Michael White: BHC Annuity Income Rises
January 22, 2010 by N/A
Bank holding companies had better luck with income from annuity sales during the first 3 quarters of 2009 than banks did.U.S. BHC annuity commission income rose to $2 billion for the first 3 quarters, up 2.5% from $1.95 billion for the comparable period in 2008, according to Michael White Associates, Radnor, Pa.
BHC annuity commissions rose to $669.8 million in the third quarter of 2009, up 4% from $644.2 million for the third quarter of 2008.
Michael White found that 388, or 42%, of the 922 BHCs reviewed sold annuities during the first 3 quarters of 2008.
Meanwhile, at commercial banks and other banks insured by the Federal Deposit Insurance Corp., annuity sales fell to $705.5 million for the first 3 quarters of 2008, down 13% from $814 million.
Only 975, or 13%, of the 7,319 commercial and FDIC-insured banks earned annuity commissions during the period covered.
The top BHC annuity income generators were Wells Fargo & Company, San Francisco (NYSE:WFC) ($504 million in annuity commission income, down by about 18% from $612 million); JP Morgan Chase & Company, New York (NYSE:JPM) ($258 million, down almost 4% from $268 million); and Bank of America Corp., Charlotte, N.C. (NYSE:BAC) ($203 million, up 84% from $110 million).
Bank holding companies had better luck with income from annuity sales during the first 3 quarters of 2009 than banks did.U.S. BHC annuity commission income rose to $2 billion for the first 3 quarters, up 2.5% from $1.95 billion for the comparable period in 2008, according to Michael White Associates, Radnor, Pa.
BHC annuity commissions rose to $669.8 million in the third quarter of 2009, up 4% from $644.2 million for the third quarter of 2008.
Michael White found that 388, or 42%, of the 922 BHCs reviewed sold annuities during the first 3 quarters of 2008.
Meanwhile, at commercial banks and other banks insured by the Federal Deposit Insurance Corp., annuity sales fell to $705.5 million for the first 3 quarters of 2008, down 13% from $814 million.
Only 975, or 13%, of the 7,319 commercial and FDIC-insured banks earned annuity commissions during the period covered.
The top BHC annuity income generators were Wells Fargo & Company, San Francisco (NYSE:WFC) ($504 million in annuity commission income, down by about 18% from $612 million); JP Morgan Chase & Company, New York (NYSE:JPM) ($258 million, down almost 4% from $268 million); and Bank of America Corp., Charlotte, N.C. (NYSE:BAC) ($203 million, up 84% from $110 million).
