It has been some time in the making and won’t be the last IPO or divestiture out of Citigroup Inc. (NYSE: C).  The company is proceeding to divest its Primerica Inc. via an initial public offering.

Some fail to see a strategic fit in the supermarket model as this company sell term-life insurance and other investment products, ultimately acting as a referral mechanism for Citi loans and other services.

We have long had Primerica as a divestiture candidate, although the IPO is being taken as the exit rather than a cheap quick sale.  Vikram Pandit wants to focus the plan of the copany and is taking action to sell off what is not a part of the long-term goals.  Citi will exits its remaining stake in Primerica after the IPO is completed.

This has nothing to do with the Morgan Stanley venture for Smith Barney, nor does it have to do with the international assets which have been and will continue to be sold of and divested.   Citi itself was the only listed underwriter for the company, although that may change as the IPO gets nearer.

Of course the terms are not disclosed, nor is what the stake will be in the company held after the IPO.  The filing noted “up to $100 million of stock,” but those figures are often grossly changed.

Primerica is profitable as its first half of 2009 earnings was reported as $244.7 million . with revenues of $1.09 billion.  That is lower than a year ago period of $269.1 million in earnings on $1.19 billion in revenue, but that is par for the course in about all financial companies these days.

The full filing details are here from Primerica.

JON C. OGG

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