CitiGroup, Wells Fargo and BB&T Lead Bank Holding Cos. in Insurance Brokerage Fee Income

August 30, 2004

CitiGroup (New York, N.Y.), Wells Fargo & Company (San Francisco, Calif.), and BB&T Corporation (Charlotte, N.C.) lead bank holding companies in insurance brokerage fee income year-to-date through June 30, 2004, according to Michael White Associates LLC (MWA). These findings are based on preliminary data made available Aug. 23 by the Federal Reserve Board and analyzed by MWA in its ongoing series of Bank Holding Company Insurance & Investment Fee Income Reports (BHC-FIR). According to MWA, absent were MetLife, Inc. (New York, N.Y.) and Greater Bay Bancorp (Palo Alto, Calif.), whose data for June 30 were not available from the Federal Reserve Board at the time of this analysis. The data are reported by top-tier bank holding companies with $100 million or more in consolidated assets. The BHC-FIR measures insurance, investment, and mutual fund and annuity fee income generated and compares individual BHC and banking industry performance data and benchmark ratios to prior years.

* CitiGroup reported YTD insurance brokerage earnings of $774 million as of June 30, 2004, putting it in first place. (While the second quarter data of its subsidiary bank holding company, Citicorp, were not available, Citicorp did report earning $380 million of insurance brokerage fee income or 99.7 percent of CitiGroup’s total in the first quarter.)

* Wells Fargo, owner of Acordia, one of the largest insurance brokerage firms in the country, ranked second with reported insurance brokerage earnings of $584 million.

* BB&T Corporation, which has acquired more insurance agencies than any other bank holding company, ranked third nationally with $276.5 million in insurance brokerage fee income.

* Bank of America Corporation (Charlotte, N.C.) registered the largest increase among the leaders, increasing its insurance brokerage fee income to $82.8 million, ranking seventh nationally in the first six months of this year. Much of this improvement is due to its combination with FleetBoston Financial Corporation (Boston, Mass.), which merged with Bank of America Corporation on April 1, 2004. In 2003, FleetBoston ranked tenth and Bank of America ranked eleventh nationally in insurance brokerage fee income.

Look out: The soon-to-be-combined figures of Bank One Corporation (Chicago, Ill.) and J.P. Morgan Chase & Co. (New York, N.Y.) will rival BB&T Corporation’s third-place ranking in insurance brokerage revenues. For the moment, they are reported separately, because J.P. Morgan Chase acquired Bank One Corporation on July 1, 2004, after the second quarter ended.

Reports for past top performers MetLife Inc. and Greater Bay Bancorp were not available at the time of this analysis. However, in the first quarter (ending March 31, 2004), MetLife reported $785.5 million and Greater Bay Bancorp earned $34.2 million in insurance brokerage fee income. In 2003, MetLife ranked first and Greater Bay ranked ninth nationally in insurance brokerage fee income.

Topics Agencies Profit Loss New York

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