American Bankers Association Insurance Program Announces Dividend

I’m a bit behind on my reading…  Just saw the February 21st press release of the dividend by American Bankers Mutual Insurance, Ltd.

Read the release here…

The ABA insurance program (the bank insurance program formerly known as Progressive) has long been a leader in bank insurance.  Now called ABA Insurance Services, the people who are on the front lines of this insurance program are, I think, top notch.

The press release states that the program has 1600 participating banks.  Many of my clients are insured there.

There is a fair amount of misinformation out there about this program.  The sale/merger/buyout of the Progressive ownership by ABA caused some confusion.  I see it as a minor event – the same great people are running the program as before.  The same high quality insurer is in place – Everest Insurance.  In general, the ABA policy forms are superb.

All that said, in the marketplace ABA wins some and loses some.  Further, while owned by ABA, the insurance arm has strict underwriting standards that means not all banks qualify.  Other insurers have quality products too and are hungry for business.

The competition is healthy.  ABA, in general responds well.

Congrats to ABA Insurance Services for 22 years of paying dividends.