|The Monetary System - 07
First Monetary Mutual Limited - INTERmoNETary System
Reinventing First Monetary with
|In a groundbreaking decision,
First Monetarys Board of Directors approved a
sweeping business plan that expands the scope of the
companys operations. The new business plan calls
for broadening FMs insurance lines beyond D&O
and Employment Practices Liability coverage and creating
a service arm to support and market new products.
The first program actively pursued is the formation of a captive program allowing community banks to provide mortgage guarantee products. First Monetarys Mortgage Guarantee Program will launch in the second quarter of 1998.
Support will be rendered through a newly created service arm of the company called the MONETARY SYSTEM. This integrated resource leverages the extensive technical capabilities of First Monetarys support businesses to make professional MIS and marketing support services available to community banks that lack time, money, and resources to develop and maintain these important functions internally.
From on-line newsletters to web-based regulatory bulletin boards, from professional database marketing and desktop publishing services to virtual human resource departments, the MONETARY SYSTEM levels the competitive playing field and gives First Monetary Members big bank capacities in planning, compliance, control and business development.
A Ground Floor Opportunity for Community Banks
Awakening to their
profit potential, large commercial banks are scrambling
to form insurance subsidiaries and get into the lucrative
market for mortgage insurance. In a bold move to let
community banks compete and share in this budding
opportunity, First Monetary Mutual Limited is pushing
ahead with a program that allows member banks to offer
mortgage guarantee products and profit by participation.
A Very Attractive Incentive Package
Since a larger number of Mortgage Guarantee participants will increase underwriting credibility and positively influence the initial rate setting process, First Monetary Mutual Limited is offering a one-time package of attractive incentives to any bank that signs on to the program before the start-up date scheduled for June, 1998. Benefits include:
|$100,000 Shareholder Dividend Declared|
|First Monetarys balance
sheet remains rock solid. Based on the excellent
financials as at 31 December 1997, First Monetarys
Board of Directors again approved a dividend distribution
in the amount of $100,000.
The dividend will be distributed at the Annual Shareholders Meeting 15 June, 1998 on a pro-rated basis pegged to the value of member accounts on 31 December 31, 1997.
|New Mortgage Lending Coverage|
|In the policy improvement area,
First Monetary will add Mortgage Lending Coverage to
existing policy coverages in 1998.
This unique benefit covers wrongful acts of discrimination in lending operations covered by Federal and State Statutes, including CRA. This coverage is being added at no cost and does not require a separate policy.
|A-Rating for FM Reinsurer Top|
|Offshore, the business combination
involving First Monetarys reinsurer resulted in a
favorable S&P reassessment of the companys
Fairfax Holdings acquisition of Sphere Drake ensures that the company will carry an A-rating in 1998.
|FRAMES - OFF||FRAMES - ON|
|BERMUDA LINKS||SEND EMAIL||INFORMATION REQUEST|
|First Monetary Products|
|EMPLOYMENT PRACTICES LIABILITY||PRIVATE MORTGAGE|