Bank-holding companies reported $6.22 billion in insurance-brokerage fee income for 2013, up slightly from $6.2 billion in 2012 as increases by most bank-holding companies were offset by declines at some of the larger ones.
An analysis, the "Michael White-Succeed Advisors Bank Insurance Fee Income Report," prepared by Succeed Financial Advisors and Michael White Associates, points out that the flat year-over-year performance "was attributable generally to 20 big banking companies that collectively accounted for a decline of $732 million in insurance-brokerage income."
Wells Fargo & Company reported the most insurance brokerage fee income, at $1.46 billion, a 5.98% decrease from 2012. BB&T Corp. was second with $1.38 billion, a 10.54% increase from the year before. BB&T owns more agencies than any other financial-holding company, the analysis notes. Citigroup Inc. placed third with $733 million, a 37.4% decrease compared to 2012.
Wells Fargo and Citigroup alone accounted for a $531 million drop in insurance-brokerage income, the analysis says.
Bank of America Corp. ($289 million), American Express Company ($184 million), Regions Financial Corp. ($114.4 million), Morgan Stanley ($99 million), BancorpSouth ($98.1 million), Discover Financial Services ($78.9 million) and Frist Command Financial Services ($76.7 million) rounded out the top ten.
Bank-holding companies with over $10 billion in assets, which had the highest participation in insurance-brokerage activities at 81.3%, reported $5.25 billion in insurance-fee income, a 0.8% decline from 2012. Companies with assets between $1 billion and $10 billion reported $725.4 million in insurance-fee income, up 5.7%. Companies with assets between $500 million and $1 billion reported $244 million in insurance-fee income, up 9.9%.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.