First Savings Financial Group, the holding company for First Savings Bank, has dissolved its captive insurance subsidiary, First Savings Insurance Risk Management Inc, as the company looks to reduce operating inefficiencies.
The captive was domiciled in Nevada and provided property and casualty insurance to the group, the bank and the bank’s active subsidiaries.
It also provided reinsurance to 11 other third-party captives in instances when insurance may not have been available in the commercial marketplace.
“As we navigated the challenging environment for the banking industry during fiscal 2023, we focused on reducing balance sheet and operating inefficiencies, risks that could result in earnings volatility, and complexity of the organisation, particularly in the fourth fiscal quarter,” said Larry Myers, president and CEO at First Savings Bank, commenting on the group’s performance after its fiscal year-end results were announced.
First Savings Bank reported a net income of $8.2m for the year ended 30 September 2023, compared to net income of $15.4m for the previous year.