DREYFUS INSURED MUNICIPAL BOND FUND, INC. OCTOBER 31, 1995
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus Insured
Municipal Bond Fund, Inc. For its semi-annual reporting period ended October
31, 1995, your Fund produced a total return of 5.74 % per share.* Income
dividends exempt from Federal personal income taxes of approximately $.470**
per share were paid, which is equivalent to an annualized tax-free
distribution rate per share of 5.20% based upon the closing net asset value
per share on October 31, 1995.
THE ECONOMY
Concerns about lagging economic growth prompted the Federal Reserve Board
to ease the Fed Funds rate in July. This was the first indication that the
Fed was moving away from its long-standing policy dedicated to wringing
inflation out of the economy. The bond market was well ahead of the Federal
Reserve in determining that inflation was, in fact, under control. Long-term
interest rates have fallen for nearly 12 months and, accordingly, bond
investors have enjoyed significant capital gains. Economic indicators remain
mixed, some causing concern about possible recession, while others point
toward continued expansion.
During times of business uncertainty, attention often shifts to the
consumer sector of the economy, particularly regarding the consumer's ability
to spend. There are some indications that consumers are being pinched. There
is little doubt that the economic recovery has been productivity-driven. That
is, corporations have succeeded in paring expenses from their cost of doing
business. With this reduction in overhead, bottom line profits have grown
dramatically. Yet little of this corporate prosperity has spilled over into
the consumer sector of the economy. Wages and salaries grew at under 3% over
the past year, barely keeping pace with inflation. An additional consumer
concern, new job creation, is at the slowest pace of the post-World War II
era. Recent retail sales reports were the weakest since June 1991, when the
economy was in recession. Also, there is worry that the coming holiday season
will be a poor one for retailers, since debt-burdened consumers may spend
cautiously.
Yet, there are also significant signs of continued growth. Despite
indications of a potential slowdown in consumer spending, measures of
consumer confidence remain high. Business capital spending and home-building
activity continue in a positive trend, providing substantial fuel for
economic growth. Business investment in durable equipment, when calculated as
a percentage of Gross Domestic Product (GDP), is at a 35-year high with no
sign of a letup. No wonder industrial production is booming. While job and
wage growth are slow, the index of hours worked (a key determinant of GDP
growth and income generation) is rising. Providing additional confidence is
the fact that the four-and-a-half year recovery has been well balanced:
corporate debt issuance has been moderate and the banking system is not
overstretched.
We are encouraged by the Federal Reserve's successful handling of several
crises (Mexico, derivatives, Japanese banking), any one of which could have
threatened the monetary system in the U.S. and/or abroad.
MARKET ENVIRONMENT
The municipal bond market recovered strongly in 1995 as long-term
interest rates fell. If economic conditions remain sluggish and Congress is
able to arrive at an acceptable budget accord, there is a good chance that
the Fed will ease further. We believe this indicates a favorable outlook for
bond markets in general, particularly with inflation under control. But
inflation can only go so low, and we are wary that the bond market's strength
may be counting too much on continued improvement on the price front. Thus,
while we remain confident in this market environment, we are alert to the
stimulatory effect of easing monetary policy and are watchful for any signs
of rekindling inflation. Our primary task - to maximize current income exempt
from Federal income taxes to the extent consistent with the preservation of
capital - continues to underscore our portfolio management decisions.
While the municipal market and the Fund have performed well this year,
results for municipal securities have been trailing other fixed income
markets. Concerns about tax reform may be limiting investor enthusiasm for
tax-exempt securities. Since April, when serious tax reform proposals began
to surface, the municipal rally has lagged, resulting in an increase in
municipal yields as a percentage of comparable taxable bond yields. Today,
long-term municipal bonds are yielding nearly 90% of U.S. Treasuries, which is
a greater yield ratio than existed before the onset of talk about tax reform.
While it could be years before an actual change in the tax code is adopted,
the market's reaction so early in the proposal cycle suggests that the ultimate
legislation, if any, may have a less radical effect on the market than
feared.
THE PORTFOLIO
During the reporting period, the portfolio's structure has remained
relatively aggressive in keeping with our view of interest rate trends during
the period. We have attempted to extend the duration of the Fund when
redemptions of bonds or the occasional new money inflow has provided cash for
investment. The portfolio has responded favorably to these efforts and to the
decline in interest rates. While this decline in rates has fueled
total-return performance, it constitutes a primary threat to an income-oriente
d fund since, in this environment, the risk of early redemption of high
coupon securities rises dramatically. A central strategy during this period
has been to identify such securities and attempt to achieve a price above the
redemption value, and to reinvest proceeds at an attractive level of income.
Going forward, the Fund presently is structured in anticipation of
continued low inflation. We will be closely monitoring economic data for
signs of rising inflation, which would dictate a rapid movement away from
this moderately aggressive market posture. We do not envision a major
sell-off but we believe that the strong upward movement in prices will slow
and that income will provide the major part of returns in the coming year.
The issuance of new tax-exempt bonds has risen over the past several
weeks from the lackluster pace of the first half of the year; however,
issuance continues at levels well below prior years. The restrained supply
conditions, combined with the substantial amount of bonds being retired, has
greatly limited the choices available to adjust portfolio structures quickly.
Therefore, our strategies are influenced and their implementation thwarted,
at times, by these factors. Our primary tasks-to protect principal, maintain
liquidity and distribute a high level of current tax-exempt income to
you-continue to guide our portfolio management decisions.
The high level of volatility exhibited by the market in recent years
underscores the need to maintain a disciplined and long-term focus. Solid
market performance thus far in 1995 has rewarded the patient investor.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director,
Municipal Portfolio Management
November 15, 1995
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
** Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders.
<TABLE>
<CAPTION>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS OCTOBER 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-98.4% AMOUNT VALUE
------------------ -----------------
<S> <C> <C>
ALABAMA-2.8%
Birmingham Airport Authority, Airport Revenue
7.25%, 7/1/2020 (Insured; AMBAC)........................................ $ 1,250,000 $ 1,358,325
Houston County Healthcare Authority, HR, Refunding (Alabama Medical Center
Project)
5.50%, 10/1/2013 (Insured; MBIA)........................................ 5,000,000 4,950,350
CALIFORNIA-3.3%
Bay Area Government Association, Tax Allocation Revenue,
California Redevelopment Agency 6%, 12/15/24 (Insured; CGIC)............ 250,000 252,302
California Housing Finance Agency, Revenue 5.60%, 8/1/2024 (Insured; MBIA).. 1,990,000 1,876,192
Fairfield Public Financing Authority, Revenue (Fairfield Redevelopment
Projects)
5.25%, 8/1/2013 (Insured; CGIC)......................................... 3,500,000 3,376,345
Lancaster Redevelopment Agency, Tax Allocation, Refunding
(Lancaster Redevelopment Project) 5.80%, 8/1/2023 (Insured; MBIA)....... 2,000,000 1,995,680
CONNECTICUT-.8%
Connecticut State Health & Educational Facilities Authority, Revenue:
Capital Asset Issue 6.875%, 1/1/2010 (Insured; MBIA).................... 1,000,000 1,102,500
New Britain General Hospital 6%, 7/1/2024 (Insured; AMBAC).............. 550,000 554,906
South Central Regional Water Authority, Water System Revenue
5.75%, 8/1/2012 (Insured; FGIC)......................................... 250,000 256,065
DELAWARE-.5%
Delaware Economic Development Authority, Gas Facilities Revenue
(Delmarva Power & Light) 7.30%, 7/1/2021 (Insured; FGIC)................ 1,000,000 1,122,290
FLORIDA-10.3%
Dade County, Aviation Revenue 6.60%, 10/1/2022 (Insured; MBIA).............. 3,500,000 3,718,855
Florida Division Bond Finance Department, General Services Revenues
(Department of Natural Resource-Preservation 2000)
5.80%, 7/1/2013 (Insured; FSA).......................................... 2,300,000 2,349,243
Florida Housing Finance Agency, Single Family Mortgage
6.65%, 7/1/2026 (Insured; MBIA)......................................... 975,000 1,018,046
Hillsboro County, Port District Special Revenue, Refunding (Tampa Port
Authority)
6%, 6/1/2020 (Insured; FSA)............................................. 2,000,000 2,032,440
Jacksonville, Capital Improvement Revenue (Gator Bowl Project)
5.875%, 10/1/2025 (Insured; AMBAC)...................................... 4,000,000 4,047,640
Jacksonville Health Facilities Authority, HR:
(Memorial Regional Rehabilitation Center Project)
6.625%, 5/1/2022 (Insured; MBIA)...................................... 3,000,000 3,223,680
(New Children's Hospital at Baptist) 7%, 6/1/2021 (Insured; MBIA)....... 3,750,000 4,161,375
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------------------- ------------------
FLORIDA (CONTINUED)
Lee County:
Solid Waste System Revenue 7%, 10/1/2011 (Insured; MBIA)................ $ 2,000,000 $ 2,248,340
Tourist Development, Tax Revenue, Refunding 5.625%, 10/1/2011 (Insured; FGIC) 250,000 254,357
Osceloa County, COP, School Board 5.75%, 6/1/2014 (Insured; AMBAC).......... 250,000 252,452
HAWAII-1.9%
Hawaii Budget and Financial Department, Special Purpose Mortgage Revenue
(Hawaiian Electric Co.) 6.60%, 1/1/2025 (Insured; MBIA)................. 4,000,000 4,216,080
ILLINOIS-8.4%
Carbondale, HR, Refunding (Southern Illinois Hospital Services)
6.875%, 3/1/2015 (Insured; MBIA)........................................ 1,000,000 1,051,240
Chicago O'Hare International Airport, Special Facility Revenue (International
Terminal):
7.625%, 1/1/2010 (Insured; MBIA)........................................ 3,000,000 3,324,090
6.50%, 1/1/2018 (Insured; FGIC)......................................... 1,750,000 1,786,488
Illinois Health Facilities Authority, Revenue, Refunding
(Carle Foundation) 6.75%, 1/1/2010 (Insured; FGIC)...................... 5,650,000 6,039,737
Metropolitan Pier and Exposition Authority, Dedicated State Tax Revenue
(McCormick Place Expansion Project) 6.50%, 6/15/2027 (Insured; FGIC).... 6,375,000 6,774,904
INDIANA-.3%
Marion County Hospital Authority, Hospital Facilities Revenue (Community
Hospitals)
9%, 5/1/2008 (Insured; MBIA)............................................ 725,000 739,500
LOUISIANA- 4.8%
Louisiana Public Facilities Authority, HR (Our Lady of the Lake Regional
Medical Center) 5.90%, 12/3/2021 (Insured; FSA)......................... 11,000,000 10,910,350
MASSACHUSETTS-3.6%
Massachusetts Education Loan Authority, Education Loan Revenue:
7.60%, 1/1/2003 (Insured; MBIA)......................................... 850,000 940,865
7.65%, 1/1/2004 (Insured; MBIA)......................................... 985,000 1,087,824
Massachusetts Health & Educational Facilities Authority, Revenue
(Mount Auburn Hospital Issue) 6.30%, 8/15/2024 (Insured; MBIA).......... 5,000,000 5,179,600
Massachusetts Housing Finance Agency, Housing Revenue (Rental-Mortgage)
6.50%, 7/1/2025 (Insured; AMBAC)........................................ 1,000,000 1,024,540
MICHIGAN-.7%
Michigan Housing Development Authority, LOR (Greenwood Villa Project)
6.50%, 9/15/2007 (Insured; FSA)......................................... 1,500,000 1,607,070
MONTANA-1.1%
Forsyth, PCR, Refunding (Puget Sound Power & Light Co.)
7.25%, 8/1/2021 (Insured; AMBAC)........................................ 2,250,000 2,547,833
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------------------ ------------------
NEVADA-4.0%
Reno, HR (Saint Mary's Hospital)
7.75%, 7/1/2015 (Insured; BIGI) (Prerefunded 11/1/2000) (a)............. $ 1,425,000 $ 1,614,568
Washoe County:
Gas Facilities Revenue (Sierra Pacific Power Co. Project)
6.70%, 11/1/2032 (Insured; MBIA)...................................... 2,000,000 2,138,120
Water Facilities Revenue (Sierra Pacific Power Co. Project)
6.65%, 6/1/2017 (Insured; MBIA)....................................... 5,000,000 5,375,400
NEW HAMPSHIRE-1.0%
New Hampshire Industrial Development Authority, PCR (Connecticut Light
Project)
7.375%, 12/1/2019 (Insured; AMBAC)...................................... 2,000,000 2,230,060
NEW JERSEY-10.4%
Mercer County Improvement Authority, Solid Waste Revenue, Refunding
6.70%, 4/1/2013 (Insured; FGIC)......................................... 5,000,000 5,263,750
New Jersey Economic Development Authority:
PCR (Public Service Electric & Gas Co.) 6.40%, 5/1/2032 (Insured; MBIA). 7,600,000 7,976,200
Water Facilities Revenue (N.J. American Water Co., Inc. Project)
5.95%, 11/1/2029 (Insured; FGIC)...................................... 7,500,000 7,554,375
New Jersey Health Care Facilities Financing Authority, Revenue:
Refunding (Jersey Shore Medical Center) 6.25%, 7/1/2021 (Insured; AMBAC) 100,000 104,382
(Underwood Memorial Hospital) 5.70%, 7/1/2023 (Insured; AMBAC).......... 100,000 98,825
New Jersey Housing & Mortgage Finance Agency, Revenue:
Home Buyer:
6.20%, 10/1/2025 (Insured; MBIA)...................................... 2,250,000 2,265,300
6.375%, 10/1/2026 (Insured; MBIA)..................................... 270,000 275,519
Home Mortgage 9.125%, 4/1/2015 (Insured; MBIA).......................... 5,000 5,049
Salem County Industrial Pollution Control Financing Authority, Revenue,
Refunding
(Atlantic City Electric) 6.15%, 6/1/2029 (Insured; FSA)................. 100,000 103,013
MEW MEXICO-1.8%
Farmington, PCR, Refunding (Southern California Edison Co.)
5.875%, 6/1/2023 (Insured; MBIA)........................................ 4,000,000 4,023,040
NEW YORK-1.4%
New York State Energy & Research Development Authority, Facilities Revenue
(Con Edison Co., Inc.) 6.375%, 12/1/2027 (Insured; MBIA)................ 3,000,000 3,102,930
NORTH CAROLINA-.7%
North Carolina Municipal Power Agency, Revenue, Refunding (No. 1 Catawba
Electric)
5.75%, 1/1/2020 (Insured; MBIA)......................................... 1,600,000 1,574,208
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------------------ ------------------
NORTH DAKOTA-1.6%
Mercer County, PCR, Refunding (Montana-Dakota Utilities Co. Project)
6.65%, 6/1/2022 (Insured; FGIC)......................................... $ 3,500,000 $ 3,741,395
OHIO-.5%
Cleveland, Airport System Revenue 7.40%, 1/1/2020 (Insured; MBIA)........... 1,000,000 1,112,850
PENNSYLVANIA-8.2%
Beaver County Industrial Development Authority, PCR, Refunding
(Ohio Edison Co./Mansfield) 7%, 6/1/2021 (Insured; FGIC)................ 3,000,000 3,316,740
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 1,542,975
Pennsylvania Convention Center Authority, Revenue 6.70%, 9/1/2016 (Insured; FGIC) 1,925,000 2,147,723
Pennsylvania Higher Educational Facilities Authority, College & University
Revenues,
Refunding (Duquesne University) 7%, 4/1/2010 (Insured; MBIA)............ 2,000,000 2,218,140
Philadelphia Municipal Authority, Justice Lease Revenue
7.125%, 11/15/2018 (Insured; FGIC) (Prerefunded 11/15/2001) (a)......... 1,500,000 1,736,010
Philadelphia School District 5.65%, 7/1/2006 (Insured; MBIA)................ 1,700,000 1,786,632
Pittsburgh Water and Sewer Authority, Water and Sewer Systems Revenue
5.70%, 9/1/2020 (Insured; FSA).......................................... 6,000,000 5,917,140
RHODE ISLAND-2.0%
Rhode Island Housing & Mortgage Finance Corp., SFMR
9.30%, 7/1/2004 (Insured; FGIC)......................................... 45,000 45,883
Rhode Island Port Authority & Economic Development Corp.,
Airport Revenue 6.625%, 7/1/2024 (Insured; FSA)......................... 4,250,000 4,489,190
SOUTH CAROLINA-.5%
Florence County, COP, Refunding (Law Enforcement Center Project)
6%, 3/1/2008 (Insured; AMBAC)........................................... 1,000,000 1,058,860
TEXAS-7.2%
Brazos River Authority, PCR, Refunding (Texas Utilities Electric Co. Project)
6.625%, 6/1/2022 (Insured; FGIC)........................................ 5,500,000 5,881,645
Brownsville Housing Finance Corp., SFMR (Mortgage-Multiple Originators &
Servicers)
9.625%, 12/1/2011 (Insured; FGIC)....................................... 825,000 854,180
Gregg County Health Facilities Development Corp., HR, Refunding
(Good Shepherd Medical Center Project) 5.50%, 10/1/2015 (Insured; AMBAC) 5,000,000 4,872,850
Harris County Health Facilities Development Corp., HR
(Memorial Hospital System Project) 6.50%, 6/1/2019 (Insured; AMBAC)..... 4,500,000 4,660,065
UTAH-1.9%
Utah Board of Regents, Student Loan Revenue 7.45%, 11/1/2008 (Insured; AMBAC) 4,000,000 4,361,240
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------------------- ------------------
VIRGINIA-1.6%
Chesapeake Bay Bridge and Tunnel Commission, District Revenue, Refunding,
General Resolution 6.375%, 7/1/2022 (Insured; MBIA)..................... $ 3,500,000 $ 3,645,845
WASHINGTON-15.7%
King County, Sewer Revenue 6.125%, 1/1/2033 (Insured; MBIA)................. 5,000,000 5,113,500
Seattle Municipality, Metropolitan Seattle Sewer Revenue
6.25%, 1/1/2020 (Insured; MBIA)......................................... 3,730,000 3,843,653
University of Washington, University Revenues (Housing & Dining)
7%, 12/1/2021 (Insured; MBIA)........................................... 3,000,000 3,333,060
Washington Health Care Facilities Authority, Revenue
(Sisters of Saint Joseph Peace Health) 7.75%, 5/1/2015 (Insured; MBIA).. 5,000,000 5,696,500
Washington, MFMR 7.40%, 1/1/2030 (Insured; FSA)............................. 6,500,000 7,026,760
Washington Public Power Supply System, Revenue, Refunding (Nuclear Project
No. 3)
6%, 7/1/2018 (Insured; BIGI)............................................ 6,500,000 6,506,760
Yakima-Tieton Irrigation District, Revenue, Refunding 6.20%, 6/1/2019 (Insured; FSA) 4,000,000 4,105,760
WISCONSIN-1.4%
Wisconsin Health & Educational Facilities Authority, Revenue (Columbia
Hospital, Inc.)
6.50%, 11/15/2010 (Insured; MBIA)....................................... 3,000,000 3,190,710
------------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $211,583,942)................... $223,292,309
==================
SHORT-TERM MUNICIPAL INVESTMENTS-1.6%
NEW YORK-1.4%
New York City Municipal Water Finance Authority, Water and Sewer System Revenue,
VRDN 3.50% (Insured; FGIC) (b).......................................... $ 3,150,000 $ 3,150,000
U.S. RELATED-.2%
Puerto Rico Electric Power Authority, Power Revenue 3.59%, 7/1/2023 (c)..... 400,000 400,000
------------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $3,550,000).................... $ 3,550,000
==================
TOTAL INVESTMENTS-100.0%
(cost $215,133,942)..................................................... $226,842,309
==================
</TABLE>
<TABLE>
<CAPTION>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LOR Limited 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 VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (D) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
<S> <C> <C> <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 tax-exempt issue and to retire the bonds in full at the
earliest refunding date.
(b) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(c) Inverse floater security-the interest rate is subject to change
periodically.
(d) Fitch currently provides creditworthiness information for a limited
number of investments.
(e) At October 31, 1995, 42.2% of the Fund's net assets are insured by
MBIA.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $215,133,942)-see statement..................................... $226,842,309
Cash.................................................................... 2,117,345
Interest receivable..................................................... 4,716,092
Prepaid expenses........................................................ 33,455
__________________
233,709,201
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $120,853
Due to Distributor...................................................... 3,675
Accrued expenses........................................................ 51,619 176,147
__________________
NET ASSETS ................................................................ $233,533,054
==================
REPRESENTED BY:
Paid-in capital......................................................... $229,646,717
Accumulated net realized (loss) on investments.......................... (7,822,030)
Accumulated net unrealized appreciation on investments-Note 3........... 11,708,367
__________________
NET ASSETS at value applicable to 13,152,905 outstanding shares of
Common Stock, equivalent to $17.76 per share
(300 million shares of $.01 par value authorized)....................... $233,533,054
==================
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1995 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 7,022,455
EXPENSES:
Management fee-Note 2(a).............................................. $ 682,835
Shareholder servicing costs-Note 2(b)................................. 290,273
Professional fees..................................................... 33,817
Registration fees..................................................... 24,117
Prospectus and shareholders' reports-Note 2(b)........................ 16,836
Directors' fees and expenses-Note 2(c)................................ 15,178
Custodian fees........................................................ 12,104
Miscellaneous......................................................... 9,322
____________________
1,084,482
Less-reduction in management fee due to undertaking-Note 2(a)......... 47,206
____________________
TOTAL EXPENSES.................................................... 1,037,276
__________________
INVESTMENT INCOME-NET............................................. 5,985,179
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $ (88,433)
Net unrealized appreciation on investments.............................. 7,156,526
____________________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 7,068,093
__________________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $13,053,272
==================
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
APRIL 30, OCTOBER 31, 1995
1995 (UNAUDITED)
-------------------- -----------------
<S> <C> <C>
OPERATIONS:
Investment income-net............................................. $ 12,900,999 $ 5,985,179
Net realized (loss) on investments................................ (6,623,592) (88,433)
Net unrealized appreciation on investments for the period......... 3,594,757 7,156,526
-------------------- ------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............ 9,872,164 13,053,272
-------------------- ------------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net............................................. (12,872,821) (6,050,882)
-------------------- ------------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold..................................... 258,893,824 132,078,757
Dividends reinvested.............................................. 8,373,130 3,929,586
Cost of shares redeemed........................................... (293,381,175) (129,875,592)
-------------------- ------------------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS (26,114,221) 6,132,751
TOTAL INCREASE (DECREASE) IN NET ASSETS..................... (29,114,878) 13,135,141
NET ASSETS:
Beginning of period............................................... 249,512,791 220,397,913
-------------------- ------------------
End of period (including undistributed investment income-net;
$65,703 on April 30, 1995)...................................... $ 220,397,913 $ 233,533,054
==================== ==================
SHARES SHARES
-------------------- ------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold....................................................... 15,155,340 7,523,355
Shares issued for dividends reinvested............................ 490,282 223,331
Shares redeemed................................................... (17,163,553) (7,369,114)
-------------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING................... (1,517,931) 377,572
==================== ==================
</TABLE>
See independent accountants' review report and notes to financial statements.
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 period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
SIX MONTHS ENDED
YEAR ENDED APRIL 30, OCTOBER 31, 1995
-------------------------------------------------------
PER SHARE DATA: 1991 1992 1993 1994 1995 (UNAUDITED)
------- ------- ------- ------- ------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $17.10 $17.77 $18.16 $19.23 $17.46 $17.25
------- ------- ------- ------- ------- -------------
INVESTMENT OPERATIONS:
Investment income-net................. 1.14 1.10 1.06 1.00 .94 .47
Net realized and unrealized gain (loss)
on investments...................... .67 .39 1.28 (1.06) (.21) .51
------- ------- ------- ------- ------- -------------
TOTAL FROM INVESTMENT OPERATIONS.... 1.81 1.49 2.34 (.06) .73 .98
------- ------- ------- ------- ------- -------------
DISTRIBUTIONS:
Dividends from investment income-net.. (1.14) (1.10) (1.06) (1.00) (.94) (.47)
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) (.47)
------- ------- ------- ------- ------- -------------
Net asset value, end of period........ $17.77 $18.16 $19.23 $17.46 $17.25 $17.76
======= ======= ======= ======= ======= =============
TOTAL INVESTMENT RETURN................... 10.87% 8.56% 13.35% (.74%) 4.36% 11.39%(1)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .96% .96% .94% .93% .94% .91%(1)
Ratio of net investment income to average
net assets.......................... 6.50% 6.07% 5.69% 5.25% 5.49% 5.24%(1)
Decrease reflected in above expense ratios
due to undertakings by the Manager.. -- -- -- -- -- .04%(1)
Portfolio Turnover Rate............... 61.87% 51.18% 80.72% 34.92% 41.19% 13.94%(2)
Net Assets, end of period (000's Omitted) $219,299 $240,612 $276,979 $249,513 $220,398 $233,533
____________________
(1) Annualized.
(2) Not annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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. Premier Mutual Fund
Services, Inc. (the "Distributor") acts as the distributor of the Fund's
shares. 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. The Dreyfus Corporation ("Manager") serves
as the Fund's investment adviser. The Manager is a direct subsidiary of Mellon
Bank, N.A.
(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, if any, 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.
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
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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. The Manager
has currently undertaken from September 1, 1995 through June 30, 1996, to
reduce the management fee paid by, or reimburse such excess expenses of the
Fund, to the extent that the Fund's aggregate annual expenses (exclusive of
certain expenses as described above) exceed an annual rate of .80 of 1% of
the average daily value of the Fund's net assets. The reduction in management
fee, due to undertaking, amounted to $47,206 for the six months ended October
31, 1995.
The undertaking may be modified by the Manager from time to time,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
(B) Under the Service Plan (the "Plan") pursuant to Rule 12b-1 under the
Act, the Fund (a) reimburses the Distributor for payments to certain Service
Agents for distributing the Fund's shares and servicing shareholder accounts
("Servicing") and (b) pays the Manager, Dreyfus Service Corporation, a
wholly-owned subsidiary of the Manager, and any affiliate of either of them
(collectively "Dreyfus") for advertising and marketing related to the Fund
and for servicing, 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 one or more Service Agents 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, if any, to be paid to Service
Agents under the Plan and the basis on which such payments are made. The fees
payable under the Plan are payable without regard to actual expenses
incurred. 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. During the
six months ended October 31, 1995, $234,252 was charged to the Fund pursuant
to the Plan.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund 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 and the Director Emeritus receives 50% less of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities
amounted to $74,412,590 and $77,922,148, respectively, for the six months
ended October 31, 1995, and consisted entirely of long-term and short-term
municipal investments.
At October 31, 1995, accumulated net unrealized appreciation on
investments was $11,708,367, consisting of $11,985,100 gross unrealized
appreciation and $276,733 gross unrealized depreciation.
At October 31, 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.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Insured Municipal Bond Fund, Inc., including the statement of
investments, as of October 31, 1995, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended October 31, 1995. These financial statements and financial highlights
are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
April 30, 1995 and financial highlights for each of the five years in the
period ended April 30, 1995 and in our report dated May 26, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst & Young LLP signature logo]
New York, New York
November 30, 1995
[Dreyfus lion "d" logo]
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
First Data Investor 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. 306SA9510
[Dreyfus logo]
Insured
Municipal
Bond Fund, Inc.
Semi-Annual
Report
October 31, 1995
