MWA: Bank Insurance Brokers Grow
May 3, 2011 by Allison Bell
Bank insurance brokerage units increased their brokerage fee income to about $13 billion in 2010, up 7.9% from the total for 2009, according to Michael White Associates L.L.C. (MWA).
MWA, Radnor, Pa., has based those figures on an analysis of reports from 6,927 commercial banks and savings banks insured by the Federal Deposit Insurance Corp., and from 911 large bank holding companies (BHCs).
Half of the 162 BHCs with at least $1 million in insurance brokerage income increased their brokerage revenue in 2010, and 74 saw brokerage income fall. One BHC reported no change in brokerage revenue, and six were reporting brokerage revenue for the first time.
Life insurance seems to have been doing better in 2010 than other products sold by BHCs, MWA says.
BHCS with more than $10 billion in assets increased insurance brokerage revenue 8.3% in 2010; BHCs with $1 billion to $10 billion in assets reported a 0.2% drop in their brokerage revenue.
– Allison Bell