EX-99.2 3 dale1.htm dale1.htm - BB&T

Exhibit 99.2

BB&T

     Insurance and
Financial Services

 

Investor Conference

 

February 11, 2009

Insurance Services and Financial Services


Generating Fee Income 1              
  For the Period Ended
  2004   2005   2006   2007   2008  
BB&T                  Goal 45%  
Noninterest Income                     
/Net Revenue 2  37.8 %  39.1 %  40.6 %  41.3 %  40.3 % 
 
Insurance Services                     
Noninterest Income  10.9 %  11.6 %  12.3 %  12.5 %  12.3 % 
/BB&T Net Revenue 2                     
Financial Services                     
Noninterest Income  7.6 %  8.1 %  8.5 %  8.2 %  8.6 % 
/BB&T Net Revenue 2                     
Combined NII as a %                     
of BB&T Total NII  48.9 %  50.5 %  51.3 %  50.2 %  51.9 % 

1 Operating results           2 Consolidated, fully taxable-equivalent revenues

 

BB&T

Insurance Services

BB&T Overall Insurance Operations is composed of 7 separate complementary subsidiaries:

  • BB&T Insurance Services, Inc. – 96 locations domiciled in the BB&T footprint. This is our key vehicle to execute our Integrated Relationship Management Strategy (IRM).

  • CRC Insurance Services, Inc. – 35 wholesale locations, brokerage and Managing General Agency operation, the largest U.S. P&C wholesaler.

  • McGriff, Seibels and Williams, Inc. – 8 Retail Insurance Operations outside the BB&T (bank) footprint. Retail Insurance operation with a large account (Fortune 1000) emphasis.

  • BB&T Assurance, Ltd. – Bermuda based captive that supplies alternative risk transfer and specialty program expertise, consulting, and program management.

  • AmRisc, LLP – Managing General Underwriter (no risk assumption) for primarily wind based catastrophe prone property – Underwriters for Lloyds of London, Berkshire Hathaway, Renaissance Re, Munich Re, and American Coastal.

  • American Coastal Insurance Company – Insurance company that insures Florida based commercial condominium properties.

  • BB&T Insurance Services of California, Inc. – 6 retail insurance locations domiciled in the State of California, the largest US insurance premium market.

BB&T Insurance Highlights

  • 6th largest Insurance distributor in the United States and 7th in the World1

  • Ranked #1 in Productivity among the World’s Top 10 Brokers for the last 5 years1

  • Top Performer in organic growth among the World’s Top 10 Brokers for the last several years

  • Largest Commercial P&C Wholesale broker in the United States

  • “Top 5” performer with most of our top 25 Insurance Company partners – largest market for many

  • 152 locations across the United States

1 Source: Business Insurance Magazine


BB&T Insurance

Average Commercial Premium Rate Changes by Account Size

 

Insurance Industry Market Conditions

  • In 2008, excess industry capacity fueled price competition, leading to lower renewal rates and premiums across the board

  • Commercial rates have significantly declined since the 4th quarter of 2001 with the exception of 2005 and early 2006.
    Rates were down 10 – 15% (varies by business class) in 2008.

  • In late 4Q08, prices began to stabilize in commercial product lines.

  • Rates are especially turning upward for risks that historically have been the most difficult to insure (i.e. wholesale).

BB&T Insurance’s Focus – Plays that Win

  		•

    When soft market conditions persist, we focus on growing our market share by:

      1.     

    Putting a strong emphasis on writing new business through a consultative selling approach

      2.     

    Maintaining an intense focus on client retention

      3.     

    Seeking out new clients that need to overhaul their risk management program and reduce overall cost

  		•

    Current market conditions give us an opportunity to win new accounts.

  		•

    BB&T Insurance’s retail revenue from new business has consistently performed well, significantly offsetting soft market conditions.

  		•

    BB&T Insurance’s client retention is currently 93%, an increase of 4% from three and a half years ago.

    BB&T Insurance

    Revenue by Company 2008 (12/31)

    $925 million 2008 revenue


    Internal management basis, not restated for acquisitions.

    BB&T Insurance

    Earnings (Income Before Allocations and Tax)


    Internal management basis, not restated for acquisitions. Excludes 2005 lease accounting charges. Excludes effect of Attenta in 2007.

    BB&T

    Financial Services

    BB&T Financial Services

    Over 2,500 professionals and support team members

      Retail Services    Corporate Services 
    •  Wealth Management  •  Asset management 
    •  Investment products sales  •  Capital markets 
    •  Investment advisory  •  Merger & acquisition consulting 
      services  •  Purchase & placement of multi- 
    •  Discount & Full Service    bank credit facilities 
      brokerage services  •  Correspondent broker clearing 
    •  Trust & Estate  •  Corporate & employee benefit 
      administration    plans 
    •  Farm, real estate & timber  •  Actuarial and investment 
      management    consulting services 

    Financial Services Market Coverage


    Financial Services

    Revenue by Line of Business 2008 (12/31)

    $801 million 2008 revenue after intercompany eliminations


    * Total assets invested of approximately $58.3 billion

    BB&T

    Investment Services, Inc.

    BB&T Investment Services, Inc.

    • Fully registered broker-dealer based in Charlotte

    • Over 300,000 retail and small business clients

    • More than $9.3 billion currently invested by our clients

    • Full-service, discount brokerage, and online trading capability

    • Primary focus on the sale of fixed and variable-rate annuities and mutual funds to clients

    • Approximately 356 employees in NC, SC,VA, MD, DC, GA, FL, TN, WV, KY, and AL

    • Member NASD & SIPC

    BB&T Investment Services, Inc.

    Revenue by Source 2008 (12/31)


    Scott & Stringfellow –
    Private Client Group

     

    Scott & Stringfellow – Private Client Group is a division of Scott & Stringfellow,
    LLC, a member NYSE/SIPC. Scott & Stringfellow is a separate, non-bank affiliate
    of BB&T Corporation.

    Scott & Stringfellow – Private Client Group

    Scott & Stringfellow

    Revenue by Source 2008 (12/31)

    $154 million 2008 revenue

    Wealth, Institutional and
         Investment Advisory
     Businesses

    • BB&T Wealth Management

    • Institutional Services

    • BB&T Asset Management, Inc.

    • Sterling Capital Management, LLC

     

    BB&T Wealth Division - providing financial services to the high net worth individual

    • BB&T Wealth Management – Clients with investable assets of $1 million+ 
             or $5 million+ in net worth. Opportunity the BB&T business client 
    • Private Financial Services – Clients with $250,000 to $1 million in 
             investable assets. Opportunity our “invisibly wealthy” clients 
     
    Wealth, Fiduciary and Advisory Services: 
                 • Financial Planning     
                 • Portfolio Management and Investment Advisory Services 
                 • Trust and estate account administration 
                 • Dedicated lending to serve the wealthy client 
                 • Coordinate the delivery of other bank products (e.g. mortgage and 
                           insurance)     

    Institutional Services - providing financial services to our business clients

    • Investment services to a broad range of business clients ranging from custodial responsibility to full investment management

    • Employee based ERISA accounts including 401(k) plans and defined benefit plans

    • Employee benefit consulting services

    • Flex benefits spending accounts and HSA accounts administration

    • Corporate trust services and Philanthropic services

    Investment Advisory Business

  		•

    BB&T Asset Management, Inc.

     

  • Named advisor to the BB&T Mutual Fund Family

     

  • Manager of BB&T Select Equity and Fixed Income Portfolios for BB&T Wealth Division clients and Institutional clients

     

  • Multi-strategy platform manager for Private Financial Clients

  		•

    Sterling Capital Management, LLC

     

  • National sales platform marketing to the professional consultant

     

  • Largely institutional client base for corporations and governmental units

     

  • An investment focus on cash management, high grade fixed income, and small and mid-cap equity selection with a value-based focus

     

  • Ability to manage assets on an international basis

    Wealth/Institutional/Asset Management Services

    Revenue by Source 2008 (12/31)

    BB&T

    Capital Markets

    Corporate Banking and Securities Group

     

    BB&T Capital Markets is a division of Scott & Stringfellow, LLC, a member NYSE/SIPC.
         Scott & Stringfellow is a separate, non-bank affiliate of BB&T Corporation.

    BB&T Capital Markets - Corporate Banking & Securities

    BB&T Capital Markets - Corporate Banking Group

    Division of the Bank that serves the large corporate market with lending products and is the provider of sophisticated credit products and services (i.e. interest rate derivative products, syndicated lending) to our commercial client base

    BB&T Capital Markets – Securities Group

    Division of Scott & Stringfellow, Inc., a registered broker/dealer subsidiary of BB&T Corporation

    Headquarters in Richmond with offices in:     
    Atlanta  Birmingham  Boston  Boca Raton  Charlotte 
     
    New York  Reston, VA  San Diego  San Francisco   
     
    Tysons Corner, VA  Winston-Salem       

    Trading platforms in capital markets involving debt and equity securities

    Investment banking services to small and middle -market clients

    Research – Best on the Street: over half of our publishing analysts have been recognized by the Wall Street Journal or Institutional Investor

    BB&T CAPITAL MARKETS: Full-Service, Relationship Approach

    • BB&T Capital Markets is committed to helping our clients achieve their long-term strategic objectives while addressing their immediate financing needs.

    BBTCM INVESTMENT BANKING: Industry Experience


    BB&T CAPITAL MARKETS:  Corporate Banking Highlights

    Capital Markets Corporate Banking

    • Corporate Banking Industry Specialization – Centralized team of 6 Corporate Bankers aligned with Equity Capital Markets industry teams that currently manage lending relationships with $3.29 billion in credit commitments with $1.28 billion outstanding.

    • Large Corporate Banking Initiative – 7 regionally based Corporate Bankers solely focused on in-market public and private companies with revenues of $250+ and $500+ million, respectively. Total existing credit commitments in this regionally-based portfolio total $4.29 billion with outstandings of approximately $1.25 billion and total deposits of $164 million.

    • High Vol. Deposit Relationships – Centrally manage high volume deposit relationships that generated $9.1 million in analysis fees and $107 million in average DDA balances in 2008.

    Interest Rate Derivatives

    • Interest rate swaps, collars and caps sold by sales team that generated $59.9 million in revenues in 2008.

    Loan Syndications

    • Providing structuring and relationship management support for syndicated loans led by BB&T. BB&T currently Leads or Co-Leads 12 syndicated credit facilities with nearly $1.2 billion in total facility commitments and $520 million in BB&T loan commitments.

    BB&T CAPITAL MARKETS:   Securities Group Highlights

  		•

    BB&T CM advised on 25 M&A transactions and 15 Equity

      transactions.     

  • Debt Capital Markets Taxable Investment Banking was a manager on

      159 transactions in 2008, an 11% increase over 2007.
  		•

    Debt Capital Markets Tax-Exempt Investment Banking was a manager

      on 164 transactions in 2008, a 118% increase over 2007.
  		•

    Based on the strength of the Investment Bankers calling efforts and

      $2.1 billion in BB&T letters of credit, BB&T CM was a top 10
      underwriter / remarketer for floating rate debt in 2008.
  		•

    Both Equity and Debt Sales and Trading had record years as a result

      of wider spreads, increased volume, and prudent risk management
      practices.     

    BB&T Capital Markets

    Revenue by Source 2008 (12/31)

     

    Internal mgmt. basis before loan loss provision, not restated for acquisitions, and the addition of Private Financial Services in 2008.
    Without Private Financial Services, total revenue was approximately $742 million with a CAGR of 11.6%

    Financial Services

    Earnings (Income Before Allocations, Provision & Tax)


    Internal mgmt. basis before loan loss provision, not restated for acquisitions and the addition of Private Financial Services in 2008. Without Private Financial Services, earnings as reported above was approximately $236 million with a CAGR of 14.9% . 2005 excludes lease accounting charges and the Windsor’s accelerated acquisition intangible amortization.

    2008 Financial Services Accomplishments

    • Financial Services achieved record levels of revenue and net income before taxes in 2008.

    • The Luxury Institute Survey reported BB&T Wealth Management first among regional banks in the 2008 Luxury Brand Status Index of ultra-high net-worth consumers with a minimum net worth of $5 million and $200 K annual income.

    • Institutional Services continued its #1 ranking in customer service for small to mid-sized 401(k) providers from 401(k) Exchange and won three Best in Class award from PlanSponsor Magazine.

    • Eleven BB&T Funds received coveted 4- and 5-star ratings from Morningstar, Inc.

    • BB&T Capital Markets placed nine analysts in the Forbes/Starmine / WSJ / Forbes annual awards, managed 15 public equity offerings, and advised on 25 M&A transactions.

    BB&T

         Insurance and
         Financial Services