CINCINNATI, March 25, 2009 (GLOBE NEWSWIRE) -- Motorists Mutual Insurance Company (Motorists) of Columbus, Ohio, has been approved for membership at Federal Home Loan Bank of Cincinnati (FHLBank). With $1.2 billion in assets and rated A (Excellent) by A.M. Best, Motorists is the 21st insurance company to join FHLBank and is among more than 180 insurance companies in the 12-district FHLBank system.
Membership allows Motorists to take advantage of FHLBank's product line of financial services, including low-cost advances that can be used for liquidity management and general asset/liability management.
"We are pleased to have such a highly regarded insurance company as a member of the Federal Home Loan Bank of Cincinnati," said David Hehman, CEO of FHLBank. "Membership offers Motorists an excellent source of reliable, low-cost wholesale credit that provides an efficient alternative for managing liquidity, expanded product offerings, interest rate risk mitigation and overall asset/liability management."
Mike Wiseman, treasurer and CFO of Motorists, commented, "Motorists is pleased to have been accepted for membership by the Federal Home Loan Bank of Cincinnati. While we certainly do not anticipate any liquidity issues, we feel it is only prudent to have an additional reliable source of liquidity in this uncertain economic climate."
About Motorists Mutual Insurance Company
Motorists Mutual Insurance Company is the lead company in The Motorists Insurance Group based in Columbus, Ohio. The group of companies is composed of nine property and casualty, life and brokerage companies. At year-end 2008, the group of companies had $642 million in net written premiums and $541 million in policyholder security funds. For more information, visit www.motoristsgroup.com. Motorists Mutual Insurance Co. was established in 1928. It is a major regional insurer that writes property and casualty lines of business. Motorists' products are sold by a network of more than 4,000 independent agents in Ohio, Pennsylvania, West Virginia, Kentucky, Indiana and Michigan.
About the Federal Home Loan Bank of Cincinnati
The FHLBank is a $98 billion congressionally-chartered wholesale regional bank providing financial services for residential housing and economic development to 728 member financial institutions located in Kentucky, Ohio and Tennessee. It has contributed $295 million for the creation of 46,404 units of lower-income housing through its Affordable Housing Program since 1990, and $9 million to help 1,108 persons become first-time homebuyers through the American Dream Homeownership Challenge. The FHLBank System includes 12 district Banks, is wholly owned by its 8,100 member institution stockholders and does not use taxpayer dollars.
This news release may contain forward-looking statements that are subject to risks and uncertainties including, but not limited to, the effects of economic market conditions on demand for the FHLBank's products or the financial condition or results from operations of Motorists, legislative or regulatory developments concerning the FHLBank System, competitive forces and other risks detailed from time to time in the FHLBank's and Motorists' filings with the Securities and Exchange Commission. The forward-looking statements speak as of the date made and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and the FHLBank and Motorists undertake no obligation to update any such statements.