.15
Diluted earnings per share	$	1.36		$	1.23		$	2.47		$	2.15
Weighted-average shares used in computing earnings    per share:
Basic		45,984			47,658			46,142			48,104
Diluted		46,071			47,708			46,222			48,141
Supplemental disclosures:
Total impairment losses	$	(484	)	$	(803	)	$	(695	)	$	(2,830	)
Impairment losses recognized in other comprehensive income    before income taxes		-			-			-			-
Net impairment losses recognized in earnings		(484	)		(803	)		(695	)		(2,830	)
Other net realized investment gains		588			4,243			933			5,487
Realized investment gains (losses), including other-than-   temporary impairment losses	$	104		$	3,440		$	238		$	2,657
Dividends declared per share	$	0.19		$	0.17		$	0.38		$	0.34

See accompanying notes to condensed consolidated financial statements.

2

PRIMERICA, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Loss) – Unaudited

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(In thousands)
Net income	$	63,107		$	59,326		$	115,176		$	104,502
Other comprehensive income (loss) before income taxes:
Unrealized investment gains (losses):
Change in unrealized holding gains (losses) on investment    securities		3,889			33,568			11,170			58,284
Reclassification adjustment for realized investment (gains)    losses included in net income		(273	)		(3,219	)		(341	)		(2,332	)
Foreign currency translation adjustments:
Change in unrealized foreign currency translation gains    (losses) before income tax expense (benefit)		6,753			(1,167	)		7,880			14,869
Total other comprehensive income (loss) before income    taxes		10,369			29,182			18,709			70,821
Income tax expense (benefit) related to items of other    comprehensive income (loss)		1,339			10,612			3,879			19,741
Other comprehensive income (loss), net of income taxes		9,030			18,570			14,830			51,080
Total comprehensive income	$	72,137		$	77,896		$	130,006		$	155,582

See accompanying notes to condensed consolidated financial statements.

3

PRIMERICA, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders’ Equity – Unaudited

	Six months ended June 30,
	2017			2016
	(In thousands)
Common stock:
Balance, beginning of period	$	457		$	483
Repurchases of common stock		(11	)		(21	)
Net issuance of common stock		4			4
Balance, end of period		450			466
Paid-in capital:
Balance, beginning of period		52,468			180,250
Share-based compensation		17,092			16,873
Net issuance of common stock		(4	)		(4	)
Repurchases of common stock		(69,556	)		(94,294	)
Balance, end of period		-			102,825
Retained earnings:
Balance, beginning of period		1,138,851			952,804
Net income		115,176			104,502
Dividends		(17,680	)		(16,446	)
Repurchases of common stock		(11,972	)		-
Balance, end of period		1,224,375			1,040,860
Accumulated other comprehensive income (loss):
Balance, beginning of period		29,598			12,235
Change in foreign currency translation adjustment,     net of income tax expense (benefit)		7,792			14,710
Change in net unrealized investment gains (losses)    during the period, net of income taxes:
Change in net unrealized investment gains (losses) not-other-     than temporarily impaired, net of income tax expense (benefit)		7,031			36,365
Change in net unrealized investment losses other-than-temporarily      impaired, net of income tax expense (benefit)		7			5
Balance, end of period		44,428			63,315
Total stockholders’ equity	$	1,269,253		$	1,207,466

See accompanying notes to condensed consolidated financial statements.

4

PRIMERICA, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows – Unaudited

	Six months ended June 30,
	2017			2016
	(In thousands)
Cash flows from operating activities:
Net income	$	115,176		$	104,502
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Change in future policy benefits and other policy liabilities		139,105			116,415
Deferral of policy acquisition costs		(208,391	)		(183,145	)
Amortization of deferred policy acquisition costs		99,710			81,849
Change in income taxes		5,782			36,306
Excess tax benefits on share-based compensation		4,238			1,448
Realized investment (gains) losses, including other-than-temporary impairments		(238	)		(2,657	)
Accretion and amortization of investments		(684	)		(723	)
Depreciation and amortization		6,994			7,108
Change in due from reinsurers		11,394			(17,062	)
Change in agent balances, due premiums and other receivables		(13,475	)		(24,445	)
Trading securities sold, matured, or called (acquired), net		(8,173	)		(2,658	)
Share-based compensation		11,667			10,031
Change in other operating assets and liabilities, net		(43,235	)		(21,620	)
Net cash provided by (used in) operating activities		119,870			105,349
Cash flows from investing activities:
Available-for-sale investments sold, matured or called:
Fixed-maturity securities — sold		43,232			69,925
Fixed-maturity securities — matured or called		98,904			137,044
Equity securities		562			3,297
Available-for-sale investments acquired:
Fixed-maturity securities		(214,974	)		(133,604	)
Equity securities		(212	)		(986	)
Purchases of property and equipment and other investing activities, net		(6,194	)		(10,679	)
Cash collateral received (returned) on loaned securities, net		42,229			20,419
Sales (purchases) of short-term investments using securities lending collateral, net		(42,229	)		(20,419	)
Net cash provided by (used in) investing activities		(78,682	)		64,997
Cash flows from financing activities:
Dividends paid		(17,680	)		(16,446	)
Common stock repurchased		(75,042	)		(90,558	)
Tax withholdings on share-based compensation		(6,497	)		(3,757	)
Net cash provided by (used in) financing activities		(99,219	)		(110,761	)
Effect of foreign exchange rate changes on cash		554			1,212
Change in cash and cash equivalents		(57,477	)		60,797
Cash and cash equivalents, beginning of period		211,976			152,294
Cash and cash equivalents, end of period	$	154,499		$	213,091

See accompanying notes to condensed consolidated financial statements.

5

PRIMERICA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements — Unaudited

(1) Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies

Description of Business. Primerica, Inc. (the "Parent Company"), together with its subsidiaries (collectively, "we", "us" or the "Company"), is a leading distributor of financial products to middle-income households in the United States and Canada. We assist our clients in meeting their needs for term life insurance, which we underwrite, and mutual funds, annuities, managed investments and other financial products, which we distribute primarily on behalf of third parties. Our primary subsidiaries include the following entities: Primerica Financial Services, Inc. ("PFS"), a general agency and marketing company; Primerica Life Insurance Company ("Primerica Life"), our principal life insurance company; Primerica Financial Services (Canada) Ltd., a holding company for our Canadian operations, which includes Primerica Life Insurance Company of Canada ("Primerica Life Canada") and PFSL Investments Canada Ltd. ("PFSL Investments Canada"); and PFS Investments Inc. ("PFS Investments"), an investment products company and broker-dealer. Primerica Life, domiciled in Massachusetts, owns National Benefit Life Insurance Company ("NBLIC"), a New York insurance company. We established Peach Re, Inc. ("Peach Re") and Vidalia Re, Inc. (“Vidalia Re”) as special purpose financial captive insurance companies and wholly owned subsidiaries of Primerica Life. Peach Re and Vidalia Re have each entered into separate coinsurance agreements with Primerica Life whereby Primerica Life has ceded certain level-premium term life insurance policies to Peach Re and Vidalia Re (respectively, the “Peach Re Coinsurance Agreement” and the “Vidalia Re Coinsurance Agreement”).

Basis of Presentation. We prepare our financial statements in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). These principles are established primarily by the Financial Accounting Standards Board ("FASB"). The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect financial statement balances, revenues and expenses and cash flows, as well as the disclosure of contingent assets and liabilities. Management considers available facts and knowledge of existing circumstances when establishing the estimates included in our financial statements.

The accompanying unaudited condensed consolidated financial statements contain all adjustments, generally consisting of normal recurring accruals, which are necessary to fairly present the balance sheets as of June 30, 2017 and December 31, 2016, the statements of income and comprehensive income (loss) for the three and six months ended June 30, 2017 and 2016, and the statements of stockholders' equity and cash flows for the six months ended June 30, 2017 and 2016. Results of operations for interim periods are not necessarily indicative of results for the entire year or of the results to be expected in future periods.

These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are sufficient to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2016 ("2016 Annual Report").

Use of Estimates. The most significant items that involve a greater degree of accounting estimates and actuarial determinations subject to change in the future are the valuation of investments, deferred policy acquisition costs ("DAC"), liabilities for future policy benefits and unpaid policy claims, and income taxes. Estimates for these and other items are subject to change and are reassessed by management in accordance with U.S. GAAP. Actual results could differ from those estimates.

Consolidation. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and those entities required to be consolidated under applicable accounting standards. All material intercompany profits, transactions, and balances among the consolidated entities have been eliminated.

Reclassifications. Certain reclassifications have been made to prior-period amounts to conform to current-period reporting classifications. These reclassifications had no impact on net income or total stockholders' equity.

Significant Accounting Policies. All significant accounting policies remain unchanged from the 2016 Annual Report.

New Accounting Principles. In March 2016, the FASB issued Accounting Standards Update No 2016-09 (“ASU 2016-09”) Compensation—Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 intends to simplify several aspects of the accounting for share-based payment transactions, including the recognition of income tax consequences of awards, the classification of awards as either equity or liabilities, the method of recognizing award forfeitures, and the presentation of items within the statement of cash flows. The most notable impact on the Company’s financial statements involved the change in accounting for the income tax consequences associated with share-based payment transactions in the income statement. Prior to the adoption of ASU 2016-09, the tax effect of the difference between the cumulative compensation cost of a share-based award recognized for financial reporting purposes and the deduction of the award for tax purposes (“excess tax benefits or deficiencies”) was recognized as an adjustment to additional paid-in capital in the statement of stockholders’ equity. The amendments in ASU 2016-09 require that the excess tax benefits or deficiencies be recognized as a reduction to or an increase of income tax expense in the income statement. We adopted the amendments in ASU 2016-09 pertaining to excess tax benefits or deficiencies during

6

the first quarter of 2017 on a prospective basis, which resulted in a reduction of income tax expense of approximately $0.9 million and $4.2 million for the excess tax benefit of share-based transactions for the three and six months ended June 30, 2017, respectively. ASU 2016-09 also changes the presentation of excess tax benefits or deficiencies in the cash flow statement from a financing activity to an operating activity. Therefore, we have presented the excess tax benefits or deficiencies as cash flows from operating activities within the accompanying consolidated statements of cash flows for all periods presented. The adoption of all other amendments outlined in ASU 2016-09 had either no impact to our financial statements or an immaterial impact to our financial statements.

Future Application of Accounting Standards. Recent accounting guidance not discussed above is not applicable, is immaterial to our financial statements, or did not or is not expected to have a material impact on our business. For additional information on new accounting pronouncements and recent accounting principles and their impact, if any, on our financial position or results of operations, see Note 1 (Description of Business, Basis of Presentation, and Summary of Accounting Policies) to our consolidated financial statements within our 2016 Annual Report and in the unaudited condensed consolidated financial statements included in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017.

Subsequent Events. The Company has evaluated subsequent events for recognition and disclosure for occurrences and transactions after the date of the unaudited condensed consolidated financial statements dated as of June 30, 2017.

(2) Segment and Geographical Information

Segments. We have two primary operating segments — Term Life Insurance and Investment and Savings Products. We also have a Corporate and Other Distributed Products segment.

Notable information included in profit or loss by segment was as follows:

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(In thousands)
Revenues:
Term life insurance segment	$	238,901		$	210,559		$	472,953		$	416,655
Investment and savings products segment		143,774			132,608			284,180			257,525
Corporate and other distributed products segment		31,021			35,827			61,727			67,413
Total revenues	$	413,696		$	378,994		$	818,860		$	741,593
Net investment income:
Term life insurance segment	$	2,347		$	1,871		$	4,650		$	3,721
Investment and savings products segment		-			-			-			-
Corporate and other distributed products segment		17,395			18,518			34,986			37,906
Total net investment income	$	19,742		$	20,389		$	39,636		$	41,627
Amortization of DAC:
Term life insurance segment	$	44,937		$	36,477		$	95,070		$	77,702
Investment and savings products segment		2,310			1,704			4,044			3,623
Corporate and other distributed products segment		614			539			596			524
Total amortization of DAC	$	47,861		$	38,720		$	99,710		$	81,849
Non-cash share-based compensation expense:
Term life insurance segment	$	301		$	349		$	2,077		$	1,982
Investment and savings products segment		361			347			1,541			1,503
Corporate and other distributed products segment		1,261			1,853			8,049			6,546
Total non-cash share-based compensation expense	$	1,923		$	2,549		$	11,667		$	10,031
Income (loss) before income taxes:
Term life insurance segment	$	61,854		$	58,018		$	110,877		$	104,098
Investment and savings products segment		39,684			36,064			76,803			67,755
Corporate and other distributed products segment		(5,149	)		(2,202	)		(16,450	)		(9,761	)
Total income before income taxes	$	96,389		$	91,880		$	171,230		$	162,092

7

Total assets by segment were as follows:

	June 30, 2017		December 31, 2016
	(In thousands)
Assets:
Term life insurance segment	$	6,066,410	$	5,945,502
Investment and savings products segment (1)		2,537,909		2,391,512
Corporate and other distributed products segment		3,340,979		3,101,929
Total assets	$	11,945,298	$	11,438,943

⁽¹⁾ The Investment and Savings Products segment includes assets held in separate accounts. Excluding separate accounts, the Investment and Savings Products segment assets were approximately $113.1 million and $103.7 million as of June 30, 2017 and December 31, 2016, respectively.

Geographical Information. Results of operations by country and long-lived assets, primarily tangible assets reported in other assets in our unaudited condensed consolidated balance sheets, were as follows:

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
	(In thousands)
Revenues by country:
United States	$	349,388	$	319,154	$	689,182	$	624,056
Canada		64,308		59,840		129,678		117,537
Total revenues	$	413,696	$	378,994	$	818,860	$	741,593
Income before income taxes by country:
United States	$	77,511	$	73,653	$	135,543	$	128,610
Canada		18,878		18,227		35,687		33,482
Total income before income taxes	$	96,389	$	91,880	$	171,230	$	162,092

	June 30, 2017		December 31, 2016
	(In thousands)
Long-lived assets by country:
United States	$	30,402	$	26,685
Canada		772		780
Total long-lived assets	$	31,174	$	27,465

(3) Investments

Available-for-sale Securities. The period-end cost or amortized cost, gross unrealized gains and losses, and fair value of available-for-sale fixed-maturity and equity securities follow:

	June 30, 2017
	Cost or amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
	(In thousands)
Securities available-for-sale, carried at fair value:
Fixed-maturity securities:
U.S. government and agencies	$	9,087	$	311	$	(16	)	$	9,382
Foreign government		132,465		6,752		(358	)		138,859
States and political subdivisions		52,101		1,968		(92	)		53,977
Corporates		1,328,419		53,378		(3,034	)		1,378,763
Residential mortgage-backed securities		94,643		4,409		(116	)		98,936
Commercial mortgage-backed securities		125,096		2,880		(316	)		127,660
Other asset-backed securities		81,079		482		(155	)		81,406
Total fixed-maturity securities(1)		1,822,890		70,180		(4,087	)		1,888,983
Equity securities		35,369		10,667		(100	)		45,936
Total fixed-maturity and equity securities	$	1,858,259	$	80,847	$	(4,187	)	$	1,934,919

⁽¹⁾ Includes approximately $0.1 million of other-than-temporary impairment (“OTTI”) losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income.

8

	December 31, 2016
	Cost or amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
	(In thousands)
Securities available-for-sale, carried at fair value:
Fixed-maturity securities:
U.S. government and agencies	$	10,148	$	350	$	(24	)	$	10,474
Foreign government		124,274		5,719		(687	)		129,306
States and political subdivisions		43,950		1,903		(129	)		45,724
Corporates		1,281,630		49,272		(5,529	)		1,325,373
Residential mortgage-backed securities		94,708		4,963		(120	)		99,551
Commercial mortgage-backed securities		107,201		2,712		(470	)		109,443
Other asset-backed securities		72,772		98		(303	)		72,567
Total fixed-maturity securities(1)		1,734,683		65,017		(7,262	)		1,792,438
Equity securities		36,818		8,589		(513	)		44,894
Total fixed-maturity and equity securities	$	1,771,501	$	73,606	$	(7,775	)	$	1,837,332

⁽¹⁾ Includes approximately $0.1 million of OTTI related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income.

All of our available-for-sale mortgage- and asset-backed securities represent variable interests in variable interest entities ("VIEs"). We are not the primary beneficiary of these VIEs because we do not have the power to direct the activities that most significantly impact the entities’ economic performance. The maximum exposure to loss as a result of our involvement in these VIEs equals the carrying value of the securities.

The scheduled maturity distribution of the available-for-sale fixed-maturity portfolio at June 30, 2017 follows:

	Amortized cost		Fair value
	(In thousands)
Due in one year or less	$	140,732	$	142,901
Due after one year through five years		752,673		785,331
Due after five years through 10 years		580,961		599,415
Due after 10 years		47,706		53,334
		1,522,072		1,580,981
Mortgage- and asset-backed securities		300,818		308,002
Total fixed-maturity securities	$	1,822,890	$	1,888,983

Expected maturities may differ from scheduled contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties.

Unrealized Gains and Losses on Investments. The net effect on stockholders’ equity of unrealized gains and losses on available-for-sale investments was as follows:

	June 30, 2017			December 31, 2016
	(In thousands)
Net unrealized investment gains including OTTI:
Fixed-maturity and equity securities	$	76,660		$	65,831
OTTI		83			95
Net unrealized investment gains excluding OTTI		76,743			65,926
Deferred income taxes		(26,860	)		(23,074	)
Net unrealized investment gains excluding OTTI, net of tax	$	49,883		$	42,852

Trading Securities. We maintain a portfolio mostly of fixed-maturity securities that are classified as trading securities. The costs and fair values of the fixed-maturity and equity securities classified as trading securities were as follows:

	June 30, 2017				December 31, 2016
	Cost		Fair value		Cost		Fair value
	(In thousands)
Fixed-maturity securities	$	14,238	$	14,236	$	7,332	$	7,332
Equity securities		1,300		1,305		50		51
Total fixed-maturity and equity securities	$	15,538	$	15,541	$	7,382	$	7,383

Held-to-maturity Security. Concurrent with the execution of the Vidalia Re Coinsurance Agreement, Vidalia Re entered into a Surplus Note Purchase Agreement (the "Surplus Note Purchase Agreement") with Hannover Life Reassurance Company of America and certain of its affiliates (collectively, “Hannover Re”) and a newly formed limited liability company (the "LLC") owned by a third party service provider. Under the Surplus Note Purchase Agreement, Vidalia Re issued a surplus note (the “Surplus Note”) to the LLC

9

in exchange for a credit enhanced note from the LLC with an equal principal amount (the “LLC Note”). The principal amount of both the LLC Note and the Surplus Note will fluctuate over time to coincide with the amount of reserves contractually supported under the Vidalia Re Coinsurance Agreement. Both the LLC Note and the Surplus Note mature on December 31, 2030 and bear interest at an annual interest rate of 4.50%. The LLC Note is guaranteed by Hannover Re through a credit enhancement feature in exchange for a fee, which is reflected in interest expense on our unaudited condensed consolidated statements of income.

The LLC is a VIE as its owner does not have an equity investment at risk that is sufficient to permit the LLC to finance its activities without Vidalia Re or Hannover Re. The Parent Company, Primerica Life, and Vidalia Re share the power to direct the activities of the LLC with Hannover Re, but do not have the obligation to absorb losses or the right to receive any residual returns related to the LLC’s primary risks or sources of variability. Through the credit enhancement feature, Hannover Re is the ultimate risk taker in this transaction and bears the obligation to absorb the LLC’s losses in the event of a Surplus Note default in exchange for the fee. Accordingly, the Company is not the primary beneficiary of the LLC and does not consolidate the LLC within its consolidated financial statements.

The LLC Note is classified as a held-to-maturity debt security in the Company’s invested asset portfolio as we have the positive intent and ability to hold the security until maturity. As of June 30, 2017, the LLC Note, which was rated A+ by Fitch Ratings, had an estimated unrealized holding gain of $30.1 millionbased on its amortized cost and estimated fair value, which is derived using the valuation techniques described in Note 4 (Fair Value of Financial Instruments).

See Note 12 (Debt) for more information on the Surplus Note.

Investments on Deposit with Governmental Authorities. As required by law, we have investments on deposit with governmental authorities and banks for the protection of policyholders. The fair values of investments on deposit were approximately $17.9 million and $18.2 million as of June 30, 2017 and December 31, 2016, respectively.

Securities Lending Transactions. We participate in securities lending transactions with broker-dealers and other financial institutions to increase investment income with minimal risk. We require minimum collateral on securities loaned equal to 102% of the fair value of the loaned securities. We accept collateral in the form of securities, which we are not able to sell or encumber, and to the extent the collateral declines in value below 100%, we require additional collateral from the borrower. Any securities collateral received is not reflected on our unaudited condensed consolidated balance sheets. We also accept collateral in the form of cash, all of which we reinvest. For loans involving unrestricted cash collateral, the collateral is reported as an asset with a corresponding liability representing our obligation to return the collateral. We continue to carry the loaned securities as invested assets on our unaudited condensed consolidated balance sheets during the terms of the loans, and we do not report them as sales. Cash collateral received and reinvested was approximately $115.9 million and $73.6 million as of June 30, 2017 and December 31, 2016, respectively.

Investment Income. The components of net investment income were as follows:

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(In thousands)
Fixed-maturity securities (available-for-sale)	$	19,200		$	18,377		$	38,269		$	37,626
Fixed-maturity security (held-to-maturity)		6,087			4,605			11,806			8,760
Equity securities		515			502			1,051			1,021
Policy loans and other invested assets		316			351			622			681
Cash and cash equivalents		246			200			439			349
Total return on deposit asset underlying    10% coinsurance agreement		770			2,185			1,801			4,385
Gross investment income		27,134			26,220			53,988			52,822
Investment expenses		(1,305	)		(1,226	)		(2,546	)		(2,435	)
Investment income net of investment expenses		25,829			24,994			51,442			50,387
Interest expense on surplus note		(6,087	)		(4,605	)		(11,806	)		(8,760	)
Net investment income	$	19,742		$	20,389		$	39,636		$	41,627

The components of net realized investment gains (losses) as well as details on gross realized investment gains and losses and proceeds from sales or other redemptions were as follows:

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(In thousands)
Net realized investment gains (losses):
Gross gains from sales	$	770		$	4,400		$	1,064		$	5,685
Gross losses from sales		(13	)		(378	)		(28	)		(523	)
OTTI losses		(484	)		(803	)		(695	)		(2,830	)
Gains (losses) from bifurcated options		(169	)		221			(103	)		325
Net realized investment gains (losses)	$	104		$	3,440		$	238		$	2,657

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Other-Than-Temporary Impairment. We conduct a review each quarter to identify and evaluate impaired investments that have indications of possible OTTI. An investment in a debt or equity security is impaired if its fair value falls below its cost. Factors considered in determining whether an unrealized loss is temporary include the length of time and extent to which fair value has been below cost, the financial condition and near-term prospects for the issue, and our ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery, which may be maturity for fixed-maturity securities or within a reasonable period of time for equity securities. For additional information, see Note 4 (Investments) to the consolidated financial statements in our 2016 Annual Report.

Available-for-sale fixed-maturity and equity securities with a cost basis in excess of their fair values were approximately $322.3 million and $450.9 million as of June 30, 2017 and December 31, 2016, respectively.

The following tables summarize, for all available-for-sale securities in an unrealized loss position, the aggregate fair value and the gross unrealized loss by length of time such securities have continuously been in an unrealized loss position:

	June 30, 2017
	Less than 12 months							12 months or longer
	Fair value		Unrealized losses			Number of securities		Fair value		Unrealized losses			Number of securities
	(Dollars in thousands)
Fixed-maturity securities:
U.S. government and agencies	$	5,247	$	(16	)		6	$	-	$	-			-
Foreign government		29,301		(314	)		32		1,272		(44	)		2
States and political subdivisions		8,187		(92	)		10		-		-			-
Corporates		145,814		(1,885	)		125		22,838		(1,149	)		29
Residential mortgage-backed securities		15,066		(97	)		8		2,493		(19	)		9
Commercial mortgage-backed securities		36,044		(266	)		32		7,585		(50	)		11
Other asset-backed securities		42,259		(148	)		43		1,196		(7	)		2
Total fixed-maturity securities		281,918		(2,818	)				35,384		(1,269	)
Equity securities		403		(11	)		9		402		(89	)		7
Total fixed-maturity and equity    securities	$	282,321	$	(2,829	)			$	35,786	$	(1,358	)

	December 31, 2016
	Less than 12 months							12 months or longer
	Fair value		Unrealized losses			Number of securities		Fair value		Unrealized losses			Number of securities
	(Dollars in thousands)
Fixed-maturity securities:
U.S. government and agencies	$	3,668	$	(24	)		4	$	-	$	-			-
Foreign government		34,538		(526	)		36		3,048		(161	)		3
States and political subdivisions		8,902		(129	)		12		-		-			-
Corporates		232,070		(3,484	)		225		45,471		(2,045	)		51
Residential mortgage-backed securities		15,232		(92	)		9		3,606		(28	)		9
Commercial mortgage-backed securities		33,335		(423	)		33		7,663		(47	)		11
Other asset-backed securities		48,275		(260	)		45		1,315		(43	)		3
Total fixed-maturity securities		376,020		(4,938	)				61,103		(2,324	)
Equity securities		4,179		(269	)		12		1,852		(244	)		8
Total fixed-maturity and equity    securities	$	380,199	$	(5,207	)			$	62,955	$	(2,568	)

The amortized cost and fair value of available-for-sale fixed-maturity securities in default were as follows:

	June 30, 2017				December 31, 2016
	Amortized cost		Fair value		Amortized cost		Fair value
	(In thousands)
Fixed-maturity securities in default	$	3	$	141	$	5	$	125

Impairment charges recognized in earnings on available-for-sale securities were as follows:

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
	(In thousands)
Impairments on fixed-maturity securities not in default	$	459	$	683	$	535	$	2,679
Impairments on fixed-maturity securities in default		-		115		-		119
Impairments on equity securities		25		5		160		32
Total impairment charges	$	484	$	803	$	695	$	2,830

11

The securities noted above were considered to be other-than-temporarily impaired due to: our intent to sell them; adverse credit events, such as news of an impending filing for bankruptcy; analyses of the issuer’s most recent financial statements or other information in which liquidity deficiencies, significant losses and large declines in capitalization were evident; or analyses of rating agency information for issuances with severe ratings downgrades that indicated a significant increase in the possibility of default. We also recognized impairment losses related to invested assets held at the Parent company that we intended to sell to fund share repurchases, as well as impairments on equity securities where we do not expect to recover its cost basis.

As of June 30, 2017, the unrealized losses on our available-for-sale invested asset portfolio were largely caused by interest rate sensitivity and changes in credit spreads. We believe that fluctuations caused by movement in interest rates and credit spreads have little bearing on the recoverability of our investments. We do not consider these investments to be other-than-temporarily impaired because we have the ability to hold these investments until maturity or a market price recovery, and we have no present intention to dispose of them.  

Net impairment losses recognized in earnings for available-for-sale securities were as follows:

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
	(In thousands)
Total impairment losses related to securities which the Company    does not intend to sell or more-likely-than-not will not be    required to sell:
Total OTTI losses recognized	$	459	$	488	$	535	$	929
Less portion of OTTI loss recognized in accumulated other    comprehensive income (loss)		-		-		-		-
Net impairment losses recognized in earnings for securities    which the Company does not intend to sell or more-likely-    than-not will not be required to sell before recovery		459		488		535		929
OTTI losses recognized in earnings for securities which the    Company intends to sell or more-likely-than-not will be    required to sell before recovery		25		315		160		1,901
Net impairment losses recognized in earnings	$	484	$	803	$	695	$	2,830

The rollforward of the OTTI recognized in net income for all fixed-maturity securities still held follows:

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(In thousands)
Cumulative OTTI recognized in net income for securities still      held, beginning of period	$	5,759		$	10,880		$	5,774		$	11,856
Additions for OTTI securities where no OTTI were recognized      prior to the beginning of the period		-			798			-			1,231
Additions for OTTI securities where OTTI have been recognized      prior to the beginning of the period		459			-			535			1,567
Reductions due to sales, maturities, calls, amortization or      increases in cash flows expected to be collected over the      remaining life of credit impaired securities		(643	)		(3,574	)		(597	)		(5,494	)
Reductions for exchanges of securities previously impaired		-			(615	)		(137	)		(1,671	)
Cumulative OTTI recognized in net income for securities      still held, end of period	$	5,575		$	7,489		$	5,575		$	7,489

As of June 30, 2017, no impairment losses have been recognized on the LLC Note held-to-maturity security.

Derivatives. Embedded conversion options associated with fixed-maturity securities are bifurcated from the fixed-maturity security host contracts and separately recognized as equity securities. The change in fair value of these bifurcated conversion options is reflected in realized investment gains (losses), including OTTI losses. The fair value of these bifurcated options was approximately $4.5 million as of June 30, 2017 and $4.3million as of December 31, 2016.

We have a deferred loss related to closed forward contracts, which were settled several years ago, that were used to mitigate our exposure to foreign currency exchange rates that resulted from the net investment in our Canadian operations. The amount of deferred loss included in accumulated other comprehensive income was approximately $26.4 millionas of June 30, 2017 and December 31, 2016. These deferred losses will not be recognized until such time as we sell or substantially liquidate our Canadian operations; although we have no such intention.

12

(4) Fair Value of Financial Instruments

Fair value is the price that would be received upon the sale of an asset in an orderly transaction between market participants at the measurement date. Fair value measurements are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our view of market assumptions in the absence of observable market information. We classify and disclose all invested assets carried at fair value in one of the following three categories:

• Level 1. Quoted prices for identical instruments in active markets. Level 1 primarily consists of financial instruments whose value is based on quoted market prices in active markets, such as exchange-traded common stocks and actively traded mutual fund investments;

• Level 2. Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 includes those financial instruments that are valued using industry-standard pricing methodologies, models or other valuation methodologies. Various inputs are considered in deriving the fair value of the underlying financial instrument, including interest rate, credit spread, and foreign exchange rates. All significant inputs are observable, or derived from observable information in the marketplace or are supported by observable levels at which transactions are executed in the marketplace. Financial instruments in this category primarily include: certain public and private corporate fixed-maturity and equity securities; government or agency securities; certain mortgage- and asset-backed securities and bifurcated conversion options; and

• Level 3. Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Level 3 consists of financial instruments whose fair value is estimated based on industry-standard pricing methodologies and models using significant inputs not based on, nor corroborated by, readily available market information. Valuations for this category primarily consist of non-binding broker quotes. Financial instruments in this category primarily include less liquid fixed-maturity corporate securities, mortgage-and asset-backed securities.

As of each reporting period, all assets and liabilities recorded at fair value are classified in their entirety based on the lowest level of input (Level 3 being the lowest) that is significant to the fair value measurement. Significant levels of estimation and judgment are required to determine the fair value of certain of our investments. The factors influencing these estimations and judgments are subject to change in subsequent reporting periods.

The estimated fair value and hierarchy classifications for assets and liabilities that are measured at fair value on a recurring basis were as follows:

	June 30, 2017
	Level 1		Level 2		Level 3		Total
	(In thousands)
Fair value assets:
Available-for-sale fixed-maturity securities:
U.S. government and agencies	$	-	$	9,382	$	-	$	9,382
Foreign government		-		138,859		-		138,859
States and political subdivisions		-		53,977		-		53,977
Corporates		3,445		1,375,315		3		1,378,763
Residential mortgage-backed securities		-		98,434		502		98,936
Commercial mortgage-backed securities		-		127,660		-		127,660
Other asset-backed securities		-		80,152		1,254		81,406
Total available-for-sale fixed-maturity securities		3,445		1,883,779		1,759		1,888,983
Available-for-sale equity securities		40,304		5,530		102		45,936
Trading securities		1,305		14,236		-		15,541
Separate accounts		-		2,424,937		-		2,424,937
Total fair value assets	$	45,054	$	4,328,482	$	1,861	$	4,375,397
Fair value liabilities:
Separate accounts	$	-	$	2,424,937	$	-	$	2,424,937
Total fair value liabilities	$	-	$	2,424,937	$	-	$	2,424,937

13

	December 31, 2016
	Level 1		Level 2		Level 3		Total
	(In thousands)
Fair value assets:
Available-for-sale fixed-maturity securities:
U.S. government and agencies	$	-	$	10,474	$	-	$	10,474
Foreign government		-		129,306		-		129,306
States and political subdivisions		-		45,724		-		45,724
Corporates		3,113		1,322,257		3		1,325,373
Residential mortgage-backed securities		-		98,966		585		99,551
Commercial mortgage-backed securities		-		109,443		-		109,443
Other asset-backed securities		-		65,075		7,492		72,567
Total available-for-sale fixed-maturity securities		3,113		1,781,245		8,080		1,792,438
Available-for-sale equity securities		39,556		5,256		82		44,894
Trading securities		-		7,383		-		7,383
Separate accounts		-		2,287,953		-		2,287,953
Total fair value assets	$	42,669	$	4,081,837	$	8,162	$	4,132,668
Fair value liabilities:
Separate accounts	$	-	$	2,287,953	$	-	$	2,287,953
Total fair value liabilities	$	-	$	2,287,953	$	-	$	2,287,953

In assessing fair value of our investments, we use a third-party pricing service for approximately 94% of our securities that are measured at fair value on a recurring basis. The remaining securities are primarily thinly traded securities such as private placements and are valued using models based on observable inputs on public corporate spreads having similar characteristics (e.g., sector, average life and quality rating) and liquidity and yield based on quality rating, average life and treasury yields. All observable data inputs are corroborated by independent third-party data. In the absence of sufficient observable inputs, we utilize non-binding broker quotes, which are reflected in our Level 3 classification as we are unable to evaluate the valuation technique(s) or significant inputs used to develop the quotes. Therefore, we do not internally develop the quantitative unobservable inputs used in measuring the fair value of Level 3 investments. However, we do corroborate pricing information provided by our third-party pricing servicing by performing a review of selected securities. Our review activities include obtaining detailed information about the assumptions, inputs and methodologies used in pricing the security; documenting this information; and corroborating it by comparison to independently obtained prices and or independently developed pricing methodologies.

Furthermore, we perform internal reasonableness assessments on fair value determinations within our portfolio throughout the quarter and at quarter-end, including pricing variance analyses and comparisons to alternative pricing sources and benchmark returns. If a fair value appears unusual relative to these assessments, we will re-examine the inputs and may challenge a fair value assessment made by the pricing service. If there is a known pricing error, we will request a reassessment by the pricing service. If the pricing service is unable to perform the reassessment on a timely basis, we will determine the appropriate price by requesting a reassessment from an alternative pricing service or other qualified source as necessary. We do not adjust quotes or prices except in a rare circumstance to resolve a known error.

Because many fixed-maturity securities do not trade on a daily basis, third party pricing services generally determine fair value using industry-standard methodologies, which vary by asset class. For corporates, governments, and agency securities, these methodologies include developing prices by incorporating available market information such as U.S. Treasury curves, benchmarking of similar securities including new issues, sector groupings, quotes from market participants and matrix pricing. Observable information is compiled and integrates relevant credit information, perceived market movements and sector news. Additionally, security prices are periodically back-tested to validate and/or refine models as conditions warrant. Market indicators and industry and economic events are also monitored as triggers to obtain additional data. For certain structured securities (such as mortgage-and asset-backed securities) with limited trading activity, third-party pricing services generally use industry-standard pricing methodologies that incorporate market information, such as index prices, or discounting expected future cash flows based on underlying collateral, and quotes from market participants, to estimate fair value. If these measures are not deemed observable for a particular security, the security will be classified as Level 3 in the fair value hierarchy.

Where specific market information is unavailable for certain securities, pricing models produce estimates of fair value primarily using Level 2 inputs along with certain Level 3 inputs. These models include matrix pricing. The pricing matrix uses current treasury rates and credit spreads received from third-party sources to estimate fair value. The credit spreads incorporate the issuer’s industry- or issuer-specific credit characteristics and the security’s time to maturity, if warranted. Remaining unpriced securities are valued using an estimate of fair value based on indicative market prices that include significant unobservable inputs not based on, nor corroborated by, market information, including the utilization of non-binding broker quotes.

14

The roll-forward of the Level 3 assets measured at fair value on a recurring basis was as follows:

	Three months ended June 30,						Six months ended June 30, (1)
	2017			2016			2017			2016
	(In thousands)
Level 3 assets, beginning of period	$	9,788		$	753		$	8,162		$	783
Net unrealized gains (losses) included in other    comprehensive income		236			(1	)		222			5
Realized gains (losses) and accretion (amortization)    recognized in earnings, including OTTI		3			1			10			5
Purchases		1,250			-			1,250			-
Sales		-			-			-			(3	)
Settlements		(213	)		(37	)		(441	)		(73	)
Transfers into Level 3		4			1			2,439			1
Transfers out of Level 3(2)		(9,207	)		-			(9,781	)		(1	)
Level 3 assets, end of period	$	1,861		$	717		$	1,861		$	717

(1) Activity for investments that enter Level 3 in one quarter and exit Level 3 in another quarter within the same fiscal year are not eliminated until year-end when only the full year amounts are presented.

(2) During the three and six months ended June 30, 2017, transfers out of Level 3 assets primarily consisted of recently purchased fixed-maturity securities in a previous quarter for which observable inputs, most notably quoted prices, used to derive valuations became readily available.

We obtain independent pricing quotes based on observable inputs as of the end of the reporting period for all securities in Level 2. Those inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, market bids/offers, quoted prices for similar instruments in markets that are not active, and other relevant data. We monitor these inputs for market indicators, industry and economic events. We recognize transfers into new levels and out of previous levels as of the end of the reporting period, including interim reporting periods, as applicable. There were no material transfers between Level 1 and Level 2 or between Level 1 and Level 3 during the three and six months ended June 30, 2017 and 2016.

The table below is a summary of the estimated fair value for financial instruments.

	June 30, 2017				December 31, 2016
	Carrying value		Estimated fair value		Carrying value		Estimated fair value
	(In thousands)
Assets:
Fixed-maturity securities (available-for-sale)	$	1,888,983	$	1,888,983	$	1,792,438	$	1,792,438
Fixed-maturity securities (held-to-maturity)		635,690		665,801		503,230		513,015
Equity securities (available-for-sale)		45,936		45,936		44,894		44,894
Trading securities		15,541		15,541		7,383		7,383
Policy loans		34,316		34,316		30,916		30,916
Deposit asset underlying 10% coinsurance agreement		211,387		211,387		202,435		202,435
Separate accounts		2,424,937		2,424,937		2,287,953		2,287,953
Liabilities:
Notes payable(1)	$	373,103	$	403,976	$	372,919	$	401,340
Surplus note(1)		634,980		664,759		502,491		512,669
Separate accounts		2,424,937		2,424,937		2,287,953		2,287,953

⁽¹⁾ Carrying value amounts shown are net of issuance costs.

The fair values of financial instruments presented above are estimates of the fair values at a specific point in time using various sources and methods, including market quotations and a complex matrix system that takes into account issuer sector, quality, and spreads in the current marketplace.

Recurring fair value measurements. Estimated fair values of investments in available-for-sale fixed-maturity securities are principally a function of current spreads and interest rates that are corroborated by independent third-party data. Therefore, the fair values presented are indicative of amounts we could realize or settle at the respective balance sheet date. We do not necessarily intend to dispose of or liquidate such instruments prior to maturity. Trading securities, which primarily consist of fixed-maturity securities, are carried at fair value. Equity securities, including common and nonredeemable preferred stocks, are carried at fair value. Segregated funds in separate accounts are carried at the underlying value of the variable insurance contracts, which is fair value.

Nonrecurring fair value measurements. The estimated fair value of the held-to-maturity fixed-maturity security, which is classified as a Level 3 fair value measurement, is derived using the credit spread on similarly-rated debt securities and the hypothetical spread of the security’s credit enhancement feature. Policy loans, which are categorized as Level 3 fair value measurements, are carried at the unpaid principal balances. The fair value of policy loans approximate the unpaid principal balances as the timing of repayment is uncertain and the loans are collateralized by the amount of the policy. The deposit asset underlying a 10% coinsurance agreement represents the value of the assets necessary to back the economic reserves held in support of the reinsurance agreement. The carrying

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value of this deposit asset approximates fair value, which is categorized as Level 3 in the fair value hierarchy. Notes payable represent our publicly-traded senior notes and are valued as a Level 2 fair value measurement using the quoted market price for our notes. The estimated fair value of the Surplus Noteis derived by using an assumed credit spread we would expect if Vidalia Re was a credit-rated entity and the hypothetical spread of the Surplus Note’s subordinated structure. The Surplus Note is classified as a Level 3 fair value measurement.

The carrying amounts for cash and cash equivalents, receivables, accrued investment income, accounts payable, cash collateral and payables for security transactions approximate their fair values due to the short-term nature of these instruments. Consequently, such financial instruments are not included in the above table.

(5) Reinsurance

We use reinsurance extensively, which has a significant effect on our results of operations. Reinsurance arrangements do not relieve us of our primary obligation to the policyholder. We monitor the concentration of credit risk we have with any reinsurer, as well as the financial condition of the reinsurers.

Details on in-force life insurance follow:

	June 30, 2017			December 31, 2016
	(Dollars in thousands)
Direct life insurance in force	$	749,737,546		$	731,822,070
Amounts ceded to other companies		(655,336,759	)		(643,364,460	)
Net life insurance in force	$	94,400,787		$	88,457,610
Percentage of reinsured life insurance in force		87	%		88	%

Due from reinsurers includes ceded reserve balances and ceded claim liabilities. Reinsurance receivable and financial strength ratings by reinsurer were as follows:

	June 30, 2017			December 31, 2016
	Reinsurance receivable		A.M. Best rating	Reinsurance receivable		A.M. Best rating
	(In thousands)
Pecan Re Inc.(1) (2)	$	2,733,159	NR	$	2,754,424	NR
SCOR Global Life Reinsurance Companies(3)		352,076	A		355,759	A
Munich Re of Malta(2)		292,737	NR		282,382	NR
Swiss Re Life & Health America Inc.(4)		254,773	A+		249,299	A+
American Health and Life Insurance Company(2)		175,138	B		176,010	B
Munich American Reassurance Company		107,122	A+		106,471	A+
Korean Reinsurance Company		98,349	A		96,921	A
RGA Reinsurance Company		85,333	A+		84,473	A+
Hannover Life Reassurance Company		29,361	A+		22,929	A+
TOA Reinsurance Company		24,937	A		23,977	A+
All other reinsurers		38,769	-		40,917	-
Due from reinsurers	$	4,191,754		$	4,193,562

NR – not rated

⁽¹⁾ Pecan Re Inc. is a wholly owned subsidiary of Swiss Re Life & Health America Inc.

⁽²⁾ Includes balances ceded under coinsurance transactions of term life insurance policies that were in force as of December 31, 2009. Amounts shown are net of their share of the reinsurance receivable from other reinsurers.

⁽³⁾ Includes amounts ceded to Transamerica Reinsurance Companies and fully retroceded to SCOR Global Life Reinsurance Companies.

⁽⁴⁾ Includes amounts ceded to Lincoln National Life Insurance and fullyretroceded to Swiss Re Life & Health America Inc.

Benefits and claims ceded to reinsurers for the three and six months ended June 30, 2017 were $334.3 million and $677.2 million, respectively, compared to $301.2 million and $605.0 million, respectively, for the three and six months ended June 30, 2016.

(6) Policy Claims and Other Benefits Payable

Changes in policy claims incurred and other benefits payable were as follows:

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	Six months ended June 30,
	2017			2016
	(In thousands)
Policy claims and other benefits payable, beginning of period	$	268,136		$	238,157
Less reinsured policy claims and other benefits payable		323,195			263,003
Net balance, beginning of period		(55,059	)		(24,846	)
Incurred related to current year		82,358			70,719
Incurred related to prior years(1)		2,033			(719	)
Total incurred		84,391			70,000
Claims paid related to current year, net of reinsured policy claims received		(122,097	)		(106,607	)
Reinsured policy claims received related to prior years, net of claims paid		57,146			31,603
Total paid		(64,951	)		(75,004	)
Foreign currency translation		154			429
Net balance, end of period		(35,465	)		(29,421	)
Add reinsured policy claims and other benefits payable		303,095			264,686
Balance, end of period	$	267,630		$	235,265

⁽¹⁾ Includes the difference between our estimate of claims incurred but not yet reported at period end and the actual incurred claims reported after period end.

The liability for policy claims and other benefits payable on traditional life insurance products includes estimated unpaid claims that have been reported to us and claims incurred but not yet reported. We estimate claims incurred but not yet reported based on our historical claims activity and payment lag time experience.

(7) Stockholders’ Equity

A reconciliation of the number of shares of our common stock follows.

	Six months ended June 30,
	2017			2016
	(In thousands)
Common stock, beginning of period		45,721			48,297
Shares issued for stock options exercised		38			108
Shares of common stock issued upon lapse of restricted stock units ("RSUs")		341			322
Common stock retired		(1,065	)		(2,125	)
Common stock, end of period		45,035			46,602

The above reconciliation excludes RSUs and performance-based stock units (“PSUs”), which do not have voting rights. As sales restrictions on RSUs lapse and PSUs are earned, we issue common shares with voting rights. As of June 30, 2017, we had a total of approximately 1.0 million RSUs and 54,431 PSUs outstanding.

On November 17, 2016, the Board of Directors authorized a share repurchase program for up to $200.0 million of our outstanding common shares (the “share repurchase program”) for purchases through June 30, 2018. Under the share repurchase program, we repurchased 967,337 shares of our common stock in open market transactions for an aggregate purchase price of approximately $75.0  million through June 30, 2017. Approximately $125.0 million remains for repurchases of our outstanding common stock under the share repurchase program as of June 30, 2017.

(8) Earnings Per Share

The Company has outstanding common stock and equity awards that consist of RSUs, PSUs and stock options. The RSUs maintain non-forfeitable dividend rights that result in dividend payment obligations on a one-to-one ratio with common shares for any future dividend declarations.

Unvested RSUs are deemed participating securities for purposes of calculating earnings per share ("EPS") as they maintain dividend rights. We calculate EPS using the two-class method. Under the two-class method, we allocate earnings to common shares and vested RSUs outstanding for the period. Earnings attributable to unvested participating securities, along with the corresponding share counts, are excluded from EPS as reflected in our unaudited condensed consolidated statements of income.

In calculating basic EPS, we deduct from net income any dividends and undistributed earnings allocated to unvested RSUs and then divide the result by the weighted-average number of common shares and vested RSUs outstanding for the period.

We determine the potential dilutive effect of PSUs and stock options outstanding (“contingently issuable shares”) on EPS using the treasury-stock method. Under this method, we determine the proceeds that would be received from the issuance of the contingently issuable shares if the end of the reporting period were the end of the contingency period. The proceeds from the contingently issuable shares include the remaining unrecognized compensation expense of the awards and the cash received for the exercise price on stock options. We then use the average market price of our common shares during the period the contingently issuable shares were

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outstanding to determine how many shares we could repurchase with the proceeds raised from the issuance of the contingently issuable shares. The net incremental share count issued represents the potential dilutive securities. We then reallocate earnings to common shares and vested RSUs by incorporating the increased fully diluted share count to determine diluted EPS.

The calculation of basic and diluted EPS follows.

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(In thousands, except per-share amounts)
Basic EPS:
Numerator:
Net income	$	63,107		$	59,326		$	115,176		$	104,502
Income attributable to unvested participating securities		(430	)		(491	)		(859	)		(861	)
Net income used in calculating basic EPS	$	62,677		$	58,835		$	114,317		$	103,641
Denominator:
Weighted-average vested shares		45,984			47,658			46,142			48,104
Basic EPS	$	1.36		$	1.23		$	2.48		$	2.15
Diluted EPS:
Numerator:
Net income	$	63,107		$	59,326		$	115,176		$	104,502
Income attributable to unvested participating securities		(430	)		(490	)		(857	)		(860	)
Net income used in calculating diluted EPS	$	62,677		$	58,836		$	114,319		$	103,642
Denominator:
Weighted-average vested shares		45,984			47,658			46,142			48,104
Dilutive effect of incremental shares to be issued for    contingently issuable shares		87			50			80			37
Weighted-average shares used in calculating diluted EPS		46,071			47,708			46,222			48,141
Diluted EPS	$	1.36		$	1.23		$	2.47		$	2.15

(9) Share-Based Transactions

The Company has outstanding equity awards under its Omnibus Incentive Plan ("OIP"). The OIP provides for the issuance of equity awards, including stock options, stock appreciation rights, restricted stock, deferred stock, RSUs, PSUs, unrestricted stock, as well as cash-based awards. In addition to time-based vesting requirements, awards granted under the OIP also may be subject to specified performance criteria. Since 2010, the Company has issued equity awards to our management (officers and other key employees), non-employees who serve on our Board of Directors, and sales force leaders under the OIP. For more information on equity awards granted under the OIP, see Note 14 (Share-Based Transactions) to our consolidated financial statements within our 2016 Annual Report.

In connection with our granting of equity awards to management and members of the Board of Directors, we recognize expense over the requisite service period of the equity award. Additionally, to the extent that equity awards to members of our sales force are an incremental direct cost of successful acquisitions of life insurance policies that result directly from and are essential to the policy acquisition(s) and would not have been incurred had the policy acquisition(s) not occurred, we defer and amortize the fair value of these awards in the same manner as other deferred policy acquisition costs.

The impacts of equity awards granted are as follows:

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
	(In thousands)
Total equity awards expense recognized	$	1,923	$	2,548	$	11,667	$	10,031
Quarterly incentive awards expense deferred		2,668		2,702		5,418		5,394

On February 16, 2017, the Compensation Committee of the Board of Directors granted the following equity awards to employees in connection with management’s annual incentive compensation:

• 116,104 RSUs awarded to management with a measurement-date fair value of $80.45 per unit that have time-based vesting requirements with equal and annual graded vesting over approximately three years subsequent to the grant date.

• 36,046 PSUs awarded to our four top executives with a measurement-date fair value of $80.45 per unit. The PSUs will be earned on March 1, 2020 contingent upon the Company achieving a target annual average three-year return on adjusted equity (“ROAE”) for the period from January 1, 2017 through December 31, 2019. The actual number of PSUs that will vest will vary based on the actual ROAE relative to the target ROAE and can range from zero PSUs to 54,069.  

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All awards granted to employees on February 16, 2017 vest upon voluntary termination of employment by any employee who is “retirement eligible” as of his or her termination date. In order to be retirement eligible, an employee must be at least 55 years old and his or her age plus years of service with the Company must equal at least 75. The number of PSUs that will ultimately vest for a retirement-eligible employee is equal to the amount calculated using the Company’s actual cumulative three-year ROAE ending on December 31, 2019, even if that employee retires prior to the completion of the three-year performance period.

(10) Commitments and Contingent Liabilities

Letter of Credit (“LOC”).Peach Re maintains a credit facility agreement with Deutsche Bank (the "Credit Facility Agreement") to support certain obligations for a portion of the Regulation XXX reserves related to the Peach Re Coinsurance Agreement. Under the Credit Facility Agreement, Deutsche Bank issued a letter of credit for the benefit of Primerica Life with a term ending on January 15, 2026. As of June 30, 2017, the Company was in compliance with all financial covenants under the Credit Facility Agreement. At June 30, 2017, the amount of the LOC outstanding was approximately $380.1 million. This amount will decline over the remaining term of the LOC to correspond with declines in the Regulation XXX reserves.

Further discussion on the Company’s letter of credit is included in Note 16 (Commitments and Contingent Liabilities) to our consolidated financial statements within our 2016 Annual Report.

Contingent Liabilities.The Company is involved from time to time in legal disputes, regulatory inquiries and arbitration proceedings in the normal course of business. These disputes are subject to uncertainties, including the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation. As such, the Company is unable to estimate the possible loss or range of loss that may result from these matters unless otherwise indicated.

The Company is currently undergoing multi-state treasurer unclaimed property audits by 30 jurisdictions focusing on the life insurance claims paying practices of its subsidiaries, Primerica Life and NBLIC. Other jurisdictions may pursue similar audits. The potential outcome of such audits is difficult to predict but could subject the Company to adverse consequences, including, but not limited to, settlement payments, additional payments to beneficiaries and additional escheatment of funds deemed abandoned under state laws. At this time, the Company cannot reasonably estimate the likelihood or the impact of additional costs or liabilities that could result from the resolution of these matters.

(11) Other Comprehensive Income

The components of other comprehensive income (“OCI”), including the income tax expense or benefit allocated to each component, were as follows:

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(In thousands)
Foreign currency translation adjustments:
Change in unrealized foreign currency translation gains (losses)    before income taxes	$	6,753		$	(1,167	)	$	7,880		$	14,869
Income tax expense (benefit) on unrealized foreign currency   translation gains (losses)		74			(10	)		88			159
Change in unrealized foreign currency translation gains   (losses), net of income taxes	$	6,679		$	(1,157	)	$	7,792		$	14,710
Unrealized gain (losses) on available-for-sale securities:
Change in unrealized holding gains (losses) arising during    period before income taxes	$	3,889		$	33,568		$	11,170		$	58,284
Income tax expense (benefit) on unrealized holding gains   (losses) arising during period		1,361			11,749			3,910			20,398
Change in unrealized holding gains (losses) on available-for-sale   securities arising during period, net of income taxes		2,528			21,819			7,260			37,886
Reclassification from accumulated OCI to net income for (gains)   losses realized on available-for-sale securities		(273	)		(3,219	)		(341	)		(2,332	)
Income tax (expense) benefit on (gains) losses reclassified from   accumulated OCI to net income		(96	)		(1,127	)		(119	)		(816	)
Reclassification from accumulated OCI to net income for (gains)   losses realized on available-for-sale securities, net of income   taxes		(177	)		(2,092	)		(222	)		(1,516	)
Change in unrealized gains (losses) on available-for-sale   securities, net of income taxes and reclassification adjustment	$	2,351		$	19,727		$	7,038		$	36,370

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(12) Debt

Notes Payable.At June 30, 2017, the Company had $375.0 million of publicly-traded, senior unsecured notes with an annual interest rate of 4.75% that are scheduled to mature on July 15, 2022 (the "Senior Notes"). As of June 30, 2017, we were in compliance with the covenants of the Senior Notes. No events of default occurred on the Senior Notes during the three or six months ended June 30, 2017.

Further discussion on the Company’s Senior Notes is included in Note 10 (Debt) to our consolidated financial statements within our 2016 Annual Report.

Surplus Note. In May 2017, Primerica Life and Vidalia Re amended the Vidalia Re Coinsurance Agreement (the “Expanded Vidalia Re Coinsurance Agreement”) whereby Primerica Life ceded level-premium term life insurance policies issued in 2015 and 2016 to Vidalia Re effective June 30, 2017. The Expanded Vidalia Re Coinsurance Agreement also provides the option for Primerica Life to cede level-premium term life insurance policies issued in 2017 to Vidalia Re at a future date. Concurrent with the execution of the Expanded Vidalia Re Coinsurance Agreement, Vidalia Re entered into an amendment to the Surplus Note Purchase Agreement (the "Expanded Surplus Note Purchase Agreement") with Hannover Re and the LLC. Under the Expanded Surplus Note Purchase Agreement, the capacity of the principal amount of both the Surplus Note and the credit-enhanced LLC Note will be increased over time in accordance with the expanded amount of policy reserves being contractually supported under the Expanded Vidalia Re Coinsurance Agreement. The maturity date of both notes has been extended from December 31, 2019 to December 31, 2030. Based on the estimated reserves for ceded policies issued in 2011 through 2016, the principal amounts of the Surplus Note and the LLC Note are expected to reach approximately $1.3 billion each. The amended financing arrangement remains non-recourse to the Parent Company and Primerica Life, meaning that neither of these companies has guaranteed the Surplus Note or is otherwise liable for reimbursement for any payments triggered by the credit enhancement feature. The Parent has agreed to support Vidalia Re’s obligation to pay the credit enhancement fee incurred on the LLC Note. No other material terms or conditions of the original Surplus Note Purchase Agreement were modified under the Expanded Surplus Note Purchase Agreement. At June 30, 2017, the principal amount outstanding on the Surplus Note issued by Vidalia Re was $635.7 million, equal to the principal amount of the LLC Note invested asset.

Further discussion on the Company’s Surplus Note and LLC Note are included in Note 10 (Debt) and Note 4 (Investments) to our consolidated financial statements within our 2016 Annual Report.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to inform the reader about matters affecting the financial condition and results of operations of Primerica, Inc. (the “Parent Company”) and its subsidiaries (collectively, "we", "us" or the “Company”) for the period from December 31, 2016 to June 30, 2017. As a result, the following discussion should be read in conjunction with MD&A and the consolidated financial statements and notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2016 ("2016 Annual Report"). This discussion contains forward-looking statements that constitute our plans, estimates and beliefs. These forward-looking statements involve numerous risks and uncertainties, including, but not limited to, those discussed under the heading “Risk Factors” in the 2016 Annual Report as well as Item 1A of Part II (Other Information) included elsewhere in this report. Actual results may differ materially from those contained in any forward-looking statements.

This MD&A is divided into the following sections:

• Business Overview

• Business Trends and Conditions

• Factors Affecting Our Results

• Critical Accounting Estimates

• Results of Operations

• Financial Condition

• Liquidity and Capital Resources

Business Overview

We are a leading distributor of financial products to middle-income households in the United States and Canada. We assist our clients in meeting their needs for term life insurance, which we underwrite, and mutual funds, annuities, managed investments and other financial products, which we distribute primarily on behalf of third parties. We have two primary operating segments, Term Life Insurance and Investment and Savings Products, and a third segment, Corporate and Other Distributed Products.

Term Life Insurance. We distribute the term life insurance products that we originate through our three issuing life insurance company subsidiaries: Primerica Life Insurance Company (“Primerica Life”), National Benefit Life Insurance Company (“NBLIC”), and Primerica Life Insurance Company of Canada (“Primerica Life Canada”). Our in-force term insurance policies have level premiums for the stated term period. As such, the policyholder pays the same amount each year. Initial policy term periods are between 10 and 35 years. While premiums are guaranteed to remain level during the initial term period (up to a maximum of 20 years in the United States), our claim obligations generally increase as our policyholders age. In addition, we incur significant upfront costs in acquiring new insurance business. Our deferral and amortization of policy acquisition costs and reserving methodology are designed to match the recognition of premium revenues with the timing of policy lapses and the payment of expected claims obligations.

Investment and Savings Products. In the United States, we distribute mutual fund and managed account products and variable and fixed annuity products of several third-party companies. In Canada, we offer our own Primerica-branded mutual funds, as well as mutual funds of other companies, and segregated funds, which are underwritten by Primerica Life Canada.

Corporate and Other Distributed Products. Our Corporate and Other Distributed Products segment consists primarily of revenues and expenses related to other distributed products, including closed blocks of various insurance products underwritten by NBLIC, prepaid legal services, and other financial products. These products, except for closed blocks of various insurance products underwritten by NBLIC, are distributed pursuant to distribution arrangements with third parties through our independent agent sales force. Net investment income earned on our invested asset portfolio is recorded in our Corporate and Other Distributed Products segment, with the exception of the assumed net interest accreted to our Term Life Insurance segment’s future policy benefit reserve liability less deferred acquisition costs.  Interest expense incurred by the Company is attributed solely to the Corporate and Other Distributed Products segment.

Business Trends and Conditions

The relative strength and stability of financial markets and economies in the United States and Canada affect our growth and profitability. Our business is, and we expect will continue to be, influenced by a number of industry-wide and product-specific trends and conditions. Economic conditions, including unemployment levels and consumer confidence, influence investment and spending decisions by middle-income consumers, who are generally our primary clients. These conditions and factors also impact prospective recruits’ perceptions of the business opportunity that becoming a Primerica sales representative offers, which can drive or dampen recruiting. Consumer spending and borrowing levels affect how consumers evaluate their savings and debt management plans. In addition, interest rates and equity market returns impact consumer demand for the savings and investment products we distribute. Our customers’ perception of the strength of the capital markets may influence their decisions to invest in the investment and savings products we distribute.

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The financial and distribution results of our operations in Canada, as reported in U.S. dollars, are affected by changes in the currency exchange rate. The effects of these trends and conditions are discussed below and in the Results of Operations section.

Size of Our Independent Sales Force.

Our ability to increase the size of our independent sales force is largely based on the success of our independent sales force’s recruiting efforts as well as training and motivating recruits to get licensed to sell life insurance. We believe that recruitment and licensing levels are important to sales force trends, and growth in recruiting and licensing is usually indicative of future growth in the overall size of the sales force. Recruiting changes do not always result in commensurate changes in the size of our licensed independent sales force because new recruits may obtain the requisite licenses at rates above or below historical levels.

Details on new recruits and life-licensed sales representative activity were as follows:

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
New recruits		78,273		65,273		149,256		128,700
New life-licensed sales representatives		12,947		12,171		23,850		21,837

The increase in new recruits during the three and six months ended June 30, 2017 compared to the prior year periods was primarily due to sustained growth in the size of our independent sales force, resulting in more agents available to actively recruit as well as the continued positive momentum generated by our independent sales force leading up to our biennial convention in June 2017. New life-licensed representatives increased during the three and six months ended June 30, 2017 compared to the same periods in 2016 reflecting strong recruiting trends in recent periods.

The size of our life-licensed independent sales force was as follows:

	June 30, 2017		March 31, 2017
Life-licensed sales representatives		121,471		117,907

The size of our life-licensed independent sales force at June 30, 2017 increased compared to March 31, 2017 due to the growth in new life-licensed representatives, which outpaced non-renewals during the second quarter of 2017.  

Term Life Insurance Product Sales and Face Amount In Force.

The average number of life-licensed sales representatives and the number of term life insurance policies issued, as well as the average monthly rate of new policies issued per life-licensed sales representative (historically between 0.18 and 0.22), were as follows:

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
Average number of life-licensed sales representatives		119,836		110,261		118,519		108,862
Number of new policies issued		84,033		77,384		154,675		143,760
Average monthly rate of new policies issued per life-licensed    sales representative		0.23		0.23		0.22		0.22

The increase in new life insurance policies issued during the three and six months ended June 30, 2017 compared to the prior year periods was primarily driven by the growth in the size of our life-licensed independent sales force in recent periods. Productivity, measured by the average monthly rate of new policies issued per life-licensed sales representative, was consistent with the three and six months ended June 30, 2016 and at or slightly above the high end of our historical range.  

The changes in the face amount of our in-force book of term life insurance policies were as follows:

	Three months ended June 30,												Six months ended June 30,
	2017			% of beginning balance			2016			% of beginning balance			2017			% of beginning balance			2016			% of beginning balance
	(Dollars in millions)
Face amount in force, beginning of period	$	733,756					$	704,632					$	728,385					$	693,194
Net change in face amount:
Issued face amount		25,458			3	%		23,145			3	%		47,086			6	%		42,935			6	%
Terminations		(14,994	)		(2	)%		(12,700	)		(2	)%		(31,698	)		(4	)%		(26,514	)		(4	)%
Foreign currency		2,207		*				(321	)	*				2,654		*				5,141			1	%
Net change in face amount		12,671			2	%		10,124			1	%		18,042			2	%		21,562			3	%
Face amount in force, end of period	$	746,427					$	714,756					$	746,427					$	714,756

* Less than 1%.

The face amount of term life policies in force as of June 30, 2017 increased 4% as compared to June 30, 2016 primarily due to strong policy sales. As a percentage of the beginning face amount in force, issued face amount as well as terminations for the three and six months ended June 30, 2017 remained consistent with the corresponding prior year periods. The strengthening of the Canadian dollar spot rate relative to the U.S. dollar during the three months ended June 30, 2017 also contributed to the increase in face amount for the

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three and six month periods ended June 30, 2017. During the six months ended June 30, 2016, the effect from the strengthening of the Canadian dollar spot rate relative to the U.S. dollar in the first quarter of 2016 favorably impacted the face amount in force.

Investment and Savings Products Sales, Asset Values and Accounts.

Investment and savings products sales and average client asset values were as follows:

	Three months ended June 30,				Change						Six months ended June 30,				Change
	2017		2016		$			%			2017		2016		$			%
	(Dollars in millions)
Product sales:
Retail mutual funds	$	987	$	853	$	134			16	%	$	1,972	$	1,662	$	310			19	%
Annuities and other		450		498		(48	)		(10	)%		877		932		(55	)		(6	)%
Total sales-based revenue    generating product sales		1,437		1,351		86			6	%		2,849		2,594		255			10	%
Managed investments		72		55		17			32	%		143		101		42			42	%
Segregated funds		64		64		-		*				166		151		15			10	%
Total product sales	$	1,573	$	1,470	$	103			7	%	$	3,158	$	2,846	$	312			11	%
Average client asset values:
Retail mutual funds	$	34,563	$	30,289	$	4,274			14	%	$	33,948	$	29,578	$	4,370			15	%
Annuities and other		16,756		14,678		2,078			14	%		16,480		14,377		2,103			15	%
Managed investments		2,084		1,680		404			24	%		2,019		1,631		388			24	%
Segregated funds		2,375		2,289		86			4	%		2,353		2,204		149			7	%
Total average client asset values	$	55,778	$	48,936	$	6,842			14	%	$	54,800	$	47,790	$	7,010			15	%

* Less than 1%.

The rollforward of asset values in client accounts was as follows:

	Three months ended June 30,												Six months ended June 30,
	2017			% of beginning balance			2016			% of beginning balance			2017			% of beginning balance			2016			% of beginning balance
	(Dollars in millions)
Asset values, beginning of period	$	54,925					$	48,174					$	52,339					$	47,353
Net change in asset values:
Inflows		1,573			3	%		1,470			3	%		3,158			6	%		2,846			6	%
Redemptions		(1,318	)		(2	)%		(1,222	)		(3	)%		(2,583	)		(5	)%		(2,376	)		(5	)%
Net inflows		255		*				248			1	%		575			1	%		470			1	%
Change in market value, net		1,170			2	%		983			2	%		3,389			6	%		1,026			2	%
Foreign currency, net		241		*				(33	)	*				288			1	%		523			1	%
Net change in asset values		1,666			3	%		1,198			2	%		4,252			8	%		2,019			4	%
Asset values, end of period	$	56,591					$	49,372					$	56,591					$	49,372

* Less than 1%.

Average number of fee-generating positions was as follows:

	Three months ended June 30,				Change						Six months ended June 30,				Change
	2017		2016		Positions			%			2017		2016		Positions			%
	(Positions in thousands)
Average number of fee-generating    positions(1):
Recordkeeping and custodial		2,237		2,200		37			2	%		2,228		2,196		32			1	%
Recordkeeping only		676		684		(8	)		(1	)%		673		675		(2	)	*
Total average number of fee-    generating positions		2,913		2,884		29			1	%		2,901		2,871		30			1	%

*    Less than 1%.

⁽¹⁾ We receive recordkeeping fees by mutual fund positions. An individual client account may include multiple mutual fund positions. We may also receive fees earned for custodial services that we provide to clients with retirement plan accounts that hold positions in these mutual funds.

Changes in Investment and Savings Products Sales, Asset Values and Accounts during the Three Months Ended June 30, 2017

Product sales. Investment and savings products sales increased during the three months ended June 30, 2017 compared with the prior year period largely due to the positive impact of market performance on customer demand for U.S. retail mutual funds in recent periods as well as increased sales of managed investments with the launch of the Primerica Advisors Lifetime Investment Platform during the second quarter. The increases in retail mutual funds and managed investments sales were partially offset by lower sales of variable annuity and fixed indexed annuity products, consistent with recent industry trends.

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Average client asset values.The growth in average client asset values in the second quarter of 2017 compared with the prior year period was primarily driven by positive market performance in recent periods and continued net inflows.

Rollforward of client asset values. Client asset values during the three months ended June 30, 2017 increased largely due to an increase in market value and continued inflows from product sales, which outpaced redemptions.

Average number of fee-generating positions. The average number of fee-generating positions increased during the three months ended June 30, 2017 from the prior year period primarily due to the cumulative effect of product sales of mutual funds and managed investments that are serviced on the Company’s recordkeeping and custodial services platform.

Changes in Investment and Savings Products Sales, Asset Values and Accounts during the Six Months Ended June 30, 2017

Product sales. Investment and savings products sales increased in the six months ended June 30, 2017 compared with the prior year period largely due to the same factors impacting product sales as discussed above in the three-month comparison.  

Average client asset values.The growth in average client asset values during the six months ended June 30, 2017 compared with the prior year period was primarily driven by the same factors impacting average client asset values as described above in the three-month comparison.  

Rollforward of client asset values. Client asset values increased during the six months ended June 30, 2017 compared with the prior year period largely due to the same factors impacting client asset values as discussed above in the three-month comparison.  

Average number of fee-generating positions. The average number of fee-generating positions during the six months ended June 30, 2017 increased from the prior year period primarily due to the same factors impacting average number of fee-generating positions as discussed above in the three-month comparison.  

Other business trends and conditions.

Regulatory changes can also impact our product sales. On April 8, 2016, the Department of Labor (“DOL”) published a final regulation (“the DOL Fiduciary Rule”), which more broadly defines the circumstances under which a person or entity may be considered a fiduciary for purposes of the prohibited transaction rules of the Employee Retirement Income Security Act and Internal Revenue Code (“IRC”) Section 4975. IRC Section 4975 prohibits certain types of compensation paid by third parties with respect to transactions involving assets in qualified accounts, including individual retirement accounts (“IRAs”). In connection with the DOL Fiduciary Rule, the DOL also issued new exemptions and amended several existing exemptions. On February 3, 2017, the President of the United States issued a memorandum directing the DOL to review the DOL Fiduciary Rule and the exemptions to determine, based on certain factors, whether they should be revised or rescinded. The DOL Fiduciary Rule and transitional exemptions became applicable on June 9, 2017, with the final exemptions scheduled to go into effect on January 1, 2018, though this date could be delayed. The DOL has stated that it will conduct the review and make the determinations directed by the President during the transition period from June 9, 2017 until January 1, 2018.

IRAs and other qualified accounts are an important component of the investment and savings products we distribute. If the DOL Fiduciary Rule and the final exemptions were to become applicable without revisions, we believe that certain changes to our qualified plan business would be needed in order for us to continue to help investors save for retirement. Due to the uncertain status of the DOL Fiduciary Rule and the final exemptions, we cannot determine the extent and nature of the changes we ultimately will make. Additionally, we have not determined the extent to which we would make necessitated compensation, product or other changes to our qualified plan business, nor whether we would make such changes consistent across our non-qualified business. As a result, we are currently unable to quantify the impact on our business, financial position or results of operations. During the year ended December 31, 2016, average client assets held in U.S. qualified retirement plans accounted for an estimated 59% of total average client account assets. During the year ended December 31, 2016, product sales of assets held in U.S. qualified retirement plans accounted for approximately 56% of total investment and savings product sales.

Factors Affecting Our Results

Term Life Insurance Segment.Our Term Life Insurance segment results are primarily driven by sales volumes, the accuracy of our pricing assumptions, terms and use of reinsurance, and expenses.

Sales and policies in force. Sales of term policies and the size and characteristics of our in-force book of policies are vital to our results over the long term. Premium revenue is recognized as it is earned over the term of the policy, and eligible acquisition expenses are deferred and amortized ratably with the level premiums of the underlying policies. However, because we incur significant cash outflows at or about the time policies are issued, including the payment of sales commissions and underwriting costs, changes in life insurance sales volume will have a more immediate effect on our cash flows.

Historically, we have found that while sales volume of term life insurance products between fiscal periods may vary based on a variety of factors, the productivity of individual sales representatives generally remains within a relatively narrow range (i.e., an average

24

monthly rate of new policies issued per life-licensed sales representative between 0.18 and 0.22), and consequently, our sales volume over the longer term generally correlates to the size of our independent sales force.

Pricing assumptions. Our pricing methodology is intended to provide us with appropriate profit margins for the risks we assume. We determine pricing classifications based on the coverage sought, such as the size and term of the policy, and certain policyholder attributes, such as age and health. In addition, we generally utilize unisex rates for our term life insurance policies. The pricing assumptions that underlie our rates are based upon our best estimates of mortality, persistency and interest rates at the time of issuance, sales force commission rates, issue and underwriting expenses, operating expenses and the characteristics of the insureds, including the distribution of sex, age, underwriting class, product and amount of coverage. Our results will be affected to the extent there is a variance between our pricing assumptions and actual experience.

• Persistency. Persistency is a measure of how long our insurance policies stay in force. As a general matter, persistency that is lower than our pricing assumptions adversely affects our results over the long term because we lose the recurring revenue stream associated with the policies that lapse. Determining the near-term effects of changes in persistency is more complicated. When actual persistency is lower than our pricing assumptions, we must accelerate the amortization of deferred policy acquisition costs ("DAC"). The resultant increase in amortization expense is offset by a corresponding release of reserves associated with lapsed policies, which causes a reduction in benefits and claims expense. The future policy benefit reserves associated with any given policy will change over the term of such policy. As a general matter, future policy benefit reserves are lowest at the inception of a policy term and rise steadily to a peak before declining to zero at the expiration of the policy term. Accordingly, depending on when the lapse occurs in relation to the overall policy term, the reduction in benefits and claims expense may be greater or less than the increase in amortization expense, and, consequently, the effects on earnings for a given period could be positive or negative. Persistency levels will impact results to the extent actual experience deviates from the persistency assumptions that are locked-in at time of issue.

• Mortality. Our profitability will fluctuate to the extent actual mortality rates differ from the assumptions that are locked-in at time of issue. We mitigate a significant portion of our mortality exposure through reinsurance.

• Interest Rates. We use an assumption for future interest rates that initially reflects the current low interest rate environment gradually increasing to a level consistent with historical experience. Both DAC and the future policy benefit reserve liability increase with the assumed interest rate. Since DAC is higher than the future policy benefit reserve liability in the early years of a policy, a lower assumed interest rate generally will result in lower profits. In the later years, when the future policy benefit reserve liability is higher than DAC, a lower assumed interest rate generally will result in higher profits. These assumed interest rates, which like other pricing assumptions are locked in at issue, impact the timing but not the aggregate amount of DAC and future policy benefit reserve changes. We allocate net investment income generated by the investment portfolio to the Term Life Insurance segment in an amount equal to the assumed net interest accreted to the segment’s U.S. generally accepted accounting principles (“U.S. GAAP”)-measured future policy benefit reserve liability less DAC. All remaining net investment income, and therefore the impact of actual interest rates, is attributed to the Corporate and Other Distributed Products segment.

Reinsurance. We use reinsurance extensively, which has a significant effect on our results of operations. Since the mid-1990s, we have reinsured between 60% and 90% of the mortality risk on our U.S. term life insurance policies on a quota share yearly renewable term ("YRT") basis. In Canada, historically we utilized reinsurance arrangements similar to the U.S. in certain years and reinsured only face amounts above $500,000 in other years. Since the first quarter of 2012, we have utilized a YRT reinsurance arrangement in Canada similar to our U.S. program. YRT reinsurance permits us to set future mortality at contractual rates by policy class. To the extent actual mortality experience is more or less favorable than the contractual rate, the reinsurer will earn incremental profits or bear the incremental cost, as applicable. In contrast to coinsurance, which is intended to eliminate all risks (other than counterparty risk of the reinsurer) and rewards associated with a specified percentage of the block of policies subject to the reinsurance arrangement, the YRT reinsurance arrangements we enter into are intended only to reduce volatility associated with variances between estimated and actual mortality rates.

In 2010, as part of our corporate reorganization and the initial public offering of our common stock, we entered into significant coinsurance transactions (the "IPO coinsurance transactions") and ceded between 80% and 90% of the risks and rewards of our term life insurance policies that were in force at year-end 2009. Beginning in 2017, policies reaching the end of their initial level term period are no longer ceded under the IPO coinsurance transactions. We continue to administer all policies subject to these coinsurance agreements.

The effect of our reinsurance arrangements on ceded premiums and benefits and expenses on our statement of income follows:

• Ceded premiums. Ceded premiums are the premiums we pay to reinsurers. These amounts are deducted from the direct premiums we earn to calculate our net premium revenues. Similar to direct premium revenues, ceded coinsurance premiums remain level over the initial term of the insurance policy. Ceded YRT premiums increase over the period that the policy has been in force. Accordingly, ceded YRT premiums generally constitute an increasing percentage of direct premiums over the policy term.

• Benefits and claims. Benefits and claims include incurred claim amounts and changes in future policy benefit reserves. Reinsurance reduces incurred claims in direct proportion to the percentage ceded. Coinsurance also reduces the change in

25

future policy benefit reserves in direct proportion to the percentage ceded, while YRT reinsurance does not significantly impact the change in these reserves.

• Amortization of DAC. DAC, and therefore amortization of DAC, is reduced on a pro-rata basis for the coinsured business, including the business reinsured with the IPO coinsurance transactions. There is no impact on amortization of DAC associated with our YRT contracts.

• Insurance expenses. Insurance expenses are reduced by the allowances received from coinsurance. There is no impact on insurance expenses associated with our YRT contracts.

We may alter our reinsurance practices at any time due to the unavailability of YRT reinsurance at attractive rates or the availability of alternatives to reduce our risk exposure. We presently intend to continue ceding approximately 90% of our U.S. and Canadian mortality risk on new business.

Expenses. Results are also affected by variances in client acquisition, maintenance and administration expense levels.

Investment and Savings Products Segment. Our Investment and Savings Products segment results are primarily driven by sales, the value of assets in client accounts for which we earn ongoing management, marketing and support, and distribution fees, and the number of recordkeeping and custodial fee-generating positions we administer.

Sales. We earn commissions and fees, such as dealer re-allowances and marketing and support fees, based on sales of mutual fund products and annuities. Sales of investment and savings products are influenced by the overall demand for investment products in the United States and Canada, as well as by the size and productivity of our independent sales force. We generally experience seasonality in our Investment and Savings Products segment results due to our high concentration of sales of retirement account products. These accounts are typically funded in February through April, coincident with our clients' tax return preparation season. While we believe the size of our independent sales force is a factor in driving sales volume in this segment, there are a number of other variables, such as economic and market conditions, which may have a significantly greater effect on sales volume in any given fiscal period.

Asset values in client accounts. We earn marketing and support fees as well as distribution fees (trail commissions or, with respect to U.S. mutual funds, 12b-1 fees) on mutual fund and annuity assets in the United States and Canada. In the United States, we also earn investment advisory fees on assets in the managed investments program. In Canada, we earn management fees on certain mutual fund assets and on the segregated funds for which we serve as investment manager.  Asset values are influenced by new product sales, ongoing contributions to existing accounts, redemptions and the change in market values in existing accounts. While we offer a wide variety of asset classes and investment styles, our clients' accounts are primarily invested in equity funds.

Positions. We earn recordkeeping fees for administrative functions we perform on behalf of several of our retail and managed mutual fund providers. An individual client account may include multiple fund positions for which we earn recordkeeping fees. We may also receive fees earned for non-bank custodial services that we provide to clients with retirement plan accounts.

Sales mix. While our investment and savings products all provide similar long-term economic returns to the Company, our results in a given fiscal period will be affected by changes in the overall mix of products within these categories. Examples of changes in the sales mix that influence our results include the following:

• sales of annuity products in the United States will generate higher revenues in the period such sales occur than sales of other investment products that either generate lower upfront revenues or, in the case of managed investments and segregated funds, no upfront revenues;

• sales of a higher proportion of managed investments and segregated funds products will generally extend the time over which revenues can be earned because we are entitled to higher revenues based on assets under management for these accounts in lieu of upfront revenues; and

• sales of a higher proportion of mutual fund products and the composition of the fund families sold will impact the timing and amount of revenue we earn given the marketing, support, recordkeeping and custodial services we provide for the various mutual fund products we distribute.

Corporate and Other Distributed Products Segment.We earn revenues and pay commissions and referral fees within our Corporate and Other Distributed Products segment for various other insurance products, prepaid legal services and other financial products, all of which are originated by third parties.  Our Corporate and Other Distributed Products segment also includes in-force policies from several discontinued lines of insurance underwritten by National Benefit Life Insurance Company (“NBLIC”).

Corporate and Other Distributed Products segment net investment income reflects actual net investment income realized by the Company less the amount allocated to our Term Life Insurance segment based on the assumed net interest accreted to the segment’s U.S. GAAP-measured future policy benefit reserve liability less DAC. Actual net investment income reflected in the Corporate and Other Distributed Products segment is impacted by the size and performance of our invested asset portfolio, which can be influenced by interest rates, credit spreads, and the mix of invested assets.

The Corporate and Other Distributed Products segment is also affected by corporate income and expenses not allocated to our other segments, general and administrative expenses (other than expenses that are allocated to our Term Life Insurance or Investment and

26

Savings Products segments), interest expense on notes payable and reserve financing transactions as well as realized gains and losses on our invested asset portfolio.

Capital Structure. Our financial results are affected by our capital structure, which includes our senior unsecured notes (the “Senior Notes”) and common stock. See Note 12 (Debt) and Note 7 (Stockholders’ Equity) to our unaudited condensed consolidated financial statements included elsewhere in this report for more information on changes in our capital structure.

Foreign Currency. The Canadian dollar is the functional currency for our Canadian subsidiaries and our consolidated financial results, reported in U.S. dollars, are affected by changes in the currency exchange rate. As such, the translated amount of revenues, expenses, assets and liabilities attributable to our Canadian subsidiaries will be higher or lower in periods where the Canadian dollar appreciates or weakens relative to the U.S. dollar, respectively. See Item 7A. Quantitative and Qualitative Disclosures About Market Risk – Canadian Currency Risk included in our 2016 Annual Report and Note 2 (Segment and Geographical Information) to our unaudited condensed consolidated financial statements included elsewhere in this report for more information on our Canadian subsidiaries and the impact of foreign currency on our financial results.

Critical Accounting Estimates

We prepare our financial statements in accordance with U.S. GAAP. These principles are established primarily by the Financial Accounting Standards Board. The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions based on currently available information when recording transactions resulting from business operations. Our significant accounting policies are described in Note 1 (Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies) to our consolidated financial statements included in our 2016 Annual Report. The most significant items on our condensed consolidated balance sheets are based on fair value determinations, accounting estimates and actuarial determinations, which are susceptible to changes in future periods and could affect our results of operations and financial position.

The estimates that we deem to be most critical to an understanding of our results of operations and financial position are those related to DAC, future policy benefit reserves and corresponding amounts due from reinsurers, income taxes, and the valuation of investments. The preparation and evaluation of these critical accounting estimates involve the use of various assumptions developed from management’s analyses and judgments. Subsequent experience or use of other assumptions could produce significantly different results.

Accounting Policy Changes. During the three months ended June 30, 2017, there have been no changes in the accounting methodology for items that we have identified as critical accounting estimates. For additional information regarding our critical accounting estimates, see the Critical Accounting Estimates section of MD&A included in our 2016 Annual Report.

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Results of Operations

Primerica, Inc. and Subsidiaries Results. Our results of operations were as follows:

	Three months ended June 30,						Change						Six months ended June 30,						Change
	2017			2016			$			%			2017			2016			$			%
	(Dollars in thousands)
Revenues:
Direct premiums	$	637,426		$	612,189		$	25,237			4	%	$	1,265,124		$	1,209,319		$	55,805			5	%
Ceded premiums		(406,043	)		(406,683	)		(640	)	*				(805,811	)		(802,017	)		3,794		*
Net premiums		231,383			205,506			25,877			13	%		459,313			407,302			52,011			13	%
Commissions and fees		148,317			136,902			11,415			8	%		292,584			265,723			26,861			10	%
Investment income net of   investment expenses		25,829			24,994			835			3	%		51,442			50,387			1,055			2	%
Interest expense on surplus note		(6,087	)		(4,605	)		1,482			32	%		(11,806	)		(8,760	)		3,046			35	%
Net investment income		19,742			20,389			(647	)		(3	)%		39,636			41,627			(1,991	)		(5	)%
Realized investment gains (losses),   including other-than-temporary   impairment losses		104			3,440			(3,336	)		(97	)%		238			2,657			(2,419	)		(91	)%
Other, net		14,150			12,757			1,393			11	%		27,089			24,284			2,805			12	%
Total revenues		413,696			378,994			34,702			9	%		818,860			741,593			77,267			10	%
Benefits and expenses:
Benefits and claims		99,512			88,984			10,528			12	%		201,897			179,961			21,936			12	%
Amortization of DAC		47,861			38,720			9,141			24	%		99,710			81,849			17,861			22	%
Sales commissions		75,440			70,146			5,294			8	%		149,144			136,789			12,355			9	%
Insurance expenses		36,920			32,906			4,014			12	%		74,541			66,035			8,506			13	%
Insurance commissions		5,157			4,472			685			15	%		10,057			8,619			1,438			17	%
Interest expense		7,143			7,178			(35	)	*				14,270			14,350			(80	)		(1	)%
Other operating expenses		45,274			44,708			566			1	%		98,011			91,898			6,113			7	%
Total benefits and expenses		317,307			287,114			30,193			11	%		647,630			579,501			68,129			12	%
Income before income taxes		96,389			91,880			4,509			5	%		171,230			162,092			9,138			6	%
Income taxes		33,282			32,554			728			2	%		56,054			57,590			(1,536	)		(3	)%
Net income	$	63,107		$	59,326		$	3,781			6	%	$	115,176		$	104,502		$	10,674			10	%

* Less than 1%.

Results for the Three Months Ended June 30, 2017

Total revenues. Total revenues increased during the three months ended June 30, 2017 compared to the same period in 2016 largely due to incremental premiums on term life insurance policies that are not subject to the IPO coinsurance transactions as well as higher direct premiums from strong term life insurance policy sales in recent periods. Commissions and fees from our Investment and Savings Products segment increased mainly as a result of higher investment and savings product sales and growth in client assets values.

Net investment income during the three months ended June 30, 2017 was positively impacted by a larger investment asset portfolio than in the prior year period, partially offset by a lower portfolio yield. The impact on net investment income from the mark-to-market on the deposit asset backing an IPO-related reinsurance agreement was minimal in the second quarter of 2017; however, the prior year period included an approximately $1 million positive mark-to-market adjustment. Interest expense on surplus note will fluctuate from period to period along with the principal amount of our surplus note (the “Surplus Note”) based on the balance of reserves being contractually supported under a redundant reserve financing transaction used by our Vidalia Re, Inc. (“Vidalia Re”) captive insurance company. Investment income earned on our held-to-maturity invested asset completely offsets the interest expense on Surplus Note, thereby eliminating any impact on net investment income.

For more information on the Surplus Note, see Note 12 (Debt) and for additional information on the redundant reserve financing transaction used by Vidalia Re, see Note 3 (Investments) to our unaudited condensed consolidated financial statements included elsewhere in this report.

Realized investment gains (losses), including OTTI losses, decreased during the three months ended June 30, 2017 compared to the same period in 2016 primarily due to higher realized investment gains we recognized in the second quarter of 2016 from the sale of a larger number of fixed-maturity securities pursuant to which the Company was able to reduce its exposure to specific issuers.

Other, net revenues increased during the three months ended June 30, 2017 compared to the same period in 2016 largely due to the increase in fees for our proprietary sales force support system consistent with subscriber growth as the size of our independent sales force has increased. The increase in these fees was accompanied by higher technology spending incurred to support and enhance the system’s tools as noted below in the “Total benefits and expenses” section. Fees collected for our proprietary sales force support

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system are allocated between our Term Life Insurance segment and our Investment and Savings Products segment based on the estimated number of sales force representatives that are licensed to sell products in each respective segment.

Total benefits and expenses.Total benefits and expenses increased during the three months ended June 30, 2017 compared to the prior year period largely due to the growth in premium-related costs, which include benefits and claims, amortization of DAC, and insurance expenses.The increase in amortization of DAC was higher than the increase in net premiums due to weaker persistency in the second quarter of 2017 compared to the prior year period.  Also contributing to the increase in insurance and other operating expenses were higher technology-related costs of approximately $3.5 million primarily for our proprietary sales force support system’s mobile application. The increase in sales commissions for the three months ended June 30, 2017 compared to the prior year period was in line with increases in commissions and fees revenues.

Income taxes. Our effective income tax rate for the three months ended June 30, 2017 was 34.5% compared to 35.4% in the same period in 2016. The decline in the effective income tax rate was primarily attributable to the recognition of excess tax benefits of approximately $0.9 million resulting from the difference between the share price of our common stock on the grant date of sales force equity awards and the date that the sales restrictions on these awards lapsed. This recognition resulted from the adoption of Accounting Standards Update No 2016-09 (“ASU 2016-09”) Compensation—Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting, effective January 1, 2017.

Results for the Six Months Ended June 30, 2017

Total revenues. Total revenues for the six months ended June 30, 2017 compared to the six months ended June 30, 2016 increased primarily due to the same factors impacting total revenues as discussed above in the three-month comparison.

Total benefits and expenses. The growth in total benefits and expenses for the six months ended June 30, 2017 compared to the six months ended June 30, 2016 was mostly attributable to the same factors impacting total benefits and expenses as discussed above in the three-month comparison as well as higher employee-related costs of approximately $4.5 million during the first quarter of 2017 when expense is recognized for equity awards granted to retirement-eligible employees. For more information regarding stock compensation expense recognized for retirement-eligible employees, see Note 9 (Share-based Transactions) to our unaudited condensed financial statements included elsewhere in this report.

Income taxes. Our effective income tax rate for the six months ended June 30, 2017 was 32.7%, down from 35.5% in the same period in 2016 primarily due to the recognition of approximately $4.2 million in excess tax benefits from the deductibility of equity awards to employees and members of the sales force, which resulted from the adoption of ASU 2016-09 as noted in the three-month comparison.

For additional information, see the Segment Results discussions below.

Segment Results

Term Life Insurance Segment Results. Our results for the Term Life Insurance segment were as follows:

	Three months ended June 30,						Change						Six months ended June 30,						Change
	2017			2016			$			%			2017			2016			$		%
	(Dollars in thousands)
Revenues:
Direct premiums	$	630,485		$	604,117		$	26,368			4	%	$	1,250,865		$	1,193,361		$	57,504		5	%
Ceded premiums		(404,175	)		(404,492	)		(317	)	*				(802,252	)		(797,763	)		4,489		1	%
Net premiums		226,310			199,625			26,685			13	%		448,613			395,598			53,015		13	%
Allocated investment income		2,347			1,871			476			25	%		4,650			3,721			929		25	%
Other, net		10,244			9,063			1,181			13	%		19,690			17,336			2,354		14	%
Total revenues		238,901			210,559			28,342			13	%		472,953			416,655			56,298		14	%
Benefits and expenses:
Benefits and claims		95,532			83,835			11,697			14	%		193,302			170,630			22,672		13	%
Amortization of DAC		44,937			36,477			8,460			23	%		95,070			77,702			17,368		22	%
Insurance expenses		34,932			31,135			3,797			12	%		70,649			62,163			8,486		14	%
Insurance commissions		1,646			1,094			552			50	%		3,055			2,062			993		48	%
Total benefits and expenses		177,047			152,541			24,506			16	%		362,076			312,557			49,519		16	%
Income before income taxes	$	61,854		$	58,018		$	3,836			7	%	$	110,877		$	104,098		$	6,779		7	%

* Less than 1%.

Results for the Three Months Ended June 30, 2017

Net premiums. Direct premiums grew in the three months ended June 30, 2017 compared to the three months ended June 30, 2016 primarily due to the increase in the number of new policies issued in recent periods and growth in the in-force book of business. The slight decline in ceded premiums during the three months ended June 30, 2017 includes approximately $11.3 million in lower coinsurance ceded premiums due to the run-off of business subject to the IPO coinsurance transactions, largely offset by approximately $11.0 million in higher non-level YRT reinsurance ceded premiums as business not subject to the IPO coinsurance

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transactions ages. The continued impact from the increase in direct premiums combined with the slight decline in ceded premiums caused net premiums to grow at a higher rate than direct premiums.

Benefits and claims. During the three months ended June 30, 2017, benefits and claims increased versus the three months ended June 30, 2016 primarily from the increase in net premiums. In addition, actual claims were approximately $2 million above historical trends, which contributed to the year-over-year increase in benefits and claims. Partially offsetting the increase in benefits and claims is the incremental impact of YRT rate reductions negotiated for 2014 and later issue years, which continues to dampen the growth in benefits and claims relative to the growth in net premiums.

Amortization of DAC. The amortization of DAC increased during the three months ended June 30, 2017 compared to same period in 2016 largely due to growth in net premiums. In addition, weaker persistency relative to second quarter experience in recent years added approximately $2 million to DAC amortization in the current period, which contributed to a year-over-year increase.

Insurance expenses. The increase in insurance expenses for the three months ended June 30, 2017 compared to the three months ended June 30, 2016 was primarily due to growth in the business and the run-off of expense allowance related to the IPO coinsurance transactions resulting in a year-over-year increase of approximately $1.4 million. Higher expenses incurred for our proprietary sales force support system’s mobile application also contributed to the increase in insurance expenses by approximately $2.0 million.

Results for the Six Months Ended June 30, 2017

Net premiums. Net premiums grew for the six months ended June 30, 2017 comparedto the prior year period mostly due to the same trend impacting net premiums as discussed above in the three-month comparison.The growth in direct premiums exceeded the growth in ceded premiums, which caused net premiums to increase at a higher rate than direct premiums. Ceded premiums increased modestly in the six-month period ended June 30, 2017 versus the comparable period in 2016 as higher non-level YRT reinsurance ceded premiums of approximately $21.9 million exceeded lower coinsurance ceded premiums from the run-off of business subject to the IPO coinsurance transactions of approximately $17.4 million.

Benefits and claims. In comparing the six months ended June 30, 2017 to the six months ended June 30, 2016, benefits and claims increased in large part due to the growth in net premiums. Claims experience during the six months ended June 30, 2017 also caused benefits and claims to increase when compared with 2016 as actual claims realized exceeded historical trends by approximately $5 million.

Amortization of DAC. Amortization of DAC increased for the six months ended June 30, 2017 compared to the prior year period primarily due to the same factors described in the three-month comparison. Additionally, during the first quarter of 2017, approximately $1.5 million of higher amortization was recognized for lapses of certain policies held by clients in Louisiana. The effect of terminating policies, which we restricted from lapsing at the request of the Louisiana Department of Insurance in 2016 due to severe flooding, was recognized in the first quarter of 2017 once the restriction was removed and the policies ultimately lapsed.

Insurance expenses. Insurance expenses for the six months ended June 30, 2017 compared to the prior year period increased due to higher expenses incurred for our proprietary sales force support system’s mobile application of approximately $3.7 million, higher growth-related expenses of approximately $2.9 million and increased employee-related expenses of approximately $1.9 million.

Investment and Savings Products Segment Results.Investment and Savings Products segment results were as follows:

	Three months ended June 30,				Change						Six months ended June 30,				Change
	2017		2016		$			%			2017		2016		$		%
	(Dollars in thousands)
Revenues:
Commissions and fees:
Sales-based revenues	$	60,692	$	59,057	$	1,635			3	%	$	121,209	$	115,276	$	5,933		5	%
Asset-based revenues		67,424		59,541		7,883			13	%		131,897		114,848		17,049		15	%
Account-based revenues		13,282		11,611		1,671			14	%		26,499		22,920		3,579		16	%
Other, net		2,376		2,399		(23	)		(1	)%		4,575		4,481		94		2	%
Total revenues		143,774		132,608		11,166			8	%		284,180		257,525		26,655		10	%
Expenses:
Amortization of DAC		2,310		1,704		606			36	%		4,044		3,623		421		12	%
Insurance commissions		3,050		2,884		166			6	%		6,008		5,515		493		9	%
Sales commissions:
Sales-based		43,253		42,040		1,213			3	%		86,462		82,367		4,095		5	%
Asset-based		28,965		24,907		4,058			16	%		56,595		48,000		8,595		18	%
Other operating expenses		26,512		25,009		1,503			6	%		54,268		50,265		4,003		8	%
Total expenses		104,090		96,544		7,546			8	%		207,377		189,770		17,607		9	%
Income before income taxes	$	39,684	$	36,064	$	3,620			10	%	$	76,803	$	67,755	$	9,048		13	%

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Results for the Three Months Ended June 30, 2017

Commissions and fees.Commissions and fees increased during the three months ended June 30, 2017 compared to the prior year period primarily due to the growth in asset-based revenues, reflecting higher average client asset values. Account-based revenues also contributed to the increase in commissions and fees due to an increase in our account-based fee structure on U.S. qualified accounts implemented in the fourth quarter of 2016 as well as growth in the average number of fee-generating positions in mutual funds and managed investments that are serviced on the Company’s recordkeeping and custodial services platform. Sales-based revenues grew primarily as a result of higher product sales. The growth in sales-based revenues was less than the growth in product sales mainly due to the change in product mix as noted earlier in the “Investment and Savings Products Sales, Asset Values and Account” of  the “Business Trends and Conditions” section.

Sales commissions. The increase in sales- and asset-based commissions for the three months ended June 30, 2017 compared to the prior year period was generally consistent with the increase in sales- and asset-based revenues, respectively.

Other operating expenses. Other operating expenses increased during three months ended June 30, 2017 compared to the prior year period primarily due to growth in sales-related expenses, the launch of the new Primerica Advisors Lifetime Investment Platform during the second quarter, and higher technology spending for a new sales tool to support our agents’ distribution of products.

Results for the Six Months Ended June 30, 2017

Commissions and fees.The increase in commissions and fees during the six months ended June 30, 2016 compared to the prior year period was largely attributable to the same factors discussed above in the three-month comparison.

Sales commissions. In comparing the six months ended June 30, 2017 to the prior year period, sales- and asset-based commissions increased consistent with the growth in sales- and asset-based revenues, respectively.

Other operating expenses. The increase in other operating expenses in the six months ended June 30, 2017 compared to the prior year period was primarily the result of similar items impacting other operating expenses as described above in the three-month comparison. 

Corporate and Other Distributed Products Segment Results. Corporate and Other Distributed Products segment results were as follows:

	Three months ended June 30,						Change						Six months ended June 30,						Change
	2017			2016			$			%			2017			2016			$			%
	(Dollars in thousands)
Revenues:
Direct premiums	$	6,941		$	8,072		$	(1,131	)		(14	)%	$	14,259		$	15,958		$	(1,699	)		(11	)%
Ceded premiums		(1,868	)		(2,191	)		(323	)		(15	)%		(3,559	)		(4,254	)		(695	)		(16	)%
Net premiums		5,073			5,881			(808	)		(14	)%		10,700			11,704			(1,004	)		(9	)%
Commissions and fees		6,919			6,693			226			3	%		12,979			12,679			300			2	%
Allocated investment income net   of investment expenses		23,482			23,123			359			2	%		46,792			46,666			126		*
Interest expense on surplus note		(6,087	)		(4,605	)		1,482			32	%		(11,806	)		(8,760	)		3,046			35	%
Allocated net investment income		17,395			18,518			(1,123	)		(6	)%		34,986			37,906			(2,920	)		(8	)%
Realized investment gains    (losses), including other-than-    temporary impairment losses		104			3,440			(3,336	)		(97	)%		238			2,657			(2,419	)		(91	)%
Other, net		1,530			1,295			235			18	%		2,824			2,467			357			14	%
Total revenues		31,021			35,827			(4,806	)		(13	)%		61,727			67,413			(5,686	)		(8	)%
Benefits and expenses:
Benefits and claims		3,980			5,149			(1,169	)		(23	)%		8,595			9,331			(736	)		(8	)%
Amortization of DAC		614			539			(75	)		(14	)%		596			524			72			14	%
Insurance expenses		1,988			1,771			217			12	%		3,892			3,872			20			1	%
Insurance commissions		461			494			(33	)		(7	)%		994			1,042			(48	)		(5	)%
Sales commissions		3,222			3,199			23			1	%		6,087			6,422			(335	)		(5	)%
Interest expense		7,143			7,178			(35	)	*				14,270			14,350			(80	)		(1	)%
Other operating expenses		18,762			19,699			(937	)		(5	)%		43,743			41,633			2,110			5	%
Total benefits and expenses		36,170			38,029			(1,859	)		(5	)%		78,177			77,174			1,003			1	%
Loss before income taxes	$	(5,149	)	$	(2,202	)	$	2,947			134	%	$	(16,450	)	$	(9,761	)	$	6,689			69	%

* Less than 1%.

Results for the Three Months Ended June 30, 2017

Total revenues. The decline in total revenues during the three months ended June 30, 2017 compared to the prior year period was primarily driven by the decline in realized investment gains (losses) as well as allocated net investment income as discussed earlier in

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“Total revenues” under the consolidated “Primerica, Inc. and Subsidiaries Results” section. In addition, net premiums declined due to the run-off of the closed blocks of business issued by NBLIC.

Total benefits and expenses. Total benefits and expenses decreased during the three months ended June 30, 2017 compared to the prior year period primarily due to the run-off of the closed blocks of business issued by NBLIC as well as a smaller change in reserves resulting from a $0.4 million adjustment to estimated policy benefit reserves during the six months ending June 30, 2016 related to a small block of annuity business.

Results for the Six Months Ended June 30, 2017

Total revenues. The decrease in total revenues for the six months ended June 30, 2017 was primarily due to the factors discussed above in the three-month comparison.

Total benefits and expenses. The increase in total benefits and expenses for the six months ended June 30, 2017 compared to the prior year period was primarily due to higher employee-related expenses during the first quarter of 2017.  

Financial Condition

Investments.Our insurance business is primarily focused on selling term life insurance, which does not include an investment component for the policyholder. The invested asset portfolio funded by premiums from our term life insurance business does not involve the substantial asset accumulations and spread requirements that exist with other non-term life insurance products. As a result, the profitability of our term life insurance business is not as sensitive to the impact that interest rates have on our invested asset portfolio and investment income as the profitability of other companies that distribute non-term life insurance products.

We follow a conservative investment strategy designed to emphasize the preservation of our invested assets and provide adequate liquidity for the prompt payment of claims. To meet business needs and mitigate risks, our investment guidelines provide restrictions on our portfolio’s composition, including limits on asset type, per issuer limits, credit quality limits, portfolio duration, limits on the amount of investments in approved countries and permissible security types. We also manage and monitor our allocation of investments to limit the accumulation of any disproportionate concentrations of risk among industry sectors or issuer countries outside of the U.S. and Canada. In addition, as of June 30, 2017, we did not hold any country of issuer concentrations outside of the U.S. or Canada that represented more than 5% of the fair value of our available-for-sale invested asset portfolio or any industry concentrations of corporate bonds that represented more than 10% of the fair value of our available-for-sale invested asset portfolio.

We may also direct our investment managers to invest some of our invested asset portfolio in currencies other than the U.S. dollar. For example, a portion of our portfolio is invested in assets denominated in Canadian dollars, which, at minimum, would equal our reserves for policies denominated in Canadian dollars. Additionally, to ensure adequate liquidity for payment of claims, we take into account the maturity and duration of our invested asset portfolio and our general liability profile.

We also hold within our invested asset portfolio a credit enhanced note (“LLC Note”) issued by a limited liability company owned by a third party service provider which is classified as a held-to-maturity security. The LLC Note, which is scheduled to mature on December 31, 2030, was obtained in exchange for the Surplus Note of equal principal amount issued by Vidalia Re, a special purpose financial captive insurance company and wholly owned subsidiary of Primerica Life. For more information on the LLC Note, see Note 3 (Investments) to our unaudited condensed consolidated financial statements included elsewhere in this report.

We have an investment committee composed of members of our senior management team that is responsible for establishing and maintaining our investment guidelines and supervising our investment activity. Our investment committee regularly monitors our overall investment results and our compliance with our investment objectives and guidelines. We use a third-party investment advisor to assist us in the management of our investing activities. Our investment advisor reports to our investment committee.

Our invested asset portfolio is subject to a variety of risks, including risks related to general economic conditions, market volatility, interest rate fluctuations, liquidity risk and credit and default risk. Investment guideline restrictions have been established to minimize the effect of these risks but may not always be effective due to factors beyond our control. Interest rates are highly sensitive to many factors, including governmental monetary policies, domestic and international economic and political conditions and other factors beyond our control. A significant increase in interest rates could result in significant losses, realized or unrealized, in the value of our invested asset portfolio. Additionally, with respect to some of our investments, we are subject to prepayment and, therefore, reinvestment risk.

Details on asset mix (excluding our held-to-maturity security) were as follows:

	June 30, 2017		December 31, 2016
Average rating of our fixed-maturity portfolio	A-		A-
Average duration of our fixed-maturity portfolio	3.8 years		3.9 years
Average book yield of our fixed-maturity portfolio		4.11%		4.21%

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The distribution of our investments in fixed-maturity securities (excluding our held-to-maturity security) by rating follows:

	June 30, 2017					December 31, 2016
	Amortized cost		%			Amortized cost		%
	(Dollars in thousands)
AAA	$	318,616		17	%	$	295,873		17	%
AA		154,735		8	%		161,594		9	%
A		432,381		24	%		387,072		23	%
BBB		842,004		46	%		798,156		46	%
Below investment grade		83,551		5	%		93,533		5	%
Not rated		5,839	*				5,787	*
Total	$	1,837,126		100	%	$	1,742,015		100	%

* Less than 1%.

The ten largest holdings within our invested asset portfolio (excluding our held-to-maturity security) were as follows:

	June 30, 2017
Issuer	Fair value			Cost or amortized cost			Unrealized gain (loss)		Credit rating
	(Dollars in thousands)
Government of Canada	$	22,668		$	21,992		$	676	AAA
National Rural Utilities Cooperative		11,218			10,274			944	A
General Electric Co		10,688			10,202			486	AA-
AT&T Inc.		10,289			9,273			1,016	BBB+
Wells Fargo & Co		9,635			8,842			793	A
Enbridge Inc		8,990			8,686			304	BBB+
TransCanada Corp		8,840			8,541			299	A-
Province of Alberta Canada		8,772			8,621			151	A+
National Fuel Gas Co		8,665			8,074			591	BBB
Iberdrola SA		8,654			8,474			180	BBB+
Total – ten largest holdings	$	108,419		$	102,979		$	5,440
Total – fixed-maturity and equity securities	$	1,950,460		$	1,873,800
Percent of total fixed-maturity and equity securities		6	%		5	%

For additional information on our invested asset portfolio, see Note 3 (Investments) to our unaudited condensed consolidated financial statements included elsewhere in this report.

Liquidity and Capital Resources

Dividends and other payments to the Parent Company from its subsidiaries are our principal sources of cash. The amount of dividends paid by the subsidiaries is dependent on their capital needs to fund future growth and applicable regulatory restrictions. The primary uses of funds by the Parent Company include the payments of stockholder dividends, interest on notes payable, general operating expenses, and income taxes, as well as repurchases of shares outstanding. At June 30, 2017, the Parent Company had cash and invested assets of approximately $67.0 million.

The Parent Company’s subsidiaries generate operating cash flows primarily from term life insurance premiums (net of premiums ceded to reinsurers), income from invested assets, commissions and fees collected from the distribution of investment and savings products as well as other financial products. The subsidiaries' principal operating cash outflows include the payment of insurance claims and benefits (net of ceded claims recovered from reinsurers), commissions to our independent sales force, insurance and other operating expenses, interest expense for future policy benefit reserves financing transactions, and income taxes.

The distribution and underwriting of term life insurance requires upfront cash outlays at the time the policy is issued as we pay a substantial majority of the sales commission during the first year following the sale of a policy and incur costs for underwriting activities at the inception of a policy’s term. During the early years of a policy's term, we generally receive level term premiums in excess of claims paid. We invest the excess cash generated during earlier policy years in fixed-maturity and equity securities held in support of future policy benefit reserves. In later policy years, cash received from the maturity or sale of invested assets is used to pay claims in excess of level term premiums received.

Historically, cash flows generated by our businesses, primarily from our existing block of term life policies and our investment and savings products, have provided us with sufficient liquidity to meet our operating requirements. We anticipate that cash flows from our businesses will continue to provide sufficient operating liquidity over the next 12 months.

We may seek to enhance our liquidity position or capital structure through borrowings from third-party sources, sales of debt or equity securities, reserve financings or some combination of these sources. Additionally, we believe that cash flows from our businesses and potential sources of funding will sufficiently support our long-term liquidity needs.

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Cash Flows.The components of the change in cash and cash equivalents were as follows:

	Six months ended June 30,						Change
	2017			2016			$
	(In thousands)
Net cash provided by (used in) operating activities	$	119,870		$	105,349		$	14,521
Net cash provided by (used in) investing activities		(78,682	)		64,997			(143,679	)
Net cash provided by (used in) financing activities		(99,219	)		(110,761	)		11,542
Effect of foreign exchange rate changes on cash		554			1,212			(658	)
Change in cash and cash equivalents	$	(57,477	)	$	60,797		$	(118,274	)

Operating Activities.Cash flows from operating activities increased during the six months ended June 30, 2017 versus the six months ended June 30, 2016 primarily due to higher cash receipts from the collection of premium revenues in excess of benefits and claims paid in our Term Life Insurance segment. The impact of growing net premiums, as discussed earlier in the “Results of Operations” section, contributed to positive incremental cash flows after payments are made for policy acquisition costs during the first year that policies are issued. This increase in operating cash flows was partially offset by year-over-year timing differences in when cash payments were remitted to reinsurers for ceded premiums as well as lower year-over-year income tax payments in 2016 relative to income tax expense recorded in net income as a result of temporary tax basis differences in our Term Life Insurance segment.

Investing Activities. Investing activity cash flows changed to a usage of cash in 2017 as compared with a source of cash in 2016 largely due to activity in the Company’s fixed-maturity securities investment portfolio. During the six months ended June 30, 2017, the Company had a lower level of fixed-maturity securities that matured and it sold fewer fixed-maturity securities versus the comparable period in 2016. In addition, the Company used more cash to purchase investments in fixed-maturity securities in 2017 compared with 2016 as the size of our investment portfolio continued to grow along with the growth of our in-force term life business.

Financing Activities.  The decrease in cash used in financing activities during the six months ended June 30, 2017 compared to the first six months of 2016 was primarily due to lower repurchases of common stock on a year-over-year basis. During the first six months of 2016, the Company accelerated share repurchases under the share repurchase program in effect at that time given the reduced market price of its common stock during the period.

Risk-Based Capital (“RBC”). The National Association of Insurance Commissioners (“NAIC”) has established RBC standards for U.S. life insurers, as well as a risk-based capital model act (the “RBC Model Act”) that has been adopted by the insurance regulatory authorities. The RBC Model Act requires that life insurers annually submit a report to state regulators regarding their RBC based upon four categories of risk: asset risk; insurance risk; interest rate risk; and business risk. The capital requirement for each is determined by applying factors that vary based upon the degree of risk to various asset, premiums and policy benefit reserve items. The formula is an early warning tool to identify possible weakly capitalized companies for purposes of initiating further regulatory action.

As of June 30, 2017, our U.S. life insurance subsidiaries had statutory capital and RBC substantially in excess of the applicable statutory requirements and remained well positioned to support existing operations and fund future growth.

In Canada, an insurer’s minimum capital requirement is overseen by the Office of the Superintendent of Financial Institutions (“OSFI”) and determined as the sum of the capital requirements for five categories of risk: asset default risk; mortality/morbidity/lapse risks; changes in interest rate environment risk; segregated funds risk; and foreign exchange risk. As of June 30, 2017, Primerica Life Canada was in compliance with Canada’s minimum capital requirements as determined by OSFI.

Redundant Reserve Financings. The Model Regulation entitled Valuation of Life Insurance Policies, commonly known as Regulation XXX, requires insurers to carry statutory policy benefit reserves for term life insurance policies with long-term premium guarantees which are often significantly in excess of the future policy benefit reserves that insurers deem necessary to satisfy claim obligations ("redundant policy benefit reserves"). Accordingly, many insurance companies have sought ways to reduce their capital needs by financing redundant policy benefit reserves through bank financing, reinsurance arrangements and other financing transactions.

We have established Peach Re, Inc. ("Peach Re") and Vidalia Re as special purpose financial captive insurance companies and wholly owned subsidiaries of Primerica Life. Primerica Life has ceded certain term life policies issued prior to 2011 to Peach Re as part of a Regulation XXX redundant reserve financing transaction (the “Peach Re Redundant Reserve Financing Transaction”) and has ceded certain term life policies issued in 2011through 2016 to Vidalia Re as part of a Regulation XXX redundant reserve financing transaction (the “Vidalia Re Redundant Reserve Financing Transaction”). These redundant reserve financing transactions allow us to more efficiently manage and deploy our capital. The NAIC has adopted a model regulation for determining reserves using a principle-based approach (“principle-based reserves” or “PBR”), which is designed to reflect each insurer’s own experience in calculating reserves and move away from a standardized reserving formula. PBR has been adopted by almost all state insurance departments effective in 2017, but has not yet been adopted by Massachusetts or New York, where PLIC and NBLIC, respectively, are domiciled. If adopted, the new principle-based reserve regulation will greatly reduce the statutory policy benefit reserve requirements, but will only apply for business issued after the effective date. See Note 10 (Commitments and Contingent Liabilities), Note 3 (Investments), and Note 12 (Debt) to our unaudited condensed consolidated financial statements included elsewhere in this report for more information on these redundant reserve financing transactions.

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Notes Payable. The Company has $375.0 million of publicly-traded, Senior Notes outstanding with an annual interest rate of 4.75%, payable semi-annually in arrears on January 15 and July 15. The Senior Notes mature July 15, 2022.

We were in compliance with the covenants of the Senior Notes at June 30, 2017. No events of default(s) occurred during the three months ended June 30, 2017.

Rating Agencies.There have been no changes to Primerica, Inc.'s Senior Notes ratings or Primerica Life's financial strength ratings since December 31, 2016.

Short-Term Borrowings.We had no short-term borrowings as of or during the three months ended June 30, 2017.

Surplus Note. Vidalia Re issued the Surplus Note in exchange for the LLC Note as a part of the Vidalia Re Redundant Reserve Financing Transaction. The Surplus Note has a principal amount equal to the LLC Note and is scheduled to mature on December 31, 2030. For more information on the Surplus Note, see Note 12 (Debt) to our unaudited condensed consolidated financial statements included elsewhere in this report.

Off-Balance Sheet Arrangements.Our off-balance sheet arrangements as of June 30, 2017 consisted of the letter of credit issued under the credit facility agreement with Deutsche Bank (the “Credit Facility Agreement”) and associated with the Peach Re Redundant Reserve Financing Transaction as described in Note 10 (Commitments and Contingent Liabilities) to our unaudited condensed consolidated financial statements included elsewhere in this report.

Contractual Obligations Update. There has been no material changes in contractual obligations from those disclosed in the 2016 Annual Report.  

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CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

Investors are cautioned that certain statements contained in this report as well as some statements in periodic press releases and some oral statements made by our officials during our presentations are “forward-looking” statements. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, and may contain the words “expect”, “intend”, “plan”, “anticipate”, “estimate”, “believe”, “will be”, “will continue”, “will likely result”, and similar expressions, or future conditional verbs such as “may”, “will”, “should”, “would”, and “could.” In addition, any statement concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible actions taken by us or our subsidiaries are also forward-looking statements. These forward-looking statements involve external risks and uncertainties, including, but not limited to, those described under the section entitled “Risk Factors” included herein.

Forward-looking statements are based on current expectations and projections about future events and are inherently subject to a variety of risks and uncertainties, many of which are beyond the control of our management team. All forward-looking statements in this report and subsequent written and oral forward-looking statements attributable to us, or to persons acting on our behalf, are expressly qualified in their entirety by these risks and uncertainties. These risks and uncertainties include, among others:

• our failure to continue to attract new recruits, retain sales representatives or license or maintain the licensing of our independent sales representatives would materially adversely affect our business, financial condition and results of operations;

• there are a number of laws and regulations that could apply to our distribution model, which could require us to modify our distribution structure;

• there may be adverse tax, legal or financial consequences if the independent contractor status of our independent sales representatives is overturned;

• the Company’s or its independent sales representatives' violation of, or non-compliance with, laws and regulations and related claims and proceedings could expose us to material liabilities;

• any failure to protect the confidentiality of client information could adversely affect our reputation and have a material adverse effect on our business, financial condition and results of operations;

• we may face significant losses if our actual experience differs from our expectations regarding mortality or persistency;

• the occurrence of a catastrophic event could materially adversely affect our business, financial condition and results of operations;

• our insurance business is highly regulated, and statutory and regulatory changes may materially adversely affect our business, financial condition and results of operations;

• a decline in the regulatory capital ratios of our insurance subsidiaries could result in increased scrutiny by insurance regulators and ratings agencies and have a material adverse effect on our business, financial condition and results of operations;

• a significant ratings downgrade by a ratings organization could materially adversely affect our business, financial condition and results of operations;

• the failure by any of our reinsurers or reserve financing counterparties to perform its obligations to us could have a material adverse effect on our business, financial condition and results of operations;

• our Investment and Savings Products segment is heavily dependent on mutual fund and annuity products offered by a relatively small number of companies, and, if these products fail to remain competitive with other investment options or we lose our relationship with one or more of these companies, our business, financial condition and results of operations may be materially adversely affected;

• the Company’s or its securities-licensed independent sales representatives' violations of, or non-compliance with, laws and regulations could expose us to material liabilities;

• if heightened standards of conduct or more stringent licensing requirements, such as those proposed by the Securities and Exchange Commission and those adopted by the Department of Labor, are imposed on us or our independent sales representatives, or selling compensation is reduced as a result of new legislation or regulations, it could have a material adverse effect on our business, financial condition and results of operations;

• if our suitability policies and procedures were deemed inadequate, it could have a material adverse effect on our business, financial condition and results of operations;

• our sales force support tools may fail to appropriately identify financial needs or suitable investment products;

• non-compliance with applicable regulations could lead to revocation of our subsidiary's status as a non-bank custodian;

• as our securities sales increase, we become more sensitive to performance of the equity markets;

• credit deterioration in, and the effects of interest rate fluctuations on, our invested asset portfolio and other assets that are subject to changes in credit quality and interest rates could materially adversely affect our business, financial condition and results of operations;

• valuation of our investments and the determination of whether a decline in the fair value of our invested assets is other-than-temporary are based on estimates that may prove to be incorrect;

• changes in accounting standards can be difficult to predict and could adversely impact how we record and report our financial condition and results of operations;

• the effects of economic down cycles in the United States and Canada could materially adversely affect our business, financial condition and results of operations;

• we are subject to various federal, state and provincial laws and regulations in the United States and Canada, changes in which or violations of which may require us to alter our business practices and could materially adversely affect our business, financial condition and results of operations;

36

• litigation and regulatory investigations and actions may result in financial losses and harm our reputation;

• the current legislative and regulatory climate with regard to financial services may adversely affect our business, financial condition, and results of operations;

• the inability of our subsidiaries to pay dividends or make distributions or other payments to us in sufficient amounts would impede our ability to meet our obligations and return capital to our stockholders;

• a significant change in the competitive environment in which we operate could negatively affect our ability to maintain or increase our market share and profitability;

• the loss of key employees and sales force leaders could negatively affect our financial results and impair our ability to implement our business strategy;

• if one of our significant information technology systems fails, if its security is compromised, or if the Internet becomes disabled or unavailable, our business, financial condition and results of operations may be materially adversely affected;

• the current legislative and regulatory climate with regard to cybersecurity may adversely affect our business, financial condition, and results of operations;

• in the event of a disaster, our business continuity plan may not be sufficient, which could have a material adverse effect on our business, financial condition and results of operations;

• we may be materially adversely affected by currency fluctuations in the United States dollar versus the Canadian dollar; and

• the market price of our common stock may fluctuate.

Developments in any of these areas could cause actual results to differ materially from those anticipated or projected or cause a significant reduction in the market price of our common stock.

The foregoing list of risks and uncertainties may not contain all of the risks and uncertainties that could affect us. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this report may not in fact occur. Accordingly, undue reliance should not be placed on these statements. We undertake no obligation to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise, except as otherwise required by law.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

There have been no material changes in our exposures to market risk since December 31, 2016. For details on the Company's interest rate, foreign currency exchange, and credit risks, see "Item 7A. Quantitative and Qualitative Information About Market Risks" in our 2016 Annual Report.

ITEM 4.  CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report (the “Evaluation Date”). Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the Evaluation Date, the Company’s disclosure controls and procedures are effective.

Changes in Internal Control Over Financial Reporting

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the second quarter of 2017 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.

We are involved from time to time in legal disputes, regulatory inquiries and arbitration proceedings in the normal course of business. Additional information regarding certain legal proceedings to which we are a party is described under “Contingent Liabilities” in Note 10 (Commitments and Contingent Liabilities) to our unaudited condensed consolidated financial statements included elsewhere in this report, and such information is incorporated herein by reference. As of the date of this report, we do not believe any pending legal proceeding to which Primerica or any of its subsidiaries is a party is required to be disclosed pursuant to this item.

ITEM 1A.  RISK FACTORS.

The following supplements and amends the Risk Factors contained in our Annual Report on Form 10-K for the year ended December 31, 2016, which are incorporated herein by reference.

37

If heightened standards of conduct or more stringent licensing requirements, such as those proposed by the Securities and Exchange Commission (“SEC”) and those adopted by the Department of Labor (“DOL”), are imposed on us or our independent sales representatives, or selling compensation is reduced as a result of new legislation or regulations, it could have a material adverse effect on our business, financial condition and results of operations.

Our independent U.S. sales representatives are subject to federal and state regulation as well as state licensing requirements. PFS Investments, which is regulated as a broker-dealer, and our independent U.S. sales representatives are currently subject to general anti-fraud limitations under the Exchange Act and SEC rules and regulations, as well as other conduct standards prescribed by the Financial Industry Regulatory Authority (“FINRA”). These standards generally require that broker-dealers and their sales representatives disclose conflicts of interest that might affect the advice or recommendations they provide and require them to make suitable investment recommendations to their customers. In January 2011 under the authority of the Dodd-Frank Act, which gives the SEC the power to impose on broker-dealers a heightened standard of conduct that is currently applicable only to investment advisers, the SEC staff submitted a report to Congress in which it recommended that the SEC adopt a fiduciary standard of conduct for broker-dealers that is uniform with that of investment advisors. The SEC has slated the rule on its regulatory agenda for “long-term action” without a specific timetable.

On April 8, 2016, the DOL published a final rule (the “DOL Fiduciary Rule”), which more broadly defines the circumstances under which a person or entity may be considered a fiduciary for purposes of the prohibited transaction rules of the Employee Retirement Income Security Act and Internal Revenue Code (“IRC”) Section 4975. IRC Section 4975 prohibits certain types of compensation paid by third parties with respect to transactions involving assets in qualified accounts, including IRAs. Simultaneously with publication of the DOL Fiduciary Rule, the DOL issued new, and amended existing, exemptions intended, among other things, to allow advisers and their firms to continue to receive common forms of compensation that would otherwise be prohibited due to the DOL Fiduciary Rule, provided the conditions of the exemptions are met. On February 3, 2017, the President of the United States issued a memorandum directing the DOL to review the DOL Fiduciary Rule and the exemptions to determine, based on certain factors, whether they should be revised or rescinded. The DOL Fiduciary Rule and transitional exemptions became applicable on June 9, 2017, with the final exemptions scheduled to go into effect on January 1, 2018, though this date could be delayed. The DOL has stated that it will conduct the review and make the determinations directed by the President during the transition period from June 9, 2017 until January 1, 2018.

If the DOL Fiduciary Rule and the final exemptions were to become applicable without revisions, we believe that certain changes to our qualified plan business would be needed in order for us to continue to help investors save for retirement. Due to the uncertain status of the DOL Fiduciary Rule and the final exemptions, we cannot determine the extent and nature of the changes we ultimately will make. Additionally, we have not determined the extent to which we would make necessitated compensation, product or other changes to our qualified investment and savings plan business, nor whether we would make such changes consistent across our non-qualified investment and savings business. While we have incurred, and would expect to continue to incur, increased costs, we cannot quantify the collective impact of those costs and other changes on the Company. IRAs and other qualified accounts are a core component of the Investment and Savings Products segment of our business and accounted for a significant portion of the total revenue of this segment for the year ended December 31, 2016. Changes resulting from the DOL Fiduciary Rule could make it more difficult for us and our independent sales representatives to profitably serve the middle-income market and could result in a reduction in the number of IRAs and qualified accounts that we serve, which could materially adversely affect the amount of revenue that we generate from this line of business and ultimately could result in a decline in the number of our securities-licensed sales representatives.

Heightened standards of conduct as a result of either of the above items or another similar proposed rule or regulation could also increase the compliance and regulatory burdens on our independent representatives, and could lead to increased litigation and regulatory risks, changes to our business model, a decrease in the number of our securities-licensed representatives and a reduction in the products we offer to our clients, any of which could have a material adverse effect on our business, financial condition and results of operations.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

During the quarter ended June 30, 2017, we repurchased shares of our common stock as follows:

Period	Total number of shares purchased(1)		Average price paid per share(1)		Total number of shares purchased as part of publicly announced plans or programs		Approximate dollar value of shares that may yet be purchased under the plans or programs(2)
April 1-30, 2017		115,054	$	82.56		115,054	$	160,650,200
May 1-31, 2017		192,087		79.00		192,069		145,476,749
June 1-30, 2017		277,557		73.85		277,557		124,979,165
Total		584,698	$	77.26		584,680	$	124,979,165

⁽¹⁾ Consists of (a) repurchases of 18 shares at an average price of $83.80 arising from share-based compensation tax withholdings and (b) open market repurchases of shares under the share repurchase program approved by our Board of Directors.

⁽²⁾      In November 2016, the Company's Board of Directors authorized $200.0 million of share repurchases through June 30, 2018.

38

For information regarding year-to-date share repurchases, refer to Note 7 (Stockholders' Equity) to our unaudited condensed consolidated financial statements included elsewhere in this report.

ITEM 6.  EXHIBITS.

The agreements included as exhibits to this report are included to provide you with information regarding the terms of these agreements and are not intended to provide any other factual or disclosure information about the Company or its subsidiaries, our business or the other parties to these agreements. These agreements may contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and:

• should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate;

• have been qualified by disclosures that were made to the other party in connection with the negotiation of the application agreement, which disclosures are not necessarily reflected in the agreement;

• may apply standards of materiality in a way that is different from what may be viewed as material to our investors; and

• were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments.

Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time, and should not be relied upon by investors.

Exhibit Number	Description	Reference
31.1	Rule 13a-14(a)/15d-14(a) Certification, executed by Glenn J. Williams, Chief Executive Officer.	Filed with the Securities and Exchange Commission as part of this Quarterly Report.
31.2	Rule 13a-14(a)/15d-14(a) Certification, executed by Alison S. Rand, Executive Vice President and Chief Financial Officer.	Filed with the Securities and Exchange Commission as part of this Quarterly Report.
32.1	Certifications required by Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350), executed by Glenn J. Williams, Chief Executive Officer, and Alison S. Rand, Executive Vice President and Chief Financial Officer.	Filed with the Securities and Exchange Commission as part of this Quarterly Report.
101.INS	XBRL Instance Document(1)	Filed with the Securities and Exchange Commission as part of this Quarterly Report.
101.SCH	XBRL Taxonomy Extension Schema	Filed with the Securities and Exchange Commission as part of this Quarterly Report.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase	Filed with the Securities and Exchange Commission as part of this Quarterly Report.
101.DEF	XBRL Taxonomy Extension Definition Linkbase	Filed with the Securities and Exchange Commission as part of this Quarterly Report.
101.LAB	XBRL Taxonomy Extension Label Linkbase	Filed with the Securities and Exchange Commission as part of this Quarterly Report.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase	Filed with the Securities and Exchange Commission as part of this Quarterly Report.

⁽¹⁾ Includes the following materials contained in this Quarterly Report on Form 10-Q for the period ended June 30, 2017, formatted in XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Income, (iii) Condensed Consolidated Statements of Comprehensive Income (Loss), (iv) Condensed Consolidated Statements of Stockholders’ Equity, (v) Condensed Consolidated Statements of Cash Flows, and (vi) Notes to Condensed Consolidated Financial Statements.  

39

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Primerica, Inc.
August 9, 2017	/s/ Alison S. Rand
	Alison S. Rand
	Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

40

EX-31.1

EXHIBIT 31.1

Certification of Chief Executive Officer

I, Glenn J. Williams, Chief Executive Officer of Primerica, Inc., certify that:

1.I have reviewed this quarterly report on Form 10-Q of Primerica, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 9, 2017	/s/ Glenn J. Williams
		Glenn J. Williams
		Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Certification of Chief Financial Officer

I, Alison S. Rand, Executive Vice President and Chief Financial Officer of Primerica, Inc., certify that:

1.I have reviewed this quarterly report on Form 10-Q of Primerica, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 9, 2017	/s/ Alison S. Rand
		Alison S. Rand
		Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

Certification of CEO and CFO Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the quarterly report on Form 10-Q of Primerica, Inc. (the “Company”) for the period ended June 30, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Glenn J. Williams, as Chief Executive Officer of the Company, and I, Alison S. Rand, as Executive Vice President and Chief Financial Officer of the Company, each hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) To my knowledge, the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Glenn J. Williams
Name:	Glenn J. Williams
Title:	Chief Executive Officer
Date:	August 9, 2017
/s/ Alison S. Rand
Name:	Alison S. Rand
Title:	Executive Vice President and Chief Financial Officer
Date:	August 9, 2017

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 31, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	Primerica, Inc.
Entity Central Index Key	0001475922
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		44,885,550

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017		Dec. 31, 2016
Investments:
Fixed-maturity securities available-for-sale, at fair value (amortized cost: $1,822,890 in 2017 and $1,734,683 in 2016)	$ 1,888,983	[1]	$ 1,792,438	[2]
Fixed-maturity securities held-to-maturity, at amortized cost (fair value: $665,801 in 2017 and $513,015 in 2016)	635,690		503,230
Equity securities available-for-sale, at fair value (cost: $35,369 in 2017 and $36,818 in 2016)	45,936		44,894
Trading securities, at fair value (cost: $15,538 in 2017 and $7,382 in 2016)	15,541		7,383
Policy loans	34,316		30,916
Total investments	2,620,466		2,378,861
Cash and cash equivalents	154,499		211,976
Accrued investment income	16,585		16,520
Due from reinsurers	4,191,754		4,193,562
Deferred policy acquisition costs, net	1,833,877		1,713,065
Agent balances, due premiums and other receivables	223,923		210,448
Intangible assets, net (accumulated amortization: $76,933 in 2017 and $75,231 in 2016)	53,214		54,915
Income taxes	39,764		37,369
Other assets	386,279		334,274
Separate account assets	2,424,937		2,287,953
Total assets	11,945,298		11,438,943
Liabilities:
Future policy benefits	5,812,217		5,673,890
Unearned premiums	500		527
Policy claims and other benefits payable	267,630		268,136
Other policyholders’ funds	377,313		363,038
Notes payable	373,103		372,919
Surplus note	634,980		502,491
Income taxes	241,314		225,006
Other liabilities	428,176		449,963
Payable under securities lending	115,875		73,646
Separate account liabilities	2,424,937		2,287,953
Commitments and contingent liabilities (see Commitments and Contingent Liabilities note)
Total liabilities	10,676,045		10,217,569
Stockholders’ equity:
Common stock ($0.01 par value; authorized 500,000 in 2017 and 2016; issued and outstanding 45,035 shares in 2017 and 45,721 shares in 2016)	450		457
Paid-in capital			52,468
Retained earnings	1,224,375		1,138,851
Accumulated other comprehensive income (loss), net of income tax:
Unrealized foreign currency translation gains (losses)	(5,401)		(13,193)
Net unrealized investment gains (losses):
Net unrealized investment gains not other-than-temporarily impaired	49,883		42,852
Net unrealized investment losses other-than-temporarily impaired	(54)		(61)
Total stockholders’ equity	1,269,253		1,221,374
Total liabilities and stockholders’ equity	$ 11,945,298		$ 11,438,943

[1] Includes approximately $0.1 million of other-than-temporary impairment (“OTTI”) losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income.

[2] Includes approximately $0.1 million of OTTI related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income.

XML

Condensed Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands	Jun. 30, 2017		Dec. 31, 2016
Investments:
Fixed-maturity securities available for sale, amortized cost	$ 1,822,890	[1]	$ 1,734,683	[2]
Fixed-maturity securities held to maturity, fair value	665,801		513,015
Equity securities available for sale, cost	35,369		36,818
Trading securities, cost	15,538		7,382
Intangible assets, net
Accumulated amortization on definite-lived intangible assets	$ 76,933		$ 75,231
Stockholders’ equity:
Common stock, par value	$ 0.01		$ 0.01
Common stock, shares authorized	500,000,000		500,000,000
Common stock, shares issued	45,035,000		45,721,000
Common stock, shares outstanding	45,035,000		45,721,000

[1] Includes approximately $0.1 million of other-than-temporary impairment (“OTTI”) losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income.

[2] Includes approximately $0.1 million of OTTI related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income.

XML

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues:
Direct premiums	$ 637,426	$ 612,189	$ 1,265,124	$ 1,209,319
Ceded premiums	(406,043)	(406,683)	(805,811)	(802,017)
Net premiums	231,383	205,506	459,313	407,302
Commissions and fees	148,317	136,902	292,584	265,723
Investment income net of investment expenses	25,829	24,994	51,442	50,387
Interest expense on surplus note	(6,087)	(4,605)	(11,806)	(8,760)
Net investment income	19,742	20,389	39,636	41,627
Realized investment gains (losses), including other-than- temporary impairment losses	104	3,440	238	2,657
Other, net	14,150	12,757	27,089	24,284
Total revenues	413,696	378,994	818,860	741,593
Benefits and expenses:
Benefits and claims	99,512	88,984	201,897	179,961
Amortization of deferred policy acquisition costs	47,861	38,720	99,710	81,849
Sales commissions	75,440	70,146	149,144	136,789
Insurance expenses	36,920	32,906	74,541	66,035
Insurance commissions	5,157	4,472	10,057	8,619
Interest expense	7,143	7,178	14,270	14,350
Other operating expenses	45,274	44,708	98,011	91,898
Total benefits and expenses	317,307	287,114	647,630	579,501
Income before income taxes	96,389	91,880	171,230	162,092
Income taxes	33,282	32,554	56,054	57,590
Net income	$ 63,107	$ 59,326	$ 115,176	$ 104,502
Earnings per share:
Basic earnings per share	$ 1.36	$ 1.23	$ 2.48	$ 2.15
Diluted earnings per share	$ 1.36	$ 1.23	$ 2.47	$ 2.15
Weighted-average shares used in computing earnings per share:
Basic	45,984	47,658	46,142	48,104
Diluted	46,071	47,708	46,222	48,141
Supplemental disclosures:
Total impairment losses	$ (484)	$ (803)	$ (695)	$ (2,830)
Net impairment losses recognized in earnings	(484)	(803)	(695)	(2,830)
Other net realized investment gains	588	4,243	933	5,487
Realized investment gains (losses), including other-than- temporary impairment losses	$ 104	$ 3,440	$ 238	$ 2,657
Dividends declared per share	$ 0.19	$ 0.17	$ 0.38	$ 0.34

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 63,107	$ 59,326	$ 115,176	$ 104,502
Unrealized investment gains (losses):
Change in unrealized holding gains (losses) on investment securities	3,889	33,568	11,170	58,284
Reclassification adjustment for realized investment (gains) losses included in net income	(273)	(3,219)	(341)	(2,332)
Foreign currency translation adjustments:
Change in unrealized foreign currency translation gains (losses) before income tax expense (benefit)	6,753	(1,167)	7,880	14,869
Total other comprehensive income (loss) before income taxes	10,369	29,182	18,709	70,821
Income tax expense (benefit) related to items of other comprehensive income (loss)	1,339	10,612	3,879	19,741
Other comprehensive income (loss), net of income taxes	9,030	18,570	14,830	51,080
Total comprehensive income	$ 72,137	$ 77,896	$ 130,006	$ 155,582

XML

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance, beginning of period at Dec. 31, 2015		$ 483	$ 180,250	$ 952,804	$ 12,235
Repurchases of common stock		(21)	(94,294)
Share-based compensation			16,873
Net issuance of common stock		4	(4)
Net income	$ 104,502			104,502
Dividends				(16,446)
Change in foreign currency translation adjustment, net of income tax expense (benefit)					14,710
Change in net unrealized investment gains (losses) not-other-than temporarily impaired, net of income tax expense (benefit)					36,365
Change in net unrealized investment losses other-than-temporarily impaired, net of income tax expense (benefit)					5
Balance, end of period at Jun. 30, 2016	1,207,466	466	102,825	1,040,860	63,315
Balance, beginning of period at Dec. 31, 2016	1,221,374	457	52,468	1,138,851	29,598
Repurchases of common stock		(11)	(69,556)	(11,972)
Share-based compensation			17,092
Net issuance of common stock		4	$ (4)
Net income	115,176			115,176
Dividends				(17,680)
Change in foreign currency translation adjustment, net of income tax expense (benefit)					7,792
Change in net unrealized investment gains (losses) not-other-than temporarily impaired, net of income tax expense (benefit)					7,031
Change in net unrealized investment losses other-than-temporarily impaired, net of income tax expense (benefit)					7
Balance, end of period at Jun. 30, 2017	$ 1,269,253	$ 450		$ 1,224,375	$ 44,428

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income	$ 115,176	$ 104,502
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Change in future policy benefits and other policy liabilities	139,105	116,415
Deferral of policy acquisition costs	(208,391)	(183,145)
Amortization of deferred policy acquisition costs	99,710	81,849
Change in income taxes	5,782	36,306
Excess tax benefits on share-based compensation	4,238	1,448
Realized investment (gains) losses, including other-than-temporary impairments	(238)	(2,657)
Accretion and amortization of investments	(684)	(723)
Depreciation and amortization	6,994	7,108
Change in due from reinsurers	11,394	(17,062)
Change in agent balances, due premiums and other receivables	(13,475)	(24,445)
Trading securities sold, matured, or called (acquired), net	(8,173)	(2,658)
Share-based compensation	11,667	10,031
Change in other operating assets and liabilities, net	(43,235)	(21,620)
Net cash provided by (used in) operating activities	119,870	105,349
Available-for-sale investments sold, matured or called:
Fixed-maturity securities — sold	43,232	69,925
Fixed-maturity securities — matured or called	98,904	137,044
Equity securities	562	3,297
Available-for-sale investments acquired:
Fixed-maturity securities	(214,974)	(133,604)
Equity securities	(212)	(986)
Purchases of property and equipment and other investing activities, net	(6,194)	(10,679)
Cash collateral received (returned) on loaned securities, net	42,229	20,419
Sales (purchases) of short-term investments using securities lending collateral, net	(42,229)	(20,419)
Net cash provided by (used in) investing activities	(78,682)	64,997
Cash flows from financing activities:
Dividends paid	(17,680)	(16,446)
Common stock repurchased	(75,042)	(90,558)
Tax withholdings on share-based compensation	(6,497)	(3,757)
Net cash provided by (used in) financing activities	(99,219)	(110,761)
Effect of foreign exchange rate changes on cash	554	1,212
Change in cash and cash equivalents	(57,477)	60,797
Cash and cash equivalents, beginning of period	211,976	152,294
Cash and cash equivalents, end of period	$ 154,499	$ 213,091

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Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies (Notes)

6 Months Ended

Jun. 30, 2017

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies

(1) Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies

Description of Business. Primerica, Inc. (the "Parent Company"), together with its subsidiaries (collectively, "we", "us" or the "Company"), is a leading distributor of financial products to middle-income households in the United States and Canada. We assist our clients in meeting their needs for term life insurance, which we underwrite, and mutual funds, annuities, managed investments and other financial products, which we distribute primarily on behalf of third parties. Our primary subsidiaries include the following entities: Primerica Financial Services, Inc. ("PFS"), a general agency and marketing company; Primerica Life Insurance Company ("Primerica Life"), our principal life insurance company; Primerica Financial Services (Canada) Ltd., a holding company for our Canadian operations, which includes Primerica Life Insurance Company of Canada ("Primerica Life Canada") and PFSL Investments Canada Ltd. ("PFSL Investments Canada"); and PFS Investments Inc. ("PFS Investments"), an investment products company and broker-dealer. Primerica Life, domiciled in Massachusetts, owns National Benefit Life Insurance Company ("NBLIC"), a New York insurance company. We established Peach Re, Inc. ("Peach Re") and Vidalia Re, Inc. (“Vidalia Re”) as special purpose financial captive insurance companies and wholly owned subsidiaries of Primerica Life. Peach Re and Vidalia Re have each entered into separate coinsurance agreements with Primerica Life whereby Primerica Life has ceded certain level-premium term life insurance policies to Peach Re and Vidalia Re (respectively, the “Peach Re Coinsurance Agreement” and the “Vidalia Re Coinsurance Agreement”).

Basis of Presentation. We prepare our financial statements in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). These principles are established primarily by the Financial Accounting Standards Board ("FASB"). The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect financial statement balances, revenues and expenses and cash flows, as well as the disclosure of contingent assets and liabilities. Management considers available facts and knowledge of existing circumstances when establishing the estimates included in our financial statements.

The accompanying unaudited condensed consolidated financial statements contain all adjustments, generally consisting of normal recurring accruals, which are necessary to fairly present the balance sheets as of June 30, 2017 and December 31, 2016, the statements of income and comprehensive income (loss) for the three and six months ended June 30, 2017 and 2016, and the statements of stockholders' equity and cash flows for the six months ended June 30, 2017 and 2016. Results of operations for interim periods are not necessarily indicative of results for the entire year or of the results to be expected in future periods.

These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are sufficient to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2016 ("2016 Annual Report").

Use of Estimates. The most significant items that involve a greater degree of accounting estimates and actuarial determinations subject to change in the future are the valuation of investments, deferred policy acquisition costs ("DAC"), liabilities for future policy benefits and unpaid policy claims, and income taxes. Estimates for these and other items are subject to change and are reassessed by management in accordance with U.S. GAAP. Actual results could differ from those estimates.

Consolidation. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and those entities required to be consolidated under applicable accounting standards. All material intercompany profits, transactions, and balances among the consolidated entities have been eliminated.

Reclassifications. Certain reclassifications have been made to prior-period amounts to conform to current-period reporting classifications. These reclassifications had no impact on net income or total stockholders' equity.

Significant Accounting Policies. All significant accounting policies remain unchanged from the 2016 Annual Report.

New Accounting Principles. In March 2016, the FASB issued Accounting Standards Update No 2016-09 (“ASU 2016-09”) Compensation—Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 intends to simplify several aspects of the accounting for share-based payment transactions, including the recognition of income tax consequences of awards, the classification of awards as either equity or liabilities, the method of recognizing award forfeitures, and the presentation of items within the statement of cash flows. The most notable impact on the Company’s financial statements involved the change in accounting for the income tax consequences associated with share-based payment transactions in the income statement. Prior to the adoption of ASU 2016-09, the tax effect of the difference between the cumulative compensation cost of a share-based award recognized for financial reporting purposes and the deduction of the award for tax purposes (“excess tax benefits or deficiencies”) was recognized as an adjustment to additional paid-in capital in the statement of stockholders’ equity. The amendments in ASU 2016-09 require that the excess tax benefits or deficiencies be recognized as a reduction to or an increase of income tax expense in the income statement. We adopted the amendments in ASU 2016-09 pertaining to excess tax benefits or deficiencies during the first quarter of 2017 on a prospective basis, which resulted in a reduction of income tax expense of approximately $0.9 million and $4.2 million for the excess tax benefit of share-based transactions for the three and six months ended June 30, 2017, respectively. ASU 2016-09 also changes the presentation of excess tax benefits or deficiencies in the cash flow statement from a financing activity to an operating activity. Therefore, we have presented the excess tax benefits or deficiencies as cash flows from operating activities within the accompanying consolidated statements of cash flows for all periods presented. The adoption of all other amendments outlined in ASU 2016-09 had either no impact to our financial statements or an immaterial impact to our financial statements.

Future Application of Accounting Standards. Recent accounting guidance not discussed above is not applicable, is immaterial to our financial statements, or did not or is not expected to have a material impact on our business. For additional information on new accounting pronouncements and recent accounting principles and their impact, if any, on our financial position or results of operations, see Note 1 (Description of Business, Basis of Presentation, and Summary of Accounting Policies) to our consolidated financial statements within our 2016 Annual Report and in the unaudited condensed consolidated financial statements included in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017.

Subsequent Events. The Company has evaluated subsequent events for recognition and disclosure for occurrences and transactions after the date of the unaudited condensed consolidated financial statements dated as of June 30, 2017.

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Segment and Geographical Information (Notes)

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment and Geographical Information

(2) Segment and Geographical Information

Segments. We have two primary operating segments — Term Life Insurance and Investment and Savings Products. We also have a Corporate and Other Distributed Products segment.

Notable information included in profit or loss by segment was as follows:

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(In thousands)
Revenues:
Term life insurance segment	$	238,901		$	210,559		$	472,953		$	416,655
Investment and savings products segment		143,774			132,608			284,180			257,525
Corporate and other distributed products segment		31,021			35,827			61,727			67,413
Total revenues	$	413,696		$	378,994		$	818,860		$	741,593
Net investment income:
Term life insurance segment	$	2,347		$	1,871		$	4,650		$	3,721
Investment and savings products segment		-			-			-			-
Corporate and other distributed products segment		17,395			18,518			34,986			37,906
Total net investment income	$	19,742		$	20,389		$	39,636		$	41,627
Amortization of DAC:
Term life insurance segment	$	44,937		$	36,477		$	95,070		$	77,702
Investment and savings products segment		2,310			1,704			4,044			3,623
Corporate and other distributed products segment		614			539			596			524
Total amortization of DAC	$	47,861		$	38,720		$	99,710		$	81,849
Non-cash share-based compensation expense:
Term life insurance segment	$	301		$	349		$	2,077		$	1,982
Investment and savings products segment		361			347			1,541			1,503
Corporate and other distributed products segment		1,261			1,853			8,049			6,546
Total non-cash share-based compensation expense	$	1,923		$	2,549		$	11,667		$	10,031
Income (loss) before income taxes:
Term life insurance segment	$	61,854		$	58,018		$	110,877		$	104,098
Investment and savings products segment		39,684			36,064			76,803			67,755
Corporate and other distributed products segment		(5,149	)		(2,202	)		(16,450	)		(9,761	)
Total income before income taxes	$	96,389		$	91,880		$	171,230		$	162,092

Total assets by segment were as follows:

	June 30, 2017		December 31, 2016
	(In thousands)
Assets:
Term life insurance segment	$	6,066,410	$	5,945,502
Investment and savings products segment (1)		2,537,909		2,391,512
Corporate and other distributed products segment		3,340,979		3,101,929
Total assets	$	11,945,298	$	11,438,943

⁽¹⁾ The Investment and Savings Products segment includes assets held in separate accounts. Excluding separate accounts, the Investment and Savings Products segment assets were approximately $113.1 million and $103.7 million as of June 30, 2017 and December 31, 2016, respectively.

Geographical Information. Results of operations by country and long-lived assets, primarily tangible assets reported in other assets in our unaudited condensed consolidated balance sheets, were as follows:

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
	(In thousands)
Revenues by country:
United States	$	349,388	$	319,154	$	689,182	$	624,056
Canada		64,308		59,840		129,678		117,537
Total revenues	$	413,696	$	378,994	$	818,860	$	741,593
Income before income taxes by country:
United States	$	77,511	$	73,653	$	135,543	$	128,610
Canada		18,878		18,227		35,687		33,482
Total income before income taxes	$	96,389	$	91,880	$	171,230	$	162,092

	June 30, 2017		December 31, 2016
	(In thousands)
Long-lived assets by country:
United States	$	30,402	$	26,685
Canada		772		780
Total long-lived assets	$	31,174	$	27,465

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Investments (Notes)

6 Months Ended

Jun. 30, 2017

Investments Debt And Equity Securities [Abstract]

Investments

(3) Investments

Available-for-sale Securities. The period-end cost or amortized cost, gross unrealized gains and losses, and fair value of available-for-sale fixed-maturity and equity securities follow:

	June 30, 2017
	Cost or amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
	(In thousands)
Securities available-for-sale, carried at fair value:
Fixed-maturity securities:
U.S. government and agencies	$	9,087	$	311	$	(16	)	$	9,382
Foreign government		132,465		6,752		(358	)		138,859
States and political subdivisions		52,101		1,968		(92	)		53,977
Corporates		1,328,419		53,378		(3,034	)		1,378,763
Residential mortgage-backed securities		94,643		4,409		(116	)		98,936
Commercial mortgage-backed securities		125,096		2,880		(316	)		127,660
Other asset-backed securities		81,079		482		(155	)		81,406
Total fixed-maturity securities(1)		1,822,890		70,180		(4,087	)		1,888,983
Equity securities		35,369		10,667		(100	)		45,936
Total fixed-maturity and equity securities	$	1,858,259	$	80,847	$	(4,187	)	$	1,934,919

⁽¹⁾ Includes approximately $0.1 million of other-than-temporary impairment (“OTTI”) losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income.

	December 31, 2016
	Cost or amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
	(In thousands)
Securities available-for-sale, carried at fair value:
Fixed-maturity securities:
U.S. government and agencies	$	10,148	$	350	$	(24	)	$	10,474
Foreign government		124,274		5,719		(687	)		129,306
States and political subdivisions		43,950		1,903		(129	)		45,724
Corporates		1,281,630		49,272		(5,529	)		1,325,373
Residential mortgage-backed securities		94,708		4,963		(120	)		99,551
Commercial mortgage-backed securities		107,201		2,712		(470	)		109,443
Other asset-backed securities		72,772		98		(303	)		72,567
Total fixed-maturity securities(1)		1,734,683		65,017		(7,262	)		1,792,438
Equity securities		36,818		8,589		(513	)		44,894
Total fixed-maturity and equity securities	$	1,771,501	$	73,606	$	(7,775	)	$	1,837,332

⁽¹⁾ Includes approximately $0.1 million of OTTI related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income.

All of our available-for-sale mortgage- and asset-backed securities represent variable interests in variable interest entities ("VIEs"). We are not the primary beneficiary of these VIEs because we do not have the power to direct the activities that most significantly impact the entities’ economic performance. The maximum exposure to loss as a result of our involvement in these VIEs equals the carrying value of the securities.

The scheduled maturity distribution of the available-for-sale fixed-maturity portfolio at June 30, 2017 follows:

	Amortized cost		Fair value
	(In thousands)
Due in one year or less	$	140,732	$	142,901
Due after one year through five years		752,673		785,331
Due after five years through 10 years		580,961		599,415
Due after 10 years		47,706		53,334
		1,522,072		1,580,981
Mortgage- and asset-backed securities		300,818		308,002
Total fixed-maturity securities	$	1,822,890	$	1,888,983

Expected maturities may differ from scheduled contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties.

Unrealized Gains and Losses on Investments. The net effect on stockholders’ equity of unrealized gains and losses on available-for-sale investments was as follows:

	June 30, 2017			December 31, 2016
	(In thousands)
Net unrealized investment gains including OTTI:
Fixed-maturity and equity securities	$	76,660		$	65,831
OTTI		83			95
Net unrealized investment gains excluding OTTI		76,743			65,926
Deferred income taxes		(26,860	)		(23,074	)
Net unrealized investment gains excluding OTTI, net of tax	$	49,883		$	42,852

Trading Securities. We maintain a portfolio mostly of fixed-maturity securities that are classified as trading securities. The costs and fair values of the fixed-maturity and equity securities classified as trading securities were as follows:

	June 30, 2017				December 31, 2016
	Cost		Fair value		Cost		Fair value
	(In thousands)
Fixed-maturity securities	$	14,238	$	14,236	$	7,332	$	7,332
Equity securities		1,300		1,305		50		51
Total fixed-maturity and equity securities	$	15,538	$	15,541	$	7,382	$	7,383

Held-to-maturity Security. Concurrent with the execution of the Vidalia Re Coinsurance Agreement, Vidalia Re entered into a Surplus Note Purchase Agreement (the "Surplus Note Purchase Agreement") with Hannover Life Reassurance Company of America and certain of its affiliates (collectively, “Hannover Re”) and a newly formed limited liability company (the "LLC") owned by a third party service provider. Under the Surplus Note Purchase Agreement, Vidalia Re issued a surplus note (the “Surplus Note”) to the LLC in exchange for a credit enhanced note from the LLC with an equal principal amount (the “LLC Note”). The principal amount of both the LLC Note and the Surplus Note will fluctuate over time to coincide with the amount of reserves contractually supported under the Vidalia Re Coinsurance Agreement. Both the LLC Note and the Surplus Note mature on December 31, 2030 and bear interest at an annual interest rate of 4.50%. The LLC Note is guaranteed by Hannover Re through a credit enhancement feature in exchange for a fee, which is reflected in interest expense on our unaudited condensed consolidated statements of income.

The LLC is a VIE as its owner does not have an equity investment at risk that is sufficient to permit the LLC to finance its activities without Vidalia Re or Hannover Re. The Parent Company, Primerica Life, and Vidalia Re share the power to direct the activities of the LLC with Hannover Re, but do not have the obligation to absorb losses or the right to receive any residual returns related to the LLC’s primary risks or sources of variability. Through the credit enhancement feature, Hannover Re is the ultimate risk taker in this transaction and bears the obligation to absorb the LLC’s losses in the event of a Surplus Note default in exchange for the fee. Accordingly, the Company is not the primary beneficiary of the LLC and does not consolidate the LLC within its consolidated financial statements.

The LLC Note is classified as a held-to-maturity debt security in the Company’s invested asset portfolio as we have the positive intent and ability to hold the security until maturity. As of June 30, 2017, the LLC Note, which was rated A+ by Fitch Ratings, had an estimated unrealized holding gain of $30.1 millionbased on its amortized cost and estimated fair value, which is derived using the valuation techniques described in Note 4 (Fair Value of Financial Instruments).

See Note 12 (Debt) for more information on the Surplus Note.

Investments on Deposit with Governmental Authorities. As required by law, we have investments on deposit with governmental authorities and banks for the protection of policyholders. The fair values of investments on deposit were approximately $17.9 million and $18.2 million as of June 30, 2017 and December 31, 2016, respectively.

Securities Lending Transactions. We participate in securities lending transactions with broker-dealers and other financial institutions to increase investment income with minimal risk. We require minimum collateral on securities loaned equal to 102% of the fair value of the loaned securities. We accept collateral in the form of securities, which we are not able to sell or encumber, and to the extent the collateral declines in value below 100%, we require additional collateral from the borrower. Any securities collateral received is not reflected on our unaudited condensed consolidated balance sheets. We also accept collateral in the form of cash, all of which we reinvest. For loans involving unrestricted cash collateral, the collateral is reported as an asset with a corresponding liability representing our obligation to return the collateral. We continue to carry the loaned securities as invested assets on our unaudited condensed consolidated balance sheets during the terms of the loans, and we do not report them as sales. Cash collateral received and reinvested was approximately $115.9 million and $73.6 million as of June 30, 2017 and December 31, 2016, respectively.

Investment Income. The components of net investment income were as follows:

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(In thousands)
Fixed-maturity securities (available-for-sale)	$	19,200		$	18,377		$	38,269		$	37,626
Fixed-maturity security (held-to-maturity)		6,087			4,605			11,806			8,760
Equity securities		515			502			1,051			1,021
Policy loans and other invested assets		316			351			622			681
Cash and cash equivalents		246			200			439			349
Total return on deposit asset underlying    10% coinsurance agreement		770			2,185			1,801			4,385
Gross investment income		27,134			26,220			53,988			52,822
Investment expenses		(1,305	)		(1,226	)		(2,546	)		(2,435	)
Investment income net of investment expenses		25,829			24,994			51,442			50,387
Interest expense on surplus note		(6,087	)		(4,605	)		(11,806	)		(8,760	)
Net investment income	$	19,742		$	20,389		$	39,636		$	41,627

The components of net realized investment gains (losses) as well as details on gross realized investment gains and losses and proceeds from sales or other redemptions were as follows:

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(In thousands)
Net realized investment gains (losses):
Gross gains from sales	$	770		$	4,400		$	1,064		$	5,685
Gross losses from sales		(13	)		(378	)		(28	)		(523	)
OTTI losses		(484	)		(803	)		(695	)		(2,830	)
Gains (losses) from bifurcated options		(169	)		221			(103	)		325
Net realized investment gains (losses)	$	104		$	3,440		$	238		$	2,657

Other-Than-Temporary Impairment. We conduct a review each quarter to identify and evaluate impaired investments that have indications of possible OTTI. An investment in a debt or equity security is impaired if its fair value falls below its cost. Factors considered in determining whether an unrealized loss is temporary include the length of time and extent to which fair value has been below cost, the financial condition and near-term prospects for the issue, and our ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery, which may be maturity for fixed-maturity securities or within a reasonable period of time for equity securities. For additional information, see Note 4 (Investments) to the consolidated financial statements in our 2016 Annual Report.

Available-for-sale fixed-maturity and equity securities with a cost basis in excess of their fair values were approximately $322.3 million and $450.9 million as of June 30, 2017 and December 31, 2016, respectively.

The following tables summarize, for all available-for-sale securities in an unrealized loss position, the aggregate fair value and the gross unrealized loss by length of time such securities have continuously been in an unrealized loss position:

	June 30, 2017
	Less than 12 months							12 months or longer
	Fair value		Unrealized losses			Number of securities		Fair value		Unrealized losses			Number of securities
	(Dollars in thousands)
Fixed-maturity securities:
U.S. government and agencies	$	5,247	$	(16	)		6	$	-	$	-			-
Foreign government		29,301		(314	)		32		1,272		(44	)		2
States and political subdivisions		8,187		(92	)		10		-		-			-
Corporates		145,814		(1,885	)		125		22,838		(1,149	)		29
Residential mortgage-backed securities		15,066		(97	)		8		2,493		(19	)		9
Commercial mortgage-backed securities		36,044		(266	)		32		7,585		(50	)		11
Other asset-backed securities		42,259		(148	)		43		1,196		(7	)		2
Total fixed-maturity securities		281,918		(2,818	)				35,384		(1,269	)
Equity securities		403		(11	)		9		402		(89	)		7
Total fixed-maturity and equity    securities	$	282,321	$	(2,829	)			$	35,786	$	(1,358	)

	December 31, 2016
	Less than 12 months							12 months or longer
	Fair value		Unrealized losses			Number of securities		Fair value		Unrealized losses			Number of securities
	(Dollars in thousands)
Fixed-maturity securities:
U.S. government and agencies	$	3,668	$	(24	)		4	$	-	$	-			-
Foreign government		34,538		(526	)		36		3,048		(161	)		3
States and political subdivisions		8,902		(129	)		12		-		-			-
Corporates		232,070		(3,484	)		225		45,471		(2,045	)		51
Residential mortgage-backed securities		15,232		(92	)		9		3,606		(28	)		9
Commercial mortgage-backed securities		33,335		(423	)		33		7,663		(47	)		11
Other asset-backed securities		48,275		(260	)		45		1,315		(43	)		3
Total fixed-maturity securities		376,020		(4,938	)				61,103		(2,324	)
Equity securities		4,179		(269	)		12		1,852		(244	)		8
Total fixed-maturity and equity    securities	$	380,199	$	(5,207	)			$	62,955	$	(2,568	)

The amortized cost and fair value of available-for-sale fixed-maturity securities in default were as follows:

	June 30, 2017				December 31, 2016
	Amortized cost		Fair value		Amortized cost		Fair value
	(In thousands)
Fixed-maturity securities in default	$	3	$	141	$	5	$	125

Impairment charges recognized in earnings on available-for-sale securities were as follows:

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
	(In thousands)
Impairments on fixed-maturity securities not in default	$	459	$	683	$	535	$	2,679
Impairments on fixed-maturity securities in default		-		115		-		119
Impairments on equity securities		25		5		160		32
Total impairment charges	$	484	$	803	$	695	$	2,830

The securities noted above were considered to be other-than-temporarily impaired due to: our intent to sell them; adverse credit events, such as news of an impending filing for bankruptcy; analyses of the issuer’s most recent financial statements or other information in which liquidity deficiencies, significant losses and large declines in capitalization were evident; or analyses of rating agency information for issuances with severe ratings downgrades that indicated a significant increase in the possibility of default. We also recognized impairment losses related to invested assets held at the Parent company that we intended to sell to fund share repurchases, as well as impairments on equity securities where we do not expect to recover its cost basis.

As of June 30, 2017, the unrealized losses on our available-for-sale invested asset portfolio were largely caused by interest rate sensitivity and changes in credit spreads. We believe that fluctuations caused by movement in interest rates and credit spreads have little bearing on the recoverability of our investments. We do not consider these investments to be other-than-temporarily impaired because we have the ability to hold these investments until maturity or a market price recovery, and we have no present intention to dispose of them.  

Net impairment losses recognized in earnings for available-for-sale securities were as follows:

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
	(In thousands)
Total impairment losses related to securities which the Company    does not intend to sell or more-likely-than-not will not be    required to sell:
Total OTTI losses recognized	$	459	$	488	$	535	$	929
Less portion of OTTI loss recognized in accumulated other    comprehensive income (loss)		-		-		-		-
Net impairment losses recognized in earnings for securities    which the Company does not intend to sell or more-likely-    than-not will not be required to sell before recovery		459		488		535		929
OTTI losses recognized in earnings for securities which the    Company intends to sell or more-likely-than-not will be    required to sell before recovery		25		315		160		1,901
Net impairment losses recognized in earnings	$	484	$	803	$	695	$	2,830

The rollforward of the OTTI recognized in net income for all fixed-maturity securities still held follows:

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(In thousands)
Cumulative OTTI recognized in net income for securities still      held, beginning of period	$	5,759		$	10,880		$	5,774		$	11,856
Additions for OTTI securities where no OTTI were recognized      prior to the beginning of the period		-			798			-			1,231
Additions for OTTI securities where OTTI have been recognized      prior to the beginning of the period		459			-			535			1,567
Reductions due to sales, maturities, calls, amortization or      increases in cash flows expected to be collected over the      remaining life of credit impaired securities		(643	)		(3,574	)		(597	)		(5,494	)
Reductions for exchanges of securities previously impaired		-			(615	)		(137	)		(1,671	)
Cumulative OTTI recognized in net income for securities      still held, end of period	$	5,575		$	7,489		$	5,575		$	7,489

As of June 30, 2017, no impairment losses have been recognized on the LLC Note held-to-maturity security.

Derivatives. Embedded conversion options associated with fixed-maturity securities are bifurcated from the fixed-maturity security host contracts and separately recognized as equity securities. The change in fair value of these bifurcated conversion options is reflected in realized investment gains (losses), including OTTI losses. The fair value of these bifurcated options was approximately $4.5 million as of June 30, 2017 and $4.3million as of December 31, 2016.

We have a deferred loss related to closed forward contracts, which were settled several years ago, that were used to mitigate our exposure to foreign currency exchange rates that resulted from the net investment in our Canadian operations. The amount of deferred loss included in accumulated other comprehensive income was approximately $26.4 millionas of June 30, 2017 and December 31, 2016. These deferred losses will not be recognized until such time as we sell or substantially liquidate our Canadian operations; although we have no such intention.

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Fair Value of Financial Instruments (Notes)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

(4) Fair Value of Financial Instruments

Fair value is the price that would be received upon the sale of an asset in an orderly transaction between market participants at the measurement date. Fair value measurements are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our view of market assumptions in the absence of observable market information. We classify and disclose all invested assets carried at fair value in one of the following three categories:

• Level 1. Quoted prices for identical instruments in active markets. Level 1 primarily consists of financial instruments whose value is based on quoted market prices in active markets, such as exchange-traded common stocks and actively traded mutual fund investments;

• Level 2. Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 includes those financial instruments that are valued using industry-standard pricing methodologies, models or other valuation methodologies. Various inputs are considered in deriving the fair value of the underlying financial instrument, including interest rate, credit spread, and foreign exchange rates. All significant inputs are observable, or derived from observable information in the marketplace or are supported by observable levels at which transactions are executed in the marketplace. Financial instruments in this category primarily include: certain public and private corporate fixed-maturity and equity securities; government or agency securities; certain mortgage- and asset-backed securities and bifurcated conversion options; and

• Level 3. Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Level 3 consists of financial instruments whose fair value is estimated based on industry-standard pricing methodologies and models using significant inputs not based on, nor corroborated by, readily available market information. Valuations for this category primarily consist of non-binding broker quotes. Financial instruments in this category primarily include less liquid fixed-maturity corporate securities, mortgage-and asset-backed securities.

As of each reporting period, all assets and liabilities recorded at fair value are classified in their entirety based on the lowest level of input (Level 3 being the lowest) that is significant to the fair value measurement. Significant levels of estimation and judgment are required to determine the fair value of certain of our investments. The factors influencing these estimations and judgments are subject to change in subsequent reporting periods.

The estimated fair value and hierarchy classifications for assets and liabilities that are measured at fair value on a recurring basis were as follows:

	June 30, 2017
	Level 1		Level 2		Level 3		Total
	(In thousands)
Fair value assets:
Available-for-sale fixed-maturity securities:
U.S. government and agencies	$	-	$	9,382	$	-	$	9,382
Foreign government		-		138,859		-		138,859
States and political subdivisions		-		53,977		-		53,977
Corporates		3,445		1,375,315		3		1,378,763
Residential mortgage-backed securities		-		98,434		502		98,936
Commercial mortgage-backed securities		-		127,660		-		127,660
Other asset-backed securities		-		80,152		1,254		81,406
Total available-for-sale fixed-maturity securities		3,445		1,883,779		1,759		1,888,983
Available-for-sale equity securities		40,304		5,530		102		45,936
Trading securities		1,305		14,236		-		15,541
Separate accounts		-		2,424,937		-		2,424,937
Total fair value assets	$	45,054	$	4,328,482	$	1,861	$	4,375,397
Fair value liabilities:
Separate accounts	$	-	$	2,424,937	$	-	$	2,424,937
Total fair value liabilities	$	-	$	2,424,937	$	-	$	2,424,937

	December 31, 2016
	Level 1		Level 2		Level 3		Total
	(In thousands)
Fair value assets:
Available-for-sale fixed-maturity securities:
U.S. government and agencies	$	-	$	10,474	$	-	$	10,474
Foreign government		-		129,306		-		129,306
States and political subdivisions		-		45,724		-		45,724
Corporates		3,113		1,322,257		3		1,325,373
Residential mortgage-backed securities		-		98,966		585		99,551
Commercial mortgage-backed securities		-		109,443		-		109,443
Other asset-backed securities		-		65,075		7,492		72,567
Total available-for-sale fixed-maturity securities		3,113		1,781,245		8,080		1,792,438
Available-for-sale equity securities		39,556		5,256		82		44,894
Trading securities		-		7,383		-		7,383
Separate accounts		-		2,287,953		-		2,287,953
Total fair value assets	$	42,669	$	4,081,837	$	8,162	$	4,132,668
Fair value liabilities:
Separate accounts	$	-	$	2,287,953	$	-	$	2,287,953
Total fair value liabilities	$	-	$	2,287,953	$	-	$	2,287,953

In assessing fair value of our investments, we use a third-party pricing service for approximately 94% of our securities that are measured at fair value on a recurring basis. The remaining securities are primarily thinly traded securities such as private placements and are valued using models based on observable inputs on public corporate spreads having similar characteristics (e.g., sector, average life and quality rating) and liquidity and yield based on quality rating, average life and treasury yields. All observable data inputs are corroborated by independent third-party data. In the absence of sufficient observable inputs, we utilize non-binding broker quotes, which are reflected in our Level 3 classification as we are unable to evaluate the valuation technique(s) or significant inputs used to develop the quotes. Therefore, we do not internally develop the quantitative unobservable inputs used in measuring the fair value of Level 3 investments. However, we do corroborate pricing information provided by our third-party pricing servicing by performing a review of selected securities. Our review activities include obtaining detailed information about the assumptions, inputs and methodologies used in pricing the security; documenting this information; and corroborating it by comparison to independently obtained prices and or independently developed pricing methodologies.

Furthermore, we perform internal reasonableness assessments on fair value determinations within our portfolio throughout the quarter and at quarter-end, including pricing variance analyses and comparisons to alternative pricing sources and benchmark returns. If a fair value appears unusual relative to these assessments, we will re-examine the inputs and may challenge a fair value assessment made by the pricing service. If there is a known pricing error, we will request a reassessment by the pricing service. If the pricing service is unable to perform the reassessment on a timely basis, we will determine the appropriate price by requesting a reassessment from an alternative pricing service or other qualified source as necessary. We do not adjust quotes or prices except in a rare circumstance to resolve a known error.

Because many fixed-maturity securities do not trade on a daily basis, third party pricing services generally determine fair value using industry-standard methodologies, which vary by asset class. For corporates, governments, and agency securities, these methodologies include developing prices by incorporating available market information such as U.S. Treasury curves, benchmarking of similar securities including new issues, sector groupings, quotes from market participants and matrix pricing. Observable information is compiled and integrates relevant credit information, perceived market movements and sector news. Additionally, security prices are periodically back-tested to validate and/or refine models as conditions warrant. Market indicators and industry and economic events are also monitored as triggers to obtain additional data. For certain structured securities (such as mortgage-and asset-backed securities) with limited trading activity, third-party pricing services generally use industry-standard pricing methodologies that incorporate market information, such as index prices, or discounting expected future cash flows based on underlying collateral, and quotes from market participants, to estimate fair value. If these measures are not deemed observable for a particular security, the security will be classified as Level 3 in the fair value hierarchy.

Where specific market information is unavailable for certain securities, pricing models produce estimates of fair value primarily using Level 2 inputs along with certain Level 3 inputs. These models include matrix pricing. The pricing matrix uses current treasury rates and credit spreads received from third-party sources to estimate fair value. The credit spreads incorporate the issuer’s industry- or issuer-specific credit characteristics and the security’s time to maturity, if warranted. Remaining unpriced securities are valued using an estimate of fair value based on indicative market prices that include significant unobservable inputs not based on, nor corroborated by, market information, including the utilization of non-binding broker quotes.

The roll-forward of the Level 3 assets measured at fair value on a recurring basis was as follows:

	Three months ended June 30,						Six months ended June 30, (1)
	2017			2016			2017			2016
	(In thousands)
Level 3 assets, beginning of period	$	9,788		$	753		$	8,162		$	783
Net unrealized gains (losses) included in other    comprehensive income		236			(1	)		222			5
Realized gains (losses) and accretion (amortization)    recognized in earnings, including OTTI		3			1			10			5
Purchases		1,250			-			1,250			-
Sales		-			-			-			(3	)
Settlements		(213	)		(37	)		(441	)		(73	)
Transfers into Level 3		4			1			2,439			1
Transfers out of Level 3(2)		(9,207	)		-			(9,781	)		(1	)
Level 3 assets, end of period	$	1,861		$	717		$	1,861		$	717

(1) Activity for investments that enter Level 3 in one quarter and exit Level 3 in another quarter within the same fiscal year are not eliminated until year-end when only the full year amounts are presented.

(2) During the three and six months ended June 30, 2017, transfers out of Level 3 assets primarily consisted of recently purchased fixed-maturity securities in a previous quarter for which observable inputs, most notably quoted prices, used to derive valuations became readily available.

We obtain independent pricing quotes based on observable inputs as of the end of the reporting period for all securities in Level 2. Those inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, market bids/offers, quoted prices for similar instruments in markets that are not active, and other relevant data. We monitor these inputs for market indicators, industry and economic events. We recognize transfers into new levels and out of previous levels as of the end of the reporting period, including interim reporting periods, as applicable. There were no material transfers between Level 1 and Level 2 or between Level 1 and Level 3 during the three and six months ended June 30, 2017 and 2016.

The table below is a summary of the estimated fair value for financial instruments.

	June 30, 2017				December 31, 2016
	Carrying value		Estimated fair value		Carrying value		Estimated fair value
	(In thousands)
Assets:
Fixed-maturity securities (available-for-sale)	$	1,888,983	$	1,888,983	$	1,792,438	$	1,792,438
Fixed-maturity securities (held-to-maturity)		635,690		665,801		503,230		513,015
Equity securities (available-for-sale)		45,936		45,936		44,894		44,894
Trading securities		15,541		15,541		7,383		7,383
Policy loans		34,316		34,316		30,916		30,916
Deposit asset underlying 10% coinsurance agreement		211,387		211,387		202,435		202,435
Separate accounts		2,424,937		2,424,937		2,287,953		2,287,953
Liabilities:
Notes payable(1)	$	373,103	$	403,976	$	372,919	$	401,340
Surplus note(1)		634,980		664,759		502,491		512,669
Separate accounts		2,424,937		2,424,937		2,287,953		2,287,953

⁽¹⁾ Carrying value amounts shown are net of issuance costs.

The fair values of financial instruments presented above are estimates of the fair values at a specific point in time using various sources and methods, including market quotations and a complex matrix system that takes into account issuer sector, quality, and spreads in the current marketplace.

Recurring fair value measurements. Estimated fair values of investments in available-for-sale fixed-maturity securities are principally a function of current spreads and interest rates that are corroborated by independent third-party data. Therefore, the fair values presented are indicative of amounts we could realize or settle at the respective balance sheet date. We do not necessarily intend to dispose of or liquidate such instruments prior to maturity. Trading securities, which primarily consist of fixed-maturity securities, are carried at fair value. Equity securities, including common and nonredeemable preferred stocks, are carried at fair value. Segregated funds in separate accounts are carried at the underlying value of the variable insurance contracts, which is fair value.

Nonrecurring fair value measurements. The estimated fair value of the held-to-maturity fixed-maturity security, which is classified as a Level 3 fair value measurement, is derived using the credit spread on similarly-rated debt securities and the hypothetical spread of the security’s credit enhancement feature. Policy loans, which are categorized as Level 3 fair value measurements, are carried at the unpaid principal balances. The fair value of policy loans approximate the unpaid principal balances as the timing of repayment is uncertain and the loans are collateralized by the amount of the policy. The deposit asset underlying a 10% coinsurance agreement represents the value of the assets necessary to back the economic reserves held in support of the reinsurance agreement. The carrying value of this deposit asset approximates fair value, which is categorized as Level 3 in the fair value hierarchy. Notes payable represent our publicly-traded senior notes and are valued as a Level 2 fair value measurement using the quoted market price for our notes. The estimated fair value of the Surplus Note is derived by using an assumed credit spread we would expect if Vidalia Re was a credit-rated entity and the hypothetical spread of the Surplus Note’s subordinated structure. The Surplus Note is classified as a Level 3 fair value measurement.

The carrying amounts for cash and cash equivalents, receivables, accrued investment income, accounts payable, cash collateral and payables for security transactions approximate their fair values due to the short-term nature of these instruments. Consequently, such financial instruments are not included in the above table.

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Reinsurance (Notes)

6 Months Ended

Jun. 30, 2017

Reinsurance Disclosures [Abstract]

Reinsurance

(5) Reinsurance

We use reinsurance extensively, which has a significant effect on our results of operations. Reinsurance arrangements do not relieve us of our primary obligation to the policyholder. We monitor the concentration of credit risk we have with any reinsurer, as well as the financial condition of the reinsurers.

Details on in-force life insurance follow:

	June 30, 2017			December 31, 2016
	(Dollars in thousands)
Direct life insurance in force	$	749,737,546		$	731,822,070
Amounts ceded to other companies		(655,336,759	)		(643,364,460	)
Net life insurance in force	$	94,400,787		$	88,457,610
Percentage of reinsured life insurance in force		87	%		88	%

Due from reinsurers includes ceded reserve balances and ceded claim liabilities. Reinsurance receivable and financial strength ratings by reinsurer were as follows:

	June 30, 2017			December 31, 2016
	Reinsurance receivable		A.M. Best rating	Reinsurance receivable		A.M. Best rating
	(In thousands)
Pecan Re Inc.(1) (2)	$	2,733,159	NR	$	2,754,424	NR
SCOR Global Life Reinsurance Companies(3)		352,076	A		355,759	A
Munich Re of Malta(2)		292,737	NR		282,382	NR
Swiss Re Life & Health America Inc.(4)		254,773	A+		249,299	A+
American Health and Life Insurance Company(2)		175,138	B		176,010	B
Munich American Reassurance Company		107,122	A+		106,471	A+
Korean Reinsurance Company		98,349	A		96,921	A
RGA Reinsurance Company		85,333	A+		84,473	A+
Hannover Life Reassurance Company		29,361	A+		22,929	A+
TOA Reinsurance Company		24,937	A		23,977	A+
All other reinsurers		38,769	-		40,917	-
Due from reinsurers	$	4,191,754		$	4,193,562

NR – not rated

⁽¹⁾ Pecan Re Inc. is a wholly owned subsidiary of Swiss Re Life & Health America Inc.

⁽²⁾ Includes balances ceded under coinsurance transactions of term life insurance policies that were in force as of December 31, 2009. Amounts shown are net of their share of the reinsurance receivable from other reinsurers.

⁽³⁾ Includes amounts ceded to Transamerica Reinsurance Companies and fully retroceded to SCOR Global Life Reinsurance Companies.

⁽⁴⁾ Includes amounts ceded to Lincoln National Life Insurance and fullyretroceded to Swiss Re Life & Health America Inc.

Benefits and claims ceded to reinsurers for the three and six months ended June 30, 2017 were $334.3 million and $677.2 million, respectively, compared to $301.2 million and $605.0 million, respectively, for the three and six months ended June 30, 2016.

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Policy Claims and Other Benefits Payable (Notes)

6 Months Ended

Jun. 30, 2017

Liability For Future Policy Benefits And Unpaid Claims And Claims Adjustment Expense [Abstract]

Policy Claims and Other Benefits Payable

(6) Policy Claims and Other Benefits Payable

Changes in policy claims incurred and other benefits payable were as follows:

	Six months ended June 30,
	2017			2016
	(In thousands)
Policy claims and other benefits payable, beginning of period	$	268,136		$	238,157
Less reinsured policy claims and other benefits payable		323,195			263,003
Net balance, beginning of period		(55,059	)		(24,846	)
Incurred related to current year		82,358			70,719
Incurred related to prior years(1)		2,033			(719	)
Total incurred		84,391			70,000
Claims paid related to current year, net of reinsured policy claims received		(122,097	)		(106,607	)
Reinsured policy claims received related to prior years, net of claims paid		57,146			31,603
Total paid		(64,951	)		(75,004	)
Foreign currency translation		154			429
Net balance, end of period		(35,465	)		(29,421	)
Add reinsured policy claims and other benefits payable		303,095			264,686
Balance, end of period	$	267,630		$	235,265

⁽¹⁾ Includes the difference between our estimate of claims incurred but not yet reported at period end and the actual incurred claims reported after period end.

The liability for policy claims and other benefits payable on traditional life insurance products includes estimated unpaid claims that have been reported to us and claims incurred but not yet reported. We estimate claims incurred but not yet reported based on our historical claims activity and payment lag time experience.

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Stockholders' Equity (Notes)

6 Months Ended

Jun. 30, 2017

Stockholders Equity Note [Abstract]

Stockholders' Equity

(7) Stockholders’ Equity

A reconciliation of the number of shares of our common stock follows.

	Six months ended June 30,
	2017			2016
	(In thousands)
Common stock, beginning of period		45,721			48,297
Shares issued for stock options exercised		38			108
Shares of common stock issued upon lapse of restricted stock units ("RSUs")		341			322
Common stock retired		(1,065	)		(2,125	)
Common stock, end of period		45,035			46,602

The above reconciliation excludes RSUs and performance-based stock units (“PSUs”), which do not have voting rights. As sales restrictions on RSUs lapse and PSUs are earned, we issue common shares with voting rights. As of June 30, 2017, we had a total of approximately 1.0 million RSUs and 54,431 PSUs outstanding.

On November 17, 2016, the Board of Directors authorized a share repurchase program for up to $200.0 million of our outstanding common shares (the “share repurchase program”) for purchases through June 30, 2018. Under the share repurchase program, we repurchased 967,337 shares of our common stock in open market transactions for an aggregate purchase price of approximately $75.0  million through June 30, 2017. Approximately $125.0 million remains for repurchases of our outstanding common stock under the share repurchase program as of June 30, 2017.

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Earnings Per Share (Notes)

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Earnings Per Share

(8) Earnings Per Share

The Company has outstanding common stock and equity awards that consist of RSUs, PSUs and stock options. The RSUs maintain non-forfeitable dividend rights that result in dividend payment obligations on a one-to-one ratio with common shares for any future dividend declarations.

Unvested RSUs are deemed participating securities for purposes of calculating earnings per share ("EPS") as they maintain dividend rights. We calculate EPS using the two-class method. Under the two-class method, we allocate earnings to common shares and vested RSUs outstanding for the period. Earnings attributable to unvested participating securities, along with the corresponding share counts, are excluded from EPS as reflected in our unaudited condensed consolidated statements of income.

In calculating basic EPS, we deduct from net income any dividends and undistributed earnings allocated to unvested RSUs and then divide the result by the weighted-average number of common shares and vested RSUs outstanding for the period.

We determine the potential dilutive effect of PSUs and stock options outstanding (“contingently issuable shares”) on EPS using the treasury-stock method. Under this method, we determine the proceeds that would be received from the issuance of the contingently issuable shares if the end of the reporting period were the end of the contingency period. The proceeds from the contingently issuable shares include the remaining unrecognized compensation expense of the awards and the cash received for the exercise price on stock options. We then use the average market price of our common shares during the period the contingently issuable shares were outstanding to determine how many shares we could repurchase with the proceeds raised from the issuance of the contingently issuable shares. The net incremental share count issued represents the potential dilutive securities. We then reallocate earnings to common shares and vested RSUs by incorporating the increased fully diluted share count to determine diluted EPS.

The calculation of basic and diluted EPS follows.

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(In thousands, except per-share amounts)
Basic EPS:
Numerator:
Net income	$	63,107		$	59,326		$	115,176		$	104,502
Income attributable to unvested participating securities		(430	)		(491	)		(859	)		(861	)
Net income used in calculating basic EPS	$	62,677		$	58,835		$	114,317		$	103,641
Denominator:
Weighted-average vested shares		45,984			47,658			46,142			48,104
Basic EPS	$	1.36		$	1.23		$	2.48		$	2.15
Diluted EPS:
Numerator:
Net income	$	63,107		$	59,326		$	115,176		$	104,502
Income attributable to unvested participating securities		(430	)		(490	)		(857	)		(860	)
Net income used in calculating diluted EPS	$	62,677		$	58,836		$	114,319		$	103,642
Denominator:
Weighted-average vested shares		45,984			47,658			46,142			48,104
Dilutive effect of incremental shares to be issued for    contingently issuable shares		87			50			80			37
Weighted-average shares used in calculating diluted EPS		46,071			47,708			46,222			48,141
Diluted EPS	$	1.36		$	1.23		$	2.47		$	2.15

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Share-Based Transactions (Notes)

6 Months Ended

Jun. 30, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Transactions

(9) Share-Based Transactions

The Company has outstanding equity awards under its Omnibus Incentive Plan ("OIP"). The OIP provides for the issuance of equity awards, including stock options, stock appreciation rights, restricted stock, deferred stock, RSUs, PSUs, unrestricted stock, as well as cash-based awards. In addition to time-based vesting requirements, awards granted under the OIP also may be subject to specified performance criteria. Since 2010, the Company has issued equity awards to our management (officers and other key employees), non-employees who serve on our Board of Directors, and sales force leaders under the OIP. For more information on equity awards granted under the OIP, see Note 14 (Share-Based Transactions) to our consolidated financial statements within our 2016 Annual Report.

In connection with our granting of equity awards to management and members of the Board of Directors, we recognize expense over the requisite service period of the equity award. Additionally, to the extent that equity awards to members of our sales force are an incremental direct cost of successful acquisitions of life insurance policies that result directly from and are essential to the policy acquisition(s) and would not have been incurred had the policy acquisition(s) not occurred, we defer and amortize the fair value of these awards in the same manner as other deferred policy acquisition costs.

The impacts of equity awards granted are as follows:

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
	(In thousands)
Total equity awards expense recognized	$	1,923	$	2,548	$	11,667	$	10,031
Quarterly incentive awards expense deferred		2,668		2,702		5,418		5,394

On February 16, 2017, the Compensation Committee of the Board of Directors granted the following equity awards to employees in connection with management’s annual incentive compensation:

• 116,104 RSUs awarded to management with a measurement-date fair value of $80.45 per unit that have time-based vesting requirements with equal and annual graded vesting over approximately three years subsequent to the grant date.

• 36,046 PSUs awarded to our four top executives with a measurement-date fair value of $80.45 per unit. The PSUs will be earned on March 1, 2020 contingent upon the Company achieving a target annual average three-year return on adjusted equity (“ROAE”) for the period from January 1, 2017 through December 31, 2019. The actual number of PSUs that will vest will vary based on the actual ROAE relative to the target ROAE and can range from zero PSUs to 54,069.  

All awards granted to employees on February 16, 2017 vest upon voluntary termination of employment by any employee who is “retirement eligible” as of his or her termination date. In order to be retirement eligible, an employee must be at least 55 years old and his or her age plus years of service with the Company must equal at least 75. The number of PSUs that will ultimately vest for a retirement-eligible employee is equal to the amount calculated using the Company’s actual cumulative three-year ROAE ending on December 31, 2019, even if that employee retires prior to the completion of the three-year performance period.

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Commitments and Contingent Liabilities (Notes)

6 Months Ended

Jun. 30, 2017

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

(10) Commitments and Contingent Liabilities

Letter of Credit (“LOC”).Peach Re maintains a credit facility agreement with Deutsche Bank (the "Credit Facility Agreement") to support certain obligations for a portion of the Regulation XXX reserves related to the Peach Re Coinsurance Agreement. Under the Credit Facility Agreement, Deutsche Bank issued a letter of credit for the benefit of Primerica Life with a term ending on January 15, 2026. As of June 30, 2017, the Company was in compliance with all financial covenants under the Credit Facility Agreement. At June 30, 2017, the amount of the LOC outstanding was approximately $380.1 million. This amount will decline over the remaining term of the LOC to correspond with declines in the Regulation XXX reserves.

Further discussion on the Company’s letter of credit is included in Note 16 (Commitments and Contingent Liabilities) to our consolidated financial statements within our 2016 Annual Report.

Contingent Liabilities.The Company is involved from time to time in legal disputes, regulatory inquiries and arbitration proceedings in the normal course of business. These disputes are subject to uncertainties, including the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation. As such, the Company is unable to estimate the possible loss or range of loss that may result from these matters unless otherwise indicated.

The Company is currently undergoing multi-state treasurer unclaimed property audits by 30 jurisdictions focusing on the life insurance claims paying practices of its subsidiaries, Primerica Life and NBLIC. Other jurisdictions may pursue similar audits. The potential outcome of such audits is difficult to predict but could subject the Company to adverse consequences, including, but not limited to, settlement payments, additional payments to beneficiaries and additional escheatment of funds deemed abandoned under state laws. At this time, the Company cannot reasonably estimate the likelihood or the impact of additional costs or liabilities that could result from the resolution of these matters.

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Other Comprehensive Income (Notes)

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Other Comprehensive Income

(11) Other Comprehensive Income

The components of other comprehensive income (“OCI”), including the income tax expense or benefit allocated to each component, were as follows:

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(In thousands)
Foreign currency translation adjustments:
Change in unrealized foreign currency translation gains (losses)    before income taxes	$	6,753		$	(1,167	)	$	7,880		$	14,869
Income tax expense (benefit) on unrealized foreign currency   translation gains (losses)		74			(10	)		88			159
Change in unrealized foreign currency translation gains   (losses), net of income taxes	$	6,679		$	(1,157	)	$	7,792		$	14,710
Unrealized gain (losses) on available-for-sale securities:
Change in unrealized holding gains (losses) arising during    period before income taxes	$	3,889		$	33,568		$	11,170		$	58,284
Income tax expense (benefit) on unrealized holding gains   (losses) arising during period		1,361			11,749			3,910			20,398
Change in unrealized holding gains (losses) on available-for-sale   securities arising during period, net of income taxes		2,528			21,819			7,260			37,886
Reclassification from accumulated OCI to net income for (gains)   losses realized on available-for-sale securities		(273	)		(3,219	)		(341	)		(2,332	)
Income tax (expense) benefit on (gains) losses reclassified from   accumulated OCI to net income		(96	)		(1,127	)		(119	)		(816	)
Reclassification from accumulated OCI to net income for (gains)   losses realized on available-for-sale securities, net of income   taxes		(177	)		(2,092	)		(222	)		(1,516	)
Change in unrealized gains (losses) on available-for-sale   securities, net of income taxes and reclassification adjustment	$	2,351		$	19,727		$	7,038		$	36,370

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Debt (Notes)

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Debt

(12) Debt

Notes Payable.At June 30, 2017, the Company had $375.0 million of publicly-traded, senior unsecured notes with an annual interest rate of 4.75% that are scheduled to mature on July 15, 2022 (the "Senior Notes"). As of June 30, 2017, we were in compliance with the covenants of the Senior Notes. No events of default occurred on the Senior Notes during the three or six months ended June 30, 2017.

Further discussion on the Company’s Senior Notes is included in Note 10 (Debt) to our consolidated financial statements within our 2016 Annual Report.

Surplus Note. In May 2017, Primerica Life and Vidalia Re amended the Vidalia Re Coinsurance Agreement (the “Expanded Vidalia Re Coinsurance Agreement”) whereby Primerica Life ceded level-premium term life insurance policies issued in 2015 and 2016 to Vidalia Re effective June 30, 2017. The Expanded Vidalia Re Coinsurance Agreement also provides the option for Primerica Life to cede level-premium term life insurance policies issued in 2017 to Vidalia Re at a future date. Concurrent with the execution of the Expanded Vidalia Re Coinsurance Agreement, Vidalia Re entered into an amendment to the Surplus Note Purchase Agreement (the "Expanded Surplus Note Purchase Agreement") with Hannover Re and the LLC. Under the Expanded Surplus Note Purchase Agreement, the capacity of the principal amount of both the Surplus Note and the credit-enhanced LLC Note will be increased over time in accordance with the expanded amount of policy reserves being contractually supported under the Expanded Vidalia Re Coinsurance Agreement. The maturity date of both notes has been extended from December 31, 2019 to December 31, 2030. Based on the estimated reserves for ceded policies issued in 2011 through 2016, the principal amounts of the Surplus Note and the LLC Note are expected to reach approximately $1.3 billion each. The amended financing arrangement remains non-recourse to the Parent Company and Primerica Life, meaning that neither of these companies has guaranteed the Surplus Note or is otherwise liable for reimbursement for any payments triggered by the credit enhancement feature. The Parent has agreed to support Vidalia Re’s obligation to pay the credit enhancement fee incurred on the LLC Note. No other material terms or conditions of the original Surplus Note Purchase Agreement were modified under the Expanded Surplus Note Purchase Agreement. At June 30, 2017, the principal amount outstanding on the Surplus Note issued by Vidalia Re was $635.7 million, equal to the principal amount of the LLC Note invested asset.

Further discussion on the Company’s Surplus Note and LLC Note are included in Note 10 (Debt) and Note 4 (Investments) to our consolidated financial statements within our 2016 Annual Report.

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Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2017

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation. We prepare our financial statements in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). These principles are established primarily by the Financial Accounting Standards Board ("FASB"). The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect financial statement balances, revenues and expenses and cash flows, as well as the disclosure of contingent assets and liabilities. Management considers available facts and knowledge of existing circumstances when establishing the estimates included in our financial statements.

The accompanying unaudited condensed consolidated financial statements contain all adjustments, generally consisting of normal recurring accruals, which are necessary to fairly present the balance sheets as of June 30, 2017 and December 31, 2016, the statements of income and comprehensive income (loss) for the three and six months ended June 30, 2017 and 2016, and the statements of stockholders' equity and cash flows for the six months ended June 30, 2017 and 2016. Results of operations for interim periods are not necessarily indicative of results for the entire year or of the results to be expected in future periods.

These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are sufficient to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2016 ("2016 Annual Report").

Use of Estimates

Use of Estimates. The most significant items that involve a greater degree of accounting estimates and actuarial determinations subject to change in the future are the valuation of investments, deferred policy acquisition costs ("DAC"), liabilities for future policy benefits and unpaid policy claims, and income taxes. Estimates for these and other items are subject to change and are reassessed by management in accordance with U.S. GAAP. Actual results could differ from those estimates.

Consolidation

Consolidation. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and those entities required to be consolidated under applicable accounting standards. All material intercompany profits, transactions, and balances among the consolidated entities have been eliminated.

Reclassifications

Reclassifications. Certain reclassifications have been made to prior-period amounts to conform to current-period reporting classifications. These reclassifications had no impact on net income or total stockholders' equity.

Significant Accounting Policies

Significant Accounting Policies. All significant accounting policies remain unchanged from the 2016 Annual Report.

New Accounting Principles

New Accounting Principles. In March 2016, the FASB issued Accounting Standards Update No 2016-09 (“ASU 2016-09”) Compensation—Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 intends to simplify several aspects of the accounting for share-based payment transactions, including the recognition of income tax consequences of awards, the classification of awards as either equity or liabilities, the method of recognizing award forfeitures, and the presentation of items within the statement of cash flows. The most notable impact on the Company’s financial statements involved the change in accounting for the income tax consequences associated with share-based payment transactions in the income statement. Prior to the adoption of ASU 2016-09, the tax effect of the difference between the cumulative compensation cost of a share-based award recognized for financial reporting purposes and the deduction of the award for tax purposes (“excess tax benefits or deficiencies”) was recognized as an adjustment to additional paid-in capital in the statement of stockholders’ equity. The amendments in ASU 2016-09 require that the excess tax benefits or deficiencies be recognized as a reduction to or an increase of income tax expense in the income statement. We adopted the amendments in ASU 2016-09 pertaining to excess tax benefits or deficiencies during the first quarter of 2017 on a prospective basis, which resulted in a reduction of income tax expense of approximately $0.9 million and $4.2 million for the excess tax benefit of share-based transactions for the three and six months ended June 30, 2017, respectively. ASU 2016-09 also changes the presentation of excess tax benefits or deficiencies in the cash flow statement from a financing activity to an operating activity. Therefore, we have presented the excess tax benefits or deficiencies as cash flows from operating activities within the accompanying consolidated statements of cash flows for all periods presented. The adoption of all other amendments outlined in ASU 2016-09 had either no impact to our financial statements or an immaterial impact to our financial statements.

Future Application of Accounting Standards. Recent accounting guidance not discussed above is not applicable, is immaterial to our financial statements, or did not or is not expected to have a material impact on our business. For additional information on new accounting pronouncements and recent accounting principles and their impact, if any, on our financial position or results of operations, see Note 1 (Description of Business, Basis of Presentation, and Summary of Accounting Policies) to our consolidated financial statements within our 2016 Annual Report and in the unaudited condensed consolidated financial statements included in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017.

Subsequent Events

Subsequent Events. The Company has evaluated subsequent events for recognition and disclosure for occurrences and transactions after the date of the unaudited condensed consolidated financial statements dated as of June 30, 2017.

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Segment and Geographical Information (Tables)

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Summary of Assets and Profit or Loss by Segment

Notable information included in profit or loss by segment was as follows:

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(In thousands)
Revenues:
Term life insurance segment	$	238,901		$	210,559		$	472,953		$	416,655
Investment and savings products segment		143,774			132,608			284,180			257,525
Corporate and other distributed products segment		31,021			35,827			61,727			67,413
Total revenues	$	413,696		$	378,994		$	818,860		$	741,593
Net investment income:
Term life insurance segment	$	2,347		$	1,871		$	4,650		$	3,721
Investment and savings products segment		-			-			-			-
Corporate and other distributed products segment		17,395			18,518			34,986			37,906
Total net investment income	$	19,742		$	20,389		$	39,636		$	41,627
Amortization of DAC:
Term life insurance segment	$	44,937		$	36,477		$	95,070		$	77,702
Investment and savings products segment		2,310			1,704			4,044			3,623
Corporate and other distributed products segment		614			539			596			524
Total amortization of DAC	$	47,861		$	38,720		$	99,710		$	81,849
Non-cash share-based compensation expense:
Term life insurance segment	$	301		$	349		$	2,077		$	1,982
Investment and savings products segment		361			347			1,541			1,503
Corporate and other distributed products segment		1,261			1,853			8,049			6,546
Total non-cash share-based compensation expense	$	1,923		$	2,549		$	11,667		$	10,031
Income (loss) before income taxes:
Term life insurance segment	$	61,854		$	58,018		$	110,877		$	104,098
Investment and savings products segment		39,684			36,064			76,803			67,755
Corporate and other distributed products segment		(5,149	)		(2,202	)		(16,450	)		(9,761	)
Total income before income taxes	$	96,389		$	91,880		$	171,230		$	162,092

Total Assets by Segment

Total assets by segment were as follows:

	June 30, 2017		December 31, 2016
	(In thousands)
Assets:
Term life insurance segment	$	6,066,410	$	5,945,502
Investment and savings products segment (1)		2,537,909		2,391,512
Corporate and other distributed products segment		3,340,979		3,101,929
Total assets	$	11,945,298	$	11,438,943

⁽¹⁾ The Investment and Savings Products segment includes assets held in separate accounts. Excluding separate accounts, the Investment and Savings Products segment assets were approximately $113.1 million and $103.7 million as of June 30, 2017 and December 31, 2016, respectively.

Long Lived Assets and Operations by Country

Geographical Information. Results of operations by country and long-lived assets, primarily tangible assets reported in other assets in our unaudited condensed consolidated balance sheets, were as follows:

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
	(In thousands)
Revenues by country:
United States	$	349,388	$	319,154	$	689,182	$	624,056
Canada		64,308		59,840		129,678		117,537
Total revenues	$	413,696	$	378,994	$	818,860	$	741,593
Income before income taxes by country:
United States	$	77,511	$	73,653	$	135,543	$	128,610
Canada		18,878		18,227		35,687		33,482
Total income before income taxes	$	96,389	$	91,880	$	171,230	$	162,092

	June 30, 2017		December 31, 2016
	(In thousands)
Long-lived assets by country:
United States	$	30,402	$	26,685
Canada		772		780
Total long-lived assets	$	31,174	$	27,465

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Investments (Tables)

6 Months Ended

Jun. 30, 2017

Schedule of Investments Debt and Equity Securities [Line Items]

Schedule of Available-for-sale Securities Reconciliation

The period-end cost or amortized cost, gross unrealized gains and losses, and fair value of available-for-sale fixed-maturity and equity securities follow:

	June 30, 2017
	Cost or amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
	(In thousands)
Securities available-for-sale, carried at fair value:
Fixed-maturity securities:
U.S. government and agencies	$	9,087	$	311	$	(16	)	$	9,382
Foreign government		132,465		6,752		(358	)		138,859
States and political subdivisions		52,101		1,968		(92	)		53,977
Corporates		1,328,419		53,378		(3,034	)		1,378,763
Residential mortgage-backed securities		94,643		4,409		(116	)		98,936
Commercial mortgage-backed securities		125,096		2,880		(316	)		127,660
Other asset-backed securities		81,079		482		(155	)		81,406
Total fixed-maturity securities(1)		1,822,890		70,180		(4,087	)		1,888,983
Equity securities		35,369		10,667		(100	)		45,936
Total fixed-maturity and equity securities	$	1,858,259	$	80,847	$	(4,187	)	$	1,934,919

⁽¹⁾ Includes approximately $0.1 million of other-than-temporary impairment (“OTTI”) losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income.

	December 31, 2016
	Cost or amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
	(In thousands)
Securities available-for-sale, carried at fair value:
Fixed-maturity securities:
U.S. government and agencies	$	10,148	$	350	$	(24	)	$	10,474
Foreign government		124,274		5,719		(687	)		129,306
States and political subdivisions		43,950		1,903		(129	)		45,724
Corporates		1,281,630		49,272		(5,529	)		1,325,373
Residential mortgage-backed securities		94,708		4,963		(120	)		99,551
Commercial mortgage-backed securities		107,201		2,712		(470	)		109,443
Other asset-backed securities		72,772		98		(303	)		72,567
Total fixed-maturity securities(1)		1,734,683		65,017		(7,262	)		1,792,438
Equity securities		36,818		8,589		(513	)		44,894
Total fixed-maturity and equity securities	$	1,771,501	$	73,606	$	(7,775	)	$	1,837,332

⁽¹⁾ Includes approximately $0.1 million of OTTI related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income.

Fixed-maturity Securities Classified by Contractual Maturity Date

The scheduled maturity distribution of the available-for-sale fixed-maturity portfolio at June 30, 2017 follows:

	Amortized cost		Fair value
	(In thousands)
Due in one year or less	$	140,732	$	142,901
Due after one year through five years		752,673		785,331
Due after five years through 10 years		580,961		599,415
Due after 10 years		47,706		53,334
		1,522,072		1,580,981
Mortgage- and asset-backed securities		300,818		308,002
Total fixed-maturity securities	$	1,822,890	$	1,888,983

Net Effect on Stockholders' Equity of Unrealized Gains and Losses on Available-for-sale Securities

The net effect on stockholders’ equity of unrealized gains and losses on available-for-sale investments was as follows:

	June 30, 2017			December 31, 2016
	(In thousands)
Net unrealized investment gains including OTTI:
Fixed-maturity and equity securities	$	76,660		$	65,831
OTTI		83			95
Net unrealized investment gains excluding OTTI		76,743			65,926
Deferred income taxes		(26,860	)		(23,074	)
Net unrealized investment gains excluding OTTI, net of tax	$	49,883		$	42,852

Costs and Fair Values of Fixed-Maturity and Equity Securities Classified as Trading Securities

We maintain a portfolio mostly of fixed-maturity securities that are classified as trading securities. The costs and fair values of the fixed-maturity and equity securities classified as trading securities were as follows:

	June 30, 2017				December 31, 2016
	Cost		Fair value		Cost		Fair value
	(In thousands)
Fixed-maturity securities	$	14,238	$	14,236	$	7,332	$	7,332
Equity securities		1,300		1,305		50		51
Total fixed-maturity and equity securities	$	15,538	$	15,541	$	7,382	$	7,383

Net Investment Income

Investment Income. The components of net investment income were as follows:

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(In thousands)
Fixed-maturity securities (available-for-sale)	$	19,200		$	18,377		$	38,269		$	37,626
Fixed-maturity security (held-to-maturity)		6,087			4,605			11,806			8,760
Equity securities		515			502			1,051			1,021
Policy loans and other invested assets		316			351			622			681
Cash and cash equivalents		246			200			439			349
Total return on deposit asset underlying    10% coinsurance agreement		770			2,185			1,801			4,385
Gross investment income		27,134			26,220			53,988			52,822
Investment expenses		(1,305	)		(1,226	)		(2,546	)		(2,435	)
Investment income net of investment expenses		25,829			24,994			51,442			50,387
Interest expense on surplus note		(6,087	)		(4,605	)		(11,806	)		(8,760	)
Net investment income	$	19,742		$	20,389		$	39,636		$	41,627

Schedule of Net Realized Investment Gains and Losses

The components of net realized investment gains (losses) as well as details on gross realized investment gains and losses and proceeds from sales or other redemptions were as follows:

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(In thousands)
Net realized investment gains (losses):
Gross gains from sales	$	770		$	4,400		$	1,064		$	5,685
Gross losses from sales		(13	)		(378	)		(28	)		(523	)
OTTI losses		(484	)		(803	)		(695	)		(2,830	)
Gains (losses) from bifurcated options		(169	)		221			(103	)		325
Net realized investment gains (losses)	$	104		$	3,440		$	238		$	2,657

Schedule of Securities in Unrealized Loss Position

The following tables summarize, for all available-for-sale securities in an unrealized loss position, the aggregate fair value and the gross unrealized loss by length of time such securities have continuously been in an unrealized loss position:

	June 30, 2017
	Less than 12 months							12 months or longer
	Fair value		Unrealized losses			Number of securities		Fair value		Unrealized losses			Number of securities
	(Dollars in thousands)
Fixed-maturity securities:
U.S. government and agencies	$	5,247	$	(16	)		6	$	-	$	-			-
Foreign government		29,301		(314	)		32		1,272		(44	)		2
States and political subdivisions		8,187		(92	)		10		-		-			-
Corporates		145,814		(1,885	)		125		22,838		(1,149	)		29
Residential mortgage-backed securities		15,066		(97	)		8		2,493		(19	)		9
Commercial mortgage-backed securities		36,044		(266	)		32		7,585		(50	)		11
Other asset-backed securities		42,259		(148	)		43		1,196		(7	)		2
Total fixed-maturity securities		281,918		(2,818	)				35,384		(1,269	)
Equity securities		403		(11	)		9		402		(89	)		7
Total fixed-maturity and equity    securities	$	282,321	$	(2,829	)			$	35,786	$	(1,358	)

	December 31, 2016
	Less than 12 months							12 months or longer
	Fair value		Unrealized losses			Number of securities		Fair value		Unrealized losses			Number of securities
	(Dollars in thousands)
Fixed-maturity securities:
U.S. government and agencies	$	3,668	$	(24	)		4	$	-	$	-			-
Foreign government		34,538		(526	)		36		3,048		(161	)		3
States and political subdivisions		8,902		(129	)		12		-		-			-
Corporates		232,070		(3,484	)		225		45,471		(2,045	)		51
Residential mortgage-backed securities		15,232		(92	)		9		3,606		(28	)		9
Commercial mortgage-backed securities		33,335		(423	)		33		7,663		(47	)		11
Other asset-backed securities		48,275		(260	)		45		1,315		(43	)		3
Total fixed-maturity securities		376,020		(4,938	)				61,103		(2,324	)
Equity securities		4,179		(269	)		12		1,852		(244	)		8
Total fixed-maturity and equity    securities	$	380,199	$	(5,207	)			$	62,955	$	(2,568	)

Amortized Cost and Fair Value of Available-for-sale Fixed-maturity Securities in Default

The amortized cost and fair value of available-for-sale fixed-maturity securities in default were as follows:

	June 30, 2017				December 31, 2016
	Amortized cost		Fair value		Amortized cost		Fair value
	(In thousands)
Fixed-maturity securities in default	$	3	$	141	$	5	$	125

Impairment Charges in Earnings on Available-for-sale Securities

Impairment charges recognized in earnings on available-for-sale securities were as follows:

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
	(In thousands)
Impairments on fixed-maturity securities not in default	$	459	$	683	$	535	$	2,679
Impairments on fixed-maturity securities in default		-		115		-		119
Impairments on equity securities		25		5		160		32
Total impairment charges	$	484	$	803	$	695	$	2,830

Schedule of Net Impairment Losses Recognized in Earnings for AFS Securities

The rollforward of the OTTI recognized in net income for all fixed-maturity securities still held follows:

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(In thousands)
Cumulative OTTI recognized in net income for securities still      held, beginning of period	$	5,759		$	10,880		$	5,774		$	11,856
Additions for OTTI securities where no OTTI were recognized      prior to the beginning of the period		-			798			-			1,231
Additions for OTTI securities where OTTI have been recognized      prior to the beginning of the period		459			-			535			1,567
Reductions due to sales, maturities, calls, amortization or      increases in cash flows expected to be collected over the      remaining life of credit impaired securities		(643	)		(3,574	)		(597	)		(5,494	)
Reductions for exchanges of securities previously impaired		-			(615	)		(137	)		(1,671	)
Cumulative OTTI recognized in net income for securities      still held, end of period	$	5,575		$	7,489		$	5,575		$	7,489

Available-for-Sale [Member]

Schedule of Investments Debt and Equity Securities [Line Items]

Schedule of Net Impairment Losses Recognized in Earnings for AFS Securities

Net impairment losses recognized in earnings for available-for-sale securities were as follows:

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
	(In thousands)
Total impairment losses related to securities which the Company    does not intend to sell or more-likely-than-not will not be    required to sell:
Total OTTI losses recognized	$	459	$	488	$	535	$	929
Less portion of OTTI loss recognized in accumulated other    comprehensive income (loss)		-		-		-		-
Net impairment losses recognized in earnings for securities    which the Company does not intend to sell or more-likely-    than-not will not be required to sell before recovery		459		488		535		929
OTTI losses recognized in earnings for securities which the    Company intends to sell or more-likely-than-not will be    required to sell before recovery		25		315		160		1,901
Net impairment losses recognized in earnings	$	484	$	803	$	695	$	2,830

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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis

The estimated fair value and hierarchy classifications for assets and liabilities that are measured at fair value on a recurring basis were as follows:

	June 30, 2017
	Level 1		Level 2		Level 3		Total
	(In thousands)
Fair value assets:
Available-for-sale fixed-maturity securities:
U.S. government and agencies	$	-	$	9,382	$	-	$	9,382
Foreign government		-		138,859		-		138,859
States and political subdivisions		-		53,977		-		53,977
Corporates		3,445		1,375,315		3		1,378,763
Residential mortgage-backed securities		-		98,434		502		98,936
Commercial mortgage-backed securities		-		127,660		-		127,660
Other asset-backed securities		-		80,152		1,254		81,406
Total available-for-sale fixed-maturity securities		3,445		1,883,779		1,759		1,888,983
Available-for-sale equity securities		40,304		5,530		102		45,936
Trading securities		1,305		14,236		-		15,541
Separate accounts		-		2,424,937		-		2,424,937
Total fair value assets	$	45,054	$	4,328,482	$	1,861	$	4,375,397
Fair value liabilities:
Separate accounts	$	-	$	2,424,937	$	-	$	2,424,937
Total fair value liabilities	$	-	$	2,424,937	$	-	$	2,424,937

	December 31, 2016
	Level 1		Level 2		Level 3		Total
	(In thousands)
Fair value assets:
Available-for-sale fixed-maturity securities:
U.S. government and agencies	$	-	$	10,474	$	-	$	10,474
Foreign government		-		129,306		-		129,306
States and political subdivisions		-		45,724		-		45,724
Corporates		3,113		1,322,257		3		1,325,373
Residential mortgage-backed securities		-		98,966		585		99,551
Commercial mortgage-backed securities		-		109,443		-		109,443
Other asset-backed securities		-		65,075		7,492		72,567
Total available-for-sale fixed-maturity securities		3,113		1,781,245		8,080		1,792,438
Available-for-sale equity securities		39,556		5,256		82		44,894
Trading securities		-		7,383		-		7,383
Separate accounts		-		2,287,953		-		2,287,953
Total fair value assets	$	42,669	$	4,081,837	$	8,162	$	4,132,668
Fair value liabilities:
Separate accounts	$	-	$	2,287,953	$	-	$	2,287,953
Total fair value liabilities	$	-	$	2,287,953	$	-	$	2,287,953

Roll forward of Level 3 Assets Measured on Recurring Basis

The roll-forward of the Level 3 assets measured at fair value on a recurring basis was as follows:

	Three months ended June 30,						Six months ended June 30, (1)
	2017			2016			2017			2016
	(In thousands)
Level 3 assets, beginning of period	$	9,788		$	753		$	8,162		$	783
Net unrealized gains (losses) included in other    comprehensive income		236			(1	)		222			5
Realized gains (losses) and accretion (amortization)    recognized in earnings, including OTTI		3			1			10			5
Purchases		1,250			-			1,250			-
Sales		-			-			-			(3	)
Settlements		(213	)		(37	)		(441	)		(73	)
Transfers into Level 3		4			1			2,439			1
Transfers out of Level 3(2)		(9,207	)		-			(9,781	)		(1	)
Level 3 assets, end of period	$	1,861		$	717		$	1,861		$	717

(1) Activity for investments that enter Level 3 in one quarter and exit Level 3 in another quarter within the same fiscal year are not eliminated until year-end when only the full year amounts are presented.

(2) During the three and six months ended June 30, 2017, transfers out of Level 3 assets primarily consisted of recently purchased fixed-maturity securities in a previous quarter for which observable inputs, most notably quoted prices, used to derive valuations became readily available.

Carrying Value and Estimated Fair Value for Financial Instruments

The table below is a summary of the estimated fair value for financial instruments.

	June 30, 2017				December 31, 2016
	Carrying value		Estimated fair value		Carrying value		Estimated fair value
	(In thousands)
Assets:
Fixed-maturity securities (available-for-sale)	$	1,888,983	$	1,888,983	$	1,792,438	$	1,792,438
Fixed-maturity securities (held-to-maturity)		635,690		665,801		503,230		513,015
Equity securities (available-for-sale)		45,936		45,936		44,894		44,894
Trading securities		15,541		15,541		7,383		7,383
Policy loans		34,316		34,316		30,916		30,916
Deposit asset underlying 10% coinsurance agreement		211,387		211,387		202,435		202,435
Separate accounts		2,424,937		2,424,937		2,287,953		2,287,953
Liabilities:
Notes payable(1)	$	373,103	$	403,976	$	372,919	$	401,340
Surplus note(1)		634,980		664,759		502,491		512,669
Separate accounts		2,424,937		2,424,937		2,287,953		2,287,953

⁽¹⁾ Carrying value amounts shown are net of issuance costs.

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Reinsurance (Tables)

6 Months Ended

Jun. 30, 2017

Reinsurance Disclosures [Abstract]

In-force Life Insurance

Details on in-force life insurance follow:

	June 30, 2017			December 31, 2016
	(Dollars in thousands)
Direct life insurance in force	$	749,737,546		$	731,822,070
Amounts ceded to other companies		(655,336,759	)		(643,364,460	)
Net life insurance in force	$	94,400,787		$	88,457,610
Percentage of reinsured life insurance in force		87	%		88	%

Reinsurance Receivable and Financial Strength Ratings by Reinsurer

Due from reinsurers includes ceded reserve balances and ceded claim liabilities. Reinsurance receivable and financial strength ratings by reinsurer were as follows:

	June 30, 2017			December 31, 2016
	Reinsurance receivable		A.M. Best rating	Reinsurance receivable		A.M. Best rating
	(In thousands)
Pecan Re Inc.(1) (2)	$	2,733,159	NR	$	2,754,424	NR
SCOR Global Life Reinsurance Companies(3)		352,076	A		355,759	A
Munich Re of Malta(2)		292,737	NR		282,382	NR
Swiss Re Life & Health America Inc.(4)		254,773	A+		249,299	A+
American Health and Life Insurance Company(2)		175,138	B		176,010	B
Munich American Reassurance Company		107,122	A+		106,471	A+
Korean Reinsurance Company		98,349	A		96,921	A
RGA Reinsurance Company		85,333	A+		84,473	A+
Hannover Life Reassurance Company		29,361	A+		22,929	A+
TOA Reinsurance Company		24,937	A		23,977	A+
All other reinsurers		38,769	-		40,917	-
Due from reinsurers	$	4,191,754		$	4,193,562

NR – not rated

⁽¹⁾ Pecan Re Inc. is a wholly owned subsidiary of Swiss Re Life & Health America Inc.

⁽²⁾ Includes balances ceded under coinsurance transactions of term life insurance policies that were in force as of December 31, 2009. Amounts shown are net of their share of the reinsurance receivable from other reinsurers.

⁽³⁾ Includes amounts ceded to Transamerica Reinsurance Companies and fully retroceded to SCOR Global Life Reinsurance Companies.

⁽⁴⁾ Includes amounts ceded to Lincoln National Life Insurance and fullyretroceded to Swiss Re Life & Health America Inc.

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Policy Claims and Other Benefits Payable (Tables)

6 Months Ended

Jun. 30, 2017

Liability For Future Policy Benefits And Unpaid Claims And Claims Adjustment Expense [Abstract]

Schedule of Liability For Future Policy Benefits and Unpaid Claims

Changes in policy claims incurred and other benefits payable were as follows:

	Six months ended June 30,
	2017			2016
	(In thousands)
Policy claims and other benefits payable, beginning of period	$	268,136		$	238,157
Less reinsured policy claims and other benefits payable		323,195			263,003
Net balance, beginning of period		(55,059	)		(24,846	)
Incurred related to current year		82,358			70,719
Incurred related to prior years(1)		2,033			(719	)
Total incurred		84,391			70,000
Claims paid related to current year, net of reinsured policy claims received		(122,097	)		(106,607	)
Reinsured policy claims received related to prior years, net of claims paid		57,146			31,603
Total paid		(64,951	)		(75,004	)
Foreign currency translation		154			429
Net balance, end of period		(35,465	)		(29,421	)
Add reinsured policy claims and other benefits payable		303,095			264,686
Balance, end of period	$	267,630		$	235,265

⁽¹⁾ Includes the difference between our estimate of claims incurred but not yet reported at period end and the actual incurred claims reported after period end.

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Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2017

Stockholders Equity Note [Abstract]

Reconciliation of Number of Shares of Common Stock

A reconciliation of the number of shares of our common stock follows.

	Six months ended June 30,
	2017			2016
	(In thousands)
Common stock, beginning of period		45,721			48,297
Shares issued for stock options exercised		38			108
Shares of common stock issued upon lapse of restricted stock units ("RSUs")		341			322
Common stock retired		(1,065	)		(2,125	)
Common stock, end of period		45,035			46,602

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Calculation of Basic and Diluted Earnings Per Share

The calculation of basic and diluted EPS follows.

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(In thousands, except per-share amounts)
Basic EPS:
Numerator:
Net income	$	63,107		$	59,326		$	115,176		$	104,502
Income attributable to unvested participating securities		(430	)		(491	)		(859	)		(861	)
Net income used in calculating basic EPS	$	62,677		$	58,835		$	114,317		$	103,641
Denominator:
Weighted-average vested shares		45,984			47,658			46,142			48,104
Basic EPS	$	1.36		$	1.23		$	2.48		$	2.15
Diluted EPS:
Numerator:
Net income	$	63,107		$	59,326		$	115,176		$	104,502
Income attributable to unvested participating securities		(430	)		(490	)		(857	)		(860	)
Net income used in calculating diluted EPS	$	62,677		$	58,836		$	114,319		$	103,642
Denominator:
Weighted-average vested shares		45,984			47,658			46,142			48,104
Dilutive effect of incremental shares to be issued for    contingently issuable shares		87			50			80			37
Weighted-average shares used in calculating diluted EPS		46,071			47,708			46,222			48,141
Diluted EPS	$	1.36		$	1.23		$	2.47		$	2.15

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Share-Based Transactions (Tables)

6 Months Ended

Jun. 30, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Impacts of Equity Awards Granted

The impacts of equity awards granted are as follows:

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
	(In thousands)
Total equity awards expense recognized	$	1,923	$	2,548	$	11,667	$	10,031
Quarterly incentive awards expense deferred		2,668		2,702		5,418		5,394

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Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The components of other comprehensive income (“OCI”), including the income tax expense or benefit allocated to each component, were as follows:

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
	(In thousands)
Foreign currency translation adjustments:
Change in unrealized foreign currency translation gains (losses)    before income taxes	$	6,753		$	(1,167	)	$	7,880		$	14,869
Income tax expense (benefit) on unrealized foreign currency   translation gains (losses)		74			(10	)		88			159
Change in unrealized foreign currency translation gains   (losses), net of income taxes	$	6,679		$	(1,157	)	$	7,792		$	14,710
Unrealized gain (losses) on available-for-sale securities:
Change in unrealized holding gains (losses) arising during    period before income taxes	$	3,889		$	33,568		$	11,170		$	58,284
Income tax expense (benefit) on unrealized holding gains   (losses) arising during period		1,361			11,749			3,910			20,398
Change in unrealized holding gains (losses) on available-for-sale   securities arising during period, net of income taxes		2,528			21,819			7,260			37,886
Reclassification from accumulated OCI to net income for (gains)   losses realized on available-for-sale securities		(273	)		(3,219	)		(341	)		(2,332	)
Income tax (expense) benefit on (gains) losses reclassified from   accumulated OCI to net income		(96	)		(1,127	)		(119	)		(816	)
Reclassification from accumulated OCI to net income for (gains)   losses realized on available-for-sale securities, net of income   taxes		(177	)		(2,092	)		(222	)		(1,516	)
Change in unrealized gains (losses) on available-for-sale   securities, net of income taxes and reclassification adjustment	$	2,351		$	19,727		$	7,038		$	36,370

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Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Accounting Standards Update 2016-09 [Member]
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies [Line Items]
Reduction of income tax expense for excess tax benefit of share-based transactions	$ 0.9	$ 4.2

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Segment and Geographical Information - Narrative (Details)	6 Months Ended
	Jun. 30, 2017 Segment
Segment Reporting [Abstract]
Number of operating segments	2

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Segment and Geographical Information - Summary of Assets and Profit or Loss by Segment (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Segment Reporting Information [Line Items]
Revenues		$ 413,696	$ 378,994	$ 818,860	$ 741,593
Net investment income		19,742	20,389	39,636	41,627
Amortization of DAC		47,861	38,720	99,710	81,849
Non-cash share-based compensation expense		1,923	2,549	11,667	10,031
Income (loss) before income taxes		96,389	91,880	171,230	162,092
Assets		11,945,298		11,945,298		$ 11,438,943
Term Life Insurance Segment [Member]
Segment Reporting Information [Line Items]
Revenues		238,901	210,559	472,953	416,655
Net investment income		2,347	1,871	4,650	3,721
Amortization of DAC		44,937	36,477	95,070	77,702
Non-cash share-based compensation expense		301	349	2,077	1,982
Income (loss) before income taxes		61,854	58,018	110,877	104,098
Assets		6,066,410		6,066,410		5,945,502
Investment and Savings Products Segment [Member]
Segment Reporting Information [Line Items]
Revenues		143,774	132,608	284,180	257,525
Amortization of DAC		2,310	1,704	4,044	3,623
Non-cash share-based compensation expense		361	347	1,541	1,503
Income (loss) before income taxes		39,684	36,064	76,803	67,755
Assets	[1]	2,537,909		2,537,909		2,391,512
Corporate and Other Distributed Products Segment [Member]
Segment Reporting Information [Line Items]
Revenues		31,021	35,827	61,727	67,413
Net investment income		17,395	18,518	34,986	37,906
Amortization of DAC		614	539	596	524
Non-cash share-based compensation expense		1,261	1,853	8,049	6,546
Income (loss) before income taxes		(5,149)	$ (2,202)	(16,450)	$ (9,761)
Assets		$ 3,340,979		$ 3,340,979		$ 3,101,929

[1] The Investment and Savings Products segment includes assets held in separate accounts. Excluding separate accounts, the Investment and Savings Products segment assets were approximately $113.1 million and $103.7 million as of June 30, 2017 and December 31, 2016, respectively.

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Segment and Geographical Information - Summary of Assets and Profit or Loss by Segment (Parenthetical) (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Investment and Savings Products Segment [Member]
Segment Reporting Information [Line Items]
Assets, excluding separate account assets	$ 113.1	$ 103.7

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Segment and Geographical Information - Long Lived Assets and Operations by Country (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues	$ 413,696	$ 378,994	$ 818,860	$ 741,593
Income (loss) before income taxes	96,389	91,880	171,230	162,092
Long-lived assets	31,174		31,174		$ 27,465
United States [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues	349,388	319,154	689,182	624,056
Income (loss) before income taxes	77,511	73,653	135,543	128,610
Long-lived assets	30,402		30,402		26,685
Canada [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues	64,308	59,840	129,678	117,537
Income (loss) before income taxes	18,878	$ 18,227	35,687	$ 33,482
Long-lived assets	$ 772		$ 772		$ 780

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Investments - Schedule of Available-for-sale Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2017		Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale debt securities, amortized cost basis	$ 1,822,890	[1]	$ 1,734,683	[2]
Available-for-sale debt securities gross unrealized gain	70,180	[1]	65,017	[2]
Available-for-sale debt securities, gross unrealized loss	(4,087)	[1]	(7,262)	[2]
Available-for-sale debt securities, at fair value	1,888,983	[1]	1,792,438	[2]
Available-for-sale equity securities, cost	35,369		36,818
Available-for-sale equity securities, gross unrealized gain	10,667		8,589
Available-for-sale equity securities, gross unrealized loss	(100)		(513)
Available-for-sale equity securities, at fair value	45,936		44,894
Available-for-sale securities, amortized cost basis	1,858,259		1,771,501
Available-for-sale securities, gross unrealized gain	80,847		73,606
Available-for-sale securities, gross unrealized loss	(4,187)		(7,775)
Available-for-sale securities, fair value	1,934,919		1,837,332
U.S. Government and Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale debt securities, amortized cost basis	9,087		10,148
Available-for-sale debt securities gross unrealized gain	311		350
Available-for-sale debt securities, gross unrealized loss	(16)		(24)
Available-for-sale debt securities, at fair value	9,382		10,474
Foreign Government [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale debt securities, amortized cost basis	132,465		124,274
Available-for-sale debt securities gross unrealized gain	6,752		5,719
Available-for-sale debt securities, gross unrealized loss	(358)		(687)
Available-for-sale debt securities, at fair value	138,859		129,306
States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale debt securities, amortized cost basis	52,101		43,950
Available-for-sale debt securities gross unrealized gain	1,968		1,903
Available-for-sale debt securities, gross unrealized loss	(92)		(129)
Available-for-sale debt securities, at fair value	53,977		45,724
Corporates [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale debt securities, amortized cost basis	1,328,419		1,281,630
Available-for-sale debt securities gross unrealized gain	53,378		49,272
Available-for-sale debt securities, gross unrealized loss	(3,034)		(5,529)
Available-for-sale debt securities, at fair value	1,378,763		1,325,373
Residential Mortgage-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale debt securities, amortized cost basis	94,643		94,708
Available-for-sale debt securities gross unrealized gain	4,409		4,963
Available-for-sale debt securities, gross unrealized loss	(116)		(120)
Available-for-sale debt securities, at fair value	98,936		99,551
Other Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale debt securities, amortized cost basis	81,079		72,772
Available-for-sale debt securities gross unrealized gain	482		98
Available-for-sale debt securities, gross unrealized loss	(155)		(303)
Available-for-sale debt securities, at fair value	81,406		72,567
Commercial Mortgage-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale debt securities, amortized cost basis	125,096		107,201
Available-for-sale debt securities gross unrealized gain	2,880		2,712
Available-for-sale debt securities, gross unrealized loss	(316)		(470)
Available-for-sale debt securities, at fair value	$ 127,660		$ 109,443

[1] Includes approximately $0.1 million of other-than-temporary impairment (“OTTI”) losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income.

[2] Includes approximately $0.1 million of OTTI related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income.

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Investments - Schedule of Available-for-sale Securities (Parenthetical) (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Other-than-temporary impairment losses, investments, portion in other comprehensive income (loss)	$ 0.1	$ 0.1

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Investments - Fixed-maturity Securities Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands	Jun. 30, 2017		Dec. 31, 2016	[2]
Available-for-sale Securities, Debt Maturities [Abstract]
Due in one year or less, amortized cost	$ 140,732
Due after one year through five years, amortized cost	752,673
Due after five years through 10 years, amortized cost	580,961
Due after 10 years, amortized cost	47,706
Total fixed-maturity securities with single maturity dates, amortized cost	1,522,072
Mortgage and asset-backed securities, amortized cost	300,818
Available-for-sale debt securities, amortized cost basis	1,822,890	[1]	$ 1,734,683
Due in one year or less, fair value	142,901
Due after one year through five years, fair value	785,331
Due after five years through 10 years, fair value	599,415
Due after 10 years, fair value	53,334
Total fixed-maturity securities with single maturity dates, fair value	1,580,981
Mortgage and asset-backed securities, fair value	308,002
Available-for-sale debt securities, at fair value	$ 1,888,983	[1]	$ 1,792,438

[1] Includes approximately $0.1 million of other-than-temporary impairment (“OTTI”) losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income.

[2] Includes approximately $0.1 million of OTTI related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income.

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Investments - Net Effect on Stockholders' Equity of Unrealized Gains and Losses on Available-for-sale Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax [Abstract]
Net unrealized investment gains including OTTI, Fixed-maturity and Equity securities	$ 76,660	$ 65,831
OTTI	83	95
Net unrealized investment gains excluding OTTI	76,743	65,926
Less deferred income taxes	(26,860)	(23,074)
Net unrealized investment gains excluding OTTI, net of tax	$ 49,883	$ 42,852

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Investments - Fixed-maturity Securities Classified as Trading (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Schedule of Trading Securities and Other Trading Assets [Line Items]
Total fixed-maturity and equity securities, Cost	$ 15,538	$ 7,382
Total fixed-maturity and equity securities, Fair value	15,541	7,383
Fixed-maturity Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Total fixed-maturity and equity securities, Cost	14,238	7,332
Total fixed-maturity and equity securities, Fair value	14,236	7,332
Equity Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Total fixed-maturity and equity securities, Cost	1,300	50
Total fixed-maturity and equity securities, Fair value	$ 1,305	$ 51

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Investments - Held-to-maturity Security - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2017 USD ($)
Schedule Of Held To Maturity Securities [Line Items]
Held-to-maturity debt security estimated unrealized holding gain	$ 30.1
LLC Note [Member]
Schedule Of Held To Maturity Securities [Line Items]
Debt instrument maturity date	Dec. 31, 2030
Debt instrument, interest rate, stated percentage	4.50%
Surplus Note [Member]
Schedule Of Held To Maturity Securities [Line Items]
Debt instrument maturity date	Dec. 31, 2030
Debt instrument, interest rate, stated percentage	4.50%

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Investments - Fair Value of Investments on Deposit with Governmental Authorities - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Investments Debt And Equity Securities [Abstract]
Fair values of investments on deposit	$ 17.9	$ 18.2

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Investments - Securities Lending Collateral - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Securities Received as Collateral [Abstract]
Securities loaned, minimum collateral to loan ratio	102.00%
Securities loaned, additional collateral requirement, decline in collateral value threshold percentage	100.00%
Cash collateral received and reinvested	$ 115.9	$ 73.6

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Investments - Net Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income, operating	$ 27,134	$ 26,220	$ 53,988	$ 52,822
Investment expenses	(1,305)	(1,226)	(2,546)	(2,435)
Investment income net of investment expenses	25,829	24,994	51,442	50,387
Interest expense on surplus note	(6,087)	(4,605)	(11,806)	(8,760)
Net investment income	19,742	20,389	39,636	41,627
Equity Securities [Member]
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income, operating	515	502	1,051	1,021
Policy Loans and Other Invested Assets [Member]
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income, operating	316	351	622	681
Cash and Cash Equivalents [Member]
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income, operating	246	200	439	349
Total return on deposit asset underlying 10% insurance agreement [Member]
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income, operating	770	2,185	1,801	4,385
Available-for-Sale [Member] | Fixed-maturity Securities [Member]
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income, operating	19,200	18,377	38,269	37,626
Held-to-Maturity [Member] | Fixed-maturity Securities [Member]
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income, operating	$ 6,087	$ 4,605	$ 11,806	$ 8,760

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Investments - Schedule of Net Realized Investment Gains and Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Realized Investment Gains Losses [Abstract]
Gross gains from sales	$ 770	$ 4,400	$ 1,064	$ 5,685
Gross losses from sales	(13)	(378)	(28)	(523)
OTTI losses	(484)	(803)	(695)	(2,830)
Gains (losses) from bifurcated options	(169)	221	(103)	325
Realized investment gains (losses), including other-than- temporary impairment losses	$ 104	$ 3,440	$ 238	$ 2,657

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Investments - Available-for-sale Securities with Cost Basis in Excess of Fair Value - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Investments Debt And Equity Securities [Abstract]
Available for sale fixed-maturity and equity securities with cost basis in excess of fair value, cost basis	$ 322.3	$ 450.9

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Investments - Schedule of Securities in Unrealized Loss Position (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017 USD ($) Securities	Dec. 31, 2016 USD ($) Securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value	$ 282,321	$ 380,199
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses	(2,829)	(5,207)
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value	35,786	62,955
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses	(1,358)	(2,568)
Fixed-maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value	281,918	376,020
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses	(2,818)	(4,938)
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value	35,384	61,103
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses	(1,269)	(2,324)
U.S. Government and Agencies [Member] | Fixed-maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value	5,247	3,668
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses	$ (16)	$ (24)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities	6	4
Foreign Government [Member] | Fixed-maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value	$ 29,301	$ 34,538
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses	$ (314)	$ (526)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities	32	36
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value	$ 1,272	$ 3,048
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses	$ (44)	$ (161)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities	2	3
States and Political Subdivisions [Member] | Fixed-maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value	$ 8,187	$ 8,902
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses	$ (92)	$ (129)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities	10	12
Corporates [Member] | Fixed-maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value	$ 145,814	$ 232,070
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses	$ (1,885)	$ (3,484)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities	125	225
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value	$ 22,838	$ 45,471
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses	$ (1,149)	$ (2,045)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities	29	51
Residential Mortgage-backed Securities [Member] | Fixed-maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value	$ 15,066	$ 15,232
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses	$ (97)	$ (92)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities	8	9
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value	$ 2,493	$ 3,606
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses	$ (19)	$ (28)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities	9	9
Other Asset-backed Securities [Member] | Fixed-maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value	$ 42,259	$ 48,275
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses	$ (148)	$ (260)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities	43	45
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value	$ 1,196	$ 1,315
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses	$ (7)	$ (43)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities	2	3
Commercial Mortgage-backed Securities [Member] | Fixed-maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value	$ 36,044	$ 33,335
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses	$ (266)	$ (423)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities	32	33
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value	$ 7,585	$ 7,663
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses	$ (50)	$ (47)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities	11	11
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value	$ 403	$ 4,179
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses	$ (11)	$ (269)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities	9	12
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value	$ 402	$ 1,852
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses	$ (89)	$ (244)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities	7	8

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Investments - Amortized Cost and Fair Value of Available-for-sale Fixed-maturity Securities in Default (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Investments Debt And Equity Securities [Abstract]
Available-for-sale fixed-maturity securities in default, amortized cost	$ 3	$ 5
Available-for-sale fixed-maturity securities in default, fair value	$ 141	$ 125

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Investments - Impairment Charges in Earnings on Available-for-sale Securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Impairment charges recognized in earnings	$ 484	$ 803	$ 695	$ 2,830
Equity Securities [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Impairment charges recognized in earnings	25	5	160	32
Investments in fixed-maturity securities not in default [Member] | Fixed-maturity Securities [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Impairment charges recognized in earnings	$ 459	683	$ 535	2,679
Investments in fixed-maturity securities in default [Member] | Fixed-maturity Securities [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Impairment charges recognized in earnings		$ 115		$ 119

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Investments - Schedule of Net Impairment Losses Recognized in Earnings for Available-for-sale Securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Total other-than-temporary impairment losses	$ 484	$ 803	$ 695	$ 2,830
Other-than-temporary impairment losses, investments, portion recognized in earnings, net	484	803	695	2,830
Does not intend to sell or more-likely-than-not will not be required to sell before recovery [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Total other-than-temporary impairment losses	459	488	535	929
Other-than-temporary impairment losses, investments, portion recognized in earnings, net	459	488	535	929
Intends to sell or more-likely-than-not will be required to sell before recovery [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Other-than-temporary impairment losses, investments, portion recognized in earnings, net	$ 25	$ 315	$ 160	$ 1,901

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Investments - Rollforward of OTTI Recognized in Net Income, Fixed-maturity Securities Still Held (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Other than Temporary Impairment, OTTI Recognized in Earnings [Roll Forward]
Cumulative other-than-temporary impairment, net income for securities still held, beginning balance	$ 5,759	$ 10,880	$ 5,774	$ 11,856
Additions for other-than-temporary impaired securities where no OTTI were recognized prior to the beginning of the period		798		1,231
Additions for other-than-temporary impaired securities where OTTI have been recognized prior to the beginning of the period	459		535	1,567
Reductions due to sales, maturities, calls, amortization or increases in cash flows expected to be collected over the remaining life of credit impaired securities	(643)	(3,574)	(597)	(5,494)
Reductions for exchanges of securities previously impaired		(615)	(137)	(1,671)
Cumulative other-than-temporary impairment, credit losses for securities still held, ending balance	$ 5,575	$ 7,489	$ 5,575	$ 7,489

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Investments - Impairment Losses on Held-to-maturity Security - Narrative (Details)	6 Months Ended
	Jun. 30, 2017 USD ($)
Investments Debt And Equity Securities [Abstract]
Impairment losses held-to-maturity security	$ 0

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Investments - Derivative - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract]
Aggregate fair value of embedded conversion options	$ 4.5	$ 4.3

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Investments - Loss from Closed Currency Forward Contracts Recorded in Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract]
Deferred loss related to closed forward contracts	$ (26.4)	$ (26.4)

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Fair Value of Financial Instruments - Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	$ 1,934,919	$ 1,837,332
Trading securities	$ 15,541	7,383
Fair value assumptions, percentage of securities assessed by third-party pricing service	94.00%
Fair Value, Recurring Measurements [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Trading securities	$ 15,541	7,383
Assets, fair value disclosure, recurring	4,375,397	4,132,668
Liabilities, fair value disclosure, recurring	2,424,937	2,287,953
Fair Value, Recurring Measurements [Member] | U.S. Government and Agencies [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	9,382	10,474
Fair Value, Recurring Measurements [Member] | Foreign Government [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	138,859	129,306
Fair Value, Recurring Measurements [Member] | States and Political Subdivisions [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	53,977	45,724
Fair Value, Recurring Measurements [Member] | Corporates [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	1,378,763	1,325,373
Fair Value, Recurring Measurements [Member] | Residential Mortgage-backed Securities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	98,936	99,551
Fair Value, Recurring Measurements [Member] | Other Asset-backed Securities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	81,406	72,567
Fair Value, Recurring Measurements [Member] | Commercial Mortgage-backed Securities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	127,660	109,443
Fair Value, Recurring Measurements [Member] | Fixed-maturity Securities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	1,888,983	1,792,438
Fair Value, Recurring Measurements [Member] | Equity Securities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	45,936	44,894
Fair Value, Recurring Measurements [Member] | Separate Accounts Assets, Fair Value Disclosure [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Separate accounts assets	2,424,937	2,287,953
Fair Value, Recurring Measurements [Member] | Separate Accounts Liabilities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Separate accounts liabilities	2,424,937	2,287,953
Fair Value, Recurring Measurements [Member] | Level 1 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Trading securities	1,305
Assets, fair value disclosure, recurring	45,054	42,669
Fair Value, Recurring Measurements [Member] | Level 1 [Member] | Corporates [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	3,445	3,113
Fair Value, Recurring Measurements [Member] | Level 1 [Member] | Fixed-maturity Securities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	3,445	3,113
Fair Value, Recurring Measurements [Member] | Level 1 [Member] | Equity Securities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	40,304	39,556
Fair Value, Recurring Measurements [Member] | Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Trading securities	14,236	7,383
Assets, fair value disclosure, recurring	4,328,482	4,081,837
Liabilities, fair value disclosure, recurring	2,424,937	2,287,953
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | U.S. Government and Agencies [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	9,382	10,474
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | Foreign Government [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	138,859	129,306
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | States and Political Subdivisions [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	53,977	45,724
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | Corporates [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	1,375,315	1,322,257
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | Residential Mortgage-backed Securities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	98,434	98,966
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | Other Asset-backed Securities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	80,152	65,075
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | Commercial Mortgage-backed Securities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	127,660	109,443
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | Fixed-maturity Securities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	1,883,779	1,781,245
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | Equity Securities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	5,530	5,256
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | Separate Accounts Assets, Fair Value Disclosure [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Separate accounts assets	2,424,937	2,287,953
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | Separate Accounts Liabilities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Separate accounts liabilities	2,424,937	2,287,953
Fair Value, Recurring Measurements [Member] | Level 3 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, fair value disclosure, recurring	1,861	8,162
Fair Value, Recurring Measurements [Member] | Level 3 [Member] | Corporates [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	3	3
Fair Value, Recurring Measurements [Member] | Level 3 [Member] | Residential Mortgage-backed Securities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	502	585
Fair Value, Recurring Measurements [Member] | Level 3 [Member] | Other Asset-backed Securities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	1,254	7,492
Fair Value, Recurring Measurements [Member] | Level 3 [Member] | Fixed-maturity Securities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	1,759	8,080
Fair Value, Recurring Measurements [Member] | Level 3 [Member] | Equity Securities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale securities, fair value	$ 102	$ 82

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Fair Value of Financial Instruments - Rollforward of Level 3 Assets Measured on Recurring Basis (Details) - Fair Value, Recurring Measurements [Member] - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017		Jun. 30, 2016
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Level 3 assets, beginning of period		$ 9,788	$ 753	$ 8,162	[1]	$ 783	[1]
Net unrealized gains (losses) included in other comprehensive income		236	(1)	222	[1]	5	[1]
Realized gains (losses) and accretion (amortization) recognized in earnings, including OTTI		3	1	10	[1]	5	[1]
Purchases		1,250		1,250	[1]
Sales	[1]					(3)
Settlements		(213)	(37)	(441)	[1]	(73)	[1]
Transfers into Level 3		4	1	2,439	[1]	1	[1]
Transfers out of Level 3	[2]	(9,207)		(9,781)	[1]	(1)	[1]
Level 3 assets, end of period	[1]	$ 1,861	$ 717	$ 1,861		$ 717

[1] Activity for investments that enter Level 3 in one quarter and exit Level 3 in another quarter within the same fiscal year are not eliminated until year-end when only the full year amounts are presented.

[2] During the three and six months ended June 30, 2017, transfers out of Level 3 assets primarily consisted of recently purchased fixed-maturity securities in a previous quarter for which observable inputs, most notably quoted prices, used to derive valuations became readily available.

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Fair Value of Financial Instruments - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair value security, level 1 to level 2 transfers, amount	$ 0	$ 0	$ 0	$ 0
Fair Value security, level 1 to level 3 transfers, amount	$ 0	$ 0	$ 0	$ 0

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Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value for Financial Instruments (Details) - USD ($) $ in Thousands		Jun. 30, 2017	Dec. 31, 2016
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value		$ 1,934,919	$ 1,837,332
Fixed-maturity securities held to maturity, fair value		665,801	513,015
Trading securities		15,541	7,383
Surplus note		634,980	502,491
Fixed-maturity securities (held-to-maturity)		635,690	503,230
Fair Value, Recurring Measurements [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Trading securities		15,541	7,383
Level 2 [Member] | Fair Value, Recurring Measurements [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Trading securities		14,236	7,383
Separate Accounts Assets, Fair Value Disclosure [Member] | Fair Value, Recurring Measurements [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Separate accounts assets		2,424,937	2,287,953
Separate Accounts Assets, Fair Value Disclosure [Member] | Level 2 [Member] | Fair Value, Recurring Measurements [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Separate accounts assets		2,424,937	2,287,953
Separate Accounts Liabilities [Member] | Fair Value, Recurring Measurements [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Separate accounts liabilities		2,424,937	2,287,953
Separate Accounts Liabilities [Member] | Level 2 [Member] | Fair Value, Recurring Measurements [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Separate accounts liabilities		2,424,937	2,287,953
Reported Value Measurement [Member] | Fair Value, Recurring Measurements [Member] | Fixed-maturity Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value		1,888,983	1,792,438
Reported Value Measurement [Member] | Fair Value, Recurring Measurements [Member] | Equity Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value		45,936	44,894
Reported Value Measurement [Member] | Level 3 [Member] | Fair value, Nonrecurring Measurements [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Policy loans		34,316	30,916
Surplus note	[1]	634,980	502,491
Fixed-maturity securities (held-to-maturity)		635,690	503,230
Reported Value Measurement [Member] | Level 3 [Member] | Fair value, Nonrecurring Measurements [Member] | Deposits [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Deposit asset underlying 10% coinsurance agreement		211,387	202,435
Reported Value Measurement [Member] | Level 2 [Member] | Fair Value, Recurring Measurements [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Trading securities		15,541	7,383
Reported Value Measurement [Member] | Separate Accounts Assets, Fair Value Disclosure [Member] | Level 2 [Member] | Fair Value, Recurring Measurements [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Separate accounts assets		2,424,937	2,287,953
Reported Value Measurement [Member] | Senior Notes [Member] | Level 2 [Member] | Fair value, Nonrecurring Measurements [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Notes payable	[1]	373,103	372,919
Reported Value Measurement [Member] | Separate Accounts Liabilities [Member] | Level 2 [Member] | Fair Value, Recurring Measurements [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Separate accounts liabilities		2,424,937	2,287,953
Estimate of Fair Value Measurement [Member] | Fair Value, Recurring Measurements [Member] | Fixed-maturity Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value		1,888,983	1,792,438
Estimate of Fair Value Measurement [Member] | Fair Value, Recurring Measurements [Member] | Equity Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value		45,936	44,894
Estimate of Fair Value Measurement [Member] | Level 3 [Member] | Fair value, Nonrecurring Measurements [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed-maturity securities held to maturity, fair value		665,801	513,015
Policy loans		34,316	30,916
Surplus note	[1]	664,759	512,669
Estimate of Fair Value Measurement [Member] | Level 3 [Member] | Fair value, Nonrecurring Measurements [Member] | Deposits [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Deposit asset underlying 10% coinsurance agreement		211,387	202,435
Estimate of Fair Value Measurement [Member] | Level 2 [Member] | Fair Value, Recurring Measurements [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Trading securities		15,541	7,383
Estimate of Fair Value Measurement [Member] | Separate Accounts Assets, Fair Value Disclosure [Member] | Level 2 [Member] | Fair Value, Recurring Measurements [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Separate accounts assets		2,424,937	2,287,953
Estimate of Fair Value Measurement [Member] | Senior Notes [Member] | Level 2 [Member] | Fair value, Nonrecurring Measurements [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Notes payable	[1]	403,976	401,340
Estimate of Fair Value Measurement [Member] | Separate Accounts Liabilities [Member] | Level 2 [Member] | Fair Value, Recurring Measurements [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Separate accounts liabilities		$ 2,424,937	$ 2,287,953

[1] Carrying value amounts shown are net of issuance costs.

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Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value for Financial Instruments (Parenthetical) (Details)	Jun. 30, 2017	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Percentage of coinsurance costs	10.00%	10.00%

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Reinsurance - In-force Life Insurance (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Reinsurance Disclosures [Abstract]
Direct life insurance in force	$ 749,737,546	$ 731,822,070
Amounts ceded to other companies	(655,336,759)	(643,364,460)
Net life insurance in force	$ 94,400,787	$ 88,457,610
Percentage of reinsured life insurance in force	87.00%	88.00%

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Reinsurance - Reinsurance Receivable and Financial Strength Ratings by Reinsurer (Details) - USD ($) $ in Thousands		Jun. 30, 2017	Dec. 31, 2016
Ceded Credit Risk [Line Items]
Reinsurance receivable		$ 4,191,754	$ 4,193,562
Pecan Re Inc [Member] | External credit rating, not rated [Member]
Ceded Credit Risk [Line Items]
Reinsurance receivable	[1],[2]	2,733,159	2,754,424
SCOR Global Life Reinsurance Companies [Member] | AM Best, A Rating [Member]
Ceded Credit Risk [Line Items]
Reinsurance receivable	[3]	352,076	355,759
Munich Re of Malta [Member] | External credit rating, not rated [Member]
Ceded Credit Risk [Line Items]
Reinsurance receivable	[1]	292,737	282,382
Swiss Re Life & Health America Inc. [Member] | AM Best, A+ Rating [Member]
Ceded Credit Risk [Line Items]
Reinsurance receivable	[4]	254,773	249,299
American Health and Life Insurance Company [Member] | AM Best, B Rating [Member]
Ceded Credit Risk [Line Items]
Reinsurance receivable	[1]	175,138	176,010
Munich American Reassurance Company [Member] | AM Best, A+ Rating [Member]
Ceded Credit Risk [Line Items]
Reinsurance receivable		107,122	106,471
Korean Reinsurance Company [Member] | AM Best, A Rating [Member]
Ceded Credit Risk [Line Items]
Reinsurance receivable		98,349	96,921
RGA Reinsurance Company [Member] | AM Best, A+ Rating [Member]
Ceded Credit Risk [Line Items]
Reinsurance receivable		85,333	84,473
Hannover Life Reassurance Company [Member] | AM Best, A+ Rating [Member]
Ceded Credit Risk [Line Items]
Reinsurance receivable		29,361	22,929
TOA Reinsurance Company [Member] | AM Best, A Rating [Member]
Ceded Credit Risk [Line Items]
Reinsurance receivable		24,937
TOA Reinsurance Company [Member] | AM Best, A+ Rating [Member]
Ceded Credit Risk [Line Items]
Reinsurance receivable			23,977
All Other Reinsurers [Member]
Ceded Credit Risk [Line Items]
Reinsurance receivable		$ 38,769	$ 40,917

[1] Includes balances ceded under coinsurance transactions of term life insurance policies that were in force as of December 31, 2009. Amounts shown are net of their share of the reinsurance receivable from other reinsurers.

[2] Pecan Re Inc. is a wholly owned subsidiary of Swiss Re Life & Health America Inc.

[3] Includes amounts ceded to Transamerica Reinsurance Companies and fully retroceded to SCOR Global Life Reinsurance Companies.

[4] Includes amounts ceded to Lincoln National Life Insurance and fully retroceded to Swiss Re Life & Health America Inc.

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Reinsurance - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Reinsurance Disclosures [Abstract]
Benefits and claims ceded to reinsurers	$ 334.3	$ 301.2	$ 677.2	$ 605.0

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Policy Claims and Other Benefits Payable - Schedule of Liability For Policy Claims and Other Benefits Payable (Details) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016
Roll Forward In Liability For Unpaid Claims And Claims Adjustment Expense [Abstract]
Policy claims and other benefits payable, beginning of period		$ 268,136	$ 238,157
Reinsured policy claims and other benefits payable, beginning of period		323,195	263,003
Net balance, beginning of period		(55,059)	(24,846)
Incurred related to current year		82,358	70,719
Incurred related to prior years	[1]	2,033	(719)
Total incurred		84,391	70,000
Claims paid related to current year, net of reinsured policy claims received		(122,097)	(106,607)
Reinsured policy claims received related to prior years, net of claims paid		57,146	31,603
Total paid		(64,951)	(75,004)
Foreign currency translation		154	429
Net balance, end of period		(35,465)	(29,421)
Reinsured policy claims and other benefits payable, end of period		303,095	264,686
Policy claims and other benefits payable, end of period		$ 267,630	$ 235,265

[1] Includes the difference between our estimate of claims incurred but not yet reported at period end and the actual incurred claims reported after period end.

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Stockholders' Equity - Reconciliation of Number of Shares of Common Stock (Details) - shares	6 Months Ended		7 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017
Stockholders Equity Note [Abstract]
Common stock, beginning of period	45,721,000	48,297,000
Shares issued for stock options exercised	38,000	108,000
Shares of common stock issued upon lapse of restricted stock units ("RSUs")	341,000	322,000
Common stock retired	(1,065,000)	(2,125,000)	(967,337)
Common stock, end of period	45,035,000	46,602,000	45,035,000

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Stockholders' Equity - Narrative (Details) - USD ($)	6 Months Ended		7 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017
Class Of Stock [Line Items]
Stock repurchased program, authorized amount	$ 200,000,000		$ 200,000,000
Stock repurchased and retired during period, shares	1,065,000	2,125,000	967,337
Stock repurchased and retired during period, value			$ 75,000,000
Stock repurchase program, remaining authorized repurchase amount	$ 125,000,000		$ 125,000,000
Restricted stock units (RSUs) [Member]
Class Of Stock [Line Items]
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number	1,000,000		1,000,000
Performance share units (PSUs) [Member]
Class Of Stock [Line Items]
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number	54,431		54,431

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Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Net income	$ 63,107	$ 59,326	$ 115,176	$ 104,502
Income attributable to unvested participating securities, basic EPS	(430)	(491)	(859)	(861)
Net income used in calculating basic EPS	$ 62,677	$ 58,835	$ 114,317	$ 103,641
Weighted-average vested shares	45,984	47,658	46,142	48,104
Basic EPS	$ 1.36	$ 1.23	$ 2.48	$ 2.15
Income attributable to unvested participating securities, diluted EPS	$ (430)	$ (490)	$ (857)	$ (860)
Net income used in calculating diluted EPS	$ 62,677	$ 58,836	$ 114,319	$ 103,642
Dilutive effect of incremental shares to be issued for contingently issuable shares	87	50	80	37
Weighted-average shares used in calculating diluted EPS	46,071	47,708	46,222	48,141
Diluted EPS	$ 1.36	$ 1.23	$ 2.47	$ 2.15

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Share-Based Transactions - Impact of Equity Awards Granted (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total equity awards expense recognized	$ 1,923	$ 2,548	$ 11,667	$ 10,031
Expense Deferred [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Quarterly incentive awards expense deferred	$ 2,668	$ 2,702	$ 5,418	$ 5,394

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Share-Based Transactions - Narrative (Details)	Feb. 16, 2017 $ / shares shares
Restricted stock units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares awarded	116,104
Measurement date fair value | $ / shares	$ 80.45
Share-based compensation arrangement by share-based payment award, award vesting period	3 years
Performance share units (PSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares awarded	36,046
Measurement date fair value | $ / shares	$ 80.45
Share-based compensation arrangement by share-based payment award, award vesting period	3 years
Performance share units (PSUs) [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of PSUs vested during the period	54,069
Performance share units (PSUs) [Member] | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of PSUs vested during the period	0

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Commitments and Contingent Liabilities - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2017 USD ($) Jurisdiction
Commitments And Contingent Liabilities [Line Items]
Number of jurisdiction | Jurisdiction	30
Letter of Credit [Member]
Commitments And Contingent Liabilities [Line Items]
Letter of credit, outstanding | $	$ 380.1

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Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Foreign currency translation adjustments:
Change in unrealized foreign currency translation gains (losses) before income tax expense (benefit)	$ 6,753	$ (1,167)	$ 7,880	$ 14,869
Income tax expense (benefit) on unrealized foreign currency translation gains (losses)	74	(10)	88	159
Change in unrealized foreign currency translation gains (losses), net of income taxes	6,679	(1,157)	7,792	14,710
Unrealized gain (losses) on available-for-sale securities:
Change in unrealized holding gains (losses) on investment securities	3,889	33,568	11,170	58,284
Change in net unrealized investment gains (losses) not-other-than-temporarily impaired, income tax expense (benefit)	1,361	11,749	3,910	20,398
Change in unrealized holding gains (losses) on available-for-sale securities arising during period, net of income taxes	2,528	21,819	7,260	37,886
Reclassification adjustment for realized investment (gains) losses included in net income	(273)	(3,219)	(341)	(2,332)
Income tax (expense) benefits on (gains) losses reclassified from accumulated OCI to net income	(96)	(1,127)	(119)	(816)
Reclassification from accumulated OCI to net income for (gains) losses realized on available-for-sale securities, net of income taxes	(177)	(2,092)	(222)	(1,516)
Change in unrealized gains (losses) on available-for-sale securities, net of income taxes and reclassification adjustment	$ 2,351	$ 19,727	$ 7,038	$ 36,370

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Debt - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	6 Months Ended
	May 31, 2017	Jun. 30, 2017
Maximum [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	$ 1.3
Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, face amount		$ 375.0
Debt instrument, interest rate, stated percentage		4.75%
Debt instrument maturity date		Jul. 15, 2022
Surplus Note [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	$ 635.7
Debt instrument, interest rate, stated percentage		4.50%
Debt instrument maturity date		Dec. 31, 2030
Debt instrument, maturity start date	Dec. 31, 2019
Debt instrument, maturity end date	Dec. 31, 2030