A life insurance distributor says growing use of new digital application system helped it fight off some of the effects of the U.S. Department of Labor’s fiduciary rule.
The Marketing Alliance Inc. (TMA) is reporting $265,076 in net income for the third quarter on $7.7 million in revenue, compared with a net loss of $59,682 on $6.3 million in revenue for the third quarter of 2016.
The St. Louis-based company distributes life insurance, annuities and long-term care insurance through a network of independent agencies. It also owns an earth moving and excavation business and nine children’s play and party facilities.
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Commission revenue at the insurance distribution unit increased to $6.1 million, from $4.9 million.
The amount of commissions and bonuses the company paid also increased, to $4.5 million, from $3.5 million.
Uncertainty about the final form of the Labor Department’s fiduciary rule continued to hurt annuities sales, Timothy Klusas, TMA’s chief executive officer, said in a statement about the third-quarter results.
TMA increased insurance distribution revenue, in spite of the annuity sales slump, thanks to a digital multi-carrier application system, Klusas said.
Access to the digital application system helped TMA’s own distributors attract producers and financial advisors, Klusas said.
TMA began selling products from Pacific Life, and that also helped the third-quarter results, Klusas said.
—Read Jack DeWald elected Marketing Alliance chairman on ThinkAdvisor.