Northwestern Mutual has achieved consistent success over decades through prudent investment strategies and conservative underwriting practices. It maintains high ratings and builds its book of business steadily without chasing short-term gains. Northwestern recruits and trains new representatives extensively, emphasizing client relationships and financial security planning over time. These strategies have allowed Northwestern Mutual to thrive while other insurers struggle.
1) World Financial Group is a financial services marketing organization that represents some of the world's leading financial services providers.
2) They aim to help individuals and families achieve financial independence through education on important financial concepts and solutions.
3) They provide associates with a proven business system and access to resources to help families address financial challenges like debt, protection needs, college costs, retirement and taxes.
1. The document promotes World Financial Group's (WFG) Variable Universal Life (VUL) insurance product and "crusade" by arguing it provides better solutions than traditional insurance and investment products.
2. It claims VUL offers significant tax advantages under IRS laws and can address multiple family financial needs like protection, savings, and retirement in a single product.
3. Testimonials from financial experts are presented to argue VUL is one of the most powerful financial tools available.
MassMutual provides a concise summary of its financial strength and stability in uncertain economic times. It highlights its 157 years of operations, $8.5 billion surplus, diversified investment portfolio, and AAA financial strength ratings from major rating agencies. MassMutual emphasizes that its mutual ownership structure ensures its priorities are aligned with policyholders, and that it is well-positioned to continue honoring its commitments through periods of market turbulence.
AEGON N.V. is an international insurance company based in the Netherlands that operates in over 20 countries. It was ranked one of the largest companies in the world in 2009. World Financial Group partners with AEGON and other insurers to offer their products through WFG's network of agents. WFG provides training and support to help agents grow their business and leave no family behind without the protection they need. Success is measured by building a team, completing training requirements, and earning commissions.
December 13 quarterly: Is this too good to be true?Mark_Krygier
- The newsletter summarizes recent market performance and provides an outlook. It notes that historically markets have performed better from November to April.
- While some sectors seem overextended, fundamentals suggest markets may remain positive. The US central bank leadership is changing but no policy changes are expected.
- Bonds still have a place in portfolios due to providing insurance against volatility and securing capital, despite concerns around rising rates.
- The portfolio manager recently experienced a family loss and thanks clients who have referred new business.
This document discusses building a strong financial foundation. It emphasizes that building wealth responsibly through consistent saving and investment is better than get-rich-quick schemes. Some key aspects of a strong financial foundation discussed include paying yourself first by starting to save early, understanding how compound interest can grow your money over time, protecting your family with adequate life insurance, and creating an emergency fund to prepare for unexpected expenses. The overall message is that a patient, consistent approach to managing finances can help achieve financial security and goals.
This document provides information on building a strong financial foundation. It discusses the importance of saving early and paying yourself first. Small regular savings can grow significantly over time, especially with compound interest. However, one must also pay more than the minimum on debts to avoid large interest costs, and create an emergency fund to prepare for unexpected expenses. The document emphasizes reducing debts, paying yourself first, making more money, building equity, and preserving your estate as key parts of a solid financial plan. Overall, the message is to start building a foundation now through disciplined savings and debt management.
WFG - Helping People Create Better Financial Futurespetervinhong
This presentation gives an overview of why WFG associates go to work each day: to build and protect wealth for families and individuals. It overviews the six components of WFG\'s financial needs analysis and describes fundamental financial concepts and strategies - such as the rule of 72 - that can help people secure their financial futures.
1) World Financial Group is a financial services marketing organization that represents some of the world's leading financial services providers.
2) They aim to help individuals and families achieve financial independence through education on important financial concepts and solutions.
3) They provide associates with a proven business system and access to resources to help families address financial challenges like debt, protection needs, college costs, retirement and taxes.
1. The document promotes World Financial Group's (WFG) Variable Universal Life (VUL) insurance product and "crusade" by arguing it provides better solutions than traditional insurance and investment products.
2. It claims VUL offers significant tax advantages under IRS laws and can address multiple family financial needs like protection, savings, and retirement in a single product.
3. Testimonials from financial experts are presented to argue VUL is one of the most powerful financial tools available.
MassMutual provides a concise summary of its financial strength and stability in uncertain economic times. It highlights its 157 years of operations, $8.5 billion surplus, diversified investment portfolio, and AAA financial strength ratings from major rating agencies. MassMutual emphasizes that its mutual ownership structure ensures its priorities are aligned with policyholders, and that it is well-positioned to continue honoring its commitments through periods of market turbulence.
AEGON N.V. is an international insurance company based in the Netherlands that operates in over 20 countries. It was ranked one of the largest companies in the world in 2009. World Financial Group partners with AEGON and other insurers to offer their products through WFG's network of agents. WFG provides training and support to help agents grow their business and leave no family behind without the protection they need. Success is measured by building a team, completing training requirements, and earning commissions.
December 13 quarterly: Is this too good to be true?Mark_Krygier
- The newsletter summarizes recent market performance and provides an outlook. It notes that historically markets have performed better from November to April.
- While some sectors seem overextended, fundamentals suggest markets may remain positive. The US central bank leadership is changing but no policy changes are expected.
- Bonds still have a place in portfolios due to providing insurance against volatility and securing capital, despite concerns around rising rates.
- The portfolio manager recently experienced a family loss and thanks clients who have referred new business.
This document discusses building a strong financial foundation. It emphasizes that building wealth responsibly through consistent saving and investment is better than get-rich-quick schemes. Some key aspects of a strong financial foundation discussed include paying yourself first by starting to save early, understanding how compound interest can grow your money over time, protecting your family with adequate life insurance, and creating an emergency fund to prepare for unexpected expenses. The overall message is that a patient, consistent approach to managing finances can help achieve financial security and goals.
This document provides information on building a strong financial foundation. It discusses the importance of saving early and paying yourself first. Small regular savings can grow significantly over time, especially with compound interest. However, one must also pay more than the minimum on debts to avoid large interest costs, and create an emergency fund to prepare for unexpected expenses. The document emphasizes reducing debts, paying yourself first, making more money, building equity, and preserving your estate as key parts of a solid financial plan. Overall, the message is to start building a foundation now through disciplined savings and debt management.
WFG - Helping People Create Better Financial Futurespetervinhong
This presentation gives an overview of why WFG associates go to work each day: to build and protect wealth for families and individuals. It overviews the six components of WFG\'s financial needs analysis and describes fundamental financial concepts and strategies - such as the rule of 72 - that can help people secure their financial futures.
US Small Business Administration Role during the Economic TurmoilHaji Gulahmadov
This document provides an overview of the U.S. Small Business Administration (SBA) and its role in helping the economy during times of economic turmoil. It discusses the current economic crisis, how small businesses helped the economy in past recessions through self-employment and new business creation. It outlines actions SBA took after 9/11 to provide disaster assistance loans to small businesses affected. The document argues that targeted lending through SBA is needed to help small businesses access capital and help the economy recover from the current recession.
The document discusses building a successful business in the financial services industry through recruiting. It emphasizes the importance of having a system to duplicate success at scale. Key aspects include recruiting consistently to build a large team, becoming a VP quickly, focusing on recruiting other leaders, and thinking long-term about building an organization with many VPs over time. Success requires working on rather than just in the business, and surrounding oneself with other top producers.
1) AEGON N.V. is an international insurance, pension, and investment group based in The Hague, Netherlands with businesses in over 20 markets globally.
2) AEGON N.V. was ranked one of the world's top companies in 2009 by Forbes for its sales, profits, assets, and market value.
3) World Financial Group provides insurance, investment, and retirement planning products and services from select companies to help people achieve their financial goals.
This document provides information about World Financial Group (WFG), including who they are, their mission and vision, strategic alliances, products offered, how to build income through WFG, and options to become a client or business owner. Key details include:
- WFG is a financial services company made up of an insurance agency and mutual fund dealer that offers products like mutual funds, insurance, and retirement plans.
- Their mission is to help families achieve financial independence and their vision is to build the world's best financial services organization.
- Associates can build income by helping families and receiving commissions, with examples showing potential monthly earnings ranging from $2,520 to $15,480.
- Options
Financial advisors are increasingly recommending safer, more conservative investments in response to the economic uncertainty, such as bank deposits, bonds, and dividend-paying stocks. Advisors are promoting the benefits of protecting principal and seeking modest growth over riskier strategies that could yield higher returns. Meetings with clients focus on educating them about risk tolerance and stress-testing portfolios. While traditional investments have merit, diversification and higher cash reserves are also emphasized given the challenges of relying solely on any one type of investment.
Personal use only, do not reproduce.2021 02-POLY33
This document discusses various strategies that sports organizations and businesses can take during times of financial hardship, including contraction, informal reorganization, and asset removal. It provides examples of companies in the sports industry that have undergone mergers or acquisitions to reduce costs through economies of scale. It also discusses signs that a business may be facing financial trouble, such as a lender calling back a loan, and options for addressing debt obligations through informal or formal processes like bankruptcy.
This document discusses short selling versus naked short selling. It defines short selling as borrowing shares to sell with the expectation that the price will fall so they can be bought back at a lower price. Naked short selling is defined as illegal because it involves selling shares that are not actually owned. The document also examines the uptick rule versus mark-to-market accounting and which may be more effective during a financial crisis. It provides background on hedge funds and how some engaged in market manipulation through naked short selling, which some argue contributed to the troubles of firms like Bear Stearns and Lehman Brothers.
World Financial Group (WFG) is a financial services marketing company made up of thousands of associates in the United States and Canada. It helps middle-income families achieve financial independence through products from hundreds of companies. WFG has an exclusive broker-dealer and is among the top 1% of broker-dealers in the U.S. It is owned by AEGON, one of the world's largest insurance and pension groups. WFG offers training and a business system to help associates build their own businesses and teams to earn commissions on financial products and services.
World Financial Group provides financial services and products to help people achieve better financial futures. It uses a hybrid business model that rewards associates for both sales production and leadership in developing other associates. The opportunity allows associates to earn income through their own sales, overrides on other associates' sales, and residuals. World Financial Group focuses on serving middle-income individuals and families and provides training and support to help associates be successful.
This newsletter from Northland Wealth Management provides updates on financial markets and planning strategies. It discusses the uncertainty caused by Brexit and the US election, and how concentrated positions in single assets can be addressed. It also describes incentive trusts that can motivate positive behavior in beneficiaries. Northland Wealth believes alternative investments can complement traditional portfolios by improving risk-return, and attended a conference on the evolving financial industry.
Northwestern Mutual has a unique business model of using an exclusive field force to sell its products, aligning employees, field representatives, and customers. This "circle of success" has led to strong customer satisfaction and financial performance. The company focuses on long-term relationships rather than short-term gains. CEO Ed Zore attributes their success to sticking to core values and continuing to innovate, such as by pricing long-term care products higher than competitors initially. They also focus on the large US market rather than expanding internationally.
This document discusses common myths and beliefs in private equity, specifically regarding whether investing in successive funds of the same firms is safer and more rewarding than investing in emerging managers. The authors analyzed private equity performance data to test this myth. Their analysis found no evidence that persistence, or consistently strong performance, exists among private equity fund managers. Instead, the data showed that performance varied significantly across funds for the same managers. The authors conclude that investment selection is more important than sticking with established brands in private equity.
WFG - Building Better Financial Futurespetervinhong
This business presentation provides an overview of what World Financial Group believes and it\'s mission to help people have better financial futures. It also explains why someone would want to take advantage of the WFG business opportunity.
The document is a quarterly newsletter from Krygier Wealth Management. It discusses improving consumer financial conditions in the US as default rates on mortgages, auto loans, and credit cards are falling to post-recession lows. It warns that having too many similar investments can fail to properly diversify risk, and that having too many investment strategies can make it difficult to track progress toward financial goals. It advocates having a unified investment strategy and ensuring investments are truly diversified across sectors and regions.
State Farm's advertising and marketing team created a campaign targeting 18-25 year olds, called "Convergents", to promote State Farm insurance. Research showed Convergents value simplicity and accessibility. The campaign's tagline, "That's it", positions State Farm as the easy insurance solution. Executions will showcase State Farm's agent-based model and use of technology to simplify the insurance process. The goal is to increase State Farm's brand awareness, auto insurance sales, and renters insurance sales among Convergents.
The document provides an overview of World Financial Group (WFG), including their business model, products, compensation structure, and values. WFG believes in helping middle-income individuals and families achieve financial security through education on basic financial concepts. They conduct respectful, no-pressure consultations to analyze clients' needs and recommend solutions like insurance, investments, and retirement products. WFG's hybrid business model rewards both sales production and leadership development through multiple ways for associates to earn income and clear guidelines for promotion.
The document discusses M&A opportunities during economic downturns. It notes that while M&A activity declined sharply in 2008 and 2009 due to the financial crisis, downturns can present opportunities for acquisitive companies to reshape industries. The number and value of deals dropped significantly after the bankruptcy of Lehman Brothers in September 2008. However, the capital markets have started to stabilize in 2009, and never letting a crisis go to waste, some companies are already seizing transformational M&A opportunities during this period.
Northwestern Mutual has consistently performed well financially even during difficult times for the insurance industry. It maintains a conservative investment strategy focused on fixed income, with less than 0.5% of assets exposed to subprime markets. It also takes a prudent approach to underwriting to avoid needing to raise prices on existing policies. Northwestern Mutual attributes its success to its mutual structure, which avoids pressure for short-term gains, and its emphasis on long-term client relationships through its large network of financial representatives.
Northwestern Mutual has consistently succeeded even during difficult economic times for the insurance industry. It maintains the highest possible ratings through prudent investing and conservative underwriting. Northwestern Mutual also has strong agent recruitment and training programs, allowing it to continue growing its book of business for over 150 years by prioritizing long-term client relationships over short-term gains.
Omega Insurance Brokers was established in 2003 in Dubai to provide competitive insurance services. It has grown to over 100 employees and 4000 clients. The intern was assigned to assist the accounting department by calculating sales commissions, making payments to insurance companies, and reconciling bank statements. These tasks will help keep the accounting work up to date and ensure payments are accurate.
Edward Zore, CEO of Northwestern Mutual, discusses the insurance industry in light of AIG's bailout. He notes that Northwestern Mutual had minimal exposure to subprime markets. While AIG's issues reflect broader economic problems, Northwestern remains cautious but sees no direct negative impact. Zore also comments on industry trends like life settlements, whole life policy sales increasing 5% year-to-date, and why Northwestern Mutual remains a mutual rather than publicly traded company.
The document discusses how insurers are reconsidering their fixed income and private asset investment strategies in response to persistent low interest rates and slow economic growth. It finds that insurers are increasingly focused on absolute returns, diversification through private markets like real estate and infrastructure, and managing duration risk over book yield. However, barriers like lack of suitable opportunities and regulatory uncertainty remain challenges for increasing allocations to private assets. The report surveys global insurers and analyzes their evolving investment outlook.
US Small Business Administration Role during the Economic TurmoilHaji Gulahmadov
This document provides an overview of the U.S. Small Business Administration (SBA) and its role in helping the economy during times of economic turmoil. It discusses the current economic crisis, how small businesses helped the economy in past recessions through self-employment and new business creation. It outlines actions SBA took after 9/11 to provide disaster assistance loans to small businesses affected. The document argues that targeted lending through SBA is needed to help small businesses access capital and help the economy recover from the current recession.
The document discusses building a successful business in the financial services industry through recruiting. It emphasizes the importance of having a system to duplicate success at scale. Key aspects include recruiting consistently to build a large team, becoming a VP quickly, focusing on recruiting other leaders, and thinking long-term about building an organization with many VPs over time. Success requires working on rather than just in the business, and surrounding oneself with other top producers.
1) AEGON N.V. is an international insurance, pension, and investment group based in The Hague, Netherlands with businesses in over 20 markets globally.
2) AEGON N.V. was ranked one of the world's top companies in 2009 by Forbes for its sales, profits, assets, and market value.
3) World Financial Group provides insurance, investment, and retirement planning products and services from select companies to help people achieve their financial goals.
This document provides information about World Financial Group (WFG), including who they are, their mission and vision, strategic alliances, products offered, how to build income through WFG, and options to become a client or business owner. Key details include:
- WFG is a financial services company made up of an insurance agency and mutual fund dealer that offers products like mutual funds, insurance, and retirement plans.
- Their mission is to help families achieve financial independence and their vision is to build the world's best financial services organization.
- Associates can build income by helping families and receiving commissions, with examples showing potential monthly earnings ranging from $2,520 to $15,480.
- Options
Financial advisors are increasingly recommending safer, more conservative investments in response to the economic uncertainty, such as bank deposits, bonds, and dividend-paying stocks. Advisors are promoting the benefits of protecting principal and seeking modest growth over riskier strategies that could yield higher returns. Meetings with clients focus on educating them about risk tolerance and stress-testing portfolios. While traditional investments have merit, diversification and higher cash reserves are also emphasized given the challenges of relying solely on any one type of investment.
Personal use only, do not reproduce.2021 02-POLY33
This document discusses various strategies that sports organizations and businesses can take during times of financial hardship, including contraction, informal reorganization, and asset removal. It provides examples of companies in the sports industry that have undergone mergers or acquisitions to reduce costs through economies of scale. It also discusses signs that a business may be facing financial trouble, such as a lender calling back a loan, and options for addressing debt obligations through informal or formal processes like bankruptcy.
This document discusses short selling versus naked short selling. It defines short selling as borrowing shares to sell with the expectation that the price will fall so they can be bought back at a lower price. Naked short selling is defined as illegal because it involves selling shares that are not actually owned. The document also examines the uptick rule versus mark-to-market accounting and which may be more effective during a financial crisis. It provides background on hedge funds and how some engaged in market manipulation through naked short selling, which some argue contributed to the troubles of firms like Bear Stearns and Lehman Brothers.
World Financial Group (WFG) is a financial services marketing company made up of thousands of associates in the United States and Canada. It helps middle-income families achieve financial independence through products from hundreds of companies. WFG has an exclusive broker-dealer and is among the top 1% of broker-dealers in the U.S. It is owned by AEGON, one of the world's largest insurance and pension groups. WFG offers training and a business system to help associates build their own businesses and teams to earn commissions on financial products and services.
World Financial Group provides financial services and products to help people achieve better financial futures. It uses a hybrid business model that rewards associates for both sales production and leadership in developing other associates. The opportunity allows associates to earn income through their own sales, overrides on other associates' sales, and residuals. World Financial Group focuses on serving middle-income individuals and families and provides training and support to help associates be successful.
This newsletter from Northland Wealth Management provides updates on financial markets and planning strategies. It discusses the uncertainty caused by Brexit and the US election, and how concentrated positions in single assets can be addressed. It also describes incentive trusts that can motivate positive behavior in beneficiaries. Northland Wealth believes alternative investments can complement traditional portfolios by improving risk-return, and attended a conference on the evolving financial industry.
Northwestern Mutual has a unique business model of using an exclusive field force to sell its products, aligning employees, field representatives, and customers. This "circle of success" has led to strong customer satisfaction and financial performance. The company focuses on long-term relationships rather than short-term gains. CEO Ed Zore attributes their success to sticking to core values and continuing to innovate, such as by pricing long-term care products higher than competitors initially. They also focus on the large US market rather than expanding internationally.
This document discusses common myths and beliefs in private equity, specifically regarding whether investing in successive funds of the same firms is safer and more rewarding than investing in emerging managers. The authors analyzed private equity performance data to test this myth. Their analysis found no evidence that persistence, or consistently strong performance, exists among private equity fund managers. Instead, the data showed that performance varied significantly across funds for the same managers. The authors conclude that investment selection is more important than sticking with established brands in private equity.
WFG - Building Better Financial Futurespetervinhong
This business presentation provides an overview of what World Financial Group believes and it\'s mission to help people have better financial futures. It also explains why someone would want to take advantage of the WFG business opportunity.
The document is a quarterly newsletter from Krygier Wealth Management. It discusses improving consumer financial conditions in the US as default rates on mortgages, auto loans, and credit cards are falling to post-recession lows. It warns that having too many similar investments can fail to properly diversify risk, and that having too many investment strategies can make it difficult to track progress toward financial goals. It advocates having a unified investment strategy and ensuring investments are truly diversified across sectors and regions.
State Farm's advertising and marketing team created a campaign targeting 18-25 year olds, called "Convergents", to promote State Farm insurance. Research showed Convergents value simplicity and accessibility. The campaign's tagline, "That's it", positions State Farm as the easy insurance solution. Executions will showcase State Farm's agent-based model and use of technology to simplify the insurance process. The goal is to increase State Farm's brand awareness, auto insurance sales, and renters insurance sales among Convergents.
The document provides an overview of World Financial Group (WFG), including their business model, products, compensation structure, and values. WFG believes in helping middle-income individuals and families achieve financial security through education on basic financial concepts. They conduct respectful, no-pressure consultations to analyze clients' needs and recommend solutions like insurance, investments, and retirement products. WFG's hybrid business model rewards both sales production and leadership development through multiple ways for associates to earn income and clear guidelines for promotion.
The document discusses M&A opportunities during economic downturns. It notes that while M&A activity declined sharply in 2008 and 2009 due to the financial crisis, downturns can present opportunities for acquisitive companies to reshape industries. The number and value of deals dropped significantly after the bankruptcy of Lehman Brothers in September 2008. However, the capital markets have started to stabilize in 2009, and never letting a crisis go to waste, some companies are already seizing transformational M&A opportunities during this period.
Northwestern Mutual has consistently performed well financially even during difficult times for the insurance industry. It maintains a conservative investment strategy focused on fixed income, with less than 0.5% of assets exposed to subprime markets. It also takes a prudent approach to underwriting to avoid needing to raise prices on existing policies. Northwestern Mutual attributes its success to its mutual structure, which avoids pressure for short-term gains, and its emphasis on long-term client relationships through its large network of financial representatives.
Northwestern Mutual has consistently succeeded even during difficult economic times for the insurance industry. It maintains the highest possible ratings through prudent investing and conservative underwriting. Northwestern Mutual also has strong agent recruitment and training programs, allowing it to continue growing its book of business for over 150 years by prioritizing long-term client relationships over short-term gains.
Omega Insurance Brokers was established in 2003 in Dubai to provide competitive insurance services. It has grown to over 100 employees and 4000 clients. The intern was assigned to assist the accounting department by calculating sales commissions, making payments to insurance companies, and reconciling bank statements. These tasks will help keep the accounting work up to date and ensure payments are accurate.
Edward Zore, CEO of Northwestern Mutual, discusses the insurance industry in light of AIG's bailout. He notes that Northwestern Mutual had minimal exposure to subprime markets. While AIG's issues reflect broader economic problems, Northwestern remains cautious but sees no direct negative impact. Zore also comments on industry trends like life settlements, whole life policy sales increasing 5% year-to-date, and why Northwestern Mutual remains a mutual rather than publicly traded company.
The document discusses how insurers are reconsidering their fixed income and private asset investment strategies in response to persistent low interest rates and slow economic growth. It finds that insurers are increasingly focused on absolute returns, diversification through private markets like real estate and infrastructure, and managing duration risk over book yield. However, barriers like lack of suitable opportunities and regulatory uncertainty remain challenges for increasing allocations to private assets. The report surveys global insurers and analyzes their evolving investment outlook.
Many insurers recognize the need to transform but are struggling to achieve transformational change. While many insurers see themselves as early adopters of transformation, less than a quarter admit to being late or laggards. Successful transformation will require reinventing nearly every part of the business. While insurers believe they have skills like designing new operating models, over half say they cannot extract and maintain value from initiatives. More than a quarter failed to achieve expected value from their last initiative. Deeper, more fundamental change is required for insurers to reinvent themselves for the future.
The document provides an overview of insurance and the operations of insurance companies. It discusses how insurance works by pooling together funds from many individuals to pay for losses, thereby spreading out costs. It describes the key roles of underwriters in assessing risks and ratemakers in setting premium prices. It also discusses how insurance companies invest premium payments to generate revenue and have become major capital suppliers. In summary, the document outlines the basic concepts of insurance, the roles of insurance companies, and how they operate financially.
Page 95 Journal of the International Academy for Case Stud.docxbunyansaturnina
Page 95
Journal of the International Academy for Case Studies, Volume 18, Number 1, 2012
WESTERN NATIONAL INSURANCE
Michael J. Pesch, St. Cloud State University
David L. Eide, Western National Insurance
Subba Moorthy, St. Cloud State University
CASE DESCRIPTION
The primary subject matter of this case concerns the approaches used to methodically
turn a financially struggling insurance company into one of the top regional insurers in the
Midwest. Strategy formulation and execution in the insurance industry, aligning functional
strategies to support the organization’s strategy, and leadership competencies in turnaround
situations are major themes. The case has a difficulty level of 3-5 and is appropriate for junior
and senior-level courses, as well as a first-year graduate course. The case is designed to be
taught in a ninety-minute class period, with two hours of outside preparation by students.
CASE SYNOPSIS
An insurance company is at risk of falling into a financial death spiral and brings in a
new CEO to turn the company around. The CEO and his team take specific measures to bring
the company back to financial health. These include mitigating risk, branding the company,
solidifying agent relationships, ramping up technology, overhauling facilities, diversifying the
business, and becoming an employer of choice. Growth has stalled and the company now is
considering whether to change its business model from selling insurance products solely through
independent agents to also selling directly to consumers via the Internet and an internal sales
force.
INTRODUCTION
In September 2009, Stu Henderson, CEO of Western National Insurance, celebrated with
his employees the announcement that A.M. Best, the premier insurance rating agency, had
upgraded Western to a full A (Excellent). With this upgrade, Western became the only insurance
company in the nation to be upgraded three times in the past eight years on its own merits, i.e.
without external capital injections. This announcement came only two months after Western was
named for the fourth time in five years to the Ward’s 50 Benchmark Group of top performing
property/casualty companies in the United States. (Ward’s is an independent consulting firm.
Each year, based on published financial numbers, they select the top 50 property/casualty
insurance companies among the 3,000 companies that operate in the United States. Return on
Page 96
Journal of the International Academy for Case Studies, Volume 18, Number 1, 2012
surplus, combined loss ratio, and other factors are compiled to determine this prestigious
ranking.) In the crowded cafeteria, Henderson held up his can of diet ginger ale and made a
toast:
At a time when the economic news has many thinking that financial stability is the
exception rather than the rule, we are pleased to have first the Ward Group, and now A.M. Best
recognize Western National’s role as an insuranc.
This document summarizes a panel discussion on opportunities for insurance companies and financial institutions to collaborate on distributing insurance products. The panelists represented an insurance company, consulting firm, and another insurance company. They discussed how financial institutions evaluate potential insurance partners based on factors like ratings, stability, asset management, and product offerings. Recent growth in annuity sales through banks was noted, with projections of $40 billion annually by the mid-1990s. Reasons for the collaboration included both parties pursuing new distribution opportunities and revenue sources in changing market conditions. The panel aimed to provide perspective on this developing market area.
Sgroi Financial, an independent financial planning firm, has formed a partnership with Lawley, a top 100 insurance agency, to enhance client benefits. The partnership will allow both firms to offer a wider range of financial products and services to their clients. Sgroi Financial has historically provided life and long term care insurance and sees this partnership as providing substantial benefits to their clients through Lawley's additional insurance expertise. Both firms are committed to serving their local communities in Western New York.
This document brings together a set
of latest data points and publicly
available information relevant for
Financial Services Industry. We are
very excited to share this content and
believe that readers will benefit from
this periodic publication immensely.
Private Wealth A Class Of Its Own Oct2008ernestbarry
M Financial Group is an exclusive consortium of 118 independent financial advisory firms that specialize in serving exceptionally wealthy clients. It was founded in 1978 to create community among advisors and influence insurance carriers to create better products. Through sharing experience data from its affluent client base, M Financial was able to negotiate proprietary insurance products with superior pricing. By monitoring client outcomes, M Financial is able to return excess profits to clients through lower premiums. Its success demonstrates the power advisors can have by banding together.
AimcoR Group is an insurance marketing organization that differs from competitors by operating at a higher, more efficient level through exclusive membership, open communication and a culture of sharing. The organization is focused on transforming the business through alternative distribution channels, technology adoption, and shifting from a product focus to new producer enablement and consumer engagement. AimcoR aims to achieve sustainable growth and become a dominant player in the future insurance brokerage landscape.
Annuity Market After DOL 95-1: Where Have All The Insurers GoneJay Dinunzio
This document summarizes a panel discussion on the state of the annuity market after the Department of Labor's Interpretive Bulletin 95-1. It provides background on the boom in the annuity market in the 1980s when many pension plans were terminating and insurers were aggressively competing. It then discusses the failures of Executive Life in 1990 and Mutual Benefit in 1991, which caused panic and a lack of insurers in the market. Insurers encountered difficulties terminating pension plans as they had to find the "safest available" insurer and some sponsors struggled to find any insurer. This resulted in more lump-sum payouts rather than annuities.
With heavyweights like PIMCO entering the managed futures mutual fund space, interest appears to be rising from both investors and asset managers in this investment vehicle. PIMCO recently filed documents with the SEC for a new mutual fund that will pursue a quantitative trading strategy to capture trends in global markets and commodities. While PIMCO declined to comment, analysts from Morningstar indicate the interest from a large firm like PIMCO shows ongoing demand for managed futures despite poor performance in recent years.
This document discusses the evolution of CPA firms providing wealth management services. It argues that true wealth management involves a holistic and customized approach to clients' entire financial picture, rather than just facilitating access to products. Most CPA firms begin by offering basic access to products but can evolve to a more sophisticated wealth management model by deepening their solutions, client engagement processes, and practice structure over time. The optimal model involves comprehensive client service, an effective organizational structure, and strong financial performance aligned with the firm's goals.
Private Equity Turns To Performance-Based Metrics To Get Deals DoneScott Tominaga
With little visibility on revenue or the timing for an economic recovery, middlemarket private equity firms are turning to a tried and true provision to get transactions to the finish line: earn-outs
Selective Insurance Group reported financial results for the first quarter of 2009. Net loss was $0.25 per share compared to net income of $0.38 per share in 2008 due to lower investment income and realized losses. Operating income was $0.05 per share. While insurance operations performed well, investment results were challenged by losses from alternative investments and impairments. The company also announced a quarterly dividend of $0.13 per share.
This document provides summaries of several articles from an investment magazine. It discusses how Millennials view money and investing differently than previous generations, focusing more on social media companies and expecting transparency. It also summarizes an article on how corporate stock buybacks provide continued support for stock prices. Finally, it interviews an advisory couple on how they get to know clients personally and use active money managers to construct customized portfolios tailored to each client's needs and risk tolerance.
This document promotes a captive insurance program called RE-PAID that allows mid-sized businesses paying large insurance premiums to retain some of their risk and potentially earn profits from their premiums. Businesses transfer a portion of their risk for $100,000s-1,000,000s in premiums. Any profits from claims being lower than premiums are returned to the business. The program aims to give businesses more control over their risk and potential to earn money from their premiums like large corporations do through captive insurance.
1. As seen in the May 2009 issue of
InsuranceNewsNet Magazine.
Secrets of Our Success Northwestern Mutual
Survival of the By Steven A. Morelli,
Senior Editor
Fittest How Northwestern Mutual Does it Best Year After Year
I
t’s not a pretty picture these days: Life insurance com- For most people in the life/health industry, it is not
panies are fighting for their lives, begging for bailouts, surprising that Northwestern Mutual, America’s largest
watching their profits and ratings slip. Insurers are direct provider of life insurance, would be doing well
laying off workers and slashing dividends, some for the even in the worst times. Its success transcends time.
first time in their history. Carriers are cutting annuity It maintained the No.1 position of its industry in the
supply to keep reserves from fading. history of Fortune magazine’s “most admired” survey,
Alongside this scrum for survival, an alternate universe for 25 years (until this year, when Fortune combined the
hums away. It is where an insurance company conducts a American and world lists).
conservative investment strategy quarter after quarter over What’s the secret to the company’s success? Doing
decades, holds the highest ratings possible, builds a steady the right thing. Like all paths to achievement, it is not
but burgeoning book of business, plans to pay out $4.6 hidden – just tough. You want to lose weight? Diet and
billion in dividends this year, and adds to its field force. No, exercise. You want to run a successful insurance com-
it is not 1995; it’s Northwestern Mutual. pany? Promise and deliver.
2. For the full online issue, go to www.insurancenewsnetmagazine.com/may09
Secrets of Our Success Profiles on Industry Newsmakers
A big part of the company’s success
derives from being a mutual com- Northwestern Mutual Quick Facts
pany. Like its well-respected brethren
Founded: March 2, 1857
such as New York Life and MassMu-
tual, Northwestern does not have to $155 billion in total assets
dance to Wall Street’s tune, which, $13.4 billion in surplus and asset valuation reserve
of course, has been a bit dissonant
$22 billion in revenues
lately. The company does not have to
chase after the short-term gains that 3.3 million life insurance policyowners holding 5 million policies with more
stockholders demand. But the com- than $1 trillion of insurance in force
pany did indulge in risky investing – $6.1 billion in benefits paid to policyowners or their beneficiaries in 2008
slightly. The company had less than a
$4.6 billion in dividends expected to be paid to policyowners in 2009
half of 1 percent of its assets exposed
to subprime markets at the end of Products sold exclusively through the Northwestern Mutual network
last year, when other companies were Northwestern Mutual’s network of financial representatives comprises
gasping from their toxic assets. more than 7,000 professionals nationwide
That’s part of the company’s long
game. Twenty percent of its investments
are in a diversified portfolio of equities. Northwestern has a legendary and disability. New representatives are
The other 80 are in fixed income securi- recruiting and retention program. In expected to focus on that bottom layer
ties. The company learned the lesson of its 2007 report, Moody’s said, “The for the first five years and expand their
prudent investing when many people Northwestern Mutual Financial Net- client base. Next comes wealth accu-
did – during the Great Depression – work is one of the best trained, most mulation, and at the top are wealth
and has not forgotten it, no matter what productive and efficient distribution preservation and distribution.
high-return thrill ride pulled up. forces in the industry.” “Our representatives are out there
That’s also the company’s way with While others in the industry forming relationships with people
products. The company prices prod- are decrying the absence of new and engaging in financial security
ucts based on prudent underwriting, blood, Northwestern is pulling in planning,” Oberland says. “It’s the
even when the actuaries crunch college students and young gradu- nature of our business.”
numbers that come in above market. ates by the thousands. In 2008, the Recruits are taught that nature over
“Our goal is to price our products so company recruited 2,300 college the first 60 working days, much of
that we never have to go back to our interns and hired 2,089 new full-time which is spent learning the Granum
policyowners and ask for a premium representatives. system. Al Granum was North-
increase,” according to Gregory C. For 13 consecutive years, the western’s top agent for decades and
Oberland, executive vice president company’s internship program has developed a system in the 1960s that
of insurance and technology. “We been ranked among America’s “Top is still in use today. It is the 10-3-1
never want to be in the position with Ten Internships” by the Internship method, which means that for every
our policyowners where we need to Informants in the Vault Guide to Top 10 contacts comes three appoint-
raise prices on in-force policies or Internships. Training magazine named ments leading to one sale.
get tougher with claims” to make the Northwestern in its 2009 “Training Todd Schoon, Northwestern’s
numbers work, continued Oberland. Top 125.” And in 2008, for the third senior vice president of agencies,
Even when they’re not competing year in a row, BusinessWeek magazine swears by the ratio. He said he
on price, the sales force has stuck named Northwestern one of the “Best reviewed his sales over decades and
with the company and “The North- Places to Launch a Career.” it fell within that pattern. Even the
western Mutual Way,” knowing that Once new people are aboard, sales record of the entire New York
a conservative underwriting strategy Northwestern gives them tools and City office followed the numbers.
wins over time, Oberland says. time. First, they are introduced to the The next piece is the practice
The sales force is another fea- financial security pyramid. At the base management system, part of which
ture that sets the company apart. is risk protection, covering early death is also an outgrowth of a Granum
3. For the full online issue, go to www.insurancenewsnetmagazine.com/may09
Secrets of Our Success Profiles on Industry Newsmakers
method, the one-card system that average Northwestern Mutual client
allows financial representatives to relationship can often exceed 40
keep track of their clients’ needs years, Schoon says.
through the years. “It’s all organic. We have 87 net-
Schoon says Northwestern work offices across the country led by Northwestern Mutual Financial Network
doesn’t want new representatives to managing partners,” Schoon says. “All is the marketing name for the sales and
focus entirely on the investment side 87 managing partners grew up within distribution arm of The Northwestern Mu-
of the business, which is why the our system. They generally sold for tual Life Insurance Company, Milwaukee,
one-card system is so useful. “It’s five to 10 years. They’ve had another WI (NM) (life and disability income insur-
really about client and relationship five years of leadership experience. So ance, annuities) and its subsidiaries and
building, and helping clients achieve when they are appointed managing affiliates. The article describes the invest-
financial security through a full partners, they’ve been in our system ment strategy for the managed assets in
suite of financial services,” he said. 10 to 15 years. It all starts with treat- Northwestern Mutual’s general account.
That is also part of the company’s ing your recruits right.” The dividend scale and the underlying
long-term perspective, since the And doing the right thing. interest rates are reviewed annually and
are subject to change. Future dividends
are not guaranteed.
Did you know?
Did you know the vessel made
famous by Gordon Lightfoot
in The Wreck of the Edmund
Fitzgerald was named after a
Northwestern Mutual president?
The ore carrier was named for
Northwestern Mutual President
Edmund Fitzgerald, the compa-
ny’s president from 1947-1958.
It was built by Northwestern
Mutual as an investment and
leased for operation to Oglebay-
Norton, a mining and shipping
company. Construction started in
1957 at the River Rouge Ship-
yards near Detroit. Northwestern
Mutual’s Board of Trustees voted
to name the carrier in Fitzger-
ald’s honor as he was approach-
ing retirement. Launched in June
1958, it was the largest vessel
to hit fresh water and set many
volume records on the Great
Lakes in its years of service. It
sank in a storm on Nov. 11, 1975,
taking 29 sailors with her.