Second quarter results are in, and NDepth Bank Fee Analysis revealed that Insurance companies are earning well below market rate on their cash balances.
Key findings include:
- Insurance company net earnings credit rates were more than 1.25% below other investment options, resulting in an annual opportunity cost of $127,000 for every $10 million in deposit balances.
- ECRs varied widely among Insurance companies, even at identical balance levels.
- ECRs for Insurance companies were higher than for other companies, but still below market.
- Balance Assessment Fees further depressed Insurance company returns.