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Primerica Financial Services

File:Primerica logo.png
Company type	Subsidiary
Industry	Financial Services
Founded	February 10, 1977
Headquarters	3120 Breckinridge Blvd. Duluth, GA 30099-0001 (770) 381-1000
Key people	John Addison, Co-CEO Rick Williams, Co-CEO and COO Glenn Williams, President
Products	Life Insurance mutual funds Variable Annuities Loans Mortgages Long-Term Care Insurance Legal Services Car insurance Homeowners Insurance
Net income	US $544 million (2007)
Total equity	US $7 billion (2007)
Number of employees	2,200 (2007)
Parent	Citigroup
Website	www.primerica.com

Primerica Financial Services (PFS) is a financial services company headquartered in Duluth, Georgia. It is the largest financial services marketing organization in North America with more than 100,000 licensed independent representatives, 26,000 of whom are FINRA securities licensed through PFS Investments, Inc., Primerica's securities broker-dealer affiliate. The company provides financial products and services through its affiliates that include term life insurance, mutual funds, variable annuities, loans, long-term care insurance and pre-paid legal services, to over 6 million clients through a network marketing formatted sales model. In August 2007 Primerica and Answer Financial introduced 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 US. Primerica first expanded internationally in 1986 when it began operating in Canada. In 2000 the company expanded overseas to Spain, commencing operations as CitiSoluciones. Primerica is a former component of the Dow Jones Industrial Average, having been replaced in 1991 by J.P. Morgan.

SESAME STREET ECONOMICS - 1 - If you are only licensed as a life insurance agent and a mutual funds representative and you believe you can take a wholestic financial planning approach you are wrong. Let me ask you how you’d hedge a portfolio against systematic risk. Sorry diversification is a text book wrong answer. You are in denial if you think you will get rich off these products alone that have a small trail and a trail only if you are even licensed with your 6 or 63. That isn’t half of you on this page. Your “business” which is a Multi-Level-Marketing, hence largest finanical services MARKETING org; notice the legal lingo that requires them to use marketing because you are definately not the largest financial services organization, is based very much so on recruiting. I’ve done corporate recruiting and guess what, not everyone wants to change thier life to a MLM anyone with a pulse can be a client life style, and believe me a salary PLUS commission is for the talented and truly competent; Anyone can go grab a commission only job at any financial services competitor. Sorry to say but the reason you are new to the industry and not receiving salary plus commission is because you have a history of slacking off in either your academic studies or other employment; hence your last desparation to grab this opportunity that you’ll soon find has a very poor pay out. If you are really interested in the financial industry obtain a series 7 license and 66 license your CFP and learn all the capabilities out there so you can really help people without being limited by primerica’s philosophy of that you only need these few products. You have fewer fund families than a 401k which is sad, and a “common sense” annuity; give me a break. It’s funny how you’ll criticize MetL life insurance and then go and use thier annuity product. Where is the falacy there?? Anyone?

What you sell is sesame street economics to people that really have had no exposure to the industry. You exploit their lack of knowledge and use primerica slogans for every aspect of the business. When you are a parrot repeating the same lingo it is apparent you’ve given little though to do actual research yourself on the markets or how different asset classes are even correlated. A freshman with one econ 101 course could do circles around your fabricated knowledge of what you think is this whole financial realm. Well wake up and see that your not only doing an injustice by blindly leading these client sheep of yours to the slaughter house, but to say it’s in the name of doing what’s best for clients; seriously; go study, pass exams that qualify you to actually financially advise, which is not the 6 or 63 or life, health, ltc, and do us all a favor and use some self due diligence and educate yourself first before you just try and sell stories and common sense catch phrases that sound so ammature and weak. Now you can’t call yourself a financial advisor or planner because you legally are not aloud because you are completely not even close to being qualified so like i said do us a favor, go to citi.com and search for primerica and see that your parent company is so shameful of you the company is nowhere to be found on any of its main web pages. Our competitor Smith Barney of course, a wirehouse, is reputable and where they send clients for investment advise and financial planning. Guess how much pfs pays to use the citi name… how bad does pfs have to milk that too… it’s so funny… well whatever helps your denial keep feeding to each other. It’s like a bunch of fat kids thinking that cake is actually healthy for them if they wish it to be true. Well keep doing a great job pulling in that first paycheck that’s your life and health reembersement and make sure you keep outfitting yourselves as unprofessional as possible when you show up in t-shirt and jeans to your little pep talks. and secretly i know each and every one of you has a pfs life policy… u know u do too… who did u compare it with…uhh that’s right.. no one.. u bought in to it all ;p

RECRUITING JUSTIFICATION: well lets see.. get the blind teaching the blind and say “who am i to judge who will make it or not” and yes then you can put your head on the pillow at night.. well, that’s if you have no real judgement and are more motivated by what, oh ya, the dream of money and success; ah so hypicritical. So i get a stupid 18yr old and sell him/her the world. They feel all excited b/c they are this business owner or soon to be business owner lol. They “spread the word” and the “regional rep” takes him/her on appointments and closes all the business making more on the business than the junior rep.. which u all think is justifiable but in reality the person with the actual relationship makes the most. Well then the 18yr old just gives everyone he knows away the senior guys are happy and the junior guy thinks that’s great, but then the will runs dry.. uh oh.. now its time for real business and talking to people we don’t know.. ummm how about we just get another idiot to be convienced to join and we’ll exploit his “warm market”.. and round and round this vicious cycle we profit… the 18yr old tries to coach, but can’t… why.. he’s not licensed or at that level.. hey they never told me that… so yep.. that regional or rvp gets all that business… and u thought u owned a business… uh no… but ur are a 1099 employee.. wait.. don’t u criticise them too.. umm ya u do.. wow.. so many flaws in this model.. so there lies the reason to recruit.. it continually opens up that persons warm market and u move on.. u sleep at night because you say, who am i do judge someones potential… well wake up people.. you are judged every single day by your potential and rightly so.. are you going to tell me your fund managers don’t judge funds potential based off history and past performance… or do you want there money invested in a company where they say.. hmmm hey lets give them a chance… no.. just doesn’t work that way. Oh and all this talk about how everyone else out there is Soo unhappy in corp america… let me ask you your positions you had before.. mcdonalds and wallmart don’t count as corp america. ya you have a few people with reputable backgrounds but there is a reason they didn’t make it in thier industry either.. and to say all those people that make it are “evil” well is just irresponsible and makes you look so amature. Who are you to assume everyone is dissatified. Many people that are real entrepreneurs not fake MLM ones, are happy and many people in other fields are just the same. But you negative people have to just talk crap about everyone else to make yourself feel better… or atleast you exploit the 18yr idiot… i think i’ve seen as high as 40yr idiot at a volnerable time in their life… so rest easy

History

Founded in 1977 by Arthur L. Williams, Jr. as A.L. Williams & Associates (A.L. Williams), 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 funds IRAs. A.L. Williams was initially established as a privately held general agency, at first selling term life insurance policies underwritten by Financial Assurance, Inc. (FAI).

The company expanded, outgrowing the capacity of FAI 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 (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 30 blue chip can and container producing company based in Greenwich, Connecticut founded in 1901. 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, hence giving birth to the new and currently recognized name "Primerica."

Acquisition by Sandy Weill

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 of its intent to buy the Wall Street brokerage for $750 million, which would later end up as Primerica's sister company under Citigroup in 1998.

In 1985 ALWC began the procedure to open business in Canada. After encountering legal and cultural roadblocks to expanding outside the United States, ALWC finally began selling insurance products of Pennsylvania Life Insurance Company, a Primerica subsidiary, in Canada in 1986.

On November 30, 1988 ALWC acquired MILICO from Primerica Corporation through a stock merger acquisition for 44.58 million shares of ALWC stock, making Primerica Corporation the majority shareholder of ALWC. In December 1988, Sandy Weill's Commercial Credit acquired Primerica Corporation for $1.54 billion, retaining the Primerica name. At this time, the major businesses under Primerica Corporation included A.L. Williams, Smith Barney and Commercial Credit. On February 6, 1989 Primerica Corporation began trading on the New York Stock Exchange.

Travelers and Citigroup Era

In November 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.

In December 1993, Primerica 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 through Pre-Paid Legal Services, Inc., at the time both subsidiaries of Travelers Group, Inc.

In 1998, the U.S. 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. 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. Prior to the SEC's ruling, PFS Investments Inc. voluntarily hired an independent consultant to review its 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.

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.

Long-time veteran executives John Addison and Rick Williams, whom Art Williams quoted in his book Coach as "two true sons of A.L. Williams", were hired as co-CEOs in 2000, with Glen Williams promoted to President in 2005.

2007 Convention

Primerica held its 30th Anniversary Convention August 1, 2007 through August 4, 2007 in Atlanta, Georgia in the Georgia Dome and the Georgia World Congress Center. An estimated 60,000 representatives attended. Primerica Secure was introduced at the event, as well as the newest term life insurance product, Custom Advantage. Notable speakers included former Chairman & CEO of Citigroup Charles Prince, founder of Pre-Paid Legal Services, Inc. Harland Stonecipher, as well as Georgia Governor Sonny Perdue.

Technology

In 2005 Primerica representatives were able to begin submitting life insurance applications electronically through the TurboApps application developed by the Primerica Field Technology team via Palm handheld devices. Clients have the opportunity to get insurance quotes on the spot and complete the life application paperlessly. This effectively sped up the underwriting process for Primerica Life and increased the amount of policies processed and insurance face amount put into force on a monthly basis. In 2007 the electronic application process was extended to include the $.M.A.R.T. loan program, now offered through CitiMortgage, reducing the time for a pre-approval and debt solution to as little as 6 hours. The inclusion of the Independent Business Application was also included in 2007 to reduce the time needed to get a new recruit into the system and through state mandated pre-licensing classes.

Ratings, Awards, and Commendations

Primerica's life insurance underwriter Primerica Life Insurance Company and its New York subsidiary National Benefit Life are rated A+ as "Superior" by A. M. Best as of May 2008. Standard & Poor's has the company rated AA as "Very Strong." The 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."

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.

Bruce Sankin, an investment counselor, consumer advocate, and columnist, wrote in his 2005 book What All Stock & Mutual Fund Investors Should Know! of the Financial Needs Analysis that Primerica provides to its customers:

A good financial analysis will give you a "Game Plan" on how to attain your financial goal. Many companies offer financial analysis. A financial analysis will cost between a few hundred dollars to as high as a few thousand dollars. One company, Primerica Financial Services, which is a division of Citigroup, offers the best value for a professional financial analysis. Primerica, which creates a custom design financial report, does not charge a monetary fee for this service. Their marketing approach is, if you are satisfied with the service provided in the creation of their financial analysis, they ask for referrals as their fee.

George Boelcke, a financial consultant, wrote in an article in the American Chronicle:

Yet there is a huge company, Primerica Financial Services, a division of Citigroup, that has made vast numbers of refinance mortgage loans through a product they call SMART. NONE of these are adjustable rate mortgages. Read that again: Primerica has never originated any ARMs with their refinance products (done through Citicorp Trust Bank). Their clients are watching the mortgage crisis from the sidelines and the safely of a fixed-rate term and consolidation, thinking: "that could have been me in a foreclosure…"

Because they refuse to do false, misleading, or gimmick advertising, they need to work harder to make themselves known, in spite of doing the right thing, in the right way, all the time? How sad that credibility can so often be bought by simple advertising. But if you´re looking for a second opinion, some options, or perhaps a way out, it might be worth your time to get in touch with them.

Possible sale of Primerica

Citi has received several bids from life insurance companies and private equity companies who would be interested in buying Primerica. The market value of the company is estimated to be $9 billion, roughly 15 times its annual earnings and Citi was trying to match various bidders in groups that could bid for the unit together.

External links

• Primerica Financial Services
• Citigroup Parent Company
• Citigroup Family Tree History

Sources

• Primerica Financial Services Citigroup.com, viewed August 1, 2007
• New Georgia Encyclopedia NGE, viewed November 7, 2006
• Citigroup Corporate History Citigroup.com, viewed August 1, 2007
• News Blaze article: IMSA rates Primerica Life Insurance company for ethical and excellent service, viewed August 20, 2007

See also

• Direct selling
• List of multi-level marketing companies

References

1. ^ Bansal, Paritosh (2008-06-06). "Citi gets initial bids for Primerica unit: sources". Reuters UK. Retrieved 2008-06-15. {{cite news}}: External link in |publisher= (help)
2. ^ Primerica's History, http://www.primerica.com/public/history.html
3. Primerica Financial Services Timeline
4. Hann, Leslie Werstein (2000-09-01). "Primerica's Overseas Expansion Targets Spain's Middle Class". Best's Review. Retrieved 2008-06-15. {{cite news}}: Check date values in: |date= (help); External link in |publisher= (help)
5. History of DJIA, globalfinancialdata.com
6. Citigroup Family Tree History
7. "American Can Picks a Name". The New York Times. 1987-03-07. Retrieved 2008-01-26. {{cite news}}: Check date values in: |date= (help)
8. Perlman, Merrill (1987-05-31). "WEEK IN BUSINESS; PRIMERICA SHARPENS ITS FINANCIAL FOCUS". The New York Times. Retrieved 2008-06-29. {{cite news}}: Check date values in: |date= (help)
9. "Primerica Financial Services to Offer Legal Plans Through Pre-paid Legal Services, Inc". Business Wire. 1997-12-19. Retrieved 2007-08-20. {{cite news}}: Check date values in: |date= (help)
10. http://www.sec.gov/litigation/admin/3440269.txt
11. Williams, Art (2006). Coach. Atlanta, Georgia: Art Williams Productions. ISBN 0-9786266-0-5. {{cite book}}: Unknown parameter |coauthors= ignored (|author= suggested) (help); Unknown parameter |month= ignored (help)
12. Primerica Leadership, http://ww3.primerica.com/public/who/leadership.html
13. Primerica 2007 Georgia Dome event
14. Google Calendar event
15. "Atlanta's Largest Corporate Convention Raises Attendance" (PDF). Atlanta Convention and Visitor's Bureau. Retrieved 2007-12-21. {{cite news}}: External link in |publisher= (help)
16. Kairer, Ryan (2005-08-30). "Primerica Deploys 4,000 Palm Devices". Palm Infocenter. Retrieved 2007-08-31. {{cite news}}: Check date values in: |date= (help); External link in |publisher= (help)
17. "Primerica Financial Services Uses Palm Devices to Automate Insurance Application Review". Palm, Inc. Retrieved 2007-10-13. {{cite news}}: External link in |publisher= (help)
18. "Primerica Runs Customized Financial Services Application on Palm Handhelds and Smartphones". Business Wire. 2005-08-30. Retrieved 2007-10-13. {{cite news}}: Check date values in: |date= (help)
19. Sisk, Michael (2005-11-01). "Primerica Experiment in Insurance Pays Off". US Banker. Retrieved 2007-08-31. {{cite news}}: Check date values in: |date= (help); External link in |publisher= (help)
20. "A.M. Best Affirms Ratings of Primerica Life Insurance Company and Its Subsidiaries". Market Watch. 2008-05-15. Retrieved 2008-06-20. {{cite news}}: Check date values in: |date= (help); External link in |publisher= (help)
21. Primerica Life S&P Rating
22. "Primerica Life, National Benefit Life Renew Qualification in IMSA, Ethical Standards Organization". News Blaze. March 2007. Retrieved 2007-08-20. {{cite news}}: Check date values in: |date= (help); External link in |publisher= (help)
23. Whalen, Kathleen (2007-01-17). "DALBAR Announces Its 2006 Customer Service Award Winners in Financial Services". Dalbar. Retrieved 2007-08-31. {{cite news}}: Check date values in: |date= (help); External link in |publisher= (help)
24. Bruce N. Sankin, What All Stock & Mutual Fund Investors Should Know!, 2005, pp. 3, 5.
25. Bruce N. Sankin, What All Stock & Mutual Fund Investors Should Know!, 2005, p. 28.
26. George Boelcke, It's Your Money
27. Boelcke, George (2008-02-17). "The Escalating Mortgage Crisis: Questions, Answers & A Company You Should Know About". . Retrieved 2008-09-10. {{cite news}}: Check date values in: |date= (help); External link in |publisher= (help)
28. "Citigroup Gets Initial Bids For Primerica Unit". BusinessWeek. 2008-06-09. Retrieved 2008-06-15. {{cite news}}: Check date values in: |date= (help)
29. "Primerica prepares to be taken off Citi's map". TheDeal.com. 2008-06-06. Retrieved 2008-06-15. {{cite news}}: Check date values in: |date= (help); External link in |publisher= (help)
30. Wahba, Phil (2008-09-05). "Citi could sell Primerica, Texas business: Ladenburg's Bove". Reuters. Retrieved 2008-09-29. {{cite news}}: Check date values in: |date= (help)

• Former components of the DJIA
• Multi-level marketing