Revenue at insurance brokerage firms owned by bank holding companies rose to $6 billion in the first half, up 23% from the total for the first half of 2005, researchers report.
The Association of Banks In Insurance, Washington, conducts the bank brokerage survey together with Michael White Associates, Radnor, Pa.
“Larger banking organizations experienced exceptionally strong double-digit growth, much of which derived from organic growth in insurance brokerage fee income as agency integration and cross-selling accelerate,” according to ABIA Associate Director Valerie Barton.
Although bank holding company insurance brokerage income increased dramatically, total insurance-related income increased just 1%, to $21.4 billion.
Federal Reserve Board figures show that 644 bank holding companies–65% of all bank holding companies–earned insurance-related revenue in the first half, and that 81% of the bank holding companies earned income from underwriting insurance or providing reinsurance.