Archive for February, 2010
Total Distribution Tops $71.5 Million Since 1991
February 22, 2010 — 50 Massachusetts banks that purchase D&O and fidelity bond insurance from the ABA Insurance Program will share $277,296 in profit distributions this year from the program’s reinsurer, American Bankers Mutual Insurance Ltd. Insured banks that are ABA members are automatically members of the company.
This year, American Bankers Mutual Insurance has declared a distribution of $4 million in underwriting profits to 1,012 banks nationwide that participate in the program.
This is the program’s 20th consecutive profit-sharing distribution—$71,500,000 has been declared since the first distribution in 1991 based on the mutual program’s success and profitability. The total distributed to Massachusetts banks is nearly $2,680,000.
Participating banks nationwide will receive checks this year ranging up to $50,000 with $3,900 being the average amount.
The program offers directors & officers liability, financial institution bond, internet banking liability, employment practices liability and other related insurance products to community banks.
“Especially during these challenging economic times, we’re pleased to once again offer profit distributions back to our members through this well-established insurance program,” said Edward L. Yingling, ABA president and CEO. “Designed and directed by bankers, ABA Insurance Services continues to provide reliable and innovative insurance policies to address increasingly complex insurance needs of community banks.”
“Our program is the only one of its kind that distributes profits directly to member banks,” said John Manor, chairman of American Bankers Mutual Insurance Ltd. “True to the mutual concept, insured ABA members benefit from the company’s profitability as well as the vital insurance protection we offer. That is a major achievement that is a source of pride for our company and a valuable benefit for ABA members.”
American Bankers Association brings together banks of all sizes and charters into one association. ABA works to enhance the competitiveness of the nation’s banking industry and strengthen America’s economy and communities. Its members – the majority of which are banks with less than $125 million in assets – represent over 95 percent of the industry’s $13.3 trillion in assets and employ over 2 million men and women.
American Bankers Mutual Insurance Ltd. is a bank-owned, mutual insurance company that reinsures coverages for ABA Insurance Services for nearly 1,700 community bank institutions.
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Michael Read, ABA Insurance Services, Inc.
John Hall, American Bankers Association
As you may already know, the Massachusetts Bankers Association has a wholly owned insurance agency, Massachusetts Financial Services Insurance Agency, Inc. which works exclusively with our member banks. Key products include: professional liability and fidelity insurance products such as directors’ and officers’ liability, employment practices liability, financial institutions bond, trust liability and Internet banking liability policies.
Through staff knowledge of both the banking and the insurance fields, we are able to provide your bank with the high degree of expertise that is needed to match the proper insurance coverages with your bank’s risk exposures. In addition to negotiating policy modifications that broaden coverage in favor of your bank, we provide unique, detailed comparisons of the coverages, limits, terms, conditions and exclusions for each insurance carrier’s policy for which we obtain competitive quotes. In fact, many of our members utilize these comparison spreadsheets with their Board of Directors to provide proof of due diligence in obtaining appropriate coverages for the risk exposure of the bank.
In cooperation with national banking trade organizations, the Association sponsors a wide range of bank-related insurance products at very competitive rates working directly with the bank or through the bank’s agent. One of the most widely used and successful services endorsed by the Massachusetts Bankers Association is ABA Insurance Services. Over 40% of Massachusetts banks purchases their D&O and Bond coverage from ABA Insurance Services.
For over twenty-three years as the ABA Sponsored Insurance Program, underwritten by Progressive, ABA Insurance Services has been providing D&O and Bond coverages specifically for community banks, including Employment Practices Liability and Internet Banking Liability insurance as well as STAMP Surety Bonds. Opportunity to participate in a unique program that has declared a profit-sharing for the 20th consecutive year, totalling $71.5 million in profits to participating banks. 50 Massachusetts banks shared over $278,000 in 2010… $2,700,000 to participating Massachusetts banks since program inception. Visit our NEW Web site, www.abais.com.