Filed Under:Agent Broker, Personal Insurance Business

Where have all the insurer-owned banks gone?

The insurance industry is slowly backing out of the retail banking business, according to a report released Tuesday by SNL Financial, and a series of upcoming M&A deals stands to further shake up the industry.

According to the list assembled by SNL, USAA Federal Savings Bank, controlled by USAA, remains the largest insurer-owned bank in the country with more than $65 billion in total assets, followed by State Farm Bank FSB at $17 billion and Mutual of Omaha Bank at nearly $7 billion.

But Mutual of Omaha is in the midst of a reorganization that might threaten its place on that list. It will be selling off five of its branches in Colorado to focus its operations in the state at one "multifaced" location south of Denver.

"Our focus is on optimizing our physical presence in the markets in which we do business," bank spokesman Jim Nolan told SNL. "Mutual of Omaha Bank was formed in 2007 and much of its initial growth was through acquisition. As a result, we acquired branches in locations that don't necessarily align with our strategy as in the case of the Colorado Front Range branches. As the optimization process continues, we may see changes in our network of physical locations but we will continue to have a brick-and-mortar presence in our key markets."

New Jersey Manufacturers Insurance Co. is going even further, SNL said, and plans to voluntarily dissolve NJM Bank FSB once its loan portfolio has been sold off and its deposits transferred to other banks.

Click chart to enlarge.

Click here to read the full report from SNL.

 

Top Story

Shock, dismay and disappointment: P&C insurance industry's reaction to TRIA news

The U.S. Senate adjourned for the year on Dec. 15 without passing the Terrorism Risk Insurance Program Reauthorization Act.

CE & Training

One Low Price for Complete Access to All Courses

Choose from National Underwriter's complete library of courses available in your state to get the credits you need quickly and affordably. Take advantage of the Open Pass Package for only $49. Click here to start your training today!

More Resources

Comments

eNewsletter Sign Up

Personal Lines Pro eNewsletter

Critical insights into the personal auto, homeowners, and other consumer insurance markets to help P&C professionals stay informed – FREE! Sign Up Now!

Mobile Phone
         

Advertisement. Closing in 15 seconds.