Bank Holding Co. Insurance Premiums Up 2%.

Bank Holding Co. Insurance Premiums Up 2%.

NU Online News Service, July 28, 10:44 a.m. EDT?A hundred and one bank holding companies reported writing total insurance premiums of $24.96 billion last year, up 2 percent from $24.47 billion in 2002, a consulting firm said.

The findings were announced by Michael White Associates of Radnor, Pa. in the firm's Bank Holding Company Insurance & Investment Fee Income Report.

The MWA firm said that insurance or reinsurance income for the bank holding companies was $8.36 billion in 2003.

Data for the study was compiled from figures reported by 2,088 top-tier (or regulatory top-holder) bank holding companies with $100 million or more in consolidated assets on Dec. 31, 2003.

Other insurance underwriting findings in the report include:

? In 2003, 101 or 4.8 percent of 2,088 top-tier BHCs reported underwriting insurance premiums, down from 175 or 9.1 percent of 1,932 BHCs in 2002.

? The 74 fewer BHCs reporting insurance premiums in 2003 represented a decrease of 42.3 percent in the number of BHCs underwriting insurance, MWA said.

? One hundred and six BHCs reported $25.13 billion in gross underwriting income or losses from insurance and reinsurance activities in 2003, up 2.7 percent from $24.47 billion in 2002.

? The 106 BHCs constituted 5.1 percent of 2,088 top-tier BHCs in 2003, and they represented 69 fewer or 39.4 percent less than the 175 BHCs that reported gross underwriting income from insurance and reinsurance activities in 2002.

MWA said mean insurance underwriting income was $237.1 million among all BHCs engaged in underwriting in 2003. Median insurance underwriting income was $489,000.

Of 74 BHCs with assets over $10 billion, 43 BHCs (58.1 percent) engaged in insurance underwriting or reinsurance, MWA found. These large BHCs, the firm said, accounted for $25.02 billion in insurance and reinsurance underwriting income or 99.6 percent of the total.

Mean insurance underwriting income was $581.9 million among BHCs with more than $10 billion in assets that engaged in underwriting in 2003. Their median underwriting income was $6.7 million, MWA said.

The leading insurance underwriters among BHCs were:

? MetLife, Inc., with $20.7 billion in insurance underwriting income.

? Citigroup, Inc., $2.6 billion.

? Countrywide Financial Corp., $732.8 million.

? Wells Fargo & Company, $233 million.

? Bank One Corp., $151 million.

With $24.3 billion in total insurance underwriting income, the top five BHCs accounted for 96.9 percent of the $25.1 billion in insurance underwriting income earned by all 106 BHCs.

The remaining 101 BHCs underwrote $787.4 million in earned premiums. Twenty-three BHCs earned $10 million or more in insurance underwriting income in 2003. Sixty-two earned less than $1 million in insurance underwriting income.

The 150-page 2003 BHC-FIR report identifies performances and trends among insurance, investment, and mutual fund and annuity fee income by comparing various performance measurements and benchmark ratios for 2003 to those of 2002.

The report ranks the nation's top 100 BHCs in insurance, investment, and mutual fund and annuity fee income and the top 50 BHCs for each of eight asset-size classes and six regions.