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 March 31, 2019

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 every Interactive Data File required to be submitted 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 such files).    ☒ Yes    ☐ No

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

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	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

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	PRI	New York Stock Exchange

As of April 30, 2019, the registrant had 42,341,154 shares of common stock,  $0.01 par value per share, outstanding.

TABLE OF CONTENTS

	Page
PART I – FINANCIAL INFORMATION	2
Item 1. Financial Statements (unaudited).	2
Condensed Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018	2
Condensed Consolidated Statements of Income for the three months ended March 31, 2019 and 2018	3
Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2019 and 2018	4
Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 30, 2019 and 2018	5
Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2019 and 2018	6
Notes to Condensed Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.	26
Item 3. Quantitative and Qualitative Disclosures About Market Risk.	41
Item 4. Controls and Procedures.	41
PART II – OTHER INFORMATION	41
Item 1. Legal Proceedings.	41
Item 1A. Risk Factors.	41
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	42
Item 6. Exhibits.	42
Signatures	43

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

PRIMERICA, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

	(Unaudited)
	March 31, 2019			December 31, 2018
	(In thousands)
Assets:
Investments:
Fixed-maturity securities available-for-sale, at fair value (amortized cost: $2,051,624 in 2019    and $2,078,822 in 2018)	$	2,088,702		$	2,069,635
Fixed-maturity security held-to-maturity, at amortized cost (fair value: $1,058,428 in 2019 and    $945,331 in 2018)		1,036,110			970,390
Short-term investments available-for-sale, at fair value (amortized cost: $8,230 in 2019    and $8,171 in 2018)		8,230			8,171
Equity securities, at fair value (historical cost: $32,142 in 2019 and $34,997 in 2018)		37,848			37,679
Trading securities, at fair value (cost: $26,502 in 2019 and $13,597 in 2018)		26,556			13,610
Policy loans		30,783			31,501
Total investments		3,228,229			3,130,986
Cash and cash equivalents		279,626			262,138
Accrued investment income		18,450			17,057
Reinsurance recoverables		4,202,903			4,141,569
Deferred policy acquisition costs, net		2,181,741			2,133,920
Agent balances, due premiums and other receivables		226,061			215,139
Intangible assets, net (accumulated amortization: $82,887 in 2019 and $82,035 in 2018)		47,260			48,111
Income taxes		62,252			59,336
Operating lease right-of-use assets		50,506			-
Other assets		410,841			391,291
Separate account assets		2,368,760			2,195,501
Total assets	$	13,076,629		$	12,595,048
Liabilities and Stockholders’ Equity:
Liabilities:
Future policy benefits	$	6,240,864		$	6,168,157
Unearned and advance premiums		17,341			15,587
Policy claims and other benefits payable		308,422			313,862
Other policyholders’ funds		377,360			370,644
Notes payable		373,755			373,661
Surplus note		1,035,421			969,685
Income taxes		206,180			187,104
Operating lease liabilities		56,712			-
Other liabilities		505,514			486,772
Payable under securities lending		64,914			52,562
Separate account liabilities		2,368,760			2,195,501
Commitments and contingent liabilities (see Commitments and Contingent Liabilities note)
Total liabilities		11,555,243			11,133,535
Stockholders’ equity:
Common stock ($0.01 par value; authorized 500,000 shares in 2019 and 2018; issued and    outstanding 42,399 shares in 2019 and 42,694 shares in 2018)		424			427
Paid-in capital		-			-
Retained earnings		1,506,943			1,489,520
Accumulated other comprehensive income (loss), net of income tax:
Unrealized foreign currency translation gains (losses)		(14,897	)		(21,064	)
Net unrealized investment gains (losses) on available-for-sale securities:
Net unrealized investment gains not other-than-temporarily impaired		29,022			(7,253	)
Net unrealized investment losses other-than-temporarily impaired		(106	)		(117	)
Total stockholders’ equity		1,521,386			1,461,513
Total liabilities and stockholders’ equity	$	13,076,629		$	12,595,048

See accompanying notes to condensed consolidated financial statements.

2

PRIMERICA, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income – Unaudited

	Three months ended March 31,
	2019			2018
	(In thousands, except per-share amounts)
Revenues:
Direct premiums	$	677,286		$	656,087
Ceded premiums		(389,795	)		(394,249	)
Net premiums		287,491			261,838
Commissions and fees		167,315			166,827
Investment income net of investment expenses		34,785			27,390
Interest expense on surplus note		(10,674	)		(8,373	)
Net investment income		24,111			19,017
Realized investment gains (losses), including other-than-    temporary impairment losses		2,847			(1,656	)
Other, net		13,223			13,897
Total revenues		494,987			459,923
Benefits and expenses:
Benefits and claims		122,284			116,890
Amortization of deferred policy acquisition costs		64,628			60,165
Sales commissions		83,799			82,519
Insurance expenses		43,402			41,109
Insurance commissions		5,619			5,877
Interest expense		7,180			7,173
Other operating expenses		65,707			63,227
Total benefits and expenses		392,619			376,960
Income before income taxes		102,368			82,963
Income taxes		23,203			17,248
Net income		79,165			65,715
Earnings per share:
Basic earnings per share	$	1.84		$	1.46
Diluted earnings per share	$	1.83		$	1.46
Weighted-average shares used in computing earnings    per share:
Basic		42,824			44,740
Diluted		42,942			44,855
Supplemental disclosures:
Total impairment losses	$	-		$	(49	)
Impairment losses recognized in other comprehensive income    before income taxes		-			-
Net impairment losses recognized in earnings		-			(49	)
Other net realized investment gains (losses)		(54	)		338
Net gains (losses) recognized on equity securities		2,901			(1,945	)
Net realized investment gains (losses), including other-than-   temporary impairment losses	$	2,847		$	(1,656	)

See accompanying notes to condensed consolidated financial statements.

3

PRIMERICA, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income – Unaudited

	Three months ended March 31,
	2019		2018
	(In thousands)
Net income	$	79,165	$	65,715
Other comprehensive income (loss) before income taxes:
Unrealized investment gains (losses) on available-for-sale securities:
Change in unrealized holding gains (losses) on investment securities		46,200		(32,343	)
Reclassification adjustment for realized investment (gains)    losses included in net income		65		(316	)
Foreign currency translation adjustments:
Change in unrealized foreign currency translation gains (losses)		6,167		(8,401	)
Total other comprehensive income (loss) before income taxes		52,432		(41,060	)
Income tax expense (benefit) related to items of other    comprehensive income (loss)		9,979		(6,916	)
Other comprehensive income (loss), net of income taxes		42,453		(34,144	)
Total comprehensive income	$	121,618	$	31,571

See accompanying notes to condensed consolidated financial statements.

4

PRIMERICA, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders’ Equity – Unaudited

	Three months ended March 31,
	2019			2018
	(In thousands)
Common stock:
Balance, beginning of period	$	427		$	443
Repurchases of common stock		(5	)		(5	)
Net issuance of common stock		2			2
Balance, end of period		424			440
Paid-in capital:
Balance, beginning of period		-			-
Share-based compensation		13,171			13,988
Net issuance of common stock		(2	)		(2	)
Repurchases of common stock		(13,169	)		(13,986	)
Balance, end of period		-			-
Retained earnings:
Balance, beginning of period		1,489,520			1,375,090
Cumulative effect from the adoption of new accounting standards, net		-			24,610
Net income		79,165			65,715
Dividends		(14,628	)		(11,278	)
Repurchases of common stock		(47,114	)		(37,573	)
Balance, end of period		1,506,943			1,416,564
Accumulated other comprehensive income (loss):
Balance, beginning of period		(28,434	)		43,568
Cumulative effect from the adoption of new accounting standards, net		-			73
Change in foreign currency translation adjustment,     net of income tax expense (benefit)		6,167			(8,401	)
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		36,275			(25,719	)
Change in net unrealized investment gains (losses) other-than-temporarily      impaired		11			(24	)
Balance, end of period		14,019			9,497
Total stockholders’ equity	$	1,521,386		$	1,426,501
Dividends declared per share	$	0.34		$	0.25

See accompanying notes to condensed consolidated financial statements.

5

PRIMERICA, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows – Unaudited

	Three months ended March 31,
	2019			2018
	(In thousands)
Cash flows from operating activities:
Net income	$	79,165		$	65,715
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Change in future policy benefits and other policy liabilities		65,733			69,052
Deferral of policy acquisition costs		(105,080	)		(111,422	)
Amortization of deferred policy acquisition costs		64,628			60,165
Change in income taxes		6,180			6,444
Realized investment (gains) losses, including other-than-temporary impairments		(2,847	)		1,656
Accretion and amortization of investments		(120	)		(126	)
Depreciation and amortization		4,156			3,044
Change in reinsurance recoverables		(54,860	)		(66,974	)
Change in agent balances, due premiums and other receivables		(7,910	)		2,440
Trading securities sold, matured, or called (acquired), net		(12,918	)		(24,025	)
Share-based compensation		10,896			11,502
Change in other operating assets and liabilities, net		19,398			26,863
Net cash provided by (used in) operating activities		66,421			44,334
Cash flows from investing activities:
Available-for-sale investments sold, matured or called:
Fixed-maturity securities — sold		6,467			14,873
Fixed-maturity securities — matured or called		108,972			105,109
Equity securities —  sold		3,109			-
Available-for-sale investments acquired:
Fixed-maturity securities		(86,301	)		(187,853	)
Equity securities — acquired		(375	)		(69	)
Purchases of property and equipment and other investing activities, net		(6,594	)		(2,080	)
Cash collateral received (returned) on loaned securities, net		12,352			(353	)
Sales (purchases) of short-term investments using securities lending collateral, net		(12,352	)		353
Net cash provided by (used in) investing activities		25,278			(70,020	)
Cash flows from financing activities:
Dividends paid		(14,628	)		(11,278	)
Common stock repurchased		(53,625	)		(46,328	)
Tax withholdings on share-based compensation		(6,664	)		(5,236	)
Finance leases		(70	)		-
Net cash provided by (used in) financing activities		(74,987	)		(62,842	)
Effect of foreign exchange rate changes on cash		776			(849	)
Change in cash and cash equivalents		17,488			(89,377	)
Cash and cash equivalents, beginning of period		262,138			279,962
Cash and cash equivalents, end of period	$	279,626		$	190,585

See accompanying notes to condensed consolidated financial statements.

6

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 provider of financial products to middle-income households in the United States and Canada through a network of independent contractor sales representatives (“sales representatives” or “sales force”). 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, LLC (“PFS”), a general agency and marketing company; Primerica Life Insurance Company (“Primerica Life”), our principal life insurance company; PFS Investments Inc. (“PFS Investments”), an investment products company and broker-dealer, 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”). Primerica Life, domiciled in Tennessee, owns National Benefit Life Insurance Company (“NBLIC”), a New York life insurance company. Peach Re, Inc. (“Peach Re”) and Vidalia Re, Inc. (“Vidalia Re”) are 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 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 March 31, 2019 and December 31, 2018, the statements of income, comprehensive income (loss), stockholders' equity and cash flows for the three months ended March 31, 2019 and 2018.  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, 2018 (“2018 Annual Report”).

Use of Estimates. 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 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”), future policy benefit reserves and corresponding amounts recoverable from reinsurers, 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 U.S. GAAP. 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 2018 Annual Report unless otherwise described.

New Accounting Principles. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (ASC 842) (“ASC 842”), which requires lessees to recognize right-of-use operating lease assets and operating lease liabilities on the balance sheet. The Company adopted the amendments in ASC 842 on January 1, 2019 using the modified retrospective approach through a cumulative-effect adjustment to beginning retained earnings. The cumulative-effect adjustment to beginning retained earnings was zero. In addition, we elected the package of practical expedients permitted under ASC 842, which included not reassessing whether existing contracts contained leases and not reassessing the lease classification for existing leases. The effect of adopting ASC 842 resulted in an increase to both total assets and total liabilities of $52.7 million on January 1, 2019. The increase to both assets and liabilities is less than  1% of our total assets and total liabilities. The adjustment recognized upon the adoption of ASC 842 included the recognition of our operating lease obligations and corresponding right-of-use assets on our condensed consolidated balance sheet,

7

which mainly consist of our executive office operations and other real estate leases of office space. The adoption of ASC 842 did not have an effect on the Company’s results of operations or liquidity. The Company’s reporting for the comparative periods prior to adoption continues to be presented in the condensed consolidated financial statements in accordance with previous lease accounting guidance, Accounting Standards Codification Topic 840 – Leases (“ASC 840”). Refer to Note 14 (Leases) for more information on leases.

Future Application of Accounting Standards. In August 2018, the FASB issued Accounting Standards Update No. 2018-12, Financial Services—Insurance (Topic 944) — Targeted Improvements to the Accounting for Long-Duration Contracts (“ASU 2018-12”). The amendments in this update change accounting guidance for insurance companies that issue long-duration contracts, including term life insurance. ASU 2018-12 requires companies that issue long-duration insurance contracts to update assumptions used in measuring future policy benefits, including mortality, persistency, and disability rates, at least annually instead of locking those assumptions at contract inception and reflecting differences in assumptions and actual performance as the experience occurs. ASU 2018-12 also includes changes to how insurance companies that issue long-duration contracts amortize DAC and determine and update the discount rate assumptions used in measuring future policy benefits reserves while increasing the level of financial statement disclosures required. The amendments in ASU 2018-12 are scheduled to be effective for the Company beginning in 2021 as of the earliest period presented in the condensed consolidated financial statements. We anticipate that the adoption of ASU 2018-12 will have a pervasive impact on our consolidated financial statements and related disclosures and will require changes to certain of our processes, systems and controls. We are unable to determine the magnitude of its impact at this time as we are in the early stages of evaluating and implementing this standard.

In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (“ASU 2016-13”), Financial Instruments—Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments (“ASC 326”). ASC 326 introduces new guidance for accounting for credit losses on financial instruments within its scope, including reinsurance recoverables, by replacing the current approach that delays recognition until it is probable a loss has been incurred with a new approach that estimates an allowance for anticipated credit losses on the basis of an entity’s own expectations. The objective of the new approach for estimating credit losses is to require consideration of a broader range of forward-looking information, which is expected to result in earlier recognition of credit losses on financial instruments. Available-for-sale debt securities are excluded from the scope of financial instruments that require measurement of credit losses on the basis of a forward-looking expected loss estimate under ASC 326. The incurred probable loss approach for measuring credit losses on available-for-sale debt securities will remain under ASC 326, however, an entity will be allowed to reverse credit losses previously recognized in an allowance for available-for-sale debt securities (other than credit losses for securities an entity intends to sell or will more-likely-than-not be required to sell before recovery of amortized cost) in situations where the estimate of credit losses on those securities has declined.  The amendments in ASC 326 also preclude an entity from considering the length of time an available-for-sale debt security has been in an unrealized loss position to avoid recording a credit loss and removes the requirement to consider recoveries or declines in fair value after the balance sheet date. The amendments in ASC 326 are effective for the Company beginning in fiscal year 2020. The Company is currently in the process of evaluating its impact on the Company’s consolidated financial statements.

Recently-issued accounting guidance not discussed above is not applicable, is immaterial to our condensed consolidated financial statements, or did not or is not expected to have a material impact on our business.

(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.

8

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

	Three months ended March 31,
	2019			2018
	(In thousands)
Revenues:
Term life insurance segment	$	296,843		$	270,309
Investment and savings products segment		162,672			162,041
Corporate and other distributed products segment		35,472			27,573
Total revenues	$	494,987		$	459,923
Net investment income:
Term life insurance segment	$	4,444		$	3,089
Investment and savings products segment		-			-
Corporate and other distributed products segment		19,667			15,928
Total net investment income	$	24,111		$	19,017
Amortization of DAC:
Term life insurance segment	$	64,066		$	56,673
Investment and savings products segment		477			3,442
Corporate and other distributed products segment		85			50
Total amortization of DAC	$	64,628		$	60,165
Non-cash share-based compensation expense:
Term life insurance segment	$	1,872		$	2,174
Investment and savings products segment		1,454			1,193
Corporate and other distributed products segment		7,557			8,135
Total non-cash share-based compensation expense	$	10,883		$	11,502
Income (loss) before income taxes:
Term life insurance segment	$	70,339		$	59,621
Investment and savings products segment		42,684			39,984
Corporate and other distributed products segment		(10,655	)		(16,642	)
Total income before income taxes	$	102,368		$	82,963

Total assets by segment were as follows:

	March 31, 2019		December 31, 2018
	(In thousands)
Assets:
Term life insurance segment	$	6,432,683	$	6,322,555
Investment and savings products segment (1)		2,480,973		2,298,238
Corporate and other distributed products segment		4,162,973		3,974,255
Total assets	$	13,076,629	$	12,595,048

_______________

⁽¹⁾ The Investment and Savings Products segment includes assets held in separate accounts. Excluding separate accounts, the Investment and Savings Products segment assets were $112.3 million and $102.8 million as of March 31, 2019 and December 31, 2018, 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 March 31,
	2019		2018
	(In thousands)
Revenues by country:
United States	$	419,992	$	383,796
Canada		74,995		76,127
Total revenues	$	494,987	$	459,923
Income before income taxes by country:
United States	$	80,735	$	63,214
Canada		21,633		19,749
Total income before income taxes	$	102,368	$	82,963

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	March 31, 2019		December 31, 2018
	(In thousands)
Long-lived assets by country:
United States	$	31,288	$	30,999
Canada		5,073		4,997
Total long-lived assets	$	36,361	$	35,996

(3) Investments

Available-for-sale Securities. The period-end amortized cost, gross unrealized gains and losses, and fair value of available-for-sale securities were as follows:

	March 31, 2019
	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	$	11,774	$	220	$	(40	)	$	11,954
Foreign government		155,710		5,975		(178	)		161,507
States and political subdivisions		67,903		1,945		(124	)		69,724
Corporates		1,407,274		30,372		(6,075	)		1,431,571
Residential mortgage-backed securities		200,259		3,695		(500	)		203,454
Commercial mortgage-backed securities		128,220		2,391		(755	)		129,856
Other asset-backed securities		80,484		456		(304	)		80,636
Total fixed-maturity securities(1)		2,051,624		45,054		(7,976	)		2,088,702
Short-term investments		8,230		-		-			8,230
Total fixed-maturity and short-term investments	$	2,059,854	$	45,054	$	(7,976	)	$	2,096,932

⁽¹⁾ Includes $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 (loss).

	December 31, 2018
	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	$	12,115	$	176	$	(58	)	$	12,233
Foreign government		155,723		3,347		(958	)		158,112
States and political subdivisions		59,075		1,202		(271	)		60,006
Corporates		1,447,075		11,916		(24,773	)		1,434,218
Residential mortgage-backed securities		191,245		2,439		(1,733	)		191,951
Commercial mortgage-backed securities		131,279		1,712		(1,636	)		131,355
Other asset-backed securities		82,310		205		(755	)		81,760
Total fixed-maturity securities(1)		2,078,822		20,997		(30,184	)		2,069,635
Short-term investments		8,171		-		-			8,171
Total fixed-maturity and short-term investments	$	2,086,993	$	20,997	$	(30,184	)	$	2,077,806

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

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 as of March 31, 2019 was as follows:

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	Amortized cost		Fair value
	(In thousands)
Due in one year or less	$	195,958	$	197,079
Due after one year through five years		880,992		896,193
Due after five years through 10 years		504,736		514,884
Due after 10 years		60,975		66,600
		1,642,661		1,674,756
Mortgage- and asset-backed securities		408,963		413,946
Total AFS fixed-maturity securities	$	2,051,624	$	2,088,702

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:

	March 31, 2019			December 31, 2018
	(In thousands)
Net unrealized investment gains (losses) on available-for-sale securities   including OTTI:
Available-for-sale securities	$	37,078		$	(9,187	)
OTTI		134			147
Net unrealized investment gains (losses) on available-for-sale securities   excluding OTTI		37,212			(9,040	)
Deferred income taxes		(8,190	)		1,787
Net unrealized investment gains (losses) on available-for-sale securities  excluding OTTI, net of tax	$	29,022		$	(7,253	)

Trading Securities. The cost and fair value of the fixed-maturity securities classified as trading securities were as follows:

	March 31, 2019				December 31, 2018
	Cost		Fair value		Cost		Fair value
	(In thousands)
Fixed-maturity securities	$	26,502	$	26,556	$	13,597	$	13,610

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 condensed consolidated financial statements.

The LLC Note is classified as a fixed-maturity held-to-maturity security in the Company’s invested asset portfolio as we have the positive intent and ability to hold the security until maturity. As of March 31, 2019, the LLC Note, which was rated A+ by Fitch Ratings, had an estimated unrealized holding gain of $22.3 million based on its amortized cost and estimated fair value. The estimated fair value of the LLC Note is expected to be at least equal to the estimated fair value of the offsetting Surplus Note. See Note 4 (Fair Value of Financial Instruments) for information on the fair value of our financial instruments and 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 $7.7 million and $10.1 million as of March 31, 2019 and December 31, 2018, respectively.

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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 $64.9 million and $52.6 million as of March 31, 2019 and December 31, 2018, respectively.

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

	Three months ended March 31,
	2019			2018
	(In thousands)
Fixed-maturity securities (available-for-sale)	$	20,333		$	19,288
Fixed-maturity security (held-to-maturity)		10,674			8,373
Equity securities		487			513
Policy loans and other invested assets		320			279
Cash and cash equivalents		1,203			718
Total return on deposit asset underlying 10% coinsurance   agreement(1)		3,902			(107	)
Gross investment income		36,919			29,064
Investment expenses		(2,134	)		(1,674	)
Investment income net of investment expenses		34,785			27,390
Interest expense on surplus note		(10,674	)		(8,373	)
Net investment income	$	24,111		$	19,017

⁽¹⁾ Includes $2.1 million and $(1.3) million of net gains (losses) recognized for the change in fair value of the deposit asset underlying the 10% coinsurance agreement for the three months ended March 31, 2019 and 2018, respectively.

The components of net realized investment gains (losses) recognized in net income as well as details on gross realized investment gains and losses were as follows:

	Three months ended March 31,
	2019			2018
	(In thousands)
Net realized investment gains (losses):
Gross gains from sales of available-for-sale securities	$	178		$	383
Gross losses from sales of available-for-sale securities		(243	)		(18	)
OTTI losses of available-for-sale securities		-			(49	)
Net gains (losses) recognized in net income during   the period on equity securities		2,901			(1,945	)
Gains (losses) from bifurcated options		-			(27	)
Gains (losses) on trading securities		11			-
Net realized investment gains (losses)		2,847			(1,656	)

The proceeds from sales or other redemptions of available-for-sale securities were as follows:

	Three months ended March 31,
	2019		2018
	(In thousands)
Proceeds from sales or other redemptions	$	115,439	$	119,982

The components of net gains (losses) recognized in net income on equity securities still held as of period-end were as follows:

	Three months ended March 31,
	2019			2018
	(In thousands)
Net gains (losses) recognized on equity securities	$	2,901		$	(1,945	)
Less: Net gains (losses) recognized on equity securities sold		(254	)		-
Net gains (losses) recognized in net income on equity   securities still held as of period-end	$	3,155		$	(1,945	)

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 security is impaired if its fair value falls below its cost. Factors considered in

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determining whether an impairment 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 issuer, 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. We also consider our anticipated sources of cash to fund operating activities and share repurchases when assessing our ability and intent to hold invested assets to allow for the recovery of cost basis in determining whether to recognize OTTI related to such invested assets.

The amortized cost of available-for-sale fixed-maturity securities with a cost basis in excess of their fair values were $606.6 million and $1,239.6 million as of March 31, 2019 and December 31, 2018, 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:

	March 31, 2019
	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	$	121	$	0			1	$	6,098	$	(40	)		6
Foreign government		1,531		(4	)		1		23,679		(174	)		27
States and political subdivisions		-		-			-		19,105		(124	)		17
Corporates		51,358		(713	)		40		327,399		(5,362	)		276
Residential mortgage-backed securities		5,969		(14	)		6		50,620		(486	)		29
Commercial mortgage-backed securities		3,119		(11	)		5		70,052		(744	)		69
Other asset-backed securities		7,713		(48	)		20		31,908		(256	)		42
Total fixed-maturity securities	$	69,811	$	(790	)			$	528,861	$	(7,186	)

	December 31, 2018
	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	$	1,668	$	(10	)		1	$	4,541	$	(48	)		6
Foreign government		7,326		(170	)		7		52,086		(788	)		54
States and political subdivisions		2,644		(9	)		3		23,324		(262	)		20
Corporates		489,880		(10,649	)		396		360,516		(14,124	)		321
Residential mortgage-backed securities		32,725		(86	)		14		71,308		(1,647	)		41
Commercial mortgage-backed securities		31,129		(173	)		20		78,911		(1,463	)		77
Other asset-backed securities		19,363		(184	)		35		33,989		(571	)		41
Total fixed-maturity securities		584,735		(11,281	)				624,675		(18,903	)

As of March 31, 2019, the unrealized losses on our available-for-sale security portfolio were largely caused by interest rate sensitivity and, to a lesser extent, 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.  

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

	March 31, 2019				December 31, 2018
	Amortized cost		Fair value		Amortized cost		Fair value
	(In thousands)
Fixed-maturity securities in default	$	3	$	227	$	3	$	227

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

	Three months ended March 31,
	2019		2018
	(In thousands)
OTTI on fixed-maturity securities not in default	$	-	$	49
OTTI on fixed-maturity securities in default		-		-
OTTI on equity securities		-		-
Total OTTI recognized in earnings	$	-	$	49

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No OTTI was recognized during the three months ended March 31, 2019 as we sold all securities that were identified during the period as other-than-temporarily impaired prior to March 31, 2019. Losses realized upon the sale of impaired securities were recognized in the gross losses from sales of available-for-sale securities component of net realized investment gains (losses).

OTTI recognized in earnings for available-for-sale securities were as follows:

	Three months ended March 31,
	2019		2018
	(In thousands)
Total OTTI 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	$	-	$	49
Less portion of OTTI recognized in accumulated other    comprehensive income (loss)		-		-
OTTI 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		-		49
OTTI recognized in earnings for securities which the    Company intends to sell or more-likely-than-not will be    required to sell before recovery		-		-
OTTI recognized in earnings	$	-	$	49

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

	Three months ended March 31,
	2019			2018
	(In thousands)
Cumulative OTTI recognized in net income for securities still      held, beginning of period	$	2,511		$	4,346
Additions for securities where no OTTI were recognized      prior to the beginning of the period		-			-
Additions for securities where OTTI have been recognized      prior to the beginning of the period		-			49
Reductions due to sales, maturities, calls, amortization or      increases in cash flows expected to be collected over the      remaining life of credit-impaired securities		(44	)		(97	)
Reductions for exchanges of securities previously impaired		-			-
Cumulative OTTI recognized in net income for securities      still held, end of period	$	2,467		$	4,298

As of March 31, 2019, no cumulative impairment losses have been recognized on the LLC Note held-to-maturity security.

Derivatives. 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 (loss) was $26.4 million as of March 31, 2019 and December 31, 2018. 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.

(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. Invested assets recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on 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 levels:

• Level 1. Quoted prices for identical instruments in active markets. Level 1 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 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 and yield curves, credit spread, and foreign exchange rates. All significant inputs are

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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; and certain mortgage- and asset-backed securities; and

• Level 3. Valuations derived from valuation techniques in which one or more significant inputs 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 mortgage-and asset-backed securities and equity 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 in the hierarchy) 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:

	March 31, 2019
	Level 1		Level 2		Level 3		Total
	(In thousands)
Fair value assets:
Available-for-sale fixed-maturity securities:
U.S. government and agencies	$	-	$	11,954	$	-	$	11,954
Foreign government		-		161,507		-		161,507
States and political subdivisions		-		69,724		-		69,724
Corporates		3,119		1,428,449		3		1,431,571
Residential mortgage-backed securities		-		203,269		185		203,454
Commercial mortgage-backed securities		-		129,856		-		129,856
Other asset-backed securities		-		80,636		-		80,636
Short-term investments		-		8,230		-		8,230
Total available-for-sale securities		3,119		2,093,625		188		2,096,932
Equity securities		36,630		1,025		193		37,848
Trading securities		-		26,556		-		26,556
Separate accounts		-		2,368,760		-		2,368,760
Total fair value assets	$	39,749	$	4,489,966	$	381	$	4,530,096
Fair value liabilities:
Separate accounts	$	-	$	2,368,760	$	-	$	2,368,760
Total fair value liabilities	$	-	$	2,368,760	$	-	$	2,368,760

	December 31, 2018
	Level 1		Level 2		Level 3		Total
	(In thousands)
Fair value assets:
Available-for-sale fixed-maturity securities:
U.S. government and agencies	$	-	$	12,233	$	-	$	12,233
Foreign government		-		158,112		-		158,112
States and political subdivisions		-		60,006		-		60,006
Corporates		2,869		1,431,346		3		1,434,218
Residential mortgage-backed securities		-		191,720		231		191,951
Commercial mortgage-backed securities		-		131,355		-		131,355
Other asset-backed securities		-		81,259		501		81,760
Short-term investments		-		8,171		-		8,171
Total available-for-sale securities		2,869		2,074,202		735		2,077,806
Equity securities		36,473		1,020		186		37,679
Trading securities		-		13,610		-		13,610
Separate accounts		-		2,195,501		-		2,195,501
Total fair value assets	$	39,342	$	4,284,333	$	921	$	4,324,596
Fair value liabilities:
Separate accounts	$	-	$	2,195,501	$	-	$	2,195,501

In estimating fair value of our investments, we use a third-party pricing service for 95% 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

15

quality rating), liquidity and yield based on quality rating, average life and U.S. Treasury yields. All observable data inputs are corroborated by independent third-party data. We also corroborate pricing information provided by our third-party pricing service 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 as of 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 one or more of these input 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 U.S. 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 March 31, (1)
	2019			2018
	(In thousands)
Level 3 assets, beginning of period	$	921		$	567
Net unrealized gains (losses) included in other    comprehensive income		(6	)		(9	)
Realized gains (losses) and accretion (amortization)    recognized in earnings, including OTTI		8			18
Settlements		(44	)		(41	)
Transfers into Level 3		-			-
Transfers out of Level 3 (2)		(498	)		-
Level 3 assets, end of period	$	381		$	535

(1) Activities 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 months ended March 31, 2019, transfers out of Level 3 assets primarily consisted of newly issued fixed-maturity securities in the 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. There were no material transfers between Level 1 and Level 3 during the three months ended March 31, 2019 and 2018.

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The carrying values and estimated fair values of our financial instruments were as follows:

	March 31, 2019				December 31, 2018
	Carrying value		Estimated fair value		Carrying value		Estimated fair value
	(In thousands)
Assets:
Fixed-maturity securities (available-for-sale)	$	2,088,702	$	2,088,702	$	2,069,635	$	2,069,635
Fixed-maturity security (held-to-maturity) (3)		1,036,110		1,058,428		970,390		945,331
Short-term investments (available-for-sale)		8,230		8,230		8,171		8,171
Equity securities		37,848		37,848		37,679		37,679
Trading securities		26,556		26,556		13,610		13,610
Policy loans (3)		30,783		30,783		31,501		31,501
Deposit asset underlying 10% coinsurance agreement (3)		230,982		230,982		228,974		228,974
Separate accounts		2,368,760		2,368,760		2,195,501		2,195,501
Liabilities:
Notes payable (1)  (2)	$	373,755	$	394,025	$	373,661	$	384,909
Surplus note (1)  (3)		1,035,421		1,058,428		969,685		945,331
Separate accounts		2,368,760		2,368,760		2,195,501		2,195,501

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

(2) Classified as a level 2 fair value measurement.

(3) Classified as a level 3 fair value measurement.

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.

Financial Instruments Recognized at Fair Value in the Balance Sheet. Estimated fair values of investments in available-for-sale fixed-maturity securities and short-term investments 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 and 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.

(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 were as follows:

	March 31, 2019			December 31, 2018
	(Dollars in thousands)
Direct life insurance in force	$	788,457,365		$	783,979,673
Amounts ceded to other companies		(685,589,156	)		(682,708,797	)
Net life insurance in force	$	102,868,209		$	101,270,876
Percentage of reinsured life insurance in force		87	%		87	%

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Reinsurance recoverables includes ceded reserve balances and ceded claim liabilities. Reinsurance recoverables and financial strength ratings by reinsurer were as follows:

	March 31, 2019			December 31, 2018
	Reinsurance recoverables		A.M. Best rating	Reinsurance recoverables		A.M. Best rating
	(In thousands)
Pecan Re Inc. (1) (2)	$	2,756,881	NR	$	2,701,326	NR
SCOR Global Life Reinsurance Companies (3)		348,834	A+		348,109	A+
Munich Re of Malta (2) (5)		282,407	NR		276,154	NR
Swiss Re Life & Health America Inc. (4)		229,459	A+		234,643	A+
American Health and Life Insurance Company (2)		170,431	B+		170,628	B+
Munich American Reassurance Company		117,068	A+		114,604	A+
Korean Reinsurance Company		104,462	A		104,101	A
RGA Reinsurance Company		91,554	A+		90,989	A+
Hannover Life Reassurance Company		31,037	A+		31,729	A+
TOA Reinsurance Company		26,089	A		25,434	A
All other reinsurers		44,681	-		43,852	-
Reinsurance recoverables	$	4,202,903		$	4,141,569

NR – not rated

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

⁽²⁾ Reinsurance recoverables 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 recoverables 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 fully retroceded to Swiss Re Life & Health America Inc.

⁽⁵⁾ This entity is rated AA- by S&P.

Benefits and claims ceded to reinsurers during the three months ended March 31, 2019 and 2018 were $332.6 million and $340.3 million, respectively.

(6) Policy Claims and Other Benefits Payable

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

	Three months ended March 31,
	2019			2018
	(In thousands)
Policy claims and other benefits payable, beginning of period	$	313,862		$	307,401
Less reinsured policy claims and other benefits payable		318,653			322,137
Net balance, beginning of period		(4,791	)		(14,736	)
Incurred related to current year		47,973			47,787
Incurred related to prior years (1)		(2,095	)		(2,250	)
Total incurred		45,878			45,537
Claims paid related to current year, net of reinsured policy claims received		(135,225	)		(143,302	)
Reinsured policy claims received related to prior years, net of claims paid		13,795			23,287
Total paid		(121,430	)		(120,015	)
Foreign currency translation		160			(167	)
Net balance, end of period		(80,183	)		(89,381	)
Add reinsured policy claims and other benefits payable		388,605			397,700
Balance, end of period	$	308,422		$	308,319

⁽¹⁾ Includes the difference between our estimate of claims incurred but not yet reported as of 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 reported lag time experience.

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(7) Stockholders’ Equity

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

	Three months ended March 31,
	2019			2018
	(In thousands)
Common stock, beginning of period		42,694			44,251
Shares issued for stock options exercised		-			-
Shares of common stock issued upon lapse of restricted stock units (“RSUs”)		231			223
Common stock retired		(526	)		(521	)
Common stock, end of period		42,399			43,953

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 March 31, 2019, we had a total of 473,128 RSUs and 92,108 PSUs outstanding. The PSU outstanding balance is based on the targeted number of PSUs granted pursuant to the award agreement; however, the actual number of PSUs that vest could be higher or lower based on actual versus targeted performance. See Note 9 (Share-Based Transactions) for discussion of the PSU award structure.

On February 7, 2019, our Board of Directors authorized a share repurchase program for up to $275.0 million of our outstanding common stock for purchases through June 30, 2020 (the “share repurchase program”). Under the share repurchase program, we repurchased 473,138 shares of our common stock in the open market for an aggregate purchase price of $53.6 million through March 31, 2019. Approximately $221.4 million remains available for repurchases of our outstanding common stock under the share repurchase program as of March 31, 2019.

(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.

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The calculation of basic and diluted EPS was as follows:

	Three months ended March 31,
	2019			2018
	(In thousands, except per-share amounts)
Basic EPS:
Numerator:
Net income	$	79,165		$	65,715
Income attributable to unvested participating securities		(401	)		(425	)
Net income used in calculating basic EPS	$	78,764		$	65,290
Denominator:
Weighted-average vested shares		42,824			44,740
Basic EPS	$	1.84		$	1.46
Diluted EPS:
Numerator:
Net income	$	79,165		$	65,715
Income attributable to unvested participating securities		(400	)		(424	)
Net income used in calculating diluted EPS	$	78,765		$	65,291
Denominator:
Weighted-average vested shares		42,824			44,740
Dilutive effect of incremental shares to be issued for    contingently-issuable shares		118			115
Weighted-average shares used in calculating diluted EPS		42,942			44,855
Diluted EPS	$	1.83		$	1.46

(9) Share-Based Transactions

The Company has outstanding equity awards under the Primerica, Inc. Second Amended and Restated 2010 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, and stock payment awards, as well as cash-based awards. In addition to time-based vesting requirements, awards granted under the OIP may also be subject to specified performance criteria. Since 2010, the Company has issued equity awards under the OIP to our management (officers and other key employees), non-employees who serve on our Board of Directors, and sales force leaders. For more information on equity awards granted under the OIP, see Note 14 (Share-Based Transactions) to our consolidated financial statements within our 2018 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. We defer and amortize the fair value of equity awards granted to the sales force in the same manner as other deferred policy acquisition costs for those awards that 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. All equity awards granted to the sales force that are not directly related to the successful acquisition of life insurance policies are recognized as expense as incurred, which is in the quarter granted and earned.

The impacts of equity awards granted are as follows:

	Three months ended March 31,
	2019		2018
	(In thousands)
Total equity awards expense recognized	$	10,883	$	11,502
Quarterly incentive awards expense deferred		2,279		2,494

On February 26, 2019, the Compensation Committee of our Board of Directors granted the following equity awards to employees as part of the annual approval of management incentive compensation:

• 73,817 RSUs awarded to management with a measurement-date fair value of $122.62 per unit that have time-based vesting requirements with equal and annual graded vesting over approximately three years subsequent to the grant date.

• 25,483 PSUs awarded under the OIP to our four top executives with a measurement-date fair value of $122.62 per unit. The PSUs will be earned on March 1, 2022 contingent upon the Company achieving a targeted annual average three-year return on adjusted equity (“ROAE”) for the period from January 1, 2019 through December 31, 2021. The actual number of common shares that will be issued will vary based on the actual ROAE relative to the targeted ROAE and can range from zero to 38,224 shares.  

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All awards granted to employees on February 26, 2019 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, 2021, 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 expiring on December 31, 2025. As of March 31, 2019, the amount of the LOC outstanding was $288.1 million. This amount will decline over the remaining term of the LOC to correspond with declines in the Regulation XXX reserves. As of March 31, 2019, the Company was in compliance with all financial covenants under the Credit Facility Agreement.

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 2018 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 unclaimed property audits by 30 jurisdictions, currently 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 (loss) (“OCI”), including the income tax expense or benefit allocated to each component, were as follows:

	Three months ended March 31,
	2019		2018
	(In thousands)
Foreign currency translation adjustments:
Change in unrealized foreign currency translation gains (losses)    before income taxes	$	6,167	$	(8,401	)
Income tax expense (benefit) on unrealized foreign currency   translation gains (losses)		-		-
Change in unrealized foreign currency translation gains   (losses), net of income taxes	$	6,167	$	(8,401	)
Unrealized gain (losses) on available-for-sale securities:
Change in unrealized holding gains (losses) arising during    period before income taxes	$	46,200	$	(32,343	)
Income tax expense (benefit) on unrealized holding gains   (losses) arising during period		9,965		(6,850	)
Change in unrealized holding gains (losses) on available-for-sale   securities arising during period, net of income taxes		36,235		(25,493	)
Reclassification from accumulated OCI to net income for (gains)   losses realized on available-for-sale securities		65		(316	)
Income tax (expense) benefit on (gains) losses reclassified from   accumulated OCI to net income		14		(66	)
Reclassification from accumulated OCI to net income for (gains)   losses realized on available-for-sale securities, net of income   taxes		51		(250	)
Change in unrealized gains (losses) on available-for-sale   securities, net of income taxes and reclassification adjustment	$	36,286	$	(25,743	)

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(12) Debt

Notes Payable. As of March 31, 2019, the Company had $375.0 million of publicly-traded, senior unsecured notes (the “Senior Notes”), with an annual interest rate of 4.75% that are scheduled to mature on July 15, 2022. As of March 31, 2019, we were in compliance with the covenants of the Senior Notes. No events of default occurred on the Senior Notes during the three months ended March 31, 2019.

Further discussion on the Company’s Senior Notes is included in Note 10 (Debt) to our consolidated financial statements within our 2018 Annual Report.

Surplus Note. As of March 31, 2019, the principal amount outstanding on the Surplus Note issued by Vidalia Re was $1.0 billion, which is equal to the principal amount of the LLC Note. The principal amount of both the Surplus Note and the LLC Note will fluctuate over time to coincide with the amount of policy reserves being 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%. Based on the estimated reserves for policies issued in 2011 through 2017 that have been ceded under the Vidalia Re Coinsurance Agreement, the principal amounts of the Surplus Note and the LLC Note are expected to reach $1.5 billion each. This financing arrangement is 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 LLC Note’s credit enhancement feature. The Parent Company has agreed to support Vidalia Re’s obligation to pay the credit enhancement fee incurred on the LLC Note.

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 2018 Annual Report.

Revolving Credit Facility. We maintain an unsecured $200.0 million revolving credit facility (“Revolving Credit Facility”) with a syndicate of commercial banks that has a scheduled termination date of December 19, 2022. Amounts outstanding under the Revolving Credit Facility bear interest at a periodic rate equal to LIBOR or the base rate, plus in either case an applicable margin. The Revolving Credit Facility also permits the issuance of letters of credit.  The applicable margins are based on our debt rating with such margins for LIBOR rate loans and letters of credit ranging from 1.125% to 1.625% per annum and for base rate loans ranging from 0.125% to 0.625% per annum. Under the Revolving Credit Facility, we incur a commitment fee that is payable quarterly in arrears and is determined by our debt rating. This commitment fee ranges from 0.125% to 0.225% per annum of the aggregate $200.0 million commitment of the lenders under the Revolving Credit Facility. As of March 31, 2019, no amounts have been drawn under the Revolving Credit Facility and we were in compliance with its covenants.  Furthermore, no events of default have occurred under the Revolving Credit Facility during the three months ended March 31, 2019.

(13) Revenue from Contracts with Customers

Our revenues from contracts with customers primarily include:

• Commissions and fees earned for the marketing and distribution of investment and savings products underwritten by mutual fund companies and annuity providers. For purposes of revenue recognition, mutual fund companies and annuity providers are considered the customers in marketing and distribution arrangements.

• Fees earned for investment advisory and administrative services within our managed investments programs.

• Account-based fees for transfer agent recordkeeping functions and non-bank custodial services.

• Fees associated with the distribution of other third-party financial products.  

• Other revenue from the sale of miscellaneous products and services including monthly subscription fees from the sales representatives for access to Primerica Online (“POL”), our primary sales force support tool.

Premiums from insurance contracts we underwrite, fees received from segregated funds insurance contracts, and income earned on our invested assets are excluded from the definition of revenues from contracts with customers in accordance with U.S. GAAP.

Further discussion on the Company’s revenues from contracts with customers and revenue recognition policies are included in Note 18 (Revenue from Contracts with Customers) to our consolidated financial statements within our 2018 Annual Report.

The disaggregation of our revenues from contracts with customers were as follows:

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	Three months ended March 31,
	2019		2018
	(In thousands)
Term Life Insurance segment revenues:
Other, net	$	9,744	$	10,415
Total segment revenues from contracts with customers		9,744		10,415
Revenues from sources other than contracts with customers		287,099		259,894
Total Term Life Insurance segment revenues	$	296,843	$	270,309
Investment and Savings Products segment revenues:
Commissions and fees
Sales-based revenues	$	66,997	$	64,461
Asset-based revenues		59,754		59,540
Account-based revenues		19,613		20,595
Other, net		2,423		2,336
Total segment revenues from contracts with customers		148,787		146,932
Revenues from sources other than contracts     with customers (segregated funds)		13,885		15,109
Total Investment and Savings Products segment revenues	$	162,672	$	162,041
Corporate and Other Distributed Products segment revenues:
Commissions and fees (1)	$	7,066	$	7,122
Other, net		1,056		1,146
Total segment revenues from contracts with customers		8,122		8,268
Revenues from sources other than contracts with customers		27,350		19,305
Total Corporate and Other Distributed Products segment revenues	$	35,472	$	27,573

⁽¹⁾ Commissions and fees for the three months ended March 31, 2019 include $1.1 million attributable to performance obligations satisfied in a previous reporting period and represent the collection of variable consideration in the transaction price that had been previously constrained.

We recognize revenue upon the satisfaction of the related performance obligation, unless the transaction price includes variable consideration that is constrained; in such case, we recognize revenue when the uncertainty associated with the constrained amount is subsequently resolved. Variable consideration is not treated as constrained to the extent it is probable that no significant reversal in the amount of cumulative revenue recognized will occur when the uncertainty associated with the variable consideration is resolved. We have no material obligations for refunds of commission and fees on contracts with customers subsequent to completion of our performance obligation.

Contract Balances. For revenue associated with ongoing renewal commissions we receive subsequent to the satisfaction of our performance obligation, we record a contract asset for the amount of ongoing renewal commissions we anticipate collecting in reporting periods subsequent to the sale or referral, less amounts that are constrained in other assets. The contract asset is reduced for commissions that are billed and become due receivables from product providers during the reporting period.

Activity in the contract asset account was as follows:

	Three months ended March 31,
	2019				2018
	(In thousands)
Balance, beginning of period	$	50,119		(1)	$	48,533
Current period sales, net of collection of renewal commissions		(28	)			(120	)
Balance, at the end of period	$	50,091			$	48,413

⁽¹⁾ Reclassed to Other assets from Agent balances, due premiums and other receivables in the accompanying Condensed Consolidated Balance Sheets to conform with current year reporting.

No significant estimate adjustments were made to the contract asset and no impairment losses were recognized on the contract asset during the three months ended March 31, 2019.

Incremental costs to obtain or fulfill contracts, most notably sales commissions to the sales representatives, are not incurred prior to the recognition of the related revenue. Therefore, we have no assets recognized for incremental costs to obtain or fulfill contracts.

(14) Leases

We have operating leases for our executive office operations and other real estate leases of office space and finance leases for certain office equipment. Our leases have remaining lease terms of 1 year to 12 years, some of which include options to extend the leases for

23

up to 10 years, and some of which include options to terminate the leases within 1 year, exercisable at the Company’s discretion. Operating lease right-of-use assets and operating lease liabilities are presented separately in our condensed consolidated balance sheets.  As of March 31, 2019, finance right-of-use assets of $0.7 million and finance lease liabilities of $0.8 million were recorded within other assets and other liabilities, respectively, within our condensed consolidated balance sheets. The Company determines its lease liabilities, which are measured at the present value of future lease payments, using the Company’s incremental secured borrowing rate that is commensurate with the term of the underlying lease or the rate implicit in the lease if readily determinable.

The components of lease expense were as follows:

	Three months ended March 31,
	2019
	(In thousands)
Operating lease cost
Operating lease cost	$	1,914
Variable lease cost (includes taxes, common area maintenance and insurance)	$	156
Finance lease cost
Depreciation of finance lease assets	$	69
Interest on lease liabilities		10
Total lease cost	$	2,149

Other information related to leases was as follows:

	Three months ended March 31,
	2019
	(In thousands)
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases (1)	$	1,880
Operating cash flows from finance leases (1)		12
Financing cash flows from finance leases		70
	March 31, 2019
Weighted Average Remaining Lease Term
Operating leases	9  years
Finance leases	3  years
Weighted Average Discount Rate
Operating leases		5.4	%
Finance leases		4.6	%

⁽¹⁾Included in change in other operating assets and liabilities, net in the accompanying condensed consolidated statements of cash flows.

Future minimum lease payments under non-cancellable leases were as follows:

		Operating Leases		Finance Leases
Year Ended December 31,		(In thousands)
2019  (excluding the three months ended March 31, 2019)		$	5,681	$	233
	2020		7,254		287
	2021		7,124		232
	2022		7,189		64
	2023		7,195		4
Thereafter			35,650		-
Total minimum rental commitments for operating leases			70,093		820
Less imputed interest			13,381		57
Total lease liabilities		$	56,712	$	763

The following disclosures for the comparative periods presented in accordance with ASC 840 have been carried forward.

Total minimum rent expense for operating leases for the three months ended March 31, 2018 was $1.8 million. We had no contingent rent expense during the three months ended March 31, 2018.

As of December 31, 2018, the minimum aggregate rental commitments for operating leases were as follows:

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		December 31, 2018
		(In thousands)
	2019	$	7,459
	2020		7,174
	2021		7,038
	2022		7,120
	2023		7,094
Thereafter			34,901
Total minimum rental commitments for operating leases		$	70,786

As of December 31, 2018, the aggregate balance of our capital lease liabilities was not material.

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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, 2018 to March 31, 2019. 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, 2018 (“2018 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 2018 Annual 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 provider of financial products to middle-income households in the United States and Canada through a network of independent contractor sales representatives (“sales representatives” or “sales force”). 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 underwrite 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”). Policies remain in force until the expiration of the coverage period or until the policyholder ceases to make premium payments. Our in-force term life 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 typically remain level during the initial term period, 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 funds, managed investments, variable annuity, and fixed annuity products of several third-party companies. We provide investment advisory and administrative services for client assets invested in our managed investments program. We also perform distinct transfer agent recordkeeping services and non-bank custodial services for investors purchasing certain mutual funds we distribute. 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-party companies through the independent 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 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

26

customers’ perception of the strength of the capital markets may influence their decisions to invest in the investment and savings products we distribute.

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. As a result, changes in the Canadian dollar exchange rate may significantly affect the result of our business for all amounts translated and reported in U.S. dollars. The effects of these trends and conditions are discussed below and in the Results of Operations section.

Size of the Independent Sales Force.

Our ability to increase the size of the independent sales force (“sales representatives” or “sales force”) is largely based on the success of the 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. Changes in the number of new recruits do not always result in commensurate changes in the size of the licensed 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 March 31,
	2019		2018
New recruits		63,223		76,230
New life-licensed sales representatives		10,065		11,730

New recruits decreased during the three months ended March 31, 2019 compared to the same period in 2018 as we experienced a slowed momentum phase in the recruiting cycle after a sustained period of growth prior to 2019.

New life-licensed sales representatives decreased during the three months ended March 31, 2019 compared to the same period in 2018 as it largely followed the trend of slower recruiting momentum.

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

	March 31, 2019		December 31, 2018
Life-licensed sales representatives		129,821		130,736

The size of the life-licensed sales representatives remained relatively unchanged as of March 31, 2019 compared to December 31, 2018 primarily as the number of new life-licensed representatives were offset by non-renewals during the first quarter of 2019.

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 March 31,
	2019		2018
Average number of life-licensed sales representatives		130,117		126,361
Number of new policies issued		64,242		70,821
Average monthly rate of new policies issued per life-licensed    sales representative		0.16		0.19

The slowdown in momentum also contributed to the decline in productivity and new life insurance policies issued during the three months ended March 31, 2019 versus the comparable period in 2018. Productivity, measured by the average monthly rate of new policies issued per life-licensed sales representative, during the three months ended March 31, 2019 was lower than the comparable period in 2018 and was below our typical experience range.

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

	Three months ended March 31,
	2019			% of beginning balance			2018			% of beginning balance
	(Dollars in millions)
Face amount in force, beginning of period	$	781,041					$	763,831
Net change in face amount:
Issued face amount		20,925			3	%		22,258			3	%
Terminations		(18,383	)		(2	)%		(17,788	)		(2	)%
Foreign currency		1,969		*				(2,570	)	*
Net change in face amount		4,511			1	%		1,900		*
Face amount in force, end of period	$	785,552					$	765,731

* Less than 1%.

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The face amount of term life policies in force increased 3% as of March 31, 2019 compared to the same period in 2018 as the level of face amount issued continued to exceed the face amount of terminations.  As a percentage of the beginning face amount in force, issued face amount as well as terminated face amount during the three months ended March 31, 2019 remained consistent with the comparable period. The strengthening of the Canadian dollar spot rate relative to the U.S. dollar during the three months ended March 31, 2019 also contributed to the increase in face amount.

Investment and Savings Products Sales, Asset Values and Accounts/Positions.

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

	Three months ended March 31,				Change
	2019		2018		$			%
	(Dollars in millions)
Product sales:
Retail mutual funds	$	954	$	1,068	$	(114	)		(11	)%
Annuities and other		547		444		103			23	%
Total sales-based revenue generating product sales		1,501		1,512		(11	)		(1	)%
Managed investments		162		189		(27	)		(14	)%
Segregated funds and other		94		82		12			15	%
Total product sales	$	1,757	$	1,783	$	(26	)		(1	)%
Average client asset values:
Retail mutual funds	$	37,657	$	38,183	$	(526	)		(1	)%
Annuities and other		18,240		18,272		(32	)	*
Managed investments		3,241		2,739		502			18	%
Segregated funds		2,314		2,510		(196	)		(8	)%
Total average client asset values	$	61,452	$	61,704	$	(252	)	*

* Less than 1%.

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

	Three months ended March 31,
	2019			% of beginning balance			2018			% of beginning balance
	(Dollars in millions)
Asset values, beginning of period	$	57,704					$	61,167
Net change in asset values:
Inflows		1,757			3	%		1,783			3	%
Redemptions		(1,530	)		(3	)%		(1,571	)		(3	)%
Net flows		227		*				212		*
Change in fair value, net		5,470			9	%		(276	)	*
Foreign currency, net		201		*				(283	)	*
Net change in asset values		5,898			10	%		(347	)		(1	)%
Asset values, end of period	$	63,602					$	60,820

* Less than 1%.

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Average number of fee-generating positions was as follows:

	Three months ended March 31,				Change
	2019		2018		Positions			%
	(Positions in thousands)
Average number of fee-generating    positions (1):
Recordkeeping and custodial		1,998		2,130		(132	)		(6	)%
Recordkeeping only		641		665		(24	)		(4	)%
Total average number of fee-    generating positions		2,639		2,795		(156	)		(6	)%

⁽¹⁾  We receive recordkeeping fees by mutual fund positions. An individual client account may include multiple mutual fund positions. We may also receive fees, which are earned on a per account basis, 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/Positions during the Three Months Ended March 31, 2019

Product sales. Investment and savings products sales decreased during the three months ended March 31, 2019 compared to the three months ended March 31, 2018 due to lower demand for retail mutual fund products as a result of recent market volatility, in particular lower equity prices at the end of 2018 and the beginning of 2019.  As the current year period progressed, positive movements in the equity markets led to an increase in demand for retail mutual funds.  Partially offsetting the year over year decrease in mutual fund sales was an increase in annuity sales as a result of continued demand within the industry for products with guarantees.

Average client asset values. Although equity market trends were generally positive during the first quarter of 2019 and managed account client assets values continued to grow as a result of the rollout of the Lifetime Investments Platform, average client asset values decreased during the three months ended March 31, 2019 compared to the three months ended March 31, 2018 due to lower equity market levels at the end of 2018 and the beginning of 2019.

Rollforward of client asset values. The increase in client asset values during the three months ended March 31, 2019 was primarily due to positive market performance during the first quarter of 2019 and continued inflows from product sales, which outpaced redemptions.

Average number of fee-generating positions. The average number of fee-generating positions decreased during the three months ended March 31, 2019 compared to the three months ended March 31, 2018 primarily due to the completed transition of our clients’ managed investments from Freedom Portfolios, for which we earned transfer agent recordkeeping fees and custodial fees, to the Lifetime Investments Platform, for which we do not earn transfer agent recordkeeping fees or custodial fees.  Partially offsetting the impact from the managed account transition was an increase in the number of retail mutual fund positions for which we earn these fees.  With the transition of Freedom Portfolios to the Lifetime Investment Platform now complete, we will only earn transfer agent recordkeeping fees and custodial fees on retail mutual fund positions on our transfer agent recordkeeping platform.

Other business trends and conditions.

Regulatory changes can also impact our product sales. The Securities and Exchange Commission (“SEC”) proposed new regulations that include: (i) a new rule to establish a “best interest” standard of conduct for broker-dealers and their associated persons when making a recommendation of any securities transaction or investment strategy involving securities to a retail customer; (ii) new and amended rules and forms to require registered broker-dealers, investment advisers and their investment professionals to provide a relationship summary to retail investors; (iii) required disclosures in retail communications; and (iv) an SEC interpretation of the fiduciary standard of conduct for investment advisers (collectively, the “SEC Best Interest Proposal”). The SEC Regulatory Flexibility Agenda, released in December 2018, indicates that final action on the SEC Best Interest Proposal is expected to be taken in September 2019. Similarly, in Canada, the organization of provincial and territorial securities regulators (“Canadian Securities Administrators” or “CSA”) published a notice requesting public comment on reforms to obligations of registered firms and individuals to enhance conflict of interest mitigation rules (“Client Focused Reforms”). Because of the uncertain status of the rules, we have not determined the extent to which changes to our business would be necessary and are, therefore, unable to quantify the impact, if any, on our business, nor are we able to project the timing of the adoption of any such reforms or transition timeline.

In addition to federal regulators, certain states, including Nevada, New Jersey, and New York, have proposed or passed laws or proposed or issued regulations requiring investment advisers, broker-dealers, and/or insurance agents to meet fiduciary standards or standards of care that their advice be in the customer’s best interest, and to disclose conflicts of interest to consumers of investment and insurance products. The severity of the impact that such laws or regulations could have on our business vary from state to state depending on the content of the legislation or regulation and how it is applied by state regulators and interpreted by the courts. With respect to New York, which has issued its final regulations, we are making or will have made modest changes to our sales processes and do not anticipate any significant disruption to the business.  With respect to the other states, where there is significant uncertainty concerning what, if any, final rule will take effect, we cannot quantify the financial impact, if any, of any changes to our business that may be necessary in order to comply with such laws or regulations at this time.

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On September 13, 2018, the CSA published for comment proposed amendments that would prohibit upfront sales commissions by fund companies for the sale of mutual funds offered under a prospectus in Canada. The CSA has indicated that the prohibition of upfront sales commissions by fund companies will eliminate the use of the mutual fund deferred sales charge compensation model, which is the primary model for the mutual funds we distribute in Canada. These proposed amendments follow the June 21, 2018 publication of the CSA’s policy decision on embedded commissions and its proposed Client Focused Reforms. Under proposed enhanced conflict of interest rules in the Client Focused Reforms, all embedded commissions would be considered conflicts that must be addressed in the best interests of clients or avoided.  If such rules are adopted as currently proposed, changes in compensation arrangements with the fund companies that offer the mutual fund products we distribute in Canada will be necessary.

Factors Affecting Our Results

Term Life Insurance Segment. Our Term Life Insurance segment results are primarily driven by sales volumes, how closely actual experience matches 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 in a period will have a more immediate impact on our cash flows than on revenue and expense recognition in that period.

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 sales representatives generally remains within a range (i.e., an average monthly rate of new policies issued per life-licensed sales representative between 0.18 and 0.22). The volume of our term life insurance products sales will fluctuate in the short-term, but over the longer term, our sales volume will generally correlate to the size of the 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, disability rates, 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.

• Disability. Our profitability will fluctuate to the extent actual disability rates, including recovery rates for individuals currently disabled, differ from the assumptions that are locked-in at the time of issue or time of disability.

• 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.

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Reinsurance. We use reinsurance extensively, which has a significant effect on our results of operations. We have generally reinsured between 80% and 90% of the mortality risk on our term life insurance (excluding coverage under certain riders) on a quota share yearly renewable term (“YRT”) basis. 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. We administer all such policies subject to these coinsurance agreements. Beginning in 2017, policies reaching the end of their initial level term period are no longer ceded under the IPO coinsurance transactions.

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 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 coinsurers. 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 transfer agent recordkeeping positions and non-bank custodial fee-generating accounts we administer.

Sales. We earn commissions and fees, such as dealer re-allowances and marketing and distribution 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 the 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 the 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 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 and administrative fees on assets in managed investments. 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 transfer agent recordkeeping fees for administrative functions we perform on behalf of several of our mutual fund providers. An individual client account may include multiple fund positions for which we earn transfer agent recordkeeping fees. We may also receive fees earned for non-bank custodial services that we provide to clients with retirement plan accounts.

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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 spread the revenues generated over time because we earn higher revenues based on assets under management for these accounts each period as opposed to earning upfront revenues based on product sales; and

• sales of a higher proportion of mutual fund products sold will impact the timing and amount of revenue we earn given the distinct transfer agent recordkeeping and non-bank custodial services we provide for certain 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 NBLIC.

Corporate and Other Distributed Products segment net investment income reflects actual net investment income recognized 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 also includes 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 Savings Products segments), interest expense on notes payable, redundant reserve financing transactions and our revolving credit facility, 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”), redundant reserve financing transactions, our revolving credit facility, 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 2018 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 2018 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 recoverable 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 March 31, 2019, 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 2018 Annual Report.

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Results of Operations

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

	Three months ended March 31,						Change
	2019			2018			$			%
	(Dollars in thousands)
Revenues:
Direct premiums	$	677,286		$	656,087		$	21,199			3	%
Ceded premiums		(389,795	)		(394,249	)		(4,454	)		(1	)%
Net premiums		287,491			261,838			25,653			10	%
Commissions and fees		167,315			166,827			488		*
Investment income net of investment expenses		34,785			27,390			7,395			27	%
Interest expense on surplus note		(10,674	)		(8,373	)		2,301			27	%
Net investment income		24,111			19,017			5,094			27	%
Realized investment gains (losses), including   other-than-temporary impairment losses		2,847			(1,656	)		4,503		*
Other, net		13,223			13,897			(674	)		(5	)%
Total revenues		494,987			459,923			35,064			8	%
Benefits and expenses:
Benefits and claims		122,284			116,890			5,394			5	%
Amortization of DAC		64,628			60,165			4,463			7	%
Sales commissions		83,799			82,519			1,280			2	%
Insurance expenses		43,402			41,109			2,293			6	%
Insurance commissions		5,619			5,877			(258	)		(4	)%
Interest expense		7,180			7,173			7		*
Other operating expenses		65,707			63,227			2,480			4	%
Total benefits and expenses		392,619			376,960			15,659			4	%
Income before income taxes		102,368			82,963			19,405			23	%
Income taxes		23,203			17,248			5,955			35	%
Net income	$	79,165		$	65,715		$	13,450			20	%

* Less than 1% or not meaningful.

Results for the Three Months Ended March 31, 2019

Total revenues. Total revenues increased during the three months ended March 31, 2019 compared to the same period in 2018 driven by incremental premiums on term life insurance policies that are not subject to the IPO coinsurance transactions. The run-off of business subject to these same transactions is reflected in the decline in ceded premiums.

Net investment income increased during the three months ended March 31, 2019 compared to the same period in 2018 largely due to the positive impact from a higher total return on the deposit asset backing the 10% coinsurance agreement that is subject to deposit method accounting.  The $4 million higher total return on this deposit asset was due to a favorable mark to market as fixed income prices rose during the current year period and fell during the prior year period, as well as higher book earnings on the deposit asset as the duration and book yield of the investments comprising the deposit asset have both increased since the prior year period.  A larger invested asset portfolio also contributed approximately $1.6 million to the higher net investment income when compared to the prior period. Investment income net of investment expenses includes interest earned on our held-to-maturity invested asset, which is completely offset by interest expense on surplus note, thereby eliminating any impact on net investment income. Amounts recognized for each line item will remain offsetting and will fluctuate from period to period along with the principal amounts of the held-to-maturity asset and the surplus note based on the balance of reserves being contractually supported under a redundant reserve financing transaction used by Vidalia Re, Inc. (“Vidalia Re Financing Transaction”). For more information on the Vidalia Re Financing Transaction, see Note 3 (Investments) and Note 12 (Debt) to our unaudited condensed consolidated financial statements included elsewhere in this report.

Realized investment gains (losses), including other-than-temporary impairment (“OTTI”) losses increased to a gain during the three months ended March 31, 2019 compared to a loss for the same period in 2018 as a result of changes in the value of equity securities held within our investment portfolio which are marked to market through the income statement.

Total benefits and expenses. Total benefits and expenses increased during the three months ended March 31, 2019 compared to the three months ended March 31, 2018 led by growth in premium-related costs, which include benefits and claims and amortization of DAC. Insurance expenses and other operating expenses were higher due to an increase of approximately $2.3 million in technology related expenses as well as $2.4 million of increased expenses for annual employee merit increases and other expenses to support the growth of the business.

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Income taxes. Our effective income tax rate for the three months ended March 31, 2019 was 22.7%, up from 20.8% in the same period in 2018.  The increase in the effective income tax rate was primarily attributable to the recognition of a transitional adjustment resulting in a tax benefit during 2018 related to the Tax Cuts and Jobs Acts of 2017.

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 March 31,						Change
	2019			2018			$			%
	(Dollars in thousands)
Revenues:
Direct premiums	$	670,755		$	649,366		$	21,389			3	%
Ceded premiums		(388,100	)		(392,561	)		(4,461	)		(1	)%
Net premiums		282,655			256,805			25,850			10	%
Allocated investment income		4,444			3,089			1,355			44	%
Other, net		9,744			10,415			(671	)		(6	)%
Total revenues		296,843			270,309			26,534			10	%
Benefits and expenses:
Benefits and claims		118,443			112,831			5,612			5	%
Amortization of DAC		64,066			56,673			7,393			13	%
Insurance expenses		41,832			38,956			2,876			7	%
Insurance commissions		2,163			2,228			(65	)		(3	)%
Total benefits and expenses		226,504			210,688			15,816			8	%
Income before income taxes	$	70,339		$	59,621		$	10,718			18	%

Results for the Three Months Ended March 31, 2019

Net premiums. Direct premiums increased during the three months ended March 31, 2019 compared to the three months ended March 31, 2018 largely due to sales of new policies in recent periods that have contributed to growth in the in-force book of business. The decline in ceded premiums includes $15.7 million in lower coinsurance ceded premiums due to the run-off of business subject to the IPO coinsurance transactions, partially offset by $11.2 million in higher non-level YRT reinsurance ceded premiums as business not subject to the IPO coinsurance transactions ages. The continued impact from the increase in direct premiums combined with the reduction in ceded premiums caused net premiums to grow at a higher rate than direct premiums.

Benefits and claims. Benefits and claims increased during the three months ended March 31, 2019 compared to the same period in 2018 primarily due to the growth in net premiums. Claims experience was in-line with historical trends and was lower when compared to the same period in 2018.

Amortization of DAC. The amortization of DAC increased during the three months ended March 31, 2019 compared to the three months ended March 31, 2018 largely due to growth in net premiums. Persistency during the first quarter of 2019 was generally in line with the comparable period in 2018.

Insurance expenses. Insurance expenses increased during the three months ended March 31, 2019 compared to the three months ended March 31, 2018 primarily due to $2.9 million in increases in expenses to support the growth of the business and annual employee merit increases.   

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

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	Three months ended March 31,				Change
	2019		2018		$			%
	(Dollars in thousands)
Revenues:
Commissions and fees:
Sales-based revenues	$	66,997	$	64,461	$	2,536			4	%
Asset-based revenues		73,639		74,649		(1,010	)		(1	)%
Account-based revenues		19,613		20,595		(982	)		(5	)%
Other, net		2,423		2,336		87			4	%
Total revenues		162,672		162,041		631		*
Expenses:
Amortization of DAC		477		3,442		(2,965	)		(86	)%
Insurance commissions		3,025		3,199		(174	)		(5	)%
Sales commissions:
Sales-based		47,831		46,259		1,572			3	%
Asset-based		32,343		32,484		(141	)	*
Other operating expenses		36,312		36,673		(361	)		(1	)%
Total expenses		119,988		122,057		(2,069	)		(2	)%
Income before income taxes	$	42,684	$	39,984	$	2,700			7	%

* Less than 1% or not meaningful.

Results for the Three Months Ended March 31, 2019

Commissions and fees. Commissions and fees increased during the three months ended March 31, 2019 compared to the three months ended March 31, 2018 driven by growth in annuity product sales which have higher upfront commissions than other products. This increase was partially offset by decreases in asset- and account-based revenues.  Asset-based revenues decreased compared to the prior year period as average client asset values were lower during the period as a result of declines in the equity market at the end of 2018.  Account-based revenues decreased compared to the prior year period primarily due to the completed transition of clients’ managed Freedom Portfolio accounts, for which we earned transfer agent recordkeeping fees and custodial fees, to the Lifetime Investments Platform, for which we do not earn transfer agent recordkeeping fees or custodial fees.  Partially offsetting the impact from the managed account transition was an increase in the number of retail mutual fund positions for which we earn these fees.

Amortization of DAC. Amortization of DAC decreased during the three months ended March 31, 2019 compared to the three months ended March 31, 2018 largely due to favorable market performance of the funds underlying our Canadian segregated funds product in the first quarter of 2019 compared with unfavorable market performance in the first quarter of 2018.     

Sales commissions. The increase in sales-based and decrease in asset-based commissions for the three months ended March 31, 2019 compared to the three months ended March 31, 2018 were generally consistent with the increase in sales-based revenue and decrease in asset-based revenue, respectively.

Other operating expenses. Other operating expenses decreased during the three months ended March 31, 2019 compared to the three months ended March 31, 2018 due to the phase-in of reduced fees paid to a service provider on the Company’s transfer agent record keeping platform.  This was partially offset by increases due to annual employee merit increases and other expenses to support the growth of the business.

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

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	Three months ended March 31,						Change
	2019			2018			$			%
	(Dollars in thousands)
Revenues:
Direct premiums	$	6,531		$	6,721		$	(190	)		(3	)%
Ceded premiums		(1,695	)		(1,688	)		7		*
Net premiums		4,836			5,033			(197	)		(4	)%
Commissions and fees		7,066			7,122			(56	)		(1	)%
Allocated investment income net   of investment expenses		30,341			24,301			6,040			25	%
Interest expense on surplus note		(10,674	)		(8,373	)		2,301			27	%
Allocated net investment income		19,667			15,928			3,739			23	%
Realized investment gains    (losses), including other-than-    temporary impairment losses		2,847			(1,656	)		4,503		*
Other, net		1,056			1,146			(90	)		(8	)%
Total revenues		35,472			27,573			7,899			29	%
Benefits and expenses:
Benefits and claims		3,841			4,059			(218	)		(5	)%
Amortization of DAC		85			50			35			70	%
Insurance expenses		1,570			2,153			(583	)		(27	)%
Insurance commissions		431			450			(19	)		(4	)%
Sales commissions		3,625			3,776			(151	)		(4	)%
Interest expense		7,180			7,173			7		*
Other operating expenses		29,395			26,554			2,841			11	%
Total benefits and expenses		46,127			44,215			1,912			4	%
Loss before income taxes	$	(10,655	)	$	(16,642	)	$	(5,987	)		(36	)%

* Less than 1% or not meaningful.

Results for the Three Months Ended March 31, 2019

Total revenues. Total revenues during the three months ended March 31, 2019 increased as compared to the three months ended March 31, 2018 largely due to the increase in allocated investment income and realized investment gains as discussed in the Primerica, Inc. and Subsidiaries Results of Operations above.  

Total benefits and expenses. Total benefits and expenses increased during the three months ended March 31, 2019 compared to the three months ended March 31, 2018 primarily due to increased spending on technology and other business development expenses.   

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 March 31, 2019, 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 invest a portion of our portfolio in assets denominated in Canadian dollars to support our Canadian operations. 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. For more information on the LLC Note, see Note 3 (Investments) to our unaudited condensed consolidated financial statements included elsewhere in this report.

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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:

	March 31, 2019	December 31, 2018
Average rating of our fixed-maturity portfolio	A	A
Average duration of our fixed-maturity portfolio	3.6 years	3.5 years
Average book yield of our fixed-maturity portfolio	3.85%	3.89%

The distribution of our investments in fixed-maturity securities (excluding our held-to-maturity security) by rating, including those classified as trading securities, were as follows:

	March 31, 2019					December 31, 2018
	Amortized cost (1)		%			Amortized cost (1)		%
	(Dollars in thousands)
AAA	$	443,886		21	%	$	444,466		21	%
AA		226,866		11	%		217,541		10	%
A		475,137		23	%		469,044		22	%
BBB		868,985		42	%		898,694		43	%
Below investment grade		60,228		3	%		59,368		4	%
Not rated		3,078	*				3,319	*
Total	$	2,078,180		100	%	$	2,092,432		100	%

⁽¹⁾ Includes trading securities at fair value and available-for-sale securities at amortized cost.

* Less than 1%.

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

	March 31, 2019
Issuer	Fair value			Amortized cost (1)			Unrealized gain (loss)			Credit rating
	(Dollars in thousands)
Government of Canada	$	23,954		$	23,543		$	411		AAA
Comcast Corp		15,320			15,184			136		A-
Province of Quebec Canada		13,486			12,510			976		AA-
Wells Fargo & Co		12,433			12,380			53		A-
Bank of America Corp		11,938			11,845			93		A-
Office Properties Income Trust		11,461			11,463			(2	)	BBB-
Province of Alberta Canada		11,386			11,079			307		A+
Apple Inc		10,682			10,616			66		AA+
American Express Co		10,649			10,676			(27	)	BBB+
Province of Ontario Canada		10,642			10,240			402		A+
Total – ten largest holdings	$	131,951		$	129,536		$	2,415
Total – fixed-maturity securities	$	2,115,258		$	2,078,180
Percent of total fixed-maturity securities		6	%		6	%

⁽¹⁾ Includes trading securities at fair value and available-for-sale securities at amortized cost.

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

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expenses, and income taxes, as well as repurchases of common shares outstanding. As of March 31, 2019, the Parent Company had cash and invested assets of $167.3 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 the 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.

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

	Three months ended March 31,						Change
	2019			2018			$
	(In thousands)
Net cash provided by (used in) operating activities	$	66,421		$	44,334		$	22,088
Net cash provided by (used in) investing activities		25,278			(70,020	)		95,298
Net cash provided by (used in) financing activities		(74,987	)		(62,842	)		(12,145	)
Effect of foreign exchange rate changes on cash		776			(849	)		1,625
Change in cash and cash equivalents	$	17,488		$	(89,377	)	$	106,866

Operating Activities. Cash provided by operating activities increased during the three months ended March 31, 2019 versus the three months ended March 31, 2018 driven by growth in cash receipts from the collection of premium revenues in excess of benefits and claims paid in our Term Life Insurance segment. The impact of direct premium growth and the additional layering of net premiums from term life insurance policies not subject to the IPO coinsurance transactions has continued to generate positive incremental cash.

Investing Activities. Cash flows related to investing activities was a source of cash in 2019 as compared to a use of cash in 2018 as the Company accumulated a higher balance of cash and cash equivalents as of March 31, 2019 versus March 31, 2018. The accumulation of the higher cash balance in 2019 was largely a function of timing that was influenced by when our subsidiaries paid dividends to the Parent Company and when cash was able to be deployed to acquire fixed-maturity investment securities or repurchase shares..    

Financing Activities. The increase in cash used in financing activities during the three months ended March 31, 2019 compared to the same period in 2018 was primarily due to higher repurchases of common stock on a year-over-year basis. The timing of when the Company finalized its share repurchase strategy in 2019 allowed for share repurchases to occur throughout the entire quarter while repurchases in 2018 began in the middle of the quarter.

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 March 31, 2019, our U.S. life insurance subsidiaries maintained statutory capital and surplus substantially in excess of the applicable regulatory requirements and remain 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 March 31, 2019, Primerica Life Insurance Company of Canada was in compliance with Canada’s minimum capital requirements as determined by OSFI.

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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 2011 through 2017 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. Primerica Life adopted PBR during the first quarter of 2018. The adoption of PBR facilitated extending the premium guarantees for Primerica Life for the entire initial term period for new sales. The PBR regulation significantly reduces the statutory policy benefit reserve requirements, but only applies to business issued after the effective date. As a result, we expect that the adoption of PBR will significantly reduce the need to engage in future redundant reserve financing transactions for business issued after the effective date. See Note 4 (Investments), Note 10 (Debt) and Note 16 (Commitments and Contingent Liabilities) to our consolidated financial statements within our 2018 Annual Report for more information on these redundant reserve financing transactions.

Notes Payable. The Company has $375.0 million of publicly-traded, Senior Notes outstanding issued at a price of 99.843% 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 as of  March 31, 2019. No events of default occurred during the three months ended March 31, 2019.

Rating Agencies. There have been no changes to Primerica, Inc.'s Senior Notes ratings or Primerica Life's financial strength ratings since December 31, 2018.

Short-Term Borrowings. We had no short-term borrowings as of or during the three months ended March 31, 2019.

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. We have no transactions, agreements or other contractual arrangements to which an entity unconsolidated with the Company is a party, under which the Company maintains any off-balance sheet obligations or guarantees as of March 31, 2019.

Credit Facility Agreement. We maintain an unsecured $200.0 million revolving credit facility (“Revolving Credit Facility”) with a syndicate of commercial banks that has a scheduled termination date of December 19, 2022. Amounts outstanding under the Revolving Credit Facility bear interest at a periodic rate equal to LIBOR or the base rate, plus in either case an applicable margin. The Revolving Credit Facility also permits the issuance of letters of credit.  The applicable margins are based on our debt rating with such margins for LIBOR rate loans and letters of credit ranging from 1.125% to 1.625% per annum and for base rate loans ranging from 0.125% to 0.625% per annum. Under the Revolving Credit Facility, we incur a commitment fee that is payable quarterly in arrears and is determined by our debt rating. This commitment fee ranges from 0.125% to 0.225% per annum of the aggregate $200.0 million commitment of the lenders under the Revolving Credit Facility. As of March 31, 2019, no amounts have been drawn under the Revolving Credit Facility and we were in compliance with its covenants.  Furthermore, no events of default have occurred under the Revolving Credit Facility in the three months ended March 31, 2019.

Contractual Obligations Update. There has been no material changes in contractual obligations from those disclosed in the 2018 Annual Report.  

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

39

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 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 sales representatives is overturned;

• the Company’s or the 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 the securities-licensed 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 proposed or adopted by state legislatures or regulators or Canadian securities regulators, are imposed on us or the 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, or our policies and procedures for compliance with federal or state regulations governing standards of care, were deemed inadequate, it could have a material adverse effect on our business, financial condition and results of operations;

• 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;

• 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;

• 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 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;

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

40

• 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;

• 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, 2018. 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 2018 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 quarter ended March 31, 2019 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 Risk Factors contained in our Annual Report on Form 10-K for the year ended December 31, 2018 are incorporated herein by reference.

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

During the quarter ended March 31, 2019, 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 (2)		Approximate dollar value of shares that may yet be purchased under the plans or programs (2)
January 1 - 31, 2019		192,626	$	103.37		192,626	$	45,088,757
February 1 - 28, 2019		130,607		117.21		130,531		239,789,219
March 1 - 31, 2019		203,343		123.32		149,981		221,383,551
Total		526,576	$	114.51		473,138	$	221,383,551

⁽¹⁾ Consists of (a) repurchases and withholdings of 53,438 shares at an average price of $124.99 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⁾       On February 7, 2019, our Board of Directors authorized a new share repurchase program for up to $275.0 million of our outstanding common stock (including $65.0 million remaining from the prior repurchase program) for purchases through June 30, 2020.

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	The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

42

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.
May 8, 2019	/s/ Alison S. Rand
	Alison S. Rand
	Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

43

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:	May 8, 2019	/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:	May 8, 2019	/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 March 31, 2019, 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:	May 8, 2019
/s/ Alison S. Rand
Name:	Alison S. Rand
Title:	Executive Vice President and Chief Financial Officer
Date:	May 8, 2019

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Apr. 30, 2019
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	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Trading Symbol	PRI
Amendment Flag	false
Entity Common Stock, Shares Outstanding		42,341,154
Entity Small Business	false
Entity Emerging Growth Company	false

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019		Dec. 31, 2018
Investments:
Fixed-maturity securities and Short-term investments available-for-sale, at fair value	$ 2,096,932		$ 2,077,806
Fixed-maturity security held-to-maturity, at amortized cost (fair value: $1,058,428 in 2019 and $945,331 in 2018)	1,036,110		970,390
Equity securities, at fair value (historical cost: $32,142 in 2019 and $34,997 in 2018)	37,848		37,679
Trading securities, at fair value (cost: $26,502 in 2019 and $13,597 in 2018)	26,556		13,610
Policy loans	30,783		31,501
Total investments	3,228,229		3,130,986
Cash and cash equivalents	279,626		262,138
Accrued investment income	18,450		17,057
Reinsurance recoverables	4,202,903		4,141,569
Deferred policy acquisition costs, net	2,181,741		2,133,920
Agent balances, due premiums and other receivables	226,061		215,139
Intangible assets, net (accumulated amortization: $82,887 in 2019 and $82,035 in 2018)	47,260		48,111
Income taxes	62,252		59,336
Operating lease right-of-use assets	50,506
Other assets	410,841		391,291
Separate account assets	2,368,760		2,195,501
Total assets	13,076,629		12,595,048
Liabilities:
Future policy benefits	6,240,864		6,168,157
Unearned and advance premiums	17,341		15,587
Policy claims and other benefits payable	308,422		313,862
Other policyholders’ funds	377,360		370,644
Notes payable	373,755		373,661
Surplus note	1,035,421		969,685
Income taxes	206,180		187,104
Operating lease liabilities	56,712
Other liabilities	505,514		486,772
Payable under securities lending	64,914		52,562
Separate account liabilities	2,368,760		2,195,501
Commitments and contingent liabilities (see Commitments and Contingent Liabilities note)
Total liabilities	11,555,243		11,133,535
Stockholders’ equity:
Common stock ($0.01 par value; authorized 500,000 shares in 2019 and 2018; issued and outstanding 42,399 shares in 2019 and 42,694 shares in 2018)	424		427
Retained earnings	1,506,943		1,489,520
Accumulated other comprehensive income (loss), net of income tax:
Unrealized foreign currency translation gains (losses)	(14,897)		(21,064)
Net unrealized investment gains (losses) on available-for-sale securities:
Net unrealized investment gains not other-than-temporarily impaired	29,022		(7,253)
Net unrealized investment losses other-than-temporarily impaired	(106)		(117)
Total stockholders’ equity	1,521,386		1,461,513
Total liabilities and stockholders’ equity	13,076,629		12,595,048
Fixed-maturity Securities [Member]
Investments:
Fixed-maturity securities and Short-term investments available-for-sale, at fair value	2,088,702	[1]	2,069,635	[2]
Trading securities, at fair value (cost: $26,502 in 2019 and $13,597 in 2018)	26,556		13,610
Short-term Investments [Member]
Investments:
Fixed-maturity securities and Short-term investments available-for-sale, at fair value	$ 8,230		$ 8,171

[1] Includes $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 (loss).

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

XML

Condensed Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands	Mar. 31, 2019		Dec. 31, 2018
Investments:
Fixed-maturity securities and Short-term investments available-for-sale, amortized cost	$ 2,059,854		$ 2,086,993
Fixed-maturity securities held to maturity, fair value	1,058,428		945,331
Equity securities, at fair value, cost	32,142		34,997
Trading securities, amortized cost	26,502		13,597
Intangible assets, net
Accumulated amortization on definite-lived intangible assets	$ 82,887		$ 82,035
Stockholders’ equity:
Common stock, par value	$ 0.01		$ 0.01
Common stock, shares authorized	500,000,000		500,000,000
Common stock, shares issued	42,399,000		42,694,000
Common stock, shares outstanding	42,399,000		42,694,000
Fixed-maturity Securities [Member]
Investments:
Fixed-maturity securities and Short-term investments available-for-sale, amortized cost	$ 2,051,624	[1]	$ 2,078,822	[2]
Trading securities, amortized cost	26,502		13,597
Short-term Investments [Member]
Investments:
Fixed-maturity securities and Short-term investments available-for-sale, amortized cost	$ 8,230		$ 8,171

[1] Includes $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 (loss).

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

XML

Condensed Consolidated Statements of Income - Unaudited - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues:
Direct premiums	$ 677,286	$ 656,087
Ceded premiums	(389,795)	(394,249)
Net premiums	287,491	261,838
Revenues	494,987	459,923
Investment income net of investment expenses	34,785	27,390
Interest expense on surplus note	(10,674)	(8,373)
Net investment income	24,111	19,017
Realized investment gains (losses), including other-than- temporary impairment losses	2,847	(1,656)
Other, net	13,223	13,897
Benefits and expenses:
Benefits and claims	122,284	116,890
Amortization of deferred policy acquisition costs	64,628	60,165
Sales commissions	83,799	82,519
Insurance expenses	43,402	41,109
Insurance commissions	5,619	5,877
Interest expense	7,180	7,173
Other operating expenses	65,707	63,227
Total benefits and expenses	392,619	376,960
Income before income taxes	102,368	82,963
Income taxes	23,203	17,248
Net income	$ 79,165	$ 65,715
Earnings per share:
Basic earnings per share	$ 1.84	$ 1.46
Diluted earnings per share	$ 1.83	$ 1.46
Weighted-average shares used in computing earnings per share:
Basic	42,824	44,740
Diluted	42,942	44,855
Supplemental disclosures:
Total impairment losses		$ 49
Net impairment losses recognized in earnings		(49)
Other net realized investment gains (losses)	$ (54)	338
Net gains (losses) recognized on equity securities	2,901	(1,945)
Net realized investment gains (losses), including other-than- temporary impairment losses	2,847	(1,656)
Commissions and Fees [Member]
Revenues:
Revenues	$ 167,315	$ 166,827

XML

Condensed Consolidated Statements of Comprehensive Income - Unaudited - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 79,165	$ 65,715
Unrealized investment gains (losses) on available-for-sale securities:
Change in unrealized holding gains (losses) on investment securities	46,200	(32,343)
Reclassification adjustment for realized investment (gains) losses included in net income	65	(316)
Foreign currency translation adjustments:
Change in unrealized foreign currency translation gains (losses)	6,167	(8,401)
Total other comprehensive income (loss) before income taxes	52,432	(41,060)
Income tax expense (benefit) related to items of other comprehensive income (loss)	9,979	(6,916)
Other comprehensive income (loss), net of income taxes	42,453	(34,144)
Total comprehensive income	$ 121,618	$ 31,571

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, 2017		$ 443		$ 1,375,090	$ 43,568
Cumulative effect from the adoption of new accounting standards, net				24,610	73
Repurchases of common stock		(5)	$ (13,986)	(37,573)
Share-based compensation			13,988
Net issuance of common stock		2	(2)
Net income	$ 65,715			65,715
Dividends				(11,278)
Change in foreign currency translation adjustment, net of income tax expense (benefit)					(8,401)
Change in net unrealized investment gains (losses) not-other-than temporarily impaired					(25,719)
Change in net unrealized investment gains (losses) other-than-temporarily impaired					(24)
Balance, end of period at Mar. 31, 2018	$ 1,426,501	440		1,416,564	9,497
Dividends declared per share	$ 0.25
Balance, beginning of period at Dec. 31, 2018	$ 1,461,513	427		1,489,520	(28,434)
Repurchases of common stock		(5)	(13,169)	(47,114)
Share-based compensation			13,171
Net issuance of common stock		2	$ (2)
Net income	79,165			79,165
Dividends				(14,628)
Change in foreign currency translation adjustment, net of income tax expense (benefit)					6,167
Change in net unrealized investment gains (losses) not-other-than temporarily impaired					36,275
Change in net unrealized investment gains (losses) other-than-temporarily impaired					11
Balance, end of period at Mar. 31, 2019	$ 1,521,386	$ 424		$ 1,506,943	$ 14,019
Dividends declared per share	$ 0.34

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income	$ 79,165	$ 65,715
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Change in future policy benefits and other policy liabilities	65,733	69,052
Deferral of policy acquisition costs	(105,080)	(111,422)
Amortization of deferred policy acquisition costs	64,628	60,165
Change in income taxes	6,180	6,444
Realized investment (gains) losses, including other-than-temporary impairments	(2,847)	1,656
Accretion and amortization of investments	(120)	(126)
Depreciation and amortization	4,156	3,044
Change in reinsurance recoverables	(54,860)	(66,974)
Change in agent balances, due premiums and other receivables	(7,910)	2,440
Trading securities sold, matured, or called (acquired), net	(12,918)	(24,025)
Share-based compensation	10,896	11,502
Change in other operating assets and liabilities, net	19,398	26,863
Net cash provided by (used in) operating activities	66,421	44,334
Available-for-sale investments sold, matured or called:
Fixed-maturity securities — sold	6,467	14,873
Fixed-maturity securities — matured or called	108,972	105,109
Equity securities — sold	3,109
Available-for-sale investments acquired:
Equity securities — acquired	(375)	(69)
Purchases of property and equipment and other investing activities, net	(6,594)	(2,080)
Cash collateral received (returned) on loaned securities, net	12,352	(353)
Sales (purchases) of short-term investments using securities lending collateral, net	(12,352)	353
Net cash provided by (used in) investing activities	25,278	(70,020)
Cash flows from financing activities:
Dividends paid	(14,628)	(11,278)
Common stock repurchased	(53,625)	(46,328)
Tax withholdings on share-based compensation	(6,664)	(5,236)
Finance leases	(70)
Net cash provided by (used in) financing activities	(74,987)	(62,842)
Effect of foreign exchange rate changes on cash	776	(849)
Change in cash and cash equivalents	17,488	(89,377)
Cash and cash equivalents, beginning of period	262,138	279,962
Cash and cash equivalents, end of period	279,626	190,585
Fixed-maturity Securities [Member]
Available-for-sale investments acquired:
Fixed-maturity securities	$ (86,301)	$ (187,853)

XML

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

3 Months Ended

Mar. 31, 2019

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 provider of financial products to middle-income households in the United States and Canada through a network of independent contractor sales representatives (“sales representatives” or “sales force”). 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, LLC (“PFS”), a general agency and marketing company; Primerica Life Insurance Company (“Primerica Life”), our principal life insurance company; PFS Investments Inc. (“PFS Investments”), an investment products company and broker-dealer, 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”). Primerica Life, domiciled in Tennessee, owns National Benefit Life Insurance Company (“NBLIC”), a New York life insurance company. Peach Re, Inc. (“Peach Re”) and Vidalia Re, Inc. (“Vidalia Re”) are 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 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 March 31, 2019 and December 31, 2018, the statements of income, comprehensive income (loss), stockholders' equity and cash flows for the three months ended March 31, 2019 and 2018.  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, 2018 (“2018 Annual Report”).

Use of Estimates. 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 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”), future policy benefit reserves and corresponding amounts recoverable from reinsurers, 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 U.S. GAAP. 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 2018 Annual Report unless otherwise described.

New Accounting Principles. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (ASC 842) (“ASC 842”), which requires lessees to recognize right-of-use operating lease assets and operating lease liabilities on the balance sheet. The Company adopted the amendments in ASC 842 on January 1, 2019 using the modified retrospective approach through a cumulative-effect adjustment to beginning retained earnings. The cumulative-effect adjustment to beginning retained earnings was zero. In addition, we elected the package of practical expedients permitted under ASC 842, which included not reassessing whether existing contracts contained leases and not reassessing the lease classification for existing leases. The effect of adopting ASC 842 resulted in an increase to both total assets and total liabilities of $52.7 million on January 1, 2019. The increase to both assets and liabilities is less than  1% of our total assets and total liabilities. The adjustment recognized upon the adoption of ASC 842 included the recognition of our operating lease obligations and corresponding right-of-use assets on our condensed consolidated balance sheet,

which mainly consist of our executive office operations and other real estate leases of office space. The adoption of ASC 842 did not have an effect on the Company’s results of operations or liquidity. The Company’s reporting for the comparative periods prior to adoption continues to be presented in the condensed consolidated financial statements in accordance with previous lease accounting guidance, Accounting Standards Codification Topic 840 – Leases (“ASC 840”). Refer to Note 14 (Leases) for more information on leases.

Future Application of Accounting Standards. In August 2018, the FASB issued Accounting Standards Update No. 2018-12, Financial Services—Insurance (Topic 944) — Targeted Improvements to the Accounting for Long-Duration Contracts (“ASU 2018-12”). The amendments in this update change accounting guidance for insurance companies that issue long-duration contracts, including term life insurance. ASU 2018-12 requires companies that issue long-duration insurance contracts to update assumptions used in measuring future policy benefits, including mortality, persistency, and disability rates, at least annually instead of locking those assumptions at contract inception and reflecting differences in assumptions and actual performance as the experience occurs. ASU 2018-12 also includes changes to how insurance companies that issue long-duration contracts amortize DAC and determine and update the discount rate assumptions used in measuring future policy benefits reserves while increasing the level of financial statement disclosures required. The amendments in ASU 2018-12 are scheduled to be effective for the Company beginning in 2021 as of the earliest period presented in the condensed consolidated financial statements. We anticipate that the adoption of ASU 2018-12 will have a pervasive impact on our consolidated financial statements and related disclosures and will require changes to certain of our processes, systems and controls. We are unable to determine the magnitude of its impact at this time as we are in the early stages of evaluating and implementing this standard.

In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (“ASU 2016-13”), Financial Instruments—Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments (“ASC 326”). ASC 326 introduces new guidance for accounting for credit losses on financial instruments within its scope, including reinsurance recoverables, by replacing the current approach that delays recognition until it is probable a loss has been incurred with a new approach that estimates an allowance for anticipated credit losses on the basis of an entity’s own expectations. The objective of the new approach for estimating credit losses is to require consideration of a broader range of forward-looking information, which is expected to result in earlier recognition of credit losses on financial instruments. Available-for-sale debt securities are excluded from the scope of financial instruments that require measurement of credit losses on the basis of a forward-looking expected loss estimate under ASC 326. The incurred probable loss approach for measuring credit losses on available-for-sale debt securities will remain under ASC 326, however, an entity will be allowed to reverse credit losses previously recognized in an allowance for available-for-sale debt securities (other than credit losses for securities an entity intends to sell or will more-likely-than-not be required to sell before recovery of amortized cost) in situations where the estimate of credit losses on those securities has declined.  The amendments in ASC 326 also preclude an entity from considering the length of time an available-for-sale debt security has been in an unrealized loss position to avoid recording a credit loss and removes the requirement to consider recoveries or declines in fair value after the balance sheet date. The amendments in ASC 326 are effective for the Company beginning in fiscal year 2020. The Company is currently in the process of evaluating its impact on the Company’s consolidated financial statements.

Recently-issued accounting guidance not discussed above is not applicable, is immaterial to our condensed consolidated financial statements, or did not or is not expected to have a material impact on our business.

XML

Segment and Geographical Information

3 Months Ended

Mar. 31, 2019

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 March 31,
	2019			2018
	(In thousands)
Revenues:
Term life insurance segment	$	296,843		$	270,309
Investment and savings products segment		162,672			162,041
Corporate and other distributed products segment		35,472			27,573
Total revenues	$	494,987		$	459,923
Net investment income:
Term life insurance segment	$	4,444		$	3,089
Investment and savings products segment		-			-
Corporate and other distributed products segment		19,667			15,928
Total net investment income	$	24,111		$	19,017
Amortization of DAC:
Term life insurance segment	$	64,066		$	56,673
Investment and savings products segment		477			3,442
Corporate and other distributed products segment		85			50
Total amortization of DAC	$	64,628		$	60,165
Non-cash share-based compensation expense:
Term life insurance segment	$	1,872		$	2,174
Investment and savings products segment		1,454			1,193
Corporate and other distributed products segment		7,557			8,135
Total non-cash share-based compensation expense	$	10,883		$	11,502
Income (loss) before income taxes:
Term life insurance segment	$	70,339		$	59,621
Investment and savings products segment		42,684			39,984
Corporate and other distributed products segment		(10,655	)		(16,642	)
Total income before income taxes	$	102,368		$	82,963

Total assets by segment were as follows:

	March 31, 2019		December 31, 2018
	(In thousands)
Assets:
Term life insurance segment	$	6,432,683	$	6,322,555
Investment and savings products segment (1)		2,480,973		2,298,238
Corporate and other distributed products segment		4,162,973		3,974,255
Total assets	$	13,076,629	$	12,595,048

_______________

⁽¹⁾ The Investment and Savings Products segment includes assets held in separate accounts. Excluding separate accounts, the Investment and Savings Products segment assets were $112.3 million and $102.8 million as of March 31, 2019 and December 31, 2018, 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 March 31,
	2019		2018
	(In thousands)
Revenues by country:
United States	$	419,992	$	383,796
Canada		74,995		76,127
Total revenues	$	494,987	$	459,923
Income before income taxes by country:
United States	$	80,735	$	63,214
Canada		21,633		19,749
Total income before income taxes	$	102,368	$	82,963

	March 31, 2019		December 31, 2018
	(In thousands)
Long-lived assets by country:
United States	$	31,288	$	30,999
Canada		5,073		4,997
Total long-lived assets	$	36,361	$	35,996

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Investments

3 Months Ended

Mar. 31, 2019

Investments Debt And Equity Securities [Abstract]

Investments

(3) Investments

Available-for-sale Securities. The period-end amortized cost, gross unrealized gains and losses, and fair value of available-for-sale securities were as follows:

	March 31, 2019
	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	$	11,774	$	220	$	(40	)	$	11,954
Foreign government		155,710		5,975		(178	)		161,507
States and political subdivisions		67,903		1,945		(124	)		69,724
Corporates		1,407,274		30,372		(6,075	)		1,431,571
Residential mortgage-backed securities		200,259		3,695		(500	)		203,454
Commercial mortgage-backed securities		128,220		2,391		(755	)		129,856
Other asset-backed securities		80,484		456		(304	)		80,636
Total fixed-maturity securities(1)		2,051,624		45,054		(7,976	)		2,088,702
Short-term investments		8,230		-		-			8,230
Total fixed-maturity and short-term investments	$	2,059,854	$	45,054	$	(7,976	)	$	2,096,932

^{(1) Includes $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 (loss).}

	December 31, 2018
	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	$	12,115	$	176	$	(58	)	$	12,233
Foreign government		155,723		3,347		(958	)		158,112
States and political subdivisions		59,075		1,202		(271	)		60,006
Corporates		1,447,075		11,916		(24,773	)		1,434,218
Residential mortgage-backed securities		191,245		2,439		(1,733	)		191,951
Commercial mortgage-backed securities		131,279		1,712		(1,636	)		131,355
Other asset-backed securities		82,310		205		(755	)		81,760
Total fixed-maturity securities(1)		2,078,822		20,997		(30,184	)		2,069,635
Short-term investments		8,171		-		-			8,171
Total fixed-maturity and short-term investments	$	2,086,993	$	20,997	$	(30,184	)	$	2,077,806

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

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 as of March 31, 2019 was as follows:

	Amortized cost		Fair value
	(In thousands)
Due in one year or less	$	195,958	$	197,079
Due after one year through five years		880,992		896,193
Due after five years through 10 years		504,736		514,884
Due after 10 years		60,975		66,600
		1,642,661		1,674,756
Mortgage- and asset-backed securities		408,963		413,946
Total AFS fixed-maturity securities	$	2,051,624	$	2,088,702

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:

	March 31, 2019			December 31, 2018
	(In thousands)
Net unrealized investment gains (losses) on available-for-sale securities   including OTTI:
Available-for-sale securities	$	37,078		$	(9,187	)
OTTI		134			147
Net unrealized investment gains (losses) on available-for-sale securities   excluding OTTI		37,212			(9,040	)
Deferred income taxes		(8,190	)		1,787
Net unrealized investment gains (losses) on available-for-sale securities  excluding OTTI, net of tax	$	29,022		$	(7,253	)

Trading Securities. The cost and fair value of the fixed-maturity securities classified as trading securities were as follows:

	March 31, 2019				December 31, 2018
	Cost		Fair value		Cost		Fair value
	(In thousands)
Fixed-maturity securities	$	26,502	$	26,556	$	13,597	$	13,610

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 condensed consolidated financial statements.

The LLC Note is classified as a fixed-maturity held-to-maturity security in the Company’s invested asset portfolio as we have the positive intent and ability to hold the security until maturity. As of March 31, 2019, the LLC Note, which was rated A+ by Fitch Ratings, had an estimated unrealized holding gain of $22.3 million based on its amortized cost and estimated fair value. The estimated fair value of the LLC Note is expected to be at least equal to the estimated fair value of the offsetting Surplus Note. See Note 4 (Fair Value of Financial Instruments) for information on the fair value of our financial instruments and 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 $7.7 million and $10.1 million as of March 31, 2019 and December 31, 2018, 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 $64.9 million and $52.6 million as of March 31, 2019 and December 31, 2018, respectively.

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

	Three months ended March 31,
	2019			2018
	(In thousands)
Fixed-maturity securities (available-for-sale)	$	20,333		$	19,288
Fixed-maturity security (held-to-maturity)		10,674			8,373
Equity securities		487			513
Policy loans and other invested assets		320			279
Cash and cash equivalents		1,203			718
Total return on deposit asset underlying 10% coinsurance   agreement(1)		3,902			(107	)
Gross investment income		36,919			29,064
Investment expenses		(2,134	)		(1,674	)
Investment income net of investment expenses		34,785			27,390
Interest expense on surplus note		(10,674	)		(8,373	)
Net investment income	$	24,111		$	19,017

^{(1) Includes $2.1 million and $(1.3) million of net gains (losses) recognized for the change in fair value of the deposit asset underlying the 10% coinsurance agreement for the three months ended March 31, 2019 and 2018, respectively.}

The components of net realized investment gains (losses) recognized in net income as well as details on gross realized investment gains and losses were as follows:

	Three months ended March 31,
	2019			2018
	(In thousands)
Net realized investment gains (losses):
Gross gains from sales of available-for-sale securities	$	178		$	383
Gross losses from sales of available-for-sale securities		(243	)		(18	)
OTTI losses of available-for-sale securities		-			(49	)
Net gains (losses) recognized in net income during   the period on equity securities		2,901			(1,945	)
Gains (losses) from bifurcated options		-			(27	)
Gains (losses) on trading securities		11			-
Net realized investment gains (losses)		2,847			(1,656	)

The proceeds from sales or other redemptions of available-for-sale securities were as follows:

	Three months ended March 31,
	2019		2018
	(In thousands)
Proceeds from sales or other redemptions	$	115,439	$	119,982

The components of net gains (losses) recognized in net income on equity securities still held as of period-end were as follows:

	Three months ended March 31,
	2019			2018
	(In thousands)
Net gains (losses) recognized on equity securities	$	2,901		$	(1,945	)
Less: Net gains (losses) recognized on equity securities sold		(254	)		-
Net gains (losses) recognized in net income on equity   securities still held as of period-end	$	3,155		$	(1,945	)

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 security is impaired if its fair value falls below its cost. Factors considered in

determining whether an impairment 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 issuer, 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. We also consider our anticipated sources of cash to fund operating activities and share repurchases when assessing our ability and intent to hold invested assets to allow for the recovery of cost basis in determining whether to recognize OTTI related to such invested assets.

The amortized cost of available-for-sale fixed-maturity securities with a cost basis in excess of their fair values were $606.6 million and $1,239.6 million as of March 31, 2019 and December 31, 2018, 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:

	March 31, 2019
	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	$	121	$	0			1	$	6,098	$	(40	)		6
Foreign government		1,531		(4	)		1		23,679		(174	)		27
States and political subdivisions		-		-			-		19,105		(124	)		17
Corporates		51,358		(713	)		40		327,399		(5,362	)		276
Residential mortgage-backed securities		5,969		(14	)		6		50,620		(486	)		29
Commercial mortgage-backed securities		3,119		(11	)		5		70,052		(744	)		69
Other asset-backed securities		7,713		(48	)		20		31,908		(256	)		42
Total fixed-maturity securities	$	69,811	$	(790	)			$	528,861	$	(7,186	)

	December 31, 2018
	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	$	1,668	$	(10	)		1	$	4,541	$	(48	)		6
Foreign government		7,326		(170	)		7		52,086		(788	)		54
States and political subdivisions		2,644		(9	)		3		23,324		(262	)		20
Corporates		489,880		(10,649	)		396		360,516		(14,124	)		321
Residential mortgage-backed securities		32,725		(86	)		14		71,308		(1,647	)		41
Commercial mortgage-backed securities		31,129		(173	)		20		78,911		(1,463	)		77
Other asset-backed securities		19,363		(184	)		35		33,989		(571	)		41
Total fixed-maturity securities		584,735		(11,281	)				624,675		(18,903	)

As of March 31, 2019, the unrealized losses on our available-for-sale security portfolio were largely caused by interest rate sensitivity and, to a lesser extent, 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.  

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

	March 31, 2019				December 31, 2018
	Amortized cost		Fair value		Amortized cost		Fair value
	(In thousands)
Fixed-maturity securities in default	$	3	$	227	$	3	$	227

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

	Three months ended March 31,
	2019		2018
	(In thousands)
OTTI on fixed-maturity securities not in default	$	-	$	49
OTTI on fixed-maturity securities in default		-		-
OTTI on equity securities		-		-
Total OTTI recognized in earnings	$	-	$	49

No OTTI was recognized during the three months ended March 31, 2019 as we sold all securities that were identified during the period as other-than-temporarily impaired prior to March 31, 2019. Losses realized upon the sale of impaired securities were recognized in the gross losses from sales of available-for-sale securities component of net realized investment gains (losses).

OTTI recognized in earnings for available-for-sale securities were as follows:

	Three months ended March 31,
	2019		2018
	(In thousands)
Total OTTI 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	$	-	$	49
Less portion of OTTI recognized in accumulated other    comprehensive income (loss)		-		-
OTTI 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		-		49
OTTI recognized in earnings for securities which the    Company intends to sell or more-likely-than-not will be    required to sell before recovery		-		-
OTTI recognized in earnings	$	-	$	49

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

	Three months ended March 31,
	2019			2018
	(In thousands)
Cumulative OTTI recognized in net income for securities still      held, beginning of period	$	2,511		$	4,346
Additions for securities where no OTTI were recognized      prior to the beginning of the period		-			-
Additions for securities where OTTI have been recognized      prior to the beginning of the period		-			49
Reductions due to sales, maturities, calls, amortization or      increases in cash flows expected to be collected over the      remaining life of credit-impaired securities		(44	)		(97	)
Reductions for exchanges of securities previously impaired		-			-
Cumulative OTTI recognized in net income for securities      still held, end of period	$	2,467		$	4,298

As of March 31, 2019, no cumulative impairment losses have been recognized on the LLC Note held-to-maturity security.

Derivatives. 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 (loss) was $26.4 million as of March 31, 2019 and December 31, 2018. 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

3 Months Ended

Mar. 31, 2019

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. Invested assets recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on 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 levels:

• Level 1. Quoted prices for identical instruments in active markets. Level 1 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 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 and yield curves, 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; and certain mortgage- and asset-backed securities; and

• Level 3. Valuations derived from valuation techniques in which one or more significant inputs 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 mortgage-and asset-backed securities and equity 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 in the hierarchy) 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:

	March 31, 2019
	Level 1		Level 2		Level 3		Total
	(In thousands)
Fair value assets:
Available-for-sale fixed-maturity securities:
U.S. government and agencies	$	-	$	11,954	$	-	$	11,954
Foreign government		-		161,507		-		161,507
States and political subdivisions		-		69,724		-		69,724
Corporates		3,119		1,428,449		3		1,431,571
Residential mortgage-backed securities		-		203,269		185		203,454
Commercial mortgage-backed securities		-		129,856		-		129,856
Other asset-backed securities		-		80,636		-		80,636
Short-term investments		-		8,230		-		8,230
Total available-for-sale securities		3,119		2,093,625		188		2,096,932
Equity securities		36,630		1,025		193		37,848
Trading securities		-		26,556		-		26,556
Separate accounts		-		2,368,760		-		2,368,760
Total fair value assets	$	39,749	$	4,489,966	$	381	$	4,530,096
Fair value liabilities:
Separate accounts	$	-	$	2,368,760	$	-	$	2,368,760
Total fair value liabilities	$	-	$	2,368,760	$	-	$	2,368,760

	December 31, 2018
	Level 1		Level 2		Level 3		Total
	(In thousands)
Fair value assets:
Available-for-sale fixed-maturity securities:
U.S. government and agencies	$	-	$	12,233	$	-	$	12,233
Foreign government		-		158,112		-		158,112
States and political subdivisions		-		60,006		-		60,006
Corporates		2,869		1,431,346		3		1,434,218
Residential mortgage-backed securities		-		191,720		231		191,951
Commercial mortgage-backed securities		-		131,355		-		131,355
Other asset-backed securities		-		81,259		501		81,760
Short-term investments		-		8,171		-		8,171
Total available-for-sale securities		2,869		2,074,202		735		2,077,806
Equity securities		36,473		1,020		186		37,679
Trading securities		-		13,610		-		13,610
Separate accounts		-		2,195,501		-		2,195,501
Total fair value assets	$	39,342	$	4,284,333	$	921	$	4,324,596
Fair value liabilities:
Separate accounts	$	-	$	2,195,501	$	-	$	2,195,501

In estimating fair value of our investments, we use a third-party pricing service for 95% 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), liquidity and yield based on quality rating, average life and U.S. Treasury yields. All observable data inputs are corroborated by independent third-party data. We also corroborate pricing information provided by our third-party pricing service 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 as of 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 one or more of these input 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 U.S. 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 March 31, (1)
	2019			2018
	(In thousands)
Level 3 assets, beginning of period	$	921		$	567
Net unrealized gains (losses) included in other    comprehensive income		(6	)		(9	)
Realized gains (losses) and accretion (amortization)    recognized in earnings, including OTTI		8			18
Settlements		(44	)		(41	)
Transfers into Level 3		-			-
Transfers out of Level 3 (2)		(498	)		-
Level 3 assets, end of period	$	381		$	535

(1) Activities 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 months ended March 31, 2019, transfers out of Level 3 assets primarily consisted of newly issued fixed-maturity securities in the 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. There were no material transfers between Level 1 and Level 3 during the three months ended March 31, 2019 and 2018.

The carrying values and estimated fair values of our financial instruments were as follows:

	March 31, 2019				December 31, 2018
	Carrying value		Estimated fair value		Carrying value		Estimated fair value
	(In thousands)
Assets:
Fixed-maturity securities (available-for-sale)	$	2,088,702	$	2,088,702	$	2,069,635	$	2,069,635
Fixed-maturity security (held-to-maturity) (3)		1,036,110		1,058,428		970,390		945,331
Short-term investments (available-for-sale)		8,230		8,230		8,171		8,171
Equity securities		37,848		37,848		37,679		37,679
Trading securities		26,556		26,556		13,610		13,610
Policy loans (3)		30,783		30,783		31,501		31,501
Deposit asset underlying 10% coinsurance agreement (3)		230,982		230,982		228,974		228,974
Separate accounts		2,368,760		2,368,760		2,195,501		2,195,501
Liabilities:
Notes payable (1)  (2)	$	373,755	$	394,025	$	373,661	$	384,909
Surplus note (1)  (3)		1,035,421		1,058,428		969,685		945,331
Separate accounts		2,368,760		2,368,760		2,195,501		2,195,501

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

(2) Classified as a level 2 fair value measurement.

(3) Classified as a level 3 fair value measurement.

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.

Financial Instruments Recognized at Fair Value in the Balance Sheet. Estimated fair values of investments in available-for-sale fixed-maturity securities and short-term investments 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 and 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.

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Reinsurance

3 Months Ended

Mar. 31, 2019

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 were as follows:

	March 31, 2019			December 31, 2018
	(Dollars in thousands)
Direct life insurance in force	$	788,457,365		$	783,979,673
Amounts ceded to other companies		(685,589,156	)		(682,708,797	)
Net life insurance in force	$	102,868,209		$	101,270,876
Percentage of reinsured life insurance in force		87	%		87	%

Reinsurance recoverables includes ceded reserve balances and ceded claim liabilities. Reinsurance recoverables and financial strength ratings by reinsurer were as follows:

	March 31, 2019			December 31, 2018
	Reinsurance recoverables		A.M. Best rating	Reinsurance recoverables		A.M. Best rating
	(In thousands)
Pecan Re Inc. (1) (2)	$	2,756,881	NR	$	2,701,326	NR
SCOR Global Life Reinsurance Companies (3)		348,834	A+		348,109	A+
Munich Re of Malta (2) (5)		282,407	NR		276,154	NR
Swiss Re Life & Health America Inc. (4)		229,459	A+		234,643	A+
American Health and Life Insurance Company (2)		170,431	B+		170,628	B+
Munich American Reassurance Company		117,068	A+		114,604	A+
Korean Reinsurance Company		104,462	A		104,101	A
RGA Reinsurance Company		91,554	A+		90,989	A+
Hannover Life Reassurance Company		31,037	A+		31,729	A+
TOA Reinsurance Company		26,089	A		25,434	A
All other reinsurers		44,681	-		43,852	-
Reinsurance recoverables	$	4,202,903		$	4,141,569

NR – not rated

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

⁽²⁾ Reinsurance recoverables 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 recoverables 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 fully retroceded to Swiss Re Life & Health America Inc.

^{(5) This entity is rated AA- by S&P.}

Benefits and claims ceded to reinsurers during the three months ended March 31, 2019 and 2018 were $332.6 million and $340.3 million, respectively.

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Policy Claims and Other Benefits Payable

3 Months Ended

Mar. 31, 2019

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:

	Three months ended March 31,
	2019			2018
	(In thousands)
Policy claims and other benefits payable, beginning of period	$	313,862		$	307,401
Less reinsured policy claims and other benefits payable		318,653			322,137
Net balance, beginning of period		(4,791	)		(14,736	)
Incurred related to current year		47,973			47,787
Incurred related to prior years (1)		(2,095	)		(2,250	)
Total incurred		45,878			45,537
Claims paid related to current year, net of reinsured policy claims received		(135,225	)		(143,302	)
Reinsured policy claims received related to prior years, net of claims paid		13,795			23,287
Total paid		(121,430	)		(120,015	)
Foreign currency translation		160			(167	)
Net balance, end of period		(80,183	)		(89,381	)
Add reinsured policy claims and other benefits payable		388,605			397,700
Balance, end of period	$	308,422		$	308,319

^{(1) Includes the difference between our estimate of claims incurred but not yet reported as of 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 reported lag time experience.

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Stockholders' Equity

3 Months Ended

Mar. 31, 2019

Stockholders Equity Note [Abstract]

Stockholders' Equity

(7) Stockholders’ Equity

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

	Three months ended March 31,
	2019			2018
	(In thousands)
Common stock, beginning of period		42,694			44,251
Shares issued for stock options exercised		-			-
Shares of common stock issued upon lapse of restricted stock units (“RSUs”)		231			223
Common stock retired		(526	)		(521	)
Common stock, end of period		42,399			43,953

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 March 31, 2019, we had a total of 473,128 RSUs and 92,108 PSUs outstanding. The PSU outstanding balance is based on the targeted number of PSUs granted pursuant to the award agreement; however, the actual number of PSUs that vest could be higher or lower based on actual versus targeted performance. See Note 9 (Share-Based Transactions) for discussion of the PSU award structure.

On February 7, 2019, our Board of Directors authorized a share repurchase program for up to $275.0 million of our outstanding common stock for purchases through June 30, 2020 (the “share repurchase program”). Under the share repurchase program, we repurchased 473,138 shares of our common stock in the open market for an aggregate purchase price of $53.6 million through March 31, 2019. Approximately $221.4 million remains available for repurchases of our outstanding common stock under the share repurchase program as of March 31, 2019.

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Earnings Per Share

3 Months Ended

Mar. 31, 2019

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 was as follows:

	Three months ended March 31,
	2019			2018
	(In thousands, except per-share amounts)
Basic EPS:
Numerator:
Net income	$	79,165		$	65,715
Income attributable to unvested participating securities		(401	)		(425	)
Net income used in calculating basic EPS	$	78,764		$	65,290
Denominator:
Weighted-average vested shares		42,824			44,740
Basic EPS	$	1.84		$	1.46
Diluted EPS:
Numerator:
Net income	$	79,165		$	65,715
Income attributable to unvested participating securities		(400	)		(424	)
Net income used in calculating diluted EPS	$	78,765		$	65,291
Denominator:
Weighted-average vested shares		42,824			44,740
Dilutive effect of incremental shares to be issued for    contingently-issuable shares		118			115
Weighted-average shares used in calculating diluted EPS		42,942			44,855
Diluted EPS	$	1.83		$	1.46

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Share-Based Transactions

3 Months Ended

Mar. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Transactions

(9) Share-Based Transactions

The Company has outstanding equity awards under the Primerica, Inc. Second Amended and Restated 2010 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, and stock payment awards, as well as cash-based awards. In addition to time-based vesting requirements, awards granted under the OIP may also be subject to specified performance criteria. Since 2010, the Company has issued equity awards under the OIP to our management (officers and other key employees), non-employees who serve on our Board of Directors, and sales force leaders. For more information on equity awards granted under the OIP, see Note 14 (Share-Based Transactions) to our consolidated financial statements within our 2018 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. We defer and amortize the fair value of equity awards granted to the sales force in the same manner as other deferred policy acquisition costs for those awards that 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. All equity awards granted to the sales force that are not directly related to the successful acquisition of life insurance policies are recognized as expense as incurred, which is in the quarter granted and earned.

The impacts of equity awards granted are as follows:

	Three months ended March 31,
	2019		2018
	(In thousands)
Total equity awards expense recognized	$	10,883	$	11,502
Quarterly incentive awards expense deferred		2,279		2,494

On February 26, 2019, the Compensation Committee of our Board of Directors granted the following equity awards to employees as part of the annual approval of management incentive compensation:

• 73,817 RSUs awarded to management with a measurement-date fair value of $122.62 per unit that have time-based vesting requirements with equal and annual graded vesting over approximately three years subsequent to the grant date.

• 25,483 PSUs awarded under the OIP to our four top executives with a measurement-date fair value of $122.62 per unit. The PSUs will be earned on March 1, 2022 contingent upon the Company achieving a targeted annual average three-year return on adjusted equity (“ROAE”) for the period from January 1, 2019 through December 31, 2021. The actual number of common shares that will be issued will vary based on the actual ROAE relative to the targeted ROAE and can range from zero to 38,224 shares.  

All awards granted to employees on February 26, 2019 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, 2021, even if that employee retires prior to the completion of the three-year performance period.

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Commitments and Contingent Liabilities

3 Months Ended

Mar. 31, 2019

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 expiring on December 31, 2025. As of March 31, 2019, the amount of the LOC outstanding was $288.1 million. This amount will decline over the remaining term of the LOC to correspond with declines in the Regulation XXX reserves. As of March 31, 2019, the Company was in compliance with all financial covenants under the Credit Facility Agreement.

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 2018 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 unclaimed property audits by 30 jurisdictions, currently 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

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Other Comprehensive Income

(11) Other Comprehensive Income

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

	Three months ended March 31,
	2019		2018
	(In thousands)
Foreign currency translation adjustments:
Change in unrealized foreign currency translation gains (losses)    before income taxes	$	6,167	$	(8,401	)
Income tax expense (benefit) on unrealized foreign currency   translation gains (losses)		-		-
Change in unrealized foreign currency translation gains   (losses), net of income taxes	$	6,167	$	(8,401	)
Unrealized gain (losses) on available-for-sale securities:
Change in unrealized holding gains (losses) arising during    period before income taxes	$	46,200	$	(32,343	)
Income tax expense (benefit) on unrealized holding gains   (losses) arising during period		9,965		(6,850	)
Change in unrealized holding gains (losses) on available-for-sale   securities arising during period, net of income taxes		36,235		(25,493	)
Reclassification from accumulated OCI to net income for (gains)   losses realized on available-for-sale securities		65		(316	)
Income tax (expense) benefit on (gains) losses reclassified from   accumulated OCI to net income		14		(66	)
Reclassification from accumulated OCI to net income for (gains)   losses realized on available-for-sale securities, net of income   taxes		51		(250	)
Change in unrealized gains (losses) on available-for-sale   securities, net of income taxes and reclassification adjustment	$	36,286	$	(25,743	)

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Debt

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Debt

(12) Debt

Notes Payable. As of March 31, 2019, the Company had $375.0 million of publicly-traded, senior unsecured notes (the “Senior Notes”), with an annual interest rate of 4.75% that are scheduled to mature on July 15, 2022. As of March 31, 2019, we were in compliance with the covenants of the Senior Notes. No events of default occurred on the Senior Notes during the three months ended March 31, 2019.

Further discussion on the Company’s Senior Notes is included in Note 10 (Debt) to our consolidated financial statements within our 2018 Annual Report.

Surplus Note. As of March 31, 2019, the principal amount outstanding on the Surplus Note issued by Vidalia Re was $1.0 billion, which is equal to the principal amount of the LLC Note. The principal amount of both the Surplus Note and the LLC Note will fluctuate over time to coincide with the amount of policy reserves being 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%. Based on the estimated reserves for policies issued in 2011 through 2017 that have been ceded under the Vidalia Re Coinsurance Agreement, the principal amounts of the Surplus Note and the LLC Note are expected to reach $1.5 billion each. This financing arrangement is 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 LLC Note’s credit enhancement feature. The Parent Company has agreed to support Vidalia Re’s obligation to pay the credit enhancement fee incurred on the LLC Note.

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 2018 Annual Report.

Revolving Credit Facility. We maintain an unsecured $200.0 million revolving credit facility (“Revolving Credit Facility”) with a syndicate of commercial banks that has a scheduled termination date of December 19, 2022. Amounts outstanding under the Revolving Credit Facility bear interest at a periodic rate equal to LIBOR or the base rate, plus in either case an applicable margin. The Revolving Credit Facility also permits the issuance of letters of credit.  The applicable margins are based on our debt rating with such margins for LIBOR rate loans and letters of credit ranging from 1.125% to 1.625% per annum and for base rate loans ranging from 0.125% to 0.625% per annum. Under the Revolving Credit Facility, we incur a commitment fee that is payable quarterly in arrears and is determined by our debt rating. This commitment fee ranges from 0.125% to 0.225% per annum of the aggregate $200.0 million commitment of the lenders under the Revolving Credit Facility. As of March 31, 2019, no amounts have been drawn under the Revolving Credit Facility and we were in compliance with its covenants.  Furthermore, no events of default have occurred under the Revolving Credit Facility during the three months ended March 31, 2019.

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Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2019

Revenue From Contract With Customer [Abstract]

Revenue from Contract with Customers

(13) Revenue from Contracts with Customers

Our revenues from contracts with customers primarily include:

• Commissions and fees earned for the marketing and distribution of investment and savings products underwritten by mutual fund companies and annuity providers. For purposes of revenue recognition, mutual fund companies and annuity providers are considered the customers in marketing and distribution arrangements.

• Fees earned for investment advisory and administrative services within our managed investments programs.

• Account-based fees for transfer agent recordkeeping functions and non-bank custodial services.

• Fees associated with the distribution of other third-party financial products.  

• Other revenue from the sale of miscellaneous products and services including monthly subscription fees from the sales representatives for access to Primerica Online (“POL”), our primary sales force support tool.

Premiums from insurance contracts we underwrite, fees received from segregated funds insurance contracts, and income earned on our invested assets are excluded from the definition of revenues from contracts with customers in accordance with U.S. GAAP.

Further discussion on the Company’s revenues from contracts with customers and revenue recognition policies are included in Note 18 (Revenue from Contracts with Customers) to our consolidated financial statements within our 2018 Annual Report.

The disaggregation of our revenues from contracts with customers were as follows:

	Three months ended March 31,
	2019		2018
	(In thousands)
Term Life Insurance segment revenues:
Other, net	$	9,744	$	10,415
Total segment revenues from contracts with customers		9,744		10,415
Revenues from sources other than contracts with customers		287,099		259,894
Total Term Life Insurance segment revenues	$	296,843	$	270,309
Investment and Savings Products segment revenues:
Commissions and fees
Sales-based revenues	$	66,997	$	64,461
Asset-based revenues		59,754		59,540
Account-based revenues		19,613		20,595
Other, net		2,423		2,336
Total segment revenues from contracts with customers		148,787		146,932
Revenues from sources other than contracts     with customers (segregated funds)		13,885		15,109
Total Investment and Savings Products segment revenues	$	162,672	$	162,041
Corporate and Other Distributed Products segment revenues:
Commissions and fees (1)	$	7,066	$	7,122
Other, net		1,056		1,146
Total segment revenues from contracts with customers		8,122		8,268
Revenues from sources other than contracts with customers		27,350		19,305
Total Corporate and Other Distributed Products segment revenues	$	35,472	$	27,573

^{(1) Commissions and fees for the three months ended March 31, 2019 include $1.1 million attributable to performance obligations satisfied in a previous reporting period and represent the collection of variable consideration in the transaction price that had been previously constrained.}

We recognize revenue upon the satisfaction of the related performance obligation, unless the transaction price includes variable consideration that is constrained; in such case, we recognize revenue when the uncertainty associated with the constrained amount is subsequently resolved. Variable consideration is not treated as constrained to the extent it is probable that no significant reversal in the amount of cumulative revenue recognized will occur when the uncertainty associated with the variable consideration is resolved. We have no material obligations for refunds of commission and fees on contracts with customers subsequent to completion of our performance obligation.

Contract Balances. For revenue associated with ongoing renewal commissions we receive subsequent to the satisfaction of our performance obligation, we record a contract asset for the amount of ongoing renewal commissions we anticipate collecting in reporting periods subsequent to the sale or referral, less amounts that are constrained in other assets. The contract asset is reduced for commissions that are billed and become due receivables from product providers during the reporting period.

Activity in the contract asset account was as follows:

	Three months ended March 31,
	2019				2018
	(In thousands)
Balance, beginning of period	$	50,119		(1)	$	48,533
Current period sales, net of collection of renewal commissions		(28	)			(120	)
Balance, at the end of period	$	50,091			$	48,413

^{(1) Reclassed to Other assets from Agent balances, due premiums and other receivables in the accompanying Condensed Consolidated Balance Sheets to conform with current year reporting.}

No significant estimate adjustments were made to the contract asset and no impairment losses were recognized on the contract asset during the three months ended March 31, 2019.

Incremental costs to obtain or fulfill contracts, most notably sales commissions to the sales representatives, are not incurred prior to the recognition of the related revenue. Therefore, we have no assets recognized for incremental costs to obtain or fulfill contracts.

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Leases

3 Months Ended

Mar. 31, 2019

Lessee Disclosure [Abstract]

Leases

(14) Leases

We have operating leases for our executive office operations and other real estate leases of office space and finance leases for certain office equipment. Our leases have remaining lease terms of 1 year to 12 years, some of which include options to extend the leases for

up to 10 years, and some of which include options to terminate the leases within 1 year, exercisable at the Company’s discretion. Operating lease right-of-use assets and operating lease liabilities are presented separately in our condensed consolidated balance sheets.  As of March 31, 2019, finance right-of-use assets of $0.7 million and finance lease liabilities of $0.8 million were recorded within other assets and other liabilities, respectively, within our condensed consolidated balance sheets. The Company determines its lease liabilities, which are measured at the present value of future lease payments, using the Company’s incremental secured borrowing rate that is commensurate with the term of the underlying lease or the rate implicit in the lease if readily determinable.

The components of lease expense were as follows:

	Three months ended March 31,
	2019
	(In thousands)
Operating lease cost
Operating lease cost	$	1,914
Variable lease cost (includes taxes, common area maintenance and insurance)	$	156
Finance lease cost
Depreciation of finance lease assets	$	69
Interest on lease liabilities		10
Total lease cost	$	2,149

Other information related to leases was as follows:

	Three months ended March 31,
	2019
	(In thousands)
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases (1)	$	1,880
Operating cash flows from finance leases (1)		12
Financing cash flows from finance leases		70
	March 31, 2019
Weighted Average Remaining Lease Term
Operating leases	9  years
Finance leases	3  years
Weighted Average Discount Rate
Operating leases		5.4	%
Finance leases		4.6	%

⁽¹⁾Included in change in other operating assets and liabilities, net in the accompanying condensed consolidated statements of cash flows.

Future minimum lease payments under non-cancellable leases were as follows:

		Operating Leases		Finance Leases
Year Ended December 31,		(In thousands)
2019  (excluding the three months ended March 31, 2019)		$	5,681	$	233
	2020		7,254		287
	2021		7,124		232
	2022		7,189		64
	2023		7,195		4
Thereafter			35,650		-
Total minimum rental commitments for operating leases			70,093		820
Less imputed interest			13,381		57
Total lease liabilities		$	56,712	$	763

The following disclosures for the comparative periods presented in accordance with ASC 840 have been carried forward.

Total minimum rent expense for operating leases for the three months ended March 31, 2018 was $1.8 million. We had no contingent rent expense during the three months ended March 31, 2018.

As of December 31, 2018, the minimum aggregate rental commitments for operating leases were as follows:

		December 31, 2018
		(In thousands)
	2019	$	7,459
	2020		7,174
	2021		7,038
	2022		7,120
	2023		7,094
Thereafter			34,901
Total minimum rental commitments for operating leases		$	70,786

As of December 31, 2018, the aggregate balance of our capital lease liabilities was not material.

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

3 Months Ended

Mar. 31, 2019

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 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 March 31, 2019 and December 31, 2018, the statements of income, comprehensive income (loss), stockholders' equity and cash flows for the three months ended March 31, 2019 and 2018.  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, 2018 (“2018 Annual Report”).

Use of Estimates

Use of Estimates. 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 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”), future policy benefit reserves and corresponding amounts recoverable from reinsurers, 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 U.S. GAAP. 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 2018 Annual Report unless otherwise described.

New Accounting Principles

New Accounting Principles. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (ASC 842) (“ASC 842”), which requires lessees to recognize right-of-use operating lease assets and operating lease liabilities on the balance sheet. The Company adopted the amendments in ASC 842 on January 1, 2019 using the modified retrospective approach through a cumulative-effect adjustment to beginning retained earnings. The cumulative-effect adjustment to beginning retained earnings was zero. In addition, we elected the package of practical expedients permitted under ASC 842, which included not reassessing whether existing contracts contained leases and not reassessing the lease classification for existing leases. The effect of adopting ASC 842 resulted in an increase to both total assets and total liabilities of $52.7 million on January 1, 2019. The increase to both assets and liabilities is less than  1% of our total assets and total liabilities. The adjustment recognized upon the adoption of ASC 842 included the recognition of our operating lease obligations and corresponding right-of-use assets on our condensed consolidated balance sheet,

which mainly consist of our executive office operations and other real estate leases of office space. The adoption of ASC 842 did not have an effect on the Company’s results of operations or liquidity. The Company’s reporting for the comparative periods prior to adoption continues to be presented in the condensed consolidated financial statements in accordance with previous lease accounting guidance, Accounting Standards Codification Topic 840 – Leases (“ASC 840”). Refer to Note 14 (Leases) for more information on leases.

Future Application of Accounting Standards. In August 2018, the FASB issued Accounting Standards Update No. 2018-12, Financial Services—Insurance (Topic 944) — Targeted Improvements to the Accounting for Long-Duration Contracts (“ASU 2018-12”). The amendments in this update change accounting guidance for insurance companies that issue long-duration contracts, including term life insurance. ASU 2018-12 requires companies that issue long-duration insurance contracts to update assumptions used in measuring future policy benefits, including mortality, persistency, and disability rates, at least annually instead of locking those assumptions at contract inception and reflecting differences in assumptions and actual performance as the experience occurs. ASU 2018-12 also includes changes to how insurance companies that issue long-duration contracts amortize DAC and determine and update the discount rate assumptions used in measuring future policy benefits reserves while increasing the level of financial statement disclosures required. The amendments in ASU 2018-12 are scheduled to be effective for the Company beginning in 2021 as of the earliest period presented in the condensed consolidated financial statements. We anticipate that the adoption of ASU 2018-12 will have a pervasive impact on our consolidated financial statements and related disclosures and will require changes to certain of our processes, systems and controls. We are unable to determine the magnitude of its impact at this time as we are in the early stages of evaluating and implementing this standard.

In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (“ASU 2016-13”), Financial Instruments—Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments (“ASC 326”). ASC 326 introduces new guidance for accounting for credit losses on financial instruments within its scope, including reinsurance recoverables, by replacing the current approach that delays recognition until it is probable a loss has been incurred with a new approach that estimates an allowance for anticipated credit losses on the basis of an entity’s own expectations. The objective of the new approach for estimating credit losses is to require consideration of a broader range of forward-looking information, which is expected to result in earlier recognition of credit losses on financial instruments. Available-for-sale debt securities are excluded from the scope of financial instruments that require measurement of credit losses on the basis of a forward-looking expected loss estimate under ASC 326. The incurred probable loss approach for measuring credit losses on available-for-sale debt securities will remain under ASC 326, however, an entity will be allowed to reverse credit losses previously recognized in an allowance for available-for-sale debt securities (other than credit losses for securities an entity intends to sell or will more-likely-than-not be required to sell before recovery of amortized cost) in situations where the estimate of credit losses on those securities has declined.  The amendments in ASC 326 also preclude an entity from considering the length of time an available-for-sale debt security has been in an unrealized loss position to avoid recording a credit loss and removes the requirement to consider recoveries or declines in fair value after the balance sheet date. The amendments in ASC 326 are effective for the Company beginning in fiscal year 2020. The Company is currently in the process of evaluating its impact on the Company’s consolidated financial statements.

Recently-issued accounting guidance not discussed above is not applicable, is immaterial to our condensed consolidated financial statements, or did not or is not expected to have a material impact on our business.

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Segment and Geographical Information (Tables)

3 Months Ended

Mar. 31, 2019

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 March 31,
	2019			2018
	(In thousands)
Revenues:
Term life insurance segment	$	296,843		$	270,309
Investment and savings products segment		162,672			162,041
Corporate and other distributed products segment		35,472			27,573
Total revenues	$	494,987		$	459,923
Net investment income:
Term life insurance segment	$	4,444		$	3,089
Investment and savings products segment		-			-
Corporate and other distributed products segment		19,667			15,928
Total net investment income	$	24,111		$	19,017
Amortization of DAC:
Term life insurance segment	$	64,066		$	56,673
Investment and savings products segment		477			3,442
Corporate and other distributed products segment		85			50
Total amortization of DAC	$	64,628		$	60,165
Non-cash share-based compensation expense:
Term life insurance segment	$	1,872		$	2,174
Investment and savings products segment		1,454			1,193
Corporate and other distributed products segment		7,557			8,135
Total non-cash share-based compensation expense	$	10,883		$	11,502
Income (loss) before income taxes:
Term life insurance segment	$	70,339		$	59,621
Investment and savings products segment		42,684			39,984
Corporate and other distributed products segment		(10,655	)		(16,642	)
Total income before income taxes	$	102,368		$	82,963

Total Assets by Segment

Total assets by segment were as follows:

	March 31, 2019		December 31, 2018
	(In thousands)
Assets:
Term life insurance segment	$	6,432,683	$	6,322,555
Investment and savings products segment (1)		2,480,973		2,298,238
Corporate and other distributed products segment		4,162,973		3,974,255
Total assets	$	13,076,629	$	12,595,048

_______________

⁽¹⁾ The Investment and Savings Products segment includes assets held in separate accounts. Excluding separate accounts, the Investment and Savings Products segment assets were $112.3 million and $102.8 million as of March 31, 2019 and December 31, 2018, respectively.

Long Lived Assets and Continuing 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 March 31,
	2019		2018
	(In thousands)
Revenues by country:
United States	$	419,992	$	383,796
Canada		74,995		76,127
Total revenues	$	494,987	$	459,923
Income before income taxes by country:
United States	$	80,735	$	63,214
Canada		21,633		19,749
Total income before income taxes	$	102,368	$	82,963

	March 31, 2019		December 31, 2018
	(In thousands)
Long-lived assets by country:
United States	$	31,288	$	30,999
Canada		5,073		4,997
Total long-lived assets	$	36,361	$	35,996

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Investments (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Investments Debt and Equity Securities [Line Items]

Schedule of Available-for-sale Securities

The period-end amortized cost, gross unrealized gains and losses, and fair value of available-for-sale securities were as follows:

	March 31, 2019
	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	$	11,774	$	220	$	(40	)	$	11,954
Foreign government		155,710		5,975		(178	)		161,507
States and political subdivisions		67,903		1,945		(124	)		69,724
Corporates		1,407,274		30,372		(6,075	)		1,431,571
Residential mortgage-backed securities		200,259		3,695		(500	)		203,454
Commercial mortgage-backed securities		128,220		2,391		(755	)		129,856
Other asset-backed securities		80,484		456		(304	)		80,636
Total fixed-maturity securities(1)		2,051,624		45,054		(7,976	)		2,088,702
Short-term investments		8,230		-		-			8,230
Total fixed-maturity and short-term investments	$	2,059,854	$	45,054	$	(7,976	)	$	2,096,932

^{(1) Includes $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 (loss).}

	December 31, 2018
	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	$	12,115	$	176	$	(58	)	$	12,233
Foreign government		155,723		3,347		(958	)		158,112
States and political subdivisions		59,075		1,202		(271	)		60,006
Corporates		1,447,075		11,916		(24,773	)		1,434,218
Residential mortgage-backed securities		191,245		2,439		(1,733	)		191,951
Commercial mortgage-backed securities		131,279		1,712		(1,636	)		131,355
Other asset-backed securities		82,310		205		(755	)		81,760
Total fixed-maturity securities(1)		2,078,822		20,997		(30,184	)		2,069,635
Short-term investments		8,171		-		-			8,171
Total fixed-maturity and short-term investments	$	2,086,993	$	20,997	$	(30,184	)	$	2,077,806

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

Fixed-maturity Securities Classified by Contractual Maturity Date

The scheduled maturity distribution of the available-for-sale fixed-maturity portfolio as of March 31, 2019 was as follows:

	Amortized cost		Fair value
	(In thousands)
Due in one year or less	$	195,958	$	197,079
Due after one year through five years		880,992		896,193
Due after five years through 10 years		504,736		514,884
Due after 10 years		60,975		66,600
		1,642,661		1,674,756
Mortgage- and asset-backed securities		408,963		413,946
Total AFS fixed-maturity securities	$	2,051,624	$	2,088,702

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:

	March 31, 2019			December 31, 2018
	(In thousands)
Net unrealized investment gains (losses) on available-for-sale securities   including OTTI:
Available-for-sale securities	$	37,078		$	(9,187	)
OTTI		134			147
Net unrealized investment gains (losses) on available-for-sale securities   excluding OTTI		37,212			(9,040	)
Deferred income taxes		(8,190	)		1,787
Net unrealized investment gains (losses) on available-for-sale securities  excluding OTTI, net of tax	$	29,022		$	(7,253	)

Costs and Fair Value of Fixed-Maturity Securities Classified as Trading Securities

The cost and fair value of the fixed-maturity securities classified as trading securities were as follows:

	March 31, 2019				December 31, 2018
	Cost		Fair value		Cost		Fair value
	(In thousands)
Fixed-maturity securities	$	26,502	$	26,556	$	13,597	$	13,610

Net Investment Income

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

	Three months ended March 31,
	2019			2018
	(In thousands)
Fixed-maturity securities (available-for-sale)	$	20,333		$	19,288
Fixed-maturity security (held-to-maturity)		10,674			8,373
Equity securities		487			513
Policy loans and other invested assets		320			279
Cash and cash equivalents		1,203			718
Total return on deposit asset underlying 10% coinsurance   agreement(1)		3,902			(107	)
Gross investment income		36,919			29,064
Investment expenses		(2,134	)		(1,674	)
Investment income net of investment expenses		34,785			27,390
Interest expense on surplus note		(10,674	)		(8,373	)
Net investment income	$	24,111		$	19,017

^{(1) Includes $2.1 million and $(1.3) million of net gains (losses) recognized for the change in fair value of the deposit asset underlying the 10% coinsurance agreement for the three months ended March 31, 2019 and 2018, respectively.}

Schedule of Net Realized Investment Gains and Losses Recognized in Net Income

The components of net realized investment gains (losses) recognized in net income as well as details on gross realized investment gains and losses were as follows:

	Three months ended March 31,
	2019			2018
	(In thousands)
Net realized investment gains (losses):
Gross gains from sales of available-for-sale securities	$	178		$	383
Gross losses from sales of available-for-sale securities		(243	)		(18	)
OTTI losses of available-for-sale securities		-			(49	)
Net gains (losses) recognized in net income during   the period on equity securities		2,901			(1,945	)
Gains (losses) from bifurcated options		-			(27	)
Gains (losses) on trading securities		11			-
Net realized investment gains (losses)		2,847			(1,656	)

Schedule of Proceeds from Sales or Other Redemptions of Available-for-Sale Securities

The proceeds from sales or other redemptions of available-for-sale securities were as follows:

	Three months ended March 31,
	2019		2018
	(In thousands)
Proceeds from sales or other redemptions	$	115,439	$	119,982

Schedule of Unrealized Net Gains (Losses) Recognized in NI on Equity Securities Still Held at Period-End

The components of net gains (losses) recognized in net income on equity securities still held as of period-end were as follows:

	Three months ended March 31,
	2019			2018
	(In thousands)
Net gains (losses) recognized on equity securities	$	2,901		$	(1,945	)
Less: Net gains (losses) recognized on equity securities sold		(254	)		-
Net gains (losses) recognized in net income on equity   securities still held as of period-end	$	3,155		$	(1,945	)

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:

	March 31, 2019
	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	$	121	$	0			1	$	6,098	$	(40	)		6
Foreign government		1,531		(4	)		1		23,679		(174	)		27
States and political subdivisions		-		-			-		19,105		(124	)		17
Corporates		51,358		(713	)		40		327,399		(5,362	)		276
Residential mortgage-backed securities		5,969		(14	)		6		50,620		(486	)		29
Commercial mortgage-backed securities		3,119		(11	)		5		70,052		(744	)		69
Other asset-backed securities		7,713		(48	)		20		31,908		(256	)		42
Total fixed-maturity securities	$	69,811	$	(790	)			$	528,861	$	(7,186	)

	December 31, 2018
	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	$	1,668	$	(10	)		1	$	4,541	$	(48	)		6
Foreign government		7,326		(170	)		7		52,086		(788	)		54
States and political subdivisions		2,644		(9	)		3		23,324		(262	)		20
Corporates		489,880		(10,649	)		396		360,516		(14,124	)		321
Residential mortgage-backed securities		32,725		(86	)		14		71,308		(1,647	)		41
Commercial mortgage-backed securities		31,129		(173	)		20		78,911		(1,463	)		77
Other asset-backed securities		19,363		(184	)		35		33,989		(571	)		41
Total fixed-maturity securities		584,735		(11,281	)				624,675		(18,903	)

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:

	March 31, 2019				December 31, 2018
	Amortized cost		Fair value		Amortized cost		Fair value
	(In thousands)
Fixed-maturity securities in default	$	3	$	227	$	3	$	227

OTTI in Earnings on Available-for-sale Securities

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

	Three months ended March 31,
	2019		2018
	(In thousands)
OTTI on fixed-maturity securities not in default	$	-	$	49
OTTI on fixed-maturity securities in default		-		-
OTTI on equity securities		-		-
Total OTTI recognized in earnings	$	-	$	49

Schedule of OTTI Recognized in Earnings for Available-for-sale Securities

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

	Three months ended March 31,
	2019			2018
	(In thousands)
Cumulative OTTI recognized in net income for securities still      held, beginning of period	$	2,511		$	4,346
Additions for securities where no OTTI were recognized      prior to the beginning of the period		-			-
Additions for securities where OTTI have been recognized      prior to the beginning of the period		-			49
Reductions due to sales, maturities, calls, amortization or      increases in cash flows expected to be collected over the      remaining life of credit-impaired securities		(44	)		(97	)
Reductions for exchanges of securities previously impaired		-			-
Cumulative OTTI recognized in net income for securities      still held, end of period	$	2,467		$	4,298

Available-for-Sale [Member]

Schedule of Investments Debt and Equity Securities [Line Items]

Schedule of OTTI Recognized in Earnings for Available-for-sale Securities

OTTI recognized in earnings for available-for-sale securities were as follows:

	Three months ended March 31,
	2019		2018
	(In thousands)
Total OTTI 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	$	-	$	49
Less portion of OTTI recognized in accumulated other    comprehensive income (loss)		-		-
OTTI 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		-		49
OTTI recognized in earnings for securities which the    Company intends to sell or more-likely-than-not will be    required to sell before recovery		-		-
OTTI recognized in earnings	$	-	$	49

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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2019

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:

	March 31, 2019
	Level 1		Level 2		Level 3		Total
	(In thousands)
Fair value assets:
Available-for-sale fixed-maturity securities:
U.S. government and agencies	$	-	$	11,954	$	-	$	11,954
Foreign government		-		161,507		-		161,507
States and political subdivisions		-		69,724		-		69,724
Corporates		3,119		1,428,449		3		1,431,571
Residential mortgage-backed securities		-		203,269		185		203,454
Commercial mortgage-backed securities		-		129,856		-		129,856
Other asset-backed securities		-		80,636		-		80,636
Short-term investments		-		8,230		-		8,230
Total available-for-sale securities		3,119		2,093,625		188		2,096,932
Equity securities		36,630		1,025		193		37,848
Trading securities		-		26,556		-		26,556
Separate accounts		-		2,368,760		-		2,368,760
Total fair value assets	$	39,749	$	4,489,966	$	381	$	4,530,096
Fair value liabilities:
Separate accounts	$	-	$	2,368,760	$	-	$	2,368,760
Total fair value liabilities	$	-	$	2,368,760	$	-	$	2,368,760

	December 31, 2018
	Level 1		Level 2		Level 3		Total
	(In thousands)
Fair value assets:
Available-for-sale fixed-maturity securities:
U.S. government and agencies	$	-	$	12,233	$	-	$	12,233
Foreign government		-		158,112		-		158,112
States and political subdivisions		-		60,006		-		60,006
Corporates		2,869		1,431,346		3		1,434,218
Residential mortgage-backed securities		-		191,720		231		191,951
Commercial mortgage-backed securities		-		131,355		-		131,355
Other asset-backed securities		-		81,259		501		81,760
Short-term investments		-		8,171		-		8,171
Total available-for-sale securities		2,869		2,074,202		735		2,077,806
Equity securities		36,473		1,020		186		37,679
Trading securities		-		13,610		-		13,610
Separate accounts		-		2,195,501		-		2,195,501
Total fair value assets	$	39,342	$	4,284,333	$	921	$	4,324,596
Fair value liabilities:
Separate accounts	$	-	$	2,195,501	$	-	$	2,195,501

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 March 31, (1)
	2019			2018
	(In thousands)
Level 3 assets, beginning of period	$	921		$	567
Net unrealized gains (losses) included in other    comprehensive income		(6	)		(9	)
Realized gains (losses) and accretion (amortization)    recognized in earnings, including OTTI		8			18
Settlements		(44	)		(41	)
Transfers into Level 3		-			-
Transfers out of Level 3 (2)		(498	)		-
Level 3 assets, end of period	$	381		$	535

(1) Activities 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 months ended March 31, 2019, transfers out of Level 3 assets primarily consisted of newly issued fixed-maturity securities in the previous quarter for which observable inputs, most notably quoted prices, used to derive valuations became readily available.

Carrying Values and Estimated Fair Values of Financial Instruments

The carrying values and estimated fair values of our financial instruments were as follows:

	March 31, 2019				December 31, 2018
	Carrying value		Estimated fair value		Carrying value		Estimated fair value
	(In thousands)
Assets:
Fixed-maturity securities (available-for-sale)	$	2,088,702	$	2,088,702	$	2,069,635	$	2,069,635
Fixed-maturity security (held-to-maturity) (3)		1,036,110		1,058,428		970,390		945,331
Short-term investments (available-for-sale)		8,230		8,230		8,171		8,171
Equity securities		37,848		37,848		37,679		37,679
Trading securities		26,556		26,556		13,610		13,610
Policy loans (3)		30,783		30,783		31,501		31,501
Deposit asset underlying 10% coinsurance agreement (3)		230,982		230,982		228,974		228,974
Separate accounts		2,368,760		2,368,760		2,195,501		2,195,501
Liabilities:
Notes payable (1)  (2)	$	373,755	$	394,025	$	373,661	$	384,909
Surplus note (1)  (3)		1,035,421		1,058,428		969,685		945,331
Separate accounts		2,368,760		2,368,760		2,195,501		2,195,501

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

(2) Classified as a level 2 fair value measurement.

(3) Classified as a level 3 fair value measurement.

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Reinsurance (Tables)

3 Months Ended

Mar. 31, 2019

Reinsurance Disclosures [Abstract]

In-force Life Insurance

Details on in-force life insurance were as follows:

	March 31, 2019			December 31, 2018
	(Dollars in thousands)
Direct life insurance in force	$	788,457,365		$	783,979,673
Amounts ceded to other companies		(685,589,156	)		(682,708,797	)
Net life insurance in force	$	102,868,209		$	101,270,876
Percentage of reinsured life insurance in force		87	%		87	%

Reinsurance Recoverables and Financial Strength Ratings by Reinsurer

Reinsurance recoverables includes ceded reserve balances and ceded claim liabilities. Reinsurance recoverables and financial strength ratings by reinsurer were as follows:

	March 31, 2019			December 31, 2018
	Reinsurance recoverables		A.M. Best rating	Reinsurance recoverables		A.M. Best rating
	(In thousands)
Pecan Re Inc. (1) (2)	$	2,756,881	NR	$	2,701,326	NR
SCOR Global Life Reinsurance Companies (3)		348,834	A+		348,109	A+
Munich Re of Malta (2) (5)		282,407	NR		276,154	NR
Swiss Re Life & Health America Inc. (4)		229,459	A+		234,643	A+
American Health and Life Insurance Company (2)		170,431	B+		170,628	B+
Munich American Reassurance Company		117,068	A+		114,604	A+
Korean Reinsurance Company		104,462	A		104,101	A
RGA Reinsurance Company		91,554	A+		90,989	A+
Hannover Life Reassurance Company		31,037	A+		31,729	A+
TOA Reinsurance Company		26,089	A		25,434	A
All other reinsurers		44,681	-		43,852	-
Reinsurance recoverables	$	4,202,903		$	4,141,569

NR – not rated

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

⁽²⁾ Reinsurance recoverables 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 recoverables 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 fully retroceded to Swiss Re Life & Health America Inc.

^{(5) This entity is rated AA- by S&P.}

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Policy Claims and Other Benefits Payable (Tables)

3 Months Ended

Mar. 31, 2019

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:

	Three months ended March 31,
	2019			2018
	(In thousands)
Policy claims and other benefits payable, beginning of period	$	313,862		$	307,401
Less reinsured policy claims and other benefits payable		318,653			322,137
Net balance, beginning of period		(4,791	)		(14,736	)
Incurred related to current year		47,973			47,787
Incurred related to prior years (1)		(2,095	)		(2,250	)
Total incurred		45,878			45,537
Claims paid related to current year, net of reinsured policy claims received		(135,225	)		(143,302	)
Reinsured policy claims received related to prior years, net of claims paid		13,795			23,287
Total paid		(121,430	)		(120,015	)
Foreign currency translation		160			(167	)
Net balance, end of period		(80,183	)		(89,381	)
Add reinsured policy claims and other benefits payable		388,605			397,700
Balance, end of period	$	308,422		$	308,319

^{(1) Includes the difference between our estimate of claims incurred but not yet reported as of period-end and the actual incurred claims reported after period-end.}

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Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2019

Stockholders Equity Note [Abstract]

Reconciliation of Number of Shares of Common Stock

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

	Three months ended March 31,
	2019			2018
	(In thousands)
Common stock, beginning of period		42,694			44,251
Shares issued for stock options exercised		-			-
Shares of common stock issued upon lapse of restricted stock units (“RSUs”)		231			223
Common stock retired		(526	)		(521	)
Common stock, end of period		42,399			43,953

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Calculation of Basic and Diluted Earnings Per Share

The calculation of basic and diluted EPS was as follows:

	Three months ended March 31,
	2019			2018
	(In thousands, except per-share amounts)
Basic EPS:
Numerator:
Net income	$	79,165		$	65,715
Income attributable to unvested participating securities		(401	)		(425	)
Net income used in calculating basic EPS	$	78,764		$	65,290
Denominator:
Weighted-average vested shares		42,824			44,740
Basic EPS	$	1.84		$	1.46
Diluted EPS:
Numerator:
Net income	$	79,165		$	65,715
Income attributable to unvested participating securities		(400	)		(424	)
Net income used in calculating diluted EPS	$	78,765		$	65,291
Denominator:
Weighted-average vested shares		42,824			44,740
Dilutive effect of incremental shares to be issued for    contingently-issuable shares		118			115
Weighted-average shares used in calculating diluted EPS		42,942			44,855
Diluted EPS	$	1.83		$	1.46

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Share-Based Transactions (Tables)

3 Months Ended

Mar. 31, 2019

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 March 31,
	2019		2018
	(In thousands)
Total equity awards expense recognized	$	10,883	$	11,502
Quarterly incentive awards expense deferred		2,279		2,494

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Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

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

	Three months ended March 31,
	2019		2018
	(In thousands)
Foreign currency translation adjustments:
Change in unrealized foreign currency translation gains (losses)    before income taxes	$	6,167	$	(8,401	)
Income tax expense (benefit) on unrealized foreign currency   translation gains (losses)		-		-
Change in unrealized foreign currency translation gains   (losses), net of income taxes	$	6,167	$	(8,401	)
Unrealized gain (losses) on available-for-sale securities:
Change in unrealized holding gains (losses) arising during    period before income taxes	$	46,200	$	(32,343	)
Income tax expense (benefit) on unrealized holding gains   (losses) arising during period		9,965		(6,850	)
Change in unrealized holding gains (losses) on available-for-sale   securities arising during period, net of income taxes		36,235		(25,493	)
Reclassification from accumulated OCI to net income for (gains)   losses realized on available-for-sale securities		65		(316	)
Income tax (expense) benefit on (gains) losses reclassified from   accumulated OCI to net income		14		(66	)
Reclassification from accumulated OCI to net income for (gains)   losses realized on available-for-sale securities, net of income   taxes		51		(250	)
Change in unrealized gains (losses) on available-for-sale   securities, net of income taxes and reclassification adjustment	$	36,286	$	(25,743	)

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Revenue from Contracts with Customers (Tables)

3 Months Ended

Mar. 31, 2019

Revenue From Contract With Customer [Abstract]

Summary of Disaggregation of Revenues from Contracts

The disaggregation of our revenues from contracts with customers were as follows:

	Three months ended March 31,
	2019		2018
	(In thousands)
Term Life Insurance segment revenues:
Other, net	$	9,744	$	10,415
Total segment revenues from contracts with customers		9,744		10,415
Revenues from sources other than contracts with customers		287,099		259,894
Total Term Life Insurance segment revenues	$	296,843	$	270,309
Investment and Savings Products segment revenues:
Commissions and fees
Sales-based revenues	$	66,997	$	64,461
Asset-based revenues		59,754		59,540
Account-based revenues		19,613		20,595
Other, net		2,423		2,336
Total segment revenues from contracts with customers		148,787		146,932
Revenues from sources other than contracts     with customers (segregated funds)		13,885		15,109
Total Investment and Savings Products segment revenues	$	162,672	$	162,041
Corporate and Other Distributed Products segment revenues:
Commissions and fees (1)	$	7,066	$	7,122
Other, net		1,056		1,146
Total segment revenues from contracts with customers		8,122		8,268
Revenues from sources other than contracts with customers		27,350		19,305
Total Corporate and Other Distributed Products segment revenues	$	35,472	$	27,573

^{(1) Commissions and fees for the three months ended March 31, 2019 include $1.1 million attributable to performance obligations satisfied in a previous reporting period and represent the collection of variable consideration in the transaction price that had been previously constrained.}

Summary of Contract Asset Account

Activity in the contract asset account was as follows:

	Three months ended March 31,
	2019				2018
	(In thousands)
Balance, beginning of period	$	50,119		(1)	$	48,533
Current period sales, net of collection of renewal commissions		(28	)			(120	)
Balance, at the end of period	$	50,091			$	48,413

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Leases (Tables)

3 Months Ended

Mar. 31, 2019

Lessee Disclosure [Abstract]

Schedule of Components of Lease Expense

The components of lease expense were as follows:

	Three months ended March 31,
	2019
	(In thousands)
Operating lease cost
Operating lease cost	$	1,914
Variable lease cost (includes taxes, common area maintenance and insurance)	$	156
Finance lease cost
Depreciation of finance lease assets	$	69
Interest on lease liabilities		10
Total lease cost	$	2,149

Schedule of Other Information Related to Leases

Other information related to leases was as follows:

	Three months ended March 31,
	2019
	(In thousands)
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases (1)	$	1,880
Operating cash flows from finance leases (1)		12
Financing cash flows from finance leases		70
	March 31, 2019
Weighted Average Remaining Lease Term
Operating leases	9  years
Finance leases	3  years
Weighted Average Discount Rate
Operating leases		5.4	%
Finance leases		4.6	%

⁽¹⁾Included in change in other operating assets and liabilities, net in the accompanying condensed consolidated statements of cash flows.

Schedule of Maturities of Operating and Liabilities Finance Leases

Future minimum lease payments under non-cancellable leases were as follows:

		Operating Leases		Finance Leases
Year Ended December 31,		(In thousands)
2019  (excluding the three months ended March 31, 2019)		$	5,681	$	233
	2020		7,254		287
	2021		7,124		232
	2022		7,189		64
	2023		7,195		4
Thereafter			35,650		-
Total minimum rental commitments for operating leases			70,093		820
Less imputed interest			13,381		57
Total lease liabilities		$	56,712	$	763

Schedule of Minimum Rental Commitments for Operating Leases

As of December 31, 2018, the minimum aggregate rental commitments for operating leases were as follows:

		December 31, 2018
		(In thousands)
	2019	$	7,459
	2020		7,174
	2021		7,038
	2022		7,120
	2023		7,094
Thereafter			34,901
Total minimum rental commitments for operating leases		$	70,786

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Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	Jan. 01, 2019	Mar. 31, 2019
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]
Operating Lease, Right-of-Use Asset		$ 50,506
Operating Lease, Liability		$ 56,712
Accounting Standards Update 2016-02 [Member]
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]
Cumulative effect from the adoption of new accounting standards, net	$ 0
Operating Lease, Right-of-Use Asset	52,700
Operating Lease, Liability	$ 52,700
Accounting Standards Update 2016-02 [Member] | Maximum [Member]
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]
Percentage of total assets and total liabilities impacted by adopting new accounting standard	1.00%

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Segment and Geographical Information - Narrative (Details)	3 Months Ended
	Mar. 31, 2019 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
		Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Segment Reporting Information [Line Items]
Revenues		$ 494,987	$ 459,923
Net investment income		24,111	19,017
Amortization of deferred policy acquisition costs		64,628	60,165
Non-cash share-based compensation expense		10,883	11,502
Income (loss) before income taxes		102,368	82,963
Assets		13,076,629		$ 12,595,048
Term Life Insurance Segment [Member]
Segment Reporting Information [Line Items]
Revenues		296,843	270,309
Net investment income		4,444	3,089
Amortization of deferred policy acquisition costs		64,066	56,673
Non-cash share-based compensation expense		1,872	2,174
Income (loss) before income taxes		70,339	59,621
Assets		6,432,683		6,322,555
Investment and Savings Products Segment [Member]
Segment Reporting Information [Line Items]
Revenues		162,672	162,041
Amortization of deferred policy acquisition costs		477	3,442
Non-cash share-based compensation expense		1,454	1,193
Income (loss) before income taxes		42,684	39,984
Assets	[1]	2,480,973		2,298,238
Corporate and Other Distributed Products Segment [Member]
Segment Reporting Information [Line Items]
Revenues		35,472	27,573
Net investment income		19,667	15,928
Amortization of deferred policy acquisition costs		85	50
Non-cash share-based compensation expense		7,557	8,135
Income (loss) before income taxes		(10,655)	$ (16,642)
Assets		$ 4,162,973		$ 3,974,255

[1] The Investment and Savings Products segment includes assets held in separate accounts. Excluding separate accounts, the Investment and Savings Products segment assets were $112.3 million and $102.8 million as of March 31, 2019 and December 31, 2018, respectively.

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Segment and Geographical Information - Summary of Assets and Profit or Loss by Segment (Parenthetical) (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Investment and Savings Products Segment [Member]
Segment Reporting Information [Line Items]
Assets, excluding separate account assets	$ 112.3	$ 102.8

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Segment and Geographical Information - Long Lived Assets and Continuing Operations by Country (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues	$ 494,987	$ 459,923
Income (loss) before income taxes	102,368	82,963
Long-lived assets	36,361		$ 35,996
United States [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues	419,992	383,796
Income (loss) before income taxes	80,735	63,214
Long-lived assets	31,288		30,999
Canada [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues	74,995	76,127
Income (loss) before income taxes	21,633	$ 19,749
Long-lived assets	$ 5,073		$ 4,997

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Investments - Schedule of Available-for-sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2019		Dec. 31, 2018
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale debt securities, amortized cost basis	$ 2,059,854		$ 2,086,993
Available-for-sale debt securities gross unrealized gain	45,054		20,997
Available-for-sale debt securities, gross unrealized loss	(7,976)		(30,184)
Available-for-sale debt securities, at fair value	2,096,932		2,077,806
Fixed-maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale debt securities, amortized cost basis	2,051,624	[1]	2,078,822	[2]
Available-for-sale debt securities gross unrealized gain	45,054	[1]	20,997	[2]
Available-for-sale debt securities, gross unrealized loss	(7,976)	[1]	(30,184)	[2]
Available-for-sale debt securities, at fair value	2,088,702	[1]	2,069,635	[2]
Short-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale debt securities, amortized cost basis	8,230		8,171
Available-for-sale debt securities, at fair value	8,230		8,171
U.S. Government and Agencies [Member] | Fixed-maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale debt securities, amortized cost basis	11,774		12,115
Available-for-sale debt securities gross unrealized gain	220		176
Available-for-sale debt securities, gross unrealized loss	(40)		(58)
Available-for-sale debt securities, at fair value	11,954		12,233
Foreign Government [Member] | Fixed-maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale debt securities, amortized cost basis	155,710		155,723
Available-for-sale debt securities gross unrealized gain	5,975		3,347
Available-for-sale debt securities, gross unrealized loss	(178)		(958)
Available-for-sale debt securities, at fair value	161,507		158,112
States and Political Subdivisions [Member] | Fixed-maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale debt securities, amortized cost basis	67,903		59,075
Available-for-sale debt securities gross unrealized gain	1,945		1,202
Available-for-sale debt securities, gross unrealized loss	(124)		(271)
Available-for-sale debt securities, at fair value	69,724		60,006
Corporates [Member] | Fixed-maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale debt securities, amortized cost basis	1,407,274		1,447,075
Available-for-sale debt securities gross unrealized gain	30,372		11,916
Available-for-sale debt securities, gross unrealized loss	(6,075)		(24,773)
Available-for-sale debt securities, at fair value	1,431,571		1,434,218
Residential Mortgage-backed Securities [Member] | Fixed-maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale debt securities, amortized cost basis	200,259		191,245
Available-for-sale debt securities gross unrealized gain	3,695		2,439
Available-for-sale debt securities, gross unrealized loss	(500)		(1,733)
Available-for-sale debt securities, at fair value	203,454		191,951
Commercial Mortgage-backed Securities [Member] | Fixed-maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale debt securities, amortized cost basis	128,220		131,279
Available-for-sale debt securities gross unrealized gain	2,391		1,712
Available-for-sale debt securities, gross unrealized loss	(755)		(1,636)
Available-for-sale debt securities, at fair value	129,856		131,355
Other Asset-backed Securities [Member] | Fixed-maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale debt securities, amortized cost basis	80,484		82,310
Available-for-sale debt securities gross unrealized gain	456		205
Available-for-sale debt securities, gross unrealized loss	(304)		(755)
Available-for-sale debt securities, at fair value	$ 80,636		$ 81,760

[1] Includes $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 (loss).

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

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Investments - Schedule of Available-for-sale Securities (Parenthetical) (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
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	Mar. 31, 2019		Dec. 31, 2018
Available-for-sale Securities, Debt Maturities [Abstract]
Available-for-sale debt securities, amortized cost basis	$ 2,059,854		$ 2,086,993
Total AFS fixed-maturity securities	2,096,932		2,077,806
Fixed-maturity Securities [Member]
Available-for-sale Securities, Debt Maturities [Abstract]
Due in one year or less, amortized cost	195,958
Due after one year through five years, amortized cost	880,992
Due after five years through 10 years, amortized cost	504,736
Due after 10 years, amortized cost	60,975
Total fixed-maturity securities with single maturity dates, amortized cost	1,642,661
Mortgage and asset-backed securities, amortized cost	408,963
Available-for-sale debt securities, amortized cost basis	2,051,624	[1]	2,078,822	[2]
Due in one year or less, fair value	197,079
Due after one year through five years, fair value	896,193
Due after five years through 10 years, fair value	514,884
Due after 10 years, fair value	66,600
Total fixed-maturity securities with single maturity dates, fair value	1,674,756
Mortgage and asset-backed securities, fair value	413,946
Total AFS fixed-maturity securities	$ 2,088,702	[1]	$ 2,069,635	[2]

[1] Includes $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 (loss).

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

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Investments - Net Effect on Stockholders' Equity of Unrealized Gains and Losses on Available-for-sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax [Abstract]
Net unrealized investment gains (losses) on available-for-sale securities including OTTI, Available-for-sale securities	$ 37,078	$ (9,187)
OTTI	134	147
Net unrealized investment gains (losses) on available-for-sale securities excluding OTTI	37,212	(9,040)
Deferred income taxes	(8,190)	1,787
Net unrealized investment gains (losses) on available-for-sale securities excluding OTTI, net of tax	$ 29,022	$ (7,253)

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Investments - Costs and Fair Value of Fixed-Maturity Securities Classified as Trading Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Schedule Of Trading Securities And Other Trading Assets [Line Items]
Total trading securities, cost	$ 26,502	$ 13,597
Total trading securities, Fair value	26,556	13,610
Fixed-maturity Securities [Member]
Schedule Of Trading Securities And Other Trading Assets [Line Items]
Total trading securities, cost	26,502	13,597
Total trading securities, Fair value	$ 26,556	$ 13,610

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Investments - Held-to-maturity Security - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Schedule Of Held To Maturity Securities [Line Items]
Held-to-maturity debt security estimated unrealized holding gain	$ 22.3
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	Mar. 31, 2019	Dec. 31, 2018
Investments Debt And Equity Securities [Abstract]
Fair values of investments on deposit	$ 7.7	$ 10.1

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Investments - Securities Lending Collateral - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
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	$ 64.9	$ 52.6

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Investments - Net Investment Income (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2019	Mar. 31, 2018
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income, operating		$ 36,919	$ 29,064
Investment expenses		(2,134)	(1,674)
Investment income net of investment expenses		34,785	27,390
Interest expense on surplus note		(10,674)	(8,373)
Net investment income		24,111	19,017
Equity Securities [Member]
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income, operating		487	513
Policy Loans and Other Invested Assets [Member]
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income, operating		320	279
Cash and Cash Equivalents [Member]
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income, operating		1,203	718
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	[1]	3,902	(107)
Available-for-Sale [Member] | Fixed-maturity Securities [Member]
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income, operating		20,333	19,288
Held-to-Maturity [Member] | Fixed-maturity Securities [Member]
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income, operating		$ 10,674	$ 8,373

[1] ^{Includes $2.1 million and $(1.3) million of net gains (losses) recognized for the change in fair value of the deposit asset underlying the 10% coinsurance agreement for the three months ended March 31, 2019 and 2018, respectively.}

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Investments - Net Investment Income (Parenthetical) (Details) - Deposit asset underlying 10% coinsurance agreement [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items]
Gains (Losses) recognized for change in fair value of deposit asset underlying the 10% coinsurance agreement	$ 2.1	$ (1.3)
Percentage of coinsurance costs	10.00%	10.00%

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Investments - Schedule of Net Realized Investment Gains and Losses Recognized in Net Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Realized Investment Gains Losses [Abstract]
Gross gains from sales of available-for-sale securities	$ 178	$ 383
Gross losses from sales of available-for-sale securities	(243)	(18)
OTTI losses of available-for-sale securities		(49)
Net gains (losses) recognized in net income during the period on equity securities	2,901	(1,945)
Gains (losses) from bifurcated options		(27)
Gains (losses) on trading securities	11
Net realized investment gains (losses), including other-than- temporary impairment losses	$ 2,847	$ (1,656)

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Investments - Schedule of Proceeds from Sales or Other Redemptions of Available-For-Sale Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Proceeds From Sale And Maturity Of Available For Sale Securities [Abstract]
Proceeds from sales or other redemptions	$ 115,439	$ 119,982

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Investments - Schedule of Unrealized Net Gains (Losses) Recognized in NI on Equity Securities Still Held at Period-End (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Realized Investment Gains Losses [Abstract]
Net gains (losses) recognized on equity securities	$ 2,901	$ (1,945)
Less: Net gains (losses) recognized on equity securities sold	(254)
Net gains (losses) recognized in net income on equity securities still held as of period-end	$ 3,155	$ (1,945)

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Investments - Available-for-sale Securities with Cost Basis in Excess of Fair Value - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Investments Debt And Equity Securities [Abstract]
Available-for-sale fixed-maturities with cost basis in excess of fair values, cost basis	$ 606.6	$ 1,239.6

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Investments - Schedule of Securities in Unrealized Loss Position (Details) - Fixed-maturity Securities [Member] $ in Thousands	Mar. 31, 2019 USD ($) Securities	Dec. 31, 2018 USD ($) Securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value	$ 69,811	$ 584,735
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses	(790)	(11,281)
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value	528,861	624,675
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses	(7,186)	(18,903)
U.S. Government and Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value	121	1,668
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses	$ 0	$ (10)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities	1	1
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value	$ 6,098	$ 4,541
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses	$ (40)	$ (48)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities	6	6
Foreign Government [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value	$ 1,531	$ 7,326
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses	$ (4)	$ (170)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities	1	7
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value	$ 23,679	$ 52,086
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses	$ (174)	$ (788)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities	27	54
States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value		$ 2,644
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses		$ (9)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities		3
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value	$ 19,105	$ 23,324
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses	$ (124)	$ (262)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities	17	20
Corporates [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value	$ 51,358	$ 489,880
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses	$ (713)	$ (10,649)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities	40	396
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value	$ 327,399	$ 360,516
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses	$ (5,362)	$ (14,124)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities	276	321
Residential Mortgage-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value	$ 5,969	$ 32,725
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses	$ (14)	$ (86)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities	6	14
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value	$ 50,620	$ 71,308
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses	$ (486)	$ (1,647)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities	29	41
Commercial Mortgage-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value	$ 3,119	$ 31,129
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses	$ (11)	$ (173)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities	5	20
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value	$ 70,052	$ 78,911
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses	$ (744)	$ (1,463)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities	69	77
Other Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value	$ 7,713	$ 19,363
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses	$ (48)	$ (184)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities	20	35
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value	$ 31,908	$ 33,989
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses	$ (256)	$ (571)
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities	42	41

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Investments - Amortized Cost and Fair Value of Available-for-sale Fixed-maturity Securities in Default (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Investments Debt And Equity Securities [Abstract]
Available-for-sale fixed-maturity securities in default, amortized cost	$ 3	$ 3
Available-for-sale fixed-maturity securities in default, fair value	$ 227	$ 227

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Investments - OTTI in Earnings on Available-for-sale Securities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
OTTI recognized in earnings	$ 49
Fixed-maturity Securities [Member] | Investments in fixed-maturity securities not in default [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
OTTI recognized in earnings	$ 49

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Investments - Schedule of OTTI Recognized in Earnings for Available-for-sale Securities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Total OTTI losses recognized	$ (49)
OTTI recognized in earnings	49
Does not intend to sell or more-likely-than-not will not be required to sell [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Total OTTI losses recognized	49
OTTI recognized in earnings	$ 49

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Investments - Rollforward of OTTI Recognized in Net Income, Fixed-maturity Securities Still Held (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Other than Temporary Impairment, OTTI Recognized in Earnings [Roll Forward]
Cumulative OTTI recognized in net income for securities still held, beginning of period	$ 2,511	$ 4,346
Additions for securities where OTTI have been recognized prior to the beginning of the period		49
Reductions due to sales, maturities, calls, amortization or increases in cash flows expected to be collected over the remaining life of credit-impaired securities	(44)	(97)
Cumulative OTTI recognized in net income for securities still held, end of period	$ 2,467	$ 4,298

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Investments - Impairment Losses on Held-to-maturity Security - Narrative (Details)	3 Months Ended
	Mar. 31, 2019 USD ($)
Investments Debt And Equity Securities [Abstract]
Cumulative impairment loss held-to-maturity security	$ 0

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Investments - Loss from Closed Currency Forward Contracts Recorded in Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
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	Mar. 31, 2019	Dec. 31, 2018
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale fixed-maturity securities	$ 2,096,932	$ 2,077,806
Equity securities	37,848	37,679
Separate accounts assets	2,368,760	2,195,501
Separate accounts liabilities	$ 2,368,760	2,195,501
Fair value assumptions, percentage of securities assessed by third-party pricing service	95.00%
Fair Value, Recurring Measurements [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale securities	$ 2,096,932	2,077,806
Equity securities	37,848	37,679
Trading securities	26,556	13,610
Separate accounts assets	2,368,760	2,195,501
Assets, fair value disclosure	4,530,096	4,324,596
Separate accounts liabilities	2,368,760	2,195,501
Liabilities, fair value disclosure	2,368,760
Fair Value, Recurring Measurements [Member] | Level 1 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale securities	3,119	2,869
Equity securities	36,630	36,473
Assets, fair value disclosure	39,749	39,342
Fair Value, Recurring Measurements [Member] | Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale securities	2,093,625	2,074,202
Equity securities	1,025	1,020
Trading securities	26,556	13,610
Separate accounts assets	2,368,760	2,195,501
Assets, fair value disclosure	4,489,966	4,284,333
Separate accounts liabilities	2,368,760	2,195,501
Liabilities, fair value disclosure	2,368,760
Fair Value, Recurring Measurements [Member] | Level 3 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale securities	188	735
Equity securities	193	186
Assets, fair value disclosure	381	921
Fair Value, Recurring Measurements [Member] | U.S. Government and Agencies [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale fixed-maturity securities	11,954	12,233
Fair Value, Recurring Measurements [Member] | U.S. Government and Agencies [Member] | Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale fixed-maturity securities	11,954	12,233
Fair Value, Recurring Measurements [Member] | Foreign Government [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale fixed-maturity securities	161,507	158,112
Fair Value, Recurring Measurements [Member] | Foreign Government [Member] | Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale fixed-maturity securities	161,507	158,112
Fair Value, Recurring Measurements [Member] | States and Political Subdivisions [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale fixed-maturity securities	69,724	60,006
Fair Value, Recurring Measurements [Member] | States and Political Subdivisions [Member] | Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale fixed-maturity securities	69,724	60,006
Fair Value, Recurring Measurements [Member] | Corporates [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale fixed-maturity securities	1,431,571	1,434,218
Fair Value, Recurring Measurements [Member] | Corporates [Member] | Level 1 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale fixed-maturity securities	3,119	2,869
Fair Value, Recurring Measurements [Member] | Corporates [Member] | Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale fixed-maturity securities	1,428,449	1,431,346
Fair Value, Recurring Measurements [Member] | Corporates [Member] | Level 3 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale fixed-maturity securities	3	3
Fair Value, Recurring Measurements [Member] | Residential Mortgage-backed Securities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale fixed-maturity securities	203,454	191,951
Fair Value, Recurring Measurements [Member] | Residential Mortgage-backed Securities [Member] | Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale fixed-maturity securities	203,269	191,720
Fair Value, Recurring Measurements [Member] | Residential Mortgage-backed Securities [Member] | Level 3 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale fixed-maturity securities	185	231
Fair Value, Recurring Measurements [Member] | Commercial Mortgage-backed Securities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale fixed-maturity securities	129,856	131,355
Fair Value, Recurring Measurements [Member] | Commercial Mortgage-backed Securities [Member] | Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale fixed-maturity securities	129,856	131,355
Fair Value, Recurring Measurements [Member] | Other Asset-backed Securities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale fixed-maturity securities	80,636	81,760
Fair Value, Recurring Measurements [Member] | Other Asset-backed Securities [Member] | Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale fixed-maturity securities	80,636	81,259
Fair Value, Recurring Measurements [Member] | Other Asset-backed Securities [Member] | Level 3 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale fixed-maturity securities		501
Fair Value, Recurring Measurements [Member] | Short-term Investments [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale fixed-maturity securities	8,230	8,171
Fair Value, Recurring Measurements [Member] | Short-term Investments [Member] | Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total available-for-sale fixed-maturity securities	$ 8,230	$ 8,171

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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
		Mar. 31, 2019	Mar. 31, 2018
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Level 3 assets, beginning of period	[1]	$ 921	$ 567
Net unrealized gains (losses) included in other comprehensive income	[1]	(6)	(9)
Realized gains (losses) and accretion (amortization) recognized in earnings, including OTTI	[1]	8	18
Settlements	[1]	(44)	(41)
Transfers out of Level 3	[1],[2]	(498)
Level 3 assets, end of period	[1]	$ 381	$ 535

[1] Activities 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 months ended March 31, 2019, transfers out of Level 3 assets primarily consisted of newly issued fixed-maturity securities in the 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
	Mar. 31, 2019	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair value security, level 1 to level 2 transfers, amount	$ 0	$ 0
Fair Value security, level 1 to level 3 transfers, amount	$ 0	$ 0

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Fair Value of Financial Instruments - Carrying Values and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands		Mar. 31, 2019	Dec. 31, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale debt securities, at fair value		$ 2,096,932	$ 2,077,806
Fixed-maturity security held to maturity, fair value		1,058,428	945,331
Equity securities		37,848	37,679
Separate accounts assets		2,368,760	2,195,501
Surplus note		1,035,421	969,685
Separate accounts liabilities		2,368,760	2,195,501
Fixed-maturity security (held-to-maturity)		1,036,110	970,390
Short-term Investments [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale debt securities, at fair value		8,230	8,171
Reported Value Measurement [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale debt securities, at fair value		2,088,702	2,069,635
Equity securities		37,848	37,679
Trading securities		26,556	13,610
Separate accounts assets		2,368,760	2,195,501
Separate accounts liabilities		2,368,760	2,195,501
Reported Value Measurement [Member] | Short-term Investments [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale debt securities, at fair value		8,230	8,171
Reported Value Measurement [Member] | Level 3 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Policy loans	[1]	30,783	31,501
Surplus note	[1],[2]	1,035,421	969,685
Fixed-maturity security (held-to-maturity)	[1]	1,036,110	970,390
Reported Value Measurement [Member] | Level 3 [Member] | Deposits [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Deposit asset underlying 10% coinsurance agreement	[1]	230,982	228,974
Reported Value Measurement [Member] | Senior Notes [Member] | Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Notes payable	[2],[3]	373,755	373,661
Estimate of Fair Value Measurement [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale debt securities, at fair value		2,088,702	2,069,635
Equity securities		37,848	37,679
Trading securities		26,556	13,610
Separate accounts assets		2,368,760	2,195,501
Separate accounts liabilities		2,368,760	2,195,501
Estimate of Fair Value Measurement [Member] | Short-term Investments [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale debt securities, at fair value		8,230	8,171
Estimate of Fair Value Measurement [Member] | Level 3 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed-maturity security held to maturity, fair value	[1]	1,058,428	945,331
Policy loans	[1]	30,783	31,501
Surplus note	[1],[2]	1,058,428	945,331
Estimate of Fair Value Measurement [Member] | Level 3 [Member] | Deposits [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Deposit asset underlying 10% coinsurance agreement	[1]	230,982	228,974
Estimate of Fair Value Measurement [Member] | Senior Notes [Member] | Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Notes payable	[2],[3]	$ 394,025	$ 384,909

[1] Classified as a level 3 fair value measurement.

[2] Carrying value amounts shown are net of issuance costs

[3] Classified as a level 2 fair value measurement.

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Fair Value of Financial Instruments - Carrying Values and Estimated Fair Values of Financial Instruments (Parenthetical) (Details)	Mar. 31, 2019	Dec. 31, 2018
Level 3 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Percentage of coinsurance costs	10.00%	10.00%

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Reinsurance - In-force Life Insurance (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Reinsurance Disclosures [Abstract]
Direct life insurance in force	$ 788,457,365	$ 783,979,673
Amounts ceded to other companies	(685,589,156)	(682,708,797)
Net life insurance in force	$ 102,868,209	$ 101,270,876
Percentage of reinsured life insurance in force	87.00%	87.00%

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Reinsurance - Reinsurance Recoverables and Financial Strength Ratings by Reinsurer (Details) - USD ($) $ in Thousands		Mar. 31, 2019	Dec. 31, 2018
Ceded Credit Risk [Line Items]
Reinsurance recoverables		$ 4,202,903	$ 4,141,569
Pecan Re Inc [Member] | External credit rating, not rated [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables	[1],[2]	2,756,881	2,701,326
SCOR Global Life Reinsurance Companies [Member] | AM Best, A+ Rating [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables	[3]	348,834	348,109
Munich Re of Malta [Member] | External credit rating, not rated [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables	[2],[4]	282,407	276,154
Swiss Re Life & Health America Inc. [Member] | AM Best, A+ Rating [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables	[5]	229,459	234,643
American Health and Life Insurance Company [Member] | AM Best, B Rating [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables	[2]	170,431	170,628
Munich American Reassurance Company [Member] | AM Best, A+ Rating [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables		117,068	114,604
Korean Reinsurance Company [Member] | AM Best, A Rating [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables		104,462	104,101
RGA Reinsurance Company [Member] | AM Best, A+ Rating [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables		91,554	90,989
Hannover Life Reassurance Company [Member] | AM Best, A+ Rating [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables		31,037	31,729
TOA Reinsurance Company [Member] | AM Best, A Rating [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables		26,089	25,434
All Other Reinsurers [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables		$ 44,681	$ 43,852

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

[2] Reinsurance recoverables 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 recoverables from other reinsurers.

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

[4] This entity is rated AA- by S&P.

[5] 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
	Mar. 31, 2019	Mar. 31, 2018
Reinsurance Disclosures [Abstract]
Benefits and claims ceded to reinsurers	$ 332.6	$ 340.3

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Policy Claims and Other Benefits Payable - Schedule of Liability For Policy Claims and Other Benefits Payable (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2019	Mar. 31, 2018
Roll Forward In Liability For Unpaid Claims And Claims Adjustment Expense [Abstract]
Policy claims and other benefits payable, beginning of period		$ 313,862	$ 307,401
Reinsured policy claims and other benefits payable, beginning of period		318,653	322,137
Net balance, beginning of period		(4,791)	(14,736)
Incurred related to current year		47,973	47,787
Incurred related to prior years	[1]	(2,095)	(2,250)
Total incurred		45,878	45,537
Claims paid related to current year, net of reinsured policy claims received		(135,225)	(143,302)
Reinsured policy claims received related to prior years, net of claims paid		13,795	23,287
Total paid		(121,430)	(120,015)
Foreign currency translation		160	(167)
Net balance, end of period		(80,183)	(89,381)
Reinsured policy claims and other benefits payable, end of period		388,605	397,700
Policy claims and other benefits payable, end of period		$ 308,422	$ 308,319

[1] Includes the difference between our estimate of claims incurred but not yet reported as of 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	2 Months Ended	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2019	Mar. 31, 2018
Stockholders Equity Note [Abstract]
Common stock, beginning of period		42,694,000	44,251,000
Shares of common stock issued upon lapse of restricted stock units (“RSUs”)		231,000	223,000
Common stock retired	(473,138)	(526,000)	(521,000)
Common stock, end of period	42,399,000	42,399,000	43,953,000

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Stockholders' Equity - Narrative (Details) - USD ($)	2 Months Ended	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2019	Mar. 31, 2018	Feb. 07, 2019
Class Of Stock [Line Items]
Stock repurchased program, authorized amount				$ 275,000,000.0
Stock repurchased and retired during period, shares	473,138	526,000	521,000
Stock repurchased and retired during period, value	$ 53,600,000
Stock repurchase program, remaining authorized repurchase amount	$ 221,400,000	$ 221,400,000
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	473,128	473,128
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	92,108	92,108

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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
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Net income	$ 79,165	$ 65,715
Income attributable to unvested participating securities, basic EPS	(401)	(425)
Net income used in calculating basic EPS	$ 78,764	$ 65,290
Weighted-average vested shares	42,824	44,740
Basic EPS	$ 1.84	$ 1.46
Income attributable to unvested participating securities, diluted EPS	$ (400)	$ (424)
Net income used in calculating diluted EPS	$ 78,765	$ 65,291
Dilutive effect of incremental shares to be issued for contingently-issuable shares	118	115
Weighted-average shares used in calculating diluted EPS	42,942	44,855
Diluted EPS	$ 1.83	$ 1.46

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Share-Based Transactions - Impact of Equity Awards Granted (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total equity awards expense recognized	$ 10,883	$ 11,502
Expense Deferred [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Quarterly incentive awards expense deferred	$ 2,279	$ 2,494

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Share-Based Transactions - Narrative (Details)	Feb. 26, 2018 $ / shares shares
Restricted stock units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares awarded	73,817
Measurement date fair value | $ / shares	$ 122.62
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	25,483
Measurement date fair value | $ / shares	$ 122.62
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	38,224
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	3 Months Ended
	Mar. 31, 2019 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 | $	$ 288.1

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Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Foreign currency translation adjustments:
Change in unrealized foreign currency translation gains (losses)	$ 6,167	$ (8,401)
Change in unrealized foreign currency translation gains (losses), net of income taxes	6,167	(8,401)
Unrealized gain (losses) on available-for-sale securities:
Change in unrealized holding gains (losses) arising during period before income taxes	46,200	(32,343)
Income tax expense (benefit) on unrealized holding gains (losses) arising during period	9,965	(6,850)
Change in unrealized holding gains (losses) on available-for-sale securities arising during period, net of income taxes	36,235	(25,493)
Reclassification adjustment for realized investment (gains) losses included in net income	65	(316)
Income tax (expense) benefit on (gains) losses reclassified from accumulated OCI to net income	14	(66)
Reclassification from accumulated OCI to net income for (gains) losses realized on available-for-sale securities, net of income taxes	51	(250)
Change in unrealized gains (losses) on available-for-sale securities, net of income taxes and reclassification adjustment	$ 36,286	$ (25,743)

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Debt - Narrative (Details)	3 Months Ended
	Mar. 31, 2019 USD ($)
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	$ 200,000,000.0
Debt instrument maturity date	Dec. 19, 2022
Debt instrument, frequency of commitment fee payable	quarterly
Debt instrument, current borrowing capacity	$ 0
Maximum [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	$ 1,500,000,000
Maximum [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt instrument, commitment fee percentage	0.225%
Maximum [Member] | LIBOR Rate [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate margin	1.625%
Maximum [Member] | Base Rate [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate margin	0.625%
Minimum [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt instrument, commitment fee percentage	0.125%
Minimum [Member] | LIBOR Rate [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate margin	1.125%
Minimum [Member] | Base Rate [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate margin	0.125%
Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	$ 375,000,000.0
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	$ 1,000,000,000.0
Debt instrument, interest rate, stated percentage	4.50%
Debt instrument maturity date	Dec. 31, 2030

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Revenue from Contracts with Customers - Summary of Disaggregation of Revenues from Contracts (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2019	Mar. 31, 2018
Disaggregation Of Revenue [Line Items]
Disaggregation of revenues from contracts with customers		$ 494,987	$ 459,923
Term Life Insurance Segment Revenues [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenues from contracts with customers		296,843	270,309
Term Life Insurance Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenues from contracts with customers		9,744	10,415
Term Life Insurance Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member] | Other, Net [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenues from contracts with customers		9,744	10,415
Term Life Insurance Segment Revenues [Member] | Revenues from Sources Other Than Contracts with Customers (Segregated Funds) [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenues from contracts with customers		287,099	259,894
Investment and Savings Products Segment Revenues [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenues from contracts with customers		162,672	162,041
Investment and Savings Products Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenues from contracts with customers		148,787	146,932
Investment and Savings Products Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member] | Other, Net [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenues from contracts with customers		2,423	2,336
Investment and Savings Products Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member] | Commissions and Fees [Member] | Sales-based Revenues [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenues from contracts with customers		66,997	64,461
Investment and Savings Products Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member] | Commissions and Fees [Member] | Asset-based Revenues [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenues from contracts with customers		59,754	59,540
Investment and Savings Products Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member] | Commissions and Fees [Member] | Account-based Revenues [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenues from contracts with customers		19,613	20,595
Investment and Savings Products Segment Revenues [Member] | Revenues from Sources Other Than Contracts with Customers (Segregated Funds) [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenues from contracts with customers		13,885	15,109
Corporate and Other Distributed Products Segment Revenues [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenues from contracts with customers		35,472	27,573
Corporate and Other Distributed Products Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenues from contracts with customers		8,122	8,268
Corporate and Other Distributed Products Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member] | Other, Net [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenues from contracts with customers		1,056	1,146
Corporate and Other Distributed Products Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member] | Commissions and Fees [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenues from contracts with customers	[1]	7,066	7,122
Corporate and Other Distributed Products Segment Revenues [Member] | Revenues from Sources Other Than Contracts with Customers (Segregated Funds) [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenues from contracts with customers		$ 27,350	$ 19,305

[1] Commissions and fees for the three months ended March 31, 2019 include $1.1 million attributable to performance obligations satisfied in a previous reporting period and represent the collection of variable consideration in the transaction price that had been previously constrained.

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Revenue from Contracts with Customers - Summary of Disaggregation of Revenues from Contracts (Parenthetical) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Corporate and Other Distributed Products Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member] | Commissions and Fees [Member]
Disaggregation Of Revenue [Line Items]
Performance obligation satisfied and collection of variable consideration in transaction price	$ 1.1

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Revenue from Contracts with Customers - Summary of Contract Asset Account (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019		Mar. 31, 2018
Contract With Customer Asset And Liability [Abstract]
Balance, beginning of period	$ 50,119	[1]	$ 48,533
Current period sales, net of collection of renewal commissions	(28)		(120)
Balance, at the end of period	$ 50,091		$ 48,413

[1] Reclassed to Other assets from Agent balances, due premiums and other receivables in the accompanying Condensed Consolidated Balance Sheets to conform with current year reporting.

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Revenue from Contracts with Customers - Narrative (Details)	3 Months Ended
	Mar. 31, 2019 USD ($)
Revenue From Contract With Customer [Abstract]
Estimate adjustments to contract asset	$ 0
Impairment losses recognized on contract asset	0
Assets recognized for incremental costs	$ 0

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Leases - Narratives (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Lessee Lease Description [Line Items]
Lease renewal term	10 years
Lease termination period	1 year
Finance lease liabilities	$ 763
Operating lease minimum rent expense		$ 1,800
Operating lease contingent rent expense		$ 0
Minimum [Member]
Lessee Lease Description [Line Items]
Remaining lease term	1 year
Maximum [Member]
Lessee Lease Description [Line Items]
Remaining lease term	12 years
Other Assets
Lessee Lease Description [Line Items]
Finance right-of-use assets	$ 700
Other Liabilities
Lessee Lease Description [Line Items]
Finance lease liabilities	$ 800

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Leases - Schedule of Components of Lease Expense (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Operating lease cost
Operating lease cost	$ 1,914
Variable lease cost (includes taxes, common area maintenance and insurance)	156
Finance lease cost
Depreciation of finance lease assets	69
Interest on lease liabilities	10
Total lease cost	$ 2,149

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Leases - Schedule of Other Information Related to Leases (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 1,880	[1]
Operating cash flows from finance leases	12	[1]
Finance leases	$ (70)
Operating leases weighted average remaining lease term	9 years
Finance leases weighted average remaining lease term	3 years
Operating leases weighted average discount rate	5.40%
Finance leases weighted average discount rate	4.60%

[1] Included in change in other operating assets and liabilities, net in the accompanying condensed consolidated statements of cash flows

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Leases - Schedule of Future Minimum Lease Payments under Non-Cancellable (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Operating Leases
2019 (excluding the three months ended March 31, 2019)	$ 5,681
2020	7,254
2021	7,124
2022	7,189
2023	7,195
Thereafter	35,650
Total minimum rental commitments for operating leases	70,093
Less imputed interest	13,381
Operating Lease, Liability	56,712
Finance Leases
2019 (excluding the three months ended March 31, 2019)	233
2020	287
2021	232
2022	64
2023	4
Total minimum rental commitments for operating leases	820
Less imputed interest	57
Finance lease liabilities	$ 763

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Leases - Schedule of Minimum Aggregate Rental Commitments for Operating Leases (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Leases [Abstract]
2019	$ 7,459
2020	7,174
2021	7,038
2022	7,120
2023	7,094
Thereafter	34,901
Total minimum rental commitments for operating leases	$ 70,786