NU Online News Service, July 29, 2:26 p.m. EDT
BB&T continues to see growth in its insurance-brokerage business, reporting a 4 percent growth in income for the 2011 second quarter compared to the same period a year before.
The Winston-Salem, N.C. bank reports insurance income grew by $12 million to $299 million in the quarter.
BB&T says the growth was "primarily due to a seasonally stronger second quarter."
During a conference call last week, Kelly S. King, chairman and chief executive officer, told analysts that growth in insurance income was primarily on new business.
There was a "little price improvement," led by the company's wholesale division, but "not dramatic."
"We're not yet in a hard market," King says.
There continues to be too much excess capital in the insurance marketplace, he adds, and while the excess remains, the markets will stay soft.
He says insurance continues to be a "great business," which is why BB&T invests in the business, and when a hard market occurs the earnings are expected to be substantial.
"It is not going quite as fast as we like, but it is great business," says King.
Overall, BB&T reported second-quarter net income increased 46 percent, or $103 million, to $327 million. Total revenues were down 10 percent, or $254 million, to $2.2 billion.
The bank says the drop in revenue was primarily due to a $252 million in noninterest income.
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