NU Online News Service, March 25, 2005, 2:15 p.m.
Banks increased their 2004 insurance brokerage fee income by better than 22% last year, from $3 billion in 2003 to $3.6 billion in 2004, according to a new report.[@@]
The year-end analysis from Michael White Associates, Radnor, Pa., reports that 48% of banks in the United States engaged in activities that produced insurance revenue.
The 3 leading banks in insurance brokerage fee income last year were Citibank, New York; Branch Banking and Trust Company, Winston-Salem, N.C.; and Chase Manhattan Bank USA N.A., New York.
Citibank reported year-end insurance brokerage earnings of $657 million, while BB&T, which has acquired more insurance agencies than any other bank, earned $593 million. Chase Manhattan had $213 million in insurance brokerage fee income, registering the highest insurance growth rate of any bank–126% since 2003.
Banks over $10 billion in assets had the highest participation (74%) in insurance brokerage activities and produced $2.7 billion in insurance fee income. These large banks accounted for 75% of all bank insurance brokerage fee income earned in 2004, up 3.78% from their 2003 market share.