Winston-Salem, N.C., bank BB&T said its insurance services grew 8 percent in the first quarter of this year thanks to new product initiatives introduced in the second half of 2007.
BB&T said insurance revenues grew $15 million to $212 million in the quarter. The bank also said the insurance operations have grown with four acquisitions in Florida, Connecticut and Georgia.
The bank said its insurance arm has acquired Burkey Risk Services of metro Orlando, Fla.; Savannah Reinsurance Underwriting Management LLC, a reinsurance broker based in Stamford, Conn.; Alpharetta, Ga.-based Ott & Company; and Ramsay Title Group based in Norcross, Ga.
John A. Allison, chairman and chief executive officer, called the insurance results "extremely impressive" during an analyst's call held today.
He said insurance commissions in the quarter grew 4.9 percent compared to the same period last year, which he noted was a challenge in a soft market with rate declines of 10-to-15 percent.
"We are obviously moving share pretty rapidly in the insurance business," he said.
Mr. Allison said the results were not because of any one-time revenue infusion but market shifts that benefited the broker.
The bank reported net income increased close to 2 percent, or $7 million, to $428 million in the first quarter compared to the same period last year. Net income per share rose 1 cent to 78 cents.
"I am pleased to report solid first-quarter results, particularly given the ongoing challenges in residential real estate markets and the broader financial markets," Mr. Allison said in a statement.
"Our core businesses are performing reasonably well, producing healthy loan growth and improved revenue growth during the quarter. We are also benefiting from a liability-sensitive balance sheet, which generated a very positive improvement in our net interest margin during the quarter. While market conditions are challenging, they have provided opportunities for BB&T to develop new client relationships, and I believe we will emerge from this credit cycle a stronger institution."
The company reported interest income increased 8 percent, or $72 million, to more than $1 billion, but $223 million provision in credit losses dropped that figure to $794 million. The provision in credit losses was an increase of 214 percent, or $152 million, from the same period in 2007.
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