U.S. bank-owned life insurance (BOLI) assets grew a little in the third quarter of 2017, mainly because of increased use at big and midsize banks.
Total BOLI assets rose to $160.5 billion as of Sept. 30, 2017, according to Michael White Associates.
The BOLI total was up 3.5% from the total Michael White Associates recorded a year earlier.
The percentage of commercial banks, savings banks and savings associations reporting BOLI assets increased to 63.3%, from 61.7%.
Michael White Associates now co-produces its BOLI market updates with Equias Alliance.
The firm found that the number of banks with more than $10 billion in assets using BOLI increased 9.6%, and their BOLI assets increased 4.9%, to $128.6 billion.
The number of BOLI users, and BOLI asset totals, also increased for banks with $1 billion to $10 billion in assets, and for banks with $500 million to $1 billion in assets.
The number of banks with less than $500 million in assets that reported BOLI assets dropped, and their BOLI asset total fell about 1.6%, to $9.4 billion.
Analysts say bank mergers and acquisitions affected the data by reducing the number of separate banks.
—Read How to Overcome Complex COLI/BOLI Sales Cycles on ThinkAdvisor.