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Citigroup To Sell Primerica As An IPO With A Value of $1.6 Billion
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Offerings
Posted on 11/06/09 at 6:24pm by Ted Friedman
Analyst see Primerica, the Insurance arm of Citigroup (NYSE: C), to have a starting value of $1.6 billion. This comes after Citigroup announce that they were taking one of their founding businesses public next year within the first quarter. They hope to generate around $100 million in the offering to alleviate their crippling debt, which includes a $45 billion bailout from the government. Furthermore, Citigroup CEO, Vikram Pandit has expressed that in January, he would be selling, restructuring or winding down eight more businesses.
Citigroup will continue to receive income from Primerica through reinsurance arrangements for term life insurance policies in place as of December 31. Primerica is run by co-CEOs John Addison and Rick Williams.
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Well, you got it partially
by ali on 11/06/09 8:30pm
Well, you got it partially correct. Yes, C will continue to receive an income stream, BUT THEY WILL ALSO SHARE IN THE INSURANCE LIABILITY/RISK OF POLICIES UNDERWRITTEN.
Only C can "sell" a business and still not get it off its books. The real reason they are going the IPO route is that no investor group or company was willing to purchase this turkey of a business.
Way to go C !!!! Good old Pandit & Parsons are running you straight into the ground.
That turkey of a business
by Melton W on 11/08/09 3:06am
That turkey of a business profited half a billion last year and carries a zero debt balance.
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