The U.S. bank-owned life insurance (BOLI) asset total increased to about $140 billion at the end of the third quarter of 2010, up 4.8% from the total recorded a year earlier, according to Michael White Associates L.L.C.

Michael White, Radnor, Pa., has included BOLI assets held by large 915 large bank holding companies (BHCs) and 7,760 stand-alone banks, thrifts and Federal Deposit Insurance Corp.-supervised savings banks.

Banks use BOLI to help pay for employee benefits and offset retirement benefits liabilities.

MWA found that:

  • Large, top-tier BHCs increased BOLI holdings to $130 billion, up 5.1% from the total recorded a year earlier.
  • 432 stand-alone banks had BOLI assets, and the total increased 23%, to $2.9 billion.
  • 340 had BOLI assets, and the total fell 6.2%, to $7.1 billion.

- Allison Bell