Another Insurer Dumps IBDs; Could You Be Next?Another Insurer Dumps IBDs; Could You Be Next?
MetLife’s recent sale of Walnut Street and Tower Square is just the latest sign that insurance firms aren’t in the IBD business to stay.
If you’re sitting at an insurance-owned independent broker/dealer, you may want to reconsider. MetLife’s recent move to sell IBDs Walnut Street Securities and Tower Square Securities to Cetera, announced Friday, is just the latest sign that insurance firms are not in the independent broker/dealer business for the long haul.
“The pattern gets increasingly clear that the insurance companies don’t want to have broker/dealers anymore,” said Jonathan Henschen, president of the recruiting firm Henschen & Associates in Marine on St. Croix, Minn. “If I was a rep looking to change b/ds, considering insurance broker/dealer, I think I’d be concerned, ‘Hey, how soon are they going to be sold?’”
Once the deal with MetLife is completed, Cetera will go f...
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