Magazine article American Banker

Broker Helps Pennsylvania Bank Break into the Business

Magazine article American Banker

Broker Helps Pennsylvania Bank Break into the Business

Article excerpt

Bryn Mawr Trust Co., a provider of investment management services to residents of Philadelphia's affluent Main Line, has added insurance to its mix.

Executives at the $374 million-asset company, based in Bryn Mawr, Pa., say they are keen on insurance sales despite relatively strict state regulations for banks in the business. Bryn Mawr projected revenues of $500,000 from insurance for this year, according to John G. Daniel, director of the group.

Since opening its Insurance Counsellors subsidiary Feb. 1 under a revenue-sharing arrangement with a local insurance brokerage, Simkiss Cos., Bryn Mawr has taken in $25,000 of revenue from selling various types of policies, Mr. Daniel said. Life insurance has been the strongest seller so far. Policies covering property and casualty, automobile, health, and business liability are also available.

Because setting up or buying an insurance agency would be too costly, Bryn Mawr considered a joint venture strategy before deciding on the alliance. Simkiss provides sales, marketing, underwriting, and processing. Through the brokerage, the bank taps into a network of over 50 carriers-an impossibility if it were on its own.

"With the insurance business, you have to establish relationships with insurance carriers, and that relationship usually depends on volume," Mr. Daniel said.

Mr. Daniel was a principal of Warren, Welsh & Thompson, an insurance brokerage he helped found. He sold the brokerage to USI Corp., where he worked until joining Bryn Mawr in August. …

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