Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Retirement Planning > Retirement Investing > Annuity Investing

BHC Annuity Income Rises

Your article was successfully shared with the contacts you provided.

Bank holding companies increased their earnings from the sale of annuities to $1.33 billion in first half 2009, up 1.7% from $1.31 billion in the same period last year, according to a report.

However, BHCs’ annuity fee and commission income in the second quarter fell compared to second quarter 2008, to $593.1 million, down 9.1% from $652.6 million in the same period last year, according to the Michael White-ABIA Bank Annuity Fee Income Report. The report, compiled by Michael White Associates, Radnor, Pa., is sponsored by the American Bankers Insurance Association, Washington.

Of 932 BHCs, 379 or 41% were selling annuities during first half 2009, MWA reports. Annuity commissions and fees constituted 18% of their total insurance sales volume of $7.4 billion.

The biggest banks were by far the most active in the annuity market, with 72% of BHCs with over $10 billion in assets earning fees and commissions from the products, MWA reports. BHCs in this asset class produced 95% of total bank annuity income reported. Their total first-half annuity income was $1.26 billion, up 3.7% from $1.21 in first half 2008.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.