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Cetera Money Group agreed to receive the retail wealth administration organization of Securian Financial Group, the most recent transfer by an insurance company to phase absent from a connected but diverse market.
Cetera, the Los Angeles-primarily based unbiased prosperity manager with the backing of private fairness investor Genstar Capital, reached a offer on Jan. 25 to acquire particular belongings similar to St. Paul, Minnesota-dependent Securian’s brokerage, registered expense advisory business and insurance company, acknowledged as Securian Fiscal Companies. The offer also covers Securian Have faith in Business. The seller’s prosperity company is composed of much more than 1,000 financial advisors handling $47.4 billion in client belongings and $24.8 billion in advisory property throughout 30 impartial places of work.
Money phrases of the offer — which follows quite a few transactions in modern many years taking massive insurance plan firms out of an market progressively known for tricky polices and very low margins for them — were not disclosed.
In 2019, Cetera acquired the U.S. prosperity company of Foresters Economic, and it picked up particular assets similar to the impartial economic preparing channel of Voya Economic Advisors two yrs later. Securian’s life insurance coverage business spans $1.4 trillion in-force guidelines, but its prosperity administration arm has misplaced many of its major economical advisor groups because 2019.
In addition to the assets modifying arms concerning Cetera and Securian, the two companies struck “a wide strategic partnership arrangement” that includes a distribution offer for Cetera’s advisors to promote Securian’s individual lifestyle and annuity goods, according to a press launch.
Cetera sees “untapped growth possible” for advisors established to be part of the 8,000-advisor organization from Securian below the offer, CEO Adam Antoniades claimed in a statement.
“We have very long admired Securian Financial’s commitment to their controlling companions, their highly effective independent working product and committed neighborhood of unbiased fiscal industry experts,” Antoniades said. “Our companies share quite a few typical values, which includes a objective-driven, assistance-very first frame of mind that is grounded in our mission to assist economic professionals and fiscal establishments develop.”
Final month, Securian sold its retirement recordkeeping business enterprise with $17 billion in 401(k) property less than administration to Standard Coverage Enterprise for an undisclosed volume. Cetera pledged to present work in the long term to Securian’s management group and qualified personnel members from its prosperity and believe in enterprise subsequent the anticipated close in the 3rd quarter.
“This transaction lets Securian Fiscal to improve our strategic focus and accelerate expansion in our priority markets, even though at the similar time continue our commitment to the retail wealth company by our strategic partnership with Cetera,” Securian CEO Chris Hilger mentioned in a assertion. “Cetera delivers on all significant aspects of our acquisition spouse choice conditions, together with local community concentration, differentiating scale and marketplace-main technology selection and product platforms.”
Securian is the No. 15 independent brokerage on Money Planning’s annual IBD Elite ranking of the premier firms in the channel with $460.5 million in annual earnings. At the close of 2021, it shown 1,114 advisors and $53.2 billion in consumer assets. At minimum 5 of the branch administrators the agency refers to as “taking care of associates” remaining Securian in 2022, adding on to the four it misplaced in the prior 3 decades. The firm’s ranks of running companions have fallen to 30 independent places of work talked about in the push release from as many as 40 or 50 ahead of the pandemic.
“I couldn’t be happier with my timing,” mentioned one advisor who left the company in the previous couple of several years but asked to be quoted anonymously out of worry of possible litigation or other reprisals from the agency. The advisor “observed the composing on the wall,” they stated, bringing up very similar offers this kind of as MassMutual’s acquisition of MetLife’s retail prosperity arm in 2016 for $165 million.
“I have a several mates in the market who have been about for a longer time than I have. They explained that they listened to whispers of this as much again as two decades in the past,” the advisor mentioned. “It appeared like Securian was reading from the specific same playbook as MetLife more than the past two decades.”
Incoming teams from Securian will technically be a part of Cetera’s biggest brokerage, Cetera Advisor Networks, even though having on a new manufacturer title as the Cetera Wealth Administration Team.
Cetera has about 8,000 money advisors across four diverse brokerages, such as an existing a single that folded into Cetera Advisors final calendar year, First Allied Securities. With yearly profits of $2.47 billion, Cetera is the No. 5 business in the unbiased brokerage channel guiding only Raymond James Monetary Providers, Advisor Group, Ameriprise and LPL Fiscal.