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Bank Insurance and Brokerage News Citibank NA Tops Banks in Insurance Revenues in 1st Quarter Commercial banks and savings banks reported $1.207 billion in insurance revenues in the first quarter of 2008, up from $1.181 billion in the fourth quarter and $1.093 billion in the same quarter (1st) of the previous year (2007). 1st quarter revenues represent the sum of insurance brokerage and insurance underwriting revenues (the last two columns in the table below.) Annuities are not included. Citibank NA was again the leading bank, followed by BB&T and Bank of America. 2,808 operating banks and savings banks reported some insurance activity in the first quarter. They are not to be confused with bank holding companies, which report separately. Here are the Top 15: Source: Singer’s Annuity & Funds Report *** Banks that sold insurance were more profitable in 2007 That’s one conclusion from an examination of 2007 bank data by the Bank Insurance Market Research Group (BIMRG) Examining FDIC call report data, the Mamaroneck, New York-based research group found that banks with some insurance activity had 44 percent higher (median) net income than the typical bank in 2007. Moreover, this trend toward higher (median) net income persisted in all asset-size groups. Among banks with $10 billion or more in assets, for instance, banks with some insurance activity in 2007 scored 15 percent higher in (median) net income (see table below).
Overall, the median net income at 7,787 operating banks and savings banks was $1,071,000 in 2007. The median at 3,596 banks and savings banks that reported some insurance activity—less than half (44%) of the total number of banks—was $1,543,000. The largest discrepancy was in the smallest banks. Median net income at 5,533 banks with assets less than $250 million was $655,000 in 2007. (That is, the middle ranking bank in this asset-size group reported $655,000 in profits.) Among the 2,377 with some insurance activity, however, the median was $919,000—40 percent higher. The ratio of noninterest income to total bank revenues among all 7,787 banks was 14 percent. At banks with insurance activity, this closely watched ratio was 17 percent. A fuller analysis will be presented in BIMRG’s upcoming Who’s Who in Bank Insurance. (May 8, 2008) *** BB&T TO ACQUIRE UNION BANK OF CALIFORNIA’S INSURANCE UNIT BB&T Insurance Services, a subsidiary of BB&T Corporation (Charlotte, NC), said yesterday (April 23) that it
has reached an agreement with Union Bank of California, N.A. to purchase its San Diego-based insurance subsidiary, UnionBanc Insurance Services Inc. *** First Financial Buys Somers-Pardue Agency Banker and insurance broker First Financial Holdings Inc. (Charleston, SC) announced in April that its subsidiary, First Southeast Insurance Services Inc ., bought The Somers-Pardue Agency Inc. for $18.8 million Under the deal’s terms, the total price will also include some possible performance incentives over the next three years. Somers-Pardue, an independent insurance agency based in Burlington, N.C., will retain its name and current management and staff, First Financial said. First Financial Holdings, a thrift holding company, runs one of largest insurance operations in South Carolina. It ranked 38th among banks in insurance in the 2007 edition of Who’s Who in Bank Insurance. (April 10, 2008) *** Citigroup, Wells Fargo, and BB&T Were Top Banks in Insurance in 2007
ABP is asset-base penetration (ins. revenues/assets). Source: Who’s Who in Bank Insurance Citigroup, Wells Fargo, and BB&T were the top U.S. bank holding companies (BHCs) in 2007 as measured by (non-annuity) insurance brokerage revenues. These three bank companies also headed the list in 2006 (see table above). Wells Fargo increased its insurance brokerage revenues 19 percent in 2007, mainly through acquisition—most notably its purchase of Greater Bay Bancorp, itself a top 10 ‘bank in insurance’ in 2006. (Greater Bay had owned ABD Insurance, a large retail brokerage firm.) Bank of America’s revenues fell 7 percent after selling its commercial insurance agency to Hilb Rogal & Hobbs Co. in the second half of 2007. JPMorgan Chase’s revenues plummeted 66 percent, largely the result of the sale of its Zurich Insurance legacy insurance business to Protective Life Insurance in July 2006. Wachovia’s revenues dropped 60 percent mainly because the bank included annuities among its 2006 revenues. In 2007, the government specifically directed BHCs to “exclude income from annuity sales and referrals” when reporting insurance brokerage revenues (which most had been doing before anyway). BancorpSouth, Inc. (MS) and Unionbancal Corp. (CA) joined the top ten list for the first time. Both have substantial commercial insurance operations. BancorpSouth, with only $13.2 billion in balance-sheet assets, was the smallest bank on the top ten list--by a wide margin. The rankings here are based on an examination of recent Federal Reserve Board Y-9 filings. A more comprehensive bank insurance list will appear in an upcoming issue of Singer’s Annuity & Funds Report, with more in-depth analysis, including narrative, to appear in Who’s Who in Bank Insurance, BIMRG’s study of the top 100 banks in insurance, published annually in the fall. (March 10, 2008) *** Adirondack Trust buys Another Upstate NY Insurance Agency Adirondack Trust Co. (Saratoga Springs, NY) has acquired Amsure Associates Inc. an independent insurance agency based in Albany, N.Y. The 63-year-old Amsure provides risk management, commercial and personal insurance, surety, life insurance and employee benefit services throughout the eastern United States. It works with 20 different insurance companies and does about $90 million a year in premiums. This is Adirondack Trust's fourth insurance agency acquisition in seven years. It previously acquired Wise Financial Group of Saratoga Springs, Round Lake Insurance of Malta and Client's First of Ballston Lake, all in upstate New YorkState. Adirondack Trust is owned by 473 Broadway Holding Corporation, a bank company with $713 million in assets that ranked 83rd among bank holding companies in insurance brokerage revenues ($3.41 million) in the first nine months of 2007, according to Who’s Who in Bank Insurance. Insurance brokerage accounted for nearly half (49%) of the company’s noninterest income. In 2006, 473 Broadway ranked 113th among bank holding companies, with $2.96 million in brokerage revenues. Terms of the deal between the Saratoga Springs bank and Amsure owner Guy Alonge III were not disclosed, but Alonge will serve as president of the Amsure Division of Adirondack Trust's insurance operations. All Amsure employees with join the bank. In addition to its Albany base, the firm has a satellite office in Wilton. Industries served include construction, research & development, life sciences/technology, nonprofits, manufacturing, health care, education, and real estate. (February 14, 2008) *** Webster Financial Sells Its Insurance Agency to USI Holdings USI Holdings Corporation announced on Friday (February 1) the closing of its acquisition of Webster Insurance, Inc., from Webster Financial Corporation, the Connecticut-based holding company for Webster Bank, N.A. Webster Insurance is one of the largest middle-market insurance brokerage firms in New England with offices in Connecticut, Massachusetts and Rhode Island. It was a leader among bank-owned insurance businesses, ranking 29th in the most recent edition of Who’s Who in Bank Insurance (2007 Edition), but its ranking had been dropping in recent years. Two years earlier, for instance, it claimed the 23rd position. Friday’s sale comes as little surprise. In July 2007, Webster Financial announced that it would sell the insurance unit after a 10-month strategic review of its operations concluded that Webster should concentrate on the businesses it knows best and those that are most profitable: commercial and consumer banking. Webster Financial will retain Webster Risk Services, a third-party workers’ compensation administrator. The companies also announced a joint marketing arrangement between USI and Webster Bank to provide expanded products and services to their respective clients. Webster Insurance specializes in commercial property & casualty and employee benefits insurance for middle-market companies and personal lines insurance for individuals throughout the New England region. USI Holdings (Briarcliff Manor, NY), a distributor of insurance and financial products, is a portfolio company of Goldman Sachs Capital Partners, a private equity affiliate of Goldman Sachs & Co. In recent years, private equity firms have acquired many insurance brokerage firms, but some have seen a fall off in activity recently. “Despite the credit crunch which chased away many private equity buyers, there will be more deals to come in 2008 from this buyer segment,” predicted Patrick Linnert, executive vice president of MarshBerry, which advised Webster in the transaction. “Private equity is not dead as many consultants predicted. On the contrary, like banks, there are just fewer committed parties.” (February 2, 2008) *** BancorpSouth Insurance to Buy Texas Agency BancorpSouth Insurance Services, Inc., a subsidiary of BancorpSouth Bank, headquartered in Tupelo, Miss., has agreed to acquire the JMG/IC Insurance Agency, Inc., based in Nacogdoches, Texas. Founded in 1962, the agency now generates written premiums in excess of $100 million. Its major lines of business include commercial, group, personal, surety, life and health insurance products. It operates affiliated branches and divisions in Itasca, Illinois, a Chicago suburb, and in Houston, Livingston, Tyler, Henderson and Athens, Texas. The effective date of the transaction will be Jan. 1, 2008. Financial terms of the acquisition were not disclosed. BancorpSouth Bank is a wholly-owned subsidiary of BancorpSouth, Inc., a financial services company with approximately $13.2 billion in assets that ranked 13th among banks in insurance in the 2007 edition of Who’s Who in Bank Insurance. BancorpSouth Bank operates approximately 290 commercial banking, mortgage, insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas. (February 4, 2008). *** BB&T to acquire reinsurer AmRisc LP, a subsidiary of Branch Banking and Trust Company (Winston Salem, NC) plans to purchase reinsurance broker Savannah Reinsurance Underwriting Management LLC (Savannah Re) of Stamford, Connecticut. Savannah Re provides property facultative reinsurance underwriting and related risk transfer services, including catastrophe modeling and claims management. It is owned by Glencoe U.S. Holdings Inc., an indirect wholly owned subsidiary of RenaissanceRe Holding Ltd. The acquisition is expected to close in early February. Terms were not disclosed. Branch Banking and Trust Company is the principal subsidiary of BB&T Corporation, the nation’s third largest bank insurance operation, according to the 2007 edition of Who’s Who in Bank Insurance. "This acquisition allows us to expand our underwriting capabilities to include facultative reinsurance risk in addition to our commercial property underwriting in the excess and surplus lines segment of the wholesale insurance market," said AmRisc Chief Executive Officer Dan Peed. Houston-based AmRisc was created in 2002 as part of BB&T's wholesale insurance business. It underwrites middle-market commercial policies for insurers such as Lloyd's of London, Berkshire Hathaway Inc. and Renaissance Re, which pay the unit a fee and assume the risk. AmRisc also operates offices in Birmingham, Ala., and Morehead City, N.C. Savannah Re covers a broad range of property risks, including earthquake, flood, windstorm and surplus lines. Insurance companies buy reinsurance for their own protection to share the risk of unexpectedly high claims. Reinsurance enables an insurance company to expand capacity; stabilize underwriting results; finance its expanding volume; secure catastrophe protection against losses; or withdraw from a line of business or geographical area within a specified period of time. (January 18, 2008) *** Jackson National Names Mantelli To Lead Bank Business Development Team Jackson National Life Insurance Company has strategically realigned its National Accounts group within Jackson National Life Distributors LLC (JNLD). Doug Mantelli, 33, formerly vice president of marketing strategy for JNLD, has been selected to serve as vice president of the newly formed Business Development team, which will focus on developing new bank and regional broker-dealer relationships in support of the company’s annuity and mutual fund distribution efforts. Jennifer Seamount, JNLD VP, National Accounts, will lead the group’s internal support team, which is responsible for group operations, conferences, due diligence, and reporting. JNLD SVP of National Accounts, Paul Fitzgerald, will oversee the group, which also includes eight key account managers, whose primary goal is to increase penetration within Jackson’s existing accounts. Mantelli joined Jackson in 2002 as a director for national sales development. Most recently, he was responsible for the company’s annuity and mutual fund marketing efforts, supporting all distribution channels. (December 20, 2007) *** Wells Fargo Acquires Four More Insurance Agencies Wells Fargo Insurance Services, Inc., a subsidiary of Wells Fargo & Company, announced the completed acquisition of four more insurance agencies. This brings to twelve the number of agencies acquired in 2007 by the nation’s largest bank-owned brokerage. The acquired firms are: — Rogers & Belding Insurance Agency, Inc., a single-office agency in El Paso, Texas and its subsidiaries; — Dover, N.H.-based The Richardson Group; — the Employee Benefits Division of The Brehm Group, Inc. of Minneapolis; — Technology Insurance Services, Inc., a single-office agency in Redwood City, California. Wells Fargo Insurance Services, formerly Acordia, Inc., is the fifth-largest insurance brokerage in the United States, with more than 160 offices in 38 states. It has more than 5,000 insurance professionals who place more than $15.5 billion of risk premiums. Wells Fargo acquired Acordia in May of 2001. (December 19, 2007). *** Northeast Bank’s Insurance Buying Spree Continues Northeast Bank Insurance Group, Inc., a wholly owned subsidiary of Northeast Bank (Lewiston, ME), has been on something of an insurance agency buying spree this past year. This week it announced its purchase of The Hyler Agency (Thomaston, ME), family-owned agency with $2.4 million in annual premiums. This follows Northeast’s November acquisition of Spence & Mathews Insurance, an agency with 16 employees located in two offices--Berwick, ME and Rochester, NH—and more than $10 million in annual property/casualty premiums. All told, Northeast has made some half dozen agency acquisitions over the last year. Northeast Bank is a wholly owned subsidiary of Northeast Bancorp, which has more than $574 million in assets and operates 26 retail locations throughout western, central, mid-coast and southern Maine, and in seacoast New Hampshire, including 11 bank branches and 14 insurance agencies. With $1.96 million in insurance brokerage revenues in 2006, Northeast Bancorp was 142nd among U.S. bank holding companies, according to Who’s Who in Bank Insurance. But its ranking has been rising. It was 104th in the first half of 2007. Insurance revenues over the first nine months of 2007 were $2.34 million compared with $1.53 million for the same period in 2006. More notably, perhaps, insurance at Northeast Bancorp accounted for 13 percent of all adjusted operating income in the first nine months of 2007, one of the highest such ratios among U.S. banking companies. Jim Delamater, President and CEO of Northeast Bank, noted, “Northeast will continue to entertain opportunities to diversify and acquire well-run and profitable agencies when it is in both parties' best interests. It is our goal to give customers unlimited access to financial services, all from one local company.” (December 13, 2007) *** BB&T Insurance Services to Acquire Georgia Insurance Agency BB&T Insurance Services announced plans to expand its metro Atlanta operation with the acquisition of Ott & Co. of Alpharetta, Ga. Founded in 1978, Ott & Company is a full-service employee benefits firm. (December 13, 2007). *** At BNCCorp, insurance Accounted For 53 percent of parent’s net income—Before the Ax fell The recently published Who’s Who in Bank Insurance (2007 Edition) identified 23 institutions where insurance was a major (reportable) business segment in 2006. Seven of these bank companies drew 10 percent or more of net income (not revenues) from insurance. These were BNCCorp (53%), Oneida Financial (24%), Leesport Financial (19%), Greater Bay Bancorp (17%), Evans Bancorp (17%), ACNB (14%), and First Financial Holdings (13%) (See table below). The median contribution to the parent company’s net income was 5.6 percent at these 23 institutions. For every $100.00 of bank company profits, insurance accounted for $5.60 in 2006. In the previous year the median earnings contribution was 4.4 percent, or $4.40 for every $100 of net income. The top ten bank companies in this ratio are listed in the table below. All 23 are listed in the publication, which became available December 1st.
All dollars in millions. Source: Who’s Who in Bank Insurance Insurance, in fact, may have stood out too much at BNCCorp. In June 2007 the company sold its insurance agency to Hub International for $37.25 million in cash. (December 13, 2007) *** New Wealth Management Chief at Bank of America Bank of America has appointed Keith Banks as President of Global Wealth and Investment Management, its wealth management unit, which includes BofA’s brokerage business. He replaces Brian Moynihan who takes over the bank’s troubled investment banking unit, Global Corporate and Investment Banking. BofA said it will lay off 3,000 employees this week after reporting a 32 percent drop in third-quarter earnings. Currently, Banks is serving as president of Columbia Management, Bank of America's asset management organization. In July, the bank named Jeffrey Carney, President of Banc of America Investment Services, BofA’s brokerage unit. (October 25, 2007) *** Top 3 Bank Insurance Brokers in 1st Half: Citigroup, Wells Fargo, and BB&T Citigroup, Wells Fargo, and BB&T Corp. were the top bank companies in insurance brokerage revenues in the first half of 2007. Three of the top ten on the list below are not likely to be on the list one year from now. Bank of America recently agreed to sell its commercial brokerage operation, as did Commerce Bancorp, which is to be acquired by TD Banknorth. Greater Bay Bancorp has been purchased by Wells Fargo.
All dollars in millions. Source: Who’s Who in Bank Insurance Six hundred and ten bank holding companies reported some insurance brokerage revenues in the 1st half. Of particular note on the list above: BB&T derives 30 percent of all noninterest income from insurance brokerage, the highest percentage of any bank company with more than $10 billion in assets. A more in-depth look at the top 100 banks in insurance will soon be available with the November 2007 publication of Who’s Who in Bank Insurance. *** Beneficial Mutual Bancorp Acquires Insurance Agency Beneficial Mutual Bancorp, Inc. (Philadelphia), parent company of Beneficial Bank, announced that, through the bank's wholly owned subsidiary, Beneficial Insurance Services, LLC, it has acquired the business of the CLA Agency, Inc. (Newtown Square, PA) a full-service property and casualty, and professional liability insurance brokerage company with 28 employees. Beneficial Insurance Services was formed in 2005 by Beneficial Bank to acquire the business of Paul Hertel and Co., Inc., which serves as the foundation for the company's continued growth in insurance revenue. With the addition of CLA, the annual premium volume of Beneficial Insurance Services is expected to exceed $100 million, with anticipated annual revenue of approximately $10 million. Beneficial ranked 97th among bank companies with $4.28 million in insurance brokerage revenues in 2006, according to Who’s Who in Bank Insurance. (October 11, 2007) *** TD Banknorth to Buy Commerce Bank; Will Sell Insurance Unit to George Norcross Canada's TD Bank Financial Group’s will acquire New Jersey-based Commerce Bancorp Inc. for $8.5 billion, it was announced yesterday (October 2). In addition, Commerce has agreed to negotiate the sale of its $1 billion Commerce Banc Insurance Services, Inc. (CBIS) to George E. Norcross, III, who founded the insurance division and is currently chairman and chief executive officer of CBIS and a director of the Commerce board. Any sale would be subject to the approval of TD Bank Financial Group. Commerce Bancorp’s insurance operation was ranked 10th among U.S. banks in insurance in 2006, according to Who’s Who in Bank Insurance, generating $83.08 million in revenues. The agency, which sells mostly commercial property and casualty insurance, surpassed $1 billion in premium volume in 2006 for the first time. It has some 500 employees. The insurance business has been built by acquisition; Commerce purchased some 20 insurance agencies since 1996, when it acquired Norcross’ Keystone National Insurance agency, although in recent years it became less active, believing that many agencies on the market were overpriced. Why sell the insurance division? “I think it's simple. George [Norcross] has expressed an interest in buying it,” said Commerce Bancorp CEO Robert Falese. “It is not a major part of our earnings stream and if we can get a fair price, we would be interested in selling it,” Newhouse News Service reported. Falese would not comment on an asking price. Insurance chief Norcross has been one of the bank insurance industry’s more colorful characters. He has been an active figure in New Jersey state politics, once identified by a New Jersey newspaper as the “unofficial leader of the powerful Camden County Democratic Party.” He was also Commerce Bancorp’s second largest shareholder. “Norcross, 51, of Cherry Hill, has long had a seat at the table when statewide Democratic political decisions are made,” noted the Philadelphia Inquirer more recently. “It makes a lot of sense to sell off the insurance business,” Gerard Cassidy, an analyst with Maine-based RBC Capital Markets, told the Cherry Hill Courier Post. “There's headline risk with Norcross, and TD Bank runs a very different kind of ship than Commerce did.” According to the article, “the controversial Norcross also isn't a good fit for TD's squeaky clean image.” TD Bank Financial’s U.S. banking unit, TD Banknorth, N.A., operates banking divisions in Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania and Vermont. It ranked 20th among U.S. banks in insurance in 2006, according to Who’s Who in Bank Insurance, with $56.10 million in revenues. Some context for the bank acquisition was offered by the International Herald Tribune: “For Commerce, which is based in Cherry Hill, N.J., the sale is the latest step in a controversy created by Vernon W. Hill II, its founder and former chairman and chief executive, who intermingled the bank's business with the businesses of its directors, officers and family members. Like Commerce, Toronto-Dominion, which already operates on the East Coast through TD Banknorth, emphasizes retail banking and customer service in its operations.”(October 3, 2007). *** Huntington Acquires Columbus Insurance Agency Huntington Bancshares Inc. (Columbus, OH) announced (October 2nd ) its acquisition of Archer-Meek-Weiler Agency, Inc., Columbus, Ohio. Archer-Meek-Weiler is a full-service agency that sells personal and commercial insurance as well as group benefits. Archer-Meek-Weiler was merged into Sky Insurance, Inc., Huntington Bancshares' insurance agency affiliate, effective immediately. Terms of the deal were not disclosed. Archer-Meek-Weiler is the largest independent agency in Columbus, Ohio, with more than $60 million in premium volume and 40 employees. It was founded in 1909. It is anticipated that all employees currently working at Archer-Meek-Weiler will be retained by Sky Insurance and will remain in the Columbus, Ohio area. “Archer-Meek-Weiler is a highly respected agency that has served clients in the Central Ohio area very well,” said Jerry Batt, President of Sky Insurance, now part of Huntington. (Huntington purchased Sky Financial for $3.6 billion in a deal that was completed in July 2007). “They will not only add expertise to our organization, but they will help us develop our strategy to expand client relationships within Huntington's Central Ohio Region, where there is already a strong banking presence.” (October 4, 2007) *** First Community Bancshares, Inc. Acquires Foundation Insurance Agency First Community Bancshares, Inc. (Bluefield, VA) announced on Friday (September 28th) the acquisition of GreenPoint Insurance Group, Inc., a High Point, North Carolina-based insurance agency. GreenPoint is a full-service insurance agency that currently manages over $38 million in total premiums. First Community Bancshares, Inc. will operate GreenPoint as a wholly-owned subsidiary and will retain the GreenPoint name. Shawn C. Cummings will continue as President of GreenPoint and will be responsible for the operation of the agency. According to John M. Mendez, President and Chief Executive Officer of First Community Bancshares, Inc., “We are extremely pleased to have the GreenPoint Insurance Group join First Community. The addition of GreenPoint and the ability to offer insurance services complements our banking and wealth management services. With the addition of insurance services through GreenPoint, First Community now provides a full range of financial services including banking, investments, wealth management and Trust.” First Community Bancshares, Inc. is a $2.17 billion financial holding company and is the parent company of First Community Bank, N. A. First Community Bank operates through fifty-six locations and four wealth management offices in the four states of Virginia, West Virginia, North Carolina and Tennessee. GreenPoint Insurance will be the bank’s foundation agency. In 2006, First Community reported only $176,000 in insurance brokerage revenues, ranking 449th among banking companies, according to Who’s Who in Bank Insurance. (September 29th, 2007) *** Bank of America To Sell Its Insurance Agency to Hilb Rogal & Hobbs Hilb Rogal & Hobbs Co., the nation’s 8th largest insurance brokerage firm, said it would purchase Banc of America Corporate Insurance Agency LLC (BACIA) to grow its business in the Northeast. The transaction is expected to be completed during the fourth quarter and excludes the division's consumer insurance business. The insurance agency is a segment of Bank of America Corp. BACIA, based in Cranford, New Jersey, has 15 locations in seven states. It had revenue of $66.3 million last year and claims to be the 27th largest U.S. insurance broker. The agency's focus is on New Jersey, Pennsylvania, and New York, and it is expanding its business in New England, Hilb Rogal said.(September 14, 2007) *** Northeast Bank Snags Another Insurance Agency Northeast Bank Insurance Group, Inc., a wholly owned subsidiary of Northeast Bank (Lewiston, ME), has acquired its fifth insurance agency in less than a year—The Hartford Insurance Agency. Founded in 1935, Hartford (Lewiston, ME) sells property and casualty insurance (P&C) as well as employee health insurance. It generates more than $8 million in annual premiums and has approximately 3,700 customers and 9 employees. “With the increased competition in the P&C business, spinning off the agency to a larger player like Northeast Bank Insurance Group made total sense,” said Lucas Hartford, President of The Hartford Insurance Agency. “My grandfather and father started this business with a mission to really help people through the toughest of times; Northeast has the resources to carry on with that mission. They have more products, a growing lineup of national carriers and a larger footprint in Maine.” “Acquiring The Hartford Insurance Agency provides mutual benefits for both companies,” said Craig Sargent, President of Northeast Bank Insurance Group, Inc. “Hartford’s very successful Health First employee health insurance program completes Northeast’s product portfolio. And perhaps, most importantly all nine of their employees will be joining our team.” When asked about the future of Northeast Bank Insurance Group, Jim Delamater, President and CEO of Northeast Bank, noted, “Our strategic plan calls for the full diversification of our revenue streams, to achieve that end we will continue to take bold steps to grow our insurance division to deliver banking, insurance and investment products seamlessly.” The four previous agency acquisitions Northeast completed this past year—all in Maine—included Palmer Insurance in Turner, Sturtevant & Ham in Livermore Falls, Southern Maine Insurance Agency in Scarborough and, most recently, the Russell Agency in Madison. Northeast Bank, a wholly owned subsidiary of Northeast Bancorp, has over $557 million in assets and operates 24 retail locations throughout western, central and mid-coast Maine, including 11 bank branches, 12 insurance agencies and a financial center. With $1.96 million in insurance brokerage revenues, Northeast Bancorp was 142nd among U.S. bank holding companies in 2006 , according to Who’s Who in Bank Insurance. But its ranking has been rising. It was 108th in the first quarter of 2007.(August 31, 2007) *** BancorpSouth Insurance acquires Arkansas Insurance agency BancorpSouth Insurance Services Inc. has acquired the Insurance Network of Jonesboro, Arkansas. BancorpSouth Insurance Services, a subsidiary of Tupelo, Mississippi-based BancorpSouth Bank, said it will merge Insurance Network with its Little Rock insurance division, Ramsey, Krug, Farrell & Lensing (RKF&L). Terms of the merger were not released. Insurance Network was originally incorporated as the Jonesboro Insurance Agency in 1971. It serves clients in aviation, banking, construction, manufacturing and the professional and retail markets. RKF&L was founded in 1932 and became part of BancorpSouth Insurance Services Inc. in 2003. BancorpSouth Bank is a wholly-owned subsidiary of BancorpSouth Inc ., a financial holding with approximately $13.2 billion in assets based in Tupelo. BancorpSouth Bank operates 290 commercial banking, mortgage, insurance, trust and broker and dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas. Among banking companies, BancorpSouth ranked 13th in insurance brokerage in 2006 with $68.59 million in revenues, according to Who’s Who in Bank Insurance, up 15 percent from $59.60 in 2005 when it ranked 17th. (September 6, 2007) *** National City Purchases Another Employee Benefits Business National City Insurance Group, a unit of National City Corporation (Cleveland, OH), appears to be getting serious about its employee benefits insurance business. On August 1st, it announced that it had acquired Thompson Associates, the largest employee benefits advisory firm in Louisville, Kentucky, with more than 1,000 clients and over $300 million premium under management. This follows National City Insurance Group’s recent acquisitions of other employee benefits businesses, including that of the HE Hoffman Group, Inc. in St. Louis; Valley Financial Group Agency, Inc. of Youngstown, Ohio; and the Stellar Group of Richland, Michigan. “The goal of National City Insurance Group is to grow our annual employee benefits insurance revenue significantly,” said Thomas J. Cook, president of National City Insurance Group, specifically through “strategic acquisitions of leading benefits firms throughout our footprint.” In 2006, National City reported insurance brokerage revenues of $66.2 million, 16th among bank companies, according to Who’s Who in Bank Insurance (2007 Edition). Much of that, however, was annuity revenue. In the first quarter of 2007, when annuity revenues were excluded, National City reported only $6.9 million of insurance brokerage revenues, 28th among bank holding companies. (August 6th, 2007). *** Webster To Put Its Insurance Agency Up For sale Webster Financial Corp., the parent of Webster Bank, said it will put its insurance agency, Webster Insurance, up for sale. According to a July 25th story in the Hartford Courant, the decision comes after a 10-month strategic review by Webster Financial of its operations. “The review concluded that Webster should concentrate on the businesses it knows best and those that are most profitable: commercial, consumer and retail banking. “Since Waterbury-based Webster started acquiring insurance agencies in 1998, it has built one of the largest agencies in the state, with $500 million in premiums and $40 million in annual revenue,” said the article. Webster’s insurance performance has flagged recently, however. It was ranked 29th among U.S. “banks in insurance” in 2006, with brokerage revenues of $38.8 million, down from $44.02 million in 2005 when it ranked 25th, according to the soon-to-be-published Who’s Who in Bank Insurance (2007 Edition). (July 25th, 2007.) *** Guaranty Insurance Services Acquires Texas Agency Guaranty Insurance Services Inc. (GIS), an affiliate of Guaranty Bank (Austin, TX), announced it has acquired Hilliard Box Insurance (HBI) in Tyler, Texas. HBI has 31 employees and annual revenues of $4.5 million and is a significant addition to Guaranty Insurance. HBI's employees will remain on board and the agency's graphic look will stay the same. GIS has been growing steadily in recent years. It reported insurance revenues of $65 million in 2006, up from $61 million in 2005 and $47 million in 2004. It ranks 17th among U.S. ‘banks in insurance,’ according to the soon to be published Who’s Who in Bank Insurance (2007 edition). GIS has made a number of recent acquisitions. In February 2002, it bought James Econn and Company Insurance of Los Angeles, Calif. In February 2004, Guaranty acquired TCT Insurance Group, one of the largest agencies in the Dallas-Ft. Worth Metroplex. And in February 2005, Guaranty Insurance made its largest acquisition to date, Walter Mortensen Insurance of Bakersfield, Calif., doubling the agency's size in California. Guaranty Insurance Services has offices in Texas' major metropolitan areas, as well as offices in California's Los Angeles and Central Valley regions. Its core business includes retail property and casualty insurance, risk management, and life and health insurance. Guaranty Insurance Services Inc. is a member of the Guaranty Financial Services family of companies, which includes Guaranty Bank. (July 19, 2007) *** Comerica Announces Referral Program With Mourad Insurance Agency Comerica Insurance, a subsidiary of Comerica, Inc. (Detroit), and A. E. Mourad Agency, a privately-held employee benefits insurance agency, announced a referral arrangement to provide Comerica Insurance clients in Michigan with access to Mourad's employee benefits programs designed specifically for middle-market companies with more than 100 employees. The A. E. Mourad Agency is based in Madison Heights, MI and provides such employee benefits as medical, dental, prescription drug, vision, life & accidental death and dismemberment, short and long-term disability as well as a variety of voluntary programs. Steven Turtz, first vice president and national sales director for Comerica Insurance, said the agreement will enable both organizations to provide middle-market companies with customized insurance products. Comerica Insurance Services offers personal and property insurance as well as individualized solutions in life and estate planning, group and employee benefits for companies with 10 to 99 employees, disability and long-term care, and business succession planning funding for affluent individuals and business owners. Comerica reported $10.35 million in insurance brokerage revenues in 2006, down from $13.21 million in 2005, according to Who’s Who in Bank Insurance. Comerica Insurance is part of Comerica's Wealth & Institutional Management division which serves the needs of affluent clients and institutions and includes Private Banking, Investment Management and Trust, Comerica Securities, Institutional Trust and Retirement Services, World Asset Management and Wilson Kemp. (July 16, 2007) *** ![[Click here for more information on Activity
Updates]](http://www.bisanet.org/bism/images/activity_updates_brokerage2.gif) First Tennessee Launches New Unified Managed Accounts (UMAs) First Tennessee Bank (Memphis), a subsidiary of First Horizon National Corporation, has announced the launch of three new products on its managed account platform. The launch is in partnership with FundQuest Incorporated, a provider of managed account services. The Horizon Account platform now offers: index enhanced mutual fund portfolios, unified managed accounts (UMA), and exchange-traded funds (ETF). First Tennessee’s expanded offering now includes eight different types of managed accounts. Existing products include, two mutual fund portfolio solutions, an advisor choice product, and two separately managed account products. According to Rhomes Aur, First Tennessee Director of Wealth Management, “The new products complement our current offering to deliver a comprehensive and highly competitive platform. These important new capabilities will enhance our advisors ability to address the specific needs of each investor client.” Assets in Unified Managed Accounts have seen rapid growth across the industry because of the benefits of combining multiple products including mutual funds, ETFs and separately managed accounts into a single client account. (June 19, 2008) *** Capital One chooses EAI Information Systems to support mutual fund and annuity sales programs Capital One Investments, LLC has selected EAI Information Systems to enhance the efficiency and profitability of its retail investments program. The subsidiary of Capital One, N.A. has licensed EAI’s integrated transaction processing, compliance surveillance, sales management and electronic workflow technology tools. “EAI has enjoyed long-standing relationships with two organizations that were acquired by Capital One – Hibernia National Bank and North Fork Bancorporation,” said Matt Essieh, chief executive officer of EAI. “We appreciate their continued vote of confidence in our technology, our team, the quality of our service and our ability to tailor and expand our system to support their continued growth.” Founded in 1989, EAI (Portland, OR) provides technology solutions for bank retail investment programs and broker-dealers. (June 18, 2008). *** Gempler Joins Symetra’s Financial Institutions Distribution Channel Symetra Financial (Bellevue, WA) announced today that Brenda Gempler will be joining the Financial Institutions Distribution channel as the new Managing Director of Key Accounts. Gempler will direct relationship management for the company’s financial institution partners nationwide. Gempler brings more than 20 years experience in the financial institutions arena to Symetra. Most recently she worked as managing director of the Bank Channel for Transamerica Capital, where she sold more than $1.3 billion in fixed annuities through banks, wire houses and financial planners. Gempler has also held positions as relationship manager and wholesaler working with key accounts such as US Bank and Bank One. Gempler, who will be based out of her hometown of Minneapolis, Minn., has a degree in business/marketing from the University of St. Thomas. She is a Certified Financial Planner and holds a Minnesota Life/Health Insurance License, as well as Series 7, 63 and 24 securities licenses. (June 5, 2008). *** Prudential Annuities Appoints Michael Gillespie to Manage Bank Sales Prudential Annuities (Newark, NJ), the domestic annuity business for Prudential Financial, Inc., announced today (June 5) the appointment of Michael Gillespie as National Sales Manager for its Financial Institutions Team, formerly called the bank channel. Gillespie, a 21-year industry veteran, joins Prudential Annuities from Hartford’s Planco Financial Services, where he served as Vice President of the Mid-Atlantic Division managing the wirehouse, banks and independent channel sales teams. “Mike comes to us to with a solid reputation for results,” notes Rick Singmaster, vice president and director, National Sales for Prudential Annuities. “He possesses a wealth of experience, including valuable experience as a wholesaler. We are thrilled to be able to benefit from that expertise as he leads the Financial Institutions sales team in his new role.” Prudential Financial, Inc., with approximately $631 billion of assets under management as of March 31, 2008, has operations in the United States, Asia, Europe, and Latin America. (June 5, 2008). *** Kevin Crowe Joins MetLife Investors’ Bank Channel Team MetLife Investors Distribution Company (MetLife Investors) today announced that Kevin E. Crowe joined the team as managing director for the annuity bank channel. Crowe reports to Paul Sylvester, national sales manager of the Annuities and Long-Term Care Division. He joins MetLife Investors from John Hancock, where he was most recently John Hancock’s bank channel chairman. “Kevin’s experience, knowledge and leadership will be instrumental as MetLife Investors continues to focus on our bank channel growth,” said Sylvester. “He is a great addition to our team and will help us as we build on our momentum in this area.” Crowe has more than 40 years of experience in the financial services industry and has been a leader in the expansion of selling insurance products through banks. In 1981, he founded Essex Corp., an annuity and insurance marketing company. Essex Corp.’s sales grew significantly over the next 23 years as the company became the largest third-party marketing firm in the United States, with overall annuity sales of $70 billion during this time period. In 2000, John Hancock purchased Essex Corp. Crowe was one of the founding directors of the Bank Insurance and Securities Association. In 1999, he received the Raiken-Sender Award from the Financial Institutions Insurance Association (FIIA), honoring his outstanding contributions to the bank and insurance industry. He earned his M.B.A. degree from the Wharton School of Business at the University of Pennsylvania and bachelor of arts degree from Penn State University. (March 20, 2008) *** WACHOVIA, JPMORGAN, BANK OF AMERICA TOP BANK ANNUITY LIST IN 2007 Wachovia Corporation earned more commissions from annuity sales than any U.S. bank holding company (BHC) in 2007. The North Carolina bank reported $483.00 million in fees and commissions from annuity sales. It was followed by JPMorgan Chase & Co. ($163.00 million), Bank of America Corp. ($125.53 million), Wells Fargo & Company ($116.00 million), and Suntrust Banks, Inc. ($114.90 million), the Bank Insurance Market Research Group reported today (see table).
Source: Singer’s Annuity & Funds Report This is the first year that bank holding companies and operating banks have reported annuity fees and commissions to the government. Nearly 400 BHCs reported some annuity income. The rankings here are based on an examination of recent Federal Reserve Board Y-9 filings. (One BHC likely to be included in the top ten, HSBC North America, had not yet filed its report.) A more comprehensive list will appear in an upcoming issue of Singer’s Annuity & Funds Report. (February 19, 2008) *** Bank of America names Athanasia to head Premier Banking unit Bank of America Corp. named Dean Athanasia president of Premier Banking and Investments, a part of the bank’s global wealth and investment management division. Athanasia, named in March, replaces Pat Phillips, who retired from Charlotte-based BofA in the spring. Athanasia most recently was BofA’s northeast division executive for Premier Banking and Investments. Premier Banking and Investments comprises BofA’s retail investment and mass affluent sectors. Premier Banking & Investments had revenues of $3,751 million in 2007, up from $3,455 million in 2006, according to Who’s Who in Bank Wealth Management. It reported net income of $1,275 million, an increase of 8 percent from $1,186 million in 2006. *** Fixed Annuity Sales Fell in 2007 Estimated sales of fixed annuities totaled $65.1 billion for the 2007 calendar year, a 9 percent drop from 2006, according to Beacon Research Inc.’s quarterly Fixed Annuity Premium Study. Allianz Life led all insurers with $1.6 billion in fixed annuity sales, followed by AIG Annuity Insurance Co. and New York Life with $1.37 billion and $1.2 billion in sales, respectively. *** BISA Announces 2007 Awards of Excellence Winners At its 2008 Annual Convention Awards ceremony in Florida in early March, the Bank Insurance & Securities Association announced the winners of its annual BISA Awards of Excellence in 2007. The 2007 Award for the best Large Institution Program was won by Compass Brokerage, a perennial top performing bank securities program. The Award was accepted on behalf of the firm by Noah Zecher, the brokerage unit’s CEO. First Citizens (NC) was named Regional Institution Program of the Year. Ramsey Jones, EVP, Wealth Management Services, accepted the award on behalf of the firm. The Community Based Institution Program of the Year was Pennsylvania State Employees Credit Union, which was applauded for its “‘can do’ approach to creatively evolving ways to provide face-to-face services in an investment program that is embedded within a credit union that provides virtually branchless delivery of traditional deposit and loan services.” Steve Franke, Program Manager, accepted the Award. Rob Comfort, President of Huntington Investment Co., was named “Executive of the Year,” cited “for instilling a culture and assembling a team of executives and advisors who have been able to deliver superior growth for his institution, as well as for the energy and leadership he continually provides not only for his firm, but for the entire industry.” *** John Hancock’s Variable Annuity Sales Rose 41 percent in 2007 in the Bank Channel John Hancock Financial said that its full year sales of variable annuities in the bank channel reached $1.4 billion in 2007, up from $1.0 billion in 2006. This full year increase of 41 percent marked the fifth consecutive year John Hancock achieved record bank sales of variable annuities. “In 2007 we finished the first full year of our successful relationship with JP Morgan Chase, and our sales through Bank of America were also strong, nearly doubling levels from 2006,” said Fred Nicholas, President, John Hancock Bank Annuities Channel. “Bank channel sales accounted for nearly 16 percent of our total VA sales and it’s certainly become a big growth driver for our overall sales. Continuing to add new distribution partners and broadening existing relationships is a priority for us.” *** Wells Fargo debuts service for the ultra-rich In late March, Wells Fargo Bank introduced its Family Wealth Group, a multi-family office serving families with $50 million or more in assets, which the bank notes is “the fastest growing wealth segment today.” Headed by Michael Cole, the group currently has $7 billion under management. It is part of Wells Fargo’s Private Bank. *** Mutual funds up, fixed annuities down at TCF Financial Bank annuity and mutual fund results for 2007 are beginning to trickle in. At TCF Financial Corporation, the $16 billion (assets) Minnesota-based banking company, annuity and mutual fund sales volume totaled $222.6 million for the year, up from $203.7 million in 2006. The increase was primarily on the mutual funds side, due to more marketing focus and better market conditions, said the company. By comparison, “sales of fixed annuity products slightly declined during 2007 as a result of lower interest rates offered by carriers.” Overall, revenue from investments and insurance declined for the year to $10.32 million from $10.70 million in 2006—which isn’t so surprising given that annuity sales are generally more profitable for banks than mutual funds—i.e., the commission rates are typically higher. (February 18, 2008). *** MetLife Investors Adds to Its Bank Channel Team MetLife Investors Distribution Company announced two new additions its bank channel team John D. Wilson was named regional vice president for North and South Carolina, and Joe Wambach was named regional vice president for the Georgia, Alabama and Florida markets. Both will report to Patti Hausherr, eastern divisional sales manager. Wilson is a 15-year veteran of the financial services industry. Most recently, he worked as a senior vice president and group sales manager for investments at SunTrust Investment Services. Wambach joins MetLife from John Hancock, where he supported leading advisers with planning strategies incorporating variable annuities, fixed annuities and 529 plans. (February 21, 2008) *** JPMORGAn Chase is Bank Leader in Proprietary Funds JPMorgan Chase remains the leader among bank holding companies in proprietary mutual funds and annuities, according to third quarter 2007 government data, the most recent quarter available. The New York bank reported $589.1 billion in “assets under the reporting bank’s management in proprietary mutual funds and annuities,” according to the Bank Insurance Market Research Group (BIMRG), which analyzes the government bank data (see table below). JPMorgan was followed by Bank of America Corp., Bank of New York Mellon, Wells Fargo & Company, and Citigroup Inc.. A more detailed analysis will appear in BIMRG’s upcoming Who’s Who in Bank Wealth Management, published in Spring 2008 (January 24, 2008).
Dollars in Millions. Deposits are domestic, interest-bearing deposits only. Trust revenues are for 1st nine months in 2007.. *** KeyCorp Names Grebenc EVP for Wealth Management Jane Grebenc has joined KeyCorp (Cleveland, OH) as executive vice president, leading Key's Wealth Management group. She was previously at National City Corporation, where most recently she served as executive vice president, Private Client Group. In her new role, Grebenc will oversee the Key business groups that provide investment, banking, insurance, and trust services to affluent individuals and families as part of the broader Key Community Banking organization. The two principal business groups that comprise Wealth Management are Key PrivateBank and Key Wealth Management. (January 23, 2007). *** Flagstar Bank signs Essex National Securities as broker/dealer Flagstar Bank (Troy, MI), a subsidiary of Flagstar Bancorp, Inc., has signed an agreement with Essex National Securities, Inc. (ENSI), whereby ENSI will serve as the bank’s broker-dealer in its retail investment programs. Flagstar Bancorp, with $16.6 billion in total assets at September 30, 2007, is the largest publicly held savings bank headquartered in the Midwest. It operates 164 banking centers in Michigan, Indiana and Georgia, and 151 home loan centers in 29 states. According to Singer’s Annuity & Funds Report, Flagstar Bank reported no investment income (‘income from the sale and servicing of mutual funds and annuities’) in the third quarter of 2007, the most recent quarter for which government data is available. “We are excited to be working with ENSI on the expansion of our retail program,” said Sandro DiNello, Executive Vice President, Retail Banking at Flagstar. ENSI will provide Flagstar with systems, compliance support, training, sales and marketing support, and field resources to the dedicated brokers and licensed bankers who sell investments in the banks’ retail branch system. (January 16, 2008). *** Wachovia Leads Banking Companies in 3rd Quarter Annuity Production Wachovia Corporation was again the dominant bank holding company (BHC) in annuity production in the third quarter of 2007. Indeed, for the first three quarters of 2007, it had more than three times the production of the second-ranking BHC, JPMorgan Chase. Wachovia generated $328.00 million in fees and commissions from annuity sales over the first nine months, JPMorgan Chase only $99.00 million. (JPMorgan Chase is not included in the table below because we could not generate an accurate “quarter only” number based on the bank’s FRB Y-9 filings on which these rankings are based.) Following Wachovia and JPMorgan on the year-to-date annuity board were Bank of America Corp. ($86.81 million), Citigroup Inc. ($85.00 million), and Wells Fargo & Company ($85.00 million). Leading operating banks, which report to the FDIC, were included on last week’s table (below). (January 10, 2008)
Dollars in Millions.. *** CitiBank Edges BofA in Annuity Commissions in 3rd Quarter among operating banks Citibank NA was the leader in annuity fees and commissions in the 3rd quarter of 2007, edging out Bank of America, leader in the previous quarter, among the 953 operating banks that reported annuity activity, according to Singer’s Annuity & Funds Report. The top ten are listed in the table below Six operating banks had $30 million or more in annuity fees and commissions in the first nine months of 2007. These were Bank of America NA ($86.81 million), Citibank NA ($85.00 million), Fifth Third Bank ($33.26 million), KeyBank NA ($32.23 million), Branch Banking & Trust ($31.46 million), and PNC Bank NA ($31.28 million). Bank holding companies will be reported in this space next week. (Bank holding companies report annuity production to the Federal Reserve Board; operating commercial banks and savings banks--but not thrifts--report to the FDIC.) They will include some additional institutions, including Wachovia, Wells Fargo, SunTrust, and US Bancorp.
(January 3, 2008).
Dollars in Millions.. Worthington to Head Wealth Management at National Penn/KNBT National Penn Bancshares, Inc. and KNBT Bancorp, Inc. announced the senior team that will lead the combined organization after the close of the merger, anticipated in early February 2008. Among others: Donald Worthington, group executive vice president, Wealth Management group, will have overall responsibility for Wealth, Asset, Trust, and Investment Management areas for the combined company. He also will have executive oversight for Christiana Bank & Trust Company, which is expected to become part of the National Penn organization in January 2008. In total, those areas encompass more than $8 billion in assets under management or administration. Michael Meeneghan, currently president of National Penn Insurance Agency, Inc., which comprises a network of six locations, will be executive vice president of National Penn Insurance group. In that role he will have overall responsibility for the growth and profitability of all insurance operations within the National Penn holding company, including the KNBT insurance agencies: Caruso Benefits Group, Inc. and KNBT/Higgins Insurance. (December 19, 2007). *** Iowa Bank Company Is An ‘Investment Income’ Powerhouse The first half 2007 leader in investment income ABP (asset-base penetration), or investment income divided by assets , among 298 large bank holding companies (more than $1 billion in assets) was West Bancorporation, Inc. The Des Moines, Iowa-based company owns West Bank and WB Capital Management Inc., a registered investment advisory firm that generates half of all the bank company’s noninterest income. (See table below.)
Dollars in Millions. ABP is Asset-Base Penetration. Among 298 bank holding companies
In the first half of 2007, West Bancorporation reported $4.0 million in investment income (“income from the sale and servicing of mutual funds and annuities”) on an asset base of $1.3 billion for a ratio of 0.31 percent. ‘Investment income,’ in this case, is identical to what the company calls investment advisory fees in its quarterly earnings reports. How did this all come about? West Bancorporation acquired Investors Management Group, Ltd., an investment advisory firm from AMCORE Financial, Inc., another Midwestern bank company, on December 30, 2005. Investment Management was subsequently merged with the bank’s existing advisory business and renamed WB Capital. The acquisition added more than $4 million in annual investment advisory fees and raised West Bancorporation’s assets under management to $4.4 billion (at the end of 2006), a big number for a company with only $1.3 billion in balance-sheet assets. Still, the merger of advisory firms didn’t go entirely smoothly. “The process took more people time than we estimated , which caused our business development and client retention efforts to falter during the first three quarters of the [2006],” said bank company CEO Thomas E. Stanberry. “As a result, WB Capital under-performed financially during 2006, which contributed to our overall drop in net income. With the merger behind it, the WB Capital team increased new assets under management during the fourth quarter and began working on new product offerings for 2007,” he wrote in the company’s 2006 annual report. West Bancorporation was followed in first half ABP by Wachovia Corp. (0.16 percent), Washington Trust of Rhode Island (0.16%), City National Corp. of California (0.13 percent), and Wells Fargo & Company (0.13%). From the upcoming issue of Singer’s Annuity & Funds Report. (November 20, 2007) *** Citizens, SusqUehanna, and Compass Top Banks in Annuity Penetration Among 214 large U.S. banks (assets more than $1 billion) that reported some commissions and fees from annuity sales in the first half of 2007, Citizens Bank (Rhode Island), Susquehanna Bank (PA), and Compass Bank (AL) were the leaders in deposit-base penetration—or the ratio of annuity revenues divided by bank deposits. This ratio is a good gauge of annuity production adjusted for size. (See table below.)
Dollars in Millions. ABP is Asset-Base Penetration. DBP is Deposit-Base Penetration.Among 214 operating banks The median among the 214 operating commercial and savings banks was only 0.01 percent. That is, for every $1,000 in deposits, the middle ranking bank had only $.10 in revenues from annuities. The ratio at Citizens Bank, the leader, was 0.11 percent. It generated $1.10 in annuity revenues for every $1,000 in deposits. Among the largest banks, each with at least $10 billion in assets, the leaders were Citizens Bank RI, Compass Bank (0.08%), Fifth Third Bank (0.08%), Connecticut’s Webster Bank NA (0.07%), and California’s Bank of the West (0.06%). Among those with assets between $1 billion and $10 billion in assets, the leaders were Pennsylvania’s Susquehanna
Bank PA (0.11%), Mississippi’s Hancock Bank (0.08%), Pennsylvania’s Keystone Nazareth Bank and Trust (0.07%), Texas’ First Victoria NB (0.07%), and Pennsylvania’s Fulton Bank (0.07%). A list of the top 50 will appear in the upcoming issue of Singer’s Annuity & Funds Report. (November 15, 2007) *** Maine’s Northeast Bank Top ‘Small Bank’ Annuity Producer in First Half of 2007 Among the nation’s 793 small banks (assets less than $1 billion) that reported some commissions and fees from annuity sales in the first half of 2007, the leader was Maine’s Northeast Bank , with annuity revenues of $612,000. It was followed by Tennessee’s First Citizens National Bank ($499,000) and Pennsylvania’s Lebanon Valley Farmers ($494,000). (See table below for the top 10.)
Dollars in Millions. ABP is Asset-Base Penetration. DBP is Deposit-Base Penetration. As reported earlier, Wachovia, SunTrust and Bank of America were the top three annuity producers among all bank producers in the first half of 2007. Overall, 1,013 operating banks and savings banks reported some commissions and fees from annuity sales in the first half of 2007. A longer list will appear in the upcoming issue of Singer’s Annuity & Funds Report. (October 25, 2007) *** Wachovia, SunTRust Top Annuity Producers in 1st HalF of 2007 Wachovia, SunTrust and Bank of America were the top three annuity producers among bank holding companies (BHCs) in the first half of 2007. They topped the list of 376 BHCs that reported some fees or commissions from annuity sales. Collectively all BHCs generated $932.08 million in annuity revenues in the first half.
Dollars in Millions. ABP is Asset-Base Penetration. DBP is Deposit-Base Penetration.
Bank of America was the top BHC in securities brokerage in the first half with $1,703 million in fees and commissions; it was trailed by JPMorgan Chase ($1,259 million) and Wachovia ($949 million). A longer list will appear in the upcoming issue of Singer’s Annuity & Funds Report. *** LPL To Acquire Independent Financial Marketing Group (IFMG) Linsco/Private Ledger Corp. (LPL Financial Services) and Sun Life Financial today announced a definitive agreement under which an affiliate of LPL will acquire Independent Financial Marketing Group, Inc. (Purchase, NY) from Sun Life Financial. LPL’s Financial Institution Services channel, based in Charlotte, NC, will manage the Independent Financial business. The deal is expected to close in the fourth quarter, subject to customary closing conditions including Financial Industry Regulatory Authority (FINRA) approval. Financial terms were not disclosed. “The acquisition of Independent Financial underscores LPL’s commitment to the financial institution marketplace,” said Dan Arnold, president of LPL Financial Institution Services. “The growth of our business through this acquisition will allow us to continue to make significant investments in infrastructure, technology, and human capital to fuel the continued success of all of our partner financial institutions.” After the transaction, LPL Financial Institution Services will continue to be led by Arnold and his management team, which will include members from Independent Financial, from its Charlotte headquarters. Independent Financial president, Michael Weiss, will continue in his current role until the close of the transaction with LPL and will stay on for some time after to ensure a successful transition for its financial institution and advisor clients. “Our employees are deservedly proud of the reputation for excellence in the financial institution channel that they have helped to build,” said Weiss. “As the industry continues to evolve, the benefits associated with scale have become increasingly essential. LPL Financial Institution Services has the resources to provide a wide range of outstanding products and services, leading-edge operational support, and the technology to maximize overall client satisfaction.” LPL Financial Institution Services is the nation’s largest provider of third-party investment services to banks and credit unions based on financial institution relationships. It offers insurance and investment services to approximately 800 financial institutions nationwide. Since 1983, Independent Financial Marketing Group has been a prominent leader in providing banks, savings and loans, and credit unions nationwide with a portfolio of investment and insurance products, plus the sophisticated infrastructure necessary to support their sale. Independent Financial is a member of the Sun Life Financial group of companies. (September 5, 2007). *** METLIFE Adds TO Its BANK CHANNEL Team MetLife Investors Distribution Company (New York) announced on Wednesday two additions to its bank channel team: Wendy K. Fishler as an account management vice president and Sharon Stitch as a regional sales vice president. Fishler reports to Myrna F. Solomon, who heads up the bank channel for MetLife Investors. Stitch reports to Lance Johnson, western divisional sales manager. “At MetLife Investors, enhancing our relationships within the bank channel continues to be our first priority, in addition to establishing new partnerships,” said Solomon. “Wendy and Sharon are valuable additions to our team, playing important roles within MetLife Investors as we continue to offer our partners exceptional service and products.” Fishler joins MetLife from New York Life Investment Management, where she was most recently the managing director for the National Account Management group/team. Prior to this, Fishler managed bank brokerage partnerships for Oppenheimer Funds, Inc. Fishler has more than 25 years of experience in the financial services industry, working with companies such as Paine Webber. Stitch is a 15-year veteran in financial services and worked most recently as a brokerage director with The Denver O'Keefe Agency. Prior to this, she held positions with Oppenheimer Funds, Mony Partners and ING. Stitch will be representing MetLife Investors in Colorado, Utah, Nebraska, New Mexico and Wyoming. MetLife Investors is affiliated with MetLife Investors Group, Inc., a subsidiary of MetLife, Inc. MetLife Investors offers individual life insurance, annuity and long-term care insurance products and services through third-party intermediaries, including wirehouses, independent planners, broker/dealers and banks. (August 22, 2007) *** Bank of America Names New Retail Brokerage Chief Bank of America Corp. on Monday said it hired a Fidelity Investments executive, Jeffrey Carney , to a new post heading up retirement services across the Charlotte-based company. Carney also will head up the bank's retail brokerage, Banc of America Investment Services. That job was previously filled by Tim Maloney, who has moved to a position in the private banking unit formed by this month's acquisition of U.S. Trust Corp. Carney will be responsible for the developing and providing services to the bank's more than 17 million customers in or near retirement. He will report to Brian Moynihan, head of the bank's Boston-based wealth and investment management division. (July 30, 2007) *** GaNung named EVP and Chief Sales Officer at NexTier Bank Mark A. GaNung has been named Executive Vice President and Chief Sales Officer for NexTier Bank (Butler, PA). The $400 million (assets) institution has 16 branch offices that serve Butler, Armstrong, and northern Allegh | |||||||||
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