A report on bank holding companies finds they have increasedtheir total insurance revenues by 19 percent to $44 billion in 2005from $37 billion the year before.

The study released today by Michael White Associates, a bankingconsulting firm in Radnor, Pa., and the American Bankers InsuranceAssociation, based in Washington, D.C., said 1,428 bank holdingcompanies earned some type of insurance-related revenue in 2005,compared with 1,422 in 2004.

“This study shows that a growing number of consumers aredepending on their local banks to meet their insurance needs,” saidValerie Barton, ABIA associate director, in a statement. “And,banks are listening to their customers and offering more financialplanning products under the same roof, including insurance, sincethe enactment of the Gramm-Leach-Bliley Act.”

Michael White, president of the consulting firm, said that whileinsurance brokerage fee income was up 14 percent in 2005, bankshave experienced an annual compound growth rate on income of 22percent since 2001.

He said banks will continue to increase their insurance incomeby continuing to acquire insurance agencies, integrating existingagencies and cross-selling.

The top two bank holding companies earned more than $4 billionin income. They were Citigroup Inc., based in New York, with $3.1billion, and Wells Fargo & Company, based in San Francisco, at$1.22 billion, according to the report.

Mr. White explained in an interview that the Federal DepositInsurance Corporation, whose data the report is based on, does notbreak the figures down by property-casualty and life and healthbusiness lines.

He noted that the businesses are usually comprised of a mix ofinsurance businesses and can include underwriting, retail andwholesale business.

Citigroup, he noted, owns Primerica, a life and healthunderwriter. At one time it also owned Travelers Insurance, whichwas spun off on its own before being acquired by St. Paul to formSt. PaulTravelers.

Wells Fargo owns some life and health business, but theinsurance brokerage firm Acordia contributes a substantial amountto the insurance income, according to ABIA.

BB&T Corporation, ranked sixth on the list at $714 million,owns CRC Insurance Services, a major wholesale brokerage firm. TheWinston-Salem, N.C.-based bank also owns retail agencies.

Mr. White pointed out that banks are abandoning credit insuranceproducts (which accounted for significant insurance income) forcredit canceling products, which are considered banking productsand not subject to insurance regulation.

The report also noted that joining the ranks of the top 50 ininsurance revenue during the first half of 2005 were Capital OneFinancial Corporation, Bancwest Corp., Hancock Holding Company andF.N.B Corp.

Bancwest increased its rank jumping from 76th place in 2004 to38th in 2005. Hancock Holding also made a dramatic jump, going from61st to 42nd.