Primerica
| Company type | Public |
|---|---|
| Industry | Financial services, Insurance, Investment |
| Founded | 1981 |
| Headquarters | Duluth, Georgia , United States |
Area served | United States, Canada |
Key people | D. Richard Williams (Chairman), Glenn J. Williams (CEO), Peter W. Schneider (President), Tracy Tan (CFO) |
| Products | Insurance policies, investment funds, credit monitoring services, debt management solutions |
| Revenue | US$2.71 billion (2021) |
| US$511.12 million (2021) | |
| US$373.36 million (2021) | |
| Total assets | US$16.12 billion (2021) |
| Total equity | US$2.08 billion (2021) |
Number of employees | 3,449 (2021) |
| Website | www |
Primerica, Inc. is a multi-level marketing enterprise that delivers insurance, investment, and financial services primarily to middle-income households across the United States and Canada. Its operations are conducted through various subsidiaries, including National Benefit Life Insurance Company, Primerica Life, Peach Re, and Vidalia Re. In July 2021, Primerica expanded its footprint by acquiring e-Telequote.
Established in 1981, Primerica went public with its initial public offering in 2010. The company's headquarters are located in Duluth, Georgia. For the year 2021, it reported revenues totaling US$2.71 billion, with operating income reaching US$511.12 million and net income amounting to US$373.36 million. Its total assets were valued at US$16.12 billion, alongside equity of US$2.08 billion. The workforce consisted of 2,891 full-time employees and 558 part-time workers during the same period.
Leadership includes Chairman D. Richard Williams, Chief Executive Officer Glenn J. Williams, President Peter W. Schneider, and Chief Financial Officer Tracy Tan. Primerica concentrates on offering financial products such as insurance policies, investment funds, credit monitoring services, and debt management solutions tailored specifically for middle-income clients through its network marketing approach.
History
In 1980, A.L. Williams (founded in 1977) formed a partnership with Massachusetts Indemnity and Life Insurance Company (MILICO), a Boston-based underwriter and subsidiary of PennCorp Financial Services from Santa Monica. The following year, First American National Corporation was created as a holding entity for First American Life Insurance and First American National Securities; these entities were subsequently renamed A.L. Williams Corporation, A.L. Williams Life Insurance Company, and PFS Investments, Inc. The A.L. Williams Corporation began trading on the over-the-counter market in 1982 under the ticker ALWC before transitioning to NASDAQ in 1983.
In 1983, PennCorp merged with American Can Company, making MILICO its subsidiary as well. By 1987, American Can rebranded itself as Primerica Corporation with Gerald Tsai appointed CEO—the first Chinese American to lead a company listed on the Dow Jones Industrial Average.
Sanford Weill's Commercial Credit purchased Primerica Corporation in December 1988 for $1.54 billion but retained the Primerica brand name. On February 6, 1989, Primerica commenced trading on the New York Stock Exchange.
Throughout the following decade, related firms such as A.L. Williams, MILICO, and FANS were rebranded under the Primerica banner as Primerica Financial Services, Primerica Life Insurance Company, and Primerica Financial Services Investments respectively.
In December 1993, Primerica completed the acquisition of Travelers Insurance Corporation and adopted the name Travelers Inc., which was later changed to Travelers Group in 1994. This group included entities like Primerica Financial Services and Smith Barney among other financial businesses. Joe Plumeri served as chairman and CEO of Primerica Financial Services from 1995 until 1999. In 1998, the company posted net earnings of $398 million on revenue of $1.65 billion.
Starting in December 1997, Primerica began providing pre-paid legal services via Pre-Paid Legal Services, Inc., a subsidiary within Travelers Group. In 1998, PFS Investments Inc., Primerica’s securities division, was fined by the SEC for insufficient oversight concerning "selling away" activities but had complied with all corrective measures by the time of the ruling.
The merger between Travelers Group and Citicorp in 1998 resulted in the formation of Citigroup (NYSE: C), with Primerica functioning as a Citigroup subsidiary until the spin-off of Travelers insurance in 2002.
In 2008, Citigroup attempted to divest Primerica amid interest from life insurance companies and private equity firms; its valuation was approximately $7 billion at that time. Negotiations took place with JC Flowers & Co. LLC and Protective Life Corp but ultimately did not conclude in a transaction.
During the COVID-19 pandemic year of 2020, Primerica paid out $1.7 billion in death benefits—reflecting a 15.8% rise compared to 2019—and closed out 2021 with $900 billion worth of active term life insurance coverage.
Initial public offering
On November 5, 2009, Citi revealed its intention to separate Primerica through an initial public offering. The IPO commenced on April 1, 2010, with shares initially priced at $15 each, generating $320 million in proceeds for Citi.
During this offering, private equity firm Warburg Pincus purchased a 23% ownership interest in Primerica and secured an option to acquire an additional 10% stake from Citi. By December 19, 2011, Citigroup had divested its entire remaining shareholding in Primerica.
In 2015, Forbes included Primerica among "America's 50 Most Trustworthy Financial Companies."
Primerica broadened its business in July 2021 by acquiring e-Telequote, a company specializing in health insurance marketing.
Products and business model
Primerica operates using a multi-level marketing system consisting of eleven hierarchical levels of representatives who earn commissions by selling financial products.[1][2][3][4]
Its primary offerings include term life insurance, complemented by auto and home insurance policies, mutual fund investments, and credit monitoring services.[5][6]
By the year 2010, Primerica's network included over 100,000 representatives, with average annual earnings per individual amounting to $5,156.[1] Nonetheless, some agents experienced financial losses due to the costs linked to the multi-level marketing framework.[4]
In 2012, legal actions were initiated against Primerica alleging that its agents encouraged Florida public employees to exchange secure government retirement investments for high-risk products offered by the company. By 2014, Primerica agreed to a settlement totaling $15.4 million involving up to 238 claimants.[7]
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