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
MWA’s study was based on data from 7,447 commercial and 940 bank
holding companies (BHC).
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
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.