Securian Financial will sell its retail wealth business to Los Angeles-based Cetera Financial Group.
Terms were not disclosed but both sides expect the deal to close in the third quarter, depending on regulatory review.
This transaction and a deal by Securian in October to sell its retirement plan record-keeping business are part of a broader consolidation trend within those industries and allow Securian to focus on core businesses such as individual life insurance, annuities and group life insurance and supplemental health insurance programs offered by employers.
"This transaction allows Securian Financial to increase our strategic focus and accelerate growth in our priority markets, while at the same time continue our commitment to the retail wealth business through our strategic partnership with Cetera," said Chris Hilger, Securian Financial's chief executive, in a news release.
St. Paul-based Securian's retail wealth services are offered through more than 1,000 financial professionals across 30 independent firms. The deal will directly affect about 155 Securian employees who will be offered positions with Cetera.
As part of the deal, the two have agreed on a partnership allowing Securian Financial to offer its individual life insurance and annuity products through Cetera's 8,000 financial professionals.
For customers very little will change. Their retail wealth investment holdings will remain the same and insurance products will continue through their carrier.
Cetera Financial Group is a large network of financial professionals and has been making a series of small acquisitions over the past several years, including other wealth management business and teams, as it has expanded its network and increased offerings.
"We have long admired Securian Financial's commitment to their managing partners, their powerful independent operating model and dedicated community of independent financial professionals," said Adam Antoniades, chief executive at Cetera, in the news release. "Our Wealth Hub ... is complementary and synergistic to Securian Financial's operating model, and we envision untapped growth potential for the independent financial professionals joining the Cetera network."
The deal includes about $47.4 billion in assets under administration and $24.8 billion in assets under management. Cetera currently has about $322 billion in assets under administration and $115 billion in assets under management.
