NU Online News Service, April 22, 1:06 p.m.EDT

Winston-Salem, N.C. bank BB&T Corp. says insurance servicesdecreased slightly in the first quarter while its banking businessreported net income increase of 21 percent.

BB&T reports that insurance income, which consists primarilyof BB&T insurance brokerage services, decreased by 1 percent,or $3 million, to $250 million compared to the same period in2010.

On a quarter over quarter basis, insurance income increasedclose to 2 percent, or $1 million, from $249 million last year.

The bank says net income for the first quarter increased 21percent, or $40 million, to $234 million. Total revenues dropped 7percent, or $156 million, to $2.03 billion.

During a conference call with financial analysts, Kelly S. King,chairman and chief executive officer called the results an “overallsolid quarter.”

Daryl N. Bible, senior executive vice president and chieffinancial officer, noted that the bank sees a number of its unitsare expected to contribute to increase earnings includinginsurance, saying the “insurance market is showing improvement dueto better economic conditions.”

When asked what areas of the insurance industry were expected tosee increases, King said global catastrophe events and the extendedsoft market “are lining up to harden the market.”

He said the brokerage firm is beginning “to see that in somecases,” and expected to see more hardening in the future.

The firm's acquisition strategy, particularly on the wholesaleside, is also expected to contribute to an overall improvement ininsurance segment earnings, Kelly said.