Primerica Announces its Intention to Exit Senior Health Business
16 Luglio 2024 - 10:04PM
Business Wire
Primerica, Inc. (NYSE:PRI) announced today that after carefully
considering various options, the Board of Directors has opted to
exit its senior health business by relinquishing ownership of
e-TeleQuote Insurance, Inc. (e-TeleQuote). The senior health
subsidiary, acquired in July 2021, does not have a clear path
toward anticipated profitability within an acceptable timeframe in
the increasingly challenging senior health distribution market.
Further, the industry is facing an uncertain regulatory environment
that could adversely impact the business.
The Board and management recognize that there remains
significant demand for senior healthcare due to the aging of the
U.S. population and continues to believe that Primerica’s unique
ability to reach middle-income families through its independent
sales force is a clear competitive advantage. However, Primerica’s
ownership of a senior health business has not created the near-term
stockholder value that had been anticipated at the time of the
acquisition of e-TeleQuote.
With the assistance of a third-party consultant specializing in
turn-around and restructuring transactions, Primerica determined
that relinquishing its ownership of e-TeleQuote is the most
expeditious way to exit its senior health business while maximizing
Primerica’s residual stockholder value. Primerica expects to
terminate its rights to e-TeleQuote no later than September 30,
2024. On or prior to such time, e-TeleQuote expects to issue shares
of its common stock to a third party who has not yet been
identified. It is expected that such third party, which may consist
of one or more entities, will ultimately own e-TeleQuote when
Primerica terminates its rights.
“Various options for exiting the senior health market were
carefully considered and, among other things, the significant
structural changes the sector has undergone since e-TeleQuote’s
acquisition drove the decision,” said Glenn Williams, CEO of
Primerica. “We will continue to support client relationships with
no plans to decrease staffing levels at e-TeleQuote during the
transition.”
Seniors who selected a Medicare Advantage or Medicare Supplement
policy with the help of an e-TeleQuote agent will not be impacted
by this change since they are clients of the insurance carrier that
provides their policy. e-TeleQuote will continue to service
clients, and Primerica representatives will continue to make
referrals to e-TeleQuote’s licensed agents, through the date
Primerica terminates its ownership of e-TeleQuote. Following such
time, the new owners of e-TeleQuote will be responsible for
communicating with e-TeleQuote clients.
Forward-Looking Statements Except for historical
information contained in this press release, the statements in this
press release are forward-looking and made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements contain known and unknown risks
and uncertainties that may cause our actual results in future
periods to differ materially from anticipated or projected results.
Those risks and uncertainties include risk factors that are
described in our filings with the Securities and Exchange
Commission, which are available in the "Investor Relations" section
of our website at https://investors.primerica.com. Primerica
assumes no duty to update its forward-looking statements as of any
future date.
About Primerica, Inc. Primerica, Inc., headquartered in
Duluth, GA, is a leading provider of financial products and
services to middle-income households in North America. Independent
licensed representatives educate Primerica clients about how to
better prepare for a more secure financial future by assessing
their needs and providing appropriate solutions through term life
insurance, which we underwrite, and mutual funds, annuities and
other financial products, which we distribute primarily on behalf
of third parties. We insured over 5.7 million lives and had over
2.9 million client investment accounts on December 31, 2023.
Primerica, through its insurance company subsidiaries, was the #2
issuer of Term Life insurance coverage in the United States and
Canada in 2023. Primerica stock is included in the S&P MidCap
400 and the Russell 1000 stock indices and is traded on The New
York Stock Exchange under the symbol “PRI.”
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version on businesswire.com: https://www.businesswire.com/news/home/20240715943835/en/
Investor Contact: Nicole Russell 470-564-6663 Email:
Nicole.Russell@primerica.com
Media Contact: Susan Chana 404-229-8302 Email:
susan.chana@primerica.com
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