Amid Hartford Split, Woodbury’s 1,600 Reps Face Tough Choice
|By Diana Britton|
|Penton Business Media|
Insurance giant The
The longer it takes for The
Papike has heard that some advisors are getting eight to 15 recruiter calls a day following the announcement. Still, Papike doesn’t expect a lot of movement from advisors initially. Most people will likely take a wait-and-see approach.
Who Could Be Woodbury’s New Parent?
Potential candidates to buy
“One thing’s for sure, it’s not going to be an insurance company,” because many of them have been shedding their b/d subsidiaries, said Philip Palaveev, president of Fusion Advisor Network.
But Henschen believes
Whoever ends up buying
The Decision to Sell
"The annuities business has some huge downstream risk if you're promising people 6,7 percent guaranteed returns and the markets right now are giving you less than 1 on fixed income," Welsh says. "They may have looked at the long-term profitability and said, 'We have a bill that's going to come due when these baby boomers all retire and start to annuitize these products.'"
A lot of these insurance firms had their doubts when they bought broker/dealers to begin with, said Fusion’s Palaveev. But margins have fallen and many are afraid of the massive liabilities that have caused problems for other firms, such as SecuritiesAmerica. They might as well get out of the business while they can get a high price and still have no huge liabilities, he said.
At the same time,
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