ABA INSURANCE PROGRAM SHARES PROFITS
The American Bankers Association recently announced that the American Bankers Professional and Fidelity Insurance Co. (ABPFIC) – the mutual reinsurer for the ABA-sponsored insurance program – will distribute $4 million in underwriting profits to insured member banks.
The ABPFIC is a bank-owned mutual insurance company that reinsures coverages underwritten by the Progressive Casualty Insurance Co. (Progressive) in Mayfield Village, Ohio. Progressive has earned an “A+” (superior) rating from A.M. Best Co. 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.
Closer to Home
Fifty-five percent of Connecticut banks purchase their D&O and Financial Institution Bond through Progressive, underwriter for the ABA-sponsored insurance program. Endorsed by the Connecticut Bankers Association, the program can be accessed through your local agent or direct. Progressive also offers internet banking liability protection specifically designed to protect community banks. Banks need not be ABA members to join the program; however, ABA members automatically become mutual owners and share in annual profit-sharing distributions. To date, $54 million has been declared in distributions to community banks nationwide, with more than $525,000 shared among Connecticut banks.
For more information on the program, please contact either Colleen Clancy, (860) 677-5060, at the CBA, or Robert Splawn at Progressive. He can be contacted by phone at (800) 274-5222, fax at (800) 456-6590, or by visiting their Web site, banks.progressive.com.