NU Online News Service, April 21, 3:35 p.m. EDT

Wells Fargo reported first-quarter insurance segment earnings rose 7 percent, contributing to overall net income of $2.5 billion for the San Francisco-based bank.

The company reported insurance services earnings increased by $40 million for the first quarter over the same period last year to $621 million.

Results reflected customer growth and higher crop insurance revenues, said Wells Fargo.

On a quarter-to-quarter basis, insurance revenues, which include Wells Fargo Insurance Brokerage, were reported as increasing 29 percent, or $139 million, from the fourth quarter's $482 million.

While not addressing the insurance segment, John Stumpf, the bank's chairman and chief executive officer, said during a conference call with financial analysts today that he is excited about how Wells Fargo is positioned for the future and that the bank has clearly demonstrated that it has produced a business model that works for investors and customers.

He said he believes the company has turned the corner on "many of the credit challenges over the past two years," but customer demand and earning asset growth remain soft.

"We remain firmly committed to our discipline in credit risk and interest rate risk and to managing our company for long-term earnings growth and not short-term quarterly results," Mr. Stumpf said.

He added that having managed the economic crisis, he believes the bank is well positioned for better economic times ahead.

Special Reports /

Wells Fargo Insurance Segment Up 7% In First Quarter

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