Primerica (PRI), a Citigroup (C) subsidiary being spun-off, is expected to price its IPO this week.
Business Overview (from prospectus)
We are a leading distributor of financial products to middle income households in North America with approximately 100,000 licensed sales representatives. We assist our clients in meeting their needs for term life insurance, which we underwrite, and mutual funds, variable
annuities and other financial products, which we distribute primarily on behalf of third parties. We insure more than 4.3 million lives and more than two million clients maintain investment accounts with us. Our distribution model uniquely positions us to reach underserved middle income consumers in a cost-effective manner and has proven itself in both favorable and challenging economic environments.
Offering: 18 million shares at $12 – $14 per share. The company will not receive any proceeds from the sale of shares or from the concurrent private sale of common stock by Citi to Warburg Pincus. All of the net proceeds from this offering and the concurrent private sale will be received by Citi.
Lead Underwriters: Citi (C), UBS Investment Bank (UBS)
Financial Highlights:
Total revenues increased $23.5 million to $2.2 billion for the year ended December 31, 2009 from $2.1 billion for the year ended December 31, 2008…Total benefits and expenses decreased $383.5 million to $1.5 billion for the year ended December 31, 2009 from $1.8 billion for the year ended December 31, 2008…Net income was $494.6 million for the year ended December 31, 2009 as compared to $167.7 million for the year ended December 31, 2008…
Competitors
We operate in a highly-competitive environment with respect to the sale of financial products. Because our product offerings include several different financial products, we compete directly with a variety of financial institutions, such as insurance companies, insurance brokers, banks, finance companies, credit unions, loan brokers, broker-dealers, mutual fund companies and other national and international financial products and services companies, depending on the type of product we are offering. Competitors consist of stock and mutual insurance companies such as AIG (AIG), Allstate (ALL), Ameriprise (AMP), Genworth Financial (GNW), MetLife (MET), Prudential (PRU), State Farm and USAA.
Additional Resources:
- Company website
- Online roadshow
- Reuters: Primerica IPO, despite problems, could sell
- WSJ: Warburg Pincus to Invest in Primerica
- iStockAnalyst: Industry Fundamentals Doom Citigroup Spin-Off
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