World Bancassurance
Key facts about US Banks in Insurance
ABIA CONDUCTS NATIONAL STUDY OF BANKS IN INSURANCE
96 Percent Say Insurance Business Adds Value for Bank Shareholders
The American Bankers Insurance Association in cooperation with Reagan Consulting released their 2008 Study of Banks in Insurance today. The study found that an overwhelming 96 percent of banks currently distributing insurance products believe that their insurance businesses add value for bank shareholders, with nearly 40 percent saying it adds “significant” value.
The study is based on a collection of annual research about the current and planned insurance activities of U.S. banks. It is designed as a management tool for executives who want to understand how the bank-insurance industry is developing, what strategies banks are pursuing, and what practices or approaches are producing successful bank-insurance programs.
The study also provides a general review of the overall insurance distribution system and the current market positions of the banking industry. This includes market share analysis, competitive advantages/disadvantages for banks, emerging trends that will impact the insurance distribution landscape and a bank-insurance update.
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Michael White-ABIA Report
BHC Insurance Revenue Up in First Half of 2008
The nation’s bank holding companies increased their total insurance revenue 9.5 percent to $23.7 billion in the first half of 2008 from $21.7 billion during the same period in 2007. CitiGroup (NY), Wells Fargo & Company (CA), and BB&T Corporation (NC) led all bank holding companies with significant banking activities in total insurance fee income in the first six months of 2008, according to findings released today by Michael White Associates and the American Bankers Insurance Association.
The findings are based on data reported to the Federal Reserve Board by 946 top-tier large bank holding companies (BHCs). The analysis measures the growth of the bank insurance business and provides some benchmarks that gauge bank insurance performance.
“The top 50 bank holding companies in insurance revenue attained a mean ratio of insurance to noninterest income of 14.3 percent,” said Valerie Barton, executive director of ABIA. “That level of Insurance Concentration demonstrates considerable contribution to BHCs’ noninterest income. Insurance consistently proves it is a valuable revenue-generating activity during good times and bad times. Those institutions that engage in it are glad to have the additional income for diversification of their revenue sources and for their bottom lines.”
US Bank Insurance News
TOP 10 BANK HOLDING COMPANIES IN TOTAL INSURANCE INCOME (YTD JUNE 30, 2008) NATIONALLY
RANK |
Total Insurance Income ($000s) |
Bank Holding Company |
State |
|
1st Half 2008 |
1st Half 2007 |
|||
1 |
1 |
$1,969,000 |
CITIGROUP INC. |
NY |
2 |
2 |
$1,054,000 |
WELLS FARGO & COMPANY |
CA |
3 |
4 |
$448,904 |
BB&T CORPORATION |
NC |
4 |
5 |
$324,023 |
BANK OF AMERICA CORPORATION |
NC |
5 |
3 |
$275,147 |
HSBC NORTH AMERICA HOLDINGS INC |
IL |
6 |
6 |
$203,000 |
JPMORGAN CHASE & CO. |
NY |
7 |
7 |
$168,000 |
WACHOVIA CORPORATION |
NC |
8 |
9 |
$66,525 |
NATIONAL CITY CORPORATION |
OH |
9 |
10 |
$59,019 |
REGIONS FINANCIAL CORPORATION |
AL |
10 |
12 |
$46,331 |
BANCORPSOUTH, INC |
MS |
Ranking excludes MetLife, which did not have significant banking operations. Source: Michael White Associates and American Bankers Insurance Association
Banks and Insurance Companies providing Bancassurance Products
ACE, American Insurance Company
|
GPW and Associates
|
PNC Insurance Services, Inc.
|
Source: American Bankers Insurance Association
Bancassurance Discussion Forum - United States