Company: PRI
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-029882
Chunk: 166

Company: Primerica, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 166
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. Treasury curves, benchmarking of similar securities including new issues, sector groupings, quotes from market participants and matrix pricing. Observable information is compiled and integrates relevant credit information, perceived market movements and sector news. Additionally, security prices are periodically back-tested to validate and/or refine models as conditions warrant. Market indicators and industry and economic events are also monitored as triggers to obtain additional data. For certain structured securities (such as mortgage- and asset-backed securities) with limited trading activity, third-party pricing services generally use industry-standard pricing methodologies that incorporate market information, such as index prices or discounting expected future cash flows based on underlying collateral, and quotes from market participants, to estimate fair value. If one or more of these input measures are not deemed observable for a particular security, the security will be classified as Level 3 in the fair value hierarchy.Where specific market information is unavailable for certain securities, pricing models produce estimates of fair value primarily using Level 2 inputs along with certain Level 3 inputs. These models include matrix pricing. The pricing matrix uses current U.S. Treasury rates and credit spreads received from third-party sources to estimate fair value. The credit spreads incorporate the issuer’s industry- or issuer-specific credit characteristics and the security’s time to maturity, if warranted. Remaining unpriced securities are valued using an estimate of fair value based on indicative market prices that include significant unobservable inputs not based on, nor corroborated by, market information, including the utilization of non-binding broker quotes.The roll-forward of the Level 3 assets measured at fair value on a recurring basis was as follows: 

        Year ended December 31,

        2024

        2023

        (In thousands)

        Level 3 assets, beginning of period
         
        $
        2,144

        $
        1,710

        Net unrealized gains (losses) included in other    comprehensive income (loss)

        4

        -

        Investment gains (losses) and accretion (amortization)    recognized in earnings

        (101
        )

        (66
        )

        Purchases

        -

        500

        Transfers out of Level 3

        (504
        )

        -

        Level 3 assets, end of period
         
        $
        1,543

        $
        2,144

       We obtain independent pricing quotes based on observable inputs as of the end of the reporting period for all securities in Level 2.