National Financial Partners Corp. says it continued to acquire financial services distribution firms in the second quarter.[@@]
NFP, New York, a company that is building a national distribution network through acquisitions and alliances, is reporting $12 million in net income for the latest quarter on $205 million in revenue, up from $10 million in net income on $152 million in revenue for the second quarter of 2004.
NFP says it paid a total of $4.9 million in cash and 662,000 shares of NFP common stock for 7 direct acquisitions and 2 “sub-acquisitions” by owned firms.
In the second quarter of 2004, NFP paid $7.9 million in cash and 139,500 shares of NFP common stock for 4 direct acquisitions and 1 sub-acquisition.
The company now has a network of about 160 company-owned firms and 210 affiliated firms.
In related news, NFP is reporting that many of the firms it owns have received subpoenas regarding compensation arrangements. Some of the subpoenas came from the New York attorney general’s office.
NFP says it conducted an internal review of its insurance operations and found no evidence of bid-rigging.
The company also faces a class-action suit filed on behalf of policyholders. The lawyers who filed the suit say the policyholders are victims of the kinds of bid-rigging schemes uncovered at the big commercial insurance brokers.
“Our ultimate liability, if any, in connection with these matters is uncertain and subject to contingencies that are not yet known,” NFP says in a discussion of its second-quarter results.