Two bank-owned insurance brokers reported mixed first quarterresults, with BB&T increasing revenues by 35 percent and WellsFargo experiencing an 11 percent decline.
|Winston-Salem, N.C.-based BB&T says Q1 insurance revenuesincreased by $94 million compared to the same period a year ago to$365 million, due primarily to the life insurance wholesalebusiness produced by Crump.
|BB&T acquired Crump in April, and Crump contributed $78million to insurance income in the quarter.
|Overall insurance net income stood at $30 million, an increaseof $7 million over the 2012 first quarter.
|The bank benefited from organic growth in wholesale and retailP&C operations as prices continued to firm.
|During a conference call with financial analysts, CEO Kelly S.King said the division's results “are exceeding our expectations”and life sales have “a lot of future opportunity.”
|Chief Operating Officer Christopher L. Henson notes P&Corganic growth is close to 6 percent and if it had owned Crumpduring the first quarter, it would have added 2 percent to itsgrowth rate. Both the wholesale and retail insurance businesses areexperiencing improvement and BB&T expects the current singledigit overall P&C rate increases to continue.
|“We think it's going to be here for several years,” saysHenson.
|Overall, BB&T says net income dropped 43 percent to $256million because of a one-time disputed tax adjustment of $281million. Without the adjustment net income would have stood at $491million.
|San Francisco-based Wells Fargo says Q1 insurance services fellby $56 million to $463 million compared to the 2012 firstquarter.
|A company spokeswoman says the primary driver of the revenuedecrease was lower commodity prices in its crop insurance company,Rural Community Insurance Services, and the discontinuation oflender-placed insurance commissions. Its insurance brokerage andconsulting business continues to grow, but the company did notprovide additional breakdown of revenues.
|Wells Fargo bank reported Q1 net income of $5.2 billion, up 22percent from the previous year on revenue of $21.3 billion.
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