ICBA News Release
FOR IMMEDIATE RELEASE
ICBA Reinsurance Signs Agreement with Financial Solutions Group To Bring Community Banks Insurance Products, Technology and Training
Washington, D.C. (June 10, 2010)—ICBA Reinsurance, the captive credit life insurance subsidiary of the Independent Community Bankers of America (ICBA), is working with Financial Solutions Group (FSG), a marketing unit of AEGON Direct Marketing Services Inc. (ADMS) and its affiliated insurance companies, to continue bringing ICBA members a strong source of value-added insurance products, state-of-the-art technology and training support. Community banks that participate in ICBA's community bank-owned captive reinsurance program have access to the support of a national network of local agents in addition to extensive marketing and training resources from a highly rated insurance company.
"Large banks have enjoyed the benefit of owning their own captive insurance company for years," said Stephen A. Ello, president and CEO of ICBA Reinsurance. "ICBA Reinsurance brings these same benefits to community banks and their customers. The agreement marries a stable source of highly rated credit life and disability insurance products with ICBA Reinsurance's unique community bank ownership and equity feature."
FSG provides access to insurance products underwritten by Transamerica Life Insurance Company, Monumental Life Insurance Company and AEGON companies and is dedicated to meeting the community bank markets' needs. The group also provides training, administrative support and state-of-the-art technology to administer and track claims.
"This partnership allows community banks to offer their customers value-added, 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," said Kent Carruthers, ICBA Reinsurance chairman and president of Citizens Bank of Clovis, Clovis, N.M.
"We are excited to finalize this agreement with ICBA Reinsurance," said Todd Schubert, senior vice president and business unit leader of AEGON Financial Solutions Group. "We think the ICBA profit-sharing program is a great option for community banks seeking a reinsurance solution they might not be able to get on their own."
ICBA Reinsurance brings community banks and their customers the benefit of owning their own captive insurance companies-the same benefit large banks have enjoyed for years. Community banks participate in ICBA Reinsurance by purchasing a share of stock in the company. As shareholders, they have the opportunity to earn additional income in the form of tax-advantaged dividends and investment income on premium reserves. This is in addition to the commission income they earn. ICBA Reinsurance has paid $17.1 million in commission income since the program's inception and $11.2 million in claims on behalf of community banks to their customers. Total dividends paid to qualifying banks have exceeded $1 million. In January, ICBA Reinsurance and FSG launched a comprehensive training program for community bank lenders that focuses on core sales skills.
In 2007, the AIG American General credit life business was acquired by Monumental Life Insurance Company, Transamerica Financial Life Insurance Company and Stonebridge Casualty Insurance Company, all affiliated companies with ADMS/FSG. This agreement continues a credit insurance relationship through FSG.