American International Group’s Advisor Group -- the division under SunAmerica that includes AIG’s three broker-dealers -- had a strong third quarter.
Total revenue at FSC Securities, Royal Alliance and SagePoint Financial combined was up nearly 20% over the same period last year, according to an email statement from Larry Roth, president and CEO of Advisor Group.
“Advisor retention across our three broker-dealers is over 96% of GDC, and our revenue and profits are running substantially over budget through the third quarter of this year,” according to Roth’s statement. “Recruiting momentum has continued, with a host of new advisors joining our firms in the third quarter and commitments from numerous advisors to affiliate over the coming months.”
According to Financial Planning’s latest 2011 FP50 ranking of the industry’s largest independent broker-dealers, FSC Securities, Royal Alliance and SagePoint had a total of 5,610 advisors in 2010.
The advisory group’s growth was overshadowed by news of overall company losses. Natural disasters in the northeast and Asia, plus choppy conditions in credit and equity markets saddled American International Group with a $4.1 billion loss for the third quarter, the company announced on Friday morning.
A $2.3 billion loss in the market value of ordinary shares in AIG’s AIA Group drove losses, as did a $931 million decline in the recorded fair value of Maiden Lane III, and a $43 million in the drop of Maiden Lane II, under AIG’s SunAmerica division, according to a statement from the company. The company’s International Lease Finance Corp.’s aircraft fleet also suffered certain economic, technological and counterparty issues that led to a $1.5 billion charge.
“Clearly we had some storms that hit us in the quarter,” said Robert Benmosche, AIG president and CEO during a conference call Friday morning.
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