US banks enjoyed solid growth in the annuities market in the
first quarter of 2009, with income earned on sales up 12.4 percent
to a record $734.5 million, compared with the fourth quarter of
2008, reports consultancy Michael White Associates (MWA). Annuity
commissions increased by a similar 12.1 percent to $655.2
million.
MWA’s study was based on data from 7,447 commercial and 940 bank
holding companies (BHC).
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Of the 940 BHCs, 381 participated in annuity sales activities
during first quarter 2009 with their combined $734.5 million in
annuity commissions and fees constituting 15.7 percent of their
total mutual fund and annuity income of $4.67 billion and 19.5
percent of total BHC insurance sales volume (annuity and insurance
brokerage income) of $3.76 billion.
Of the 7,447 banks, 886 participated in first-quarter annuity sales
activities with their combined $255.7 million in annuity
commissions or 34.8 percent of the banking industry's
total annuity fee income.
Three quarters of the major BHCs, (assets over $10 billion)
dominated , producing total first-quarter 2009 annuity commissions
of $697.1 million, or 94.9 percent of total annuity commissions
reported.
Losers were medium-size BHCs (assets between $1 billion and $10
billion) which recorded a 22.6 percent fall in annuity commissions
compared with the fourth quarter of 2008 to $30.7 million. Also
losing ground were small BHCs (assets under $1 billion) which saw
total annuity commissions fall 4.2 percent to $6.7 million.
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