San Francisco-based bank Wells Fargo reported its insurance brokerage segment increased 24 percent in the fourth quarter of 2007 helped by the acquisition of 16 commercial brokerage firms.
The bank said insurance fees rose by $71 million to $370 million. For the year, insurance fees rose 14 percent, or $190 million, to $1.53 billion.
Revenue increases were offset by a $20 million, or 51 percent, increase in expenses in the quarter to $59 million. For the year, expenses rose 62 percent, or $159 million, to $416 million.
Wells Fargo is the parent company of Wells Fargo Insurance Services Inc., its insurance brokerage arm, which was formerly Acordia.
During a recorded conference call Howard Atkins, the company's chief operating officer, said the bank's consumer and small-business division saw double-digit growth in the 30 percentile range, while its brokerage arm also made substantial contributions.
He also noted that the company's cross-selling initiatives increased by 50 percent.
As a whole, the company reported its net income dropped 4 percent, or $36 million, in the quarter, to $8.06 billion for the year. The fourth quarter saw a more dramatic drop of 38 percent, or $82 million, to $1.36 billion.
The company attributed the losses to the impact of a $1.4 billion credit reserve.
At the top of the conference call the company said it expected credit losses would be higher in 2008.
Revenues were up 10 percent, or $3.7 billion, to $39.39 billion for 2007. For the fourth quarter, revenues increased 8 percent, or $800 million, to $10.21 billion.
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