As the broad market continues its free fall, independent broker-dealer Woodbury (Minn.) Financial Services Inc. is grappling with changes in senior management and the lingering problems of its owner, The Hartford (Conn.) Financial Services Group Inc.
Walter White resigned as Woodbury's chief executive last month to join rival independent broker-dealer Questar Capital Corp., a unit of Allianz Life Insurance Co. of North America in Golden Valley, Minn. There, Mr. White has the newly -created role of chief administrative -officer, a unique title in the -independent-brokerage business.
Like many insurance companies, The Hartford's share price has taken a beating from investors fearful that investment losses could damage the insurance industry further.
Last Tuesday, its shares dropped $2.48, or 19.9%, to end trading at $9.98 — down 39% year-to-date.
According to Allianz, Mr. White will have a variety of responsibilities, including that of chief suitability officer. In that role, he will see to it that the firm's clients are matched with investment products that meet their specific needs.
Through an Allianz spokeswoman, Mr. White declined to comment on the move.
Also leaving Woodbury last month for a rival firm was Karen Larson, a vice president of operations. She is now a vice president of broker and managed accounts at Thrivent Investment Management Inc. of Minneapolis.
STEADY GROWTH
At the end of last year, Woodbury had 1,750 affiliated registered representatives and advisers, with 39.3% of those producing more than $100,000 in fees and commissions per year, according to the most recent
InvestmentNews survey of independent broker-dealers.
Mr. White's leaving was not expected, one Woodbury adviser said.
It "caught me completely by surprise," said the adviser, who asked not to be identified. "He was a great guy."
Another adviser affiliated with Woodbury expressed confidence that the firm has a grasp on any problems.
"Woodbury and Hartford are strong companies, and the decisive leadership at the top will pull us through," said Mary Sterk, president of Sterk Financial Services Inc. of Sioux City, Iowa.
Temporarily replacing Mr. White is Woodbury and Hartford veteran Brian Murphy.
Mr. Murphy, executive vice president and director of The Hartford's U.S. individual-life-insurance business, had been president and CEO of Woodbury before Mr. White took over those roles in 2007.
An external search for Mr. White's replacement is under way, Julia Green, a spokeswoman for The Hartford, wrote in an e-mail message. "The Hartford remains committed to Woodbury. Woodbury is not being sold," Ms. Green wrote. The main interest is to meet the needs of the firm's representatives, she wrote.
E-mail Bruce Kelly at [email protected].
