Insurance brokerage fee income slipped in the first half of the year for bank holding companies, according to the latest Michael White Bank Insurance Fee Income Report.
During the first half of the year, bank insurance brokerage units generated $3.37 billion in fee income, down 13.2% from $3.89 billion a year earlier. The drop was due primarily to a $707 million decline in the fee income of top producers Wells Fargo and Citigroup.
Despite the drop, 258 banks were on track to earn $250,000 in annualized insurance brokerage income, and of those, 171, or 66.3%, were able to grow their revenue from the business. Thats up from 150 banks that were able to grow their insurance programs at the end of the first half of 2012.
As we saw in 2012, we are seeing real progress in the first half 2013 in the number of bank holding companies that expanded their insurance revenues, Michael White, president of Michael White Associates, a bank insurance consulting firm based in Radnor, Penn., said in a statement.
The largest banksthose with more than $10 billion in assetsproduced the greatest share of the revenue, generating $2.89 billion, or 86% of the total $3.37 billion. They also had the highest participation rates, with 81.5% participating in insurance brokerage activities, according to the report.
Wells Fargo & Co. was the top producer of insurance brokerage income in the first half of 2013, reeling in $816 million. BB&T Corp. ranked second with $715.7 million, followed by Citigroup with $376 million.
The report is based on data from all 6,940 commercial banks, savings banks and savings associations and 1,074 large top-tier bank holding companies and thrift holding companies.
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