Now that Saybrus Partners, the new distribution arm for Hartford-based life insurer The Phoenix Cos., has its first deal inked with financial services firm Edward Jones, the company is looking to add as many as six new partners by the end of 2010, a company executive said.
Doug Winkler, a principal at Saybrus, said the company is looking to add four to six new clients by the end of 2010, concentrating largely on crafting relationships with banks and property and causality insurance firms.
He said the company is currently in discussions with several firms.
Phoenix announced the formation of Saybrus last week, as part of a series of actions the company is taking to strengthen its market position and strategy. The new entity will provide life insurance consulting services to partner companies, as well as support for Phoenix’s product line within its own distribution channels.
Phoenix officials said creating Saybrus is an important first step in executing their growth strategy for the future, as the company looks to fill a void created earlier this year when State Farm, and other major distributors suspended sales of the insurer’s products after it sustained a series of ratings downgrades.
The Phoenix Cos. posted a third-quarter loss of $26.6 million, as it continues to struggle with declining sales and investment losses related to the economic downturn.
James Wehr, the CEO and president of The Phoenix, said last week the company continues to seek new relationships with distributors, including independent marketing organizations.
Winkler said banks are an ideal partner for Saybrus because they are an “emerging distribution channel for life insurance products,” providing them more ways to extend their relationships with current customers and potentially attract new ones.
Meanwhile, insurance agent’s that sell property and casualty coverage, don’t have the expertise in life insurance, which restricts them in their offerings.
Under the deal with Edward Jones, Saybrus’ wealth management consultants will work with more than 11,700 Edward Jones financial advisors, helping them match insurance products to meet their clients’ needs.
The initial three-year agreement focuses Saybrus’ consultants on two new insurance carriers in the Edward Jones retail distribution network, John Hancock Life Insurance Co. and Pacific Life Insurance Co., both of which have sales contracts with Edward Jones, the company said.
Saybrus’s wealth management advisors will help advisors from partner companies with their assisted sales model. That means a Saybrus wealth management specialist, meets and works with financial advisors at partner firms, discusses their clients situation, and then helps create a comprehensive approach for their life insurance coverage.
Saybrus wealth managers will be providing expertise in areas such as legacy planning and wealth replacement, Winkler said
“The goal is to understand clients, discover the details of their situation, and create a customized solution for them,” Winkler said.
Bank’s Profits Drop
Wethersfield-based Connecticut River Community Bank posted an 85 percent drop in profits for the third quarter, as the bank set aside more money for bad loans and saw an increase in operating expenses attributable to the opening of a new branch.
The bank reported net income after tax of $18,455 for the quarter ended Sept. 30, a decrease from the $120,553 reported a year earlier.
Net interest income, the bank’s primary source of earnings, increased $251,000, or 19 percent, in the quarter.
Third quarter results were most significantly affected by a $556,000 increase in the provision for loan losses, as well as a $108,000 increase in Federal Deposit Insurance Corp. premiums. The bank also saw an increase in operating expenses attributable in part to the opening of their third banking office in West Hartford Center in December 2008.
The bank increased its loans and deposits during the quarter by 9 percent and 13 percent, to $137 million and $143 million respectively.
Company executives said the bank remains profitable, despite one of the most challenging economic periods in recent history.
“As we progress through this cycle, the Bank remains focused on the resolution of troubled loans, improving core profitability and strengthening capital,” the bank said.
Greg Bordonaro is a Hartford Business Journal staff writer.
