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ELCO's Response to Recent Bank Closures

Mar 16, 2023 | 3 MIN READ

To our ELCO community: 

ELCO understands the importance of fulfilling the promises made with policyholders through the issuance of life and annuity policies.  Maintaining financial strength is imperative to our commitments and one of our defining traits. 

Recent events in the banking industry related to Silicon Valley Bank, Signature Bank, and Silvergate Capital have resulted in concerns regarding stability throughout the financial services industry and speculation of ripple effects that will extend into the daily lives of many. 

News of the banks closures and government actions this past week triggered ELCO to engage it enterprise risk management policies and procedures.  A comprehensive assessment was performed to understand ELCO’s exposure to these banks along with potential impact to investments and operations given the vulnerability with certain banks as demonstrated by the recent events. 

We have determined that: 

  • ELCO has no investment or financial ties to the closed banks, or to any bank as known at this time identified by regulatory authorities for default or rehabilitation. 
  • ELCO has reviewed vendor relationships and determined that these bank events will not impact ELCO’s ability to continue to service customers and insurance agents. 

We empathize with the hardship to families when a financial institute fails.  Our prudent investment and risk management policies have sustained ELCO for 77 years through several economic downturns, recessions, and most recently a pandemic.  Please be assured that ELCO understands the trust placed with our company and significance we have in personal financial plans.   

We are positioned to absorb economic volatility.  Our ability to meet our obligations and provide service today is at the strongest level in our history.  ELCO achieved in 2022 its nineteenth consecutive year of achieving profits. The promises we made are the commitments that will be kept. 

Thank you,

Paul J. Grawe

Executive Vice President, Chief Financial Officer

Silvio A. Rodia

Vice President, Chief Risk Officer
ELCO Mutual and its representatives are not legal or certified tax professionals. For tax and/or legal advice, please contact a licensed professional. ELCO Mutual contracts with independent licensed insurance producers and does not guarantee nor certify them as financial planners. Not insured by the FDIC or associated with any government program or agency. Annuities are not associated with a bank. Withdrawals taken from annuities before the age of 59 1/2 are subject to the IRS's 10% excise tax. Individual Retirement Accounts (IRAs) cannot be opened past the age in which Required Minimum Distributions (RMDS) begin. Dividends are declared by the company's board of directors and are not guaranteed. When purchasing a single premium whole life policy, please note that the policy is a Modified Endowment Contract (MEC). Any distributions taken by the owner may be taxable (including from the accelerated death benefit rider). Death benefits for life insurance contracts are contingent on any due premiums being paid. The information on this website is intended for informational and educational purposes only and is not intended to provide investment advice or a recommendation. Clients seeking advice should consult a licensed professional. All life insurance policies and annuities are underwritten and issued by ELCO Mutual Life and Annuity. Also known as ELCO Mutual Life and Annuity Company in Florida. Policy Forms: Platinum Eagle: (ICC19-SPL-19), Golden Eagle: (ICC19-WLP-19), Silver Eagle: (ICC19-FE19, ICC21-GBWL21, ICC19-MWL19, ICC21-GIWL21m ICC21-SPLR21), Preneed: (PNMPSI20, PNMPGI20, PNSPL20), DFD: (DFD21, DFD0113), Presidio Plus: (ICC21-TSPL21), Guardian Eagle Single Premium: (ICC19-MYGA[term length]-19), Guardian Eagle Flexible Premium: (ICC16-FPA16), and Immediate Annuities: (SPIA11 and ICC17-AIFXB17). Policy forms may vary by state.