Bank holding companies (BHCs) reported insurance or reinsurance income of $25.1 billion in 2003, according to Michael White’s Bank Holding Company Insurance & Investment Fee Income Report (BHC-FIR) published by Michael White Associates LLC in Radnor, Pa.
Compiled from data reported by 2,088 top-tier (or regulatory top-holder) BHCs with $100 million or more in consolidated assets on Dec. 31, 2003, the report measures insurance, investment, and mutual fund and annuity fee income generated in 2003 and compares individual BHC and banking industry performance data and benchmark ratios to those of 2003. Other insurance underwriting findings in the 2003 Year-End BHC-FIR include:
§ In 2003, 101 or 4.8 percent of 2,088 top-tier BHCs reported underwriting insurance premiums, down from 175 or 9.1% of 1,932 BHCs in 2002. The 74 fewer BHCs reporting insurance premiums in 2003 represented a decrease of 42.3 percent in the number of BHCs underwriting insurance. Altogether, these 101 BHCs reported writing total insurance premiums of $24.96 billion, up 2.0 percent from $24.47 billion in 2002.
§ One hundred six (106) BHCs reported $25.13 billion in gross underwriting income or loss from insurance and reinsurance activities in 2003, up 2.7 percent from $24.47 billion in 2002. The 106 BHCs constituted 5.1 percent of 2,088 top-tier BHCs in 2003, and they represented 69 fewer or 39.4 percent less than the 175 BHCs that
reported gross underwriting income from insurance and reinsurance activities in 2002. Mean insurance underwriting income was $237.1 million among all BHCs engaged in underwriting in 2003. Median
insurance underwriting income was $489,000.
§ Of 74 BHCs with assets over $10 billion, 43 BHCs or 58.1 percent engaged in insurance underwriting or reinsurance. These large BHCs accounted for $25.02 billion in insurance and reinsurance underwriting
income or 99.6 percent of the total. Mean insurance underwriting income was $581.9 million among BHCs with more than $10 billion in assets that engaged in underwriting in 2003. Their median underwriting
income was $6.7 million.
§ The leading insurance underwriters among BHCs were MetLife Inc. (NY) with $20.7 billion in insurance underwriting income; Citigroup Inc. (NY) with $2.6 billion; Countrywide Financial Corporation (CA) with $732.8 million; Wells Fargo & Company (CA) with $233.0 million; and Bank One Corporation (IL) with $151.0 million.
§ With $24.3 billion in total insurance underwriting income, the top five BHCs accounted for 96.9 percent of the $25.1 billion in insurance underwriting income earned by all 106 BHCs. The remaining 101 BHCs underwrote $787.4 million in earned premiums. Twenty-three (23) BHCs earned $10 million or more in insurance underwriting income in 2003. Sixty-two (62) earned less than $1 million in insurance underwriting income.
The BHC-FIR provides comprehensive, national, standardized data and performance ratios that measure and compare insurance and investment fee income programs among bank holding companies (BHCs). The BHC-FIR and its companion report on banks are published annually and cover the calendar years ending Dec. 31.
The 2003 BHC-FIR is compiled from data reported by 2,088 top-tier or regulatory top-holder BHCs with $100 million or more in consolidated assets on Dec. 31, 2003. The report identifies performances and trends among insurance, investment, and mutual fund and annuity fee income by comparing various performance measurements and benchmark ratios for 2003 to those of 2002.
The reports may be purchased online at www.BankInsurance.com./a>
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