= Members Only Content
PrintNEWS RELEASE
Jan. 25, 2010
ABIA Media Contact: Jonathan Snowling
(202) 663-5468
E-mail: jsnowlin@aba.com
ABIA AND MARSHBERRY RELEASE BANK-INSURANCE VIABILITY INDEX
10.2 % Drop In Average Total Return on Prior Year Value
WASHINGTON – The average total return on prior year value of bank-owned insurance agencies fell an annual 10.2 percent for the period ending June 30, 2009, according to Bank-Insurance Viability Index. The rate environment and the economic recession negatively impacted top line growth and agency value during the past 18 months.
The quarterly report compiled by MarshBerry and sponsored by the American Bankers Insurance Association provides benchmarking statistics to help bank-insurance platforms realize equity enhancing change.
The report points to management decisions as the key difference between the best and worst performers. “Over the past 24 months, many bank-owned agencies have implemented short-term cost saving initiatives in hopes of preserving profitability, but instead destroyed organic growth and long-term sustainability.”
However, the top 25 percent of bank-owned insurance agencies are performing well, despite the external environment and continue to reinvest and thrive. Leading banks continue to deploy capital, drive growth, embrace accountability and realize long-term equity enhancement within the bank-owned insurance agency.
The Bank-Insurance Viability Index dissects the financial and operational performance of banks, independent agents and brokers, and high performers. The report focuses on the retail brokerage platform and covers topics such as organic growth; new business production; acquired growth; earnings margins; expense ratios; staff investment and staff productivity.
The American Bankers Insurance Association (ABIA) is the separately chartered insurance affiliate of the American Bankers Association (ABA) and is the only Washington, D.C.-based full service association for bank insurance interests. The ABIA’s mission is to develop policy and provide advocacy for banks in insurance and to support bank insurance operations through research, education, compliance-assistance and peer group networking opportunities. ABIA Membership consists of banks, and their affiliated agencies, insurance companies, marketing, and administrative services suppliers, non-bank lending organizations and other firms involved in the bank affiliated insurance industry. Additional information on the ABIA can be found on the Internet at www.theabia.com.
MarshBerry is a specialized management consulting firm rendering services and solutions to insurance organizations, financial services providers, lending institutions and trade associations. Client engagements focus on organic growth, valuations, mergers and acquisitions, operational improvements, research and insights on benchmarking, and proven practices of high performers.
###
For additional information contact:
Valerie Barton
American Bankers Insurance Association
1120 Connecticut Avenue, NW, Washington, DC 20036
Email: vbarton@aba.com
Phone: (202) 663-5072
Fax: (202) 828-4546
www.TheABIA.com
John Wepler
MarshBerry
Email: John@MarshBerry.com
Phone: 440-392-6572
www.MarshBerry.com
