In a surprising turn of events, broker-dealer network AIG Advisor Group has announced that AIG Financial Advisors, the second-largest of the network's broker-dealers, will absorb sibling broker-dealer AIG American General Securities in the middle of next year. The network, owned by the world's largest insurer American International Group, also announced in a letter to American General reps that the broker-dealer's president and CEO Andrew Kalbaugh will leave the firm and join the industry's largest independent broker-dealer, Linsco/Private Ledger.

American General boasts a rep force of 1,451, roughly 500 less than AIG Financial Advisors, which reported having 1,981 reps, according to Financial Planning's latest independent broker-dealer survey. AIG Financial Advisors' force, however, produces nearly double the sales of American General's advisors, where the average advisor took home $69,000 last year, compared with $132,000 at AIG Financial Advisors.