Kenneth M. Hughes is switching companies and coasts to spearhead Keyport Life Insurance Co.'s annuity push through banks.
Mr. Hughes, 35, arrived at Boston-based Keyport on Thursday from California, where he spent three years managing the brokerage program at California Federal Bank.
Now, Mr. Hughes, as vice president and national sales director for financial institutions, will work with banks like CalFed to increase sales of Keyport's fixed and variable annuities.
Mr. Hughes fills a spot vacant since last spring, when Bradley Powell jumped ship to lead rival Jackson National Life's drive through banks.
Keyport's selection of Mr. Hughes represents a strategy shift for the company, which has traditionally groomed its own talent or culled executives from the insurance industry.
Mr. Hughes acknowledges that he may be something of a maverick. But he adds that his banking background could prove crucial as Keyport navigates the increasingly competitive bank channel.
"I've gained a perspective that can be very valuable" to an annuity marketer that wants to build and strengthen relationships with financial institutions, Mr. Hughes said.
His new boss, John Arant, Keyport's senior vice president, agrees.
"We believe Ken's the right man to lead the team," Mr. Arant said. "He brings a level of experience to the job that we have not had before. He understands what makes things work within a bank environment."
Keyport is already a veteran at serving banks. The company sold $547 million of fixed and variable annuities during the first six months of this year, making it the fourth-largest supplier through financial institutions, according to Kenneth Kehrer Associates, Princeton, N.J.
The sales figure, although impressive, is not the only measure of marketing success, Mr. Hughes said.
Banks don't just want products, he explained. Financial institutions require ongoing support in the form of training and marketing assistance. Banks also need help devising game plans to best position their investment products -- in good markets and bad.
"It's most critical not to lose sight of this," Mr. Hughes said.
Keyport is in the midst of staffing up, adding three new bank representatives to a unit that already includes six employees who are dedicated to marketing the company's products through banks.
The representatives serve more than 100 banks, including institutions like Banc One Corp. and Signet Banking Corp. that deal directly with Keyport. Keyport also supplies products to hundreds of smaller banks through investment product marketing companies, including sister firm Liberty Financial Cos., and Essex Corp.
Mr. Hughes said he will spend the early part of next year visiting many of Keyport's clients, to get a sense of their programs and their individual needs.
"I want to make sure I understand their concerns and issues, and address them accordingly," he said.
DOSSIER
Kenneth M. Hughes
Vice president and national sales director for financial institutions, Keyport Life Insurance Co.
Mr. Hughes joined the Boston-based company last week to guide its efforts to sell annuities through banks and thrifts. He is charged with keeping Keyport competitive in an increasingly crowded field of insurers that want to serve banks.
Career track 1988 - October:
Held several key positions -- most recently executive vice president -- at CalFed Investment Services, the brokerage arm of California Federal Bank, Los Angeles
1984 - 1988:
Vice president of Imperial Corporation of America, a now-defunct thrift holding company in San Diego
Vltal statlstlcs Born:
June 24, 1959, in Vallejo, Calif.
Education:
BS in business administration, San Diego State University
Family:
Wife, Melissa, and three children, including newborn Brooke
Favorite book:
"Thriving on Chaos," by Tom Peters
Favorite movie:
"Forrest Gump"
Dream car:
Ferrari
Where he sees himself in 20 years:
President of Keyport
