Independent Distribution Group

©UFS Independent Distribution Group Third Party Distribution at MetLife Presented to CSFB Conference November 16, 2005 Michael K. Farrell Senior Vice...
Author: Doris Jordan
1 downloads 0 Views 262KB Size
©UFS

Independent Distribution Group Third Party Distribution at MetLife Presented to CSFB Conference November 16, 2005 Michael K. Farrell Senior Vice President, MetLife Independent Distribution Group

Agenda • IDG Mission & Organization Structure • Size and Scope • 2005 Sales Results • Travelers’ Integration Update • Industry Issues • Q&A For Producer Use Only. Not For Use With The General Public.

2

MetLife Investors – A Time & Place for Independence • Independent Distribution arm of MetLife • Roots as a startup Variable Annuity company • Combined with General American to form MetLife’s Independent Distribution Group • Added LTC in 2004-2005 • Now combined with TL&A: Combined sales support and wholesaler organization Focused operation to better support your business

For Producer Use Only. Not For Use With The General Public.

3

Strategic Intent - MetLife Investors To be recognized as the leading provider of lifestyle preservation solutions distributed through independent producers: –By 2008 be #1 in the sale of life insurance, long-term care insurance, and variable annuities sold through independent distributors.

For Producer Use Only. Not For Use With The General Public.

4

Independent Distribution

Mike Farrell Senior Vice President Independent Distribution

Strategic Planning

Life Insurance Sales

Annuity Sales Long Term Care Sales

Operations & Planning

Investment Fund Mgmt Marketing

Broker Dealer Group

For Producer Use Only. Not For Use With The General Public.

MetLife Resources

5

IDG percent of Enterprise sales

Pre-Acquisition

Pro Forma Combined

Annuity

Annuity

Life

Life

LTC

LTC

Mutual Funds

Mutual Funds 0%

20%

40%

60%

80% 100%

Independent Distribution Affiliated Distribution

As of 6/30/05

0%

20%

40%

Independent Distribution

For Producer Use Only. Not For Use With The General Public.

60%

80% 100%

Affiliated Distribution

6

Enhanced Market Position Institutional

Individual Annuities

Individual Life

Sales

Sales Rankings1

Rankings2

Asset Rankings3 9.3%

1. MetLife (w/Travelers)

36.7%

2. MetLife (w/Travelers)

7.5

2. Principal Financial

11.9

6.1

3. Hartford

7.3

3. MassMutual

10.6

4. AIG

5.9

4. TIAA-CREF

6.0

4. Transamerica

10.4

5. Manulife

5.5

5. ING

5.8

6. ING (U.S.)

5.5

4. Allianz

5.8

7. Aegon

5.1

1. MetLife (w/Travelers)

7.7%

1. AIG

2. New York Life

6.2

3. Northwestern Mutual

Source: LIMRA, VARDS, LIMRA U.S. Pension Sales and Assets 2/2005 report. 1. Based on Annualized Universal Life, Variable Universal Life, Whole Life and Term Life. 2. Based on Total Sales in Variable and Fixed Annuities. 3. Based on New Deposits in Single Premium Buyouts and Terminal Funding. 3/31/05. For Producer Use Only. Not For As UseofWith The General Public.

7

Variable Annuity Sales by Channel – 3Q 2005

28%

10% 54%

8% Independent Distribution - Up 4% YOY MetLife - Up 3% YOY MetLife Resources - Up 10% YOY New England - Down 9% YOY For Producer Use Only. Not For Use With The General Public.

8

Variable Annuity Sales Ranking $ in millions

YTD 2005 Rank 1 2 3 4 5 6 7 8 9 10

Company TIAA-CREF MetLife Hartford AXA ING Group Lincoln National AIG/SunAmerica John Hancock Pacific Life Prudential/American Skandia Industry

YTD 2005 Premium 6,839.0 6,395.2 6,095.8 5,024.2 4,069.8 4,061.9 3,992.8 3,238.1 3,200.5 3,197.5

YTD 2005 Mkt Share 11% 10% 9% 8% 6% 6% 6% 5% 5% 5%

64,482.4

Source: VARDS, Sales & Asset Survey Tables and Use Charts Q2For 05Use With The General Public. For Producer Only. Not

9

LIMRA Life Sales Ranking $ in thousands

Q2 05 Rank Company 1 2 3 4 5 6 7 8 9 10

MetLife Companies AIG American General Northwestern Mutual New York Life Aegon USA ING Life John Hancock/ManuLife State Farm Life Pacific Life AXA Financial Industry

Q2 05 Premium

Q2 05 % Mkt Share

355,938 302,739 289,713 286,546 268,004 252,791 246,170 172,085 161,441 160,760

7.5% 6.3% 6.1% 6.0% 5.6% 5.3% 5.2% 3.6% 3.4% 3.4%

4,774,887

For Producer Use Only. Not For Use With The General Public.

10

Independent Distribution Metrics as of 09/30/05

($ in Thousands)

Wholesalers

YTD 04

YTD 05

% Chg

102

279

174%

78,704

90,921

16%

515

550

7%

WSS Registered Reps

1,370

1,177

-14%

TWS Registered Reps

-

Appointed Reps Selling Group Members

692

For Producer Use Only. Not For Use With The General Public.

-

11

MetLife Resources

• MetLife Resources combined with CitiStreet Associates 09/01/05 • #2 Market Share in K-12 market • 1.3 million customers • Serves non-profit retirement needs • Year to date annuity sales up 32% • 857 full time representatives

For Producer Use Only. Not For Use With The General Public.

12

Historic Moment for MetLife & Travelers • February 2005 – MetLife announces strategic intent to buy Travelers Life & Annuity and Citinsurance • July 1, 2005 - Successful close of transaction • November 1, 2005 - Full integration – Re-platforming products to create common set of business processes & systems – Expanded distribution channels – Execute as one company to realize the full value of this transaction

For Producer Use Only. Not For Use With The General Public.

13

Travelers Integration Update - Annuities • Reorganized Sales Management by Channel

For Producer Use Only. Not For Use With The General Public.

14

Channel Organization - Annuities

National Sales Manager Annuities / LTC

Channel Head Wirehouse

Channel Head Planner

Channel Head Broker Dealer

Channel Head Bank

For Producer Use Only. Not For Use With The General Public.

Channel Head Long Term Care

15

Travelers Integration Update - Annuities • Reorganized Sales Management by Channel

• Integrated Annuity Wholesaling Territories/Markets

For Producer Use Only. Not For Use With The General Public.

16

Travelers Integration Update - Annuities • Integrated Annuity Wholesaling Territories/Markets: • Distribution Channels • Wirehouse • Planner/Wrap/Proprietary BD • Broker Dealer/Primerica • Bank

• Account Management • Sales Desk Support

For Producer Use Only. Not For Use With The General Public.

17

Distribution Organization - Annuity

For Producer Use Only. Not For Use With The General Public.

18

Travelers Integration Update - Annuities • Reorganized Sales Management by Channel

• Integrated Annuity Wholesaling Territories/Markets

• Annuity Headcount

For Producer Use Only. Not For Use With The General Public.

19

Q3 Comments - Annuities • TLA distribution relationships represented 4 out of 6 of our largest distributors • TLA Sales down 15% quarter over quarter – as expected • Replatformed product marketing begins • • • •

Citibank/Smith Barney Morgan Stanley Primerica Wrap Channel

11/07 12/01 01/01 01/15

• Tower Square retained reps – GDC up 7% • CitiStreet Integration complete and new org – 1/1/06 kickoff Producer Use Only. Not Forbetween Use With The General Public. • Solid RelationshipsFor developing firms

20

Travelers Integration Update - Life • Life Insurance Management Reorganization

For Producer Use Only. Not For Use With The General Public.

21

Distribution Organization • Distribution Channels: •



Independent Channel •

Independent Division



Bank Division

National Accounts Channel

• Account Management • Sales Desk Support • Advanced Market Support

For Producer Use Only. Not For Use With The General Public.

22

Distribution Organization - Life

For Producer Use Only. Not For Use With The General Public.

23

Travelers Integration Update - Life • Life Insurance Management Reorganization • Life Wholesaler Headcount

For Producer Use Only. Not For Use With The General Public.

24

Travelers Integration Update - Life • Life Insurance Management Reorganization • Life Wholesaler Headcount • Product Development

For Producer Use Only. Not For Use With The General Public.

25

Competitive Product Portfolio & Integration

• TL&A Acquisition Closes Gap in Life Portfolio – TL&A Market Leader Fixed Universal Life – MetLife Market Leader: Variable Life, Whole Life, Term

• Ease of Doing Business Leads to Common Branding – MetLife Investors USA Insurance Co. → Non-New York – Metropolitan Life Insurance Company → New York

For Producer Use Only. Not For Use With The General Public.

26

Product Strategy “MVP” UL (Secondary Guarantee)

Guarantee Advantage UL

11/05

“TSL” Joint Life UL (CA/PF)

MLI Legacy Advantage SUL

11/05

“TSL” Joint Life UL (Secondary Guarantee)

MLI Legacy Advantage SUL

11/05

“Prosperity Builder” Single Premium UL

MLI Single Premium Advantage UL

TBD

“Special T” Term Insurance

Current MLI Term

Close

“TVLAC & TVLDB” VUL

New MLI VUL

05/06

“VSLII” Variable Survivorship Life

New MLI VSL

2006

For Producer Use Only. Not For Use With The General Public.

27

Travelers Integration Update - Life • Life Insurance Management Reorganization • Life Wholesaler Headcount • Product Development • Service Strategy

For Producer Use Only. Not For Use With The General Public.

28

New Business Service Model • One Operational Site • Contracting and licensing • New Business -

Client Acquisition Team Case Management Underwriting

• New Business Remittance in Hartford • Customized and focused technology – – – –

Provide imaging capabilities in support of Paperclip, Image 1, etc. Support agency operating systems such as Zebu and Agency Works Support industry standard forms delivery, such as iPipeline Support National Securities Clearing Corporation and Depository Trust & Clearing Corporation feeds

• Building on existing “Independent culture” For Producer Use Only. Not For Use With The General Public.

29

Q3 Comments - Life • Target Premiums Flat • Dump-ins down ↓ 23% • Intentional Product repricing • Reduce comp/higher targets

• Investor Owned Life Insurance (IOLI) • Life Underwriting • Staffing • Capacity • Oversight

For Producer Use Only. Not For Use With The General Public.

30

Industry Issues • Proliferation of Income Features • Tightening Reinsurance • Investor Owned Life Insurance • Regulation/Suitability • Tax Reform • Retirement Boom

For Producer Use Only. Not For Use With The General Public.

31

Q&A

For Producer Use Only. Not For Use With The General Public.

32

Thank You

For Producer Use Only. Not For Use With The General Public.

33

R R

For Producer Use Only. Not For Use With The General Public.

34

Suggest Documents