Average total returns on the value of of bank-owned insurance agencies were 10.2% lower during the first half of 2009 than they were in the first half of 2008.
Low interest rates and the economic recession have hurt bank agency revenue growth and value, according to Marsh, Berry & Company Inc., Willoughby, Ohio, which compiled the figures for the American Bankers Insurance Association, Washington.
"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," Marsh, Berry says.
