ELCO's Response to Recent Bank ClosuresMar 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.
Paul J. Grawe
Executive Vice President, Chief Financial Officer
Silvio A. Rodia
Vice President, Chief Risk Officer