 | |
| Formerly | American Can Company |
|---|---|
| Company type | Public |
| Industry | |
| Founded | February 10, 1977; 48 years ago (1977-02-10) |
| Headquarters | Duluth, Georgia, US |
Key people |
|
| Products | |
| 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 |
|
| Website | primerica |
| Footnotes / references [2][3][4] | |
Primerica, Inc. is amulti-level marketing[5][6][7][8] company that providesinsurance,investment andfinancial services to middle-income families in the United States and Canada.[9][10][11]
Primerica is the parent company of National Benefit Life Insurance Company, Primerica Life, Peach Re, and Vidalia Re.[9][12] Primerica acquired e-Telequote in July 2021.[13][14] The company that would become Primerica was founded in 1981. Primerica had itsinitial public offering in 2010.[15][16]
Primerica's headquarters are located inDuluth, Georgia.[17]
In 1980, A.L. Williams (founded in 1977)[18] entered into a contract withBoston-based Massachusetts Indemnity and Life Insurance Company (MILICO), anunderwriter of life insurance and a subsidiary ofSanta Monica–based PennCorp Financial Services. In 1981, the company established First American National Corporation as a holding company for First American Life Insurance and First American National Securities. These companies were later renamed to the A.L. Williams Corporation, A.L. Williams Life Insurance Company, and PFS Investments, Inc, respectively. In 1982, the A.L. Williams Corporation was listed on theover-the-counter market under the symbol ALWC. In 1983, the company became listed on theNASDAQ exchange under the same symbol.
PennCorp finalized a merger agreement withAmerican Can Company in 1983, and became its subsidiary along with MILICO. In 1986 Triangle Industries bought American Can's packaging division and the rights to the company's name. In 1987 American Can changed its name to Primerica Corporation,[19] withGerald Tsai as CEO, the first Chinese American to lead a member of the Dow Jones Industrials.[20][21]
In December 1988,Sanford Weill's Commercial Credit acquired Primerica Corporation for $1.54 billion, retaining the Primerica name.[22][23] On February 6, 1989, Primerica Corporation began trading on theNew York Stock Exchange.[24]
Throughout the next ten years, Primerica Corporation's affiliated companies A.L Williams, MILICO, and FANS changed their names to Primerica Financial Services, Primerica Life Insurance Company, and Primerica Financial Services Investments, respectively.[25]
In December 1993, Primerica fully acquired Travelers Insurance Corporation and adopted the name Travelers Inc., which was changed toTravelers Group the following year. Travelers Group included Primerica Financial Services,Smith Barney, and other financial businesses.Joe Plumeri was chairman and CEO of Primerica Financial Services from 1995 to 1999.[26][27][28] In 1998, Primerica had net income of $398 million on net sales of $1.65 billion.[29]
In December 1997, Primerica announced it was going to begin offeringpre-paid legal services throughPre-Paid Legal Services, Inc., at the time asubsidiary ofTravelers Group, Inc.[30] In 1998, theUS Securities and Exchange Commission (SEC) censured and fined PFS Investments Inc., the securities arm for Primerica, for failure to properly supervise a group of registered representatives inDearborn, Michigan. The SEC found that PFS Investments Inc. had failed to have in place effective policies and procedures to follow up adequately on three complaints received about the Dearborn registered representatives, "selling away" activities. By the date of the ruling, PFS Investments reported it had complied with the final recommendations made by the independent consultant.[31]
In 1998, Travelers Group and Citicorp merged creatingCitigroup (NYSE: C). Primerica and its affiliates continued to operate as subsidiaries of Citigroup, although the Travelers insurance business was spun off in 2002.[32]
Citigroup attempted to sell Primerica in 2008,[33] having received several bids from life insurance companies andprivate equity firms interested in buying.[34][35] At the time the market value of the company was estimated to be $7 billion.[36]JC Flowers & Co. LLC andProtective Life Corp began to purchase the company but the deal was canceled for undisclosed reasons.[37]
During theCOVID-19 pandemic, in 2020, Primerica paid out $1.7 billion in death claims. This was a 15.8% increase over 2019.[38] The financial services company ended 2021 with $900 billion in activeterm life insurance.[39]
On November 5, 2009, Citi announced that it intended tospin off Primerica through aninitial public offering.[40] The first trading occurred on April 1, 2010, priced at $15 a share the day before trading.[15][16] Citi raised $320 million through the IPO.[41][42][43][better source needed]
In a separate offering, private equity firmWarburg Pincus bought a 23-percent stake in Primerica, and had the option to purchase an additional 10-percent stake from Citi.[44] On December 19, 2011, Citigroup sold its remaining equity stake in Primerica.[45]
Primerica was listed byForbes as one of "America's 50 Most Trustworthy Financial Companies" in 2015.[46]
In July 2021, Primerica acquired e-Telequote, a health insurance marketer.[13][14]
Primerica uses amulti-level marketing strategy, with eleven tiers of representatives and recruiters selling financial products and services for commission.[5][6][7][8]
The company primarily sellsterm life insurance,[2] as well as other financial services including auto and home insurance,mutual funds, andcredit monitoring.[47][9]
In 2010, Primerica was reported to have over 100,000 representatives selling the company's financial products, with individual earnings averaging $5,156 per year.[5] Some people working for Primerica and similar multi-level marketing organizations reported that they ended up losing money, due to the fees they had to pay.[8]
In 2012, Primerica was the target of multiple lawsuits alleging that the company's representatives sought to profit by earning commissions after convincing Florida firefighters, teachers, and other public workers to divest from safe government-secured retirement investments to high-risk retirement products offered by Primerica. In January 2014, the company announced that it was working on a settlement with up to 238 plaintiffs, for $15.4 million.[48]
Primerica suggests three modifications to the RPBOR, to better assure that the regulatory language actually achieves the clear intent of the Revised Notice that the Rule exclude multi-level marketing opportunities like those offered by Primerica and by many members of the Direct Selling Association...This will exclude most or all multi-level marketing companies, since most of them (like Primerica) prohibit upline agents from imposing fees on their downlines
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