Annuity sales at U.S. bank holding companies brought in a total of about $2.6 billion in commissions and fees in 2010, down 1.8% from the 2009 total, according to Michael White Associates.
MWA, Radnor, Pa., compiles the report for the American Bankers Insurance Association, Washington, using data reported by 911 large bank holding companies.
MWA also looks at data from all 6,927 commercial banks.
In 2010, 42% of bank holding companies reported annuity sales, and annuity commission and fee income accounted for about 11% of their $23 billion in total mutual fund and annuity income.
Annuity sales also accounted for about 16% of the bank holding companies’ $16 billion in 2010 insurance sales volume.
At the 6,927 commercial banks, about 13% participated in annuity sales activity. They earned about $720 million in annuity commissions and fees.
At the 50 bank holding companies with the most productive annuity operations, the mean annuity productivity ratio was $3,007 per employee; at small banks with top-level annuity productivity, the mean ratio was $4,298 per employee.
- Allison Bell