Top 5 Shareholders of Primerica (PRI)

Reviewed by Michael J BoyleFact checked by Vikki VelasquezReviewed by Michael J BoyleFact checked by Vikki Velasquez

Primerica (PRI) is a financial services company based in Duluth, Georgia. Primerica’s former parent company was Citigroup. The company was spun off through an initial public offering (IPO) on April 1, 2010.

The company describes itself as a leading distributor of financial products to middle-income households. Primerica primarily sells term life insurance plans, but it also sells mutual funds, annuities, segregated funds, managed accounts, long-term care insurance, pre-paid legal services, auto insurance, home insurance, identity theft protection, and smart home automation.

As of March 31, 2024, the five largest shareholders of Primerica stock are Vanguard Group, Kayne Anderson Rudnick Investment Management, BlackRock, FMR, and Brave Warrior Advisors..

Key Takeaways

• Primerica provides insurance for about 5.7 million people and manages more than 2.9 million client investment accounts.
• The company recorded a 3% increase in revenue to reach $3.31 billion, while profits also grew.
• The top 5 shareholders of Primerica are Vanguard Group, Kayne Anderson Rudnick Investment Management, BlackRock, FMR, LLC (Fidelity Investments), and Brave Warrior Advisors.

Overview of Primerica

Primerica was founded as A.L. Williams & Associates (A.L. Williams) in 1977 by Arthur L. Williams Jr. The company’s initial sales pitch to its mostly middle-income client base was to “buy term and invest the difference.”

This concept was meant to illustrate how its client base could purchase sufficient protection with term life insurance, while also saving and investing in separate investment vehicles, such as mutual fund individual retirement accounts (IRAs).

Primerica provides life insurance for approximately 5.7 million people and manages more than 2.9 million client investment accounts. Primerica was the number two provider of term life insurance coverage in North America in 2023.

In 2023, the company reported $3.31 billion in revenue, up 3% from 2022. Net income climbed 23%, to reach $576.6 million, in 2023.

Multilevel Marketing Model

Primerica recruits people to sell their policies by encouraging new insurance agents to sell policies to family members, friends, and co-workers and then recruit them to join the business. Agents who work for Primerica make money by selling policies based on the number of agents they recruit. For this reason, Primerica is considered a multilevel marketing business.

Top Shareholders of Primerica

Shareholdings obtained from Yahoo! Finance and are as of March 31, 2024.

Vanguard Group Inc.

The Vanguard Group is the largest shareholder of Primerica, with approximately 3.64 million shares. This is a 10.58% stake in the company, valued at approximately $804.72 million.

The Vanguard Group is a registered investment advisor firm based in Malvern, Pennsylvania. The company had approximately $7.8 trillion in assets under management (AUM) as of Sept. 30, 2023.

Kayne Anderson Rudnick Investment Management LLC

Kayne Anderson Rudnick Investment Management is the second-largest shareholder of Primerica, with approximately 3.63 million shares. This is a 10.56% stake in the company, valued at approximately $803.80 million.

Kayne Anderson Rudnick Investments invests in equity portfolios of companies that have strong, consistent growth with low business and financial risk. The company offers actively managed equity and fixed-income strategies primarily to high-net-worth individuals and institutional clients, including endowments, foundations, corporations, public funds, and pension plans.

BlackRock Inc.

BlackRock is the third-largest shareholder of Primerica, with approximately 3.24 million shares. This is a 9.43% stake in the company, valued at approximately $717.49 million.

BlackRock is an American global investment management corporation based in New York City. BlackRock is one of the world’s largest asset managers, with $10 trillion in AUM at the end of 2023.

FMR, LLC (Fidelity Investments Inc.)

FMR, LLC, better known as Fidelity Investments Inc., is the fourth-largest shareholder of Primerica, with approximately 3.13 million shares. This is an 9.10% stake in the company, valued at approximately $692.76 million.

Fidelity is an American multinational financial services corporation based in Boston, Massachusetts. Fidelity is one of the largest asset managers in the world, with $13.7 trillion in assets under management as of March 31, 2024.

Brave Warrior Advisors, LLC

Brave Warrior Advisors, LLC is the fifth-largest shareholder of Primerica, with approximately 2.02 million shares. This is a 5.86% stake in the company, valued at approximately $445.59 million.

Brave Warrior Advisors is a financial advisory firm based in New York City that manages $5.24 billion in assets. Individual investors make up the majority of their client base at 85.7% of total clients. The remainder consists of corporations.

The firm offers portfolio management for individuals, small businesses, pooled investment vehicles, institutional clients, and other investment companies. The firm is led by Glenn Greenberg, and its top holdings include Elevance Health, Fidelity National Financial, Primerica, and Apollo Global Management.

Is Primerica a Legitimate Business?

Yes, Primerica is a legitimate business. It utilizes a multilevel marketing strategy, which in some cases has been viewed to be less than trustworthy; however, Primerica is a long-standing American company that trades on the stock market, has prominent shareholders, generates profits, and receives high, trusted ratings.

What Exactly Does Primerica Do?

Through licensed representatives, Primerica sells financial products, such as life insurance and mutual funds, provides financial education, and a Personal Financial Needs Analysis to individuals.

How Do Primerica Agents Get Paid?

Primerica agents earn a commission on the financial products they sell to clients. They also earn commissions on the sales of those individuals they recruit and train.

The Bottom Line

Primerica sells financial products, primarily insurance, to middle-income families, via multilevel marketing strategies. It is a large, profitable company that attracts a variety of investors, the largest of which are prominent companies in the financial sector, such as Vanguard and BlackRock.

Read the original article on Investopedia.