Can the
Larry Roth, the group’s chief executive officer, seems to think so.
Because of its affiliation with AIG, the advisor group, which includes
“It got to the point with our advisors that they said if this is what we have to deal with we can’t be a part of AIG because we can’t do business,” Roth says in an interview that will appear in the October issue of Financial Planning. “The only reason we were willing to sell it is because the management and the advisors didn’t feel that we could operate under the circumstances that AIG found itself in January, February and March.”
That all changed when Robert Benmosche came on board on Aug. 10 as new chief executive and president of AIG. He immediately began an inventory of all the company’s imminent transactions, which included the advisor group—a business Benmosche was very familiar with from his time competing as a rival at insurance giant,
“It was clear to me at dinner and the next morning that he not only understood the business, but appreciated the business and viewed it as strategically important to any company of our type, not just AIG,” says Roth. “So I was not completely shocked to get a call that Friday (Aug. 14) saying that based on conversations that week and his understanding of the business that Bob decided it didn’t make sense to sell the advisor group. When you work for any large company, if the CEO says that something doesn’t make sense—then by definition—it doesn’t make sense. And I agree with him completely.”
Benmosche is aggressively taking steps to re-energize the advisor group. Roth says the network is back in business. A national education conference is booked for the first week of October in Atlanta. A joint meeting with top advisors for Royal Alliance and SagePoint is scheduled for that same week in California. Roth believes the group will be back in the recruiting business in the next eight months or so as they roll all out of their advertising campaigns.
“Although we changed direction abruptly, I think we changed our course to the right direction,” Roth says. “I think a lot of advisors like being a part of a large financial services company and that’s why they came here in the first place.”