Primerica Intends To Exit Senior Health Business By Relinquishing Ownership Of E-TeleQuote Insurance
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.