From the February 20, 2012 issue of National Underwriter Property & Casualty • Subscribe!

Bank Insurance Brokerage Fees Reach Record High

Insurance-brokerage fees for bank-holding companies were up more than 14 percent over the first three quarters of 2011, but the two major bank-owned P&C brokers saw their fees drop over the period.

The Michael White-Prudential Bank Fee Income Report, released Feb. 7, says insurance-brokerage fees came in at a record $5.89 billion over the first three quarters of 2011, an increase from the previous year’s $5.14 billion.

For just the third quarter, fees rose 57 percent over the same period in 2010, or $730 million, to $2.01 billion.

The results were the highest-ever third-quarter results, the report says, and rank as the third-highest quarterly amount in insurance-brokerage-revenue history.

Through the first three quarters of 2011, Wells Fargo & Co. ranked second on the list with brokerage-fee revenue of $1.26 billion, which is down close to 6 percent from 2010.

BB&T, ranked third, saw its insurance-fee income drop less than 1 percent to $707 million.

Number one on the list is CitiGroup, which engages primarily in life and financial-services brokering. CitiGroup reported its brokerage-fee income rose 25 percent to $1.66 billion.

The results were compiled from data from all 6,740 commercial and FDIC-supervised banks and 927 top-tier bank-holding companies operating on Sept. 30, 2011.

Michael White, president of Michael White Associates, says overall, bank-holding companies grew their revenues “in a meaningful way.”

White says that an examination showed that of 155 banks with at least $1 million in annualized insurance-brokerage income, four had no growth during the first three quarters of last year. Eighty banks had positive brokerage-fee growth, and 71 had declines.

“These changes signal improvement among bank-holding-company agencies and offer hope that the economy is finally beginning to improve a bit—and the P&C insurance markets are starting to harden,” he adds.


Resource Center

View All »

Complimentary Case Study: Helping achieve your financial goals By:...

Find out how a Special Investigation Union used TLOxp to save the company money and...

Do Your Clients Hold The Right CDL License?

Learn about the various classes of CDL Licenses and the industries that are impacted by...

Integrated Content & Communications: A Key Business Issue For Insurers

Insurers are renewing their focus on top line growth, and many are learning that growth...

High Risk Insurance Coverage in the E&S Market

Experts discuss market conditions, trends and projected growth in a rapidly changing niche.

Top E-Signature Security Requirements

This white paper covers the most important security features to look for when evaluating e-signatures...

EPLI Programs Crafted Just For Your Clients

Bring us your restaurant clients, associations and other groups and we’ll help you win more...

Is It Time To Step Up And Own An Agency?

Download this eBook for insight on how to determine if owning an agency is right...

Claims - The Good The Bad And The Ugly

Fraudulent claims cost the industry and the public thousands of dollars in losses. This article...

Leveraging BI for Improved Claims Performance and Results

If claims organizations do not avail themselves of the latest business intelligence (BI) tools, they...

Top 10 Legal Requirements for E-Signatures in Insurance

Want to make sure you’ve covered all your bases when adopting e-signatures? Learn how to...

PropertyCasualty360 Daily eNews

Get P&C insurance news to stay ahead of the competition in one concise format - FREE. Sign Up Now!

Advertisement. Closing in 15 seconds.