Business Transformation | 03.15.23
Monthly Industry Benchmarking Reports
by: Stathis Partners
Produced by Stathis Partners and powered by LPL Financial and Infinex Financial Group, the Monthly Benchmarking Reports are available exclusively for BISA members. Through monthly industry insights, BISA provides members valuable data on the banking and insurance industry to better understand trends that can impact their businesses. Find the latest benchmarking report below, or read reports from past months.
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High-Level Summary of the January 2023 Monthly Benchmarking Report
Recurring Revenues Cool Down | FC Production Takes a Hit
At the turn of the century, recurring revenue was lumped in with “Other” but in 2010, fee revenue accounted for 1/3 of total program revenue on average. Managed money & trailer fees combined bypassed the 50% threshold in January 2017 and grew at a steady clip before sliding in 2022.
The first month of the year generally stands out with both quarterly and annual payouts. A quick look at January fee collection rates reveal current slumps in the range of 17% for managed money fees and 19% for trailers. Market impact is a likely suspect, which underscores the quandary of asset-based fees in opposition to the value of financial advice in times of uncertainty.
Compared to January 2022, total FC revenue dropped only 10 percent as fixed annuities continued to rally. Both Financial Consultants and Platform reps doubled their fixed annuity production, but platform revenue was also hampered by trailers.
Total FC production varied depending on size of sales force, with mid-size programs (11-50 FCs) sinking 15% while the FCs at the largest programs (more than 50 FCs) inched up 2% in total revenue year-over-year.
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