BB&T's Insurance Brokerage Still 'Breaking Records'

NU Online News Service, July 22, 2:25 p.m. EDT

BB&T Corp. said its insurance brokerage unit produced record revenues in the quarter and its CEO said the brokerage is seeing signs of hardening in the insurance marketplace.

The Winston-Salem, N.C.-based bank said its insurance brokerage operations produced record revenues of $281 million in the quarter, up 19 percent, or $44 million, compared to the same period last year.

The company attributed the increase in performance primarily to growth in property and casualty, credit and employee benefit insurance commissions, including growth from acquisitions.

During a conference call on Friday with analysts, Kelly S. King, BB&T's president and chief executive officer, said that while the insurance brokerage side's performance was helped by acquisitions, revenues were also up 3.5 percent for existing offices.

He called the results "impressive," adding that the brokerage arm is "obviously moving market share"--an added accomplishment in a soft market. Mr. King observed that the markets are beginning to show signs of hardening, especially on the wholesale side.

The bank as a whole reported net income of $208 million, down $223 million, or 52 percent, from the same period last year in the quarter. For the six months, net income came in at $526 million, down 39 percent, or $334 million.

The results were affected by a special assessment from the Federal Deposit Insurance Corp. and repayment to the U.S. Treasury Department of its loan from the Troubled Asset Relief Program.

"We are very, very pleased" with the results of the bank in light of the challenging economy, Mr. Kelly said.