ICBA News Release
FOR IMMEDIATE RELEASE
ICBA Reinsurance Pays Eighth Consecutive Dividend
ICBA Reinsurance Dividends Surpass $1 Million
Washington, D.C. (July 1, 2010)—ICBA Reinsurance, the captive credit life insurance subsidiary of the Independent Community Bankers of America (ICBA), paid its eighth consecutive dividend of $125,000 to the more than 75 percent of community banks that experienced positive underwriting results for 2009. The dividend represents 5.7 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, which they can reinvest to serve the needs of their communities."
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 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.
Since its inception, ICBA Reinsurance has paid $16.7 million in commission income and $10.9 million in claims on behalf of community banks to their customers. Participating community banks have shared $1.1 million in dividends in the past eight years.
About ICBA Reinsurance
A wholly owned subsidiary of the Independent Community Bankers of America, ICBA Reinsurance is directed by a board of community bankers and provides access to new profit opportunities through credit life and disability insurance offerings that allow community banks to meet virtually any borrowing need.