Bankers' Captive Shares Profits
NU Online News Service, Feb. 23, 11:24 a.m. EST?American Bankers Professional and Fidelity Insurance Company a Bermuda-based captive reinsurer said it will share $4 million in profits with member banks.[@@]
Insured banks that are members of the Washington, D.C.-based American Bankers Association are automatically mutual owners of the reinsurer for the banks' primary coverage, which is provided by Progressive Casualty Insurance Company of Mayfield Heights, Ohio.
Progressive offers offers directors and officers liability, financial institution bond, Internet banking liability, employment practices liability and other related insurance products for community banks. Almost 1,000 banks are part of the program.
The reinsurer said that this year bankers will receive checks ranging up to $75,000, however the average check for a typical community bank in the program with $170 million in assets is for $3,500, approximately 20 percent of the bank's annual premium for the D&O and other coverage.
This is the 14th consecutive year that ABPFIC has made a distribution of profits to member banks.
John Manor, ABPFIC chairman and also director, SunTrust Bank of North Fla. said ABPFIC products bridge gaps in traditional D&O policies.
He said in 2003, the ABA program added 252 new customers, reaching a milestone of 1,750 total customers from all 50 states.
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