NFP forms national group benefits arm
Totalis Benefits will focus on selling life, disability and absence management services.
NFP may soon increase how often multistate employers hear about group life and group disability plans.
The New York-based insurance broker has brought in Nate Schoedel to run Totalis Benefits, a new national employee benefits practice.
NFP was acquired by Aon in April and now operates as NFP, an Aon company. It began using the Totalis name for some new divisions in September 2023.
Related: Aon to buy NFP for $13.4 billion
Schoedel previously was an account management executive at Lincoln Financial. He’ll work under Kim Bell, NFP’s health and benefits head.
Totalis Benefits will offer absence management services along with group life and group disability.
Schoedel said he thinks many employers need more help than they’re getting with non-medical benefits.
The sector “has become more complex in recent years due to conflicting state laws and the rise of remote work,” Schoedel said.
One question is how Totalis Benefits will fit in NFP’s and Aon’s dealmaking strategy.
Christa Davies, Aon’s chief financial officer, said in July, during a public conference call with securities analysts, that Aon expects NFP to close enough acquisitions each year to generate more than $45 million in additional earnings before interest, taxes, depreciation and amortization.
For employers and brokers, one question about NFP’s move is whether it’s a sign that the newer, higher interest rates will boost group disability sales by increasing earnings on the bond portfolios supporting the benefits and that the decrease in emphasis on COVID-19 will boost group life sales by making insurers more comfortable with the underwriting.