Archive for February 21, 2011
– 21st distribution from American Bankers Mutual Insurance Ltd. Tops $75.5 Million Since 1991 –
February 21, 2011 — Massachusetts banks that purchase D&O and fidelity bond insurance from the ABA Insurance Program and are members of the American Bankers Association will share $288,079 in profit distributions this year from the program’s reinsurer, American Bankers Mutual Insurance Ltd, which has declared a distribution of $4 million in underwriting profits to 995 banks nationwide that participate in the program. Insured banks that are members of the American Bankers Association are automatically owners of the company.
This is the program’s 21st consecutive profit-sharing distribution—$75,500,000 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 $3,000,000. Participating banks nationwide will receive checks this year ranging up to $51,000 with $4,000 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.
“ABA member insureds benefit directly from the innovative policies and profitability of ABA Insurance Services,” said Frank Keating, ABA president and CEO. “They can have confidence that this bank-owned mutual company is financially strong and committed to serving the community bank market.”
“Once again, our bank-owned company has distributed profits directly back to participating ABA member banks,” commented John Manor, chairman of American Bankers Mutual Insurance Ltd. “The company’s financial strength and prudent management have enabled us to continue paying distributions, extend superior customer service and deliver a stable source of state-of-the-art coverage.”
The American Bankers Association represents banks of all sizes and charters and is the voice for the nation’s $13 trillion banking industry and its two million employees. The majority of ABA’s members are banks with less than $165 million in assets. Learn more at aba.com.American Bankers Mutual Insurance Ltd. is a bank-owned, mutual insurance company that reinsures coverages for ABA Insurance Services.