Primerica Financial Services
2617619
224856296
2008-07-10T18:46:20Z
Mhking
262806
The company is primarily a financial services firm; it simply uses a MLM sales model
{{POV-check|date=July 2008}}
{{Infobox Company
| name = Primerica Financial Services
| company_logo = [[Image:primerica logo.png|300px]]
| type = [[Subsidiary]]
| parent = [[Citigroup]]
| company_slogan = "Help families become debt free and financially independent"
| foundation = [[February 10]], [[1977]]
| location = 3120 Breckinridge Blvd.<br />[[Duluth, Georgia|Duluth]], [[Georgia (U.S. state)|GA]]<br />30099-0001<br />(770) 381-1000
| key_people = John Addison, Co-[[CEO]]<br /> Rick Williams, Co-[[CEO]] and [[Chief operating officer|COO]]<br />Glenn Williams, [[President]]
| industry = [[Financial Services]]
| products = [[Life Insurance]]<br />[[Mutual Funds]]<br />[[Annuity (US financial products)|Variable Annuities]]<br />[[Loans]]<br />[[Mortgages]]<br />[[Long term care insurance|Long-Term Care Insurance]]<br />[[Pre-paid legal services|Legal Services]]<br/>[[Vehicle insurance|Car insurance]]<br/>[[Home insurance|Homeowners Insurance]]
| net_income = {{gain}} US $544 million (2007)<ref name=reuters>{{cite news |first = Paritosh |last = Bansal |url = http://uk.reuters.com/article/innovationNews/idUKN0427363820080606 |title = Citi gets initial bids for Primerica unit: sources |publisher = [http://uk.reuters.com/ Reuters UK] |date= 2008-06-06 |accessdate = 2008-06-15}}</ref>
| equity = US $7 billion (2007)<ref name=reuters/>
| num_employees = 2,200 ([[2007]])
| homepage = [http://www.primerica.com www.primerica.com]
}}
'''Primerica Financial Services''' (PFS), is a financial services company and is headquartered in [[Duluth, Georgia|Duluth]], [[Georgia (U.S. state)|Georgia]]. It is the largest financial services organization in North America with more than 100,000 licensed [[Independent contractor|independent representatives]], 26,000 of whom are [[FINRA]] [[Series 6|securities]] licensed through PFS Investments, Inc., Primerica's securities [[broker-dealer]] [[affiliate]].<ref name="facts">Primerica's History, http://www.primerica.com/public/history.html</ref> The company provides financial products and services through its affiliates that include [[term life insurance]], [[mutual fund]]s, [[variable annuity|variable annuities]], [[loan]]s, [[long-term care insurance]] and pre-paid [[Pre-paid legal services|legal service]]s, to over 6 million clients through a [[multi-level marketing]] formatted sales model. <ref name="facts"/> Its mortgage lender Citicorp Trust Bank, fsb is one of a few major mortgage providers to offer Simple Daily Interest mortages through its $.M.A.R.T Loans,<ref>{{cite news |first = |last = |url = http://www.citicorptrustbank.com/CTBRetail/ctbretail.do?page=refinance |title = The $.M.A.R.T. Solution |publisher = [http://www.citicorptrustbank.com/CTBRetail/ Citicorp Trust Bank, fsb] |date= |accessdate = 2008-01-29}}</ref> which reduce the cost of a mortgage for people who regularly pre-pay or pay bi-weekly by recalculating interest based on the remaining balance everytime a payment is made. In August 2007 Primerica and Answer Financial introduced [http://www.primericasecure.com Primerica Secure], an auto and homeowner's insurance referral program to get today's most competitive quotes in the market among dozens of insurance carriers. Primerica conducts business principally in the [[United States|US]]. Primerica first expanded internationally in 1986 when it began operating in [[Canada]].<ref>[http://www.citigroup.com/citigroup/corporate/history/primerica.htm Primerica Financial Services Timeline]</ref> In [[2000]] the company expanded overseas to [[Spain]], commencing operations as [http://www.citisoluciones.net/citisoluciones.html CitiSoluciones].<ref>{{cite news |first = Leslie Werstein |last = Hann |url = http://www.accessmylibrary.com/coms2/summary_0286-28761127_ITM |title = Primerica's Overseas Expansion Targets Spain's Middle Class |publisher = [http://www.bestreview.com/default.asp?redir=1&cnum=&bvs=False&fn=&ln= Best's Review] |date= [[2000-09-01]] |accessdate = 2008-06-15}}</ref> Primerica is a former component of the [[Dow Jones Industrial Average]], having been replaced in 1991 by [[JPMorgan Chase|J.P. Morgan]].<ref>[https://www.globalfinancialdata.com/articles/dow_jones.html History of DJIA, globalfinancialdata.com]</ref>
==History==
Founded in [[1977]] by [[Arthur L. Williams, Jr.]] as A. L. Williams & Associates, the company established a market niche by mass-marketing the concept of “[[Buy term and invest the difference]].” With “BTID,” the company advised its mostly middle-income client base to purchase sufficient protection with term life insurance and systematically save and invest in separate investment vehicles, such as mutual fund [[Individual Retirement Account|IRA]]s. A.L. Williams was initially established as privately held general agency, at first selling [[term life insurance]] policies underwritten by Financial Assurance, Inc. (FIA)
The company expanded, outgrowing the capacity of FIA to process its business. In 1980, A.L. Williams entered into a contract with a larger underwriter of life insurance, [[Boston]]-based Massachusetts Indemnity and Life Insurance Company (MILICO), whose parent was PennCorp Financial Services, based in [[Santa Monica]]. To support A.L. Williams, headquartered in [[Atlanta]], MILICO established a regional office in that city. In 1981, the company established First American National Corporation (later called The A.L. Williams Corporation) as a holding company for First American Life Insurance (later renamed A.L. Williams Life Insurance Company) and First American National Securities (later renamed PFS Investments, Inc). In 1982, The A.L. Williams Corporation (ALWC) underwrote a $27 million public stock offering, listed in the [[Over-the-counter (finance)|Over the Counter]] (OTC) market under the symbol ALWC. In 1983, the company became listed on the [[NASDAQ]] exchange under the same symbol.
===Origin of "Primerica" name===
PennCorp's massive growth due to MILICO's underwriting explosion caught the attention of Bill Woodside, [[Chairman]] & [[CEO]] of American Can Company, a former [[Dow Jones Industrial Average|Dow Jones 30]] [[Blue chip (stock market)|blue chip]] can and container producing company based in [[Greenwich (Connecticut)|Greenwich]], [[Connecticut]] founded in 1901.<ref>[http://www.citigroup.com/citigroup/corporate/history/data/tree85x11.pdf?ieNocache=263 Citigroup Family Tree History]</ref> Due to the growing rise of plastic as replacement of aluminum cans, the company looked to acquire financial services and move away from the dying manufacturing industry, having acquired life insurance holding company Associated Madison from Gerry Tsai Jr in 1982. With this acquisition Woodside created a new financial services division for American Can and hired Tsai as the new head, who would later succeed him as Chairman & CEO. In September 1982 American Can and PennCorp signed a merger agreement. In 1983 the merger was finalized, making American Can the parent company of PennCorp and MILICO, signing a new contract with ALWC through the year 2000. In 1986 Triangle Industries bought American Can's packaging division, along with rights to the name of the company. Therefore on [[March 6]], [[1987]] American Can announced that it would change its 86-year-old name to Primerica Corporation,<ref>{{cite news |first = |last = |url = http://query.nytimes.com/gst/fullpage.html?res=9B0DEFDC153BF934A35750C0A961948260 |title =
American Can Picks a Name |publisher = [[The New York Times]] |date= [[1987-03-07]] |accessdate = 2008-01-26}}</ref> hence giving birth to the new and currently recognized name "Primerica."
===Travelers & Citigroup===
The newly-named Primerica Corporation targeted [[Smith Barney]] as the first significant purchase that moved the company completely into financial services with the May 1987 announcement to buy the Wall Street brokerage for $750 million,<ref>{{cite news |first = Merrill |last = Perlman |url = http://query.nytimes.com/gst/fullpage.html?res=9B0DE5D81038F932A05756C0A961948260 |title = WEEK IN BUSINESS; PRIMERICA SHARPENS ITS FINANCIAL FOCUS |publisher = [[The New York Times]] |date= [[1987-05-31]] |accessdate = 2008-06-29}}</ref> which would later end up as Primerica's [[sister company]] under Citigroup in 1998.
On November 30, ALWC acquired MILICO from Primerica for 44.58 million shares of ALWC stock, making Primerica the majority shareholder.
In November of 1989, Primerica purchased the remaining 30% of ALWC that it did not previously own, and also purchased the privately held [[General Agent]], A.L. Williams, Inc. In 1991, Primerica Corporation changed the name of A.L. Williams to Primerica Financial Services. The following year MILICO, Primerica's life insurance underwriter, changed its name to Primerica Life Insurance Company, and its [[broker-dealer]] FANS changed to PFS Investments, Inc.
Primerica Corporation, in December of 1993, acquired the remaining 73% of 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]], Travelers Life and Annuity, Travelers Property/Casualty, Commercial Credit and other financial businesses.
In December 1997, Primerica announced it was going to begin offering [[Pre-paid legal services|pre-paid legal]] through [[Pre-Paid Legal Services, Inc.]], at the time both [[subsidiary|subsidiaries]] of [[Travelers Companies|Travelers Group, Inc]].<ref>{{cite news |first = |last = |url = http://findarticles.com/p/articles/mi_m0EIN/is_1997_Dec_19/ai_20086134 |title =
Primerica Financial Services to Offer Legal Plans Through Pre-paid Legal Services, Inc |publisher = [[Business Wire]] |date= [[1997-12-19]] |accessdate = 2007-08-20}}</ref>
In 1998, the US Securities and Exchange Commission censured and fined PFS Investments Inc., the securities arm for Primerica, for failure to properly supervise a group of registered representatives in Dearborn, Michigan. PFS Investments Inc. 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. Prior to the ruling of the SEC, PFS Investments Inc. voluntarily hired an independent consultant to review their supervisory, compliance, policies and procedures, to prevent and detect violations of the federal securities laws. By the date of the ruling, PFS Investments had complied with the final recommendations made by the independent consultant.<ref>http://www.sec.gov/litigation/admin/3440269.txt</ref>
In 1998, Travelers Group and banking giant Citicorp Trust Bank, fsb merged creating [[Citigroup]] (NYSE:C). Primerica and its affiliates continue to operate as subsidiaries of Citigroup, although the Travelers insurance business was spun off in 2002. Along with Primerica, other major brand names under Citigroup include [[Citibank]], [[CitiFinancial]], [[Citicorp Trust Bank]], [[Smith Barney]], and [[Banamex]].
==Ratings and Awards==
Primerica's life insurance underwriter Primerica Life Insurance Company and its [[New York (state)|New York]] [[subsidiary]] National Benefit Life are rated A+ as "Superior" by [[A. M. Best]] as of [[May 2008]].<ref>{{cite news |first = |last = |url = http://www.marketwatch.com/news/story/am-best-affirms-ratings-primerica/story.aspx?guid={40016672-5FBA-488F-BA7A-C43F3F23AF0E} |title = A.M. Best Affirms Ratings of Primerica Life Insurance Company and Its Subsidiaries |publisher = [http://www.marketwatch.com/ Market Watch] |date= [[2008-05-15]] |accessdate = 2008-06-20}}</ref> [[Standard & Poor's]] has the company rated AA as "Very Strong."<ref>[http://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/ratings_fs_ins/2,1,5,0,0,0,0,0,0,0,3,0,442,0,0,0.html Primerica Life S&P Rating]</ref> The [http://www.imsaethics.org Insurance Marketplace Standards Association], a [[non-profit]] organization based out of [[Bethesda, MD]] with the intent to create ethical standards for the insurance industry, has renewed qualification for Primerica Life and National Benefit Life for high standards and quality business, "continuing dedication to ethical business practices."<ref>{{cite news |first = |last = |url = http://findarticles.com/p/articles/mi_pwwi/is_200703/ai_n18708719 |title = Primerica Life, National Benefit Life Renew Qualification in IMSA, Ethical Standards Organization |publisher = [http://www.newsblaze.com News Blaze] |date= [[March 2007]] |accessdate = 2007-08-20}}</ref>
In 2007, Primerica received its fourth Dalbar Service Award from Dalbar, Inc., a client service rating organization focused on raising the standards of customer satisfaction and quality in the financial services industry, for Primerica's excellent customer service in mutual funds.<ref>{{cite news |first = Kathleen |last = Whalen |url = http://www.dalbarinc.com/content/printerfriendly.asp?page=2007011701 |title = DALBAR Announces Its 2006 Customer Service Award Winners in Financial Services |publisher = [http://www.dalbarinc.com Dalbar] |date= [[2007-01-17]] |accessdate = 2007-08-31}}</ref>
==Sale of Primerica==
[[Citigroup|Citi]] has received several bids from life insurance companies and private equity companies who would be interested in buying Primerica.<ref name=reuters/><ref>{{cite news |first = |last = |url = http://investing.businessweek.com/research/stocks/news/article.asp?docKey=600-200806090907INVTRENDFINANCE__85362-69K8E1BV5A64OCALB1L7MK1C4S×tamp=06/09/2008%209:07%20AM%20ET&headline=Citigroup%20Gets%20Initial%20Bids%20For%20Primerica%20Unit&docSource=Investrend&provider=ACQUIREMEDIA&realtedsyms=%7CUS%3BC&symbol=C |title = Citigroup Gets Initial Bids For Primerica Unit |publisher = [[BusinessWeek]] |date= [[2008-06-09]] |accessdate = 2008-06-15}}</ref><ref>{{cite news |first = |last = |url = http://www.thedeal.com/dealscape/2008/06/primerica_prepares_to_be_taken.php |title = Primerica prepares to be taken off Citi's map |publisher = [http://www.thedeal.com/servlet/ContentServer?pagename=Home&c=Page&cid=1011714706980 TheDeal.com] |date= [[2008-06-06]] |accessdate = 2008-06-15}}</ref> The market value of the company is estimated to be $7 billion, and Citi is now trying to match various bidders in groups that could bid for the unit together.
==External links==
*[http://www.primerica.com Primerica Financial Services]
*[http://www.citigroup.com Citigroup] Parent Company
*[http://www.citigroup.com/citigroup/corporate/history/data/tree85x11.pdf?ieNocache=263 Citigroup Family Tree History]
==Sources==
*[http://www.citigroup.com/citigroup/corporate/history/primerica.htm Primerica Financial Services] Citigroup.com, viewed August 1, 2007
*[http://www.newgeorgiaencyclopedia.org/nge/Article.jsp?id=h-1104 New Georgia Encyclopedia] NGE, viewed November 7, 2006
*[http://www.citigroup.com/citigroup/corporate/history/index.htm Citigroup Corporate History] Citigroup.com, viewed August 1, 2007
*[http://newsblaze.com/story/2007030503002000002.mwir/topstory.html News Blaze] article: IMSA rates Primerica Life Insurance company for ethical and excellent service, viewed August 20, 2007
== See also ==
*[[List of multi-level marketing companies]]
*[[Direct selling]]
==References==
{{reflist|2}}
{{Citigroup}}
[[Category:Former components of the DJIA]]
[[Category:Multi-level marketing]]