U.S. bank holding companies in the first half of this yearincreased their total insurance revenue 1.1 percent to $21.4billion from $21.2 billion during the same period in 2005, twoorganizations reported today.

The announcement from the American Bankers Insurance Associationin Washington and Michael White Associates bank insuranceconsulting firm in Radnor, Pa. also noted a 23 percent increase inbig bank insurance brokerage fee income.

According to their findings, CitiGroup, Wells Fargo &Company, Countrywide Financial Corporation, and HSBC North AmericaHoldings Inc. led all bank holding companies in total insurance feeincome during the period.

CitiGroup had fee income of $1.57 billion, Wells Fargo $728million, Countrywide $580 million and HSBC $533 million, ABIA andMWA reported.

ABIA and MWA said the findings are based on data reported to theFederal Reserve Board by 990 top-tier large bank holding companies(BHCs). The analysis measures the growth of the bank insurancebusiness and provides some benchmarks that gauge bank insuranceperformance.

Valerie Barton, associate director of ABIA, said, "While theindustry's growth in total insurance revenue slowed in the firsthalf of 2006, insurance brokerage fee income rose rapidly."

Ms. Barton added that "larger banking organizations experiencedexceptionally strong double-digit growth, much of which derivedfrom organic growth in insurance brokerage fee income as agencyintegration and cross-selling accelerate."

During the first six months, 644 bank holding companies (65percent of all top-level BHCs reporting) earned some type ofinsurance-related revenue, compared to 1,395 in the first half of2005, ABIA and MWA said

ABIA and MWA explained that fewer bank holding companiesreported total insurance revenues because, earlier this year, theFederal Reserve redefined "small" BHCs as those with less than $500million, instead of $150 million, in consolidated assets.

This reduced the total number of BHCs that must report detailedcall report information by 1,300 and the number of BHCs thatreported total insurance fee income in the first half of 2006 by751.

In addition, 81 BHCs reported earning some insuranceunderwriting fee income from underwriting or reinsuranceactivities.

The ABIA-MWA analysis includes a ranking of the top 50 bankholding companies on the basis of the absolute dollar amount oftotal insurance revenue (earnings from sales and underwriting) andon the basis of total insurance revenue as a percentage of theinstitution's total noninterest income.

Other findings include:

o BHCs' insurance brokerage fee income climbed 23.1 percent from$4.98 billion in the first half of 2005 to $6.13 billion in thefirst half of 2006, as 639 bank holding companies (64.6 percent ofall top-level large BHCs reporting) engaged in sales activitiesthat produced insurance brokerage fee income.

o Joining the top 50 in total insurance revenue during the firsthalf of 2006 were North Fork Bancorporation, Inc., R&GFinancial Corporation, and Susquehanna Bancshares, Inc.

North Fork Bancorporation increased its rank in total insuranceincome the most, having jumped from 65th place at mid-2005 to 39thby June 30.

R&G Financial Corporation also rose in the rankings from anunrated position in 2005 to 46th place on June 30.