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MWA: Bank Insurance Falls Slightly

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Banks generated a little more than $4 billion in insurance brokerage fee income in 2007, down 1% from the 2006 total, according to Michael White Associates L.L.C.

Researchers at MWA, Radnor, Pa., say 46% of U.S. banks generated commissions and fees by selling or helping with the sale of products such as life insurance, credit insurance, title insurance and property-casualty insurance.

Michael White, the head of MWA, says the decrease in reported insurance revenue may represent a statistical blip.

MWA bases its bank insurance brokerage revenue data on data reported by 7,707 commercial banks and savings banks that are regulated by the Federal Deposit Insurance Corp.

The 2007 figures exclude annuity income, and they also exclude insurance revenue generated by bank affiliates that operate as thrifts.

Citibank N.A., a unit of Citigroup Inc., New York, led banks in reported insurance brokerage fee, with a total of about $1.2 billion in insurance revenue.

BB&T, part of BB&T Corp., Winston-Salem, N.C., ranked second, with $837 million, in insurance brokerage fee income, and FIA Card Services, a unit of Bank of America Corp., Charlotte, N.C., ranked third, with $257 million in insurance income.


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