NU Online News Service, April 22, 1:06 p.m. EDT
Winston-Salem, N.C. bank BB&T Corp. says insurance services decreased slightly in the first quarter while its banking business reported net income increase of 21 percent.
BB&T reports that insurance income, which consists primarily of BB&T insurance brokerage services, decreased by 1 percent, or $3 million, to $250 million compared to the same period in 2010.
On a quarter over quarter basis, insurance income increased close to 2 percent, or $1 million, from $249 million last year.
The bank says net income for the first quarter increased 21 percent, or $40 million, to $234 million. Total revenues dropped 7 percent, or $156 million, to $2.03 billion.
During a conference call with financial analysts, Kelly S. King, chairman and chief executive officer called the results an “overall solid quarter.”
Daryl N. Bible, senior executive vice president and chief financial officer, noted that the bank sees a number of its units are expected to contribute to increase earnings including insurance, saying the “insurance market is showing improvement due to better economic conditions.”
When asked what areas of the insurance industry were expected to see increases, King said global catastrophe events and the extended soft market “are lining up to harden the market.”
He said the brokerage firm is beginning “to see that in some cases,” and expected to see more hardening in the future.
The firm's acquisition strategy, particularly on the wholesale side, is also expected to contribute to an overall improvement in insurance segment earnings, Kelly said.
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