Aetna Life and Casualty Co. has reorganized its sales team that targets banks, brokers, and other financial intermediaries following the departure of its bank sales head.
The company has placed its nine-member bank sales force in the bailiwick of Michael Gilotti, an Aetna vice president who also oversees sales through financial planners and brokerages.
Previously, the bank sales division was a stand-alone unit, run by David Sanderford. But Mr. Sanderford, a corporate counterpart to Mr. Gilotti, resigned from Aetna last month.
Robert O'Mara, Mr. Sanderford's former deputy, will now run bank sales, but report to Mr. Gilotti.
Some observers have questioned Aetna's commitment to banks, saying Mr. Sanderford quit because the Hartford-based company wasn't offering the product support he needed to compete. Banks may now interpret this latest reorganization as a sign of waning commitment, because the company lacks a high-level executive devoted solely to financial institutions.
"Even a little thing like this could hurt Aetna's penetration into the bank marketplace," said Kenneth Kehrer, a consultant in Princeton, N.J.
But Aetna officials say they are wholeheartedly dedicated to selling their wares through banks.
"As someone who has moved himself and his family to Hartford, I can assure you of our full-time commitment to both operations," Mr. Gilotti declared.
Mr. Gilotti came to Aetna in April of 1994, after leaving Eden Financial Corp., a small San Diego third-party marketer, where he was one of four partners.
He emphasized that Aetna increased its bank sales force by three last year, and expects to make more additions soon.
He added that his background suggests a sensitivity to depository institutions. Eden Financial's client list includes the nation's No. 2 thrift, Great Western Financial Corp., Chatsworth, Calif.
In response to charges by observers and competitors that Mr. Sanderford's resignation was caused by clashes between Aetna and banks over product and marketing support, Mr. Gilotti acknowledged that "demands of the larger, more visible institutions are onerous for any provider." But, he added, Aetna is exploring ways to tailor products for particular bank clients and is staffing up the marketing department that designs promotional material for banks.
Since hiring Mr. Sanderford away from rival GNA Corp. in 1994, Aetna has been averaging $30 million a month in annuity sales through banks.
