Ladenburg Thalmann Financial Services is expanding its annuity insurance operations with the purchase of some of the assets of Kestler Financial Group, an independent insurance and annuity distribution group based in Leesburg, Va.
The firm announced Wednesday that its subsidiary, Ladenburg Thalmann Annuity Insurance Services, has purchased the Kestler assets. Terms of the deal were not released by Ladenburg Thalmann, a publicly traded diversified financial services firm with headquarters in Miami.
The purchase is part of an ongoing strategy for Ladenburg Thalmann Annuity Insurance Services to reinforce its position as a distributor of annuity products for independent financial advisors throughout the country. Ladenburg also includes a complementary subsidiary Highland Capital Brokerage, a national independent brokerage of life insurance products.
Founded in 1993 by father and son Tom and Jason Kestler, Kestler sells annuities, life insurance, long-term care insurance and disability insurance, and includes financial planners, insurance agents and registered representatives. The firm has selling agreements with more than 20 independent broker-dealers, RIAs and other firms representing more than 3,000 affiliated financial advisors.
The Kestler team will operate from their current headquarters in Leesburg as part of Ladenburg Thalmann Annuity Insurance Services. Jason Kestler is now part of the Highland executive management team, and also will serve as president of the Kestler Financial Group Division.
Jim Gelder, CEO of the Ladenburg Thalmann Annuity Insurance Services, said the addition of Kestler nearly doubles the number of planners, agents and representatives in the Ladenburg Thalmann annuities operation.
“More importantly, it doubles our opportunity to expand our reach in this market,” Gelder said.
Ladenburg Thalmann Annuity Insurance Services was launched in May 2017. The addition of Kestler brings substantial infrastructure and business growth to Ladenburg Thalmann, said Gelder.
“There is tremendous growth opportunity for indexed annuities today because people are afraid of outliving their assets in retirement. With annuities you can have an income stream for life with protection from the downside risk of the market,” he added.
“It is important for advisors to consider these products to get some diversification in clients’ portfolios. The outlook for these products for the next few years is strong and Kestler presented the ideal opportunity for us to grow our capacity to help advisors,” Gelder said.