Primerica
July 16, 2024
DULUTH, Ga., July 16, 2024 --
Primerica said its board decided to exit the senior health business by giving up ownership of e-TeleQuote Insurance, the Medicare-focused distributor it acquired in July 2021. The company said the unit had no clear path to profitability within an acceptable timeframe as the senior health market deteriorated and regulation grew more uncertain.
Primerica plans to give up all rights in e-TeleQuote without receiving any payment no later than September 30, 2024, after e-TeleQuote sells up to 19 percent of its stock to a new outside investor. In the second quarter it will record a net non-cash after-tax charge of 229.6 million dollars, reflecting the write-off of 253.6 million dollars of remaining goodwill and intangibles, partly offset by a 24.0 million dollar tax benefit.
Chief Executive Glenn Williams said the sector's structural changes since the acquisition drove the decision. The company said it has no plans to cut staff at e-TeleQuote during the transition, and Medicare clients served by e-TeleQuote agents will not be affected.