ICBA News Release
FOR IMMEDIATE RELEASE
ICBA Reinsurance Pays Seventh Consecutive Dividend
Washington, D.C. (October 30, 2009)—ICBA Reinsurance, the captive credit life insurance subsidiary of the Independent Community Bankers of America (ICBA), today paid its seventh consecutive dividend. The $125,000 dividend, which represents 5.7 percent of the shareholders' earned surplus, will be distributed to shareholders that posted positive underwriting results for 2008. More than 73 percent of the program’s participants qualified to receive a dividend.
“This dividend confirms that despite the economic downturn, ICBA Reinsurance continues to achieve its goals of supporting ICBA-member community banks,” said Stephen A. Ello, ICBA Reinsurance president and CEO. “The ICBA Reinsurance dividend program is especially helpful to community bank participants during these economically challenging times because it provides additional access to capital—capital that will be used to further serve the needs of their communities.”
ICBA Reinsurance participants have access to credit life and disability insurance products to meet virtually any borrowing need from two highly rated, nationally known and respected insurance companies. Program participants earn commission income and have the opportunity to share in insurance underwriting earnings and investment income on their premium reserves. ICBA Reinsurance participating community banks have shared almost a million dollars in dividends in the past seven years. ICBA Reinsurance has paid $13 million in commission income since the program’s inception and $8.1 million in claims on behalf of community banks to their customers.
“Prior to ICBA Reinsurance, many community banks did not have access to the same captive reinsurance company profit opportunities that larger banks have enjoyed over the years,” said Kent Carruthers, chairman of ICBA Reinsurance and president of The Citizens Bank of Clovis, Clovis, N.M. “Today community banks can offer their customers competitively priced, first-rate credit life and disability insurance products through the ICBA Reinsurance program while also receiving additional tax-advantaged dividend income that is put to work in community banks and the communities they serve.”