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Bank Insurance Sales Up, Growth Rate Down

Insurance premiums sold by banks reached an estimated $78.1 billion in 2003, up from $69.5 billion in 2002, according to the seventh annual American Bankers...
October 26, 2004

Insurance premiums sold by banks reached an estimated $78.1 billion in 2003, up from $69.5 billion in 2002, according to the seventh annual American Bankers Insurance Association (ABIA) Study of Leading Banks in Insurance.
The growth rate for bank-produced insurance and annuity premiums, however, fell to 12.4 percent, its lowest level in five years.

Despite the slower growth, annuity sales still produced an estimated $51.6 billion, or 66.1 percent of total bank-produced premiums in 2003.  Commercial lines (i.e., commercial property/ casualty and group benefits) premiums grew 23.5 percent to $14.2 billion, personal property and casualty premiums grew 26.7 percent to $6.3 billion, and individual life/ health premiums grew 29.1 percent to $3.6 billion. 

Additionally, participation in general insurance (i.e., property/ casualty and life/ health) distribution is increasing among banks larger than $1 billion in assets. Among the surveyed mid-sized banks, the general insurance participation rate is 86.2 percent, only slightly below the 86.4 percent for larger banks.  In contrast, only 25.5 percent of the surveyed banks below $1 billion in assets are distributing general insurance products. Agency acquisition activity continues to fuel bank-insurance growth.  Of the 391 surveyed banks, 49 reported at least one agency acquisition.

Press Release on Survey (ABIA 10/21/04)

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