GREAT AMERICAN FINANCIAL SETTLES ANNUITY ISSUES WITH MINNESOTA AG

Cincinnati-based Great American Life, Annuity Investors Life and Loyal American Life, subsidiaries of Great American Financial Resources (GAFRI), have reached a settlement with the Minnesota Attorney General regarding annuity sales to the state’s senior citizens. The GARFI subsidiaries have agreed to notify all their Minnesota customers who were 65 and older when they purchased deferred annuities between January 1, 2001, and August 1, 2008, that they may submit a claim for a penalty-free refund of their premiums. If it is determined that the annuity sold to a customer was unsuitable or based on misrepresentations, the annuity providers will both refund the premiums without penalty and pay 4.15% annually compounded interest on the premiums paid. In addition, the GAFRI subsidiaries have agreed to enhance their suitability requirements for annuity sales to seniors, determining whether the senior has sufficient liquid assets and income to pay for living expenses and emergencies. Minnesota Attorney General Lori Swanson estimates that refund claims could be submitted for 2,000 policies worth a combined $50 million. Swanson said, “Many senior citizens face economic difficulty in this troubled economy, and this settlement provides a vehicle for them to obtain funds.” GAFRI Chief Operating Officer Charles R. Scheper said, “We have engaged in comprehensive and good faith efforts to reach out to our annuity contract owners and respond to any issues or concerns they had with their product or sales process … and we are willing to continue to work with [the Attorney General’s] office to address any issues that have yet to be brought to our attention.”

NORTHEAST BANK INSURANCE GROUP SELLS RUMFORD, ME-BASED AGENCY

Berwick, ME-based Northeast Bank Insurance Group (NBIG), a unit of Lewiston, ME-based, $604 million-asset Northeast Bancorp, has sold Rumford, ME-based Mexico Agency to Falmouth, ME-based United Insurance. The acquired agency will merge into United Insurance’s Rumford office, bringing with it about $900,000 in annual premiums and one long-time agent. The agency’s other two agents will remain with NBIG and work from NBIG’s offices in Bethel and Livermore, ME. Northeast Bank President and CEO Jim Delamater said, “Our goal is to continue to grow our insurance line of business, though we regularly review market opportunities as well as our ‘bricks and mortar’ strategy to ensure we are maximizing our capital and resources.”

MARSH & MCLENNAN AGENCY EXPANDS REACH WITH NIA GROUP ACQUISITION

New York City-based March & McLennan Agency, a Marsh & McLennan Companies’ subsidiary focused on serving the insurance needs of mid-sized businesses, has acquired Paramus, NJ-based The NIA Group (NIA) and its New York City office, Kornreich-NIA (K-NIA). NIA’s 400 employees generate about $62 million in annual revenue offering property and casualty insurance, employee benefits, personal insurance and life insurance/estate planning from offices in New Jersey, New York, Connecticut and Florida. Marsh & McLennan Agency Chairman and CEO David Eslick said, “The addition of The NIA Group and Kornreich-NIA to our firm gives us a strong operation in the New York City metropolitan area and Florida.” The acquisition fits with Marsh & McLennan Agency’s plan to acquire similar agencies focused on mid-sized companies across the country.

INVEST Names Dowden CEO

INVEST Financial Corporation (Tampa, FL) announced that it has named Steve Dowden president and chief executive officer. Dowden succeeds Lynn Niedermeier, who retired in July after serving as the firm’s president and CEO since 2001.
Dowden, 48, joins INVEST from CUNA Mutual Group, an investment and insurance company serving the credit union industry. As senior vice president of distribution and president and CEO of CUNA Brokerage Services, Inc., he led a sales force of 550 advisers and was responsible for all sales within CUNA’s Asset Accumulation division.
Prior to joining CUNA, Mr. Dowden served as president of the investment and insurance program at IBM Mid America Federal Employee Credit Union. (October 12, 2009)

Lynn Niedermeier Retires as CEO of INVEST Financial

INVEST Financial Corporation today announced that Lynn Niedermeier has decided to retire and will resign her position as president and CEO of the firm.
Ms. Niedermeier has served as INVEST’s president and CEO since 2001. “I am fortunate to have worked with a talented group of individuals who shared my vision for INVEST and helped build an innovative company that is a leader in the industry,” said Niedermeier. “My decision to retire was a difficult one to make, but I feel it is necessary to focus my energy on certain personal issues at this time. NPH and Jackson have always been thoroughly supportive of me, my management team and the firm’s independent culture. I am leaving the company and our reps in extremely capable hands, and I am confident that INVEST will continue to thrive.”
Jim Livingston, president of the National Planning Holdings, Inc. (NPH) broker-dealer network, which includes INVEST Financial, will assume Ms. Niedermeier’s responsibilities on an interim basis. (July 6, 2009)

J.J. Hudock Joins ICA’s New Business Development Team

Investment Centers of America, Inc. (ICA) today announced (August 20) that J.J. Hudock has joined the firm as vice president of new business development. In this role, Mr. Hudock is responsible for marketing ICA’s business capabilities to independent offices and financial institutions. He is based in Charlotte, N.C.
Mr. Hudock joins ICA from UVEST Financial Services, where he served as vice president of business development since 2002. His 13 years of experience in the industry also includes positions in insurance sales management and mortgage lending. Mr. Hudock is a graduate of George Washington University and holds FINRA Series 6 and 63 registrations, as well as life and health insurance licenses.
“J.J. brings a wealth of industry experience and a proven track record of building mutually beneficial relationships across multiple markets to our senior management team,” said Greg Gunderson, president and CEO of Investment Centers of America (Bismarck, ND). “He understands and embraces ICA’s philosophy, which is to help our representatives provide the best possible service to their clients. J.J. will play a key role in positioning ICA as a valuable business partner for independent advisers, banks and credit unions.” (August 20, 2009)

Bank Insurance Brokerage Second-Quarter Income Drops Nearly 7%

Bank holding company 2009 second-quarter insurance brokerage income fell 6.5 percent to $3.02 billion compared to 2008 second-quarter income of $3.23 billion, according to a consulting firm.
A Michael White-Prudential Bank Insurance Fee Income Report noted that the 2009 second-quarter income is essentially flat from the 2009 first-quarter income of $3.03 billion.
For the first half of 2009, BHC insurance brokerage income fell 6 percent to $6.05 billion compared to the record 2008 first-half income of $6.44 billion. A decline in insurance brokerage income for a handful of companies was responsible for the drop, the report said.
According to the report, 62.1 percent of large top-tier BHCs engaged in insurance brokerage activities in the first half of 2009.
Among the top-12 listed bank institutions, Calif.-based Wells Fargo & Company led the way with respect to first-half year-to-date income at $995,000, up nearly 7 percent from its 2008 first-half income of $931,000.