LETTER TO SHAREHOLDERS
Dear Shareholder:
As your Fund ended its annual reporting period on April 30, 1995,
its net asset value was $17.25 per share. Income dividends of
approximately $.937 per share were paid during this period, representing
an annualized distribution rate per share of 5.44% based on the April
30, 1995 net asset value. In addition, we are pleased to report that all
dividends paid from net investment income during this period were exempt
from Federal income taxes, although certain shareholders may be subject
to the Federal Alternative Minimum Tax (AMT) on some portfolio income.*
As 1994 drew to a close, the bond market continued to exhibit great
volatility. Yields, as measured by the Bond Buyer 20-Bond GO Index, rose
dramatically during the year from a low of 5.25% in February to a high
of 7.06% in November.** Much of this rise was attributable to tightening
moves by the Federal Reserve Board during the year in its effort to slow
what appeared to be a very strong economy. The last gasp of this
apparent strength occurred with the strong retail sales data reported at
year end.
While the economy grew at its fastest pace in 10 years during 1994,
there are developing signs that the expansion is moderating as higher
interest rates take hold. As an example, existing home sales, new home
construction and auto sales have shown weakness during the first quarter
of 1995. In addition, jobless claims and inventories rose during the
quarter as sales slowed. Many forecasts of economic growth in the first
half of 1995 are being adjusted downward to reflect the recent slowdown.
With inflation remaining subdued and economic activity seeming to
slow, the case for further Fed tightening near term is weak. In fact,
the only fear of tighter monetary policy lately has centered around
possible efforts to support a weak U.S. dollar. These efforts, at this
writing, have not materialized. Instead, the economic weakness of our
major trading partners, Canada and Mexico, augments the probability that
our own economy will continue to decelerate.
The Fund's total return performance during most of the year was
disappointing. As can be seen from the accompanying chart, the market
weakness, which dominated most of 1994, was reflected in your Fund's
performance. During this period, funds such as yours, which have
securities with volatile coupons and long maturities, traded poorly
compared to more defensively structured portfolios and indices. We
maintained that structure into 1995 as the market rallied, and as a
result, we saw improved performance in what was a favorable market for
municipal securities. We think it worth noting that all the securities
in your Fund are of the highest investment rating due to their insured
enhancement.
Our strategy in this environment is to remain fully invested in
order to take advantage of any potential market improvement and to seek
to provide a high level of tax exempt income. Our view of a continuation
of the market rally is a cautious one, however, since much of the
advance in bond prices may already be behind us -- even as the economy
slows further. As the year goes forward, we currently expect to slowly
add more defensive, higher-coupon securities to the portfolio in
anticipation of an increase in inflationary pressures later in the year.
We have included a current Statement of Investments and recent
financial statements for your review. We greatly appreciate your
investment in the Fund and look forward to serving your investment needs
in the future.
Very truly yours,
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
May 16, 1995
New York, N.Y.
*Some income may be subject to State and local taxes. Capital gains,
if any, are generally subject to Federal, State and local taxes.
**The Bond Buyer 20-Bond GO Index is made up of general obligation bonds
maturing in 20 years and has a rating roughly equivalent to A1.
<TABLE>
<CAPTION>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS APRIL 30, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS--100.0% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
ALABAMA--2.7%
Birmingham Airport Authority, Airport Revenue
7.25%, 7/1/2020 (Insured; AMBAC)........................................ $ 1,250,000 $ 1,325,900
Houston County Healthcare Authority, HR, Refunding
(Alabama Medical Center Project)
5.50%, 10/1/2013 (Insured; MBIA)........................................ 5,000,000 4,680,950
CALIFORNIA--5.3%
Bay Area Government Association, Tax Allocation Revenue
California Redevelopment Agency 6%, 12/15/2024 (Insured; CGIC).......... 250,000 241,917
California Housing Finance Agency, Revenue 5.60%, 8/1/2024 (Insured; MBIA).. 1,990,000 1,804,671
Calleguas Municipal Water District, COP (System Improvement Project)
6.625%, 7/1/2021 (Insured; AMBAC) (Prerefunded 7/1/2001) (a)............ 2,750,000 3,032,920
Fairfield Public Financing Authority, Revenue (Fairfield Redevelopment Projects)
5.25%, 8/1/2013 (Insured; CGIC)......................................... 3,500,000 3,128,685
Los Angeles Community Redevelopment Agency, Refunding, Tax Allocation (Bunker Hill)
5.60%, 12/1/2028 (Insured; FSA)......................................... 4,000,000 3,620,880
CONNECTICUT--.8%
Connecticut State Health & Educational Facilities Authority, Revenue:
Capital Asset Issue 6.875%, 1/1/2010 (Insured; MBIA).................... 1,000,000 1,074,250
New Britain General Hospital 6%, 7/1/2024 (Insured; AMBAC).............. 550,000 535,909
South Central Regional Water Authority, Water System Revenue
5.75%, 8/1/2012 (Insured; FGIC)......................................... 250,000 244,888
DELAWARE--.5%
Delaware Economic Development Authority, Gas Facilities Revenue
(Delmarva Power & Light) 7.30%, 7/1/2021 (Insured; FGIC)................ 1,000,000 1,084,340
FLORIDA--7.5%
Dade County, Aviation Revenue 6.60%, 10/1/2022 (Insured; MBIA).............. 3,500,000 3,606,120
Florida Division Bond Finance Department, General Services Revenues
(Department Natural Resource-Preservation 2000) 5.80%,
7/1/2013 (Insured; FSA)................................................. 2,300,000 2,249,285
Florida Housing Finance Agency, Single Family Mortgage
6.65%, 7/1/2026 (Insured; MBIA)......................................... 980,000 1,007,107
Jacksonville Health Facilities Authority, HR:
(Memorial Regional Rehabilitation Center Project) 6.625%,
5/1/2022 (Insured; MBIA)................................................ 3,000,000 3,129,000
(New Children's Hospital at Baptist) 7%, 6/1/2021 (Insured; MBIA)....... 3,750,000 4,024,837
Lee County:
Solid Waste System Revenue 7%, 10/1/2011 (Insured; MBIA)................ 2,000,000 2,163,740
Tourist Development, Tax Revenue, Refunding 5.625%,
10/1/2011 (Insured; FGIC)............................................... 250,000 244,875
Osceloa County, COP, School Board 5.75%, 6/1/2014 (Insured; AMBAC).......... 250,000 242,660
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS(CONTINUED) AMOUNT VALUE
-------------- --------------
HAWAII--1.8%
Hawaii, Budget and Financial Department, Special Purpose Mortgage Revenue
(Hawaiian Electric Co.) 6.60%, 1/1/2025 (Insured; MBIA)................. $ 4,000,000 $ 4,104,240
ILLINOIS--8.3%
Carbondale, HR, Refunding (Southern Illinois Hospital Services)
6.875%, 3/1/2015 (Insured; MBIA)........................................ 1,000,000 1,044,630
Chicago O'Hare International Airport, Special Facility Revenue (International Terminal):
7.625%, 1/1/2010 (Insured; MBIA)........................................ 3,000,000 3,248,970
6.50%, 1/1/2018 (Insured; FGIC)......................................... 1,750,000 1,763,773
Illinois Health Facilities Authority, Revenue, Refunding (Carle Foundation)
6.75%, 1/1/2010 (Insured; FGIC)......................................... 5,650,000 5,919,731
Metropolitan Pier and Exposition Authority, Dedicated State Tax Revenue
(McCormick Place Expansion Project) 6.50%, 6/15/2027 (Insured; FGIC).... 6,375,000 6,473,558
INDIANA--1.8%
Marion County Hospital Authority, Hospital Facilities Revenue (Community Hospitals)
9%, 5/1/2008 (Insured; MBIA)............................................ 1,400,000 1,428,826
Rockport, PCR (AEP Generating Co. Project) 9.375%, 9/1/2014 (Insured; FGIC). 2,400,000 2,489,400
LOUISIANA-- 6.8%
Louisiana Public Facilities Authority, HR (Our Lady of the Lake Regional
Medical Center) 5.757%, 12/3/2021 (Insured; FSA)........................ 16,000,000 15,209,920
MASSACHUSETTS--3.1%
Massachusetts Education Loan Authority, Education Loan Revenue:
7.60%, 1/1/2003 (Insured; MBIA)......................................... 870,000 928,455
7.65%, 1/1/2004 (Insured; MBIA)......................................... 1,010,000 1,092,254
Massachusetts Health & Educational Facilities Authority, Revenue
(Mount Auburn Hospital Issue) 6.30%, 8/15/2024 (Insured; MBIA).......... 5,000,000 5,015,400
MICHIGAN--.7%
Michigan Housing Development Authority, LOR (Greenwood Villa Project)
6.50%, 9/15/2007 (Insured; FSA)......................................... 1,500,000 1,558,365
MONTANA--1.1%
Forsyth, PCR, Refunding (Puget Sound Power & Light Co.)
7.25%, 8/1/2021 (Insured; AMBAC)........................................ 2,250,000 2,423,295
NEVADA--4.0%
Reno, HR (Saint Mary's Hospital) 7.75%,
7/1/2015 (Insured; BIGI) (Prerefunded 11/1/2000) (a)................... 1,475,000 1,666,824
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS(CONTINUED) AMOUNT VALUE
-------------- --------------
NEVADA (CONTINUED)
Washoe County:
Gas Facilities Revenue (Sierra Pacific Power Co. Project)
6.70%, 11/1/2032 (Insured; MBIA)...................................... $ 2,000,000 $ 2,061,460
Water Facilities Revenue (Sierra Pacific Power Co. Project)
6.65%, 6/1/2017 (Insured; MBIA)....................................... 5,000,000 5,162,800
NEW HAMPSHIRE--1.0%
New Hampshire Industrial Development Authority, PCR (Connecticut Light Project)
7.375%, 12/1/2019 (Insured; AMBAC)...................................... 2,000,000 2,141,780
NEW JERSEY--11.7%
Mercer County Improvement Authority, Solid Waste Revenue, Refunding
6.70%, 4/1/2013 (Insured; FGIC)......................................... 5,000,000 5,148,350
New Jersey Economic Development Authority:
PCR (Public Service Electric & Gas Co.) 6.40%, 5/1/2032 (Insured; MBIA). 12,600,000 12,708,738
Water Facilities Revenue (Hackensack Water Co. Project)
5.80%, 3/1/2024 (Insured; MBIA)....................................... 4,350,000 4,184,831
New Jersey Educational Facilities Authority, Revenue, Refunding
(New Jersey Institute of Technology) 6%, 7/1/2024 (Insured; MBIA)....... 770,000 761,553
New Jersey Health Care Facilities Financing Authority, Revenue:
Refunding (Jersey Shore Medical Center) 6.25%, 7/1/2021 (Insured; AMBAC) 270,000 272,673
(Underwood Memorial Hospital) 5.70%, 7/1/2023 (Insured; AMBAC).......... 250,000 238,858
New Jersey Housing & Mortgage Finance Agency, Revenue:
Home Buyer:
6.20%, 10/1/2025 (Insured; MBIA)...................................... 2,250,000 2,234,610
6.375%, 10/1/2026 (Insured; MBIA)..................................... 270,000 272,222
Home Mortgage 9.125%, 4/1/2015 (Insured; MBIA).......................... 20,000 20,710
Salem County Industrial Pollution Control Financing Authority, Revenue, Refunding
(Atlantic City Electric) 6.15%, 6/1/2029 (Insured; FSA)................. 250,000 247,515
NEW YORK--1.3%
New York State Energy & Research Development Authority, Facilities Revenue
(Con Edison Co.-New York, Inc.) 6.375%, 12/1/2027 (Insured; MBIA)....... 3,000,000 2,981,400
NORTH CAROLINA--.7%
North Carolina Municipal Power Agency, Revenue, Refunding (No. 1 Catawba Electric)
5.75%, 1/1/2020 (Insured; MBIA)......................................... 1,600,000 1,523,008
NORTH DAKOTA--1.6%
Mercer County, PCR, Refunding (Montana-Dakota Utilities Co. Project)
6.65%, 6/1/2022 (Insured; FGIC)......................................... 3,500,000 3,617,740
OHIO--.5%
Cleveland, Airport System Revenue 7.40%, 1/1/2020 (Insured; MBIA)........... 1,000,000 1,082,450
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS(CONTINUED) AMOUNT VALUE
-------------- --------------
PENNSYLVANIA--9.1%
Beaver County Industrial Development Authority, PCR, Refunding
(Ohio Edison Co./Mansfield) 7%, 6/1/2021 (Insured; FGIC)................ $ 3,000,000 $ 3,227,880
Bucks County Industrial Development Authority, Revenue (Grand View Hospital Project)
7%, 7/1/2021 (Insured; AMBAC) (Prerefunded 7/1/2001) (a)................ 2,000,000 2,236,160
Coatesville Area School District
6.70%, 1/15/2012 (Insured; AMBAC) (Prerefunded 3/1/2001) (a)............ 5,200,000 5,634,356
Mount Lebanon Hospital Authority, Revenue, Refunding (Saint Clair Memorial Hospital)
9.125%, 7/1/2006 (Insured; FGIC) (Prerefunded 1/1/1996) (a)............. 1,500,000 1,575,480
Pennsylvania Convention Center Authority, Revenue 6.70%,
9/1/2016 (Insured; FGIC)................................................ 1,925,000 2,140,369
Pennsylvania Higher Educational Facilities Authority, College & University Revenues,
Refunding (Duquesne University) 7%, 4/1/2010 (Insured; MBIA)............ 2,000,000 2,145,660
Philadelphia Municipal Authority, Justice Lease Revenue 7.125%, 11/15/2018
(Insured; FGIC) (Prerefunded 11/15/2001) (a)............................ 1,500,000 1,695,075
Philadelphia School District 5.65%, 7/1/2006 (Insured; MBIA)................ 1,700,000 1,684,581
RHODE ISLAND--2.0%
Rhode Island Housing & Mortgage Finance Corp., SFMR
9.30%, 7/1/2004 (Insured; FGIC)......................................... 175,000 181,099
Rhode Island Port Authority & Economic Development Corp.,
Airport Revenue 6.625%, 7/1/2024 (Insured; FSA)......................... 4,250,000 4,328,370
SOUTH CAROLINA--.5%
Florence County, COP, Refunding (Law Enforcement Center Project)
6%, 3/1/2008 (Insured; AMBAC)........................................... 1,000,000 1,015,490
TEXAS--9.2%
Brazos River Authority, PCR, Refunding (Texas Utilities Electric Co. Project):
6.625%, 6/1/2022 (Insured; FGIC)........................................ 5,500,000 5,606,590
6.10%, 4/1/2028 (Insured; FSA).......................................... 5,000,000 4,761,900
Brownsville Housing Finance Corp., SFMR (Mortgage-Multiple Originators & Services)
9.625%, 12/1/2011 (Insured; FGIC)....................................... 845,000 888,458
Gregg County Health Facilities Development Corp., HR, Refunding
(Good Shephard Medical Center Project) 5.50%, 10/1/2015 (Insured; AMBAC) 5,000,000 4,638,300
Harris County, Health Facilities Development Corp., HR
(Memorial Hospital System Project) 6.50%, 6/1/2019 (Insured; AMBAC)..... 4,500,000 4,574,115
UTAH--1.9%
Utah Board of Regents, Student Loan Revenue 7.45%, 11/1/2008 (Insured; AMBAC) 4,000,000 4,332,240
VIRGINIA--1.6%
Chesapeake Bay Bridge and Tunnel Commission, District Revenue, Refunding,
General Resolution 6.375%, 7/1/2022 (Insured; MBIA)..................... 3,500,000 3,542,875
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS(CONTINUED) AMOUNT VALUE
-------------- --------------
WASHINGTON--13.2%
Seattle Municipality, Metropolitan Seattle Sewer Revenue
6.25%, 1/1/2020 (Insured; MBIA)......................................... $ 3,730,000 $ 3,742,980
University of Washington, University Revenues (Housing & Dining)
7%, 12/1/2021 (Insured; MBIA)........................................... 3,000,000 3,265,980
Washington, MFMR 7.40%, 1/1/2030 (Insured; FSA)............................. 6,500,000 6,767,280
Washington Health Care Facilities Authority, Revenue
(Sisters of Saint Joseph Peace Health) 7.75%, 5/1/2015 (Insured; MBIA).. 5,000,000 5,505,100
Washington, Public Power Supply System Revenue, Refunding (Nuclear Project No. 3)
6%, 7/1/2018 (Insured; BIGI)............................................ 6,500,000 6,263,270
Yakima-Tieton, Irrigation District Revenue, Refunding 6.20%,
6/1/2019 (Insured; FSA)................................................. 4,000,000 3,970,040
WISCONSIN--1.4%
Wisconsin Health & Educational Facilities Authority, Revenue (Columbia Hospital, Inc.)
6.50%, 11/15/2010 (Insured; MBIA)....................................... 3,000,000 3,097,020
------------
TOTAL INVESTMENTS (cost $218,740,100)....................................... $223,291,941
============
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LOR Lease Obligation Revenue
BIGI Bond Investors Guaranty Insurance MBIA Municipal Bond Investors Assurance
CGIC Capital Guaranty Insurance Corporation Insurance Corporation
COP Certificate of Participation MFMR Multi-Family Mortgage Revenue
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
HR Hospital Revenue
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (B) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- ------- ----------------- -------------------
<S> <C> <S> <C>
AAA Aaa AAA 100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal
and interest on the municipal issue and to retire the bonds in full
at the earliest refunding date.
(b) Fitch currently provides creditworthiness information for a limited
number of investments.
(c) At April 30, 1995, 42.8% of the Fund's net assets are insured
by MBIA.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $218,740,100)--see statement.................................... $223,291,941
Interest receivable..................................................... 4,703,466
Prepaid expenses........................................................ 27,396
------------
228,022,803
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 145,311
Due to Distributor...................................................... 2,984
Due to Custodian........................................................ 3,059,236
Payable for investment securities purchased............................. 4,307,153
Payable for Common Stock redeemed....................................... 29,555
Accrued expenses........................................................ 80,651 7,624,890
------------ -------------
NET ASSETS ................................................................ $220,397,913
============
REPRESENTED BY:
Paid-in capital......................................................... $223,513,966
Accumulated undistributed investment income--net........................ 65,703
Accumulated net realized (loss) on investments.......................... (7,733,597)
Accumulated net unrealized appreciation on investments--Note 3.......... 4,551,841
------------
NET ASSETS at value applicable to 12,775,333 shares outstanding
(300 million shares of $.01 par value Common Stock authorized).......... $220,397,913
============
NET ASSET VALUE, offering and redemption price per share
($220,397,913 divided 12,775,333 shares).............................. $ 17.25
=======
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED APRIL 30, 1995
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $15,113,221
EXPENSES:
Management fee--Note 2(a)............................................. $1,408,836
Shareholder servicing costs--Note 2(b)................................ 627,357
Professional fees..................................................... 51,922
Registration fees..................................................... 32,403
Prospectus and shareholders' reports--Note 2(b)....................... 24,888
Custodian fees........................................................ 24,855
Directors' fees and expenses--Note 2(c)............................... 21,728
Miscellaneous......................................................... 20,233
-----------
TOTAL EXPENSES.................................................... 2,212,222
-----------
INVESTMENT INCOME-NET............................................. 12,900,999
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments--Note 3.............................. $(6,623,592)
Net unrealized appreciation on investments.............................. 3,594,757
-----------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................. (3,028,835)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 9,872,164
===========
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED APRIL 30,
--------------------------------
1994 1995
----------------- -------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 14,787,342 $ 12,900,999
Net realized gain (loss) on investments................................. 3,638,963 (6,623,592)
Net unrealized appreciation (depreciation) on investments for the year.. (19,025,827) 3,594,757
------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... (599,522) 9,872,164
------------- ------------
DIVIDENDS TO SHAREHOLDERS:
From investment income-net.............................................. (14,749,817) (12,872,821)
From net realized gain on investments................................... (9,290,455) --
In excess of net realized gain on investments........................... (1,110,005) --
------------- ------------
TOTAL DIVIDENDS....................................................... (25,150,277) (12,872,821)
------------- ------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 149,233,338 258,893,824
Dividends reinvested.................................................... 17,708,343 8,373,130
Cost of shares redeemed................................................. (168,658,243) (293,381,175)
------------- ------------
(DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.............. (1,716,562) (26,114,221)
------------- ------------
TOTAL (DECREASE) IN NET ASSETS.................................... (27,466,361) (29,114,878)
NET ASSETS:
Beginning of year....................................................... 276,979,152 249,512,791
------------- ------------
End of year (including undistributed investment income--net:
$37,525 in 1994 and $65,703 in 1995).................................. $249,512,791 $220,397,913
============= ============
SHARES SHARES
------------- ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 7,960,391 15,155,340
Shares issued for dividends reinvested.................................. 930,737 490,282
Shares redeemed......................................................... (9,001,544) (17,163,553)
------------- ------------
NET (DECREASE) IN SHARES OUTSTANDING.................................. (110,416) (1,517,931)
============= ============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share
of Common Stock outstanding, total investment return, ratios to average
net assets and other supplemental data for each year indicated. This
information has been derived from the Fund's financial statements.
YEAR ENDED APRIL 30,
-------------------------------------------------------------
PER SHARE DATA: 1991 1992 1993 1994 1995
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $17.10 $17.77 $18.16 $19.23 $17.46
------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income--net....................... 1.14 1.10 1.06 1.00 .94
Net realized and unrealized gain (loss)
on investments............................. .67 .39 1.28 (1.06) (.21)
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS........... 1.81 1.49 2.34 (.06) .73
------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income--net........ (1.14) (1.10) (1.06) (1.00) (.94)
Dividends from net realized gain
on investments............................. -- -- (.21) (.63) --
Dividends in excess of net realized
gain on investments........................ -- -- -- (.08) --
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS........................ (1.14) (1.10) (1.27) (1.71) (.94)
------ ------ ------ ------ ------
Net asset value, end of year................. $17.77 $18.16 $19.23 $17.46 $17.25
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN.......................... 10.87% 8.56% 13.35% (.74%) 4.36%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .96% .96% .94% .93% .94%
Ratio of net investment income to
average net assets......................... 6.50% 6.07% 5.69% 5.25% 5.49%
Portfolio Turnover Rate...................... 61.87% 51.18% 80.72% 34.92% 41.19%
Net Assets, end of year (000's Omitted)...... $219,299 $240,612 $276,979 $249,513 $220,398
See notes to financial statements.
</TABLE>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940
("Act") as a diversified open-end management investment company. Dreyfus
Service Corporation, until August 24, 1994, acted as the distributor of
the Fund's shares, which are sold to the public without a sales load.
Dreyfus Service Corporation is a wholly-owned subsidiary of The Dreyfus
Corporation ("Manager"). Effective August 24, 1994, the Manager became a
direct subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-
owned subsidiary of FDI Distribution Services, Inc., a provider of
mutual fund administration services, which in turn is a wholly-owned
subsidiary of FDI Holdings, Inc., the parent company of which is Boston
Institutional Group, Inc.
(A) PORTFOLIO VALUATION: The Fund's investments are valued each
business day by an independent pricing service ("Service") approved by
the Board of Directors. Investments for which quoted bid prices are
readily available and are representative of the bid side of the market
in the judgment of the Service are valued at the mean between the quoted
bid prices (as obtained by the Service from dealers in such securities)
and asked prices (as calculated by the Service based upon its evaluation
of the market for such securities). Other investments (which constitute
a majority of the portfolio securities) are carried at fair value as
determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality,
coupon, maturity and type; indications as to values from dealers; and
general market conditions.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss
from securities transactions are recorded on the identified cost basis.
Interest income, adjusted for amortization of premiums and original
issue discounts on investments, is earned from settlement date and
recognized on the accrual basis. Securities purchased or sold on a when-
issued or delayed-delivery basis may be settled a month or more after
the trade date.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to
declare dividends daily from investment income-net. Such dividends are
paid monthly. Dividends from net realized capital gain are normally
declared and paid annually, but the Fund may make distributions on a
more frequent basis to comply with the distribution requirements of the
Internal Revenue Code. To the extent that net realized capital gain can
be offset by capital loss carryovers, it is the policy of the Fund not
to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue
to qualify as a regulated investment company, which can distribute tax
exempt dividends, by complying with the applicable provisions of the
Internal Revenue Code, and to make distributions of income and net
realized capital gain sufficient to relieve it from substantially all
Federal income and excise taxes.
The Fund has an unused capital loss carryover of approximately
$2,972,000 available for Federal income tax purposes to be applied
against future net securities profits, if any realized subsequent to
April 30, 1995. The carryover does not include net realized securities
losses from November 1, 1994 through April 30, 1995 which are treated,
for Federal income tax purposes, as arising in fiscal 1996. If not
applied, the carryover expires in fiscal 2003.
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the
Manager, the management fee is computed at the annual rate of .60 of 1%
of the average daily value of the Fund's net assets and is payable
monthly. The Agreement provides for an expense reimbursement from the
Manager should the Fund's aggregate expenses, exclusive of taxes,
interest on borrowings, brokerage and extraordinary expenses, exceed 1
1/2% of the average value of the Fund's net assets for any full fiscal
year. There was no expense reimbursement for the year ended April 30,
1995.
(B) On August 4, 1994, Fund shareholders approved a revised Service
Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Pursuant to the
Plan, effective August 24, 1994, the Fund (a) reimburses the Distributor
for payments to third parties for distributing the Fund's shares and
servicing shareholder accounts and (b) pays the Manager, Dreyfus Service
Corporation or any affiliate (collectively "Dreyfus") for advertising
and marketing related to the Fund and servicing shareholder accounts, at
an aggregate annual rate of .20 of 1% of the value of the Fund's average
daily net assets. Each of the Distributor and Dreyfus may pay Service
Agents (a securities dealer, financial institution, or other industry
professional) a fee in respect of the Fund's shares owned by
shareholders with whom the Service Agent has a servicing relationship or
for whom the Service Agent is the dealer or holder of record. Each of
the Distributor and Dreyfus determine the amounts to be paid to Service
Agents to which it will make payments and the basis on which such
payments are made. The Plan also separately provides for the Fund to
bear the costs of preparing, printing and distributing certain of the
Fund's prospectuses and statements of additional information and costs
associated with implementing and operating the Plan, not to exceed the
greater of $100,000 or .005 of 1% of the Fund's average daily net assets
for any full fiscal year.
Prior to August 24, 1994, the Fund's Service Plan ("prior Service
Plan") provided that the Fund pay Dreyfus Service Corporation at an
annual rate of .20 of 1% of the value of the Fund's average daily net
assets, for costs and expenses in connection with advertising, marketing
and distributing the Fund's shares and for servicing shareholder
accounts. Dreyfus Service Corporation made payments to one or more
Service Agents based on the value of the Fund's shares owned by clients
of the Service Agent. The prior Service Plan also separately provided
for the Fund to bear the costs of preparing, printing and distributing
certain of the Fund's prospectuses and statements of additional
information and costs associated with implementing and operating the
prior Service Plan, not to exceed the greater of $100,000 or .005 of 1%
of the Fund's average daily net assets for any full fiscal year.
During the year ended April 30, 1995, $318,531 was charged to the
Fund pursuant to the Plan and $160,630 was charged pursuant to the prior
Service Plan.
(C) Prior to August 24, 1994, certain officers and directors of the
Fund were "affiliated persons," as defined in the Act, of the Manager
and/or Dreyfus Service Corporation. Each director who is not an
"affiliated person" receives an annual fee of $2,500 and an attendance
fee of $250 per meeting. The Chairman of the Board receives an
additional 25% of such compensation.
NOTE 3--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of securities amounted
to $233,088,361 and $253,971,289, respectively, for the year ended April
30, 1995, and consisted entirely of long-term and short-term municipal
investments.
At April 30, 1995, accumulated net unrealized appreciation on
investments was $4,551,841, consisting of $7,397,233 gross unrealized
appreciation and $2,845,392 gross unrealized depreciation.
At April 30, 1995, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
We have audited the accompanying statement of assets and liabilities
of Dreyfus Insured Municipal Bond Fund, Inc., including the statement of
investments, as of April 30, 1995, and the related statement of
operations for the year then ended, the statement of changes in net
assets for each of the two years in the period then ended, and financial
highlights for each of the years indicated therein. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. Our procedures
included confirmation of securities owned as of April 30, 1995 by
correspondence with the custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of Dreyfus Insured Municipal Bond Fund, Inc. at April
30, 1995, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then
ended, and the financial highlights for each of the indicated years, in
conformity with generally accepted accounting principles.
Ernst & Young LLP
New York, New York
May 26, 1995
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all
the dividends paid from investment income--net during its fiscal year
ended April 30, 1995 as "exempt--interest dividends" (not generally
subject to regular Federal income tax).
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends
(if any) and capital gain distributions (if any) paid for the 1995
calendar year on Form 1099--DIV which will be mailed by January 31,
1996.
DREYFUS INSURED MUNICIPAL
BOND FUND, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus, which must precede
or accompany this report.
Printed in U.S.A. 306AR954
Insured
Municipal
Bond Fund, Inc.
Annual
Report
April 30, 1995
(Dreyfus Lion Logo)
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS INSURED MUNICIPAL BOND FUND, INC. AND
THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
___________________________________________________
| | | |
| | | |
| PERIOD | LEHMAN BROTHERS | DREYFUS |
| | MUNICIPAL | INSURED MUNICIPAL |
| | BOND INDEX * | BOND FUND |
|-----------|-----------------|--------------------|
| 6/25/85 | 10,000 | 10,000 |
| 4/30/86 | 11,732 | 11,688 |
| 4/30/87 | 12,357 | 12,059 |
| 4/30/88 | 13,438 | 12,554 |
| 4/30/89 | 14,637 | 13,875 |
| 4/30/90 | 15,692 | 14,584 |
| 4/30/91 | 17,495 | 16,169 |
| 4/30/92 | 19,158 | 17,553 |
| 4/30/93 | 21,582 | 19,896 |
| 4/30/94 | 22,048 | 19,750 |
| 4/30/95 | 23,514 | 20,611 |
|--------------------------------------------------|
* Source: Lehman Brothers
