The nation's bank holding companies reported their insurancebrokerage fee income grew more than 10 percent in 2006, while totalinsurance revenue decreased 1.3 percent--a drop attributed to areduction in the number of firms reporting.

The Michael White Associates consulting firm in Radnor, Pa., andthe Washington-based American Bankers Insurance Associationreleased the findings today based on data reported to the FederalReserve Board by top-tier bank holding companies.

The organizations said total insurance revenue went from $44.1billion in 2005 to $43.5 billion in 2006.

The White firm and ABIA analysis measures the banking industry'sinsurance business and provides some benchmarks that gauge bankinsurance performance.

"While the industry's insurance underwriting activitiesregistered a decline of 5.2 percent, its insurance brokerage feeincome continued growing, increasing 10.6 percent in 2006," saidMichael D. White, president of MWA.

"Among the top-50 in insurance revenue, the mean ratio ofinsurance revenue to noninterest income was 14.8 percent in 2006,so insurance activities continue to make increasingly meaningfulcontributions to banking revenues," he added.

Brokerage income went from $10.98 billion in 2005 to a record$12.14 billion in 2006, as 656 bank holding companies--67 percentof all top-level BHCs reporting--engaged in sales activitiesproducing insurance brokerage fee income, compared to 1,428 in2005, the report said.

It was explained that fewer bank holding companies reportedtotal insurance revenues in 2006 because the Federal Reserveredefined "small" BHCs as those with less than $500 million,instead of $150 million, in consolidated assets.

The total number of BHCs that must report detailed fee incomeinformation was reduced by 1,317, while the number of BHCs thatreported total insurance fee income in 2006 fell by 791.

"While insurance underwriting income has grown at a compoundannual rate of 3.1 percent since 2001, insurance brokerage feeincome has been racing upward at a compound yearly average ofnearly 20 percent during that same period," according to ABIAExecutive Director Valerie Barton.

She said that while brokerage income growth was slowed in 2006by softening of property-casualty premiums and declines in someagencies' contingent commissions, "insurance brokerage remainshealthy, and the prospects for continued growth in bank insurancerevenues are very positive."

The top-five BHCs for insurance income were:

o Citigroup Inc., New York--$3.2 billion.

o Wells Fargo & Company, San Francisco--$1.34 billion.

o Countrywide Financial, Calabasas, Calif.--$1.21 Billion.

o HSBC North America Holdings, Prospect Heights, Ill.--$1.07billion.

o BB&T Corp., Winston Salem, N.C.--$812 million.

Copies of MWA's reports can be obtained from MWA by calling610-254-0440, or by visiting www.BankInsurance.com.