ICBA News Release
FOR IMMEDIATE RELEASE
Community Bank-Owned ICBA Reinsurance Declares Fifth Dividend
Community Banks Offer Competitively Priced, Quality Insurance Products to Consumers
Washington, D.C. (July 11, 2007)—ICBA Reinsurance, a subsidiary of the Independent Community Bankers of America (ICBA), declared a $125,000 dividend or 13.1 percent of the shareholders' earned surplus. This is the fifth consecutive year ICBA Reinsurance, which is owned by community banks, has declared a dividend. To date, dividends received are approaching $1 million.
"ICBA Reinsurance allows community banks to offer competitively priced, quality insurance to their customers from an A+ rated insurance company backed by ICBA's due diligence and commitment to its member banks," said John "Gof" Thomson, chairman of the board for ICBA Reinsurance and chairman of Bank of New Glarus, Wis. "By offering credit life and disability insurance to our customers, we provide them with stability in the event they experience a loss or become disabled, and it also protects the bank's portfolio from risk."
The dividend will be distributed to shareholders who posted positive underwriting results for the year. Over 80 percent of the participants in the program qualified to receive a dividend. "ICBA Reinsurance was created to provide community banks access to additional revenue beyond the standard commission income most banks earn and to provide stability in the marketplace for the bank and their customers," said Stephen A. Ello, ICBA Reinsurance president and CEO. "This fifth consecutive dividend further strengthens our member community banks by helping them offer a wide variety of quality products and services to their customers."
ICBA Reinsurance participants have access to credit life and disability insurance products to meet virtually any borrowing need from a nationally known and respected insurance company. Program participants earn commission income and share in insurance underwriting earnings and investment income on their premium reserves. Dividends received by banks are subject to tax exclusion rules and are therefore taxed at a lower rate than retro income.