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MARCH
15
- 21, 2010
METLIFE EXPANDS
INTERNATIONAL REACH WITH ALICO PURCHASE
New York City-based MetLife has agreed to acquire Wilmington, DE-based
America Life Insurance Company (ALICO) from New York City-based American
International Group (AIG) for $15.5 billion, including $6.8 billion in
cash and $8.7 billion in stock. MetLife
Chairman, President and CEO Robert Henrikson said, “With this
acquisition, MetLife is delivering on its strategy to accelerate
international expansion as a powerful growth engine for the company.”
ALICO manages $89 billion in assets and services 20 million
customers through 60,000 distribution points in over 50 countries.
When the
deal closes at the end of 2010, pending regulatory approvals, MetLife
expects to become a leading competitor in Japan and a top-five life
insurer in Central and Eastern Europe, the Middle East and Latin
America. AIG will use the
cash from the sale to reduce the Federal Reserve Bank of New York’s (FRBNY)
interest in the ALICO special purpose vehicle and will use the proceeds
from gradual MetLife stock sales for the same purpose.
AIG Chairman Harvey Golub said, “The sale gives AIG greater
flexibility to move forward with our restructuring and rebuilding
efforts and focus on enhancing the value of our key insurance
business.”
HUNTINGTON
BANCSHARES EXPANDS BROKERAGE UNIT
Columbus, OH-based, $52 billion-asset Huntington Bancshares’
subsidiary Huntington Investment Company is expanding in Central Ohio,
hiring veteran financial advisors and opening new offices in Dublin and
New Albany. Huntington
Executive Vice President Daniel Benhase said, “We are creating an
environment where investment professionals can succeed in delivering a
broad base of products to ensure our customers are receiving excellent
investment advice.”
In 2008,
Huntington Bancshares reported $63.6 million in investment program
income, which comprised 7.4% of its noninterest income, and ranked 6th
in investment program earnings among U.S. BHCs in the Midwest and 23rd
among all U.S. BHCs, according to the Michael
White Bank Investment Program Fee Income Report.
RETIRING
AFFLUENT AMERICANS SELF-DIRECT CONSERVATIVE INVESTMENT PROGRAMS
Affluent pre-retirees and retirees with a minimum $100,000 in investable
assets prefer to manage their own retirement income using traditional
certificates of deposit (CDs) and bond laddering strategies, or, as a
second choice, investing in variable annuities.
Significantly, they show little interest in target payout or
absolute return funds, and appear unenthusiastic about specific product
providers, according to Cambridge, MA-based Cogent Research’s In-
Retirement Income 2010 report.
No one firm stood out as a firm of choice, but Fidelity
Investments and Vanguard were named by the largest percentage (17%).
Thirty other firms, including Wells Fargo, Morgan Stanley Smith
Barney, Charles Schwab, Ameriprise and Merrill Lynch were each cited by
5% or less of the affluent group. Cogent
Research Project Manager Carrie Merrick said, “While this level of
confusion and indecision around retirement income products and providers
is no doubt disheartening to providers, it’s also an exciting
opportunity for the firm or firms who eventually get it right.”
INSURANCE,
TRUST, ANNUITY AND INVESTMENT FEE INCOME DOWN AT HANCOCK HOLDINGS
Gulfport, MS-based, $8.7 billion-asset Hancock Holding Company reported
fourth quarter 2009 insurance brokerage fee income slid 5.7% to $3.33
million, down from $3.53 million in fourth quarter 2008.
Investment and annuity fee income fell 17.4% to $1.66 million,
down from $2.01 million, and trust fees slipped 1.7% to $3.94 million,
down from $4.01 million. Insurance
brokerage, investment and annuity, and trust fee income comprised,
respectively, 5.3%, 2.6% and 6.2% of noninterest income, which more than
doubled to $63.36 million, up from $30.41 million a year ago, helped by
a $33.6 million gain on its FDIC-assisted acquisition of Panama City,
FL-based, $1.72 billion-asset Peoples First Community Bank.
Net interest income rose 1.3% to $47.87 million, up from $47.26
million, as loan loss provisions increased over $2.4 million; and net
income, bolstered by noninterest earnings, more than doubled to $31.78
million, up from $15.22 million.
For the
year 2009, Hancock Holding’s trust fees declined 10.3% to $15.13, down
from $16.86 million in 2008. Insurance
brokerage earnings fell 13.2% to $14.36 million, down from $16.55
million, and investment and annuity fees dropped 24.0% to $8.22 million,
down from $10.81 million. Trust,
insurance brokerage, and investment and annuity fee income comprised,
respectively, 9.6%, 9.1% and 5.2% of noninterest income, which jumped
23.1% to $157.33 million, up from $127.78 million in 2008, reflecting
the aforementioned gain on acquisition.
Net interest income increased 1.5% to $185.9 million, up from
$183.1 million in 2008, despite an over $8.2 million increase in loan
loss provisions. Net
income, especially supported by noninterest earnings, grew 14.4% to
$74.8 million, up from $65.4 million in 2008.
Hancock Holding Company President and CEO Carl Chaney said,
“The Company was able to take advantage of a strategic growth
opportunity that we had positioned ourselves for by expanding into the
Panhandle and the North Central Florida regions with the acquisition of
Peoples First Community Bank…. This
further expands Hancock’s current Florida footprint into attractive,
long-term growth markets.”
In 2008,
Hancock Holding’s insurance brokerage income comprised 9.1% of its
noninterest income and 3.4% of its net operating revenue.
The company ranked 17th in insurance brokerage
earnings among U.S. bank holding companies (BHCs) with assets between $1
billion and $10 billion, according to the Michael
White-Prudential Bank Insurance Fee Income Report.
In
2008, Hancock Holding’s investment program income (including
securities brokerage and annuity income) comprised 8.8% of its
noninterest income and 3.3% of its net operating revenue.
The company ranked 5th in investment program earnings
among U.S. bank holding companies (BHCs) with assets between $1 billion
and $10 billion, according to the Michael
White-Prudential Bank Insurance Fee Income Report
ARROW
FINANCIAL REPORTS 20% JUMP IN INSURANCE BROKERAGE INCOME
Glens Falls, NY-based, $1.84 billion-asset Arrow Financial Corp.
reported fourth quarter 2009 insurance commissions climbed 20.2% to
$590,000, up from $491,000 in fourth quarter 2008, and comprised 15.5%
of noninterest income, which fell 8.2% to $3.81 million, down from $4.15
million a year ago, when the company posted $412,000 in securities
gains. Net interest income
grew 6.3% to $15.2 million, up from $14.3 million, as loan loss
provisions were more than halved to $435,000, and net income rose 2.0%
to $5.1 million, up from $5 million in fourth quarter 2008.
For the
year 2009, insurance brokerage fee income grew 16.4% to $2.41 million,
up from $2.07 million in 2008, and comprised 12.3% of noninterest
income, which climbed 20.4% to $19.59 million, up from $16.27 million in
2008, when the company took $1.61 million in securities losses.
Net interest income grew 5.4% to $58.58 million, up from $55.56
million, as loan loss provisions stood at $1.78 million compared to
$1.67 million in 2008. Net
income reached a record $21.8 million, up 6.9% from $20.4 million a year
ago. Arrow Financial
President and CEO Thomas Hoy said, “We are pleased to report record
earnings and continued growth of our franchise.
Our concentration on the fundamentals has allowed the Company to
achieve double-digit growth rates in several key balance sheet
categories.”
In 2008,
Arrow Financial’s insurance brokerage income comprised 12.3% of its
noninterest income and 2.8% of its net operating revenue.
The company ranked 63rd in insurance brokerage
earnings among U.S. bank holding companies (BHCs) with assets between $1
billion and $10 billion, according to the Michael
White-Prudential Bank Insurance Fee Income Report.
YEAR
2009 RISING INSURANCE EARNINGS COMPRISE 70.3% OF NONINTEREST INCOME AT
VIST
Wyomissing, PA-based, $1.31 billion-asset VIST Financial Corp. reported
the September 2008 acquisition of Fisher Benefits Consulting helped VIST
Insurance drive insurance brokerage earnings up 8.7% in the fourth
quarter to $3.0 million, compared to $2.76 million in fourth quarter
2008. Brokerage and
investment advisory fee income, however, fell 26.4% to $120,000, down
from $163,000, and income from bank-owned life insurance (BOLI) dropped
40.6% to $111,000, down from $187,000.
Insurance earnings dominated noninterest income, comprising 67.7%
of that revenue, which slid 1.8% to $4.43 million, down from $4.51
million in fourth quarter 2008. Brokerage/investment
advisory and BOLI fee income comprised, respectively, 2.7% and 2.5% of
noninterest earnings. Net
interest income on a 3.31% net interest margin grew 16.9% to $7.42
million, up from $6.35 million, as loan loss provisions decreased over
$200,000 to $2.05 million. But, net income rose only slightly to $566,000, up from
$565,000 in fourth quarter 2008, reflecting losses tied to Fannie Mae
and Freddie Mac and $150,000 in net impairment losses on
available-for-sale investment securities.
For the
year 2009, insurance brokerage fee income grew 8.6% to $12.25 million,
up from $11.28 million in 2008. Investment
brokerage fee income fell 12.2% to $714,000, down from $813,000, and
BOLI income dropped 43.3% to $391,000, down from $690,000.
Insurance brokerage revenue was by far the largest contributor to
noninterest income, comprising 70.3% of those earnings, which jumped
47.2% to $17.43 million, up from $11.84 million in 2008, when the
company recorded a net $7.23 million loss on securities.
Investment brokerage fee income and BOLI income comprised,
respectively, 4.1% and 2.2% of noninterest income.
Net interest income on a 3.21% net interest margin slumped 12.5%
to $26.69 million, down from $30.51 million, as loan loss provisions
increased by $3.64 million to $8.57 million.
Net income tumbled 82% to $388,000, down from $2.15 million in
2008, impacted by $2.47 million in net impairment losses.
VIST Financial President and CEO Robert Davis said, “We believe
we are poised for growth across our banking, insurance and wealth
management businesses as our regional and national economies improve.”
In 2008, VIST
Financial’s insurance brokerage income comprised 64.0% of its
noninterest income and 21.0% of its net operating revenue.
The company ranked 16th in insurance brokerage
earnings among all U.S. bank holding companies (BHCs) with assets
between $1 billion and $10 billion, according to the Michael
White-Prudential Bank Insurance Fee Income Report.
In 2008,
VIST Financial’s investment program income (including securities
brokerage and annuity income) comprised 5.6% of its noninterest income
and 1.4% of its net operating revenue.
The company ranked 115th in investment program
earnings among all U.S. bank holding companies (BHCs) with assets
between $1 billion and $10 billion, according to the Michael
White-Prudential Bank Insurance Fee Income Report.
SHORE
BANCSHARES’ INSURANCE REVENUE COMPRISES 50% OF NONINTEREST EARNINGS
Easton, MD-based, $1.16 billion-asset Shore Bancshares reported
insurance brokerage fee income in the fourth quarter fell 13.5% to $2.16
million, down from $2.5 million in fourth quarter 2008, but, as the
largest contributor to noninterest income, comprised 52.3% of that
revenue, which slid 6.4% to $4.13 million, down from $4.41 million.
Net interest income fell 20.4% to $7.14 million, down from $8.96
million, as loan loss provisions surged 165% to $3.67 million, up from
$1.39 million, and net income dropped 46.0% to $1.22 million, down from
$2.26 million in fourth quarter 2008.
For the
year 2009, insurance brokerage fee income declined 7.9% to $11.13
million, down from $12.09 million in 2008, and comprised 57.0% of
noninterest income, which slid 4% to $19.54 million, down from $20.35
million. Net interest
income fell 11.5% to $32.39 million, down from $36.58 million, despite a
170% jump in loan loss provisions to $8.99 million, up from $3.34
million. Net income dropped
53.0% to $5.4 million, down from $11.5 million in 2008.
Shore Bancshares President and CEO Moorhead Vermilye said, “We
are pleased to report a profitable final quarter and full year,” and
added, “We enter 2010 with a very conservative outlook.”
In 2008, Shore
Bancshares’ insurance brokerage income comprised 58.3% of its
noninterest income and 19.9% of its net operating revenue.
The company ranked 14th in insurance brokerage
earnings among all U.S. bank holding companies (BHCs) with assets
between $1 billion and $10 billion, according to the Michael
White-Prudential Bank Insurance Fee Income Report.
______
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