Lion Street 2019 Annual Report FINAL - Flipbook - Page 12
WE ALT H MANAGEMEN T
In 2019, strong markets, impressive growth from existing Firms, the
addition of meaningful new Firms, and growth of VUL and annuities
combined to drive outstanding results for Lion Street’s wealth businesses.
In fact, 2019 was a watershed year, marked by the business achieving
standalone profitability in its 5th full year of operations.
Year-over-year Gross Dealer Concession (GDC) grew by 70%. Firms
with Lion Street Financial for the full 12 months averaged more than
$850,000 GDC, an astounding number, reflecting the scale, growth and
sophistication of these offices. VUL-based revenue increased 200%,
displaying the increased carrier and producer focus on this product line.
Fee-based Assets Under Management (AUM) went up 45%, driven by our
new partnership with AssetMark and new Firm transitions. Fixed and
variable annuities continued to grow with total sales of $185 million, an
increase of almost 500% since 2016. New Firms who joined in 2019 will add
over $10 million of new GDC to Lion Street Financial and new expertise in
markets, such as corporate benefits.
Changes are on the horizon for 2020 and beyond, with the SEC Best
Interest Rule and varying forms of fiduciary standards from individual
states. As insurance, retirement planning and wealth management
become increasingly interdependent, Lion Street’s integrated platform is a
competitive advantage for our Owner-Firms, as they help their clients plan
for longevity, chronic illness, retirement income and tax planning. In 2020,
we will effectively conform to these new regulations, while maintaining
freedom of choice and model for our Owners.
LSA AUM Growth