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Bryan Adams (Photo: Integrity Marketing)

Life Health > Running Your Business

Integrity Marketing to Acquire Annuity Designer Annexus

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What You Need to Know

  • Integrity Marketing has relationships with about 500,000 agents and advisors, and 11 million clients.
  • Annexus expects to place 2022 annuity sales that will generate about $7 billion in annuity premium payments.
  • Annexus also expects to place life insurance sales that will produce about $150 million in premium payments.

Integrity Marketing — a big, rapidly growing life insurance and annuity distributor — today announced a deal that could turn it into a giant life and annuity product designer.

The Dallas-based company has agreed to acquire Annexus, a company best known as a company that designs annuities and permanent life insurance products for companies like AIG, Athene, Nationwide, Securian and Transamerica.

Neither company has talked about the deal price.

What It Means

A company with roots in product distribution, rather than general account management or claim administration, could soon play a bigger role in shaping the products clients use to create and protect streams of retirement income.

For agents and advisors, the question may be how Integrity Marketing will balance the goals of creating products that appeal to retirement savers at the point of purchase and that work as expected when the product owners file claims or ask for withdrawals.

The Companies

Integrity Marketing came to life in 2006.

The company started out as a firm that focused on distributing Medicare Advantage plans and Medicare supplement insurance policies.

In 2016, the company began to work with HGGC, a private equity firm. It now has relationships with two other private equity firms, Harvest Partners and Silver Lake, as well as with HGGC.

Today, Integrity Marketing has relationships with about 500,000 agents and advisors and 11 million clients.

It estimates that it will help insurers place 2022 sales that will generate $20 billion in premium payments, and that its RIA and broker-dealer arms will help financial services companies oversee $20 billion of assets under management and advisement.

Annexus was also formed in 2006.

The company is best known for its efforts to develop nonvariable indexed annuity and indexed universal life products and to create the modern U.S. markets for those products.

Funds advised by Blackstone acquired a minority stake in Annexus in 2019. The size of the investment was not disclosed but was described as being “strategic.”

Annexus expects to place 2022 annuity sales that will generate about $7 billion in annuity premium payments.

The Deal

Integrity Marketing says it will buy out previous Annexus investors, including the funds advised by Blackstone.

Shurts will become a managing partner at Integrity Marketing.

Integrity Marketing’s Other Recent Deals

Since early May, when Integrity Marketing acquired Ash Brokerage, the company has announced agreements to acquire, or completed acquisitions of, many companies other than Annexus, including:

Abernathy Financial Services, a Fort Walton Beach, Florida-based life and annuity distributor that did business with about 200,000 consumers in 2021.

Velocity Life Insurance Agency, a Roanoke, Virginia-based final expense, mortgage life, indexed universal life and annuity distributor that did business with about 40,000 consumers in 2021 and placed business that led to $33 million in payments.

Hovis & Associates, a St. Louis-based Medicare plan and retirement services product distributor that does business with about 25,000 consumers per year.

PHP Agency, an Addison, Texas-based life and annuity field marketing organization with relationships with about 27,000 insurance agents.

Ritter Insurance Marketing, a Harrisburg, Pennsylvania-based life and health independent marketing organization with relationships with 15,000 independent insurance agents.

Hegemon Group International, an Alpharetta, Georgia-based life insurance brokerage with relationships with 10,000 independent insurance agents, and 2022 sales that should lead to about $100 million in annual life insurance premium payments and about $200 million in annual annuity premium payments.

Russek Financial Services, a North Haven, Connecticut-based life and financial services firm with $75 million in assets under management and advisement.

SkyPoint Financial and Insurance Services, a Las Vegas-based life, final expense, annuity and mortgage protection distributor.

The Thinking

Bryan Adams, Integrity Marketing’s CEO, said in a comment, included in the deal announcement, that the deal will change the way insurance and financial planning products are developed and distributed.

“The partnership will give Integrity access to Annexus’ deep product development and distribution partnership expertise,” Adams said.

Ron Shurts, the Annexus CEO and an Annexus co-founder, and Don Dady, the other co-founder, said the deal should help Annexus expand its reach and improve the compensation package for employees, by giving employees access to an Integrity Marketing employee ownership program.

Pictured: Bryan Adams. (Photo: Integrity Marketing)