Firming insurance market rates helped BB&T insurance services improve its results over the prior quarter and income rose slightly compared to the prior year, the Winston-Salem, N.C. based bank says.
BB&T reports second-quarter insurance income of $426 million, an increase of $61 million from the prior quarter and $33 million over the same period last year.
BB&T attributed the results to firming market conditions and an experienced-based refund of reinsurance premiums totaling $13 million. The bank says it underwrites a limited amount of P&C business.
The bank says the insurance segment produced net income of $66 million, up $36 million from 1Q of this year, but flat when compared to the 2Q 2012. Increased salary and incentive costs affected the quarter's earnings.
During a conference call with financial analysts today, executives say the second quarter is typically the strongest for insurance and they expect income to drop-off in the third quarter by as much as 18 percent.
Chairman and CEO, Kelly S. King, says the insurance segment continues to focus on the business opportunities presented by its acquisition of Crump in the middle of last year. Crump is a wholesale brokerage firm dealing in life and P&C business. He also notes that the bank “has its plate full on insurance acquisitions.” Part of BB&T's growth strategy has been the acquisition of insurance agencies and is the largest holder of agencies among bank holding companies.
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