Primerica

{{short description|American multi-level marketing insurance company}}

{{Infobox company

| name = Primerica, Inc.

| logo = Primerica logo.svg

| former_name = American Can Company

| type = Public

| traded_as = {{unbulleted list|{{NYSE|PRI}}|S&P 400 Component}}

| industry = {{unbulleted list|Financial services|Multi-level marketing}}

| foundation = {{start date and age|1977|02|10}}

| location = Duluth, Georgia, US

| key_people = {{unbulleted list

| D. Richard Williams | (chairman of the board)

| Glenn J. Williams | (CEO)

| Peter W. Schneider | (president)

| Tracy Tan | (CFO){{cite news |last1=Schilling |first1=Erin |title=Successor named for longstanding Primerica CFO |url=https://www.bizjournals.com/atlanta/news/2023/09/15/primerica-tracy-tan-cfo.html |access-date=24 January 2025 |publisher=Atlanta Business Chronicle |date=15 September 2023}} }}

| products = {{unbulleted list| Insurance | Investment funds | Credit monitoring | Debt management plans }}

| revenue = {{nowrap|{{increase}} US$ 2.71 billion (2021)}}

| operating_income = {{nowrap|{{increase}} US$ 511.12 million (2021)}}

| net_income = {{nowrap|{{increase}} US$ 373.36 million (2021)}}

| assets = {{nowrap|{{increase}} US$ 16.12 billion (2021)}}

| equity = {{nowrap|{{increase}} US$ 2.08 billion (2021)}}

| num_employees = {{unbulleted list| 2,891 (full-time; 2021) | 558 (on-call & part-time; 2021)}}

| homepage = {{official URL}}

| footnotes = "[http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NDk2Njd8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1 Company Overview]"{{cite web|url=https://www.sec.gov/Archives/edgar/data/1475922/000156459018003151/pri-10k_20171231.htm|title=US SEC: Form 10-K Primerica, Inc.|publisher=US Securities and Exchange Commission|access-date=March 1, 2018}}{{Cite web|url=https://d18rn0p25nwr6d.cloudfront.net/CIK-0001475922/b1722537-3e9b-4625-ba8f-2d3e2a020703.pdf|title=FORM 10-K Primerica Inc.}}

}}

File:Primerica HQ Building.jpg

Primerica, Inc. is a multi-level marketing{{cite news|last1=Veneziani|first1=Vince|date=April 1, 2010|title=Meet Primerica, The New Wall Street IPO That's Really A Multi-Level Marketing Scheme|publisher=Business Insider|url=http://www.businessinsider.com/citigroup-primerica-ipo-2010-4}}{{cite web|last1=Chittum|first1=Ryan|date=March 9, 2012|title=200 Years of Citi: An alternate history|url=https://archives.cjr.org/the_audit/an_alternate_history_of_citigr.php|access-date=November 7, 2018|publisher=Columbia Journalism Review|archive-date=January 24, 2023|archive-url=https://web.archive.org/web/20230124050710/https://archives.cjr.org/the_audit/an_alternate_history_of_citigr.php|url-status=dead}}{{cite news|last1=Celarier|first1=Michelle|date=May 9, 2016|title=Herbalife's Endgame|publisher=Slate|url=http://www.slate.com/articles/business/moneybox/2016/05/the_government_is_finally_closing_in_on_herbalife_herbalife_will_fight_back.html|access-date=September 24, 2017}}{{Cite web |date=2020-05-29 |title=MLMs Are Using Coronavirus Anxiety To Exploit The Quarantined And Unemployed |url=https://www.huffpost.com/entry/mlms-capitalizing-on-coronavirus-anxiety_n_5ecad83ac5b63a8c2095c800 |access-date=2024-05-12 |website=HuffPost |language=en}} company that provides insurance, investment and financial services to middle-income families in the United States and Canada.{{Cite web|title=SEC 10-K 2014|url=https://www.sec.gov/Archives/edgar/data/1475922/000156459015001024/pri-10k_20141231.htm}}{{cite web|author1=Primerica Financial Services, Inc|date=May 27, 2008|title=Project No. R511993. Comment of Primerica Financial Services, Inc. on the revised notice of proposed rulemaking on the Business Opportunity Rule R511993|url=https://www.ftc.gov/sites/default/files/documents/public_comments/business-opportunity-rule-535221-00056/535221-00056.pdf|access-date=January 18, 2016|publisher=Federal Trade Commission|pages=3–4, 12|quote=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}}{{Cite web|last=Licensing|first=Dow Jones Reprints &|title=WSJ {{!}} COVID-19 Expands Life Insurance Purchases Beyond Wealthy|url=https://webreprints.djreprints.com/58282.html|access-date=2021-08-16|website=Dow Jones Reprints & Licensing|language=en}}

Primerica is the parent company of National Benefit Life Insurance Company, Primerica Life, Peach Re, and Vidalia Re.{{Cite web|date=5 November 2017|title=Primerica the Beautiful: Business observes 20 years|url=https://www.valdostadailytimes.com/news/local_news/primerica-the-beautiful-business-observes-20-years/article_10a0da07-b825-551f-8983-e38fd018944f.html}} Primerica acquired e-Telequote in July 2021.{{Cite web|last=Bellini|first=Martina|title=Primerica's $600 Million Acquisition of e-TeleQuote|date=April 22, 2021 |url=https://www.globallegalchronicle.com/primericas-600-million-acquisition-of-e-telequote/|access-date=2021-10-25|language=en-US}}{{Cite web|last=Bell|first=Allison|title=Primerica Agrees to Acquire Etelequote: Deals|url=https://www.thinkadvisor.com/2021/04/20/primerica-agrees-to-acquire-etelequote-deals/|access-date=2021-10-25|website=ThinkAdvisor|language=en}} The company that would become Primerica was founded in 1981. Primerica had its initial public offering in 2010.{{Cite web|last=Saporta|first=Maria|title=Primerica celebrates its new independence|url=https://www.bizjournals.com/atlanta/stories/2010/07/12/story1.html}}

Primerica's headquarters are located in Duluth, Georgia.{{Cite news|url=https://www.sctimes.com/story/money/2017/06/06/primerica-opens-4th-st-cloud-area-office/374582001/|title=Primerica opens 4th St. Cloud-area office|work=St. Cloud Times|access-date=2018-09-17|language=en}}

History

In 1980, A.L. Williams (founded in 1977){{Cite web|title='CRUSADE' FOR TERM INSURANCE|url=https://www.sun-sentinel.com/news/fl-xpm-1986-03-21-8601170673-story.html|access-date=2022-02-10|website=Sun Sentinel|date=March 21, 1986 |language=en}} entered into a contract with Boston-based Massachusetts Indemnity and Life Insurance Company (MILICO), an underwriter of life insurance and a subsidiary of Santa 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 the over-the-counter market under the symbol ALWC. In 1983, the company became listed on the NASDAQ exchange under the same symbol.

PennCorp finalized a merger agreement with American 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,{{cite news|date=1987-03-07|title=American Can Picks a Name|work=The New York Times|url=https://query.nytimes.com/gst/fullpage.html?res=9B0DEFDC153BF934A35750C0A961948260|access-date=2008-01-26}} with Gerald Tsai as CEO, the first Chinese American to lead a member of the Dow Jones Industrials.{{Cite web|last=Richardson|first=Robert|date=21 March 2021|title=Progress Health: Primerica Regional VP offers tips to stay financially fit in 2021|url=https://www.marshallnewsmessenger.com/news/progress-health-primerica-regional-vp-offers-tips-to-stay-financially-fit-in-2021/article_169ce6ca-81ff-11eb-bcb8-b73d6dd326d1.html}}{{Cite web|date=2008-07-11|title=Pioneering fund manager Gerald Tsai is dead|url=https://www.investmentnews.com/pioneering-fund-manager-gerald-tsai-is-dead-16355|access-date=2021-08-16|website=InvestmentNews|language=en-US}}

In December 1988, Sanford Weill's Commercial Credit acquired Primerica Corporation for $1.54 billion, retaining the Primerica name.{{Cite web|date=1988-08-30|title=Commercial Credit Agrees to Purchase Primerica for $1.7 Billion in Cash, Stock|url=https://www.latimes.com/archives/la-xpm-1988-08-30-fi-1328-story.html|access-date=2021-03-04|website=Los Angeles Times|language=en-US}}{{Cite news|last=Vise|first=David A.|date=1988-08-30|title=Commercial Credit Group to buy Primerica Corp.|language=en-US|newspaper=Washington Post|url=https://www.washingtonpost.com/archive/business/1988/08/30/commercial-credit-group-to-buy-primerica-corp/6c9a936a-46d0-49ea-ae0d-fae104b8ad12/|access-date=2021-03-04|issn=0190-8286}} On February 6, 1989, Primerica Corporation began trading on the New York Stock Exchange.{{Cite web|last=SEC|title=Travelers Inc 1994 annual report 10-K|url=https://sec.report/Document/0000950112-95-000845/|access-date=2021-03-04|website=SEC.report|language=en}}

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.{{Cite book|url=https://books.google.com/books?id=9PcdAQAAMAAJ&q=milico+changes+name+to+primerica+financial+services|title=Forbes|date=1991|publisher=Forbes Incorporated|language=en}}

In December 1993, Primerica fully acquired Travelers Insurance Corporation and adopted the name Travelers Inc., which was changed to Travelers 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.{{cite news|date=October 2, 2000|title=Plumeri next Willis CEO; Former Citigroup executive to succeed Reeve|publisher=Business Insurance|url=http://www.highbeam.com/doc/1G1-65799679.html|url-status=dead|access-date=July 15, 2010|archive-url=https://archive.today/20120910043739/http://www.highbeam.com/doc/1G1-65799679.html|archive-date=September 10, 2012}}{{cite web|date=January 15, 2001|title=Willis chief discusses changes in financial services.(Willis Group Ltd. CEO Joseph J. Plumeri)(Interview)|url=http://www.highbeam.com/doc/1G1-69409673.html|access-date=July 15, 2010|publisher=Business Insurance}}{{dead link|date=February 2019|bot=medic}}{{cbignore|bot=medic}}{{cite news|title=Joseph J. Plumeri Profile|work=Forbes|url=https://people.forbes.com/profile/joseph-j-plumeri/86637|url-status=dead|access-date=July 15, 2010|archive-url=https://web.archive.org/web/20101031124616/http://people.forbes.com/profile/joseph-j-plumeri/86637|archive-date=October 31, 2010}} In 1998, Primerica had net income of $398 million on net sales of $1.65 billion.{{cite news|last=Nash|first=Jeff|date=April 19, 1999|title=The Chief Preacher: Joe Plumeri – Citibank Finds Sales Religion|work=Investment News|url=http://www.investmentnews.com/article/19990419/SUB/904190722|access-date=July 16, 2010|archive-date=May 11, 2013|archive-url=https://web.archive.org/web/20130511082415/http://www.investmentnews.com/article/19990419/SUB/904190722|url-status=dead}}

In December 1997, Primerica announced it was going to begin offering pre-paid legal services through Pre-Paid Legal Services, Inc., at the time a subsidiary of Travelers Group, Inc.{{cite news|date=1997-12-19|title=Primerica Financial Services to Offer Legal Plans Through Pre-paid Legal Services, Inc|publisher=Business Wire|url=http://findarticles.com/p/articles/mi_m0EIN/is_1997_Dec_19/ai_20086134|access-date=2007-08-20}} In 1998, the US 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 in Dearborn, 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.{{Cite web|url=https://www.sec.gov/litigation/admin/3440269.txt|title=SEC Release No.40269 - July 28, 1998}}

In 1998, Travelers Group and Citicorp merged creating Citigroup ({{nyse2|C}}). Primerica and its affiliates continued to operate as subsidiaries of Citigroup, although the Travelers insurance business was spun off in 2002.{{cite book|last=Williams|first=Art|title=Coach|author2=Karen Kassel Hutto|date=June 2006|publisher=Art Williams Productions|isbn=0-9786266-0-5|location=Atlanta, Georgia|author-link=Arthur L. Williams, Jr.}}

Citigroup attempted to sell Primerica in 2008,{{cite news|last=Fineman|first=Josh|date=2009-01-15|title=Primerica Said to Drop Citigroup References on Cards, Brochures|publisher=Bloomberg|url=https://www.bloomberg.com/apps/news?pid=20601087&sid=atWGo2QLv8ss&refer=home|access-date=2009-01-18}} having received several bids from life insurance companies and private equity firms interested in buying.{{cite news|last=Bansal|first=Paritosh|date=2008-06-06|title=Citi gets initial bids for Primerica unit: sources|publisher=Reuters UK|url=http://uk.reuters.com/article/innovationNews/idUKN0427363820080606|archive-url=https://web.archive.org/web/20080905080106/http://uk.reuters.com/article/innovationNews/idUKN0427363820080606|url-status=dead|archive-date=September 5, 2008|access-date=2008-06-15}}{{cite news|date=2008-06-06|title=Primerica prepares to be taken off Citi's map|publisher=TheDeal.com|url=http://www.thedeal.com/dealscape/2008/06/primerica_prepares_to_be_taken.php|access-date=2008-06-15}}{{dead link|date=November 2016|bot=InternetArchiveBot|fix-attempted=yes}} At the time the market value of the company was estimated to be $7 billion.{{cite news|last=Wahba|first=Phil|date=2008-09-05|title=Citi could sell Primerica, Texas business: Ladenburg's Bove|publisher=Reuters|url=https://www.reuters.com/article/idUSN0531684120080906|access-date=2010-10-26}} JC Flowers & Co. LLC and Protective Life Corp began to purchase the company but the deal was canceled for undisclosed reasons.{{cite news|last=Magpily|first=Gerald|date=2008-12-11|title=Primerica sale is a bust for Citi|publisher=TheDeal.com|url=http://www.thedeal.com/dealscape/2008/12/primerica_divestment_a_no_go_f.php|url-status=dead|access-date=2009-01-03|archive-url=https://web.archive.org/web/20090503165400/http://www.thedeal.com/dealscape/2008/12/primerica_divestment_a_no_go_f.php|archive-date=May 3, 2009}}

During the COVID-19 pandemic, in 2020, Primerica paid out $1.7 billion in death claims. This was a 15.8% increase over 2019.{{Cite news|last=Scism|first=Leslie|date=2021-12-09|title=WSJ News Exclusive {{!}} Covid Spurs Biggest Rise in Life-Insurance Payouts in a Century|language=en-US|work=Wall Street Journal|url=https://www.wsj.com/articles/covid-spurs-biggest-rise-in-life-insurance-payouts-in-a-century-11639045802|access-date=2022-02-10|issn=0099-9660}} The financial services company ended 2021 with $900 billion in active term life insurance.{{Cite web|last=Bell|first=Allison|date=January 4, 2022|title=COVID-19 Driving Group Life Deaths Past 200-Year Event Levels|url=https://www.thinkadvisor.com/2022/01/04/covid-19-driving-group-life-deaths-past-200-year-event-levels-oneamerica/?.|access-date=February 9, 2022|website=Think Advisor}}

=Initial public offering=

On November 5, 2009, Citi announced that it intended to spin off Primerica through an initial public offering.{{cite news|last=Barr|first=Alistair|date=2009-11-05|title=Citigroup files for IPO of Primerica unit|publisher=MarketWatch|url=http://www.marketwatch.com/story/citigroup-files-for-ipo-of-primerica-unit-2009-11-05|access-date=2009-11-15}} The first trading occurred on April 1, 2010, priced at $15 a share the day before trading.{{cite news|last=Sweet|first=Ken|date=2010-04-01|title=Primerca's IPO Prices at $15/Share; Stock Surging|publisher=Fox Business Network|url=http://www.foxbusiness.com/story/markets/industries/finance/primerca-ipos-share-range/|url-status=dead|access-date=2010-04-01|archive-url=https://web.archive.org/web/20100403001619/http://www.foxbusiness.com/story/markets/industries/finance/primerca-ipos-share-range/|archive-date=April 3, 2010}} Citi raised $320 million through the IPO.{{cite news|last=Tsang|first=Michael|date=2010-03-31|title=Primerica Raises $320 Million in IPO Selling Shares Above Range|publisher=Bloomberg|url=https://www.bloomberg.com/apps/news?pid=newsarchive&sid=aEur.Zi3883M|access-date=2010-04-01}}{{Cite news|last=Baldwin|first=Maria Aspan, Clare|title=Citi spinoff Primerica soars on hopes for economy|language=en-US|work=Reuters|url=https://www.reuters.com/article/us-primerica-ipo-idUSTRE6301VE20100401|access-date=2021-03-04}}{{cite news|last=Tsang|first=Michael|date=2010-04-01|title=Primerica Jumps on First Day After $320 Million IPO (Update3)|publisher=BusinessWeek|url=http://www.businessweek.com/news/2010-04-01/primerica-ipo-sold-above-range-as-citigroup-raises-320-million.html|url-status=dead|access-date=2010-04-01|archive-url=https://web.archive.org/web/20100403004729/http://www.businessweek.com/news/2010-04-01/primerica-ipo-sold-above-range-as-citigroup-raises-320-million.html|archive-date=April 3, 2010}}{{Better source needed|date=March 2021}}

In a separate offering, private equity firm Warburg Pincus bought a 23-percent stake in Primerica, and had the option to purchase an additional 10-percent stake from Citi.{{cite news|date=2010-03-17|title=Citigroup To Sell Stake In Primerica|publisher=BusinessWeek|url=http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=869527|archive-url=https://web.archive.org/web/20121007113450/http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=869527|url-status=dead|archive-date=October 7, 2012|access-date=2010-04-01}} On December 19, 2011, Citigroup sold its remaining equity stake in Primerica.{{cite web|title=Primerica Announces "Refounding" IPO Process is Complete|url=http://online.barrons.com/article/PR-CO-20111219-905712.html|access-date=4 January 2012|publisher=Barron's Online}}

Primerica was listed by Forbes as one of "America's 50 Most Trustworthy Financial Companies" in 2015.{{cite web|last=Dill|first=Kathryn|title=America's 50 Most Trustworthy Financial Companies|url=https://www.forbes.com/sites/kathryndill/2015/08/03/americas-50-most-trustworthy-financial-companies-2|access-date=3 August 2015|work=www.forbes.com}}

In July 2021, Primerica acquired e-Telequote, a health insurance marketer.

Products and business model

File:Primerica Convention 2007.jpg

Primerica uses a multi-level marketing strategy, with eleven tiers of representatives and recruiters selling financial products and services for commission.

The company primarily sells term life insurance, as well as other financial services including auto and home insurance, mutual funds, and credit monitoring.{{Cite web|last=Gara|first=Antoine|title=The Best Insurance Companies In Every State 2021|url=https://www.forbes.com/sites/antoinegara/2020/09/30/the-best-insurance-companies-in-every-state-2021/|access-date=2021-03-04|website=Forbes|language=en}}

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. 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.

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.{{Cite news|last=Kass|first=Arielle|title=Primerica hopes to settle complaints|url=https://www.ajc.com/business/primerica-hopes-settle-complaints/J8dvgcIKYlkeCy27INy5DI/|access-date=2021-03-04|newspaper=The Atlanta Journal-Constitution|language=English}}

References

=Footnotes=

=Sources=

[http://www.primericabusinessopportunity.com/ Primerica] Primerica, viewed July 7, 2012
[http://www.newgeorgiaencyclopedia.org/nge/Article.jsp?id=h-1104 New Georgia Encyclopedia] {{Webarchive|url=https://web.archive.org/web/20071008204450/http://www.newgeorgiaencyclopedia.org/nge/Article.jsp?id=h-1104 |date=October 8, 2007 }} NGE, viewed November 7, 2006