The FINANCIAL -- Citi (NYSE: C) announced on November 5 that its subsidiary, Primerica, Inc. ("Primerica"), has filed a registration statement with the U.S. Securities and Exchange Commission for an initial public offering.

Primerica, a leading distributor of financial products to middle income households in North America, has approximately 100,000 licensed sales representatives who assist clients in meeting their needs for term life insurance, which Primerica underwrites, as well as mutual funds, variable annuities, loans and other financial products.

"Today's announcement represents an important step in simplifying our organization and demonstrates our continued success in finding solutions for Citi Holdings, our non-core businesses. We believe this is the best separation alternative for this franchise," said Michael Corbat, Chief Executive Officer of Citi Holdings.

Primerica co-Chief Executive Officer John Addison said, "This is an important step in our company's history, and we look forward to completing the offering and becoming a public company." Rick Williams, Primerica co-Chief Executive Officer, said, "Becoming a public company is an opportunity to align the interests of our independent sales force and our employees with our future performance."

Through reinsurance arrangements with Primerica, covering term life insurance policies in place as of December 31, 2009, Citi will continue to receive a significant stream of income from the Primerica business. Primerica will continue to administer the policies under this arrangement, and the policies will continue to retain the underlying reserve and capital strength that Primerica and Citi currently provide.

After completion of this offering, Citi intends to divest its remaining interest in Primerica as soon as is practicable, subject to market and other conditions. All of the shares to be sold in the offering will be sold by Citi, and Citi will receive all of the proceeds from this initial public offering.

Citigroup Global Markets Inc. will act as sole book-running manager for the proposed offering.

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