As banks and insurers compete in the lucrative retirement market, new numbers showed a marked uptick in the sale of annuities at bank holding companies in the first half.
According to the Michael White-ABIA Bank Annuity Fee Income Report, annuity income earned by bank holding companies hit a record $1.53 billion in the first half.
That's an increase of 25% from $1.22 billion earned in the first half of last year.
The bank holding company annuity report is compiled by Michael White Associates and sponsored by the American Bankers Insurance Association.
It is based on data from all 6,805 commercial and FDIC-supervised banks and 934 large top-tier bank holding companies operating on June 30, 2011.
Of the 934 large bank holding companies 383, or 41%, participated in annuity sales activities during the first half.
Wells Fargo & Co. led all bank holding companies in annuity commission income.
Morgan Stanley, JPMorgan Chase & Co., Bank of America Corp. and Regions Financial Corp. rounded out the top five in the category of largest banks
Among bank holding companies with assets between $1 billion and $10 billion, leaders included Stifel Financial Corp., National Penn Bancshares Inc. and Old National Bancorp.
Among bank holding companies with assets of $500 million to $1 billion, leaders were Northeast Bancorp, First Citizens Bancshares Inc., and Van Diest Investment Co.
Banks were not the only ones whose annuity sales surged.
In August, Limra International Inc. reported robust gains in annuity sales among life insurers.
