BHC Annuity Income Up 29%
Bank holding companies earned $2.6 billion from the sale of annuities in 2008, a 29% increase over $2 billion in 2007, according to a new study of FDIC data.
Of 880 BHCs, 43% sold annuities last year, according to the study for the American Bankers Insurance Association, Washington, by Michael White Associates, Radnor, Pa. The $2.6 billion they earned in fees and commissions from annuities comprised more than 18% of their total insurance brokerage income, according to the study.
Top BHCs in annuity sales in 2008 were J.P. Morgan Chase & Co., New York, with $363 million in annuity income, up 123% from $163 million in 2007; Bank of America Corp., Charlotte, N.C., $145.9 million, up 16% from $125.5 million; and SunTrust Banks Inc., Atlanta, $123.8 million, up 8% from $114.9 million