Allianz To Exit B-D, RIA Businesses; 600 Reps Offered New B-D
October 11, 2018 by Jamie Johnson
Allianz Life is leaving the broker-dealer and RIA businesses and its 600 reps are being given the opportunity to transition to Woodbury Financial Services as part of an asset sale, according to a company press release.
Clients at Allianz’s subsidiaries, Questar Capital and Questar Asset Management, with total assets under management of $13 billion, will also be given the chance to transition to Woodbury, an Allianz spokesman said. “Representatives will work with their clients to transition their accounts with Questar to Woodbury,” spokesman Brett Weinberg said. “Clients should experience a seamless transition.
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Woodbury Financial Services, an independent B-D (IBD) with more than 1,200 advisors across the country, has been named the “preferred affiliation partner” as part of the deal with Allianz Life Insurance Company of North America, the press release said.
Under the terms of the deal, Woodbury will be designated as the “preferred” destination for registered representatives of the Minneapolis-based Allianz subsidiaries that will wind down upon the completion of the assets sale, according to Weinberg.
Woodbury, based in Oakdale, Minn., is part of the Advisor Group network, one of the nation’s largest networks of independent financial advisors serving over 5,000 advisors and overseeing more than $200 billion in client assets, the release said.
Allianz becomes the latest insurance company to exit the IBD world. Last year, Jackson National sold its four National Planning Holdings (NPH) IBDs to LPL Financial. And in May, Royal Alliance, another IBD in Advisor Group’s network, acquired Signator Investors from John Hancock.
The Allianz-Woodbury deal is expected to close in the first quarter of 2019 and is subject to regulatory approval, Weinberg said. Financial terms of the asset sale were not disclosed and Weinberg said the company had “no additional comments at this time” in regards to why it decided to leave the B-D and RIA businesses.
“Questar has produced strong results, and we are pleased to have found a partner in Woodbury that can build on these results by providing reps with an outstanding platform for future growth,” said Walter White, president and CEO of Allianz Life. “The cultural similarities between the two organizations will help smooth the transition, and we are confident that Woodbury will be a great long-term partner for Questar advisors.”
Questar advisors joining Woodbury will have access to the firm’s platforms featuring digital account opening, business and marketing coaching and wealth management solutions, the release said.
They will also have access to dedicated field support through Woodbury’s regional vice presidents, which is similar to Questar’s model, the release said.
In addition, since both firms clear through Pershing, Questar advisors will not need to repaper most of their clients’ accounts when transitioning to Woodbury, the release said.
“We are honored that Allianz Life and Questar have selected Woodbury as their preferred affiliation partner for Questar’s advisors,” said Rick Fergesen, president and CEO of Woodbury. “Our firms’ cultures are closely aligned and we share a similar regional field support system. Questar advisors will feel at home at Woodbury, and will benefit from our business-friendly technology and product platforms. We couldn’t be more pleased to welcome them to our family.”
