Fourth-quarter earnings in Wells Fargo's insurance segmentdropped 15 percent over the same period in 2011 due tocrop-insurance losses, the company says.
|The San Francisco-based bank is home to one of the nation'slargest insurance-brokerage firms, and did not report insuranceresults separately. However, in a line-item breakout in its fourthquarter 2012 results, the bank reports insurance revenues fell to$395 million from $466 million from the same period last year.
|Wells Fargo owns Rural Community Insurance Services, whichprovides crop insurance to farmers through the U.S. Department ofAgriculture's Risk Management Agency. The subsidiary also offersother forms of named peril, liability and personal lines insuranceto farmers through independent agents.
|Last year's drought is expected to produce the worst underwriting results since 1988, says A.M. Best. Grossunderwriting losses for 2012 are estimated to be more than $15billion with a combined ratio of 107.
|Wells Fargo as a whole reported record net income of $5.1billion, up 24 percent, or $983 million, from $4.1 billion for thefourth quarter of 2011. Revenues rose 7 percent to $22 billion.
|For the year, net income rose 19 percent, or $3 billion, to $19billion. Revenues increased 6 percent, or $5.2 billion, to morethan $86 billion.
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