Mutual of Omaha Agrees to Purchase Ohio-Based RMS |
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Written by U.S. Insurance News
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Monday, 03 March 2008 |
For the last two years, Ohio-based Retirement Marketing Services (RMS) has been the primary distribution channel for Mutual of Omaha’s retirement plans. In addition, Mutual of Omaha plans made up more than 60 percent of the new business RMS was generating.
Now, both companies have taken their affiliation to another level.
Mutual of Omaha has entered into a definitive agreement to acquire the assets and personnel of RMS, an independent wholesaler specializing in marketing retirement products in the 401(k), 403(b), 457 and individual rollover markets. Annual sales for RMS top the $500 million mark.
The transaction is expected to be complete within a month. At that time, RMS will begin doing business as Retirement Marketing Solutions, Inc., a wholly owned Mutual of Omaha subsidiary. RMS will remain in its hometown of Dublin, Ohio, and Chuck Lombardo, founder and president of RMS, will continue to lead the organization.
Bud Wright, Mutual senior vice president for Retirement Plans for Mutual of Omaha, said acquiring RMS will be beneficial for both companies.
“Mutual of Omaha will have access to a superior sales force with a proven track record in the retirement plans marketplace, while RMS becomes part of a larger organization with the resources necessary to grow its business model,” he explained.
Founded in 2001, RMS has more than 50 wholesalers across the United States. Services include actuarial consulting, product design, marketing, information systems and technology, and internal sales support.
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