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The convergence of products and services that began in the 1970s continue to gather momentum. Today most of the top financial services companies do business across sectors, offering their customers an ever-broadening range of financial tools. Below are some examples of convergence. For further information on the financial services arena, see the Financial Services Fact Book ( http://www.financialservicesfacts.org ).
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TOP TEN UNDERWRITERS OF BANK LIFE PREMIUMS BY TOTAL NEW PREMIUM, 2007
($ millions)
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Premiums |
Rank |
Company |
2006 |
2007 |
| 1 | Liberty Life of Boston | $131.4 | $155.3 |
| 2 | Allstate | 166.5 | 140.4 |
| 3 | Transamerica | 185.9 | 140.3 |
| 4 | Hartford | 108.1 | 131.2 |
| 5 | OneAmerica | 53.6 | 72.9 |
| 6 | Lincoln | 54.9 | 70.0 |
| 7 | Nationwide | 28.4 | 32.6 |
| 8 | Aviva | 52.6 | 28.6 |
| 9 | Protective | 18.8 | 20.3 |
| 10 | AIG | 11.4 | 17.8 |
| Source: Kehrer-LIMRA. |
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BANK INSURANCE DISTRIBUTION ACTIVITY, 2007 (1)
(1) Percent of surveyed banks distributing these insurance products.
Source: American Bankers Insurance Association.
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PRIMARY PROPERTY /CASUALTY DISTRIBUTION METHOD, 2007
Source: American Bankers Insurance Association.
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PRIMARY BANK INSURANCE DISTRIBUTION CHANNELS, 2005
(Percent)
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MERGERS AND ACQUISITIONS OF
U.S. SECURITIES FIRMS, 2003-2007 (1)
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2003 |
2004 |
2005 |
2006 |
2007 |
| Number of deals | 150 | 158 | 175 | 198 | 200 |
| Purchased by banks | 52 | 55 | 47 | 57 | 53 |
(1) List does not include terminated deals.
Source: SNL Financial LC. |
| - Bank purchases of securities firms accounted for 30 percent of securities industry mergers and acquisitions from 2003 to 2007. (See also Chapter 4: Convergence.)
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HOUSEHOLD ASSETS
Where people save their money, how much they save and where they look for investment returns is influenced by many factors, including people’s appetite for risk, the state of the economy, the investment products available and incentives to save, such as tax advantages and matching funds provided by employers who offer retirement plans.
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FINANCIAL ASSETS HELD BY FAMILIES BY TYPE OF ASSET, 1998-2004
Percentage of families owning asset (1) |
Trans-action accounts (2) |
Certi-ficates of deposit |
Savings bonds |
Bonds (3) |
Stocks (3) |
Mutual funds (4) |
Retire-ment accounts (5) |
Life insurance (6) |
Other assets (7) |
Any financial asset (8) |
| 1998 | 90.5% | 15.3% | 19.3% | 3.0% | 19.2% | 16.5% | 48.9% | 29.6% | 15.3% | 92.9% |
| 2001 | 91.4 | 15.7 | 16.7 | 3.0 | 21.3 | 17.7 | 52.2 | 28.0 | 16.0 | 93.4 |
| 2004 | 91.3 | 12.7 | 17.6 | 1.8 | 20.7 | 15.0 | 49.7 | 24.2 | 17.3 | 93.8 |
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| By age of family head, 2004 | | | | | | | | | | |
| Under 35 | 86.4 | 5.6 | 15.3 | (9) | 13.3 | 8.3 | 40.2 | 11.0 | 14.5 | 90.1 |
| 35 to 44 | 90.8 | 6.7 | 23.3 | 0.6 | 18.5 | 12.3 | 55.9 | 20.1 | 13.7 | 93.6 |
| 45 to 54 | 91.8 | 11.9 | 21.0 | 1.8 | 23.2 | 18.2 | 57.7 | 26.0 | 18.3 | 93.6 |
| 55 to 64 | 93.2 | 18.1 | 15.2 | 3.3 | 29.1 | 20.6 | 62.9 | 32.1 | 16.6 | 95.2 |
| 65 to 74 | 93.9 | 19.9 | 14.9 | 4.3 | 25.4 | 18.6 | 43.2 | 34.8 | 20.9 | 96.5 |
| 75 and over | 96.4 | 25.7 | 11.0 | 3.0 | 18.4 | 16.6 | 29.2 | 34.0 | 24.8 | 97.6 |
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| Percentiles of income, 2004 (10) | | | | | | | | | | |
| Less than 20 | 75.5 | 5.0 | 6.2 | (9) | 5.1 | 3.6 | 10.1 | 14.0 | 10.2 | 80.1 |
| 20 to 39.9 | 87.3 | 12.7 | 8.8 | (9) | 8.2 | 7.6 | 30.0 | 19.2 | 14.8 | 91.5 |
| 40 to 59.9 | 95.9 | 11.8 | 15.4 | (9) | 16.3 | 12.7 | 53.4 | 24.2 | 17.2 | 98.5 |
| 60 to 79.9 | 98.4 | 14.9 | 26.6 | 2.2 | 28.2 | 18.6 | 69.7 | 29.8 | 19.0 | 99.1 |
| 80 to 89.9 | 99.1 | 16.3 | 32.3 | 2.8 | 35.8 | 26.2 | 81.9 | 29.5 | 23.5 | 99.8 |
| 90 to 100 | 100.0 | 21.5 | 29.9 | 8.8 | 55.0 | 39.1 | 88.5 | 38.1 | 26.4 | 100.0 |
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| Percent distribution of amount of financial assets of all families | | | | | | | | | | |
| 1998 | 11.4 | 4.3 | 0.7 | 4.3 | 22.7 | 12.4 | 27.6 | 6.4 | 10.3 | 100.0 |
| 2001 | 11.5 | 3.1 | 0.7 | 4.6 | 21.7 | 12.2 | 28.4 | 5.3 | 12.6 | 100.0 |
| 2004 | 13.2 | 3.7 | 0.5 | 5.3 | 17.6 | 14.7 | 32.0 | 3.0 | 10.1 | 100.0 |
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(1) Families include one-person units.
(2) Includes checking, savings and money market deposit accounts; money market mutual funds; and call accounts at brokerages.
(3) Covers only those stocks and bonds that are directly held by families outside mutual funds, retirement accounts and other managed assets.
(4) Excludes money market mutual funds and funds held through retirement accounts or other managed assets.
(5) Covers IRAs, Keogh accounts and employer-provided pension plans. Employer-sponsored accounts are those from current jobs (restricted to those in which loans or withdrawals can be made, such as 401(k) accounts) held by the family head and that person's spouse or partner as well as those from past jobs held by either or both of them. Accounts from past jobs are restricted to those from which the family expects to receive the account balance in the future.
(6) Cash value.
(7) Includes personal annuities and trusts with an equity interest, managed investment accounts and miscellaneous assets.
(8) Includes other types of financial assets, not shown separately.
(9) Ten or fewer observations.
(10) Ranges represent percentiles rather than income levels. A percentile is a statistical ranking point. The 50th percentile represents the midpoint of all values. For example, at the 50th percentile half of the families in the ranking fall above this income level, and half fall below.
Note: Latest data available. Based on surveys conducted every three years.
Source: Survey of Consumer Finances, Board of Governors of the Federal Reserve System. |
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