BB&T bank said its insurance operations increased more than 3 percent in the fourth quarter primarily on the results of improved sales of insurance products.
The Winston-Salem, N.C.-based company said insurance revenues increased by $7 million to $221 million compared with $214 million in the fourth quarter of 2006. The results were offset by soft market pricing, BB&T said.
During an analyst's conference call John Allison, BB&T's chief executive officer, said while the company will avoid making banking acquisitions this year, it is seeking to acquire insurance agencies.
He said the focus will be on small agencies, especially managing general underwriters. He called this a prime time for making acquisitions of agencies at a time when banks are not an attractive acquisition investment.
Overall, he said he believes the company will do well and perform well through the year despite the challenges banks are seeing in the lending area.
Overall, the bank reported net income rose 64 percent, or $160 million, to $411 million for the fourth quarter. Earnings per share rose from 46 cents for the fourth quarter of 2006 to 75 cents a share in 2007.
Combined interest and non-interest income rose 12 percent, or $1.17 billion, to $10.74 billion for the year and rose 11 percent, or $262 million, to $2.73 billion.
Mr. Allison said BB&T has avoided many of the lending problems other banks have experienced through closer attention to loan underwriting. While there will be challenges ahead, he said the bank is positioned to weather the storm better than its peers.
He said there is a 50-50 chance the economy could go into a recession and that could affect future credit reserving.
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