Banks Generate $734.5 Million in Annuity Fee Income During First Quarter of 2009
Bank holding companies generated three quarters of a billion dollars in annuity fee income during the first three months of 2009--an annual run rate of approximately $3 billion.
The fee income is essentially commissions from sales of various annuity products in the banks.
Sales by annuity type were not broken-out in the study that came from Michael White Associates.
That said, the increase in fixed annuity sales in the first quarter of 2009 likely contributed to robust bank sales.
Banks channels comprise about 25% of total fixed annuity sales and only 15% of variable annuity sales.
Source: Investment News
