Unity Financial Life Insurance Co. increases profitability with FHLB's services

Members took down $2.9 trillion in Advances over the course of 2018, and every dollar of it passed through FHLB Cincinnati’s Correspondent Services department. The efficient and cost-effective provision of these services is key to our promise to be a trusted, reliable partner for our members. Services include:

  • Deposit programs: All member financial transactions flow through its interest-bearing Demand Deposit Account, as well as other accounts that vary by maturity, interest rate and deadlines. Members can move funds into and out of these accounts through the FHLB wire transfer service.
  • Securities safekeeping: We provide members with market information, trade execution, and management reports of the purchase and sale of securities.
  • Settlement service: Members may designate the FHLB as their settlement agent for transactions with the Federal Reserve Bank and other correspondents.

Unity Financial Life Insurance Co. of Cincinnati joined FHLB Cincinnati in 2017, and President Jay Hardy said his company is more profitable because of its membership. “When talking to people in the industry about why we would use the FHLB, my standard response is that they are charged with providing liquidity and stability to the industry,” he said. “They do it by providing above-market deposit rates and below-market Advance rates, which are in the interest of the insurance companies to use.

“Our membership has exactly met our expectations,” Mr. Hardy said.