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Primerica to Repurchase Shares Held by Warburg Pincus

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Primerica Inc., (NYSE: PRI) announced that it has entered into a repurchase agreement with Warburg Pincus Equity X, L.P. and Warburg Pincus X Partners, L.P. (Warburg Pincus).

The Duluth Ga.-based distributor of financial products will repurchase 5,736,137 shares of Primerica common stock owned by the private equity growth investor. The purchase price of $26.15 per share was derived from the closing price of Primerica common stock on April 17, 2012.

At the conclusion of the transaction, Warburg will own 17.9% of Primerica’s outstanding common stock on a primary basis and 23.2% including the warrants to purchase Primerica common stock currently held by Warburg Pincus.

Primerica hopes that the deployment of $150 million of excess capital will be another crucial step in creating shareholder value. The repurchase is the final act in a series of actions that were announced with a recent redundant reserve financing transaction.

“We are pleased to support Primerica in this unique opportunity to deploy the proceeds of its recent excess reserve financing in a shareholder friendly and efficient manner. We continue to view the company as a long-term investment and strongly believe in management’s and the sales force’s ability to continue to generate shareholder value as they build their one-of-a-kind financial services franchise,” said Michael Martin, Managing Director and Head of Warburg Pincus’ financial services group.


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