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==Technology==
==Technology==


In 2005<ref name=autogenerated4>{{cite news | first = Ryan | last = Kairer | title = Primerica Deploys 4,000 Palm Devices | publisher = [http://www.palminfocenter.com Palm Infocenter] | date = [[2005-08-30]] | url = http://www.palminfocenter.com/news/8051/primerica-deploys-4000-palm-devices/ | accessdate=2007-08-31}}</ref> Primerica representatives were able to begin submitting life insurance applications electronically through the TurboApps<ref name=autogenerated2>{{cite news | first = | last = | title = Primerica Financial Services Uses Palm Devices to Automate Insurance Application Review | publisher = [http://www.palm.com/us/ Palm, Inc.] | date = | url = http://solutions.palm.com/regac/success_stories/enterprise/enterprise_details.jsp?storyId=1096/ | accessdate=2007-10-13}}</ref> application developed by the Primerica Field Technology team via [[Palm PDA|Palm]] [[handheld]] devices.<ref name=autogenerated1>{{cite news | first = | last = | title = Primerica Runs Customized Financial Services Application on Palm Handhelds and Smartphones | publisher = [[Business Wire]] | date = [[2005-08-30]]| url = http://www.thefreelibrary.com/Primerica+Runs+Customized+Financial+Services+Application+on+Palm...-a0135608530 | accessdate=2007-10-13}}</ref> Clients have the opportunity to get insurance quotes on the spot and complete the life application paperlessly. This effectively sped up the [[underwriting#Insurance underwriting|underwriting]] process for Primerica Life and increased the amount of policies processed and insurance face amount put into force on a monthly basis.<ref name=autogenerated3>{{cite news |first = Michael |last = Sisk | title = Primerica Experiment in Insurance Pays Off | publisher = [http://www.us-banker.com US Banker] | date = [[2005-11-01]] | url = http://news.primerica.com/public/news/primerica_2005.html | accessdate=2007-08-31}}</ref> In 2007 the electronic application process was extended to include the $.M.A.R.T. loan program, now offered through CitiMortgage.
In 2005<ref name=autogenerated4>{{cite news | first = Ryan | last = Kairer | title = Primerica Deploys 4,000 Palm Devices | publisher = [http://www.palminfocenter.com Palm Infocenter] | date = [[2005-08-30]] | url = http://www.palminfocenter.com/news/8051/primerica-deploys-4000-palm-devices/ | accessdate=2007-08-31}}</ref> Primerica representatives were able to begin submitting life insurance applications electronically through the TurboApps<ref name=autogenerated2>{{cite news | first = | last = | title = Primerica Financial Services Uses Palm Devices to Automate Insurance Application Review | publisher = [http://www.palm.com/us/ Palm, Inc.] | date = | url = http://solutions.palm.com/regac/success_stories/enterprise/enterprise_details.jsp?storyId=1096/ | accessdate=2007-10-13}}</ref> application developed by the Primerica Field Technology team via [[Palm PDA|Palm]] [[handheld]] devices.<ref name=autogenerated1>{{cite news | first = | last = | title = Primerica Runs Customized Financial Services Application on Palm Handhelds and Smartphones | publisher = [[Business Wire]] | date = [[2005-08-30]]| url = http://www.thefreelibrary.com/Primerica+Runs+Customized+Financial+Services+Application+on+Palm...-a0135608530 | accessdate=2007-10-13}}</ref> Clients have the opportunity to get insurance quotes on the spot and complete the life application paperlessly. This effectively sped up the [[underwriting#Insurance underwriting|underwriting]] process for Primerica Life and increased the amount of policies processed and insurance face amount put into force on a monthly basis.<ref name=autogenerated3>{{cite news |first = Michael |last = Sisk | title = Primerica Experiment in Insurance Pays Off | publisher = [http://www.us-banker.com US Banker] | date = [[2005-11-01]] | url = http://news.primerica.com/public/news/primerica_2005.html | accessdate=2007-08-31}}</ref> 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==
==Ratings, Awards, and Commendations==

Revision as of 15:41, 10 September 2008

Primerica Financial Services
Company typeSubsidiary
IndustryFinancial Services
FoundedFebruary 10, 1977
Headquarters3120 Breckinridge Blvd.
Duluth, GA
30099-0001
(770) 381-1000
Key people
John Addison, Co-CEO
Rick Williams, Co-CEO and COO
Glenn Williams, President
ProductsLife Insurance
mutual funds
Variable Annuities
Loans
Mortgages
Long-Term Care Insurance
Legal Services
Car insurance
Homeowners Insurance
Increase US $544 million (2007)[1]
Total equityUS $7 billion (2007)[1]
Number of employees
2,200 (2007)
ParentCitigroup
Websitewww.primerica.com

Primerica Financial Services (PFS), is a financial services company and is 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.[2] 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. [2] Its mortgage lender CitiMortgage is one of a few major mortgage providers to offer Simple Daily Interest mortages through its $.M.A.R.T Loans,[3] 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 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.[4] In 2000 the company expanded overseas to Spain, commencing operations as CitiSoluciones.[5] Primerica is a former component of the Dow Jones Industrial Average, having been replaced in 1991 by J.P. Morgan.[6]

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.[7] 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,[8] hence giving birth to the new and currently recognized name "Primerica."

Acqusition 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,[9] 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 of 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 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 through Pre-Paid Legal Services, Inc., at the time both subsidiaries of Travelers Group, Inc.[10]

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.[11]

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",[12] were hired as co-CEOs in 2000, with Glen Williams promoted to President in 2005.[13]

2007 Convention

Official Atlanta Convention & Travel Bureau promotional banner for the Primerica 2007 Convention
60,000 representatives attend the 2007 convention at the Georgia Dome

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.[14] An estimated 60,000 representatives attended.[15] 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.[16]

Technology

In 2005[17] Primerica representatives were able to begin submitting life insurance applications electronically through the TurboApps[18] application developed by the Primerica Field Technology team via Palm handheld devices.[19] 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.[20] 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.[21] Standard & Poor's has the company rated AA as "Very Strong."[22] 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."[23]

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.[24]

Bruce Sankin, an investment counselor, consumer advocate, and columnist,[25] wrote 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.[26]

Possible sale of Primerica

Citi has received several bids from life insurance companies and private equity companies who would be interested in buying Primerica.[1][27][28] 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.

Sources

See also

References

  1. ^ a b c 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. ^ a b Primerica's History, http://www.primerica.com/public/history.html
  3. ^ "The $.M.A.R.T. Solution". Citicorp Trust Bank, fsb. Retrieved 2008-01-29. {{cite news}}: External link in |publisher= (help)
  4. ^ Primerica Financial Services Timeline
  5. ^ 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)
  6. ^ History of DJIA, globalfinancialdata.com
  7. ^ Citigroup Family Tree History
  8. ^ "American Can Picks a Name". The New York Times. 1987-03-07. Retrieved 2008-01-26. {{cite news}}: Check date values in: |date= (help)
  9. ^ 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)
  10. ^ "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)
  11. ^ http://www.sec.gov/litigation/admin/3440269.txt
  12. ^ 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)
  13. ^ Primerica Leadership, http://ww3.primerica.com/public/who/leadership.html
  14. ^ Primerica 2007 Georgia Dome event
  15. ^ Google Calendar event
  16. ^ "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)
  17. ^ 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)
  18. ^ "Primerica Financial Services Uses Palm Devices to Automate Insurance Application Review". Palm, Inc. Retrieved 2007-10-13. {{cite news}}: External link in |publisher= (help)
  19. ^ "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)
  20. ^ 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)
  21. ^ "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)
  22. ^ Primerica Life S&P Rating
  23. ^ "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)
  24. ^ 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)
  25. ^ Bruce N. Sankin, What All Stock & Mutual Fund Investors Should Know!, 2005, pp. 3, 5.
  26. ^ Bruce N. Sankin, What All Stock & Mutual Fund Investors Should Know!, 2005, p. 28.
  27. ^ "Citigroup Gets Initial Bids For Primerica Unit". BusinessWeek. 2008-06-09. Retrieved 2008-06-15. {{cite news}}: Check date values in: |date= (help)
  28. ^ "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)
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