-- Large top-tier BHCs increased their 2007 BOLI holdings by 16.4% from
$101.0 billion in 2006 to $117.5 billion in 2007. (See Table 1.)
-- Another 56 BHCs with assets between $300 million and $500 million
reported $340.8 million in BOLI assets.
-- Stand-alone banks, those without BHCs, recorded an added $2.5 billion
in BOLI holdings.
-- The industry total of BOLI holdings increased 15.9% from $103.9
billion in 2006 to $120.4 billion in 2007.
-- Of the 857 large top-tier BHCs (assets greater than $500 million), 696
or 81.2% reported holding BOLI assets in 2007, representing a 1.3% increase
from the 687 in 2006. (See Table 2.)
-- BHCs with assets between $1 billion and $10 billion reported the
highest incidence of BOLI ownership, as 315 of 375 BHCs, or 84.0%, reported
having BOLI assets. (See Table 2.)
-- The largest BHCs, those over $10 billion in assets, accounted for the
largest dollar and percentage increase -- $16 billion or 18.1% -- in their
combined BOLI assets. (See Table 1.)
-- BHCs with assets between $500 million to $1 billion registered the
second largest percentage increase in total BOLI assets, rising 4.5% from
$2.86 billion in 2006 to $3.03 billion in 2007. (See Table 1.)
-- The largest by-category increase in BHCs reporting BOLI assets
occurred among BHCs with $1 billion to $10 billion in assets. Their number
increased by 9 from 306 BHCs in 2006 to 315 in 2007. (See Table 2.)
-- According to the Federal Reserve, it is generally not prudent for a
BHC to hold BOLI assets with an aggregate cash surrender value (CSV) that
exceeds 25 percent of the sum of the institution's Tier 1 capital and the
allowance for loan and lease losses. The largest BHCs, those over $10
billion in assets, recorded the highest mean BOLI assets as a percent
(16.6%) of total capital in 2007. (See Table 3.)
-- Nationally, mean BOLI assets as a percent of total capital increased
from 13.3% in 2006 to 13.7% in 2007. (See Table 3.)
Table 1. Total BOLI Assets (in billions)
Held by Bank Holding Companies in 2007
Percent
Large BHCs by Asset Size 2007 2006 Change
---------- ---------- ---------
Over $10 billion $ 104.63 $ 88.59 18.1%
---------- ---------- ---------
$1 billion - $10 billion $ 9.89 $ 9.55 3.6%
---------- ---------- ---------
$500 million - $1 billion $ 3.03 $ 2.86 4.5%
---------- ---------- ---------
---------- ---------- ---------
All $ 117.55 $ 101.00 16.4%
---------- ---------- ---------
Source: Michael White-MullinTBG BOLI Holdings Report - 2008 edition
Table 2. Number of Large Bank Holding Companies
Reporting BOLI Assets in 2007
Percent
Large BHCs by Asset-Size 2007 2006 Change
---------- ---------- ---------
Over $10 billion 59 63 -9.5%
---------- ---------- ---------
$1 billion - $10 billion 315 306 2.9%
---------- ---------- ---------
$500 million - $1 billion 322 318 1.3%
---------- ---------- ---------
---------- ---------- ---------
All 696 687 1.3%
---------- ---------- ---------
Source: Michael White-MullinTBG BOLI Holdings Report - 2008 edition
Table 3. Mean BOLI Assets as a Percentage of
the Sum of Tier 1 Capital + Allowance for Loan & Lease Losses
Percent
Large BHCs by Asset Size 2007 2006 Change
--------- --------- ---------
Over $10 billion 16.55% 15.32% 8.0%
--------- --------- ---------
$1 billion - $10 billion 13.39% 12.77% 4.9%
--------- --------- ---------
$500 million - $1 billion 13.57% 13.37% 1.5%
--------- --------- ---------
--------- --------- ---------
All 13.74% 13.28% 3.5%
--------- --------- ---------
Source: Michael White-MullinTBG BOLI Holdings Report - 2008 edition
About the Michael White-MullinTBG BOLI Holdings Report™
The Michael White-MullinTBG BOLI Holdings Report™ measures and
benchmarks the cash surrender values (CSV) of life insurance held by bank
holding companies and banks and their ratios of CSV to capital. It is one
of several reports dealing with bank fee income activities published by
Michael White Associates, LLC (MWA), a bank insurance consulting firm
headquartered in Radnor, PA. Another report, the MWA BOLI Capital
Concentration Report™, meets the regulatory requirement that each
banking company must conduct a peer analysis of their BOLI holdings
relative to capital and statistically assess whether its BOLI program is an
outlier. All reports may be purchased online at www.BankInsurance.com or
by mail.
MullinTBG is the exclusive sponsor of the Michael White-MullinTBG BOLI
Holdings Report™. MullinTBG is one of the nation's largest providers of
nonqualified executive benefits, with more than 650 customized plans and
$21 billion in total assets (as of March 31, 2008) representing over 57,000
corporate executives. The firm is headquartered in Los Angeles and has
regional offices in Baltimore, Boston, Chicago, Dallas, New York and
Newport Beach. For more information, please visit www.MullinTBG.com.
Contact Information: For additional information contact: Michael D. White, Ph.D., CLU, ChFC President Michael White Associates, LLC 823 King of Prussia Road Radnor, PA 19087 Phone: (610) 254-0440 Email: Pattiann Firmiss Executive Vice President & Chief Marketing Officer MullinTBG 520 Lake Cook Road, Suite 520 Deerfield, IL 60015 Phone: (847) 444-2123 Email: