Primerica Inc. (Primerica), incorporated on October 26, 2009, is a distributor of financial products to middle-income households in the United States and Canada. The Company operates through three segments: Term Life Insurance, Investment and Savings Products, and Corporate and Other Distributed Products. The Term Life Insurance segment includes underwriting profits on its in-force book of term life insurance policies, net of reinsurance, which are underwritten by its life insurance company subsidiaries. The Investment and Savings Products segment includes retail and managed mutual funds, and annuities distributed through licensed broker-dealer subsidiaries and includes segregated funds, an individual annuity savings product that it underwrites in Canada through Primerica Life Insurance Company of Canada (Primerica Life Canada). In the United States, it distributes mutual fund and annuity products of various third-party companies. It also earns fees for account servicing on a subset of the mutual funds it distributes. In Canada, it offers a Primerica-branded fund-of-funds mutual fund product, as well as mutual funds of mutual fund companies. The Corporate and Other Distributed Products segment consists of revenues and expenses related to the distribution of various other financial products generally underwritten or offered by third-party providers.
The Company conducts its core business activities in the United States through three principal entities, all of, which are direct or indirect subsidiaries of the Company: Primerica Financial Services, Inc. (PFS), its general agency and marketing company; Primerica Life Insurance Company (Primerica Life), its principal life insurance underwriting company, and PFS Investments Inc. (PFS Investments), its investment and savings products company, broker-dealer and registered investment advisor. Primerica Life's subsidiary, National Benefit Life Insurance Company (NBLIC), is a life insurance underwriting company. The Company conducts its core business activities in Canada through three principal entities, all of which are indirect subsidiaries of the Company: Primerica Life Canada, its Canadian life insurance underwriting company; PFSL Investments Canada Ltd. (PFSL Investments Canada), its Canadian licensed mutual fund dealer, and PFSL Fund Management Ltd. (PFSL Fund Management), its Canadian investment funds manager.
Term Life Insurance
The Company, through its three life insurance subsidiaries-Primerica Life, NBLIC and Primerica Life Canada, offers term life insurance to clients in the United States, its territories, the District of Columbia and Canada. Term life insurance provides a guaranteed death benefit if the insured dies during the fixed coverage period of an in-force policy, thereby providing financial protection for his or her named beneficiaries in return for the periodic payment of premiums. By buying term life insurance rather than cash value life insurance, a policyholder initially pays a lower premium and, as a result, would have funds available to invest for retirement and other needs.
The Company offers term life insurance products with coverage periods that range from 10 to 35 years and a range of coverage face amounts. Additionally, certain term life insurance policies may be customized through the addition of riders to provide coverage for specific protection needs, such as mortgage and college expense protection. Premiums are guaranteed for policies issued in the United States for the initial term period, up to a maximum of 20 years. The Company offers TermNow, a term life insurance product. Its claims fall into three categories: death, waiver of premium (applicable to disabled policyholders who purchased a rider pursuant to which Primerica agrees to waive remaining life insurance premiums during a qualifying disability), or terminal illness. Through its claims administration system, it records, processes and pays the appropriate benefit for any reported claim. Its claims system is used by its home office investigators to order medical and investigative reports from third-party providers, calculate amounts due to the beneficiary (including interest), and report payments to the appropriate reinsurance companies.
Primerica Life, a Massachusetts domestic insurer, regularly consults the Social Security Administration's Death Master File (Death Master File) in accordance with applicable state requirements. NBLIC, a New York domestic insurer, regularly consults the Death Master File in accordance with New York State insurance requirements. These processes help identify potential deceased policyholders for whom claims have not been presented in the normal course of business. If unreported deaths are identified, Primerica Life and NBLIC attempt to determine if a valid claim exists, to locate beneficiaries, and to pay benefits accordingly.
Investment and Savings Products
The Company's products comprise basic saving and investment vehicles that seek to meet the needs of clients in all stages of life. Through PFS, PFS Investments, Primerica Life Canada, PFSL Investments Canada and the Company's licensed sales representatives, it distributes and sells to its clients mutual funds, managed investments, variable and fixed annuities, fixed indexed annuities and segregated funds. In the United States, the Company's licensed sales representatives distribute mutual funds from the select asset management firms, including American Century Investments, American Funds, Franklin Templeton, Invesco, Legg Mason and Pioneer. These firms have product offerings, including domestic and international equity, fixed income and money market funds.
In Canada, the Company sales representatives offer Primerica-branded Concert Series funds. The Company's Concert Series of funds consist of six different asset allocation funds with varying investment objectives ranging from fixed income to aggressive growth. Each Concert Series fund is a fund of funds that allocates fund assets among equity and income mutual funds of AGF Investments, an asset management firm in Canada. The asset allocation within each Concert Series fund is determined on a contract basis by Morneau Shepell Asset and Risk Management Ltd.
PFS Investments is a registered investment advisor in the United States, and it offers a managed investments program under a contract with Lockwood Advisors, a registered investment advisor and unit of Bank of New York Mellon. The offering consists of a mutual fund advisory program. Lockwood Advisors participates in the design and assists in the ongoing administration of the program, including the investment of client assets on a discretionary basis into one or more asset allocation portfolios. The Company's United States licensed sales representatives also distribute variable annuities underwritten and provided by Lincoln National Life Insurance Company and its affiliates (Lincoln National), AXA Distributors, LLC, American General Life Insurance Company (AIG) and its affiliates, and MetLife Investors and its affiliates. Variable annuities are insurance products that enable its clients to invest in accounts with attributes similar to mutual funds, but also have benefits not found in mutual funds, including death benefits that protect beneficiaries from losses due to a market downturn and income benefits that guarantee future income payments for the life of the policyholder(s). These companies bear the insurance risk on the variable annuities that it distributes. The Company has an additional variable annuity product issued by AIG.
In Canada, the Company offers segregated fund products, which are branded as Common Sense Funds that have some of the characteristics of its variable annuity products distributed in the United States. Its Common Sense Funds are underwritten by Primerica Life Canada and offer its clients the ability to participate in a managed investments program. There are two fund products within its segregated funds offerings: the Asset Builder Funds and the Strategic Retirement Income Funds (SRIF). The investment objective of Asset Builder Funds is long-term capital appreciation combined with some guarantee of principal. The portfolio consists of both equities and bonds with the equity component consisting of a pool of large cap Canadian equities and the bond component consisting of Canadian federal government zero coupon treasuries and government-backed floating rate notes. The investment objective of the SRIF is to provide income during retirement plus the opportunity for modest capital appreciation. The SRIF invests in a maximum of 25% equities with the balance in fixed income securities. All accounts in this Fund are held as Registered Retirement Income Funds, which carry government mandated minimum annual withdrawals. Many of its Canadian clients invest in segregated funds through a registered retirement savings plan (RRSP). Its Common Sense Funds are managed by AGF Funds, investment management firm and a provider of its mutual fund products.
The Company offers fixed indexed annuity products in the United States through Lincoln National, AIG and Universal Life Insurance Company (Universal Life) (Puerto Rico). The Company sells fixed annuities underwritten by MetLife Investors USA Insurance Company and its affiliates in the United States. Its offering includes a fixed premium deferred annuity and a single premium immediate annuity. The fixed premium deferred annuity allows its clients to accumulate savings on a tax deferred basis with safety of principal and a guaranteed rate of return. The single premium immediate annuity provides clients with an immediate income alternative. In Puerto Rico, the Company offers two annuity products: a fixed annuity and a fixed bonus annuity underwritten by Universal Life Insurance Company (Universal Life).
In the United States, the Company earns revenue from investment and savings products business in three ways: commissions and payments earned on the sale of such products; fees and payments earned based upon client asset values, and account-based revenue. On the sale of mutual funds and annuities, it earns a dealer reallowance or commission on new purchases, as well as trail commissions on the assets held in its clients' accounts. It also receives marketing and support fees from most of its fund providers. These payments are a percentage of sales or a percentage of the clients' total asset values, or a combination of both. For managed investments, it receives an asset-based fee as compensation for asset management services, recordkeeping services, and marketing and support services. The Company performs custodial services and receives fees on a per-account basis for serving as a non-bank custodian for certain of its clients' retirement plan accounts for certain of the funds offered in the United States. It also performs recordkeeping services for some of its select United States fund companies and receives compensation on a per-account basis for these services.
In Canada, the Company offers investment and savings products in two ways: commissions (or dealer reallowance) on mutual fund sales and fees paid based upon clients' asset values (mutual fund trail commissions and asset management fees from segregated funds and Concert Series funds). On segregated funds, it also earns deferred sales charges for early withdrawals at an annual declining rate within seven years of an investor's original contribution.
Other Distributed Products
The Company offers other products, including prepaid legal services, auto and homeowners' insurance referrals, credit information services, long-term care insurance, health insurance and debt resolution referrals. In Canada, the Company offers mortgage loan referrals and insurance offerings for small businesses. While many of these products are Primerica-branded, all of them are underwritten or otherwise provided by a third-party. The Company offers its United States and Canadian clients a Primerica-branded prepaid legal services program on a subscription basis that is underwritten and provided by Pre-paid Legal Services, Inc. The prepaid legal services program offers a network of attorneys in each state, province or territory to assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense and motor vehicle-related matters. It receives a commission based on its sales of these subscriptions.
Primerica offers credit information products in the United States and Canada. Credit information products allow clients to access their credit score and other personal credit information. Clients also have the capability of creating a plan for paying off debts with information from their credit file. Its credit information products are co-branded with and supported by a subsidiary of Equifax Inc. In Canada, the Company has a referral program for mortgage loan products offered by a third-party lender, B2B Bank. In Canada, it offers insurance products, including supplemental medical and dental, accidental death, and disability, to small businesses. These insurance products are underwritten and provided by The Edge Benefits Inc. and its affiliates.
The Company competes with A.M. Best Company.
1 Primerica Pkwy
The company trades on NYSE exchange. The company headquarter is located in Georgia, GA. The company was established in the 1927.| Ticker | PRI |
| Long Name | Primerica, Inc. |
| Short Name | Primerica |