AM Best Affirms Credit Ratings of Primerica, Inc. and Its Subsidiaries

AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” (Superior) of Primerica Life Insurance Company (Nashville, TN) and its affiliates, National Benefit Life Insurance Company (Long Island City, NY) and Primerica Life Insurance Company of Canada (Mississauga, Ontario), collectively referred to as Primerica Group. Additionally, AM Best has affirmed the Long-Term ICR of “a-” (Excellent) of Primerica, Inc. (Primerica) (headquartered in Duluth, GA) [NYSE: PRI], which is the holding company for the group’s insurance and non-insurance operating companies. AM Best also has affirmed the Long-Term Issue Credit Rating of “a-” (Excellent) on $600 million, 2.8% senior unsecured notes, due 2031, of Primerica. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Primerica Group’s balance sheet strength, which AM Best assesses as very strong, as well as its very strong operating performance, favorable business profile and appropriate enterprise risk management.

Primerica’s ratings continue to recognize the group’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). In addition, the ratings reflect good liquidity, financial flexibility and an investment portfolio that is focused on fixed income with no alternative asset classes, and modest exposure to commercial mortgage-backed securities. Primerica continues to operate and report earnings on a consistently high level with its return-on-equity measures among the highest across its industry peers. This performance is supported by steady premium growth driven by its vast distribution system geographically diversified in U.S. and Canadian marketplaces. Primerica has an extensive agent recruitment process with a well established monitoring system to ensure compliance of its processes and procedures. This is also a reflection of Primerica’s appropriate enterprise risk management assessment, which is capable of identifying, assessing, monitoring and mitigating the company’s risks. Much of these risks have been managed through ceding business to highly rated reinsurance partners and using captive reinsurance companies quite extensively, reflecting higher reinsurance leverage ratios compares to its peers.

The group’s business profile revolves centrally around its core term life insurance offering and in particular, the investments made in its simplified issue product. Those not qualifying for a simplified issue term life product have the option to apply for a traditional underwritten product. Beyond the Primerica Group, Primerica also offers the distribution of primarily third-party Investment & Savings Products and other non-life products. Recently Primerica’s strategy has included a product expansion beyond its core term life and investments offerings. With its expansion through e-TeleQuote and easyMed Insurance Services, its product distribution has expanded to Medicare Advantage and Medicare Supplement products.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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