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National Financial Partners Corp. (NFP)

BAML 2012 Insurance Conference

February 15, 2012; 03:45 pm ET


Jessica Bibliowicz - Chairman, President & Chief Executive Officer

Donna Blank - Chief Financial Officer

Doug Hammond - Chief Operating Officer

Abbe Goldstein - Investor Relations

Ed Spehar - Research Analyst, BofA Merrill Lynch


Ed Spehar - Research Analyst, BofA Merrill Lynch


Ed Spehar

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» National Financial Partners' CEO Discusses Q4 2011 - Earnings Call Transcript
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» National Financial Partners CEO Discusses Q2 2011 Results - Earnings Call Transcript

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Our next presenter is Jessica Bibliowicz from NFP, Chairman, President and CEO of the company. Unlike the other companies I cover, NFP is a distributor, not a manufacturer of insurance products. It derives its revenue from distribution of employee benefits, life insurance property casualty and asset management. So again, unlike insurance companies, it doesn’t have the level of balance sheet risk that obviously is a big concern in the market today.

So with that, I’d like to pass it to Jessica to get an update on the NFP story.

Jessica Bibliowicz

And I do know what time it is, so I will try and keep this a little bit lively today. Joining me is also Donna Blank our CFO and we also have Doug Hammond here who is our Chief Operating Officer and Abbe Goldstein who is our IR.

So let me just run though this. I’m sure you all know about forward-looking statements. I won’t keep you on here too long. Okay, and just to give you a sense of NFP and I think 2011 was really a very strong year for our company and a year where you can really see the strengths of our business and of our value proposition and as Ed says, we have the wonderful position of being right in the front of the clients, not actually manufacturing the products. So open architecture is a very big deal to us.

So we really are a leader and our ability to provide services in the benefits arena, insurance and wealth management. We have built the company through the organic growth of the businesses and we are also a very active acquirer. And one of the reasons why 2011 was so critical to us was that you saw us come back into the acquisition world and particularly in the world of employee benefits and property and causality.

Open architecture as I mentioned before is absolutely key to us. We really believe that that client relationship is everything and to be in a conflict to free environment to help client solve the problems is what differentiates in the market place and then finally, after some rough times during the downturn and I’ll kind of walk though the evolution of the company, we are really very well positioned for growth as we look forward.

We are organized in three client segments. Our first, our largest and the client segment that delivers the most recurring revenue is our corporate client group. There we provide health and welfare benefits to our corporate clients. We are in the 401-K business, we are in the ancillary business, we are in the group, life group disability business and then last year one of our major acquisitions was in the PNC business, to really help build our presence there, so we could also cross sell in that market place.

The majority of our corporate business is in the small middle market place, which we think has great opportunity for us. It’s really a big part of the growth of our country and in our executive benefits businesses where we actually deal with companies that tend to be larger in the fortune 100. So the majority of our business is in this sort of 100 to 3000 live world and then we do have some specialty areas that go all the way up to the Fortune 100. We are the eighth largest global insurance broker in the world. I think people don’t always realize that about us, but we really built our presence there.

Our second client segment is our individual client group. That’s where our life insurance business is as well as our wealth management business and I will again talk about the evolution of the company in a minute, but that’s really where we handle people that are in the high note worth market place. Our wealth management business has been extremely strong and its our life insurance business that of all of our categories has had the most challenges in this most recent environment and I’ll talk a little bit about that in a minute.

And then finally our third segment is our segment that services Independent Advisors in the market place and that’s our broker dealer and our registered investment advisor, where a top 10 broker dealer or registered investment advisor business has grown substantially and we have continued to invest in that business, so that we can really grow that business through the recruiting or independent advisors who are really looking for a much more transformational way to run there business.

So those are our three categories. Again, all independent, all of them we think have very storing growth potential.

Lets see if I can make these arrows work. I mentioned Open Architecture and again I think for us the vendor relationships are so important to us and what we are seeing today, particularly with a lot of the well diversified companies is that they look a lot like us. When you think of some of these major names up there, they might be dealing in the life insurance business, they will be the variable annuity business, they’ll be the group life business, they will be in the ancillary business, the benefit side and we really as a company can have a multi point relationship with them.

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