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Managed money fees and 12b-1 fees accounted for half of total broker productivity at banks in the third and fourth quarters of the year, according to a new report.
Kehrer-LIMRA, a subsidiary of Windsor, Conn.-based LIMRA Services, released this finding in a new AXA Kehrer-LIMRA Monthly Monitor Survey. The survey is based on a national sample of banks that have at least $4 billion in assets. The participating institutions account for about one half of all bank annuity sales.
In December of 2011, average broker sales productivity, as measured by managed money and 12b-1 fees, was $15,927 or 51% of the total average revenue per broker ($31,247). Likewise, in September, average broker sales productivity was $15,859 or 50.5% of the total average revenue per broker ($31,375).
Managed money revenue increased by 47% in 2011 and by 26% in 2010, the report adds.
The percentage of broker productivity from recurring advisory services totaled 48% in 2011, the survey says. This compares with 42%, 33% and 35%, respectively, for 2010 2009 and 2008, respectively.
“When we began tracking the industry, average total productivity, inclusive of fee revenue in 2003, only one-fifth of broker productivity at banks was from recurring sources,” says Kehrer-LIMRA Associate Research Director Janet Cappelletti in a press statement. “By 2006, this figure reached one-third and in 2011 accounted for almost half of revenue per broker.”
