Primerica to exit senior health business

Primerica is exiting its senior health business by relinquishing ownership of e-Telequote Insurance, the Medicare broker it acquired in 2021 for $515 million.

Primerica stated that e-TeleQuote does not have a clear path toward anticipated profitability within an acceptable timeframe in the “increasingly challenging senior health distribution market.” In addition, the industry is facing an uncertain regulatory environment that could adversely impact the business.

Primerica reported losses for the Medicare broker for the past three years.

With the assistance of a third-party consultant specializing in turn-around and restructuring transactions, Primerica determined that relinquishing its ownership of e-TeleQuote is the most expeditious way to exit its senior health business while maximizing Primerica’s residual stockholder value. Primerica expects to terminate its rights to e-TeleQuote no later than September 30, 2024. On or prior to such time, e-TeleQuote expects to issue shares of its common stock to a third party who has not yet been identified. It is expected that such third party, which may consist of one or more entities, will ultimately own e-TeleQuote when Primerica terminates its rights.

“Various options for exiting the senior health market were carefully considered and, among other things, the significant structural changes the sector has undergone since e-TeleQuote’s acquisition drove the decision. We will continue to support client relationships with no plans to decrease staffing levels at e-TeleQuote during the transition.” – Glenn Williams, CEO of Primerica.