Michael White Associates is the Preferred Bank Insurance Consulting Service Provider of the Independent Community Bankers of America

Bank Insurance News In Brief

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.

______

                   Recent Bank Insurance News

Michael White Associates (MWA) is pleased to provide this 
online Bank Insurance News in Brief.  MWA also publishes the
BankInsurance.com Newsletter, a compilation of important
industry news stories posted at www.BankInsurance.com. 

Click Here to request your FREE 
BankInsurance.com Monthly Newsletter 
by Email

  

29

HOME  |  ABOUT  |  PRODUCTS  |  SERVICES  |  CONTACT  |  LINKS  |  SITEMAP  |  SEARCH  |  MICHAEL WHITE ASSOCIATES  
PRESS RELEASES  |  EDITORIAL  |  ARTICLES  |  RECEIVE FREE BANKINSURANCE.COM EMAIL UPDATES
  

BankInsurance.com™, Michael White Associates, MWA and all associated text, logos and images are protected by trademark and copyright. 
© Michael White Associates, LLC 1997-. All rights reserved.