Symetra to sell its broker-dealer to John Hancock

SEP 11, 2013
Another insurance company is exiting the independent-broker-dealer business. Symetra Financial Corp. said last week that it intends to sell its broker-dealer to John Hancock Financial Services Inc., a unit of Manulife Financial Corp.

AFFILIATED WITH SIGNATOR

Symetra Investment Services Inc., which has about 280 registered representatives, will become affiliated with the John Hancock Financial Network's Signator Investors Inc., which has 1,600 reps and financial advisers. Terms of the deal, which is expected to close in three to six months, weren't disclosed. “Given Symetra's current product lineup, [Symetra Investment Services] is no longer a good strategic fit for us as a distribution channel,” Tom Mara, chief executive of Symetra Financial, the parent company, said in a statement. Insurance companies have been dumping independent broker-dealers since the credit crisis, afraid of the expense and the risk associated with the securities industry. Slumping variable annuity sales also have soured insurance companies on owning distribution networks such as independent broker-dealers. In April, Cetera Financial Group said that it was buying two broker-dealers owned by MetLife Inc., which this year has scaled back its adviser sales force dramatically. Last year, The Hartford Financial Services Group Inc. struck a deal to sell Woodbury Financial Services Inc. to global insurer American International Group Inc.

SALES ABOUND

Also, insurer Western & Southern Financial Group is selling the assets of its independent broker-dealer, Capital Analysts Inc., to Lincoln Investment Planning Inc., and insurer Genworth Financial Inc. has sold its independent-broker-dealer subsidiary, Genworth Financial Securities Corp., to Cetera Financial Group for $78.5 million, plus an earn-out provision.

Latest News

LPL building out alts, banking services to chase wirehouse advisors, new CEO says
LPL building out alts, banking services to chase wirehouse advisors, new CEO says

New chief executive Rich Steinmeier replaced Dan Arnold on October 1.

Franklin Templeton CEO vows to "do what's right" amid record outflows
Franklin Templeton CEO vows to "do what's right" amid record outflows

The global firm is navigating a crisis of confidence as an SEC and DOJ probe into its Western Asset Management business sparked a historic $37B exodus.

For asset managers, easy experience is key to winning advisors' businesses
For asset managers, easy experience is key to winning advisors' businesses

Beyond returns, asset managers have to elevate their relationship with digital applications and a multichannel strategy, says JD Power.

Why retaining HNW clients ultimately comes down to one basic thing
Why retaining HNW clients ultimately comes down to one basic thing

New survey finds varied levels of loyalty to advisors by generation.

Stocks drop as investors digest Microsoft, Meta earnings
Stocks drop as investors digest Microsoft, Meta earnings

Busy day for results, key data give markets concerns.

SPONSORED Out with the old and in with the new: a 50% private markets portfolio

A great man died recently, but this did not make headlines. In fact, it barely even made the news. Maybe it’s because many have already mourned the departure of his greatest legacy: the 60/40 portfolio.

SPONSORED Destiny Wealth Partners: RIA Team of the Year shares keys to success

Discover the award-winning strategies behind Destiny Wealth Partners' client-centric approach.