pri-ex992

This document may contain forward-looking statements and information. Additional information and factors that could cause actual results to differ materially from any forward-looking statements or information in this document is available in our Form 10-K for the year ended December 31, 2018.

This document is a financial supplement to our third quarter 2019 earnings release. It is designed to enable comprehensive analysis of our ongoing business using the same core metrics that our management utilizes in assessing our business and making strategic and operational decisions. Throughout this document we provide financial information that is derived from our U.S. GAAP financial statements and adjusted for three different purposes, as follows:

Management utilizes these non-GAAP financial measures in managing the business and believes they present relevant and meaningful analytical metrics for evaluating the ongoing business. Reconciliations of non-GAAP to GAAP financial measures are included in this financial supplement.

Certain items throughout this supplement may not add due to rounding and as such, may not agree to other public reporting of the respective item. Certain items throughout this supplement are noted as ‘na’ to indicate not applicable. Certain variances are noted as ‘nm’ to indicate not meaningful. 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.

(Dollars in thousands)				Dec 31, 2017			Mar 31, 2018			Jun 30, 2018			Sep 30, 2018			Dec 31, 2018			Mar 31, 2019			Jun 30, 2019			Sep 30, 2019
Condensed Balance Sheets
Assets:
	Investments and cash excluding securities held to maturity			$	2,287,955		$	2,254,512		$	2,239,045		$	2,322,453		$	2,422,734		$	2,471,745		$	2,557,033		$	2,617,685
	Securities held to maturity				737,150			796,450			843,810			891,860			970,390			1,036,110			1,087,790			1,140,250
			Total investments and cash		3,025,105			3,050,962			3,082,855			3,214,313			3,393,124			3,507,855			3,644,823			3,757,935
	Due from reinsurers				4,205,173			4,263,111			4,199,275			4,196,021			4,141,569			4,202,903			4,185,850			4,166,362
	Deferred policy acquisition costs				1,951,892			1,998,985			2,053,445			2,107,814			2,133,920			2,181,741			2,238,315			2,281,560
	Other assets				705,661			759,973			772,058			769,387			730,933			814,854			811,426			818,029
	Separate account assets				2,572,872			2,419,707			2,389,007			2,419,997			2,195,501			2,368,760			2,437,291			2,427,852
			Total assets	$	12,460,704		$	12,492,737		$	12,496,640		$	12,707,531		$	12,595,047		$	13,076,112		$	13,317,706		$	13,451,737

Liabilities:
	Future policy benefits			$	5,954,524		$	6,004,101		$	6,057,112		$	6,132,750		$	6,168,157		$	6,240,864		$	6,314,403		$	6,374,327
	Other policy liabilities				685,885			693,223			673,912			682,126			700,094			703,123			717,265			714,930
	Income taxes				177,468			184,161			182,140			182,241			187,104			206,180			206,301			207,453
	Other liabilities				451,398			506,535			495,242			511,623			486,772			561,709			551,689			565,894
	Notes payable				373,288			373,381			373,474			373,567			373,661			373,755			373,848			373,942
	Surplus note				736,381			795,697			843,073			891,139			969,685			1,035,421			1,087,117			1,139,592
	Payable under securities lending				89,786			89,433			82,096			70,632			52,562			64,914			43,867			39,933
	Separate account liabilities				2,572,872			2,419,707			2,389,007			2,419,997			2,195,501			2,368,760			2,437,291			2,427,852
			Total liabilities		11,041,603			11,066,237			11,096,056			11,264,074			11,133,535			11,554,726			11,731,781			11,843,924

Stockholders’ equity:
	Common stock ($0.01 par value) (1)				443			440			432			430			427			424			420			415
	Paid-in capital				(0	)		(0	)		(0	)		(0	)		(0	)		(0	)		(0	)		(0	)
	Retained earnings				1,375,090			1,416,564			1,409,104			1,452,841			1,489,520			1,506,944			1,537,537			1,553,286
	Treasury stock				—			—			—			—			—			—			—			—
	Accumulated other comprehensive income (loss), net:
		Net unrealized investment gains (losses) not other-than-temporarily impaired			39,686			14,039			1,493			(4,380	)		(7,253	)		29,022			56,287			66,423
		Net unrealized investment losses other-than-temporarily impaired			(113	)		(136	)		(136	)		(135	)		(116	)		(106	)		(60	)		(46	)
		Cumulative translation adjustment			3,995			(4,406	)		(10,309	)		(5,300	)		(21,064	)		(14,897	)		(8,258	)		(12,265	)
			Total stockholders’ equity		1,419,101			1,426,500			1,400,584			1,443,456			1,461,513			1,521,387			1,585,926			1,607,813
			Total liabilities and stockholders' equity	$	12,460,704		$	12,492,737		$	12,496,640		$	12,707,531		$	12,595,047		$	13,076,112		$	13,317,706		$	13,451,737

Reconciliation of Adjusted Stockholders' Equity to Total Stockholders' Equity
Adjusted stockholders' equity				$	1,379,528		$	1,412,597		$	1,399,227		$	1,447,972		$	1,468,882		$	1,492,471		$	1,529,699		$	1,541,436
Reconciling items:
	Net unrealized investment gains (losses) not other-than-temporarily impaired				39,686			14,039			1,493			(4,380	)		(7,253	)		29,022			56,287			66,423
	Net unrealized investment losses other-than-temporarily impaired				(113	)		(136	)		(136	)		(135	)		(116	)		(106	)		(60	)		(46	)
		Total reconciling items			39,573			13,903			1,357			(4,515	)		(7,370	)		28,916			56,227			66,377
			Total stockholders’ equity	$	1,419,101		$	1,426,500		$	1,400,584		$	1,443,456		$	1,461,513		$	1,521,387		$	1,585,926		$	1,607,813

Adjusted Stockholders' Equity Rollforward
Balance, beginning of period				$	1,233,482		$	1,379,528		$	1,412,597		$	1,399,227		$	1,447,972		$	1,468,882		$	1,492,471		$	1,529,699
	Net Income				168,443			65,714			86,699			85,139			86,541			79,166			97,446			96,223
	Shareholder dividends				(9,020	)		(11,278	)		(11,086	)		(10,920	)		(10,856	)		(14,628	)		(14,517	)		(14,324	)
	Retirement of shares and warrants				(17,318	)		(51,563	)		(87,448	)		(34,508	)		(43,338	)		(60,288	)		(57,117	)		(70,679	)
	Net foreign currency translation adjustment				(497	)		(8,402	)		(5,903	)		5,009			(15,765	)		6,167			6,639			(4,007	)
	Other, net				4,437			38,598			4,367			4,024			4,328			13,171			4,778			4,524
Balance, end of period				$	1,379,528		$	1,412,597		$	1,399,227		$	1,447,972		$	1,468,882		$	1,492,471		$	1,529,699		$	1,541,436

Deferred Policy Acquisition Costs Rollforward
Balance, beginning of period				$	1,900,122		$	1,951,892		$	1,998,985		$	2,053,445		$	2,107,814		$	2,133,920		$	2,181,741		$	2,238,315
	General expenses deferred				8,887			9,599			9,800			8,886			8,497			9,163			9,384			9,468
	Commission costs deferred				99,411			104,314			103,192			100,890			96,697			98,196			100,498			100,913
	Amortization of deferred policy acquisition costs				(56,304	)		(60,165	)		(53,847	)		(59,534	)		(66,184	)		(64,628	)		(58,762	)		(63,883	)
	Foreign currency impact and other, net				(224	)		(6,655	)		(4,684	)		4,127			(12,904	)		5,091			5,455			(3,254	)
Balance, end of period				$	1,951,892		$	1,998,985		$	2,053,445		$	2,107,814		$	2,133,920		$	2,181,741		$	2,238,315		$	2,281,560

																								YOY Q3												YOY YTD
(Dollars in thousands, except per-share data)			Q1 2018			Q2 2018			Q3 2018			Q4 2018			Q1 2019			Q2 2019			Q3 2019			$/# Change			% Change			YTD 2018			YTD 2019			$/# Change			% Change
Earnings per Share
Basic earnings per share:
	Weighted-average common shares and fully vested equity awards			44,739,864			44,065,972			43,452,234			43,179,898			42,824,471			42,482,631			41,963,672			(1,488,562	)		-3.4	%		44,081,307			42,420,438			(1,660,869	)	-3.8%

	Net income		$	65,714		$	86,699		$	85,139		$	86,541		$	79,166		$	97,446		$	96,223		$	11,084			13.0	%	$	237,552		$	272,834		$	35,282		14.9%
	Less income attributable to unvested participating securities			(425	)		(483	)		(485	)		(487	)		(401	)		(428	)		(415	)		71			14.6	%		(1,405	)		(1,251	)		153		10.9%
		Net income used in computing basic EPS	$	65,289		$	86,216		$	84,654		$	86,054		$	78,765		$	97,018		$	95,808		$	11,154			13.2	%	$	236,147		$	271,582		$	35,435		15.0%
		Basic earnings per share	$	1.46		$	1.96		$	1.95		$	1.99		$	1.84		$	2.28		$	2.28		$	0.33			17.2	%	$	5.36		$	6.40		$	1.05		19.5%

	Adjusted net operating income		$	66,215		$	85,984		$	84,489		$	87,641		$	75,303		$	94,759		$	95,592		$	11,103			13.1	%	$	236,689		$	265,655		$	28,965		12.2%
	Less operating income attributable to unvested participating securities			(428	)		(479	)		(482	)		(493	)		(381	)		(416	)		(412	)		70			14.5	%		(1,399	)		(1,219	)		181		12.9%
		Adjusted net operating income used in computing basic operating EPS	$	65,787		$	85,506		$	84,008		$	87,147		$	74,922		$	94,343		$	95,181		$	11,173			13.3	%	$	235,290		$	264,436		$	29,146		12.4%
		Basic adjusted operating income per share	$	1.47		$	1.94		$	1.93		$	2.02		$	1.75		$	2.22		$	2.27		$	0.33			17.3	%	$	5.34		$	6.23		$	0.90		16.8%

Diluted earnings per share:
	Weighted-average common shares and fully vested equity awards			44,739,864			44,065,972			43,452,234			43,179,898			42,824,471			42,482,631			41,963,672			(1,488,562	)		-3.4	%		44,081,307			42,420,438			(1,660,869	)	-3.8%
	Dilutive impact of contingently issuable shares			115,421			140,567			136,628			131,384			118,014			135,719			135,887			(741	)		-0.5	%		130,872			129,874			(998	)	-0.8%
		Shares used to calculate diluted EPS		44,855,285			44,206,539			43,588,862			43,311,282			42,942,485			42,618,350			42,099,559			(1,489,303	)		-3.4	%		44,212,179			42,550,312			(1,661,867	)	-3.8%

	Net income		$	65,714		$	86,699		$	85,139		$	86,541		$	79,166		$	97,446		$	96,223		$	11,084			13.0	%	$	237,552		$	272,834		$	35,282		14.9%
	Less income attributable to unvested participating securities			(424	)		(481	)		(484	)		(486	)		(400	)		(427	)		(413	)		71			14.6	%		(1,401	)		(1,248	)		153		10.9%
		Net income used in computing diluted EPS	$	65,290		$	86,217		$	84,655		$	86,055		$	78,766		$	97,019		$	95,809		$	11,154			13.2	%	$	236,151		$	271,585		$	35,434		15.0%
		Diluted earnings per share	$	1.46		$	1.95		$	1.94		$	1.99		$	1.83		$	2.28		$	2.28		$	0.33			17.2	%	$	5.34		$	6.38		$	1.04		19.5%

	Adjusted net operating income		$	66,215		$	85,984		$	84,489		$	87,641		$	75,303		$	94,759		$	95,592		$	11,103			13.1	%	$	236,689		$	265,655		$	28,965		12.2%
	Less operating income attributable to unvested participating securities			(427	)		(478	)		(480	)		(492	)		(381	)		(415	)		(411	)		70			14.5	%		(1,396	)		(1,215	)		180		12.9%
		Adjusted net operating income used in computing diluted operating EPS	$	65,788		$	85,507		$	84,009		$	87,149		$	74,923		$	94,344		$	95,182		$	11,173			13.3	%	$	235,293		$	264,439		$	29,146		12.4%
		Diluted adjusted operating income per share	$	1.47		$	1.93		$	1.93		$	2.01		$	1.74		$	2.21		$	2.26		$	0.33			17.3	%	$	5.32		$	6.21		$	0.89		16.8%

																							YOY Q3												YOY YTD
		Q1 2018			Q2 2018			Q3 2018			Q4 2018			Q1 2019			Q2 2019			Q3 2019			$/# Change			% Change			YTD 2018			YTD 2019			$/# Change			% Change
Annualized Return on Equity
	Average stockholders' equity	$	1,422,801		$	1,413,542		$	1,422,020		$	1,452,485		$	1,491,450		$	1,553,656		$	1,596,869		$	174,849			12.3	%	$	1,419,454		$	1,547,325		$	127,871			9.0	%
	Average adjusted stockholders' equity	$	1,396,063		$	1,405,912		$	1,423,599		$	1,458,427		$	1,480,676		$	1,511,085		$	1,535,567		$	111,968			7.9	%	$	1,408,525		$	1,509,109		$	100,585			7.1	%

	Net income return on stockholders' equity		18.5	%		24.5	%		23.9	%		23.8	%		21.2	%		25.1	%		24.1	%		0.2	%	nm				22.3	%		23.5	%		1.2	%	nm
	Net income return on adjusted stockholders' equity		18.8	%		24.7	%		23.9	%		23.7	%		21.4	%		25.8	%		25.1	%		1.1	%	nm				22.5	%		24.1	%		1.6	%	nm

	Adjusted net operating income return on adjusted stockholders' equity		19.0	%		24.5	%		23.7	%		24.0	%		20.3	%		25.1	%		24.9	%		1.2	%	nm				22.4	%		23.5	%		1.1	%	nm

Capital Structure
	Debt-to-capital (1)		20.7	%		21.1	%		20.6	%		20.4	%		19.7	%		19.1	%		18.9	%		-1.7	%	nm				20.6	%		18.9	%		-1.7	%	nm

	Cash and invested assets to stockholders' equity		2.1	x		2.2	x		2.2	x		2.3	x		2.3	x		2.3	x		2.3	x		0.1	x	nm				2.2	x		2.3	x		0.1	x	nm
	Cash and invested assets to adjusted stockholders' equity		2.2	x		2.2	x		2.2	x		2.3	x		2.4	x		2.4	x		2.4	x		0.2	x	nm				2.2	x		2.4	x		0.2	x	nm

	Share count, end of period (2)		43,953,046			43,168,005			42,976,742			42,694,258			42,398,643			42,008,450			41,491,998			(1,484,744	)		-3.5	%		42,976,742			41,491,998			(1,484,744	)		-3.5	%
	Adjusted stockholders' equity per share	$	32.14		$	32.41		$	33.69		$	34.40		$	35.20		$	36.41		$	37.15		$	3.46			10.3	%	$	33.69		$	37.15		$	3.46			10.3	%

Financial Strength Ratings - Primerica Life Insurance Co
	Moody's	A2			A2			A1			A1			A1			A1			A1			nm			nm			nm			nm			nm			nm
	S&P	AA-			AA-			AA-			AA-			AA-			AA-			AA-			nm			nm			nm			nm			nm			nm
	A.M. Best	A+			A+			A+			A+			A+			A+			A+			nm			nm			nm			nm			nm			nm

Holding Company Senior Debt Ratings
	Moody's	Baa2			Baa2			Baa1			Baa1			Baa1			Baa1			Baa1			nm			nm			nm			nm			nm			nm
	S&P	A-			A-			A-			A-			A-			A-			A-			nm			nm			nm			nm			nm			nm
	A.M. Best	a-			a-			a-			a-			a-			a-			a-			nm			nm			nm			nm			nm			nm

																								YOY Q3												YOY YTD
(Dollars in thousands)			Q1 2018			Q2 2018			Q3 2018			Q4 2018			Q1 2019			Q2 2019			Q3 2019			$ Change			% Change			YTD 2018			YTD 2019			$ Change			% Change
Statement of Income
Revenues:
	Direct premiums		$	656,087		$	667,191		$	670,222		$	673,605		$	677,286		$	687,262		$	692,258		$	22,036			3.3	%	$	1,993,499		$	2,056,806		$	63,307			3.2	%
	Ceded premiums			(394,249	)		(403,449	)		(391,175	)		(392,290	)		(389,795	)		(400,588	)		(388,982	)		2,193			0.6	%		(1,188,873	)		(1,179,364	)		9,509			0.8	%
		Net premiums		261,838			263,741			279,047			281,314			287,491			286,675			303,276			24,230			8.7	%		804,626			877,442			72,816			9.0	%
	Net investment income			19,017			20,030			20,622			21,760			24,111			24,868			22,675			2,053			10.0	%		59,669			71,655			11,985			20.1	%
	Commissions and fees:
		Sales-based (1)		64,461			64,307			64,181			67,041			66,997			71,438			69,034			4,853			7.6	%		192,949			207,469			14,520			7.5	%
		Asset-based (2)		74,649			75,672			78,318			75,012			73,639			79,317			81,009			2,691			3.4	%		228,640			233,965			5,325			2.3	%
		Account-based (3)		20,595			20,438			20,306			20,463			19,613			19,897			20,449			142			0.7	%		61,339			59,958			(1,381	)		-2.3	%
		Other commissions and fees		7,122			7,523			8,074			9,444			7,066			7,817			9,227			1,153			14.3	%		22,719			24,110			1,391			6.1	%
	Realized investment (losses) gains			(1,656	)		1,313			(126	)		(1,651	)		2,847			1,067			285			412		nm				(470	)		4,200			4,670		nm
	Other, net			13,897			14,790			14,359			13,940			13,223			13,825			14,698			339			2.4	%		43,047			41,746			(1,300	)		-3.0	%
	Total revenues			459,923			467,814			484,781			487,324			494,988			504,903			520,654			35,872			7.4	%		1,412,518			1,520,544			108,026			7.6	%
Benefits and expenses:
	Benefits and claims			116,890			105,069			118,787			116,837			122,284			115,068			128,684			9,897			8.3	%		340,747			366,036			25,290			7.4	%
	Amortization of DAC			60,165			53,847			59,534			66,184			64,628			58,762			63,883			4,349			7.3	%		173,546			187,273			13,727			7.9	%
	Insurance commissions			5,877			6,417			6,584			5,612			5,619			5,829			6,980			396			6.0	%		18,878			18,427			(451	)		-2.4	%
	Insurance expenses			41,109			43,451			41,925			41,671			43,402			44,569			44,854			2,929			7.0	%		126,485			132,826			6,341			5.0	%
	Sales commissions:
		Sales-based (1)		46,259			45,905			45,634			47,424			47,831			50,679			48,652			3,018			6.6	%		137,797			147,161			9,364			6.8	%
		Asset-based (2)		32,484			33,350			34,813			33,297			32,343			35,665			35,875			1,062			3.1	%		100,646			103,882			3,236			3.2	%
		Other sales commissions		3,777			3,700			4,141			4,602			3,626			3,755			4,535			394			9.5	%		11,618			11,916			298			2.6	%
	Interest expense			7,173			7,229			7,216			7,192			7,180			7,201			7,209			(7	)		-0.1	%		21,617			21,589			(28	)		-0.1	%
	Other operating expenses			63,228			55,083			54,712			56,584			65,706			55,917			54,844			133			0.2	%		173,023			176,467			3,444			2.0	%
	Total benefits and expenses			376,961			354,050			373,346			379,403			392,619			377,444			395,515			22,169			5.9	%		1,104,357			1,165,578			61,221			5.5	%
	Income before income taxes			82,962			113,764			111,435			107,922			102,368			127,459			125,138			13,703			12.3	%		308,162			354,966			46,805			15.2	%
Income taxes				17,248			27,065			26,296			21,380			23,203			30,014			28,916			2,619			10.0	%		70,610			82,133			11,523			16.3	%
	Net income		$	65,714		$	86,699		$	85,139		$	86,541		$	79,166		$	97,446		$	96,223		$	11,084			13.0	%	$	237,552		$	272,834		$	35,282			14.9	%

Income Before Income Taxes by Segment
Term Life			$	59,621		$	75,827		$	74,338		$	72,117		$	70,339		$	83,999		$	83,761		$	9,423			12.7	%	$	209,786		$	238,098		$	28,312			13.5	%
Investment & Savings Products				39,985			43,228			45,052			45,647			42,684			47,343			48,794			3,742			8.3	%		128,265			138,821			10,556			8.2	%
Corporate & Other Distributed Products				(16,644	)		(5,291	)		(7,954	)		(9,842	)		(10,654	)		(3,882	)		(7,416	)		538			6.8	%		(29,889	)		(21,953	)		7,936			26.6	%
	Income before income taxes		$	82,962		$	113,764		$	111,435		$	107,922		$	102,368		$	127,459		$	125,138		$	13,703			12.3	%	$	308,162		$	354,966		$	46,805			15.2	%

																							YOY Q3												YOY YTD
(Dollars in thousands)		Q1 2018			Q2 2018			Q3 2018			Q4 2018			Q1 2019			Q2 2019			Q3 2019			$ Change			% Change			YTD 2018			YTD 2019			$ Change			% Change
Reconciliation from Term Life Direct Premiums to Term Life Adjusted Direct Premiums
	Term Life direct premiums	$	649,366		$	660,505		$	663,183		$	667,776		$	670,755		$	681,004		$	685,539		$	22,356			3.4	%	$	1,973,054		$	2,037,298		$	64,244			3.3	%
	Less: Premiums ceded to IPO Coinsurers		294,301			290,956			284,742			281,265			276,150			272,596			267,856			(16,886	)		-5.9	%		869,999			816,602			(53,397	)		-6.1	%
	Term Life adjusted direct premiums	$	355,065		$	369,548		$	378,441		$	386,511		$	394,605		$	408,408		$	417,683		$	39,242			10.4	%	$	1,103,055		$	1,220,696		$	117,641			10.7	%


Reconciliation from Term Life Ceded Premiums to Term Life Other Ceded Premiums
	Term Life ceded premiums	$	(392,561	)	$	(401,686	)	$	(389,332	)	$	(390,173	)	$	(388,100	)	$	(398,927	)	$	(387,120	)	$	2,212			0.6	%	$	(1,183,579	)	$	(1,174,147	)	$	9,432			0.8	%
	Less: Premiums ceded to IPO Coinsurers		(294,301	)		(290,956	)		(284,742	)		(281,265	)		(276,150	)		(272,596	)		(267,856	)		16,886			5.9	%		(869,999	)		(816,602	)		53,397			6.1	%
	Term Life other ceded premiums	$	(98,260	)	$	(110,730	)	$	(104,590	)	$	(108,908	)	$	(111,950	)	$	(126,330	)	$	(119,264	)	$	(14,675	)		-14.0	%	$	(313,580	)	$	(357,544	)	$	(43,965	)		-14.0	%


Reconciliation from Net Investment Income to Adjusted Net Investment Income
	Net Investment Income	$	19,017		$	20,030		$	20,622		$	21,760		$	24,111		$	24,868		$	22,675		$	2,053			10.0	%	$	59,669		$	71,655		$	11,985			20.1	%
	Less: MTM investment adjustments		(1,288	)		(375	)		(297	)		280			2,147			2,447			534		nm			nm				(1,960	)		5,129		nm			nm
	Adjusted net investment income	$	20,305		$	20,405		$	20,920		$	21,480		$	21,964		$	22,421		$	22,141		$	1,221			5.8	%	$	61,629		$	66,526		$	4,897			7.9	%


Reconciliation from Total Revenues to Adjusted Operating Revenues
	Total revenues	$	459,923		$	467,814		$	484,781		$	487,324		$	494,988		$	504,903		$	520,654		$	35,872			7.4	%	$	1,412,518		$	1,520,544		$	108,026			7.6	%
	Less: Realized investment gains/(losses)		(1,656	)		1,313			(126	)		(1,651	)		2,847			1,067			285		nm			nm				(470	)		4,200		nm			nm
	Less: MTM investment adjustments		(1,288	)		(375	)		(297	)		280			2,147			2,447			534		nm			nm				(1,960	)		5,129		nm			nm
	Adjusted operating revenues	$	462,866		$	466,877		$	485,205		$	488,695		$	489,993		$	501,389		$	519,834		$	34,629			7.1	%	$	1,414,948		$	1,511,216		$	96,268			6.8	%


Reconciliation from Income Before Income Taxes to Adjusted Operating Income Before Income Taxes
	Income before income taxes	$	82,962		$	113,764		$	111,435		$	107,922		$	102,368		$	127,459		$	125,138		$	13,703			12.3	%	$	308,162		$	354,966		$	46,805			15.2	%
	Less: Realized investment gains/(losses)		(1,656	)		1,313			(126	)		(1,651	)		2,847			1,067			285		nm			nm				(470	)		4,200		nm			nm
	Less: MTM investment adjustments		(1,288	)		(375	)		(297	)		280			2,147			2,447			534		nm			nm				(1,960	)		5,129		nm			nm
	Adjusted operating income before income taxes	$	85,906		$	112,827		$	111,859		$	109,293		$	97,374		$	123,945		$	124,319		$	12,460			11.1	%	$	310,592		$	345,638		$	35,047			11.3	%


Reconciliation from Net Income to Adjusted Net Operating Income
	Net income	$	65,714		$	86,699		$	85,139		$	86,541		$	79,166		$	97,446		$	96,223		$	11,084			13.0	%	$	237,552		$	272,834		$	35,282			14.9	%
	Less: Income before income taxes reconciling items		(2,944	)		937			(424	)		(1,371	)		4,994			3,514			819		nm			nm				(2,430	)		9,328		nm			nm
	Less: Tax impact of income before income taxes reconciling items		675			(223	)		104			272			(1,132	)		(828	)		(189	)	nm			nm				555			(2,149	)	nm			nm
	Less: Transition impact of tax reform (1)		1,768			—			970			—			—			—			—		nm			nm				2,737			—		nm			nm
	Adjusted net operating income	$	66,215		$	85,984		$	84,489		$	87,641		$	75,303		$	94,759		$	95,592		$	11,103			13.1	%	$	236,689		$	265,655		$	28,965			12.2	%

																							YOY Q3												YOY YTD
(Dollars in thousands)		Q1 2018			Q2 2018			Q3 2018			Q4 2018			Q1 2019			Q2 2019			Q3 2019			$ Change			% Change			YTD 2018			YTD 2019			$ Change			% Change
Term Life Insurance
Revenues:
	Direct Premiums	$	649,366		$	660,505		$	663,183		$	667,776		$	670,755		$	681,004		$	685,539		$	22,356			3.4	%	$	1,973,054		$	2,037,298		$	64,244			3.3	%
	Premiums ceded to IPO coinsurers (1)		(294,301	)		(290,956	)		(284,742	)		(281,265	)		(276,150	)		(272,596	)		(267,856	)		16,886			5.9	%		(869,999	)		(816,602	)		53,397			6.1	%
	Adjusted direct premiums (2)		355,065			369,548			378,441			386,511			394,605			408,408			417,683			39,242			10.4	%		1,103,055			1,220,696			117,641			10.7	%
	Other ceded premiums (3)		(98,260	)		(110,730	)		(104,590	)		(108,908	)		(111,950	)		(126,330	)		(119,264	)		(14,675	)		-14.0	%		(313,580	)		(357,544	)		(43,965	)		-14.0	%
	Net premiums		256,805			258,818			273,851			277,603			282,655			282,077			298,419			24,567			9.0	%		789,475			863,151			73,676			9.3	%
	Allocated net investment income		3,089			3,246			3,506			3,907			4,444			4,736			5,123			1,617			46.1	%		9,841			14,303			4,463			45.3	%
	Other, net		10,415			10,913			10,615			10,431			9,744			10,055			10,985			371			3.5	%		31,943			30,785			(1,158	)		-3.6	%
	Revenues		270,309			272,978			287,972			291,941			296,843			296,869			314,527			26,555			9.2	%		831,259			908,239			76,981			9.3	%

Benefits and expenses:
	Benefits and claims		112,831			101,755			113,988			113,201			118,443			111,480			122,751			8,764			7.7	%		328,574			352,674			24,100			7.3	%
	Amortization of DAC		56,673			51,257			56,904			63,779			64,066			56,179			61,548			4,644			8.2	%		164,834			181,792			16,959			10.3	%
	Insurance commissions		2,228			2,856			2,936			2,244			2,163			2,298			3,311			375			12.8	%		8,019			7,772			(247	)		-3.1	%
	Insurance expenses		38,956			41,282			39,807			40,600			41,832			42,914			43,157			3,349			8.4	%		120,045			127,902			7,857			6.5	%
	Benefits and expenses		210,688			197,150			213,635			219,824			226,504			212,870			230,766			17,132			8.0	%		621,473			670,141			48,668			7.8	%
	Income before income taxes	$	59,621		$	75,827		$	74,338		$	72,117		$	70,339		$	83,999		$	83,761		$	9,423			12.7	%	$	209,786		$	238,098		$	28,312			13.5	%

Investment & Savings Products
Revenues:
	Commissions and fees:
	Sales-based	$	64,461		$	64,307		$	64,181		$	67,041		$	66,997		$	71,438		$	69,034		$	4,853			7.6	%	$	192,949		$	207,469		$	14,520			7.5	%
	Asset-based		74,649			75,672			78,318			75,012			73,639			79,317			81,009			2,691			3.4	%		228,640			233,965			5,325			2.3	%
	Account-based		20,595			20,438			20,306			20,463			19,613			19,897			20,449			142			0.7	%		61,339			59,958			(1,381	)		-2.3	%
	Other, net		2,336			2,424			2,464			2,408			2,423			2,434			2,661			197			8.0	%		7,223			7,517			294			4.1	%
	Revenues		162,042			162,841			165,269			164,924			162,671			173,085			173,153			7,884			4.8	%		490,151			508,909			18,758			3.8	%

Benefits and expenses:
	Amortization of DAC		3,442			2,080			2,349			1,896			477			2,101			2,044			(304	)		-13.0	%		7,870			4,622			(3,247	)		-41.3	%
	Insurance commissions		3,199			3,132			3,193			3,042			3,025			3,155			3,257			64			2.0	%		9,525			9,437			(87	)		-0.9	%
	Sales commissions:
	Sales-based		46,259			45,905			45,634			47,424			47,831			50,679			48,652			3,018			6.6	%		137,797			147,161			9,364			6.8	%
	Asset-based		32,484			33,350			34,813			33,297			32,343			35,665			35,875			1,062			3.1	%		100,646			103,882			3,236			3.2	%
	Other operating expenses		36,673			35,147			34,228			33,619			36,312			34,143			34,530			302			0.9	%		106,048			104,986			(1,063	)		-1.0	%
	Benefits and expenses		122,057			119,613			120,217			119,277			119,988			125,742			124,359			4,142			3.4	%		361,886			370,089			8,202			2.3	%
	Income before income taxes	$	39,985		$	43,228		$	45,052		$	45,647		$	42,684		$	47,343		$	48,794		$	3,742			8.3	%	$	128,265		$	138,821		$	10,556			8.2	%

Corporate & Other Distributed Products
Revenues:
	Direct premiums	$	6,721		$	6,686		$	7,039		$	5,829		$	6,531		$	6,258		$	6,719		$	(320	)		-4.5	%	$	20,446		$	19,508		$	(938	)		-4.6	%
	Ceded premiums		(1,688	)		(1,763	)		(1,843	)		(2,118	)		(1,695	)		(1,661	)		(1,862	)		(18	)		-1.0	%		(5,295	)		(5,217	)		77			1.5	%
	Net premiums		5,033			4,923			5,195			3,711			4,836			4,597			4,858			(338	)		-6.5	%		15,151			14,291			(860	)		-5.7	%
	Allocated net investment income		17,216			17,159			17,413			17,574			17,521			17,684			17,018			(396	)		-2.3	%		51,789			52,223			434			0.8	%
	Commissions and fees:
	Prepaid Legal Services		3,669			3,607			4,431			4,586			3,737			4,159			4,776			345			7.8	%		11,707			12,672			964			8.2	%
	Auto and Homeowners Insurance		1,347			1,800			1,516			2,386			1,500			1,877			2,165			649			42.8	%		4,662			5,542			880			18.9	%
	Other sales commissions		2,106			2,116			2,127			2,472			1,829			1,781			2,286			159			7.5	%		6,349			5,896			(453	)		-7.1	%
	Other, net		1,145			1,453			1,281			1,102			1,056			1,336			1,052			(229	)		-17.9	%		3,880			3,445			(435	)		-11.2	%
	Adjusted operating revenues		30,516			31,058			31,964			31,831			30,479			31,435			32,154			190			0.6	%		93,539			94,068			529			0.6	%

Benefits and expenses:
	Benefits and claims		4,059			3,314			4,799			3,636			3,842			3,588			5,933			1,134			23.6	%		12,172			13,363			1,190			9.8	%
	Amortization of DAC		50			510			282			509			85			482			291			9			3.2	%		842			858			16			1.9	%
	Insurance commissions		450			428			455			326			431			376			411			(44	)		-9.7	%		1,334			1,218			(116	)		-8.7	%
	Insurance expenses		2,153			2,169			2,118			1,071			1,570			1,656			1,697			(421	)		-19.9	%		6,440			4,923			(1,516	)		-23.5	%
	Sales commissions		3,777			3,700			4,141			4,602			3,626			3,755			4,535			394			9.5	%		11,618			11,916			298			2.6	%
	Interest expense		7,173			7,229			7,216			7,192			7,180			7,201			7,209			(7	)		-0.1	%		21,617			21,589			(28	)		-0.1	%
	Other operating expenses		26,554			19,936			20,484			22,965			29,394			21,774			20,314			(170	)		-0.8	%		66,974			71,482			4,507			6.7	%
	Benefits and expenses		44,216			37,287			39,495			40,301			46,127			38,831			40,390			895			2.3	%		120,998			125,348			4,351			3.6	%
	Adjusted operating income before income taxes	$	(13,700	)	$	(6,228	)	$	(7,531	)	$	(8,471	)	$	(15,648	)	$	(7,396	)	$	(8,236	)	$	(705	)		-9.4	%	$	(27,459	)	$	(31,281	)	$	(3,822	)		-13.9	%

																							YOY Q3												YOY YTD
(Dollars in thousands)		Q1 2018			Q2 2018			Q3 2018			Q4 2018			Q1 2019			Q2 2019			Q3 2019			$ Change			% Change			YTD 2018			YTD 2019			$ Change			% Change
Term Life Insurance Income Before Income Taxes
	Revenues:
	Direct Premiums	$	649,366		$	660,505		$	663,183		$	667,776		$	670,755		$	681,004		$	685,539		$	22,356			3.4	%	$	1,973,054		$	2,037,298		$	64,244			3.3	%
	Premiums ceded to IPO coinsurers (1)		(294,301	)		(290,956	)		(284,742	)		(281,265	)		(276,150	)		(272,596	)		(267,856	)		16,886			5.9	%		(869,999	)		(816,602	)		53,397			6.1	%
	Adjusted direct premiums (2)		355,065			369,548			378,441			386,511			394,605			408,408			417,683			39,242			10.4	%		1,103,055			1,220,696			117,641			10.7	%
	Other ceded premiums (3)		(98,260	)		(110,730	)		(104,590	)		(108,908	)		(111,950	)		(126,330	)		(119,264	)		(14,675	)		-14.0	%		(313,580	)		(357,544	)		(43,965	)		-14.0	%
	Net premiums		256,805			258,818			273,851			277,603			282,655			282,077			298,419			24,567			9.0	%		789,475			863,151			73,676			9.3	%
	Allocated net investment income		3,089			3,246			3,506			3,907			4,444			4,736			5,123			1,617			46.1	%		9,841			14,303			4,463			45.3	%
	Other, net		10,415			10,913			10,615			10,431			9,744			10,055			10,985			371			3.5	%		31,943			30,785			(1,158	)		-3.6	%
	Revenues		270,309			272,978			287,972			291,941			296,843			296,869			314,527			26,555			9.2	%		831,259			908,239			76,981			9.3	%

	Benefits and expenses:
	Benefits and claims		112,831			101,755			113,988			113,201			118,443			111,480			122,751			8,764			7.7	%		328,574			352,674			24,100			7.3	%
	Amortization of DAC		56,673			51,257			56,904			63,779			64,066			56,179			61,548			4,644			8.2	%		164,834			181,792			16,959			10.3	%
	Insurance commissions		2,228			2,856			2,936			2,244			2,163			2,298			3,311			375			12.8	%		8,019			7,772			(247	)		-3.1	%
	Insurance expenses		38,956			41,282			39,807			40,600			41,832			42,914			43,157			3,349			8.4	%		120,045			127,902			7,857			6.5	%
	Benefits and expenses		210,688			197,150			213,635			219,824			226,504			212,870			230,766			17,132			8.0	%		621,473			670,141			48,668			7.8	%
	Income before income taxes	$	59,621		$	75,827		$	74,338		$	72,117		$	70,339		$	83,999		$	83,761		$	9,423			12.7	%	$	209,786		$	238,098		$	28,312			13.5	%

Total Term Life Insurance - Financial Analysis
	Primary direct premiums (4)	$	267,615		$	280,209		$	287,554		$	294,006		$	300,708		$	312,436		$	320,424		$	32,869			11.4	%	$	835,379		$	933,568		$	98,189			11.8	%
	Legacy direct premiums (5)		381,751			380,295			375,629			373,770			370,047			368,568			365,115			(10,514	)		-2.8	%		1,137,675			1,103,730			(33,945	)		-3.0	%
	Total direct premiums	$	649,366		$	660,505		$	663,183		$	667,776		$	670,755		$	681,004		$	685,539		$	22,356			3.4	%	$	1,973,054		$	2,037,298		$	64,244			3.3	%

	Premiums ceded to IPO coinsurers	$	294,301		$	290,956		$	284,742		$	281,265		$	276,150		$	272,596		$	267,856		$	(16,886	)		-5.9	%	$	869,999		$	816,602		$	(53,397	)		-6.1	%
	% of Legacy direct premiums		77.1	%		76.5	%		75.8	%		75.3	%		74.6	%		74.0	%		73.4	%	nm			nm				76.5	%		74.0	%	nm			nm

	Benefits and claims, net (6)	$	211,091		$	212,485		$	218,577		$	222,109		$	230,392		$	237,810		$	242,016		$	23,438			10.7	%	$	642,154		$	710,218		$	68,065			10.6	%
	% of adjusted direct premiums		59.5	%		57.5	%		57.8	%		57.5	%		58.4	%		58.2	%		57.9	%	nm			nm				58.2	%		58.2	%	nm			nm

	DAC amortization & insurance commissions	$	58,901		$	54,113		$	59,839		$	66,023		$	66,229		$	58,477		$	64,858		$	5,019			8.4	%	$	172,853		$	189,565		$	16,712			9.7	%
	% of adjusted direct premiums		16.6	%		14.6	%		15.8	%		17.1	%		16.8	%		14.3	%		15.5	%	nm			nm				15.7	%		15.5	%	nm			nm

	Insurance expenses, net (7)	$	28,541		$	30,369		$	29,193		$	30,169		$	32,088		$	32,858		$	32,171		$	2,978			10.2	%	$	88,102		$	97,118		$	9,015			10.2	%
	% of adjusted direct premiums		8.0	%		8.2	%		7.7	%		7.8	%		8.1	%		8.0	%		7.7	%	nm			nm				8.0	%		8.0	%	nm			nm

	Total Term Life income before income taxes	$	59,621		$	75,827		$	74,338		$	72,117		$	70,339		$	83,999		$	83,761		$	9,423			12.7	%	$	209,786		$	238,098		$	28,312			13.5	%
	Term Life operating margin (8)		16.8	%		20.5	%		19.6	%		18.7	%		17.8	%		20.6	%		20.1	%	nm			nm				19.0	%		19.5	%	nm			nm

																								YOY Q3												YOY YTD
(Dollars in thousands, except as noted)			Q1 2018			Q2 2018			Q3 2018			Q4 2018			Q1 2019			Q2 2019			Q3 2019			$/# Change			% Change			YTD 2018			YTD 2019			$/# Change			% Change
Key Statistics

Life-insurance licensed sales force, beginning of period				126,121			127,182			130,156			130,658			130,736			129,821			129,550			(606	)		-0.5	%		126,121			130,736			4,615			3.7	%
	New life-licensed representatives			11,730			13,544			11,715			11,052			10,065			10,919			12,682			967			8.3	%		36,989			33,666			(3,323	)		-9.0	%
	Non-renewal and terminated representatives			(10,669	)		(10,570	)		(11,213	)		(10,974	)		(10,980	)		(11,190	)		(11,361	)		(148	)		-1.3	%		(32,452	)		(33,531	)		(1,079	)		-3.3	%
Life-insurance licensed sales force, end of period				127,182			130,156			130,658			130,736			129,821			129,550			130,871			213			0.2	%		130,658			130,871			213			0.2	%

Estimated annualized issued term life premium ($mills) (1):
	Premium from new policies		$	60.4		$	71.1		$	64.6		$	62.4		$	56.1		$	68.2		$	65.2		$	0.7			1.0	%	$	196.1		$	189.6		$	(6.5	)		-3.3	%
	Additions and increases in premium			16.9			18.7			18.4			19.1			18.4			20.8			20.1			1.7			9.3	%		53.9			59.2			5.3			9.7	%
		Total estimated annualized issued term life premium	$	77.3		$	89.8		$	82.9		$	81.4		$	74.5		$	89.0		$	85.3		$	2.4			2.8	%	$	250.0		$	248.8		$	(1.3	)		-0.5	%

Issued term life policies				70,821			83,754			74,892			72,122			64,242			78,664			73,434			(1,458	)		-1.9	%		229,467			216,340			(13,127	)		-5.7	%
Estimated average annualized issued term life premium per policy (1)(2)			$	853		$	849		$	862		$	865		$	874		$	867		$	888		$	26			3.0	%	$	855		$	876		$	22			2.5	%

Term life face amount in-force, beginning of period ($mills)			$	763,831		$	765,732		$	773,604		$	781,276		$	781,041		$	785,552		$	796,376		$	22,772			2.9	%	$	763,831		$	781,041		$	17,210			2.3	%
	Issued term life face amount (3)			22,258			26,001			23,728			23,222			20,925			25,300			24,087			359			1.5	%		71,987			70,312			(1,675	)		-2.3	%
	Terminated term life face amount			(17,788	)		(16,341	)		(17,638	)		(18,525	)		(18,383	)		(16,512	)		(17,740	)		(102	)		-0.6	%		(51,766	)		(52,635	)		(869	)		-1.7	%
	Foreign currency impact, net			(2,570	)		(1,788	)		1,582			(4,932	)		1,969			2,036			(1,228	)		(2,810	)	nm				(2,776	)		2,776			5,552		nm
Term life face amount in-force, end of period			$	765,732		$	773,604		$	781,276		$	781,041		$	785,552		$	796,376		$	801,494		$	20,218			2.6	%	$	781,276		$	801,494		$	20,218			2.6	%

(1) Estimated annualized issued term life premium - estimated as average premium per $1,000 of face amounts issued on new policies and additions (before free look returns) multiplied by actual face amount issued on new policies, rider additions and face amount increases.

(3) Issued term life face amount - includes face amount on issued term life policies, additional riders added to existing policies, and face increases under increasing benefit riders.

																							YOY Q3												YOY YTD
(Dollars in thousands, except as noted)		Q1 2018			Q2 2018			Q3 2018			Q4 2018			Q1 2019			Q2 2019			Q3 2019			$ Change			% Change			YTD 2018			YTD 2019			$ Change			% Change
Investment & Savings Products Income Before Income Taxes
	Revenues:
	Commissions and fees:
	Sales-based	$	64,461		$	64,307		$	64,181		$	67,041		$	66,997		$	71,438		$	69,034		$	4,853			7.6	%	$	192,949		$	207,469		$	14,520			7.5	%
	Asset-based		74,649			75,672			78,318			75,012			73,639			79,317			81,009			2,691			3.4	%		228,640			233,965			5,325			2.3	%
	Account-based		20,595			20,438			20,306			20,463			19,613			19,897			20,449			142			0.7	%		61,339			59,958			(1,381	)		-2.3	%
	Other, net		2,336			2,424			2,464			2,408			2,423			2,434			2,661			197			8.0	%		7,223			7,517			294			4.1	%
	Revenues		162,042			162,841			165,269			164,924			162,671			173,085			173,153			7,884			4.8	%		490,151			508,909			18,758			3.8	%

	Benefits and expenses:
	Amortization of DAC		3,442			2,080			2,349			1,896			477			2,101			2,044			(304	)		-13.0	%		7,870			4,622			(3,247	)		-41.3	%
	Insurance commissions		3,199			3,132			3,193			3,042			3,025			3,155			3,257			64			2.0	%		9,525			9,437			(87	)		-0.9	%
	Sales commissions:
	Sales-based		46,259			45,905			45,634			47,424			47,831			50,679			48,652			3,018			6.6	%		137,797			147,161			9,364			6.8	%
	Asset-based		32,484			33,350			34,813			33,297			32,343			35,665			35,875			1,062			3.1	%		100,646			103,882			3,236			3.2	%
	Other operating expenses		36,673			35,147			34,228			33,619			36,312			34,143			34,530			302			0.9	%		106,048			104,986			(1,063	)		-1.0	%
	Benefits and expenses		122,057			119,613			120,217			119,277			119,988			125,742			124,359			4,142			3.4	%		361,886			370,089			8,202			2.3	%
	Income before income taxes	$	39,985		$	43,228		$	45,052		$	45,647		$	42,684		$	47,343		$	48,794		$	3,742			8.3	%	$	128,265		$	138,821		$	10,556			8.2	%

Financial Analysis

	Fees paid based on client asset values (1)	$	5,690		$	5,833		$	6,037		$	5,962		$	5,898		$	5,705		$	6,225		$	188			3.1	%	$	17,560		$	17,828		$	269			1.5	%
	Fees paid based on fee-generating positions (2)		12,495			10,854			10,223			10,219			11,159			9,658			9,354			(869	)		-8.5	%		33,573			30,172			(3,401	)		-10.1	%
	Other operating expenses		18,488			18,460			17,968			17,437			19,254			18,780			18,951			983			5.5	%		54,916			56,985			2,069			3.8	%
	Total other operating expenses	$	36,673		$	35,147		$	34,228		$	33,619		$	36,312		$	34,143		$	34,530		$	302			0.9	%	$	106,048		$	104,986		$	(1,063	)		-1.0	%

	Sales-based net revenue as % of revenue-generating sales (3)
	U.S.		1.24	%		1.27	%		1.26	%		1.35	%		1.33	%		1.29	%		1.31	%	nm			nm				1.25	%		1.31	%	nm			nm
	Canada		1.05	%		0.95	%		0.90	%		0.90	%		1.00	%		0.97	%		0.96	%	nm			nm				0.98	%		0.98	%	nm			nm
	Total		1.20	%		1.22	%		1.21	%		1.29	%		1.28	%		1.25	%		1.27	%	nm			nm				1.21	%		1.27	%	nm			nm

	Asset-based net revenue as % of average asset values (4)
	U.S.		0.036	%		0.037	%		0.037	%		0.037	%		0.036	%		0.038	%		0.038	%	nm			nm				0.110	%		0.112	%	nm			nm
	Canada		0.111	%		0.123	%		0.121	%		0.122	%		0.136	%		0.120	%		0.121	%	nm			nm				0.355	%		0.375	%	nm			nm
	Total		0.048	%		0.051	%		0.050	%		0.051	%		0.052	%		0.051	%		0.051	%	nm			nm				0.150	%		0.154	%	nm			nm

	Account-based net revenue per average fee generating position (5)(6)	$	2.90		$	3.49		$	3.70		$	3.80		$	3.20		$	3.88		$	4.18		nm			nm			$	10.08		$	11.27		nm			nm

																										YOY Q3												YOY YTD
(Dollars in thousands, except as noted)					Q1 2018			Q2 2018			Q3 2018			Q4 2018			Q1 2019			Q2 2019			Q3 2019			$/# Change			% Change			YTD 2018			YTD 2019			$/# Change			% Change
Key Statistics

	Product sales ($mills)
		U.S. Retail Mutual Funds			$	792.4		$	800.6		$	763.3		$	767.8		$	710.2		$	855.9		$	829.7		$	66.5			8.7	%	$	2,356.3		$	2,395.9		$	39.6			1.7	%
		Canada Retail Mutual Funds				276.2			199.2			181.7			182.6			244.1			199.7			184.9			3.2			1.8	%		657.1			628.6			(28.5	)		-4.3	%
		Indexed Annuities				67.5			71.9			78.8			88.2			81.0			88.2			75.0			(3.9	)		-4.9	%		218.3			244.1			25.8			11.8	%
		Variable Annuities and other				376.1			432.2			504.5			476.8			465.8			514.2			512.8			8.3			1.6	%		1,312.8			1,492.9			180.1			13.7	%
				Total sales-based revenue generating product sales		1,512.2			1,504.0			1,528.3			1,515.3			1,501.1			1,658.0			1,602.4			74.1			4.8	%		4,544.4			4,761.5			217.0			4.8	%
		Managed Accounts				188.8			204.3			190.5			169.4			161.6			203.5			176.9			(13.6	)		-7.1	%		583.6			542.0			(41.6	)		-7.1	%
		Segregated Funds and other				82.0			50.6			43.7			50.9			94.3			76.0			76.4			32.7			74.9	%		176.3			246.7			70.3			39.9	%
				Total product sales	$	1,783.0		$	1,758.9		$	1,762.4		$	1,735.7		$	1,757.0		$	1,937.4		$	1,855.7		$	93.3			5.3	%	$	5,304.4		$	5,550.2		$	245.8			4.6	%

		Canada Retail Mutual Funds			$	276.2		$	199.2		$	181.7		$	182.6		$	244.1		$	199.7		$	184.9		$	3.2			1.8	%	$	657.1		$	628.6		$	(28.5	)		-4.3	%
		Segregated Funds and other				82.0			50.6			43.7			50.9			94.3			76.0			76.4			32.7			74.9	%		176.3			246.7			70.3			39.9	%
			Total Canada product sales			358.2			249.8			225.4			233.6			338.4			275.6			261.3			35.9			15.9	%		833.4			875.3			41.9			5.0	%
			Total U.S. product sales			1,424.8			1,509.1			1,537.1			1,502.1			1,418.6			1,661.8			1,594.4			57.4			3.7	%		4,471.0			4,674.9			203.9			4.6	%
				Total product sales	$	1,783.0		$	1,758.9		$	1,762.4		$	1,735.7		$	1,757.0		$	1,937.4		$	1,855.7		$	93.3			5.3	%	$	5,304.4		$	5,550.2		$	245.8			4.6	%

	Client asset values, beginning of period ($mills)				$	61,167		$	60,821		$	61,777		$	64,234		$	57,704		$	63,602		$	65,878		$	4,101			6.6	%	$	61,167		$	57,704		$	(3,463	)		-5.7	%
		Inflows				1,783			1,759			1,762			1,736			1,757			1,937			1,856			93			5.3	%		5,304			5,550			246			4.6	%
		Outflows (1)				(1,571	)		(1,498	)		(1,499	)		(1,376	)		(1,530	)		(1,633	)		(1,669	)		(171	)		-11.4	%		(4,568	)		(4,832	)		(264	)		-5.8	%
				Net flows		212			261			264			360			227			305			186			(77	)		-29.3	%		736			718			(18	)	nm
		Foreign currency impact, net				(283	)		(195	)		174			(543	)		201			225			(136	)		(310	)	nm				(304	)		290			594		nm
		Change in market value, net and other (2)				(276	)		891			2,019			(6,346	)		5,470			1,746			294			(1,725	)		-85.4	%		2,634			7,510			4,876		nm
	Client asset values, end of period				$	60,821		$	61,777		$	64,234		$	57,704		$	63,602		$	65,878		$	66,222		$	1,988			3.1	%	$	64,234		$	66,222		$	1,988			3.1	%
		Annualized net flows as % of beginning of period asset values				1.4	%		1.7	%		1.7	%		2.2	%		1.6	%		1.9	%		1.1	%		-0.6	%	nm				1.6	%		1.7	%		0.1	%	nm

	Average client asset values ($mills)
		U.S. Retail Mutual Funds			$	30,674		$	30,348		$	31,439		$	30,156		$	30,266		$	31,744		$	32,521		$	1,083			3.4	%	$	30,820		$	31,510		$	690			2.2	%
		Canada Retail Mutual Funds				7,508			7,444			7,610			7,252			7,390			7,795			7,991			380			5.0	%		7,521			7,725			204			2.7	%
		Managed Accounts				2,739			2,930			3,179			3,189			3,241			3,455			3,652			473			14.9	%		2,949			3,450			500			17.0	%
		Indexed Annuities				1,939			1,997			2,049			2,117			2,182			2,247			2,296			247			12.0	%		1,995			2,242			247			12.4	%
		Variable Annuities and other				16,333			16,176			16,669			15,982			16,057			16,807			17,114			445			2.7	%		16,393			16,659			267			1.6	%
		Segregated Funds				2,510			2,402			2,417			2,311			2,314			2,378			2,428			11			0.5	%		2,443			2,373			(70	)		-2.9	%
				Total	$	61,704		$	61,297		$	63,363		$	61,006		$	61,451		$	64,426		$	66,002		$	2,639			4.2	%	$	62,121		$	63,959		$	1,838			3.0	%

		Canada Retail Mutual Funds			$	7,508		$	7,444		$	7,610		$	7,252		$	7,390		$	7,795		$	7,991		$	380			5.0	%	$	7,521		$	7,725		$	204			2.7	%
		Segregated Funds				2,510			2,402			2,417			2,311			2,314			2,378			2,428			11			0.5	%		2,443			2,373			(70	)		-2.9	%
			Total Canada average client assets			10,018			9,846			10,027			9,562			9,704			10,173			10,418			391			3.9	%		9,964			10,098			134			1.3	%
			Total U.S. average client assets			51,685			51,451			53,336			51,444			51,747			54,253			55,583			2,248			4.2	%		52,157			53,861			1,704			3.3	%
				Total average client assets	$	61,704		$	61,297		$	63,363		$	61,006		$	61,451		$	64,426		$	66,002		$	2,639			4.2	%	$	62,121		$	63,959		$	1,838			3.0	%

	Average number of fee-generating positions (thous) (3)
		Recordkeeping and custodial				2,130			2,086			2,066			2,042			1,998			1,996			2,007			(59	)		-2.9	%		2,094			2,000			(94	)		-4.5	%
		Recordkeeping only				665			660			657			652			641			641			646			(11	)		-1.7	%		661			642			(18	)		-2.8	%
				Total		2,795			2,746			2,723			2,694			2,639			2,637			2,653			(71	)		-2.6	%		2,755			2,643			(112	)		-4.1	%

				As of or for the period ended September 30, 2019
										% of Total						Avg
				Market		Amortized		Unrealized		Market			Amortized			Book			Avg
(Dollars in thousands)				Value		Cost		G/(L)		Value			Cost			Yield			Rating
Investment Portfolio by Asset Class

Cash, Cash Equivalents, and Short Term				$	237,746	$	237,746	$	-		9.2	%		9.5	%

Fixed Income:
	Treasury				29,591		29,009		582		1.1	%		1.2	%		2.33	%	AAA
	Government				207,885		198,566		9,319		8.0	%		7.9	%		3.20	%	AA-
	Tax-Exempt Municipal				30,868		29,207		1,661		1.2	%		1.2	%		3.39	%	AA
	Corporate				1,409,821		1,353,460		56,361		54.6	%		54.2	%		3.81	%	BBB+
	Mortgage Backed				258,689		252,201		6,488		10.0	%		10.1	%		3.23	%	AAA
	Asset Backed				97,190		96,258		932		3.8	%		3.9	%		3.07	%	AA+
	CMBS				133,364		129,179		4,185		5.2	%		5.2	%		3.12	%	AA+
	Private				135,203		130,390		4,813		5.2	%		5.2	%		4.73	%	BBB
	Redeemable Preferred				3,265		2,947		318		0.1	%		0.1	%		5.79	%	BBB
			Total Fixed Income		2,305,876		2,221,217		84,660		89.2	%		88.9	%		3.65	%	A

Equities:
	Perpetual Preferred				13,331		13,331		-		0.5	%		0.5	%
	Common Stock				19,093		19,093		-		0.7	%		0.8	%
	Mutual Fund				7,643		7,643		-		0.3	%		0.3	%
	Other				14		14		0		0.0	%		0.0	%
			Total Equities		40,081		40,081		0		1.6	%		1.6	%

			Total Invested Assets	$	2,583,703	$	2,499,043	$	84,660		100.0	%		100.0	%

Corporate Portfolio by Sector

	Consumer Non Cyclical			$	186,152	$	178,877	$	7,275		13.2	%		13.2	%
	Banking				176,618		171,946		4,672		12.5	%		12.7	%
	Reits				137,004		131,110		5,893		9.7	%		9.7	%
	Energy				120,915		115,927		4,988		8.6	%		8.6	%
	Technology				118,025		113,676		4,349		8.4	%		8.4	%
	Insurance				114,732		108,995		5,737		8.1	%		8.1	%
	Capital Goods				99,747		97,205		2,542		7.1	%		7.2	%
	Consumer Cyclical				94,869		90,696		4,173		6.7	%		6.7	%
	Communications				81,434		77,552		3,883		5.8	%		5.7	%
	Electric				72,396		68,628		3,769		5.1	%		5.1	%
	Transportation				67,783		65,332		2,451		4.8	%		4.8	%
	Basic Industry				65,840		63,266		2,575		4.7	%		4.7	%
	Brokerage				35,439		33,133		2,305		2.5	%		2.4	%
	Finance Companies				16,608		15,637		971		1.2	%		1.2	%
	Industrial Other				10,888		10,515		373		0.8	%		0.8	%
	Natural Gas				7,712		7,438		274		0.5	%		0.5	%
	Financial Other				2,614		2,528		86		0.2	%		0.2	%
	Utility Other				1,043		998		45		0.1	%		0.1	%
			Total Corporate portfolio	$	1,409,821	$	1,353,460	$	56,361		100.0	%		100.0	%

Fixed-Maturity Securities - Effective Maturity


Effective maturity
		< 1 Yr.		$	291,103	$	289,506	$	1,597		12.6	%		13.0	%		3.36	%
		1-2 Yrs.			273,650		269,837		3,812		11.9	%		12.1	%		3.41	%
		2-5 Yrs.			1,000,095		965,106		34,989		43.4	%		43.4	%		3.65	%
		5-10 Yrs.			625,466		590,840		34,626		27.1	%		26.6	%		3.88	%
		> 10 Yrs.			115,563		105,927		9,636		5.0	%		4.8	%		3.86	%
			Total Fixed Income	$	2,305,876	$	2,221,217	$	84,660		100.0	%		100.0	%		3.65	%

Duration

Fixed Income portfolio duration					3.6	years

Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

(Dollars in thousands)
Investment Portfolio Quality Ratings (1)
			Amortized Cost		% of Total
Total Fixed Income portfolio:
	Rating
	AAA		$	510,830		23.0	%
	AA			244,375		11.0	%
	A			490,432		22.1	%
	BBB			909,820		41.0	%
	Below Investment Grade			63,202		2.8	%
	NA			2,557		0.1	%
		Total Fixed Income	$	2,221,217		100.0	%




			Amortized Cost		% of Total							Amortized Cost		% of Total
Corporate asset class:								Private asset class:
	Rating								Rating
	AAA		$	14,481		1.1	%		AAA			$	-		—
	AA			99,271		7.3	%		AA				924		0.7	%
	A			402,201		29.7	%		A				12,017		9.2	%
	BBB			776,730		57.4	%		BBB				115,859		88.9	%
	Below Investment Grade			59,829		4.4	%		Below Investment Grade				1,589		1.2	%
	NA			948		0.1	%		NA				-		—
		Total Corporate	$	1,353,460		100.0	%				Total Private	$	130,390		100.0	%



CMBS asset class:								Mortgage-Backed asset class:
	Rating								Rating
	AAA		$	110,018		85.2	%		AAA			$	244,872		97.1	%
	AA			-		—			AA				4,707		1.9	%
	A			18,828		14.6	%		A				2,267		0.9	%
	BBB			-		—			BBB				229		0.1	%
	Below Investment Grade			332		0.3	%		Below Investment Grade				54		0.0	%
	NA			-		—			NA				71		0.0	%
		Total CMBS	$	129,179		100.0	%				Total Mortgage-Backed	$	252,201		100.0	%



Asset-Backed asset class:								Treasury & Government asset classes:
	Rating								Rating
	AAA		$	71,194		74.0	%		AAA			$	66,425		29.2	%
	AA			5,385		5.6	%		AA				114,178		50.2	%
	A			17,198		17.9	%		A				35,959		15.8	%
	BBB			817		0.8	%		BBB				9,740		4.3	%
	Below Investment Grade			126		0.1	%		Below Investment Grade				1,272		0.6	%
	NA			1,538		1.6	%		NA				0		0.0	%
		Total Asset-Backed	$	96,258		100.0	%				Total Treasury & Government	$	227,575		100.0	%



NAIC Designations

	1		$	1,000,987		55.5	%
	2			746,489		41.4	%
	3			46,872		2.6	%
	4			7,987		0.4	%
	5			497		0.0	%
	6			0		0.0	%			`
		U.S. Insurer Fixed Income (2)		1,802,831		100.0	%
	Other (3)			458,467
	Cash and cash equivalents			237,746
		Total Invested Assets	$	2,499,043

Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

																									YOY Q3
(Dollars in thousands)				Q1 2018			Q2 2018			Q3 2018			Q4 2018			Q1 2019			Q2 2019			Q3 2019			$ Change			% Change
Net Investment Income by Source
	Fixed-maturity securities (available-for-sale)			$	19,289		$	19,743		$	20,142		$	20,183		$	20,333		$	20,345		$	20,380		$	238		1.2%
	Fixed-maturity securities (held-to-maturity)				8,373			9,052			9,592			10,467			10,674			11,769			12,769			3,177		33.1%
	Equity Securities				513			466			482			495			487			446			448			(34	)	-7.1%
	Deposit asset underlying 10% reinsurance treaty				1,181			1,270			1,392			1,480			1,755			2,141			2,105			713		51.2%
	Deposit asset - Mark to Market				(1,288	)		(375	)		(297	)		280			2,147			2,447			534			831		n/m
	Policy loans and other invested assets				411			390			391			478			467			299			234			(157	)	-40.2%
	Cash & cash equivalents				586			641			664			1,030			1,056			1,414			1,191			527		n/m
			Total investment income		29,065			31,187			32,366			34,413			36,919			38,862			37,661			5,295		16.4%
	Investment expenses				1,675			2,105			2,152			2,186			2,134			2,225			2,217			65		3.0%
	Interest Expense on Surplus Note				8,373			9,052			9,592			10,467			10,674			11,769			12,769			3,177		33.1%
			Net investment income	$	19,017		$	20,030		$	20,622		$	21,760		$	24,111		$	24,868		$	22,675		$	2,053		10.0%
		Fixed income book yield, end of period			3.92	%		3.91	%		3.88	%		3.89	%		3.85	%		3.74	%		3.65	%
		New money yield			2.43	%		3.16	%		3.34	%		2.81	%		3.56	%		3.10	%		2.73	%

																									YOY Q3
				Q1 2018			Q2 2018			Q3 2018			Q4 2018			Q1 2019			Q2 2019			Q3 2019			% Pt Change
Fixed Income Portfolio Quality Ratings
	Rating
	AAA				19.8	%		20.9	%		22.0	%		21.2	%		21.4	%		20.9	%		23.0	%		0.9	%
	AA				8.6	%		9.8	%		10.6	%		10.4	%		10.9	%		11.3	%		11.0	%		0.4	%
	A				23.4	%		23.0	%		22.2	%		22.4	%		22.9	%		22.9	%		22.1	%		-0.1	%
	BBB				44.6	%		43.0	%		42.2	%		42.9	%		41.8	%		41.8	%		41.0	%		-1.2	%
	Below Investment Grade				3.4	%		3.1	%		2.7	%		2.8	%		2.9	%		3.0	%		2.8	%		0.1	%
	NA				0.2	%		0.2	%		0.2	%		0.2	%		0.1	%		0.1	%		0.1	%		-0.1	%
			Total Fixed Income		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		—

			Average rating by amortized cost	A			A			A			A			A			A			A

				As of September 30, 2019									As of September 30, 2019						As of September 30, 2019
				Market Value			Amortized Cost			Credit Rating			Market Value		Amortized Cost				Market Value		Amortized Cost
Top 25 Exposures											Foreign Exposure (1)						Government Investments (1)

	1	Canada		$	23,966		$	23,608		AAA	Canada		$	61,733	$	58,838	AAA		$	3,288	$	3,250
	2	Province of Quebec Canada			13,743			12,565		AA-	United Kingdom			41,150		39,805	AA			13,669		13,327
	3	Province of Alberta Canada			11,419			10,934		A+	Australia			39,812		38,036	A			6,130		5,819
	4	Cigna Corp			11,261			10,846		A-	Germany			17,849		17,637	BBB			8,774		8,125
	5	Province of Ontario Canada			10,775			10,319		A+	Switzerland			15,949		15,649	Below Investment Grade			1,292		1,272
	6	Province of British Columbia C			10,583			10,330		AAA	France			15,534		15,058	NA			—		—
	7	Bank of America Corp			10,449			10,168		A-	Ireland			13,079		12,549		Total	$	33,154	$	31,793
	8	Wells Fargo & Co			10,153			9,894		A-	Bermuda			12,232		11,770
	9	Province of New Brunswick Canada			9,737			9,346		A+	Cayman Islands			11,807		11,648
	10	Honda Motor Co Ltd			9,691			9,401		A	Japan			7,315		6,949	Non-Government Investments (1)
	11	City of Toronto Canada			9,623			9,287		AA	Netherlands			7,176		6,332
	12	Province of Manitoba Canada			9,242			8,877		A+	Israel			5,388		5,019	AAA		$	4,813	$	4,784
	13	City of Houston TX			9,132			9,100		AA-	Norway			5,046		5,053	AA			31,307		30,894
	14	Goldman Sachs Group Inc/The			9,003			8,822		BBB+	Belgium			4,957		4,806	A			64,451		62,279
	15	Enbridge Inc			8,984			8,637		BBB+	Mexico			4,755		4,455	BBB			164,504		157,204
	16	Municipal Finance Authority of British Columbia			8,741			8,540		AAA	Emerging Markets (2)			10,440		9,988	Below Investment Grade			7,662		7,022
	17	AbbVie Inc			8,599			8,498		A-	All Other			31,671		30,384	NA			—		—
	18	City of Montreal Canada			8,139			7,444		AA-		Total	$	305,892	$	293,975		Total	$	272,738	$	262,182
	19	JPMorgan Chase & Co			7,959			7,709		A-
	20	American Airlines Group Inc			7,840			7,532		AA-
	21	Morgan Stanley			7,801			7,472		A+
	22	General Mills Inc			7,601			7,331		BBB
	23	PNC Financial Services Group			7,593			7,426		A-
	24	Comcast Corp			7,585			7,273		A-
	25	Apple Inc			7,502			7,329		AA+
			Total	$	247,121		$	238,688

			% of total fixed income portfolio		9.6	%		9.6	%

Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.

(Dollars in millions)			2014			2015			2016			2017			2018			Q1 2018			Q2 2018			Q3 2018			Q4 2018			Q1 2019			Q2 2019			Q3 2019


Recruits				190,439			228,115			262,732			303,867			290,886			76,230			76,520			76,146			61,990			63,223			86,173			72,345


Life-insurance licensed sales force, beginning of period				95,566			98,358			106,710			116,827			126,121			126,121			127,182			130,156			130,658			130,736			129,821			129,550
	New life-licensed representatives			33,832			39,632			44,724			48,535			48,041			11,730			13,544			11,715			11,052			10,065			10,919			12,682
	Non-renewal and terminated representatives			(31,040	)		(31,280	)		(34,607	)		(39,241	)		(43,426	)		(10,669	)		(10,570	)		(11,213	)		(10,974	)		(10,980	)		(11,190	)		(11,361	)
Life-insurance licensed sales force, end of period				98,358			106,710			116,827			126,121			130,736			127,182			130,156			130,658			130,736			129,821			129,550			130,871


Issued term life policies				220,984			260,059			298,244			312,799			301,589			70,821			83,754			74,892			72,122			64,242			78,664			73,434


Issued term life face amount			$	69,574		$	79,111		$	89,869		$	95,635		$	95,209		$	22,258		$	26,001		$	23,728		$	23,222		$	20,925		$	25,300		$	24,087


Term life face amount in force, beginning of period			$	674,868		$	681,927		$	693,194		$	728,385		$	763,831		$	763,831		$	765,732		$	773,604		$	781,276		$	781,041		$	785,552		$	796,376
	Issued term life face amount			69,574			79,111			89,869			95,635			95,209			22,258			26,001			23,728			23,222			20,925			25,300			24,087
	Terminated term life face amount			(54,962	)		(53,580	)		(57,238	)		(65,958	)		(70,291	)		(17,788	)		(16,341	)		(17,638	)		(18,525	)		(18,383	)		(16,512	)		(17,740	)
	Foreign currency impact, net			(7,553	)		(14,263	)		2,560			5,769			(7,708	)		(2,570	)		(1,788	)		1,582			(4,932	)		1,969			2,036			(1,228	)
Term life face amount in force, end of period			$	681,927		$	693,194		$	728,385		$	763,831		$	781,041		$	765,732		$	773,604		$	781,276		$	781,041		$	785,552		$	796,376		$	801,494


Estimated annualized issued term life premium
	Premium from new policies		$	179.8		$	212.4		$	245.2		$	263.1		$	258.5		$	60.4		$	71.1		$	64.6		$	62.4		$	56.1		$	68.2		$	65.2
	Additions and increases in premium			51.6			54.9			60.4			65.5			73.0			16.9			18.7			18.4			19.1			18.4			20.8			20.1
		Total estimated annualized issued term life premium	$	231.4		$	267.3		$	305.7		$	328.6		$	331.5		$	77.3		$	89.8		$	82.9		$	81.4		$	74.5		$	89.0		$	85.3


Investment & Savings product sales			$	5,682.3		$	5,856.8		$	5,594.3		$	6,192.2		$	7,040.1		$	1,783.0		$	1,758.9		$	1,762.4		$	1,735.7		$	1,757.0		$	1,937.4		$	1,855.7

Investment & Savings average client asset values			$	46,936		$	48,477		$	49,427		$	56,791		$	61,842		$	61,704		$	61,297		$	63,363		$	61,006		$	61,451		$	64,426		$	66,002

	Page
Preface, definition of Non-GAAP financial measures	3
Condensed balance sheets and reconciliation of balance sheet non-GAAP to GAAP financial measures	4
Financial results and other statistical data	5
Statements of income	6
Reconciliation of statement of income GAAP to non-GAAP financial measures	7
Segment operating results	8
Term Life Insurance segment - financial results, key statistics, and financial analysis	9-10
Investment and Savings Products segment - financial results, financial analysis, and key statistics	11-12
Investment portfolio	13-15
Five-year historical key statistics	16