MetLife Inc. is revamping its distribution group, giving its two remaining broker-dealers higher required minimum production levels with the expectations of selling more proprietary products with fewer reps.
The insurer is placing MetLife Securities Inc., New England Securities Inc. and MetLife Resources, a retirement services distributor, under a new banner called The MetLife Premier Client Group.
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As part of the restructuring, the firm will further cut its adviser corps by 300 to 600 reps after eliminating about 2,300 since last year.
(See also: MetLife adviser ranks thinning out fast after cuts)
“The goal for the end of 2015 is about 4,700 to 5,000 advisers with an average of $185,000 in production,” said Paul LaPiana, senior vice president of MetLife Premier Client Group.
In 2012, MetLife had 7,600 advisers with an average production of $127,000 per rep. Today, that number is down to 5,300, with an average of $165,000 in production for each adviser.
Advisers under the new structure will be expected to meet higher sales minimums. Last year, brokers needed to generate $60,000 in production to make their minimum. That number is now $90,000 – and of that, at least $60,000 must come from proprietary products, whether MetLife's asset management platform or the sale of disability, annuity or life insurance products.
“If someone doesn't have the $90,000, but they've made $75,000 in proprietary product sales, we'll allow them to make the minimum production requirement,” Mr. LaPiana said.
The company announced the name change on Oct. 15 but details are just now emerging.
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