The life insurance distribution alliance Comerica Insurance Group announced Tuesday with Highland Capital Brokerage of Birmingham, Ala., is expected to bolster the latter's strategy for bank channel sales and reach an underserved segment of the banking company's customers.
Highland Capital, the wholesale distribution channel for Highland Capital Holding Corp., is to supply Comerica clients in California and Florida with life insurance products for estate planning, business continuation, executive compensation, and employee retention.
Andrea Martin, the president of Comerica Insurance Group in Detroit, said, "We've been in the life insurance business for 10 years in Michigan and Texas, and we wanted to expand in California and Florida, but we didn't have the infrastructure to do that."
Highland Capital has more than 50 offices nationwide, she said.
Robert Mann, the senior vice president of distribution at Highland Capital, said in an interview Tuesday that he sees "a strong desire in the banking industry to deliver these services."
"Banks are struggling with how to offer full financial services to clients," he said. "If a bank has a goal to offer a comprehensive wealth management solution, insurance has to be a part of that solution."
Highland's bank clients include Wells Fargo, Washington Mutual, AmSouth, and Fifth Third, Mr. Mann said. The Alabama broker is actively looking for alliances with other banks, he said, because they "have significant relationships with the types of clients we could provide value to."
"Banks have always been great partners, and we will continue to look at other opportunities," he said, though he declined to discuss specific prospects.
Comerica decided on a partnership with Highland because it has "a lot of flexibility and a lot of expertise," said Ms. Martin. "They offer wide access to a variety of insurance products and have competitive pricing," she said.
Ms. Martin would not disclose Comerica's sales goals for the Highland partnership.
Its products target "affluent, high-net-worth clients of Comerica that have in excess of $2 million in assets," Mr. Mann said.
Financial institutions, including banks, account for 35% of Highland's sales, and the other 65% of sales are made through independent life insurance providers.
Comerica's relationship managers will introduce Highland's representatives to their clients and will continue as liaisons in the sales and consulting process, Mr. Mann said.
The Detroit banking company's wealth and institutional management division includes private banking, institutional trust services, and insurance products for its affluent clients.
