WASHINGTON, D.C. - April 20, 2009 - The American Bankers Association has announced that the American Bankers Professional and Fidelity Insurance Co. intends to purchase Progressive Insurance's Professional Liability Group and all of Progressive's interests in the ABA Sponsored Insurance Program. Currently, ABPFIC is the reinsurer of the ABA Sponsored Insurance Program, and Progressive Insurance is the program's underwriter and carrier.

ABPFIC has created a new managing general agency in Cleveland, ABA Insurances Services, Inc., to be comprised of the existing Progressive Professional Liability Group that will continue serving the banking industry with affordable and reliable bond, directors and officers liability, and related coverages.

ABPFIC has also selected Everest National Insurance Company, an A.M. Best A+ XV (Superior) rated insurer, to serve as the new carrier for the ABA Sponsored Insurance Program. Everest National brings over 15 years of experience in providing quality insurance products and claims services to large national insurance programs and is backed by solid financials. Everest National is a member of Everest Re Group, Ltd. (NYSE:RE), an NYSE listed company with $5 billion in shareholders' equity.

ABPFIC is a bank-owned mutual insurance company managed by a board comprised primarily of bankers. It was created in 1987 to address a lack of available insurance coverage for banks at a reasonable price and to be a stabilizing force. Since inception, Progressive, through its Professional Liability Group and ABPFIC have insured over 4,000 banks. In addition, ABPFIC has declared $67.5 million in distributions to ABA member policyholders.

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. ABPFIC, Progressive, and Everest National will work together to ensure a smooth transition as the transaction is completed. All parties emphasize that the program's customers and agents can be confident that it is business as usual throughout the transition period and beyond.

"The ABPFIC board has always represented the best interests of its insured banks," said John Manor, ABPFIC's chairman. "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. Our customers can be assured that everything about the program will remain virtually the same, including staff, underwriting guidelines, pricing philosophy and coverages."

"Progressive has been an outstanding partner since the beginning of the program," said Edward L. Yingling, ABA president and CEO. "Having said that, it has long been a hope of ABA and the ABPFIC board that eventually ABPFIC would be in a position to buy out its partner in order for the banking industry to have full control of this important resource. After 22 years of successful operations and building strong reserves, ABFPIC now has the size, financial resources and experience to go forward as a stand-alone controlling entity."

"The signature of the program has always been its outstanding service, prompt claims handling, extremely competitive pricing and superior coverages," said John Barbagallo, Progressive's commercial lines group president. Barbagallo said the transfer of ownership makes sense for all involved because it allows Progressive to focus on its core business of auto insurance and provide a good outcome for employees, shareholders and customers.

"Progressive has been proud to partner with ABA and ABPFIC since the program's inception in 1987," said Barbagallo. "Under the continued leadership of the ABPFIC board and ABA, and the retention of PLG staff - including underwriters, sales reps and claims attorneys - our customers and agents can be assured of a seamless continuation of this industry leading program."

Daryl Bradley, President of Everest National, commented "Everest National is proud to be the chosen carrier for the ABA Sponsored Insurance Program. We look forward to working with ABPFIC and its ABA Insurance Services to further solidify the program's position as the pre-eminent insurance provider to the community banking industry."

About ABA
The American Bankers Association brings together banks of all sizes and charters into one association. ABA works to enhance the competitiveness of the nation's banking industry and strengthen America's economy and communities. Its members - the majority of which are banks with less than $125 million in assets - represent over 95 percent of the industry's $13.6 trillion in assets and employ over 2 million men and women. ABA can be found on the Internet at www.aba.com.

About ABPFIC
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.

About Progressive
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, visit the Web site at banks.progressive.com.

About Everest National Insurance Company
Everest National Insurance Company focuses on specialty property and casualty insurance business and is licensed to conduct business in all 50 states, including the District of Columbia. The company is rated A+ XV (Superior) by A.M. Best. To learn more about Everest National, visit its Web site at www.everestnational.com.

Back to Top...