The American Bankers Professional & Fidelity Insurance Company (ABPFIC)

Chairman's letter from the 2008 ABPFIC Annual Report:

As Chairman of the American Bankers Professional and Fidelity Insurance Company (ABPFIC), I’m pleased to report that for the 18th consecutive year, ABPFIC is distributing profits back to ABA member banks insured under the program.

Being a mutual company, ABPFIC is owned by ABA member banks like yours, whose insurance coverages are underwritten by Progressive, an A+ carrier. True to the mutual concept, ABPFIC members benefit from their company’s profitability. The program is the only one of its kind to offer distributions directly to its member banks.

As I write this letter, the Company and The Progressive Corporation, the program’s underwriter, are finalizing an agreement in which ABPFIC intends to purchase Progressive’s Professional Liability Group and all of Progressive’s interests in the ABA Sponsored Insurance Program. The Company has created a new Managing General Agency, ABA Insurance Services, Inc., which will employ the staff of the existing Progressive Professional Liability Group and will continue to underwrite the ABA Sponsored Insurance Program, serving the banking industry with affordable and reliable Bond, D&O and related coverage. ABPFIC has selected Everest National Insurance Company, an AM Best A+ XV (Superior) rated insurer, to serve as the new carrier for the ABA Sponsored Insurance Program.

Because this is a complicated transition that involves regulatory approvals and licensing, the completion of the full transition could take as long as one year. Both ABPFIC and Progressive have emphasized that the program’s customers and the independent agents that it is business as usual throughout the transition period and beyond.

Please let me assure you that the ABPFIC Board has always represented the best interests of its insured banks. The Board has exercised its fiduciary responsibilities in reviewing, on a regular basis, all aspects of the ABA Sponsored Insurance Program in order to determine the best course of action for strengthening the Program and maximizing the benefits provided to its insureds. That course of action now takes us to a full ownership position of this important industry resource.

We look forward to this exciting phase of the Program and will update you as the transition takes place. Additionally, we believe you’ll be pleased with the information provided in this report. We value your relationship with ABPFIC and look forward to meeting your insurance needs in the future.

John Manor
Chairman and President
American Bankers Professional and Fidelity Insurance Company Limited
Hamilton, Bermuda