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AUGUST
18 - 24, 2008
WELLS
FARGO ACQUIRES NORTHERN CALIFORNIA INSURANCE AGENCY
San Francisco, CA-based, $609
billion-asset Wells Fargo & Co., through Wells Fargo Insurance
Services (WFIS), has acquired Santa Rosa, CA-based Martin Financial /
Insurance Services. The
acquired agency offers group and individual health, life, disability,
dental and vision insurance, focusing on group employee benefits.
Martin Financial / Insurance Services will retain its management
and staff and integrate its operations into Wells Fargo of California
Insurance Services North Bay. WFIS
Chairman and CEO Dave Zuercher said, “We’ve grown to become one of
America’s largest insurance brokerage companies by combining our
national resources with great local agencies like Martin Financial /
Insurance Services. We’ll
continue to look for agency acquisitions that fit our vision, values and
geographic needs.” WFIS
operates 171 offices in 37 states.
In
2007, Wells Fargo & Company reported $1.27 billion in insurance
brokerage income, which comprised 7.2% of the company’s noninterest
income and 3.3% of its net operating revenue.
Wells Fargo ranked 1st in insurance brokerage income
among California bank holding companies (BHCs) and 3rd among
all U.S. BHCs, according to the
Michael
White-Symetra Bank Holding Company Fee Income Report.
EASTERN
CONTINUES EXPANSION INTO WESTERN MASS WITH AGENCY ACQUISITION
Boston, MA-based, $6.9 billion-asset Eastern Bank Corporation, through
Natick, MA-based Eastern Insurance Group, has acquired Northborough,
MA-based Kittredge Insurance Agency, Inc.
The acquired agency’s employees will remain with the company as
it merges into Eastern Insurance Group, where Francis Kittredge will
serve as a senior executive. Eastern
Insurance President and CEO Hope Aldrich said the acquisition is “a
great cultural fit in our expansion to western Massachusetts.”
Eastern Insurance is the largest personal lines agency
headquartered in Massachusetts and is licensed throughout the U.S. to
provide a full range of personal and commercial insurance products,
surety and employee benefits services, including group health and life
insurance and 401(k) administration.
In
2007, Eastern Bank Corporation reported $40.7 million in insurance
brokerage fee income, which comprised 43.1% of its noninterest income
and 13.5% of its net operating revenue.
Eastern ranked 1st in insurance brokerage earnings
among U.S. bank holding companies with $1 billion to $10 billion in
assets and 17th among all U.S. BHCs,
according to the Michael
White-Symetra Bank Holding Company Fee Income Report.
WACHOVIA
REINSURER FILES FOR BANKRUPTCY PROTECTION
Hamilton, Bermuda-based BluePoint Re Ltd., the smallest reinsurer in the
bond insurance industry and a unit of Charlotte, NC-based, $812.4
billion-asset Wachovia Corporation, has filed papers asking the U.S.
Bankruptcy Court for the Southern District of New York to protect it
from claims under Chapter 15 of the U.S. bankruptcy code and to
recognize its August 7 petition in Bermuda to liquidate.
BluePoint, which provided reinsurance to bond insurers and
insurance contracts known as credit default swaps to banking companies,
listed more than $100 million in assets and more than $100 million in
debts. Wachovia refused to
provide BluePoint with money to restructure and continue in business, ProWEB
Wire reports.
VIST
INSURANCE OFFERS NEW SERVICE IN HUMAN RESOURCE CONSULTING
Wyomissing, PA-based VIST Insurance, a subsidiary of $1.13 billion-asset
VIST Financial Corp. (formerly Leesport Financial), has expanded its
insurance operations to provide human resource consulting services.
The agency has hired David Lacey, Ph.D. to develop and implement
for company clients compensation programs, staffing and retention
solutions, organizational design, talent assessment and development
programs, and employee benefit designs.
Currently, VIST Insurance offers property and casualty insurance,
employee benefit programs, retirement plan services and surety bonds to
a broad range of businesses.
In
2007, VIST Financial Corporation reported $11.4 million in insurance
brokerage fee income, which comprised 57.2% of its noninterest income
and 21.3% of its net operating revenue.
VIST Financial ranked 11th in insurance brokerage
earnings among U.S. BHCs with $1 billion to $10 billion in assets, and
it ranked 45th among all U.S. BHCs last year, according to the Michael
White-Symetra Bank Holding Company Fee Income Report.
LIFE
INSURANCE APPLICATIONS FLAT IN JULY
U.S. applications for individually underwritten life insurance were flat
(-0.2%) in July compared to July 2007, according to the MIB Index.
Applications among individuals age 0-44 slid 2.1%, while
applications among individuals age 45-59 and 60 and older grew 0.6% and
7.1%, respectively. Applications
among individuals aged 60 and older have increased each month since March 2007, but July’s increase was a
record for the month, according to Braintree, MA-based MIB Group, which
began indexing individually underwritten life insurance applications in
2001.
INVESTMENT
AND INSURANCE INCOME DOMINATE NONINTEREST INCOME AT SANTANDER
San Juan, Puerto Rico-based, $9.3 billion-asset Santander Bancorp
reported second quarter insurance brokerage fee income fell $700,000, as
credit life commissions slowed at Island Insurance Corporation. Broker-dealer, asset management and insurance fees combined,
however, climbed 24.2% to $20 million, up from $16.1 million in second
quarter 2007 and comprised nearly 65% of noninterest income, which slid
3.1% to $31 million, down from $32 million.
Net interest income on a 4.34% net interest margin grew 10.8% to
$52.5 million, up from $47.4 million, despite an almost $8 million
increase in loan loss provisions to $38.5 million, and net income jumped
58.5% to $6.5 million, up from $4.1 million.
In
2007, Santander Bancorp reported $11.8 million in insurance brokerage
fee income, which comprised 8.5% of its noninterest income and 2.5% of
its net operating revenue. Santander
ranked 10th in insurance brokerage earnings among U.S. BHCs
with $1 billion to $10 billion in assets, and it ranked 44th
among all U.S. BHCs last year, according to
the Michael
White-Symetra Bank Holding Company Fee Income Report.
FIRST
FINANCIAL’S INSURANCE BROKERAGE FEE INCOME CLIMBS 41%
Charlotte, SC-based, $2.9
billion-asset First Financial Holdings, parent of First Southeast
Insurance Services and The Kimbrell Insurance Group, reported that the
acquisition of Somers-Pardue Agency helped boost second quarter
insurance brokerage fee income 40.6% to $7.14 million, up from $5.08
million in second quarter 2007. Insurance
earnings outstripped all other contributors to noninterest income,
comprising 43.5% of that revenue, which climbed 21.5% to $16.4 million,
up from $13.5 million. Net
interest income on a 3.56% net interest margin slipped 2.6% to $19.1
million, down from $19.6 million, impacting net income, which fell 9.2%
to $5.9 million, down from $6.5 million.
First Financial President and CEO Thomas Hood said, “In the
current economic environment, we are very pleased with our results.”
CITY
HOLDING ACHIEVES 22% INCREASE IN INSURANCE BROKERAGE FEE INCOME
Charleston, WV-based, $2.5 billion-asset City Holding Co. reported that
increased workers compensation commissions drove second quarter
insurance brokerage fee income ahead 22.2% to $2.2 million, up from $1.8
million in second quarter 2007. Insurance
earnings comprised 7.0% of noninterest income, which grew 12.5% to $31.5
million, up from $28 million, reflecting a $3.3 million one-time VISA
IPO gain. Net Interest
income on a 4.32% net interest margin rose 0.8% to $46.7 million, up
from $46.3 million, as loan loss provision remained basically steady,
and net income increased 8.6% to $13.4 million, up from $12.3 million.
In 2007, City Holding reported $4.1 million in insurance brokerage fee
income, which comprised 7.3% of its noninterest income and 2.7% of its
net operating revenue. City
Holding ranked 38th in insurance brokerage earnings among
U.S. BHCs with $1 billion to $10 billion in assets and ranked 86th
among all U.S. BHCs last year, according to the Michael
White-Symetra Bank Holding Company Fee Income Report.
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