CitiGroup Top Bank For Insurance Broker Fees
NU Online News Service, Dec. 1, 12:08 p.m. EST?CitiGroup insurance brokerage fee income this year is the highest among bank holding companies at $1.16 billion, according to a bank consulting firm study.
The findings were announced by Michael White Associates of Radnor, Pa., which put New York-based CitiGroup ahead of second place Wells Fargo & Company, San Francisco and BB&T Corp. of Charlotte, N.C. in third.
Michael White figures were for fee income year-to-date through Sept. 30. The company based its findings on preliminary data made available Nov. 26 by the Federal Reserve Board and analyzed as part of the company's series of Bank Holding Company Insurance & Investment Fee Income Reports.
Michael. White said while third-quarter data of its subsidiary bank holding company, Citicorp, was not available, Citicorp did report earning $777 million of insurance brokerage fee income, or 100 percent of CitiGroup's total as of the second quarter.
The consulting firm said Wells Fargo, owner of the large Acordia brokerage, reported insurance brokerage earnings of $762 million, and BB&T Corp., which has acquired more insurance agencies than any other bank holding company, had $433.6 million in insurance brokerage fee income.
According to the study, Bank of America Corp. based in Charlotte, N.C. registered the largest percentage increase among the leaders, increasing its insurance brokerage fee income 135.5 percent to $141.3 million and ranking seventh nationally in the first three quarters of 2004.
Michael White said much of the Bank of America improvement is due to its April merger with FleetBoston Financial Corp., Boston. In 2003, FleetBoston ranked 10th and Bank of America ranked 11th nationally in insurance brokerage fee income.
J.P. Morgan Chase & Co., New York, earned $252 million for a fourth-place ranking in insurance brokerage revenues, according to the analysis, which noted that J.P. Morgan had acquired Bank One Corp. at the beginning of the third quarter. In 2003, Bank One ranked fifth and J.P. Morgan Chase ranked eighth nationally in insurance brokerage fee income.
The firm said that reports for past top performers MetLife, Inc and Greater Bay Bancorp were not available at the time of the analysis. The company noted, however, that at the end of the second quarter, MetLife reported $1.59 billion, and Greater Bay Bancorp earned $66.5 million.
In 2003, MetLife ranked first and Greater Bay ranked ninth nationally in insurance brokerage fee income.
The data is reported by top-tier bank holding companies with $100 million or more in consolidated assets. The fee income report measures insurance, investment, and mutual fund and annuity fee income generated and compares individual bank holding company and banking industry performance data and benchmark ratios.
The report ranks the nation's top 100 bank holding companies 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.
Leaders in the ratios of insurance and investment fee income to noninterest income are ranked by the top 50 nationally and the top 25 by each asset class. BHCs can compare their performance to other BHCs nationally or to their asset class by using the mean, median and top-quartile results included in the report.
The firm said the report can be ordered by check and mail or online for $650 at www.BankInsurance.com. Customized reports can also be ordered.
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