Protective Life Corporation sells two subsidiaries
Protective Life Corporation sells two subsidiaries | Insurance Business America
Life & Health
Protective Life Corporation sells two subsidiaries
Group to focus on its core competencies
Life & Health
By
Terry Gangcuangco
Protective Life Corporation, part of Dai-ichi Life Holdings, is selling Concourse Financial Group Securities (Concourse Securities) and Concourse Financial Group Agency (Concourse Agency) to Cetera Financial Group and Simplicity Financial, respectively.
The transaction with Cetera is via an asset purchase agreement, while the deal with Simplicity is through a stock purchase agreement.
Aaron Seurkamp (pictured), senior vice president and president of the protection & retirement division at Protective, said the move will allow the company to focus on its core competencies as an insurance provider while enabling Concourse Securities and Concourse Agency to benefit from their new owners.
Cetera, which operates a network of independent financial professionals, will incorporate approximately 350 Concourse Securities advisors who collectively manage $12 billion in assets under administration and $4 billion in assets under management.
Mike Durbin, chief executive of Cetera Holdings, sees the acquisition as a significant growth opportunity in a consolidating market.
“Cetera has a proven track record of acquiring and successfully integrating independent broker dealers affiliated with insurance organizations, and Concourse Financial Group Securities represents a tremendous opportunity,” Durbin said.
Meanwhile, Simplicity partner and CEO Bruce Donaldson commented: “We are thrilled to work with our longtime partner, Protective, to add Concourse Agency to our unrivalled team of insurance wholesaling professionals.” Donaldson also highlighted the benefit of Simplicity’s full suite of sales programs, products, and support services.
Following the transactions, which are expected to close early next year (Cetera) and later this year (Simplicity), Protective will retain ownership of Concourse Distributors, which will continue to support key external partners.
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