Primerica, Inc.

Previous wording

Volatility in capital markets in recent periods has continued to impact our business. Strong equity market performance in 2023 and 2024 influenced product sales and client asset values that drive revenue in the Investment and Savings Products segment. In addition, the rise in market interest rates in 2022 and further rate increases in 2023 have largely driven the unrealized losses that have accumulated in our investment portfolio. We have not recognized losses caused by interest rate volatility in the income statement for securities where we have no present intention to dispose of them and we have the ability to hold these investments until maturity or a market price recovery. Elevated interest rates have also led to increases in net investment income as we are able to earn higher returns on our new debt securities purchases and cash balances.

Current wording

Volatility in capital markets in recent periods has continued to impact our business. Strong equity market performance in 2023 and 2024 influenced product sales and client asset values that drive revenue in the Investment and Savings Products segment. Equity market prices have generally increased from the beginning of 2025 to September 30, 2025, which has continued to have a favorable impact on our Investment and Savings Products segment. The rise in market interest rates in 2022 and further rate increases in 2023 have largely driven the unrealized losses that have accumulated in our investment portfolio, although these unrealized losses have declined as interest rates decreased. We have not recognized losses caused by interest rate volatility in the income statement for securities where we have no present intention to dispose of them and we have the ability to hold these investments until maturity or a market price recovery. Elevated interest rates have also led to increases in net investment income as we are able to earn higher returns on our new debt securities purchases and cash balances.

Previous wording

The number of new recruits decreased during the three and six months ended June 30, 2025 compared to the same periods in 2024. The decreases are partly driven by the comparison to the 2024 periods, which included exceptionally strong activity in 2024. Recruiting activity in 2025 was comparatively slower than 2024 possibly due to headwinds from economic and government policy uncertainty.

Current wording

The number of new recruits decreased during the three and nine months ended September 30, 2025 compared to the same periods in 2024. The decreases are partly driven by the comparison to the 2024 periods, which included exceptionally strong activity, but the number of new recruits remains in line with historical trends. Approximately 81,000 individuals were recruited as a result of special incentives that were in place following our biennial convention in the third quarter of 2024.

Previous wording

New life-licensed independent sales representatives slightly decreased during the three and six months ended June 30, 2025 compared to the same periods in 2024, likely due to the same factors as the decline in number of new recruits. Despite the year-over-year decline, licensing activity in 2025 has remained strong compared to historical levels.

Current wording

New life-licensed independent sales representatives decreased during the three and nine months ended September 30, 2025 compared to the same periods in 2024, likely influenced by the same period-over-period dynamics that impacted the decline in number of new recruits. Despite the year-over-year decline, licensing activity in 2025 has remained comparable to historical levels.

Previous wording

The number of life-licensed independent sales representatives increased modestly as of June 30, 2025 compared to March 31, 2025 and December 31, 2024 as agent licensing activity slightly outpaced agent non-renewals during the three and six months ended June 30, 2025.

Current wording

The number of life-licensed independent sales representatives remained relatively flat during the 2025 periods as agent licensing activity was consistent with agent non-renewals.

Previous wording

The average number of life-licensed independent 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 independent sales representative (historically between 0.20 and 0.24), were as follows:

Current wording

The average number of life-licensed independent 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 independent sales representative (typically between 0.20 and 0.24), were as follows:

Previous wording

The average number of life-licensed independent sales representatives increased for the three and six months ended June 30, 2025 from the same periods in 2024 as a result of the cumulative impact of strong recruiting and licensing activity throughout 2024 that drove higher independent sales force counts in 2025.

Current wording

The average number of life-licensed independent sales representatives increased for the three and nine months ended September 30, 2025 from the same periods in 2024 as a result of the cumulative impact of strong recruiting and licensing activity throughout 2024 that drove higher independent sales force counts in 2025.

Previous wording

Productivity in the three and six months ended June 30, 2025, measured by the average monthly rate of new policies issued per life-licensed independent sales representative, was at the low end and slightly below our historical range, respectively, and decreased from the same periods in 2024. Economic uncertainties in 2025 along with the continued cost of living pressures appear to be contributing factors to the reduced productivity.

Current wording

Productivity in the three and nine months ended September 30, 2025, measured by the average monthly rate of new policies issued per life-licensed independent sales representative, was below our typical range and decreased from the same periods in 2024. The combination of lower life insurance policy sales as discussed above and growth in the size of the sales force since the beginning of 2024 have contributed to lower productivity.

Previous wording

The face amount of term life insurance policies in-force increased for the three and six months ended June 30, 2025 as the face amount issued continued to exceed the face amount terminated. Issued face amount decreased during the three and six months ended June 30, 2025 primarily due to the decrease in the number of new policies issued as discussed above. Policy terminations decreased year-over-year largely due to the timing impact of state insurance department-issued policy lapse restrictions in 2024. During 2025, the strengthening of the Canadian dollar relative to the U.S. dollar contributed to the increases in the face amount in-force, whereas a stronger U.S. dollar in relation to the Canadian dollar unfavorably impacted the translated face amount in-force in the 2024 periods.

Current wording

The face amount of term life insurance policies in-force decreased slightly for the three months ended September 30, 2025 primarily as a result of a stronger U.S. dollar in relation to the Canadian dollar even as the face amount issued exceeded the face amount terminated. Issued face amount decreased during the three months ended September 30, 2025 compared to the same period in 2024 primarily due to the decrease in the number of new policies issued as discussed above. Policy terminations increased slightly during the three months ended September 30, 2025 compared to the same period in 2024 but were largely consistent when measured as a percentage of beginning face amount in-force.

Previous wording

The previously reported statistical information of redemptions, net flows and change in fair value, net for the three and six months ended June 30, 2024 have been restated to reflect a correction in our methodology for presenting redemptions and calculating the change in market value for Canadian mutual fund client assets. This restatement has no impact on our financial statements, results of operations, product sales, nor average and ending client asset values during the relevant periods. In addition, we have assessed the qualitative impact of this correction as immaterial, most notably due to the immaterial impact that higher projections of future client asset redemptions would have on future earnings estimates. Redemptions, net flows, and change in fair value, net were previously reported as $(2,660) million, $423 million, and $1,512 million, respectively, for the three months ended June 30, 2024, and $(5,157) million, $696 million, and $8,236 million, respectively, for the six months ended June 30, 2024. Redemptions, net flows and change in fair value, net were previously reported as $(2,721) million, $838 million, and $(3,000) million, respectively, for the three months ended March 31, 2025 and the revised amounts under the new methodology for the same period are $(3,017) million, $542 million, and $(2,703) million, respectively.

Current wording

The previously reported statistical information of redemptions, net flows and change in fair value, net for the three and nine months ended September 30, 2024 have been restated to reflect a correction in our methodology for presenting redemptions and calculating the change in market value for Canadian mutual fund client assets. This restatement has no impact on our financial statements, results of operations, product sales, nor average and ending client asset values during the relevant periods. In addition, we have assessed the qualitative impact of this correction as immaterial, most notably due to the immaterial impact that higher projections of future client asset redemptions would have on future earnings estimates. Redemptions, net flows, and change in fair value, net were previously reported as $(2,461) million, $444 million, and $5,488 million, respectively, for the three months ended September 30, 2024, and $(7,617) million, $1,141 million, and $13,723 million, respectively, for the nine months ended September 30, 2024.

Previous wording

Product sales. Investment and savings product sales increased during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to sustained positive investor sentiment that followed strong equity market performance in 2023 and 2024 and continued during the second quarter of 2025. In particular, variable annuity product sales continued to lead the growth in sales as the guarantees offered by these products became more appealing to investors given strong equity market performance, expanded product offerings, and elevated interest rates leading up to and continuing through the first half of 2025. The increase in product sales for managed investments resulted from continued strength in investor demand for these products as well as the expansion of investment strategies offered on our platform.

Current wording

Product sales. Investment and savings product sales increased during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to sustained positive investor sentiment that followed strong equity market performance in 2023 and 2024 and continued during 2025. In particular, variable annuity product sales continued to grow as the guarantees offered by these products became more appealing to investors given strong equity market performance, expanded product offerings, and elevated interest rates leading up to and continuing through the first nine months of 2025. In addition, the increase in product sales for managed investments resulted from continued strength in investor demand for these products as well as the expansion of investment strategies offered on our platform. U.S. retail mutual fund sales also increased compared to the prior year period due to strong investor demand.

Previous wording

Rollforward of client asset values. Client asset values increased during the six months ended June 30, 2025 and the six months ended June 30, 2024 primarily due to the same factors as described in the three month comparison.

Current wording

Rollforward of client asset values. Client asset values increased during the three months ended September 30, 2025 and the three months ended September 30, 2024 primarily due to strong equity market performance, as well as positive net flows during the three months ended September 30, 2025. Partially offsetting these increases was movement in the foreign exchange rate as the U.S. dollar strengthened in relation to the Canadian dollar, which negatively impacted Canadian client asset values when translated to U.S. dollars for reporting purposes during the three months ended September 30, 2025.

Previous wording

Average client asset values. Average client asset values were higher for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily driven by the cumulative effect of strong market performance and net client inflows in 2024 and 2025.

Current wording

Average client asset values. Average client asset values were higher for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily driven by the cumulative effect of strong market performance and net client asset inflows in 2024 and 2025.

Previous wording

Changes in Investment and Savings Product Sales, Asset Values and Accounts/Positions During the Six Months Ended June 30, 2025

Current wording

Changes in Investment and Savings Product Sales, Asset Values and Accounts/Positions During the Nine Months Ended September 30, 2025

Previous wording

Product sales. Investment and savings product sales increased during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to the same factors as described in the three month comparison.

Current wording

Product sales. Investment and savings product sales increased during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to the same factors as described in the three month comparison.

Previous wording

Rollforward of client asset values. Client asset values increased during the three months ended June 30, 2025 and the three months ended June 30, 2024 primarily due to strong equity market performance. The movement in the foreign exchange rate as the Canadian dollar strengthened relative to the U.S. dollar as well as positive net flows also increased client asset values during the three months ended June 30, 2025.

Current wording

Rollforward of client asset values. Client asset values increased during the nine months ended September 30, 2025 and the nine months ended September 30, 2024 primarily due to strong equity market performance, as well as positive net flows and movement in the foreign exchange rate as the Canadian dollar strengthened relative to the U.S. dollar both contributed to the increase in client asset values during the nine months ended September 30, 2025.

Previous wording

Average client asset values. Average client asset values were higher for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to the same factors as described in the three month comparison.

Current wording

Average client asset values. Average client asset values were higher for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to the same factors as described in the three month comparison.

Previous wording

Average number of fee-generating positions. The average number of fee-generating positions was higher during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to the same factors as described in the three month comparison.

Current wording

Average number of fee-generating positions. The average number of fee-generating positions was higher during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to the same factors as described in the three month comparison.

Previous wording

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 the Term Life Insurance and Investment and Savings Products segments), interest expense on note payable, a redundant reserve financing transaction and our revolving credit facility (“Revolving Credit Facility”), as well as recognized gains and losses on our invested asset portfolio.

Current wording

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 the Term Life Insurance and Investment and Savings Products segments), interest expense on notes payable, a redundant reserve financing transaction and our revolving credit facility (“Revolving Credit Facility”), as well as recognized gains and losses on our invested asset portfolio.

Previous wording

Total revenues. Total revenues increased during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to increases in commissions and fees earned in our Investment and Savings Products segment, net premiums earned in our Term Life Insurance segment, and net investment income earned in our Corporate and Other Distributed Products segment. This increase was partially offset by investment losses realized in our Corporate and Other Distributed Products segment in the 2025 period and a one-time $50.0 million gain recognized within Other, net revenue in our Corporate and Other Distributed Products segment in the prior year period. These movements are further discussed in detail in the Segment Results sections below.

Current wording

Total revenues. Total revenues increased during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to increases in commissions and fees earned in our Investment and Savings Products segment and net premiums in our Term Life Insurance segment. Further discussion related to revenue movements are discussed in detail in the Segment Results section below.

Previous wording

Total benefits and expenses. Total benefits and expenses increased during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 largely due to higher sales commissions and other operating expenses in our Investment and Savings Products segment. Also contributing to the year-over-year increase are higher amortization of DAC, benefits and claims, and insurance expenses in our Term Life Insurance segment. These increases were partially offset by lower insurance commissions and higher future policy benefits remeasurement gain in our Term Life Insurance segment. These movements are discussed in further detail in the Segment Results section below.

Current wording

Total benefits and expenses. Total benefits and expenses increased during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 largely due to higher sales commissions in our Investment and Savings Products segment. Also contributing to the year-over-year increase were higher benefits and claims and amortization of DAC in our Term Life Insurance segment. Insurance and other operating expenses increased in the 2025 period compared to the 2024 period primarily due to an increase in employee-related costs and higher growth-related costs. Further discussion related to benefits and expenses movements are discussed in detail in the Segment Results section below.

Previous wording

Income taxes. The effective income tax rate of 23.8% for the six months ended June 30, 2025 was largely consistent with the comparable effective income tax rate from continuing operations of 23.3% for the six months ended June 30, 2024. The 2024 period effective tax rate included the same largely offsetting items as described in the three month comparison.

Current wording

Income taxes. The effective income tax rate of 23.9% for the three months ended September 30, 2025 was largely consistent with the comparable effective income tax rate from continuing operations of 23.5% for the three months ended September 30, 2024.

Previous wording

Income taxes. The effective income tax rate of 23.9% for the three months ended June 30, 2025 was largely consistent with the comparable effective income tax rate from continuing operations of 23.3% for the three months ended June 30, 2024. The effective tax rate in the 2024 period included two largely offsetting, non-recurring items. More specifically, we recognized a valuation allowance against e-TeleQuote state operating losses that was required to be presented in income tax expense from continuing operations, the impact of which was largely offset by the non-taxable $50.0 million gain noted above.

Current wording

Income taxes. The effective income tax rate of 23.8% for the nine months ended September 30, 2025 was largely consistent with the comparable effective income tax rate from continuing operations of 23.3% for the nine months ended September 30, 2024. The effective tax rate in the 2024 period included two largely offsetting, non-recurring items. More specifically, we recognized a valuation allowance against e-TeleQuote state operating losses that was required to be presented in income tax expense from continuing operations, the impact of which was largely offset by the non-taxable $50.0 million gain noted above.

Previous wording

Net premiums. Direct premiums increased during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 largely due to the layering effect of new policy sales that contributed to growth in the in-force book of business. This increase was partially offset by a slight increase in ceded premiums, which includes $9.9 million in higher non-level YRT reinsurance ceded premiums as business not subject to the IPO coinsurance transactions ages, and was reduced by $3.9 million in lower coinsurance ceded premiums due to the run-off of business subject to the IPO coinsurance transactions.

Current wording

Net premiums. Direct premiums increased during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 largely due to the layering effect of new policy sales that contributed to growth in the in-force book of business. This increase was partially offset by a slight increase in ceded premiums, which includes $2.1 million in higher non-level YRT reinsurance ceded premiums as business not subject to the IPO coinsurance transactions ages, and was reduced by $0.7 million in lower coinsurance ceded premiums due to the run-off of business subject to the IPO coinsurance transactions.

Previous wording

Net premiums. Direct premiums increased during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 largely due to the layering effect of new policy sales that contributed to growth in the in-force book of business. This increase was partially offset by a slight increase in ceded premiums, which includes $16.6 million in higher non-level YRT reinsurance ceded premiums as business not subject to the IPO coinsurance transactions ages, and was reduced by $9.8 million in lower coinsurance ceded premiums due to the run-off of business subject to the IPO coinsurance transactions.

Current wording

Net premiums. Direct premiums increased during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 largely due to the layering effect of new policy sales that contributed to growth in the in-force book of business. This increase was partially offset by a slight increase in ceded premiums, which includes $18.6 million in higher non-level YRT reinsurance ceded premiums as business not subject to the IPO coinsurance transactions ages, and was reduced by $10.5 million in lower coinsurance ceded premiums due to the run-off of business subject to the IPO coinsurance transactions.

Previous wording

Benefits and claims. Benefits and claims increased during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 due to the same factors as described in the three month comparison.

Current wording

Benefits and claims. Benefits and claims increased during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 due to the same factors as described in the three month comparison.

Previous wording

Future policy benefits remeasurement (gain) loss. Future policy benefits remeasurement gain increased during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 and represents differences in experience variances that occurred in each period, primarily from better mortality and lower reserves benefiting from elevated lapse experience versus our future policy benefit reserve assumptions. The remeasurement gain recognized in each period was not a significant portion of the total benefits and claims recognized in each period. Refer to Note 11 (Future Policy Benefits) to our unaudited condensed consolidated financial statements included elsewhere in this report for further details.

Current wording

Future policy benefits remeasurement (gain) loss. Future policy benefits remeasurement gain slightly decreased during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 due to differences in assumption changes and experience variances recognized during each period. Refer to Note 11 (Future Policy Benefits) to our unaudited condensed consolidated financial statements included elsewhere in this report for further details.

Previous wording

Amortization of DAC. Amortization of DAC increased during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 due to the same factors as described in the three month comparison.

Current wording

Amortization of DAC. Amortization of DAC increased during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 due to the same factors as described in the three month comparison.

Previous wording

Insurance commissions. Insurance commissions decreased during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 due to the same factors as described in the three month comparison as well as a small change in the dollar value of commissions deferred that was made beginning in the second quarter of 2024.

Current wording

Insurance commissions. Insurance commissions decreased during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 as a result of lower non-deferrable commissions as well as a small change in the dollar value of commissions deferred that was made beginning in the second quarter of 2024.

Previous wording

Commissions and fees. Commissions and fees increased during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily driven by higher asset-based and sales-based revenues. Higher asset-based revenues were driven by an increase in average client assets in the 2025 period compared to the same period in 2024 as well as a higher mix of assets under management that earn higher asset-based commissions, namely managed investments and Canadian mutual funds sold under the principal distributor model. The increase in sales-based revenue was largely the result of continued growth in product sales for variable annuities.

Current wording

Commissions and fees. Commissions and fees increased during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily driven by higher asset-based and sales-based revenues. Higher asset-based revenues were driven by an increase in average client assets in the 2025 period compared to the same period in 2024 as well as a higher mix of assets under management that earn higher asset-based commissions, namely managed investments and Canadian mutual funds sold under the principal distributor model. The increase in sales-based revenue was largely the result of continued growth in product sales for variable annuities and U.S. retail mutual funds.

Previous wording

Commissions and fees. Commissions and fees increased during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 due to the same factors as described in the three month comparison.

Current wording

Commissions and fees. Commissions and fees increased during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 due to the same factors as described in the three month comparison.

Previous wording

Sales commissions. Sales commissions increased during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 due to the same factors as described in the three month comparison.

Current wording

Sales commissions. Sales commissions increased during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 due to the same factors as described in the three month comparison.

Previous wording

Other operating expenses. Other operating expenses for the six months ended June 30, 2025 increased compared to the six months ended June 30, 2024 due to the same factors as described in the three month comparison.

Current wording

Other operating expenses. Other operating expenses for the nine months ended September 30, 2025 increased compared to the nine months ended September 30, 2024 due to the same factors as described in the three month comparison.

Previous wording

Total revenues. Total revenues decreased during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 in part due to $2.0 million of investment losses in the 2025 period related to the tender of bonds from a certain issuer that allowed us to reinvest the proceeds at current market interest rates rather than accept replacement bonds from the issuer at less favorable terms. Also contributing to the decrease was a $50.0 million gain recognized in the prior year period within Other, net revenue related to payments received under a Representation and Warranty insurance policy as discussed further in Note 4 (Segment Information) to our unaudited condensed consolidated financial statements included elsewhere in this report. The decrease was partially offset by higher net investment income. Net investment income increased primarily due to continued growth of the invested asset portfolio. Investment income net of investment expenses includes interest earned on our held-to-maturity asset, which is offset by interest expense on the surplus note (“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”). For more information on the Surplus Note, see Note 12 (Debt) to our consolidated financial statements in our 2024 Annual Report and Note 5 (Investments) to our unaudited condensed consolidated financial statements included elsewhere in this report.

Current wording

Total revenues. Total revenues were largely consistent during the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Net investment income increased primarily due to continued growth of the invested asset portfolio. Investment income net of investment expenses includes interest earned on our held-to-maturity asset, which is offset by interest expense on the surplus note (“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”). For more information on the Surplus Note, see Note 12 (Debt) to our consolidated financial statements in our 2024 Annual Report and Note 5 (Investments) to our unaudited condensed consolidated financial statements included elsewhere in this report.

Previous wording

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 note payable, general operating expenses, and income taxes, as well as repurchases of shares of our common stock outstanding. As of June 30, 2025, the Parent Company had cash and invested assets of $371.0 million.

Current wording

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 note payable, general operating expenses, and income taxes, as well as repurchases of shares of our common stock outstanding. As of September 30, 2025, the Parent Company had cash and invested assets of $370.2 million.

Previous wording

Operating Activities. Cash flows provided by operating activities decreased during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to timing differences for the settlement of financial instruments recorded as cash equivalents and maturities of trading securities in the 2024 period, partially offset by higher cash inflows from Term Life Insurance segment net premiums and Investment and Savings Products segment income in the 2025 period.

Current wording

Operating Activities. Cash flows provided by operating activities decreased during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 largely due to the timing of purchases, maturities, and sales of financial instruments classified as trading securities, which are classified as cash flows from operating activities. Cash flows from receipts and payments of other items that were attributable to operating activities were primarily influenced by timing differences that largely offset in the aggregate when comparing the 2025 period to the 2024 period.

Previous wording

Investing Activities. Cash flows used in investing activities increased during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to the impact of the $50.0 million received under a Representation and Warranty insurance policy in the 2024 period, partially offset by fluctuations in the timing of maturities and reinvestments of debt securities held in our available-for-sale investment portfolio.

Current wording

Investing Activities. Cash flows used in investing activities decreased during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to fluctuations in the timing of maturities, sales and reinvestments of debt securities held in our available-for-sale investment portfolio, partially offset by the impact of the $50.0 million received under a Representation and Warranty insurance policy in the 2024 period. In addition, $18.6 million of cash was included in the disposal of the Senior Health business in the 2024 period.

Previous wording

Financing Activities. Cash flows used in financing activities increased during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to higher per share stockholder dividend payments.

Current wording

Financing Activities. Cash flows used in financing activities increased during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to higher per share stockholder dividend payments.

Previous wording

Redundant Reserve Financing. 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.

Current wording

Redundant Reserve Financing. 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

Previous wording

Note Payable. The Company has $600.0 million of publicly-traded Senior Notes outstanding issued at a price of 99.55% with an annual interest rate of 2.80%, payable semi-annually in arrears on May 19 and November 19. The Senior Notes are scheduled to mature on November 19, 2031. We were in compliance with the covenants of the Senior Notes as of June 30, 2025. No events of default occurred during the three and six months ended June 30, 2025.

Current wording

Note Payable. The Company has $600.0 million of publicly-traded Senior Notes outstanding issued at a price of 99.55% with an annual interest rate of 2.80%, payable semi-annually in arrears on May 19 and November 19. The Senior Notes are scheduled to mature on November 19, 2031. We were in compliance with the covenants of the Senior Notes as of September 30, 2025. No events of default occurred during the three and nine months ended September 30, 2025.

Previous wording

Credit Facility Agreement. We maintain an unsecured $200.0 million Revolving Credit Facility with a syndicate of commercial banks that has a scheduled termination date of June 22, 2026. Amounts outstanding under the Revolving Credit Facility bear interest at a periodic rate equal to the Secured Overnight Financing Rate (“SOFR”) rate loan or the base rate, plus in either case an applicable margin. The Revolving Credit Facility contains language that allows for the Company and the lenders to agree on a comparable or successor reference rate in the event SOFR is no longer available. 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 SOFR rate loans and letters of credit ranging from 1.000% to 1.625% per annum and for base rate loans ranging from 0.000% 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 0.100% to 0.225% per annum of the aggregate $200.0 million commitment of the lenders under the Revolving Credit Facility. As of June 30, 2025, no amounts were outstanding under the Revolving Credit Facility and we were in compliance with its covenants. Furthermore, no events of default occurred under the Revolving Credit Facility during the three and six months ended June 30, 2025.

Current wording

Credit Facility Agreement. We maintain an unsecured $200.0 million Revolving Credit Facility with a syndicate of commercial banks that has a scheduled termination date of June 22, 2026. Amounts outstanding under the Revolving Credit Facility bear interest at a periodic rate equal to the Secured Overnight Financing Rate (“SOFR”) rate loan or the base rate, plus in either case an applicable margin. The Revolving Credit Facility contains language that allows for the Company and the lenders to agree on a comparable or successor reference rate in the event SOFR is no longer available. 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 SOFR rate loans and letters of credit ranging from 1.000% to 1.625% per annum and for base rate loans ranging from 0.000% 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 0.100% to 0.225% per annum of the aggregate $200.0 million commitment of the lenders under the Revolving Credit Facility. As of September 30, 2025,no amounts were outstanding under the Revolving Credit Facility and we were in compliance with its covenants. Furthermore, no events of default occurred under the Revolving Credit Facility during the three and nine months ended September 30, 2025.