Insurance revenue among bank holding companies increased only slightly last year over 2006, a study of federal data shows.
BHCs recorded sales revenue of $43.7 billion in 2007, up just 0.5% from $43.5 billion in 2006, reports Michael White Associates, Radnor, Pa., which conducted the study for the American Bankers Insurance Association, Washington.
The top-ranked banks in insurance sales volume were Citigroup Inc., New York; Wells Fargo & Company, San Francisco; HSBC North America Holdings, New York, a unit of HSBC Holdings P.L.C., London; BB&T Corp., Winston-Salem, N.C.; and Bank of America Corp., Charlotte, N.C.
Michael White Associates based its findings on data reported to the Federal Reserve Board by BHCs.
Insurance continued to make important contributions to net operating revenues of many BHCs, notes Michael White, president of MWA. “Among the top 50 in insurance revenue, the mean ratio of insurance revenue to noninterest income was 13.4% in 2007.”