	December 31,
	2018			2017
	(In thousands)
Assets
Investments:
Fixed-maturity securities available-for-sale, at fair value (amortized cost: $108,623 in 2018 and $42,812 in 2017)	$	109,415		$	44,405
Short-term investments, at fair value (amortized cost: $8,171 in 2018 and $0 in 2017)		8,171			-
Equity securities, at fair value (historical cost: $1,519 in 2018 and $0 in 2017)		1,447			-
Trading securities, at fair value (cost: $0 in 2018 and $1,371 in 2017)		-			1,428
Total investments		119,033			45,833
Cash and cash equivalents		32,745			66,226
Due from affiliates*		2,492			3,272
Other receivables		1,086			438
Income tax receivable		3,490			-
Deferred income taxes		12,151			12,151
Investment in subsidiaries*		1,678,231			1,683,149
Other assets		729			915
Total assets	$	1,849,957		$	1,811,984

Liabilities and Stockholders’ Equity
Liabilities:
Notes payable	$	373,661		$	373,288
Current income tax payable		-			6,628
Deferred income taxes		6,126			4,311
Interest payable		8,214			8,214
Other liabilities		443			442
Commitments and contingent liabilities (see Note E)
Total liabilities		388,444			392,883
Stockholders’ equity:
Common stock ($0.01 par value; authorized 500,000 in 2018 and 2017; issued and outstanding 42,694 shares in 2018 and 44,251 shares in 2017)		427			443
Paid-in capital		-			-
Retained earnings		1,489,520			1,375,090
Accumulated other comprehensive income, net of income tax		(28,434	)		43,568
Total stockholders’ equity		1,461,513			1,419,101
Total liabilities and stockholders’ equity	$	1,849,957		$	1,811,984

	Year ended December 31,
	2018			2017			2016
	(In thousands)
Revenues:
Dividends from subsidiaries*	$	302,932		$	256,913		$	189,582
Net investment income		2,306			1,484			1,695
Realized investment gains (losses), including other-than-temporary impairment losses		(128	)		179			1,088
Total revenues		305,110			258,576			192,365
Expenses:
Interest expense		18,695			18,210			18,180
Other operating expenses		7,478			8,441			12,433
Total expenses		26,173			26,651			30,613
Income before income taxes		278,937			231,925			161,752
Income taxes		(5,578	)		(3,756	)		(7,019	)
Income (loss) before equity in undistributed earnings of subsidiaries		284,515			235,681			168,771
Equity in undistributed earnings of subsidiaries*		39,579			114,574			50,643
Net income	$	324,094		$	350,255		$	219,414

	Year ended December 31,
	2018			2017			2016
	(In thousands)
Net income	$	324,094		$	350,255		$	219,414
Other comprehensive income (loss) before income taxes:
Unrealized investment gains (losses):
Equity in unrealized holding gains (losses) on investment securities held by subsidiaries		(46,382	)		(3,333	)		9,846
Change in unrealized holding gains/(losses) on investment securities		(931	)		356			2,487
Reclassification adjustment for realized investment (gains) losses included in net income		128			(179	)		(1,088	)
Foreign currency translation adjustments:
Equity in unrealized foreign currency translation gains of subsidiaries		(25,059	)		17,383			6,689
Total other comprehensive income (loss) before income taxes		(72,244	)		14,227			17,934
Income tax expense (benefit) related to items of other comprehensive income (loss)		(169	)		257			571
Other comprehensive income (loss), net of income taxes		(72,075	)		13,970			17,363
Total comprehensive income	$	252,019		$	364,225		$	236,777

	Year ended December 31,
	2018			2017			2016
	(In thousands)
Cash flows from operating activities:
Net income	$	324,094		$	350,255		$	219,414
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Equity in undistributed earnings of subsidiaries*⁽¹⁾		(44,095	)		(145,113	)		(89,820	)
Deferred tax provision		(1,983	)		2,454			167
Change in income taxes		(6,151	)		(1,235	)		(523	)
Realized investment (gains) losses, including other-than-temporary impairments		128			(179	)		(1,088	)
Accretion and amortization of investments		103			149			(118	)
Share-based compensation		1,365			1,254			1,227
Change in due to/from affiliates*		780			(4,380	)		(2,671	)
Trading securities sold, matured, or called (acquired), net		-			(1,377	)		(51	)
Change in other operating assets and liabilities, net		(120	)		(1,514	)		555
Net cash provided by (used in) operating activities		274,121			200,314			127,092

Cash flows from investing activities:
Available-for-sale investments sold, matured or called:
Fixed maturity securities — sold		1,603			12,204			29,759
Fixed-maturity securities — matured or called		104,836			56,678			79,914
Equity securities - sold		-			36			-
Equity securities sold		150			-			-
Available-for-sale investments acquired:
Fixed-maturity securities⁽¹⁾		(144,760	)		(23,497	)		(50,408	)
Equity securities		-			(40	)		-
Short-term investments		(8,169	)		-			-
Equity Securities acquired		(265	)		-			-
Net cash provided by (used in) investing activities		(46,605	)		45,381			59,265

Cash flows from financing activities:
Dividends paid		(44,140	)		(35,821	)		(33,367	)
Common stock repurchased		(210,146	)		(150,038	)		(150,057	)
Tax withholdings on share-based compensation		(6,711	)		(6,734	)		(3,970	)
Payment of deferred financing costs		-			(868	)		-
Net cash provided by (used) in financing activities		(260,997	)		(193,461	)		(187,394	)
Change in cash and cash equivalents		(33,481	)		52,234			(1,037	)
Cash and cash equivalents, beginning of period		66,226			13,992			15,029
Cash and cash equivalents, end of period	$	32,745		$	66,226		$	13,992

Supplemental disclosures of cash flow information:
Interest paid	$	18,146		$	17,813		$	17,813

Primerica, Inc. (“we”, “us” or the “Company”) is a holding company with our primary asset being the capital stock of our wholly owned operating subsidiaries, and our primary liability being $375.0 million in principal amount of senior unsecured notes issued in a public offering in 2012 (the “Senior Notes”). Our subsidiaries assist clients in meeting their needs for term life insurance, which our insurance subsidiaries underwrite, and mutual funds, annuities, managed investments and other financial products, which our subsidiaries distribute primarily on behalf of third parties. Our primary subsidiaries include the following entities: Primerica Financial Services, LLC, a general agency and marketing company; Primerica Life Insurance Company ("Primerica Life"), our principal life insurance company; PFS Investments Inc., an investment products company and broker-dealer; and Primerica Financial Services (Canada) Ltd., a holding company for our Canadian operations, which includes Primerica Life Insurance Company of Canada and PFSL Investments Canada Ltd. Primerica Life, domiciled in Tennessee, owns National Benefit Life Insurance Company, a New York insurance company. In addition, we established Peach Re, Inc. ("Peach Re") and Vidalia Re, Inc. (“Vidalia Re”) as special purpose financial captive insurance companies domiciled in Vermont and wholly owned subsidiaries of Primerica Life.

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

The most significant item that involves a greater degree of accounting estimates subject to change in the future is the determination of our investments in subsidiaries. Estimates for this and other items are subject to change and are reassessed by management in accordance with U.S. GAAP. Actual results could differ from those estimates.

The accompanying condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto of Primerica, Inc. and subsidiaries included in Part II, Item 8 of this report.

In July 2012, we issued the Senior Notes in a public offering at a price of 99.843% of the principal amount with an annual interest rate of 4.75%, payable semi-annually in arrears on January 15 and July 15. The Senior Notes mature on July 15, 2022.

As unsecured senior obligations, the Senior Notes rank equally in right of payment with all existing and future unsubordinated indebtedness and senior to all existing and future subordinated indebtedness of the Company. The Senior Notes are structurally subordinated in right of payment to all existing and future liabilities of our subsidiaries. In addition, the Senior Notes contain covenants that restrict our ability to, among other things, create or incur any indebtedness that is secured by a lien on the capital stock of certain of our subsidiaries, and merge, consolidate or sell all or substantially all of our properties and assets.

We were in compliance with the covenants of the Senior Notes at December 31, 2018. No events of default occurred on the Senior Notes during the year ended December 31, 2018.

We maintain an unsecured $200.0 million revolving credit facility ("Revolving Credit Facility") with a syndicate of commercial banks that has a scheduled termination date of December 19, 2022. Amounts outstanding under the Revolving Credit Facility bear interest at a periodic rate equal to LIBOR or the base rate, plus in either case an applicable margin. The Revolving Credit Facility also permits the issuance of letters of credit. The applicable margins are based on our debt rating with such margins for LIBOR rate loans and letters of credit ranging from 1.125% to 1.625% per annum and for base rate loans ranging from 0.125% to 0.625% per annum. Under the Revolving Credit Facility, we incur a commitment fee that is payable quarterly in arrears and is determined by our debt rating. This commitment fee ranges from 0.125% to 0.225% per annum of the aggregate $200.0 million commitment of the lenders under the Revolving Credit Facility. As of December 31, 2018, no amounts have been drawn under the Revolving Credit Facility and we were in compliance with its covenants. Furthermore, no events of default have occurred under the Revolving Credit Facility during the year ended December 31, 2018.

For the years ended December 31, 2018, 2017, and 2016, the Company received dividends from our non-life insurance subsidiaries of approximately $80.1 million, $96.0 million, and $72.5 million, respectively. For the years ended December 31, 2018, 2017, and 2016, the Company received dividends from our life insurance subsidiaries of approximately $222.8 million, $160.9 million, and $117.0 million, respectively.

Peach Re and Vidalia Re have each entered into separate coinsurance agreements with Primerica Life whereby Primerica Life has ceded certain level-premium term life insurance policies to Peach Re and Vidalia Re. In conjunction with these coinsurance agreements, we have capital maintenance agreements with both Peach Re and Vidalia Re. Each capital maintenance agreement may require us at times to make capital contributions to Peach Re and Vidalia Re to ensure that their regulatory accounts, as defined in the coinsurance agreements with Primerica Life, will not be less than $20.0 million for each financial captive insurance company. For Peach Re, the regulatory account will only be used to satisfy obligations under its coinsurance agreement after all other available assets have been used, including a letter of credit issued by Deutsche Bank for the benefit of Primerica Life. For Vidalia Re, the regulatory account will only be used to satisfy obligations under its coinsurance agreement after all other available assets have been used, including its held-to-maturity security ultimately guaranteed by Hannover Life Reassurance Company of America.

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