The American Bankers Professional & Fidelity Insurance Company (ABPFIC)

Chairman's letter from 2007 ABPFIC Annual Report:

As Chairman of the American Bankers Professional and Fidelity Insurance Company (ABPFIC), I am pleased to report that 2007 proved to be another year of growth and innovation for ABPFIC and its insured participants.

In 2007, compelling new coverages were introduced to help banks better prepare for emerging and ongoing challenges. Privacy Liability coverage, for example, offers banks protection and expense reimbursement related to the unauthorized access and use of customer data. With A-Side Plus, a bank’s directors can still gain liability protection when they are not indemnified by the bank. Another achievement was the launch of our Excess Deposit Bond, providing banks with the ability to protect customers’ deposits in excess of FDIC insurance coverage.

These innovations are the result of ABPFIC’s continued commitment to meeting the changing needs of community banks. As a banker-owned and directed company, we have firsthand knowledge of industry challenges and understand the solutions that will work in our marketplace. This banker-directed approach not only keeps ABPFIC dynamic, but also ensures that the company is run on sound business principles that lead to prudent financial decisions. As we confront soft market conditions and a weakened economy, the proven business acumen of our banker-led company has never been as important, or as critical, to keeping ABPFIC on course and providing solid, affordable coverage

As a mutual company, ABPFIC is owned by ABA member banks that purchase insurance through the program underwritten by A+ rated Progressive Insurance Casualty Insurance Company. True to the mutual concept, ABPFIC members benefit from the company’s profitability. In December 2007, the ABPFIC Board of Directors declared a record distribution of $5 million that will be shared by participating ABA member banks. To date, there have been more than $63.5 million in declared distributions since 1991

I am also pleased to report that ABPFIC’s financial strength, excellent customer service and compelling coverage enhancements attracted 149 additional banks to the program in 2007. And last December, the American Bankers Association and America’s Community Bankers completed their merger, further solidifying ABA’s leadership in the industry. The new ABA is a strong industry voice representing all charters and sizes of financial institutions, with an expanded member base that is now learning about the benefits ABPFIC can offer their banks.

As ABPFIC looks to the year ahead and beyond, we remain committed to providing a long-term stable source of insurance for the community banking industry. Your bank, as an owner and insured, is an important part of the ABPFIC family. We look forward to continuing to meet your insurance needs

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