Insurance revenue at banks on the rise

Northwestern Financial Review, Jun 1-Jun 14, 2005

Insurance revenue reported to the Federal Reserve by the nation's bank holding companies grew by $7.3 billion in 2004 to a level of $40.8 billion, 22 percent higher than 2003, according to an analysis by the American Bankers Insurance Association. Since passage of the Gramm-Leach-Bliley Act, bank insurance revenue has steadily risen through agency acquisitions and systemic growth.

The total number of bank holding companies reporting insurance revenue also increased II percent to 1,413 in 2004 compared to 1,257 in 2003, according to the ABIA analysis. In addition, 93 bank holding companies reported earning insurance premium income.