The level of Primerica Life's risk-adjusted capitalization, as defined by Best's Capital Adequacy Ratio (BCAR), is sufficient to support its current business and insurance risks. A.M. Best notes that risk-adjusted capitalization had been declining prior to 2015, driven primarily by significant dividends to the holding company. However, risk-adjusted capitalization has stabilized over the past two years. Going forward, A.M. Best expects risk-adjusted capitalization ratios to continue to remain relatively stable. A.M. Best also notes that Primerica Life has relied heavily in recent years on captive reinsurance to fund its Regulation XXX reserves associated with term life insurance, which in turn has benefited the group's risk-adjusted capitalization.Offsetting these positive rating factors are Primerica Life's somewhat narrow business profile and aggressive capital management strategy. As noted above, Primerica Life has relied heavily on captive reinsurance to fund its XXX reserves. As part of its assessment of a life insurance company's balance sheet strength, A.M. Best considers not only the capital adequacy ratios, but also the quality of capital supporting such ratios. A.M. Best believes that the quality of capital for an insurance operating company that has ceded XXX or AXXX reserves to a domestic or offshore captive is not as strong as for an operating company with similar risk-adjusted capital ratios that self-funds these reserves. In addition, while A.M. Best expects Primerica Life to maintain an underlying trend of statutory profitability, statutory capital growth of the insurance operating companies likely will be constrained by continued aggressive dividend payments to Primerica. Additionally, within the insurance business unit there is essentially a monoline product approach with an exclusive focus on term life products. This press release relates to Credit Ratings that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best's Credit Ratings . For information on the proper media use of Best's Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating Action Press Releases . A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.