Bank Insurance Revenues

U.S. Bank Holding Companies' total insurance revenues increased to $43.7 billion in 2007, a 0.5% increase over 2006, according to an analysis released Tuesday by the Washington-based American Bankers Insurance Assn. and Radnor, Pa.-based consultant Michael White Associates.

During 2007, 637 bank holding companies—68.1% of those reporting—earned some type of insurance-related revenue, compared with 642 in 2006, according to the analysis. Bank holding company insurance brokerage fee income increased 1% to $12.3 billion in 2007. "Insurance brokerage fee income had been racing upward at a compound annual growth rate of 19.5% from 2001 through 2006," Valerie Barton, the ABIA's executive director, said in a statement, noting that the soft property/casualty market and other factors have slowed growth. "Insurance brokerage remains healthy, and the prospects for a resumption of growth in bank insurance revenues are very positive." Citigroup Inc., Wells Fargo & Co., HSBC North America Holdings, BB&T Corp. and Bank of America Corp. were the top five bank holding companies in terms of total insurance fee income.