Primerica to exit senior health business, taking $229.6 million after-tax charge
Primerica's board decided to exit its senior health business by abandoning its indirect ownership of e-TeleQuote Insurance, Inc. (ETQ) no later than September 30, 2024, without receiving consideration. The company will record a net non-cash after-tax charge of $229.6 million in the second quarter of 2024, and says it expects further restructuring charges in the third quarter, which matters to shareholders because it reduces reported results.
- Net non-cash after-tax charge of $229.6 million in Q2 2024, including a $253.6 million write-off of goodwill and intangibles, partly offset by a $24.0 million net tax impact.
- ETQ's ownership will be abandoned by no later than September 30, 2024, with no consideration received.
- ETQ plans to sell newly issued shares of up to 19% of its common stock to a new minority investor; bids are due by 5:00 pm EST on July 31, 2024.
- $50.0 million in insurance proceeds will be recognized in Q2 2024 and excluded from adjusted operating results.