Chris O'Brien's questions to LPL Financial Holdings Inc (LPLA) leadership • Q1 2025
Question
Chris O'Brien, on behalf of Benjamin Budish at Barclays, asked about the strong performance in annuity sales, inquiring about the key drivers and the contribution from recent acquisitions.
Answer
Executive Matthew Audette explained that the strength in annuity sales was driven by two main factors. He attributed approximately three-quarters of the recent growth to the full onboarding of Prudential, a firm with a significant insurance and annuity business. The remaining quarter of the growth came from LPL's core business, reflecting adviser and client demand in the current rate environment. However, he cautioned that sales commissions from these products might moderate in future quarters if market volatility and interest rates change.