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 six-month period ended October 31, 1997.
Your Fund produced a total return, including share price changes and dividend
income generated, of 5.88%,* and an annualized tax-free distribution rate per
share of 4.77%.** This compares with a 6.36% total return for the Lehman
Brothers Municipal Bond Index during the same period.***
The Economy
With the level of inflation as low as has been seen since 1964 and
unemployment still near a 23-year low, the economy continued its solid growth
over the reporting period. Gross Domestic Product (GDP) - the dollar total of
all goods and services produced in the United States - has grown in excess of
3% for the past four quarters, a level and consistency of gain unmatched
since 1984. This extraordinary economic performance has been fueled by huge
business investment in new plants and equipment as well as a renewed surge in
consumer spending over the summer. Consumers play a substantial role in
determining the course of the economy since their spending accounts for
two-thirds of all economic activity. Retail sales rose through the summer and
into September, although there was some sign of deceleration as the third
quarter progressed.
The big economic story continued to be the lack of inflation in an
economy now in its seventh year of expansion. This remarkable price
stability, at a time in the business cycle when inflationary pressures would
usually be apparent, has enabled the Federal Reserve Board (the "Fed") to
refrain from tightening monetary policy. The Federal Open Market Committee
(FOMC), the policy-making arm of the Fed, has raised interest rates just once
in over two years, a period roughly coinciding with the surge of growth in
the economy. The last increase in short-term interest rates came on March 25,
1997 when the FOMC increased the Federal Funds rate by a modest one-quarter
of a percentage point to 5.50%. (The Federal Funds rate is the rate of
interest that banks charge one another for overnight loans.)
Of course, the recent financial market turbulence arising from currency
devaluations in some of the economically weaker Southeast Asian countries has
added a cautionary note to any Fed monetary actions that might further roil
investment markets. The Southeast Asian economies have been cooling or in
outright recession for some time and represent a large share of the global
economy and the U.S. import/export market. The recent crisis has boosted the
value of the U.S. dollar and could further dampen the demand for U.S. exports
to this region. This bodes well for continued low inflation in the U.S. and
weakens the argument that we are on the brink of price acceleration.
In fact, inflation remains in check. The Implicit Price Deflator, an
indicator of inflation that measures the prices of all goods and services in
the U.S., has risen at an annual rate of less than 2% for the past two
quarters. This favorable trend in prices has been mirrored by both the
Consumer Price and Producer Price Indices. The Labor Department's Employment
Cost Index, a broad measure of changes in wages and benefits, has indicated
relatively modest increases in labor costs. Still, the labor market remains
tight, with the unemployment rate at a level unmatched in 23 years.
Whether the economy will slow without further monetary restraint by the
Fed remains an open question. Industrial production has been strong and
operating rates, an indicator of possible future price pressures, have edged
to their highest level in two years. Of paramount concern to Fed Chairman
Alan Greenspan is the possibility of continuing economic growth so strong
that the unemployment rate is driven even lower, and a subsequent
corresponding upsurge in wage rates reignites inflation. The performance of
the economy over the coming months appears crucial in determining whether the
Fed will actively restrain the economy. We remain alert to changes in
economic trends that would increase the risk of rising inflation and,
consequently, the prospect of higher interest rates.
Market Environment
Against the backdrop of generally favorable fundamental news on the
performance of the nation's economy and relatively subdued inflation reports,
the fixed income markets enjoyed a strong performance during your Fund's most
recent six-month reporting period. While early concerns over mounting
inflationary pressures did send interest rates to their highest levels of the
year at the start of this period, there quickly emerged a school of thought
that assumes the evolution of a "new paradigm" of economic growth. Proponents
of this concept hold to the notion that the economy could operate at or near
full capacity, with low levels of unemployment, without the commensurate
increase in the rate of inflation we have come to expect from past
experiences due to the combined forces of technological advances which have
significantly increased the productivity of the nation's labor force and
global competition emanating from the world's emerging economies. As this
concept gathered a following among market participants, bond prices rose and
yields declined. In his Humphrey Hawkins testimony before Congress in July,
however, Fed Chairman Alan Greenspan called to question this concept when
compared to the weight of evidence posed by recent economic history. As a resu
lt of his comments, bond prices sold off sharply in early August as market
participants returned a yield premium to valuations in anticipation of a
shift to a less accommodative stance in monetary policy.
The subsequent rise in interest rates proved to be relatively muted,
however, as attention soon shifted from domestic economic affairs to the
rolling series of crises sweeping the emerging markets of Southeast Asia,
which culminated in the formal devaluation of the currencies of Thailand,
Malaysia and Indonesia. Concerned over the potentially deflationary impact
these devaluations would have on prices around the globe, investors began to
accumulate fixed-income securities as an alternative to the resulting
volatility of the equity markets. As it became apparent that larger, more
established Asian economies like those of South Korea and Japan were not
immune to the troubles sweeping the region, the scope of the problem expanded
and the demand for the perceived "safe haven" of U.S. fixed-income securities
pushed yields to their lowest levels of the year.
While buoyed by the same factors throughout the most recent period,
municipal bonds underperformed their taxable counterparts on a relative
basis. The reason for this was that during the early strength of the markets,
municipals were supported by a formidable supply/demand dynamic which pushed
tax-exempt yields to a level which, when viewed as a percentage of taxable
yields, were relatively expensive by historical standards. Consequently, as
taxable yields declined over the period, tax-exempt yields moved in a similar
though more restrained fashion. This relative underperformance during the
period now places municipal bonds as inexpensive versus taxable alternatives,
and as such, poised to outperform in the months to come.
Portfolio Overview
In managing the Fund in an environment such as this, a decidedly
constructive posture was maintained throughout. Cash reserve positions were
drawn only to levels necessary to fulfill portfolio liquidity requirements.
Assets were directed toward those insured securities offering both generous
levels of tax-free income and the potential for significant principal
appreciation as yields declined. In this way, portfolio duration was extended
to make it more sensitive to a declining interest rate environment.
Throughout this process we continued our efforts to enhance the liquidity and
performance characteristics of the Fund by extending the optional redemption
provisions and improving the underlying creditworthiness of its holdings.
We appreciate your investment in the Dreyfus Insured Municipal Bond Fund,
and we want to assure you that we are, at all times, working in the Fund's
best interest.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
November 18, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
** Distribution rate per share is based upon dividends per share paid from
net investment income during the period (annualized), divided by the net
asset value per share at the end of the period. Some income may be subject to
the Federal Alternative Minimum Tax (AMT) for certain shareholders.
***SOURCE: LEHMAN BROTHERS: - 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. However, the bonds in
the Index generally are not insured.
<TABLE>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS OCTOBER 31, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments-99.4% Amount Value
_____________ _____________
<S> <C> <C>
Alabama-1.1%
Florence, GO 5.75%, 9/1/2015 (Insured; MBIA)................................ $ 2,000,000 $ 2,078,400
California-9.1%
Contra Costa County, COP, Refunding (Merrithew Memorial Hospital Project)
5.375%, 11/1/2017 (Insured; MBIA)......................................... 2,435,000 2,455,381
Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue
6%, 7/1/2020 (Insured; MBIA).............................................. 3,865,000 4,100,185
Sacramento Municipal Utility District, Electric Revenue, Refunding
5.125%, 7/1/2022 (Insured; MBIA).......................................... 2,000,000 1,954,680
San Francisco City and County Airports Commission, International Airport
Revenue
6.10%, 5/1/2025 (Insured; FGIC)........................................... 8,240,000 8,737,696
Colorado-3.5%
E-470 Public Highway Authority, Revenue, Refunding
Zero Coupon, 9/1/2016 (Insured; MBIA)..................................... 6,550,000 2,423,304
Goldsmith Metropolitan District, Refunding 6.125%, 12/1/2012 (Insured; MBIA) 4,000,000 4,217,920
Connecticut-.6%
Connecticut Health and Educational Facilities Authority, Revenue (Noble
Horizon Nursing Home)
6%, 11/1/2022 (Insured; AMBAC)........................................... . 1,000,000 1,046,490
Delaware-3.4%
Delaware Economic Development Authority, Revenue:
Gas Facilities (Delmarva Power & Light) 7.30%, 7/1/2021 (Insured; FGIC)... 1,000,000 1,099,140
Water (United Water of Delaware Inc., Project) 6.20%, 6/1/2005 (Insured; AMBAC) 5,000,000 5,330,600
District of Columbia-2.3%
District of Columbia, Revenue, Refunding (Howard University)
5.75%, 10/1/2013 (Insured; MBIA).......................................... 4,130,000 4,306,723
Florida-2.4%
Dade County, Water and Sewer System Revenue
5.25%, 10/1/2021 (Insured; FGIC).......................................... 2,000,000 1,981,080
Florida Housing Finance Agency, SFMR, Refunding
6.65%, 7/1/2026 (Insured; MBIA)........................................... 855,000 914,081
Lee County, Solid Waste System Revenue 7%, 10/1/2011 (Insured; MBIA)........ 1,420,000 1,555,454
Georgia-2.4%
Albany, Sewer System Revenue, Refunding 5.50%, 7/1/2016 (Insured; MBIA)..... 2,500,000 2,561,500
Georgia Municipal Electric Authority, Revenue, Refunding (Project One)
5%, 1/1/2021 (Insured; MBIA).............................................. 2,000,000 1,928,100
Illinois-5.2%
Carbondale, HR, Refunding (Southern Illinois Hospital Services)
6.875%, 3/1/2015 (Insured; MBIA).......................................... 1,000,000 1,022,160
Chicago O'Hare International Airport, Special Facility Revenue, Refunding
(International Terminal)
6.50%, 1/1/2018 (Insured; FGIC)........................................... 1,750,000 1,815,117
</TABLE>
<TABLE>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
_____________ _____________
<S> <C> <C>
Illinois (continued)
Metropolitan Pier and Exposition Authority, Dedicated State Tax Revenue
(McCormick Place Expansion Project) 6.50%, 6/15/2027 (Insured; FGIC)...... $ 6,375,000 $ 7,047,307
Louisiana-.9%
Louisiana Public Facilities Authority, HR (Our Lady of the Lake Regional
Medical Center) 5.90%, 12/3/2021 (Insured; FSA)........................... 1,700,000 1,742,687
Maryland-1.6%
Baltimore, Revenue, Refunding (Water Project) 5.80%, 7/1/2015 (Insured; FGIC) 2,800,000 2,947,756
Massachusetts-3.7%
Massachusetts Education Loan Authority, Education Loan Revenue:
7.60%, 1/1/2003 (Insured; MBIA)........................................... 710,000 754,709
7.65%, 1/1/2004 (Insured; MBIA)........................................... 815,000 865,212
Massachusetts Housing Finance Agency, Housing Revenue (Rental-Mortgage)
6.50%, 7/1/2025 (Insured; AMBAC).......................................... 1,000,000 1,066,380
Massachusetts Port Authority, Special Facilities Revenue (US Air Project)
5.75%, 9/1/2016 (Insured; MBIA)........................................... 1,000,000 1,032,480
Massachusetts Turnpike Authority, Metropolitan Highway System Revenue
5%, 1/1/2037 (Insured; MBIA).............................................. 3,500,000 3,305,190
Michigan-2.9%
Kalamazoo Hospital Finance Authority, Hospital Facilities Revenue (Borgess
Medical Center)
5.625%, 6/1/2014 (Insured; AMBAC)......................................... 3,700,000 3,814,404
Michigan Housing Development Authority, LOR (Greenwood Villa Project)
6.50%, 9/15/2007 (Insured; FSA)........................................... 1,500,000 1,615,875
Missouri-4.4%
Kansas City Municipal Assistance Corp., Leasehold Revenue, Refunding (Roe
Bartle)
5.125%, 4/15/2015 (Insured; MBIA)......................................... 1,000,000 986,700
Saint Louis, Airport Revenue (Lambert-Saint Louis International Airport)
5.125%, 7/1/2022 (Insured; FGIC).......................................... 5,000,000 4,893,450
Sikeston, Electric Revenue, Refunding 5%, 6/1/2022 (Insured; MBIA).......... 2,500,000 2,400,800
Montana-1.3%
Forsyth, PCR, Refunding (Puget Sound, Power & Light Co.)
7.25%, 8/1/2021 (Insured; AMBAC).......................................... 2,250,000 2,472,930
Nevada-1.9%
Reno, HR (Saint Mary's Hospital) 7.75%, 7/1/2015 (Insured; BIGI)
(Prerefunded 11/1/2000) (a)............................................... 1,345,000 1,471,376
Washoe County, Gas Facilities Revenue (Sierra Pacific Power Co. Project)
6.70%, 11/1/2032 (Insured; MBIA).......................................... 2,000,000 2,186,540
New Jersey-5.5%
New Jersey Economic Development Authority, PCR (Public Service Electric & Gas Co.)
6.40%, 5/1/2032 (Insured; MBIA)........................................... 7,600,000 8,232,776
</TABLE>
<TABLE>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
_____________ _____________
<S> <C> <C>
New Jersey (continued)
New Jersey Health Care Facilities Financing Authority, Revenue, Refunding
(Jersey Shore Medical Center) 6.25%, 7/1/2021 (Insured; AMBAC)............ $ 100,000 $ 108,029
New Jersey Housing & Mortgage Finance Agency, Revenue:
Home Buyer 6.20%, 10/1/2025 (Insured; MBIA)............................... 1,995,000 2,074,341
Home Mortgage 9.125%, 4/1/2015 (Insured; MBIA)............................ 5,000 5,012
New York-13.0%
Albany Airport Authority, Airport Revenue 5.375%, 12/15/2017 (Insured; FSA). 1,250,000 1,251,025
New York State Dormitory Authority, Revenue:
(Beth Israel Medical Center) 6%, 11/1/2015 (Insured; MBIA)................ 8,395,000 8,893,411
(Mount Sinai Medical School) 5.15%, 7/1/2024 (Insured; MBIA).............. 2,500,000 2,457,100
Refunding (Siena College) 5.70%, 7/1/2017 (Insured; MBIA)................. 3,585,000 3,729,834
New York State Energy, Research and Development Authority, Facilities Revenue
(Con Edison Co.-New York, Inc.) 6.375%, 12/1/2027 (Insured; MBIA)......... 3,000,000 3,188,730
New York State Medical Care Facilities Finance Agency, Revenue (Long-Term
Healthcare)
6.50%, 11/1/2015 (Insured; FSA)........................................... 4,655,000 5,115,845
North Dakota-2.0%
Mercer County, PCR, Refunding (Montana-Dakota Utilities Co. Project)
6.65%, 6/1/2022 (Insured; FGIC)........................................... 3,500,000 3,834,880
Ohio-1.3%
Cleveland, Public Power System Revenue, Refunding (First Mortgage)
5%, 11/15/2020 (Insured; MBIA)............................................ 2,500,000 2,413,725
Pennsylvania-1.7%
Beaver County Industrial Development Authority, PCR, Refunding
(Ohio Edison Co./Mansfield) 7%, 6/1/2021 (Insured; FGIC).................. 3,000,000 3,278,880
Rhode Island-2.5%
Rhode Island Housing & Mortgage Finance Corp., SFMR
9.30%, 7/1/2004 (Insured; FGIC)........................................... 20,000 20,024
Rhode Island Port Authority & Economic Development Corp.,
Airport Revenue 6.625%, 7/1/2024 (Insured; FSA)........................... 4,250,000 4,661,400
South Carolina-2.9%
Spartanburg, Waterworks Revenue, Refunding 5%, 6/1/2022 (Insured; FGIC)..... 5,750,000 5,521,840
Texas-9.1%
Brazos River Authority, PCR, Refunding (Texas Utilities Electric Co. Project)
6.625%, 6/1/2022 (Insured; FGIC).......................................... 5,500,000 5,966,015
Brownsville Housing Finance Corp., SFMR (Mortgage-Multiple Originators &
Servicers)
9.625%, 12/1/2011 (Insured; FGIC)......................................... 815,000 832,034
Harris County, Toll Road Revenue, Refunding 5%, 8/15/2024 (Insured; MBIA)... 1,000,000 958,640
Houston, Water and Sewer System Revenue, Refunding 5.50%, 12/1/2016 (Insured; FGIC) 3,500,000 3,567,970
South Texas Community College District, GO 5.75%, 8/15/2015 (Insured; AMBAC) 3,810,000 3,965,257
</TABLE>
<TABLE>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
_____________ _____________
<S> <C> <C>
Texas (continued)
Tarrant County Health Facilities Development Corp., Health System Revenue
(Health Resources System) 5%, 2/15/2026 (Insured; MBIA)................... $ 2,000,000 $ 1,887,260
Virginia-.5%
Virginia Beach Development Authority, Hospital Facility Revenue
(Virginia Beach General Hospital Project) 5.125%, 2/15/2018 (Insured; AMBAC) 1,000,000 978,320
Washington-11.6%
King County, Sewer Revenue 6.125%, 1/1/2033 (Insured; MBIA)................. 5,000,000 5,301,150
Washington, MFMR :
(Gilman Meadows Project) 7.40%, 1/1/2030 (Insured; FSA)................... 3,000,000 3,298,530
(Mallard Cove Project 1) 7.40%, 1/1/2030 (Insured; FSA)................... 800,000 879,608
(Mallard Cove Project 2) 7.40%, 1/1/2030 (Insured; FSA)................... 2,700,000 2,968,677
Washington, Public Power Supply System (Nuclear Project No. 1)
5.75%, 7/1/2010 (Insured; MBIA)........................................... 5,000,000 5,302,500
Yakima-Tieton Irrigation District, Revenue, Refunding 6.20%, 6/1/2019 (Insured; FSA) 4,000,000 4,279,720
West Virginia-1.6%
West Virginia, GO 6.50%, 11/1/2026 (Insured; FGIC).......................... 2,600,000 2,962,830
Wisconsin-1.0%
Wisconsin Health and Educational Facilities Authority, Revenue, Refunding
(Aurora Health Care, Inc.) 5.25%, 8/15/2027 (Insured; MBIA)............... 2,000,000 1,932,660
_____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $178,369,151)................... $187,999,830
=============
Short-Term Municipal Investments-.6%
Maryland-.3%
Northeast Waste Disposal Authority, RRR, Refunding (Harford County Resources)
VRDN
3.50% (Insured; AMBAC) (b)................................................ $ 500,000 $ 500,000
Pennsylvania-.3%
Philadelphia Regional Port Authority, LR, Refunding, VRDN
3.70% (Insured; MBIA) (b)................................................. 700,000 700,000
_____________
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $1,200,000).................... $ 1,200,000
=============
TOTAL INVESTMENTS-100.0% (cost $179,569,151)................................ $189,199,830
=============
</TABLE>
<TABLE>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
Summary of Abbreviations
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue
BIGI Bond Investors Guaranty Insurance MBIA Municipal Bond Investors Assurance
COP Certificate of Participation Insurance Corporation
FGIC Financial Guaranty Insurance Company MFMR Multi-Family Mortgage Revenue
FSA Financial Security Assurance PCR Pollution Control Revenue
GO General Obligation RRR Resources Recovery Revenue
HR Hospital Revenue SFMR Single Family Mortgage Revenue
LOR Limited Obligation Revenue VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
Standard
Fitch (c) or Moody's or & Poor's Percentage of Value
_______ ________ _________ __________________
AAA Aaa AAA 99.7%
F-1,F-1+ VMIG1,MIG1,P1 SP1,A1 .3
_______
100.0%
=======
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) Fitch currently provides creditworthiness information for a limited
number of investments.
(d) At October 31, 1997, 44.7% of the Fund's net assets are insured by
MBIA and 27.9% are insured by FGIC.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1997 (UNAUDITED)
Cost Value
______________ ____________
<S> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $179,569,151 $189,199,830
Cash....................................... 4,222,200
Interest receivable........................ 3,868,901
Prepaid expenses........................... 20,917
_____________
197,311,848
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 112,681
Due to Distributor......................... 2,797
Payable for shares of Common Stock redeemed 18,838
Accrued expenses........................... 47,708
_____________
182,024
_____________
NET ASSETS.................................................................. $197,129,824
=============
REPRESENTED BY: Paid-in capital............................ $191,140,400
Accumulated net realized gain (loss) on investments (3,641,255)
Accumulated net unrealized appreciation (depreciation)
....................... on investments-Note 4 9,630,679
_____________
NET ASSETS.................................................................. $197,129,824
=============
SHARES OUTSTANDING
(300 million shares of $.01 par value Common Stock authorized).............. 11,021,871
NET ASSET VALUE, offering and redemption price per share-Note 3(d).......... $17.89
=======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1997 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income............................ $ 5,634,325
EXPENSES: Management fee-Note 3(a)................... $ 596,561
Shareholder servicing costs-Note 3(b)...... 259,716
Professional fees.......................... 36,165
Registration fees.......................... 23,024
Directors' fees and expenses-Note 3(c)..... 15,445
Custodian fees............................. 10,294
Prospectus and shareholders' reports-Note 3(b) 5,194
Loan commitment fees-Note 2................ 868
Miscellaneous.............................. 7,340
____________
Total Expenses....................... 954,607
Less-reduction in management fee due to
undertakings-Note 3(a)................. (109,463)
____________
Net Expenses......................... 845,144
____________
INVESTMENT INCOME-NET....................................................... 4,789,181
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments.... $ 1,448,658
Net unrealized appreciation (depreciation) on investments 5,117,513
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 6,566,171
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $11,355,352
============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
October 31, 1997 Year Ended
(Unaudited) April 30, 1997
_________________ _____________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................. $ 4,789,181 $ 10,391,823
Net realized gain (loss) on investments............................... 1,448,658 (996,175)
Net unrealized appreciation (depreciation) on investments............. 5,117,513 3,904,784
______________ ______________
Net Increase (Decrease) in Net Assets Resulting from Operations..... 11,355,352 13,300,432
______________ ______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................. (4,789,181) (10,391,823)
Net realized gain on investments...................................... ---- (9,422)
______________ ______________
Total Dividends..................................................... (4,789,181) (10,401,245)
______________ ______________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold......................................... 42,166,107 200,295,864
Dividends reinvested.................................................. 3,126,178 6,734,884
Cost of shares redeemed............................................... (47,200,241) (225,846,509)
______________ ______________
Increase (Decrease) in Net Assets from Capital Stock Transactions... (1,907,956) (18,815,761)
______________ ______________
Total Increase (Decrease) in Net Assets........................... 4,658,215 (15,916,574)
NET ASSETS:
Beginning of Period................................................... 192,471,609 208,388,183
______________ ______________
End of Period......................................................... $ 197,129,824 $ 192,471,609
============== ==============
Shares Shares
______________ ______________
CAPITAL SHARE TRANSACTIONS:
Shares sold........................................................... 2,391,447 11,560,758
Shares issued for dividends reinvested................................ 175,990 386,910
Shares redeemed....................................................... (2,664,159) (12,993,384)
______________ ______________
Net Increase (Decrease) in Shares Outstanding....................... (96,722) (1,045,716)
============== ==============
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 period indicated. This
information has been derived from the Fund's financial statements.
Six Months Ended
October 31, 1997 Year Ended April 30,
______________________________________________________
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993
__________ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $17.31 $17.13 $17.25 $17.46 $19.23 $18.16
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income-net................. .43 .87 .91 .94 1.00 1.06
Net realized and unrealized gain (loss)
on investments...................... .58 .18 (.11) (.21) (1.06) 1.28
______ ______ ______ ______ ______ ______
Total from Investment Operations...... 1.01 1.05 .80 .73 (.06) 2.34
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income-net.. (.43) (.87) (.92) (.94) (1.00) (1.06)
Dividends from net realized gain on investments .- .- .- .- (.63) (.21)
Dividends in excess of net realized gain
on investments...................... .- .- .- .- (.08) .-
______ ______ ______ ______ ______ ______
Total Distributions................... (.43) (.87) (.92) (.94) (1.71) (1.27)
______ ______ ______ ______ ______ ______
Net asset value, end of period........ $17.89 $17.31 $17.13 $17.25 $17.46 $19.23
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN................... 11.66%(1) 6.24% 4.58% 4.36% (.74%) 13.35%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .85%(1) .80% .85% .94% .93% .94%
Ratio of net investment income
to average net assets............... 4.82%(1) 5.03% 5.14% 5.49% 5.25% 5.69%
Decrease reflected in above expense ratios
due to undertakings by the Manager.. .11%(1) .17% .09% .- .- .-
Portfolio Turnover Rate............... 28.20%(2) 93.39% 82.86% 41.19% 34.92% 80.72%
Net Assets, end of period (000's Omitted) $197,130 $192,472 $208,388 $220,398 $249,513 $276,979
(1) Annualized.
(2) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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") is the distributor of the Fund's shares, which are
sold to the public without a sales load.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities 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 $4,917,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to April 30, 1997. The
carryover does not include net realized securities losses from November 1,
1996 through April 30, 1997 which are treated for Federal tax purposes, as
arising in fiscal 1998. If not applied, $2,972,000 of the carryover expires
in fiscal 2003, $1,117,000 expires in fiscal 2004 and $828,000 expires in
fiscal 2005.
NOTE 2-BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion
of the Facility. Interest is charged to the Fund at rates
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
based on prevailing market rates in effect at the time of borrowings. For the
period ended October 31, 1997, the Fund did not borrow under the Facility.
NOTE 3-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 that if in any full year the aggregate expenses of the Fund,
exclusive of taxes, brokerage, commitment fees, interest on borrowings and
extraordinary expenses, exceed 11\2% of the value of the Fund's average net
assets, the Fund may deduct from the payments to be made to the Manager, or
the Manager will bear such excess. However, the Manager had undertaken from
May 1, 1997 through May 6, 1997 to reduce the management fee paid by the
Fund, to the extent that the Fund's aggregate annual expenses (exclusive of
certain expenses as described above) exceeded specified annual percentages of
the Fund's average daily net assets, and thereafter, through October 31, 1997
to reduce the management fee paid by the Fund, to the extent that the Fund's
aggregate annual expenses (exclusive of certain expenses as described above)
exceed an annual rate of .85 of 1% of the value of the Fund's average daily
net assets. The reduction in management fee, pursuant to the undertakings,
amounted to $109,463 during the period ended October 31, 1997.
(b) Under the Service Plan (the "Plan") adopted 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 value of the Fund's average daily net assets for any full fiscal year.
During the period ended October 31, 1997, the Fund was charged $199,772
pursuant to the Plan.
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. During the
period ended October 31, 1997, the Fund was charged $42,394 pursuant to the
transfer agency agreement.
(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.
(d) A .10% redemption fee is charged and retained by the Fund on certain
redemptions of Fund shares (including redemption through the use of the Fund
Exchanges service) where the shares being redeemed were issued subsequent to
a specified effective date and the redemption or exchange occurs less than
fifteen days following the date of issuance. During the period ended October
31, 1997, redemption fees amounted to $26,664.
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 4-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended October 31, 1997
amounted to $55,356,100 and $52,941,499, respectively.
At October 31, 1997, accumulated net unrealized appreciation on
investments was $9,630,679, consisting of $9,643,534 gross unrealized
appreciation and $12,855 gross unrealized depreciation.
At October 31, 1997, 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).
Registration Mark
Registration Mark
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.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 306SA9710
Insured
Municipal
Bond Fund, Inc.
Semi-Annual
Report
October 31, 1997
