Banks’ annuity revenue jumps

Bank revenue from the sale of annuities rose 39.6% in the first half to $1.3 billion, from $935.9 million in the first half of 2007, according to a report released today by bank insurance consulting firm Michael White Associates LLC of Radnor, Pa. Annuity commissions earned by banks in the first and second quarters were roughly equal — about $652.6 million. Annuity commissions accounted for 11% of total first-half mutual fund and annuity income, up from 7.7% at midyear 2007. The analysis showed that bank holding companies’ $11.8 billion in first-half revenue from the sales and servicing of mutual funds and annuities fell 2.9% from $12.2 billion in the first half of 2007, attributed largely to a decline in fund sales. The survey was sponsored by life insurer Symetra Financial Corp. of Bellevue, Wash., and was based on data from 946 large bank holding companies.