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WFG: Comp Probes Could Lead To Acquisitions

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NU Online News Service, Nov. 16, 2004, 6:44 p.m. EST

Total elimination of contingency commissions could cost insurance brokers about 25% of their composite earnings.[@@]

WFG Capital Advisor L.P., Harrisburg, Pa., an investment bank that helps arrange life insurance agency and brokerage mergers and acquisitions, has published that estimate in an analysis of the effects of the recent wave of broker compensation investigations.

Many of the stronger brokerage firms would try to replace the lost contingency commission revenue by acquiring other brokerage firms, WFG predicts.