Positioned to Win with Banks/Credit Unions and Regional Broker Dealers Brad Powell President...
-
Upload
marshall-carroll -
Category
Documents
-
view
214 -
download
0
Transcript of Positioned to Win with Banks/Credit Unions and Regional Broker Dealers Brad Powell President...
Positioned to Win with Banks/Credit Unions and Regional Broker Dealers
Brad PowellPresident
Institutional Marketing Group
Bank Marketplace History(Bank Premium as a Percentage of Total Industry Premium)
12
14
16
18
20
22
24
1997 1998 1999 2000 2001 2002*Year
An
nu
ity P
rem
ium
(%
)
*Data through June 2002Source: Kehrer & Associates
Industry Wide Bank Annuity Premium
05
1015202530354045
1997 1998 1999 2000 2001 2002*
Fixed Annuities Variable Annuities*Data as of June 2002 Source: Kenneth Kehrer Associates
(In Billions)
Total Bank Annuity Industry Rankings - 2001
Fixed Annuities1. AIG/American General2. Aegon/Transamerica3. GE Companies4. Nationwide5. Allstate Life Group6. Jackson National Life7. Keyport8. John Hancock9. Lincoln National10. Western-Southern
Total Annuities1. AIG/SunAmerica2. Aegon/Transamerica3. Hartford4. Nationwide5. GE Companies 6. Allstate Life Group7. Keyport8. Jackson National 9. John Hancock10. Lincoln National
Source: Kenneth Kehrer Associates
Industry Rankings:Fixed & Total Annuities – Through Second Quarter 2002
Total Annuities1. AIG/SunAmerica
2. Aegon/Transamerica
3. Hartford
4. Nationwide
5. John Hancock
6. Allstate Financial
7. SunLife Financial/Keyport
8. GE Companies
9. Jackson National
10. Lincoln National
Fixed Annuities1. AIG/American General
2. Aegon/Transamerica
3. John Hancock
4. Nationwide
5. Allstate Financial
6. GE Companies
7. SunLife / Keyport
8. Jackson National Life
9. Lincoln National
10. HartfordSource: Kenneth Kehrer Associates
Proprietary vs. Private Label
Proprietary Annuity:▲ Bank manages the underlying assets
associated with the product sold– Fixed income for fixed annuities– Sub-account funds for variable annuities
Private Label Annuity:▲ Insurance company modifies or creates annuity
to fit particular needs of the bank, without bank management of assets
History Of IMG
0
200
400
600
800
1,000
1,200
1,400
1,600
1997 1998 1999 2000 2001 2002*
Premium ($000)
02,0004,0006,0008,00010,00012,00014,00016,00018,000
Number of Licensed Reps
Premium Rep Counts
*Sales through June 2002
Reasons For Success
▲ Commitment to a broad and competitive product line
▲ Flexible delivery style
▲ Service
Flexibility
▲ Dedicated advisors
▲ Platform representatives
▲ Hybrid sales force
Typical Success Story
Community First Bank▲ 6 week bank-wide JNL-sponsored
marketing campaign ▲ $28.4 million in fixed and variable
annuity sales▲ Previous annuity sales non-existent
Key Issues
▲ Consolidation/sales
▲ Proprietary products vs. private label
▲ Revenue sharing/margin pressure
▲ Shrinking universe
Future: Banks Are Where The Money Is ▲ Results from a recent survey concluded
more bank customers are seeking financial advice from banks
▲ Banks are uniquely positioned to service the largest U.S. affluent segment – The Mass Affluent:– 5 Million households – $3.7 Trillion in investable assets
Source: Cerulli and Associates