NU Online News Service, Jan. 15, 2004, 6:02 p.m. EST — If J.P. Morgan Chase & Company, New York, and Bank One Corp., Chicago, succeed with their merger plans, the deal will create a formidable presence not only in the banking industry but also in the life insurance and annuity businesses, analysts say.[@@]
Together, the banks would have $1.1 trillion in assets and 2,300 branches in 17 states, according to the merger announcement.
Chase and Morgan are “2 of 12 banks that sell over $1 billion a year in annuities,” says Kenneth Kehrer, a Princeton, N.J., bank insurance consultant. “Chase is already a major player in annuities and even underwrites them, but Bank One is much bigger [than Chase] in annuities, because it’s a much larger retail bank.”
Bank One has been the third largest bank seller of annuities and Chase is sixth, according to Kehrer figures.
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Kehrer’s figures for Bank One do not include sales by the U.S. operations of Zurich Financial Services Group, Zurich, which the bank bought for $500 million in May 2003.
Chase has developed its own insurance company. The insurance subsidiary is engaged primarily in sales of annuities.