State Farm and Phoenix Life?

[warnerins]

FYI,
I had a conversation with my State Farm contact yesterday and she was really complaining about SF no longer associating with Phoenix (life?). Apparently she had placed over a million of premium and annuity money with this company last year and had just received email regarding the break-up.

I was not even aware that SF affiliated with another carrier or allowed their agents to sell other carrier products. I guess they do or did.

That's pretty much all the info I have.

 

[moonlightandmargaritas]

I had a conversation with my State Farm contact yesterday and she was really complaining about SF no longer associating with Phoenix (life?). Apparently she had placed over a million of premium and annuity money with this company last year and had just received email regarding the break-up.

I was not even aware that SF affiliated with another carrier or allowed their agents to sell other carrier products. I guess they do or did.

The State Farm-Phoenix deal dates back to 2001 when Phoenix demutualized. SF is/was a 5% owner of PNX as well.

Due to serious mismanagement, Phoenix is on it's last legs. When their ratings were cut (again) last week, they left SF (and some other distribution partners) no choice.

With the amount of life and annuity premium SF was pushing through Phoenix, it's highly doubtful that PNX can survive.

State Farm also allows it's agents to sell major medical plans with Assurant-Time.

 

[warnerins]

Moon,

What are the ramifications for a SF agent. Now having to explain to the client, SF's position on the failed relationship - after (probably) pushing the product as SF quality.

Is there an opportunity for you Indy life and annuity guys?

Is there a product or carrier that SF will replace Phoenix with?

 

[moonlightandmargaritas]

Moon, What are the ramifications for a SF agent. Now having to explain to the client, SF's position on the failed relationship - after (probably) pushing the product as SF quality.

Yes, I guess it could leave a State Farm agent with a little egg on their face. However anyone getting financial advice from a SF agent probably gets what they deserve...

 

[Joseph H. Deacon III]

I ran into a lawyer a few years back that had a term policy with Phoenix. I assume the block will be gobbled up by another carrier? Or did I misread that?

Maybe I will call that guy back and see if he wants to look around again.