Market Overview

Ladenburg Thalmann Annuity Insurance Services (LTAIS) Acquires Certain Assets of Kestler Financial Group's Insurance Distribution Business


Acquisition Reinforces LTAIS' Efforts to Align Annuity Solutions with
Independent Firms and Advisors Across the Country

Ladenburg Thalmann Financial Services Inc. (NYSE American: LTS, LTSL,
LTS PrA, LTSF, LTSK) ("Ladenburg"), a publicly-traded, diversified
financial services company, announced today that its Ladenburg Thalmann
Annuity Insurance Services LLC ("LTAIS") subsidiary has purchased
certain assets of the insurance distribution business operated by Kestler
Financial Group
, Inc. ("KFG"), a leading independent distribution
company ("IDC") located in Leesburg, Virginia.

Under the terms of an asset purchase agreement, LTAIS purchased certain
KFG assets, including the rights to the "Kestler Financial Group" name
and brand, as part of an ongoing strategy for LTAIS to reinforce its
position as a leading distributor of annuity solutions for independent
financial advisors throughout the country. The acquisition is expected
to generate important benefits for the Ladenburg insurance and annuity
platform, which consists of LTAIS and Ladenburg's complementary
subsidiary Highland Capital Brokerage, a leading independent brokerage
of life insurance solutions nationwide.

Founded in 1993 by father and son Tom and Jason Kestler, KFG has
established itself as one of the nation's leading distributors of
annuities, life insurance, long term care insurance and disability
insurance by identifying, recruiting, and training independent insurance
agents, registered representatives and financial planners nationwide.
The firm brings strong client relationships to Ladenburg's insurance and
annuity platform, including selling agreements with over 20 independent
broker-dealers, RIAs and other firms representing more than 3,000
affiliated financial advisors.

Richard Lampen, President and Chief Executive Officer of Ladenburg,
said, "We are very pleased to welcome the Kestler team to the Ladenburg
family. This is a significant step forward in our strategic vision for
LTAIS and the entire Ladenburg insurance and annuity platform,
especially with respect to reinforcing our leadership position in the
independent financial advice space at a time when insurance and annuity
solutions are becoming increasingly important to individuals and
families across the country."

Jim Gelder, CEO of LTAIS, said, "Kestler Financial Group has a long,
successful history in the fixed index space working with the financial
advisors of independent broker-dealers across the country. Jason and Tom
Kestler are well-known and highly respected thought leaders in this
market, and we're excited to bring them into our organization. With the
longstanding client relationships the Kestler team has formed and the
industry-leading capabilities they bring to our organization, the
Ladenburg insurance and annuity platform will be exceptionally
well-positioned to shape the future of this space."

KFG is one of the few IDCs with a service model that effectively
addresses the needs of insurance-only advisors, registered
representatives and investment advisor representatives in the RIA space.
LTAIS will benefit from KFG's deep and specialized expertise in
marketing, sales and operations in the annuity and insurance sector. The
acquisition will also enable LTAIS' existing sales team to expand and
strengthen the support it provides advisors affiliated with Ladenburg's
independent advisory and brokerage (IAB) subsidiaries, by giving the
LTAIS sales team access to robust lead generation capabilities through
social media, seminars and other channels.

The Kestler team will operate from their current headquarters in
Leesburg, Virginia, as part of LTAIS. Effective immediately, Jason
Kestler will become part of the Highland executive management team,
while also serving as President of the Kestler Financial Group Division
within LTAIS.

Jason Kestler, President of KFG, said, "This announcement marks the
start of an exciting new period of growth for our insurance distribution
business. We've established our organization by focusing on creating
one-to-one relationships with our advisors, built on a foundation of
mutual respect and exceptional service. It's very clear to us that
LTAIS, Highland Capital and Ladenburg share the Kestler team's
longstanding focus on advisor service, and that becoming part of the
Ladenburg family of companies will amplify our ability to assist
advisors in growing their practices in an area that is crucial to
millions of households, business owners and individuals across the
country who are seeking to maximize their financial security over the
long run."

About Ladenburg

Ladenburg Thalmann Financial Services Inc. (NYSE American: LTS, LTSL,
LTS PrA, LTSF, LTSK) is a publicly-traded diversified financial services
company based in Miami, Florida. Ladenburg's subsidiaries include
industry-leading independent advisory and brokerage (IAB) firms
Securities America, Triad Advisors, Securities Service Network,
Investacorp and KMS Financial Services, as well as Premier Trust,
Ladenburg Thalmann Asset Management, Highland Capital Brokerage, a
leading independent life insurance brokerage company, Ladenburg Thalmann
Annuity Insurance Services, a full-service annuity processing and
marketing company, and Ladenburg Thalmann & Co. Inc., an investment bank
which has been a member of the New York Stock Exchange for over 135
years. The company is committed to investing in the growth of its
subsidiaries while respecting and maintaining their individual business
identities, cultures, and leadership. For more information, please visit


Ladenburg Thalmann Annuity Insurance Services LLC ("LTAIS") is a wholly
owned subsidiary of Ladenburg Thalmann Financial Services Inc. LTAIS is
a full-service annuity processing and marketing platform offering
advisors proprietary and industry-leading technologies, contracting and
licensing, and in-house annuity experts. The company's sales support
team works in close coordination with financial advisors to ensure that
the products being offered are in the best interest of the client. For
more information, visit the LTAIS website at

About Kestler Financial Group

Kestler Financial Group, Inc. ("KFG") is a valued resource for thousands
of independent advisors nationwide. KFG delivers products and tools
built on a robust platform for their clients to run and grow their
practices more successfully. Members of the KFG team have a rich history
of being thought leaders in the annuity distribution channel, and the
firm has found its niche providing insurance and annuity solutions
within the securities industry. For more information, visit the KFG
website at

This press release includes certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding
future growth, growth of our
independent advisory and brokerage business and growth of our insurance
and annuity business. These statements are based on management's current
expectations or beliefs and are subject to uncertainty and changes in
circumstances. Actual results may vary materially from those expressed
or implied by the statements herein due to changes in economic,
business, competitive and/or regulatory factors, including the SEC's
proposed rules and interpretations concerning the standards of conduct
for broker dealers and investment advisers when dealing with retail
investors, future cash flows, a change in the Company's dividend policy
by the Company's Board of Directors (which has the ability in its sole
discretion to increase, decrease or eliminate entirely the Company's
dividend at any time) and other risks and uncertainties affecting the
operation of the Company's business. These risks, uncertainties and
contingencies include those set forth in the Company's annual report on
Form 10-K for the fiscal year ended December 31, 2017 and other factors
detailed from time to time in its other filings with the SEC. The
information set forth herein should be read in light of such risks.
Further, investors should keep in mind that the Company's quarterly
revenue and profits can fluctuate materially depending on many factors,
including the number, size and timing of completed offerings and other
transactions. Accordingly, the Company's revenue and profits in any
particular quarter may not be indicative of future results. The Company
is under no obligation to, and expressly disclaims any obligation to,
update or alter its forward-looking statements, whether as a result of
new information, future events, changes in assumptions or otherwise,
except as required by law.

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