HSG: You've mentioned some consistencies across your firms-they are successful, seasoned, oriented toward affluent clients. Are there other qualities they share?
JMB: Drive, all our firms are driven to succeed. Most of our advisors work with successful entrepreneurial businesses or in the high-net-worth space for clients with $10 million or more in assets. Some have even higher thresholds; say $25 to $50 million. You must have strong drive to succeed in this space given the expectations of the more sophisticated client.
HSG: What's notable about your core business of life insurance?
JMB: I think the DNA of somebody who sells high-end life insurance is unique. First, it's one of the most complex financial products. You then have to understand the client's circumstances and their charitable inclinations. An advisor has to know the best carrier for every situation and how to achieve the best possible pricing. An advisor also has to be able to bring the network of attorneys and other professionals together to make it all work. It's a comprehensive planning process. It's a truly unique skill and unbelievably complicated. That's why I love it and believe we have some of the best practitioners in the field.
HSG: What about the benefits business? How does NFP present itself in that market?
JMB: On the benefits side, NFP's primary focus is on the small- and mid-sized markets. The larger benefits firms tend to under serve those markets, so we are trying to reach out to them. We find that the cross-marketing opportunities within a client company are valuable. There is usually a small group of decision makers and retention is very important to them, and there is often a much stronger connection between management and the employees. These clients want expert advice, which is great because it allows an advisor to make a real difference for the client.
HSG: Do you offer anything for the large market?
JMB: Many of our client companies have grown dramatically while they've been with us and we continually evolve our offerings. We have a strong concentration in executive benefits, and some specific niche capabilities like nonqualified deferred compensation plans and bank owned life insurance.
HSG: The move into asset management was more recent for you. Can you describe your capabilities?
JMB: Most of our asset management firms are fee-based planners. They operate as asset allocators, using outside money managers, and work across asset classes for their clients, including alternative investments and other strategies that meet specific wealth needs. NFP's investment advisors and financial planners are a sophisticated group and I'd like to acquire more of them because they are a perfect fit for our company. Many fee-based planners are not engaged in the insurance business, but their clients need the asset protection a good life insurance plan offers. If an advisor can turn to another NFP firm for a life insurance solution, it's a great outcome for everyone-especially the client.