LADENBURG THALMANN ANNUITY INSURANCE SERVICES (LTAIS) ACQUIRES CERTAIN ASSETS OF KESTLER FINANCIAL GROUP’S INSURANCE DISTRIBUTION BUSINESS
September 6, 2018 by Ladenburg Thalmann Financial Services Inc
Acquisition Reinforces LTAIS’ Efforts to Align Annuity Solutions with Independent Firms
and Advisors Across the Country
Birmingham, AL – September 5, 2018 – Ladenburg Thalmann Financial Services Inc. (NYSE
American: LTS, LTSL, LTS PrA, LTSF, LTSK) (“Ladenburg”), a publicly-traded, diversified financial services
company, announced today that its Ladenburg Thalmann Annuity Insurance Services LLC (“LTAIS”)
subsidiary has purchased certain assets of the insurance distribution business operated by Kestler Financial
Group, Inc. (“KFG”), a leading independent distribution company (“IDC”) located in Leesburg, Virginia.
Under the terms of an asset purchase agreement, LTAIS purchased certain KFG assets, including the rights
to the “Kestler Financial Group” name and brand, as part of an ongoing strategy for LTAIS to reinforce its
position as a leading distributor of annuity solutions for independent financial advisors throughout the
country. The acquisition is expected to generate important benefits for the Ladenburg insurance and
annuity platform, which consists of LTAIS and Ladenburg’s complementary subsidiary Highland Capital
Brokerage, a leading independent brokerage of life insurance solutions nationwide.
Founded in 1993 by father and son Tom and Jason Kestler, KFG has established itself as one of the nation’s
leading distributors of annuities, life insurance, long term care insurance and disability insurance by
identifying, recruiting, and training independent insurance agents, registered representatives and financial
planners nationwide. The firm brings strong client relationships to Ladenburg’s insurance and annuity
platform, including selling agreements with over 20 independent broker-dealers, RIAs and other firms
representing more than 3,000 affiliated financial advisors.
Richard Lampen, President and Chief Executive Officer of Ladenburg, said, “We are very pleased to
welcome the Kestler team to the Ladenburg family. This is a significant step forward in our strategic vision
for LTAIS and the entire Ladenburg insurance and annuity platform, especially with respect to reinforcing
our leadership position in the independent financial advice space at a time when insurance and annuity
solutions are becoming increasingly important to individuals and families across the country.”
Jim Gelder, CEO of LTAIS, said, “Kestler Financial Group has a long, successful history in the fixed index
space working with the financial advisors of independent broker-dealers across the country. Jason and
Tom Kestler are well-known and highly respected thought leaders in this market, and we’re excited to
bring them into our organization. With the longstanding client relationships the Kestler team has formed
and the industry-leading capabilities they bring to our organization, the Ladenburg insurance and annuity
platform will be exceptionally well-positioned to shape the future of this space.”
KFG is one of the few IDCs with a service model that effectively addresses the needs of insurance-only
advisors, registered representatives and investment advisor representatives in the RIA space. LTAIS will
benefit from KFG’s deep and specialized expertise in marketing, sales and operations in the annuity and
insurance sector. The acquisition will also enable LTAIS’ existing sales team to expand and strengthen the
support it provides advisors affiliated with Ladenburg’s independent advisory and brokerage (IAB)
subsidiaries by giving the LTAIS sales team access to robust lead generation capabilities through social
media, seminars and other channels.
The Kestler team will operate from their current headquarters in Leesburg, Virginia as part of LTAIS.
Effective immediately, Jason Kestler will become part of the Highland executive management team, while
also serving as President of the Kestler Financial Group Division within LTAIS.
Jason Kestler, President of KFG, said, “This announcement marks the start of an exciting new period of
growth for our insurance distribution business. We’ve established our organization by focusing on creating
one-to-one relationships with our advisors, built on a foundation of mutual respect and exceptional
service. It’s very clear to us that LTAIS, Highland Capital and Ladenburg share the Kestler team’s
longstanding focus on advisor service, and that becoming part of the Ladenburg family of companies will
amplify our ability to assist advisors in growing their practices in an area that is crucial to millions of
households, business owners and individuals across the country who are seeking to maximize their
financial security over the long run.”
About Ladenburg
Ladenburg Thalmann Financial Services Inc. (NYSE American: LTS, LTSL, LTS PrA, LTSF, LTSK) is a
publicly-traded diversified financial services company based in Miami, Florida. Ladenburg’s
subsidiaries include industry-leading independent advisory and brokerage (IAB) firms Securities
America, Triad Advisors, Securities Service Network, Investacorp and KMS Financial Services, as
well as Premier Trust, Ladenburg Thalmann Asset Management, Highland Capital Brokerage, a leading
independent life insurance brokerage company, Ladenburg Thalmann Annuity Insurance Services, a
full-service annuity processing and marketing company, and Ladenburg Thalmann & Co. Inc., an
investment bank which has been a member of the New York Stock Exchange for over 135 years.
The company is committed to investing in the growth of its subsidiaries while respecting and
maintaining their individual business identities, cultures, and leadership. For more information, please
visit www.ladenburg.com.
About LTAIS
Ladenburg Thalmann Annuity Insurance Services LLC (“LTAIS”) is a wholly owned subsidiary of Ladenburg
Thalmann Financial Services Inc. LTAIS is a full-service annuity processing and marketing platform offering
advisors proprietary and industry-leading technologies, contracting and licensing, and in-house annuity
experts. The company’s sales support team works in close coordination with financial advisors to ensure
that the products being offered are in the best interest of the client. For more information, visit the LTAIS
website at ladenburgannuity.com.
About Kestler Financial Group
Kestler Financial Group, Inc. (“KFG”) is a valued resource for thousands of independent advisors
nationwide. KFG delivers products and tools built on a robust platform for their clients to run and grow
their practices more successfully. Members of the KFG team have a rich history of being thought leaders
in the annuity distribution channel, and the firm has found its niche providing insurance and annuity
solutions within the securities industry. For more information, visit the KFG website at
kestlerfinancial.com.
This press release includes certain forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including statements regarding future growth, growth of our independent
advisory and brokerage business and growth of our insurance and annuity business. These statements are
based on management’s current expectations or beliefs and are subject to uncertainty and changes in
circumstances. Actual results may vary materially from those expressed or implied by the statements herein
due to changes in economic, business, competitive and/or regulatory factors, including the SEC’s proposed
rules and interpretations concerning the standards of conduct for broker dealers and investment advisers
when dealing with retail investors, future cash flows, a change in the Company’s dividend policy by the
Company’s Board of Directors (which has the ability in its sole discretion to increase, decrease or eliminate
entirely the Company’s dividend at any time) and other risks and uncertainties affecting the operation of
the Company’s business. These risks, uncertainties and contingencies include those set forth in the
Company’s annual report on Form 10-K for the fiscal year ended December 31, 2017 and other factors
detailed from time to time in its other filings with the SEC. The information set forth herein should be read
in light of such risks. Further, investors should keep in mind that the Company’s quarterly revenue and
profits can fluctuate materially depending on many factors, including the number, size and timing of
completed offerings and other transactions. Accordingly, the Company’s revenue and profits in any
particular quarter may not be indicative of future results. The Company is under no obligation to, and
expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result
of new information, future events, changes in assumptions or otherwise, except as required by law.
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Media Contacts:
Michael Dugan / Jessica Caris
Haven Tower Group
424 652 6520 ext. 106 or ext. 104
mdugan@haventower.com or jcaris@haventower.com
