Citigroup to sell off their MLM division, Primerica, in IPO

by louabbott on November 7, 2009

 
Few people are aware that Citigroup came into being because of their network marketing or MLM company, Primerica Financial Services.  Because the federal government now owns 1/3 of Citigroup, they are doing an IPO to sell off the very successful Primerica operations to raise what is expected to be more than $100 million in capital:

… Citigroup has filed a public offering for its Primerica Financial Services …

Primerica certainly has an interesting history. Back in 1977, an aggressive financial service executive, Arthur Williams, started the company, with the focus on providing term insurance to consumers as well as mutual fund products. However, he had an interesting twist on distribution: he used network marketing. Basically, a Primerica agent would get incentives by recruiting new agents. As a result, the company’s growth exploded.

This caught the interest of Sandy Weill, who had ambitions of building an empire of his own. So, in the late 1980s, he purchased Primerica, which ultimately became the foundation for Citigroup. In fact, despite all the upheaval in the markets, Primerica continues to be a solid company. In all, there are about 100,000 sales agents.

What’s more, for the first half of this year, revenues came to $1.09 billion, with net income of $244.7 million…

Full article at BloggingStocks.com

Also, see Primerica, Facts, News, and Reviews

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{ 1 comment… read it below or add one }

james December 2, 2009 at 11:26 am Thumb up 0 Thumb down 0

I had no idea! A fascinating article. Thank You.

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