Wells Fargo Insurance Income Rises

By Mark E. Ruquet

NU Online News Service, Oct. 22, 11:01 a.m.EDT?Financial services company Wells Fargo & Companysaid its insurance brokerage arm reported an 8 percent increase inincome despite seasonal losses.

The San Francisco-based firm said its insurance services arm forthe third quarter of 2003 showed an $18 million increase in revenuegoing from $234 million to $252 million. For the nine months endingSept. 30, insurance showed a 5 percent increase, or $41 million,going from $766 million in 2002 to $807 million.

Wells Fargo said that the results were a decrease from itssecond-quarter insurance results, which stood at $289 million. Thefirm said the loss was due to normal seasonal losses in its cropinsurance.

The financial services company offers a full range of insuranceproducts covering property-casualty, life and health.

Chicago-based insurance broker Acordia, a Wells Fargo company,did not release a separate report on its performance.

As a whole, Wells Fargo reported net income for the quarter of$1.6 billion, an increase of 8 percent, or $117 million, from $1.44for the same period in 2002. Earnings per share rose 10 percent, or8 cents a share, to 92 cents a share. Revenues for the quarterstood at $7.2 billion, a 19 percent increase, from $6.04 billion in2002.

For the nine months, net income rose $334 million, going from$4.24 billion to $4.6 billion. Earnings per share rose 24 cents to$2.70 a share. Revenues increased 13 percent, or $2.42 billion,from $18 billion to $20.4 billion.

Wells Fargo said it also increased its dividend payment by 50percent to 45 cents a share.