DREYFUS INSURED MUNICIPAL BOND FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus Insured
Municipal Bond Fund, Inc. For the fiscal year ended April 30, 1996, your Fund
produced a total return of 4.58% per share.* Income dividends exempt from
Federal personal income taxes of approximately $.916 per share were paid.**
This amounts to an annualized tax-free distribution rate per share of
5.30%.***
THE ECONOMY
Concerns that the economy was heading toward recession were eased by the
recent release of brighter-than-expected reports on employment and consumer
spending. Consequently, the Federal Reserve refrained from making any further
reductions in the Federal Funds rate; the last easing of this benchmark
interest rate occurred on January 31st. In reaction to the more optimistic
economic news (and the related fears of a potential rekindling of inflation),
long-term interest rates as measured by 30-year Treasury bonds have risen
nearly one percentage point since February.
The rosier tone to the economic outlook was spearheaded by reports of
large gains in employment for two consecutive months (February and March).
Furthermore, personal income and expenditures data indicated that consumers
continued to spend, despite their present high level of installment credit.
Retail sales reports have correspondingly edged higher, confirming a modest
recovery in consumer spending from its year-end slump.
Supporting the growing consensus that the economy has picked up steam
were reports of slow but steady growth in the manufacturing sector. After
adjusting data for the 17-day General Motors strike, industrial output rose
modestly. New orders for durable goods, a closely watched indicator of future
hiring and production, also posted gains.
Despite the economy's apparent recovery from its year-end pause,
inflation has remained under control. Through March of this year, the
Consumer Price Index rose at an annual rate of 2.8%. Importantly, there
appear to be few signs of inflationary pressure in the economy. Factories are
running at a relatively comfortable rate of capacity (82.5%), markedly below
this expansion's peak of 85.1% reached over a year ago. With major industries
trying to reduce inventories, there is little to suggest that product pricing
will surge upwards. Reflecting this absence of so-called pipeline
inflationary pressure, price increases at both the wholesale and production
levels of the economy remained similarly under control. The cautionary stance
of the Federal Reserve regarding additional reductions in interest rates,
combined with the fiscal restraint from reduced government spending, should
serve as additional moderating forces against any resurgence in inflation.
We are mindful, however, of several signals which prompt us to be alert
to a potential change in what has been a benign inflation picture. The recent
rise in oil prices, along with strength in other commodity prices such as
grain, are not to be dismissed lightly. While they may be only aberrations of
a temporary nature, they also could represent early warning signs of a
fundamental change in inflation which will be seen later in the year.
MARKET ENVIRONMENT
The municipal market experienced a dramatic downturn late in the first
quarter of 1996. The weakness continues as this letter is being written,
although some improvement has been seen. The expectations of
faster econcomic growth combined with rising commodity prices raised the
specter of future inflation - just what long-term bond investors fear most.
The most recent peak in market prices during this period was in
mid-February with yields on good quality issues trading around 5.30%. By
early April, prices had declined and yield levels had risen above 6.0%. The
last time we experienced a downward move of similar magnitude was in the
tumultuous downturn in 1994.
Markets rarely move in one direction over an extended period of time,
therefore we are optimistic that much of the market correction is behind us.
We remain cautious, however, awaiting confirmation of a market bottom before
pursuing a more aggressive strategy.
THE PORTFOLIO
As we entered 1996, our view was that the economy would remain sluggish
and that inflation would stay subdued. Our portfolio strategy was to stay
fully invested with primarily current and discount coupon bonds. While these
views and the supporting economic data have not been altered appreciably, the
rise in the employment figure in March had a profound influence on bond
market pyschology with the mood going from bullish to bearish in a very short
period. This contributed greatly to the decline in portfolio asset values.
Following the initial drop in prices, we altered the portfolio's structure to
slow the drop in values should the downward trend persist. The market did
continue to fall and we believe our early moves to raise the cash position
were appropriate to moderate a further decline in portfolio values.
The economy is at a crossroads where growth is concerned. Going forward,
we anticipate continued volatility until the issue
of the rate of economic growth is made more clear. We are holding our cash
position at its present conservative level until we believe that the economy
is moderating, rate pressures are subsiding, and market psychology turning
positive. The current market does appear to be forming a bottom in price and
we are prepared to return to a fully invested position should an economic
slowdown become evident.
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.
Sincerely,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
May 15, 1996
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.
*** Annualized distribution rate per share is based upon dividends per
share paid from net investment income during the period, divided by the net
asset value per share at the end of the period.
DREYFUS INSURED MUNICIPAL BOND FUND, INC. APRIL 30, 1996
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS INSURED
MUNICIPAL BOND FUND, INC. AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
Dollars
$21,636
Lehman Brothers
Municipal Bond Index*
$18,441
Dreyfus Insured
Municipal Bond Fund
*Source: Lehman Brothers
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
ONE YEAR ENDED FIVE YEARS ENDED TEN YEARS ENDED
APRIL 30, 1996 APRIL 30, 1996 APRIL 30, 1996
___________ ___________ ______________
<S> <C> <C> <C>
4.58% 5.92% 6.31%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus Insured
Municipal Bond Fund, Inc. on 4/30/86 to a $10,000 investment made in the
Lehman Brothers Municipal Bond Index on that date. All dividends and capital
gain distributions are reinvested.
The Fund invests primarily in municipal securities which are insured as to
the timely payment of principal and interest by recognized insurers of
municipal securities. The Fund's performance shown in the line graph takes
into account fees and expenses. Unlike the Fund, the Lehman Brothers
Municipal Bond Index is an unmanaged total return performance benchmark for
the long-term, investment-grade tax exempt bond market, calculated by using
municipal bonds selected to be representative of the municipal market
overall; however, the bonds in the Index generally are not insured. The Index
does not take into account charges, fees and other expenses. These factors
can contribute to the Index potentially outperforming the Fund. Further
information relating to Fund performance, including expense reimbursements,
if applicable, is contained in the Financial Highlights section of the
Prospectus and elsewhere in this report. Neither Fund shares nor the market
value of its portfolio securities are insured.
<TABLE>
<CAPTION>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS APRIL 30, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-93.5% AMOUNT VALUE
_______ _______
<S>
CALIFORNIA-12.8%
Bay Area Government Association, Tax Allocation Revenue, <C> <C>
California Redevelopment Agency 6%, 12/15/2024 (Insured; CGIC).......... $ 250,000 $ 250,660
Fairfield Public Financing Authority, Revenue (Fairfield Redevelopment
Projects)
5.25%, 8/1/2013 (Insured; CGIC)......................................... 3,500,000 3,289,720
Lancaster Redevelopment Agency, Tax Allocation, Refunding
(Lancaster Redevelopment Project) 5.80%, 8/1/2023 (Insured; MBIA)....... 2,000,000 1,939,920
San Bernadino County (Medical Center Financing Project)
5.50%, 8/1/2022 (Insured; MBIA)......................................... 10,000,000 9,373,500
Southern California Public Power Authority, Transmission Project Revenue,
Refunding
5%, 7/1/2022 (Insured; MBIA)............................................ 3,000,000 2,590,290
University of California, Revenue, Refunding (Multiple Purpose Projects)
5%, 9/1/2023 (Insured; AMBAC)........................................... 10,000,000 8,586,100
CONNECTICUT-2.5%
Connecticut Health & Educational Facilities Authority, Revenue
(Greenwich Hospital Issue) 5.80%, 7/1/2026 (Insured; AMBAC)............. 5,000,000 4,864,250
South Central Regional Water Authority, Water System Revenue
5.75%, 8/1/2012 (Insured; FGIC)......................................... 250,000 251,310
DELAWARE-.5%
Delaware Economic Development Authority, Gas Facilities Revenue
(Delmarva Power & Light) 7.30%, 7/1/2021 (Insured; FGIC)................ 1,000,000 1,091,500
FLORIDA-7.9%
Florida Division Bond Finance Department, General Services Revenues
(Department of Natural Resource-Preservation 2000)
5.80%, 7/1/2013 (Insured; FSA)........................................ 2,300,000 2,313,892
Florida Housing Finance Agency, Single Family Mortgage
6.65%, 7/1/2026 (Insured; MBIA)......................................... 950,000 968,439
Hillsboro County, Port District Special Revenue, Refunding (Tampa Port
Authority)
6%, 6/1/2020 (Insured; FSA)............................................. 2,000,000 1,973,560
Jacksonville Health Facilities Authority, HR
(Memorial Regional Rehabilitation Center Project)
6.625%, 5/1/2022 (Insured; MBIA)...................................... 3,000,000 3,153,750
Lee County:
Solid Waste System Revenue 7%, 10/1/2011 (Insured; MBIA)................ 1,420,000 1,535,915
Tourist Development, Tax Revenue, Refunding 5.625%, 10/1/2011 (Insured; FGIC) 250,000 251,075
Orange County, Sales Tax Revenue 5.375%, 1/1/2024 (Insured; FGIC)........... 5,975,000 5,553,045
Osceola County, COP, School Board 5.75%, 6/1/2014 (Insured; AMBAC).......... 250,000 246,260
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
ILLINOIS-9.7%
Carbondale, HR, Refunding (Southern Illinois Hospital Services)
6.875%, 3/1/2015 (Insured; MBIA)........................................ $ 1,000,000 $ 1,035,560
Chicago O'Hare International Airport, Special Facility Revenue (International
Terminal)
6.50%, 1/1/2018 (Insured; FGIC)......................................... 1,750,000 1,771,087
Illinois Regional Transportation Authority, Refunding 5.60%, 6/1/2025 (Insured; MBIA) 8,000,000 7,535,600
Metropolitan Pier and Exposition Authority, Dedicated State Tax Revenue
(McCormick Place Expansion Project) 6.50%, 6/15/2027 (Insured; FGIC).... 6,375,000 6,630,000
University of Illinois, Auxilliary Facilities System Revenue
5.60%, 10/1/2022 (Insured; MBIA)........................................ 3,000,000 2,827,050
KENTUCKY-4.5%
Louisville and Jefferson County Metropolitan Sewer District, Sewer and Drain
System
Revenue 5.20%, 5/15/2026 (Insured; FGIC)................................ 10,000,000 9,091,700
LOUISIANA-8.0%
Ernest N. Morial - New Orleans Exhibit Hall Authority, Special Tax Revenue
5.60%, 7/15/2025 (Insured; MBIA)........................................ 14,085,000 13,413,850
Louisiana Public Facilities Authority, HR (Our Lady of the Lake Regional
Medical Center) 5.90%, 12/3/2021 (Insured; FSA)......................... 3,000,000 2,887,590
MASSACHUSETTS-1.4%
Massachusetts Education Loan Authority, Education Loan Revenue:
7.60%, 1/1/2003 (Insured; MBIA)......................................... 810,000 879,295
7.65%, 1/1/2004 (Insured; MBIA)......................................... 935,000 1,012,885
Massachusetts Housing Finance Agency, Housing Revenue (Rental-Mortgage)
6.50%, 7/1/2025 (Insured; AMBAC)........................................ 1,000,000 1,016,560
MICHIGAN-2.6%
Detroit Water Supply System Revenue 5.50%, 7/1/2025 (Insured; MBIA)......... 4,000,000 3,780,840
Michigan Housing Development Authority, LOR (Greenwood Villa Project)
6.50%, 9/15/2007 (Insured; FSA)......................................... 1,500,000 1,587,210
MONTANA-1.2%
Forsyth, PCR, Refunding (Puget Sound, Power & Light Co.)
7.25%, 8/1/2021 (Insured; AMBAC)........................................ 2,250,000 2,453,017
NEVADA-1.8%
Reno, HR (Saint Mary's Hospital) 7.75%, 7/1/2015 (Insured; BIGI)
(Prerefunded 11/1/2000) (a)............................................. 1,425,000 1,575,238
Washoe County, Gas Facilities Revenue (Sierra Pacific Power Co. Project)
6.70%, 11/1/2032 (Insured; MBIA)........................................ 2,000,000 2,089,040
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
NEW JERSEY-10.6%
Mercer County Improvement Authority, Solid Waste Revenue, Refunding
6.70%, 4/1/2013 (Insured; FGIC)......................................... $ 5,000,000 $ 5,062,000
New Jersey Building Authority, Building Revenue, Refunding
5%, 6/15/2017 (Insured; MBIA)........................................... 2,700,000 2,422,035
New Jersey Economic Development Authority:
Health Systems Revenue (Clara Maass)5%, 7/1/2025 (Insured; FSA)......... 4,000,000 3,524,080
PCR (Public Service Electric & Gas Co.) 6.40%, 5/1/2032 (Insured; MBIA). 7,600,000 7,760,284
New Jersey Health Care Facilities Financing Authority, Revenue:
Refunding (Jersey Shore Medical Center) 6.25%, 7/1/2021 (Insured; AMBAC) 100,000 101,987
(Underwood Memorial Hospital) 5.70%, 7/1/2023 (Insured; AMBAC).......... 100,000 96,578
New Jersey Housing & Mortgage Finance Agency, Revenue:
Home Buyer:
6.20%, 10/1/2025 (Insured; MBIA)...................................... 2,250,000 2,246,828
6.375%, 10/1/2026 (Insured; MBIA)..................................... 270,000 271,836
Home Mortgage 9.125%, 4/1/2015 (Insured; MBIA).......................... 5,000 5,026
Salem County Industrial Pollution Control Financing Authority, Revenue,
Refunding
(Atlantic City Electric) 6.15%, 6/1/2029 (Insured; FSA)................. 100,000 101,988
NEW MEXICO-1.9%
Farmington, PCR, Refunding (Southern California Edison Co.)
5.875%, 6/1/2023 (Insured; MBIA)........................................ 4,000,000 3,930,600
NEW YORK-1.5%
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 3,046,590
NORTH CAROLINA-.8%
North Carolina Municipal Power Agency, Revenue, Refunding (No. 1 Catawba
Electric)
5.75%, 1/1/2020 (Insured; MBIA)......................................... 1,600,000 1,550,608
NORTH DAKOTA-1.9%
Mercer County, PCR, Refunding (Montana-Dakota Utilities Co. Project)
6.65%, 6/1/2022 (Insured; FGIC)......................................... 3,500,000 3,810,030
OREGON-.9%
Oregon, Health Sciences University Revenue 5.25%, 7/1/2025 (Insured; MBIA).. 2,000,000 1,821,180
PENNSYLVANIA-3.0%
Beaver County Industrial Development Authority, PCR, Refunding
(Ohio Edison Co./Mansfield) 7%, 6/1/2021 (Insured; FGIC)................ 3,000,000 3,271,290
Dauphin County General Authority, HR (Hapsco Western Pennsylvania Hospital
Project)
5.50%, 7/1/2023 (Insured; MBIA)......................................... 1,100,000 1,020,393
Philadelphia School District 5.65%, 7/1/2006 (Insured; MBIA)................ 1,700,000 1,752,751
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
RHODE ISLAND-2.2%
Rhode Island Housing & Mortgage Finance Corp., SFMR
9.30%, 7/1/2004 (Insured; FGIC)......................................... $ 20,000 $ 20,020
Rhode Island Port Authority & Economic Development Corp.,
Airport Revenue 6.625%, 7/1/2024 (Insured; FSA)......................... 4,250,000 4,395,605
SOUTH CAROLINA-.5%
Florence County, COP, Refunding (Law Enforcement Center Project)
6%, 3/1/2008 (Insured; AMBAC)........................................... 1,000,000 1,047,720
TEXAS-5.5%
Brazos River Authority, PCR, Refunding (Texas Utilities Electric Co. Project)
6.625%, 6/1/2022 (Insured; FGIC)........................................ 5,500,000 5,726,270
Brownsville Housing Finance Corp., SFMR (Mortgage-Multiple Originators &
Services)
9.625%, 12/1/2011 (Insured; FGIC)....................................... 815,000 839,866
Gregg County Health Facilities Development Corp., HR, Refunding
(Good Shepherd Medical Center Project) 5.50%, 10/1/2015 (Insured; AMBAC) 5,000,000 4,701,600
UTAH-2.0%
Murray City, HR (IHC Health Services, Inc.) 4.75%, 5/15/2020 (Insured; MBIA) 5,000,000 4,129,700
WASHINGTON-9.8%
King County, Sewer Revenue 6.125%, 1/1/2033 (Insured; MBIA)................. 5,000,000 5,094,200
Seattle Municipality, Metropolitan Seattle Sewer Revenue
6.25%, 1/1/2020 (Insured; MBIA)......................................... 3,730,000 3,823,586
Washington, MFMR 7.40%, 1/1/2030 (Insured; FSA)............................. 6,500,000 6,932,120
Yakima-Tieton Irrigation District, Revenue, Refunding 6.20%, 6/1/2019 (Insured; FSA) 4,000,000 4,067,760
_______
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $189,785,857)................... $190,394,239
=======
SHORT-TERM MUNICIPAL INVESTMENTS-6.5%
FLORIDA-1.9%
Dade County, Water and Sewer System Revenue, VRDN 4.10% (Insured; FGIC) (b). $ 3,800,000 $ 3,800,000
NEW JERSEY-2.2%
New Jersey Sports and Exposition Authority, VRDN
3.85% (LOC; Industrial Bank of Japan) (b,c)............................. 4,400,000 4,400,000
NEW YORK-2.4%
New York City Municipal Water Finance Authority,
Water and Sewer System Revenue, VRDN 4.10% (Insured; FGIC) (b).......... 5,000,000 5,000,000
_______
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $13,200,000)................... $ 13,200,000
=======
TOTAL INVESTMENTS-100.0% (cost $202,985,857)................................ $203,594,239
=======
</TABLE>
<TABLE>
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
LOC Letter of Credit
</TABLE>
<TABLE>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (D) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
_____ _____ ___________ ____________
<S> <C> <C> <C>
AAA Aaa AAA 93.5%
F-1, F-1+ VMIG, MIG1, P1 SP1, A1 6.5
_____
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) 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) Secured by letter of credit.
(d) Fitch currently provides creditworthiness information for a limited
number of investments.
(e) At April 30, 1996, 43.7% of the Fund's net assets are insured by
MBIA and 25.0% are insured by FGIC.
See notes to financial statements.
<TABLE>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1996
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $202,985,857)-see statement..................................... $203,594,239
Cash.................................................................... 1,307,181
Interest receivable..................................................... 3,671,457
Prepaid expenses........................................................ 34,833
_______
208,607,710
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $110,047
Due to Distributor...................................................... 3,621
Payable for Common Stock redeemed....................................... 15,059
Accrued expenses........................................................ 90,800 219,527
_____ ______
NET ASSETS.................................................................. $208,388,183
=======
REPRESENTED BY:
Paid-in capital......................................................... $211,864,117
Accumulated net realized (loss) on investments.......................... (4,084,316)
Accumulated net unrealized appreciation on investments-Note 3........... 608,382
_______
NET ASSETS at value applicable to 12,164,309 shares outstanding
(300 million shares of $.01 par value Common Stock authorized).......... $208,388,183
=======
NET ASSET VALUE, offering and redemption price per share
($208,388,183 / 12,164,309 shares)...................................... $17.13
=======
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED APRIL 30, 1996
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $13,595,425
EXPENSES:
Management fee-Note 2(a).............................................. $ 1,357,180
Shareholder servicing costs-Note 2(b)................................. 576,485
Professional fees..................................................... 61,350
Registration fees..................................................... 51,879
Directors' fees and expenses-Note 2(c)................................ 32,522
Prospectus and shareholders' reports-Note 2(b)........................ 25,641
Custodian fees........................................................ 24,796
Miscellaneous......................................................... 19,558
______
TOTAL EXPENSES.................................................. 2,149,411
Less-reduction in management fee due to undertaking-Note 2(a)......... 213,008
______
NET EXPENSES.................................................... 1,936,403
______
INVESTMENT INCOME-NET........................................... 11,659,022
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments-Note 3................................. $ 3,649,281
Net unrealized (depreciation) on investments............................ (3,943,459)
______
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (294,178)
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $11,364,844
=======
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED APRIL 30,
__________________________________
1995 1996
________ ________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 12,900,999 $ 11,659,022
Net realized gain (loss) on investments................................. (6,623,592) 3,649,281
Net unrealized appreciation (depreciation) on investments for the year.. 3,594,757 (3,943,459)
________ ________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 9,872,164 11,364,844
________ ________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... (12,872,821) (11,724,725)
________ ________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 258,893,824 347,829,321
Dividends reinvested.................................................... 8,373,130 7,587,757
Cost of shares redeemed................................................. (293,381,175) (367,066,927)
________ ________
(DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.............. (26,114,221) (11,649,849)
________ ________
TOTAL (DECREASE) IN NET ASSETS.................................... (29,114,878) (12,009,730)
NET ASSETS:
Beginning of year....................................................... 249,512,791 220,397,913
________ ________
End of year (including undistributed investment income-net;
$65,703 in 1995)...................................................... $ 220,397,913 $ 208,388,183
======== ========
SHARES SHARES
________ ________
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 15,155,340 19,661,606
Shares issued for dividends reinvested.................................. 490,282 429,419
Shares redeemed......................................................... (17,163,553) (20,702,049)
________ ________
NET (DECREASE) IN SHARES OUTSTANDING.................................. (1,517,931) (611,024)
======== ========
See notes to financial statements.
</TABLE>
<TABLE>
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: 1992 1993 1994 1995 1996
____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $17.77 $18.16 $19.23 $17.46 $17.25
____ ____ ____ ____ ____
INVESTMENT OPERATIONS:
Investment income-net........................ 1.10 1.06 1.00 .94 .91
Net realized and unrealized gain (loss)
on investments............................. .39 1.28 (1.06) (.21) (.11)
____ ____ ____ ____ ____
TOTAL FROM INVESTMENT OPERATIONS........... 1.49 2.34 (.06) .73 .80
____ ____ ____ ____ ____
DISTRIBUTIONS:
Dividends from investment income-net......... (1.10) (1.06) (1.00) (.94) (.92)
Dividends from net realized gain
on investments............................. - (.21) (.63) - -
Dividends in excess of net realized gain
on investments............................. - - (.08) - -
____ ____ ____ ____ ____
TOTAL DISTRIBUTIONS........................ (1.10) (1.27) (1.71) (.94) (.92)
____ ____ ____ ____ ____
Net asset value, end of year................. $18.16 $19.23 $17.46 $17.25 $17.13
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN.......................... 8.56% 13.35% (.74%) 4.36% 4.58%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .96% .94% .93% .94% .85%
Ratio of net investment income to
average net assets......................... 6.07% 5.69% 5.25% 5.49% 5.14%
Decrease reflected in above expense ratios
due to undertaking by the Manager.......... - - - - .09%
Portfolio Turnover Rate...................... 51.18% 80.72% 34.92% 41.19% 82.86%
Net Assets, end of year (000's Omitted)...... $240,612 $276,979 $249,513 $220,398 $208,388
See notes to financial statements.
</TABLE>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Insured Municipal Bond Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 ("Act") as a diversified open-end
management investment company. The Fund's investment objective is to provide
investors with as high a level of current income exempt from Federal income
tax as is consistent with the preservation of capital. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services,
Inc. (the "Distributor") acts as the distributor of the Fund's shares, which
are sold to the public without a sales load.
(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 $4,089,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to April 30, 1996. If not
applied, $2,972,000 of the carryover expires in fiscal 2003 and $1,117,000 of
the carryover expires in fiscal 2004.
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 value
of the Fund's average daily net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Fund's aggregate expenses, exclusive of taxes, brokerage, interest on
borrowings and extraordinary expenses, exceed 11/2% of the value of the
Fund's average 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 value
of the Funds' average daily net assets. The reduction in management fee,
pursuant to the undertaking, amounted to $213,008 for the year ended April
30, 1996.
The undertaking may be extended, modified or terminated by the Manager,
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 (a securities dealer, financial institution or other industry
professional) 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 relating 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. Both 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. Both 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
year ended April 30, 1996, $464,095 was charged to the Fund pursuant to the
Plan.
Effective December 1, 1995, the Fund compensates Dreyfus Transfer, Inc.,
a wholly-owned subsidiary of the Manager, under a transfer agency agreement
for providing personnel and facilities to perform transfer agency services
for the Fund. Such compensation amounted to $39,096 for the period from
December 1, 1995 through April 30, 1996.
(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,
excluding short-term securities, during the year ended April 30, 1996
amounted to $182,133,550 and $214,730,632, respectively.
At April 30, 1996, accumulated net unrealized appreciation on investments
was $608,382, consisting of $4,141,109 gross unrealized appreciation and
$3,532,727 gross unrealized depreciation.
At April 30, 1996, 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, 1996, 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, 1996 by correspondence with the custodian.
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, 1996, 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 and Young LLP signature logo]
May 29, 1996
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, 1996 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 1996 calendar year
on Form 1099-DIV which will be mailed by January 31, 1997.
[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
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 306AR964
[Dreyfus logo]
Insured
Municipal
Bond Fund, Inc.
Annual
Report
April 30, 1996
June 28, 1996
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Dreyfus Insured Municipal Bond Fund, Inc.
File No. 811-4237
Dear Sir/Madam:
Transmitted for filing is an EDGARized version of the Annual Report
of Dreyfus Insured Municipal Bond Fund, Inc. for the fiscal year ended
April 30, 1996.
Very truly yours,
/s/Jennifer A. Boyle
Jennifer A. Boyle
JB/
