New Orleans (March 7, 2016)—ICBA Reinsurance, the captive reinsurance company of the Independent Community Bankers of America® (ICBA), has returned more than $2 million to participating community banks. The company paid its 13th consecutive dividend of $175,000 to qualifying community banks, representing 5.4 percent of shareholders' earned surplus. Nearly 50 percent of ICBA Reinsurance shareholders received a dividend.
“ICBA Reinsurance is focused on delivering sustainable long-term growth and cash returns to our shareholders, and we’re pleased to offer this 13th consecutive dividend so they can continue to invest in their communities,” said Stephen Ello, CAE, ICBA Reinsurance president and CEO.
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 continue to earn commission income and now have the opportunity to share insurance underwriting earnings and investment income on their premium reserves.
“Our unique business model means that community banks can protect their customers’ assets and the bank’s installment lending portfolio while receiving tax-advantaged dividend income based on successful underwriting results,” said William Wood, chairman of ICBA Reinsurance and chairman, president and CEO of CBT Financial Corp. and Clearfield Bank and Trust Co. in Clearfield, Pa. “We have found credit insurance to be a beneficial addition to our product line and invaluable during a difficult time.”
Since its inception, ICBA Reinsurance has paid more than $22 million in commission income and $13.8 million in claims on behalf of community banks to their customers. Participating community banks have shared more than $2.1 million in dividends.
The Independent Community Bankers of America®, the nation’s voice for more than 6,000 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services.
Below is a list of ICBA Reinsurance related articles found in present and past issues of ICBA Profitability Solutions
. ICBA Profitability Solutions is a publication of the ICBA Services Network. The newsletter highlights profitability solutions offered by ICBA Bancard
, ICBA Mortgage
, ICBA Securities
, ICBA Reinsurance, and ICBA Preferred Service Providers