FOR IMMEDIATE RELEASE
ICBA Reinsurance Announces Ninth Consecutive Dividend for Community Bank Members
Washington, D.C. (October 17, 2011)—ICBA Reinsurance, the captive reinsurance company of the Independent Community Bankers of America (ICBA), today declared its ninth consecutive dividend. The $125,000 dividend will be paid to community banks that experienced positive underwriting results for 2010. More than 70 percent of ICBA Reinsurance shareholders will receive a dividend, which represents 5.4 percent of the shareholders' earned surplus.
“ICBA Reinsurance is proud to support ICBA-member community banks year after year,” said Stephen A. Ello, ICBA Reinsurance president and CEO. “The ICBA Reinsurance dividend program continues to help community bank participants by providing additional access to capital. This dividend once again confirms that we are successfully supporting our members and their customers.”
Through ICBA Reinsurance, community banks can offer their customers competitively priced, first-rate credit life and disability insurance products from two highly rated, nationally known and respected insurance companies, while also receiving additional tax-advantaged dividend income. Program participants earn commission income and have the opportunity to share insurance underwriting earnings and investment income on their premium reserves.
“Prior to ICBA Reinsurance, many community banks did not have access to many of the same captive reinsurance company profit opportunities that larger banks have enjoyed,” said Melany Kniffen, chairman of ICBA Reinsurance and chairman of Southern Commercial Bank in St. Louis. “Today every community bank can offer their customers credit life and disability insurance products and receive tax-advantaged dividend income based on their underwriting results. It’s a win-win.”
Since its inception, ICBA Reinsurance has paid $16.7 million in commission income and $12 million in claims on behalf of community banks to their customers. Participating community banks have shared $1.1 million in dividends in the past nine years.
For more information, visit www.icba.org.