ABA INSURANCE PROGRAM SHARES

$4.5 MILLION IN PROFITS WITH MEMBER BANKS

-- Total Distribution Tops $58.5 Million as Program Celebrates 20^th Anniversary --

WASHINGTON, Jan. 4 – The American Bankers Association today announced that the American Bankers Professional and Fidelity Insurance Company will distribute $4.5 million in underwriting profits to insured member banks.  ABPFIC, the mutual reinsurer for the ABA-sponsored insurance program, has distributed $58.5 million to participants since the program’s inception in 1987. 

The program—underwritten by Progressive Casualty Insurance Company—offers directors & officers liability, financial institution bond, Internet banking liability, employment practices liability and other related insurance products for community banks. Insured banks that are ABA members are automatically mutual owners of ABPFIC.

 “We’re pleased to offer banks this stable and reliable source of insurance and proud to offer profit distributions back to the ABA members,” said Edward L. Yingling, ABA president and CEO.  “Designed and directed by bankers, the ABPFIC program continues to provide innovative insurance policies to address today’s risk management environment.”

“Our program is the only one of its kind that distributes profits directly to member banks,” said ABPFIC Chairman John Manor with The Bank of Bonifay, Bonifay, Fla. “True to the mutual concept, ABPFIC members benefit from their company’s profitability. That is a major achievement for our company and a valuable benefit for ABA members.”

The American Bankers Association brings together all categories of banking institutions to best represent the interests of this rapidly changing industry. Its membership — which includes community, regional and money center banks and holding companies, as well as savings associations, trust companies and savings banks – makes ABA the largest banking trade association in the country. ABA can be found on the Internet at www.aba.com.

The American Bankers Professional and Fidelity Insurance Company is a bank-owned, mutual insurance company that reinsures coverages underwritten by the Progressive Casualty Insurance Company (Progressive) in Mayfield Village, Ohio.  Progressive has earned an "A+" (Superior) rating from A.M. Best Company and can be accessed by independent insurance agents.  An A+ rating by Best’s reflects the strength of a company’s balance sheet, operating performance and business profile.  For more information call Judi Kovach at (800) 274-5222 or visit the Web site at www.banks.progressive.com.

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