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Tuesday, Jul 23, 2024

Independent Linsco/Private Goes Long on Pacific Life’s Stock Brokerages

Newport Beach-based Pacific Life Insurance Co. is selling three of its stock brokerages after nearly a year of negotiations.

San Diego-based Linsco/Private Ledger Corp., one of the largest independent stock brokerages, plans to buy Pacific Life’s Mutual Service Corp. of West Palm Beach, Fla.; Los Angeles-based Associated Financial Group; and Waterstone Financial Group of Itasca, Ill.

Terms of the deal, expected to close in June, weren’t disclosed.

The deal involves 2,200 brokers and advisers, who generate $350 million in yearly revenue, according to trade publication Investment News.

Linsco/Private Ledger is buying the brokerages in a bid to gain market share, according to Mark Casady, the company’s chief executive.

The acquisition “is a major cornerstone for our growth strategy in an industry where, increasingly, size and scale matters,” Casady said.

The brokerages are set to continue operating under their own names, he said.

Pacific Life is set to keep its other brokerages, M.L. Stern & Co. in Beverly Hills and United Planners’ Financial Services of America in Phoenix.

The company is selling the other brokerages as part of a strategy to focus on its mainstay insurance and annuity businesses, said Jim Morris, chief operating officer of Pacific Life.

Pacific Life’s brokerages are part of a long running effort to expand into broader financial services.

, Orange County Business Journal


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