Hartford Financial Services Group's independent brokerage unit Woodbury Financial Services hasn't posted a profit for at least five years, but some investment bankers say that won't deter a small circle of expansion-minded rivals from bidding on the business. Last week the insurer announced it was selling its life-insurance businesses to focus on property-casualty, benefits and mutual funds. Hartford also said it will seek buyers for Minnesota-based Woodbury and its 1,400 brokers who oversee $24 billion in client assets.Woodbury was the 12th-largest independent securities brokerage with $254 million in revenue last year. Yet like its rivals, profit margins have been squeezed by technology, compliance and other costs. Independent advisers receive roughly 90 percent or more of the commissions and fees they generate, but they also are responsible for paying their own business expenses.Brokers employed by a traditional brokerage, such as Merrill Lynch, receive about 40 percent but office space, technology and other overhead costs are covered by the firm. Actual payouts vary by firm and the overall production of the adviser.On the surface, Woodbury appears a tough sell. It lost $18,000 last year after $2 million in investment losses and $252 million in expenses, according to documents filed with the Securities and Exchange Commission. Woodbury has not reported a profit since at least 2007, according to SEC filings.
The Hartford Financial Services Group, Inc. (The Hartford) is an insurance and financial services company. Shares of HIG fell by 2.32% or $-0.51/share to $21.50. In the past year, the shares have traded as low as $14.56 and as high as $29.59. On average, 8728580 shares of HIG exchange hands on a given day and today's volume is recorded at 5067013.
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