Sticking to its Core

Sticking to its Core
PRIMERICA SHOWS THAT WHILE EVOLUTION IS
NECESSARY, STANDING ON CORE PRINCIPLES IS JUST
AS ESSENTIAL TO ITS SUCCESS.
>PRIMERICA INC.
// Founded in 1977, Primerica became its own entity
in April 2010, and continues to focus on the middleincome families
BY JAMIE MORGAN
Primerica has long been a household
name as a provider of financial services
for middle-income Americans. As of
April 2010, the company took its name
public as ticker symbol “PRI” on the New
York Stock Exchange (NYSE). The former Citigroup Inc. subsidiary made the
bold decision to proceed with an IPO during a time when many companies were
less concerned with growth and more
preoccupied with simply staying afloat.
“Citigroup clearly was executing a
strategy to focus more on its core banking
business.” explains John Addison, coCEO of Primerica.
“Therefore, a strategic decision was
made by us and Citigroup that Primerica,
which is not in the banking business, did
not fit into that model. Becoming our own
company has not been easy, but it was the
right course and the right direction for
our business.”
-----------------------------------------------[ P R O F I L E ]
Primerica Inc.
www.primerica.com
2010 revenue: $1.4 billion
Licensed representatives: More than 90,000
Headquarters: Duluth, Ga.
Specialty: Financial services marketing
Employees: 2,000
-------------------------------------------------------------MANAGEMENTTODAY-MAGAZINE.COM SUMMER 2011
“We are much more Main Street than Wall Street. And that’s the kind of people we want to attract.
People with ordinary backgrounds that have extraordinary dreams.” -John Addison, co-CEO
The IPO was a four-year process that
re-founding of Primerica.
ness around its term life insurance main-
culminated on April 1, 2010, with Addi-
“Over our 34-year history, the world
son and Co-CEO Rick Williams ringing
has changed a great deal, as has our in-
Term and Invest the Difference.” Accord-
the NYSE closing bell, under the new
dustry,” he continues. “The advance-
ing to Addison, there is less life insurance
Primerica logo and its tagline, “Freedom
ments in technology over that time and
sold today than in 1975 and many people
Lives Here.”
its impact on our business is mind-bog-
are not covered at all or have inadequate
gling. And while we continue to adapt and
coverage through employers. However,
tutional investors in five countries. Of
move forward as a company, our core
Primerica, which paid out close to $1 bil-
those 200 potential investors, 96 percent
principles have not changed. The founda-
lion in death claims in 2010 alone, offers
chose to invest in Primerica, including
tion of our business is building a distribu-
an average face amount of more than
eight of the 10 largest mutual funds in
tion force and giving motivated people a
$280,000 of term life insurance protec-
North America,” Addison recalls.
unique business opportunity both part-
tion per customer.
“In March 2010, we met with 200 insti-
stay under its now familiar slogan “Buy
“April 1 was one of the most exciting
time and full-time, who deliver financial
In addition to its core life insurance
and gratifying days in my career. For our
products to middle-income families. We
products, the company also offers a range
more than 2,000 employees and 95,000
are a Main Street company that delivers
of other complementary products — all
representatives, it signaled not the end of
for Main Street families.”
designed to provide greater financial se-
a process, but the dawn of a new era – the
Since 1977, Primerica has built a busi-
curity for families.
SUMMER 2011 MANAGEMENTTODAY-MAGAZINE.COM
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R E TA I L & D I S T R I B U T I O N
These include:
fad products, Primerica comes alongside
‘I Found a Home’
• Debt consolidation loans
its customers to deliver real financial so-
Addison began his career with Primerica
• Primerica DebtWatchers™
lutions. For instance, Primerica offers a
in 1982 when it was still a start-up. “I an-
• Mutual fund investments
Financial Needs Analysis (FNA) that is
swered a want ad in the Atlanta paper,
• An auto and homeowner’s insurance re-
“complimentary, confidential and cus-
and I found a home,” he says.
ferral program
tomized” for each Primerica client. The
It’s a home where he has worked tire-
• Variable annuities
company says it applies to anyone with
lessly to excel, driven by a sense of mis-
• Long-term care insurance
children or debt or anyone who plans to
sion that Primerica did “what’s right” for
• Pre-paid legal services
retire or lacks a strategy for financial in-
average and ordinary people. Addison
dependence, which covers just about any-
came to the company as a business sys-
cornerstone and core of our business, but
one. “We build our products for the
tems analyst, and as it goes with small
it is also critical to help people learn how
underserved middle income market,” Ad-
companies, he was able to gain valuable
to develop meaningful savings plans,” Ad-
dison says. “We’ll go to see someone who
experience in nearly every department
dison says. “The combination of those
makes $60,000 not just $600,000.”
and served at every level in his eventual
“Term-life insurance will always be the
things offers a tremendous upside opportunity for the people who are introduced
to our products because not only are most
middle-income families not protected
adequately with life insurance, they also
lack meaningful savings and investment
programs. Primerica’s ability to deliver
greater financial security and an outstanding business opportunity at the
same time provides us with a distinct
competitive edge.”
Addison is referring to the middle-income bracket – a group ignored by many
financial institutions that target the very
wealthy. It’s a unique model within the financial services industry that has been in
place since Primerica was founded by
Arthur L. Williams. Addison says it’s ever
more crucial during a nationwide state of
financial uncertainty. “People right now
are more stressed in this economy than at
any other time that I can remember in my
business career,” he says. “In order to
help more families achieve greater financial security, we are working harder than
ever to improve our products, our technology, our client service and of course,
our business opportunity.”
Instead of peddling the latest financial
MANAGEMENTTODAY-MAGAZINE.COM SUMMER 2011
// Primerica’s 2007 convention at the Georgia Dome
drew more than 50,000 Primerica representatives
from across North America.
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R E TA I L & D I S T R I B U T I O N
route to president and finally, as co-CEO.
“The three rings in our new logo represent three key parties to our past and future success: one ring stands for our sales
force, the other two represent our clients
and the company,” Addison says. “Art
Williams, who founded Primerica 34
years ago, worked to build opportunities
for people who come from ordinary backgrounds to grow, and to this day, this
seemingly simple concept remains one of
“PEOPLE RIGHT NOW
ARE MORE STRESSED
IN THIS ECONOMY
THAN AT ANY OTHER
TIME THAT I CAN
REMEMBER IN MY
BUSINESS CAREER.”
the cornerstones of our business.”
“We are much more Main Street than
Wall Street,” he says. “And that’s the kind
of people we want to attract – people with
ordinary backgrounds that have extraordinary dreams.”
Aligning Forces
Primerica’s IPO solidified this belief. The
company’s venture into the public realm
has opened up more opportunities for its
independent Regional Vice Presidents
and other reps to become significant
For representatives in the field, this
rate employees, it means there is a finan-
shareholders in company stock. “Provid-
means an opportunity to build a career or
cial services company that doesn’t shun
ing a meaningful stake for our sales force
earn extra income on the terms of each
those without Ivy League degrees – in-
has created a unique ownership structure
individual. For the clients, it equates to a
stead Addison says the company looks for
in the financial services industry,” the
stable financial resource. For the corpo-
sharp, hardworking people.
company says. “We are proud of our eq-
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R E TA I L & D I S T R I B U T I O N
uity incentive programs which help build
both short- and long-term alignment for
all of our stakeholders.
“Most importantly, the sales forces’ reaction to becoming a public company exceeded our expectations.”
Primerica has more than 20,000 field
leaders who have been with Primerica for
at least 10 years, and 7,000 of those leaders have been with the company for at
least 20 years. In 2010’s fourth quarter,
the company announced a four percent
recruiting increase compared to the same
period in 2009. Addison says Primerica is
continually focused on its distribution
channel in a way that is beneficial not
only for the corporation but also its sales
force, as it is an integral part of Primerica’s success.
He also explains that having the right
sales representatives and employees
// Co-CEOs John Addison (left) and Rick Williams cele-
must be combined with the leaders who
brated Primerica’s IPO on April 1, 2010, when they
set the tone. In his view, as leader, he
rang the NYSE closing bell.
must be a steward of the agents, employ-
JUST CALL ME JOHN
With any leadership position there is, at times, a temptation to take advantage of the title.
>MORE
ees and clients who depend on Primerica
for their livelihood, not just a person
seeking individual gain.
In his earlier years with the company,
Which is why co-CEO of Primerica John Addison makes sure to put the people of Primerica
after its founder, Mr. Williams, left
first. “I believe when you’re in a leadership position over a company that it’s not about you
Primerica, Addison would take stands
and your career,” he says. “Many times I see leaders of companies more interested in them-
against leadership when he felt Primerica
selves as a CEO than of the people betting their lives on the company.”
was being pushed in a direction that
Addison came to Primerica in 1982 as a business systems analyst. Before becoming coCEO in 1999, he served as vice-president and senior vice president of Primerica Life. He also
didn’t reflect its business model.
“I was the kind of person who stood up
served as executive vice president and group executive vice-president of marketing and
sometimes and put myself in a little bit of
president of Primerica Financial. In each position his goal was to be a steward of the company
an unpopular position on what the com-
accessible and hardworking with a servants attitude. “I don’t want people calling me Mr.
pany needed to do,” he explains.
Addison — I’m John,” he says. “The leader has to be the hardest working, the most committed,
“Management may have wanted to go
the most involved; not a person who comes in, stares at reports and goes to play golf. There’s
in one direction, but if I knew that wasn’t
a difference between leaders and managers. Leaders set the tone for the organization.”
the right direction for the company I took
a stand.” •mt
Published by Business Media Publications Tel: 312.447.5800 Fax: 312.236.4266
On behalf of Primerica Inc. © 2011 Business Media Publications. All rights reserved.