The American College and LUTC, Inc. to Combine; NewOrganization Will Provide Education and...

Business Editors

BRYN MAWR, Pa.--(BUSINESS WIRE)--Sept. 7, 2000

The American College and LUTC, Inc. have approved a plan that will combine both organizations into a premier educational organization serving the financial services industry, the institutions announced at a press conference in New York City today.

The plan, which will unite two of the financial services industry's most prominent educational organizations, will combine the LUTC's life insurance sales training expertise with The American College's academic strengths in the technical subjects of financial services.

By agreeing to combine the two institutions, The American College and LUTC will be able to provide students and companies with a single integrated source for every level of learning, from pre-contract training to graduate-level education. The methods of education will include classroom-based, self-study, and Web-based learning.

"Educating and training today's financial service professionals is key to helping many Americans achieve their financial goals," said Samuel H. Weese, President and CEO of The American College. "By joining together, The American College and LUTC will become an organization capable of providing the comprehensive learning that is required by today's financial advisors. By combining our resources, we also will be operating on a stronger financial base and be able to achieve our objectives in a more cost-effective manner."

The advanced use of technology is seen as one of the key benefits that the combined organization, which will be known as The American College, will offer students. Effectively bringing about the development of Internet-delivered courses to the entire spectrum of financial services companies, including banks and securities firms, is one of the key drivers behind the combination.

"In addition to reducing costs, this combination will eliminate marketing and administrative redundancies," said Dennis Stork, president and CEO of LUTC, Inc. "We will be forming an institution that has the ability to leverage a number of synergies that will result in greater benefits and less cost to the professionals that make up today's financial services marketplace."

"This combination is truly a first for the industry," said Michael Kraft, CLU, chairman of the LUTC, Inc. Board of Trustees. "By bringing together these two noteworthy institutions, we will be providing a resource for today's complex and ever-changing financial services marketplace. The wide range of students that represent the full spectrum of financial services companies will now have numerous opportunities to further their education." (Kraft is also managing partner for New York Life.)