N-CSR 1 form.htm ANNUAL REPORT form
UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549 
 
 
FORM N-CSR 
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT 
INVESTMENT COMPANIES 
 
Investment Company Act file number 811-4237 
 
Dreyfus Insured Municipal Bond Fund, Inc. 
(Exact name of Registrant as specified in charter) 
 
 
c/o The Dreyfus Corporation 
200 Park Avenue 
New York, New York 10166 
(Address of principal executive offices) (Zip code) 
 
Mark N. Jacobs, Esq. 
200 Park Avenue 
New York, New York 10166 
(Name and address of agent for service) 
 
Registrant's telephone number, including area code: (212) 922-6000 

Date of fiscal year end:    4/30 
Date of reporting period:    4/30/07 

        FORM N-CSR 
Item 1.    Reports to Stockholders.     

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The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views.These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

    Contents 
 
    THE FUND 
2    A Letter from the CEO 
3    Discussion of Fund Performance 
4    Fund Performance 
5    Understanding Your Fund’s Expenses 
5    Comparing Your Fund’s Expenses 
    With Those of Other Funds 
6    Statement of Investments 
14    Statement of Assets and Liabilities 
15    Statement of Operations 
16    Statement of Changes in Net Assets 
17    Financial Highlights 
18    Notes to Financial Statements 
24    Report of Independent Registered 
    Public Accounting Firm 
25    Important Tax Information 
26    Information About the Review and Approval 
    of the Fund’s Management Agreement 
30    Board Members Information 
33    Officers of the Fund 
 
    FOR MORE INFORMATION 
    Back Cover 

The Fund

Dreyfus Insured Municipal

Bond Fund, Inc.

A LETTER FROM THE CEO

Dear Shareholder:

We present to you this last report for Dreyfus Insured Municipal Bond Fund, Inc., covering the 12-month period from May 1, 2006, through April 30, 2007.

The U.S. economy moderated throughout the reporting period as cooling housing markets took their toll on consumer and business spending. Yet, labor markets remained quite strong, and key measures of inflation stayed stubbornly above the Federal Reserve’s stated “comfort zone.” Dreyfus’ chief economist believes that these seemingly conflicting signals may be the result of a lag between the current downturn in housing activity and its likely dampening effect on housing-related employment. In his view, inflationary pressures may moderate over the coming months in an environment of modestly higher unemployment rates and sub-par economic growth.

The likely implications of this economic outlook include a long pause in Fed policy before an eventual easing of short-term interest rates, a modest drop in 10-year Treasury bond yields, decelerating corporate earnings, high levels of mergers-and-acquisitions activity and a probable continuation of the ongoing shift in investor sentiment toward higher quality stocks. We expect these developments to produce both challenges and opportunities in the municipal fixed-income markets, and your financial advisor can help determine the appropriate tax-advantaged and asset allocation strategy for you.

Thank you for your continued confidence and support.

2

DISCUSSION OF FUND PERFORMANCE

Paul Disdier, Senior Portfolio Manager

How did Dreyfus Insured Municipal Bond Fund perform relative to its benchmark?

For the 12-month period ended April 30, 2007, the fund achieved a total return of 5.58% .1 In comparison, the Lehman Brothers Municipal Bond Index, the fund’s benchmark, achieved a total return of 5.78% for the same period.2

Despite occasional bouts of volatility, municipal bonds fared relatively well as moderating economic growth, stabilizing short-term interest rates and receding inflation concerns helped to support investor sentiment. The fund slightly underperformed the benchmark, which we attribute in part to the fund’s defensive investment posture later in the reporting period.

On June 11, 2007, the fund completed a Plan of Reorganization, following the affirmative vote of fund shareholders, which provided for the tax-free exchange of the fund’s assets in exchange for shares of Dreyfus Municipal Bond Fund.The fund has terminated its operations.

June 12, 2007

1    Total return includes reinvestment of dividends and any capital gains paid. Past performance is no 
    guarantee of future results. Share price, yield and investment return fluctuate such that upon 
    redemption, fund shares may be worth more or less than their original cost. Income may be subject 
    to state and local taxes, and some income may be subject to the federal alternative minimum tax 
    (AMT) for certain investors. Capital gains, if any, are fully taxable. 
2    SOURCE: LIPPER INC. — Reflects reinvestment of dividends and, where applicable, capital 
    gain distributions.The Lehman Brothers Municipal Bond Index is a widely accepted, 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. Index returns do not reflect the fees 
    and expenses associated with operating a mutual fund. 

The Fund 3

FUND PERFORMANCE

Average Annual Total Returns    as of 4/30/07             
        1 Year    5 Years    10 Years 
Fund        5.58%    4.44%    4.99% 

† Source: Lipper Inc. 
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not 
reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 
The above graph compares a $10,000 investment made in Dreyfus Insured Municipal Bond Fund, Inc. on 4/30/97 to 
a $10,000 investment made in the Lehman Brothers Municipal Bond Index (the “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 issuers of municipal securities.The fund’s performance shown in the line graph takes into account all applicable 
fees and expenses.The Index, unlike the fund, 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 are generally not insured.The Index also does not take into 
account charges, fees and other expenses. All of these factors can contribute to the Index potentially outperforming or 
underperforming 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. 

4

UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Insured Municipal Bond Fund, Inc. from November 1, 2006 to April 30, 2007. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment assuming actual returns for the six months ended April 30, 2007

Expenses paid per $1,000 †    $ 4.19 
Ending value (after expenses)    $1,012.90 

COMPARING YOUR FUND’S EXPENSES WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment assuming a hypothetical 5% annualized return for the six months ended April 30, 2007

Expenses paid per $1,000 †    $ 4.21 
Ending value (after expenses)    $1,020.63 

† Expenses are equal to the fund’s annualized expense ratio of .84%; multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

The Fund 5

STATEMENT OF INVESTMENTS 
April 30, 2007 

Long-Term Municipal    Coupon    Maturity    Principal     
Investments—94.5%    Rate (%)    Date    Amount ($)    Value ($) 
Alabama—.9%                 
Auburn University,                 
General Fee Revenue                 
(Insured; MBIA)    5.75    6/1/17    1,000,000    1,076,490 
Alaska—4.3%                 
Alaska International Airports                 
System, Revenue                 
(Insured; AMBAC)    5.75    10/1/12    4,500,000 a    4,952,565 
California—5.1%                 
Chabot-Las Positas Community                 
College District, GO                 
(Insured; AMBAC)    0.00    8/1/26    6,085,000    2,443,249 
Chabot-Las Positas Community                 
College District, GO                 
(Insured; AMBAC)    0.00    8/1/42    10,655,000    1,863,986 
Glendora Unified School District,                 
GO (Insured; MBIA)    5.25    8/1/26    1,400,000    1,527,918 
Colorado—3.6%                 
Douglas County School District,                 
Number Re1, GO (Insured; FGIC)    5.75    12/15/17    1,000,000    1,130,110 
University of Colorado Regents,                 
University Enterprise Revenue                 
(Insured; MBIA)    5.00    6/1/23    2,805,000    3,020,143 
Connecticut—1.9%                 
Connecticut,                 
Special Tax Obligation                 
(Transportation Infrastructure                 
Purposes) (Insured; FGIC)    5.00    1/1/23    2,000,000    2,114,160 
Delaware—6.3%                 
Delaware Economic Development                 
Authority, Water Revenue                 
(United Water Delaware Inc.                 
Project) (Insured; AMBAC)    6.20    6/1/25    5,000,000    5,009,200 
Delaware River and Bay Authority,                 
Revenue (Insured; MBIA)    5.25    1/1/13    2,015,000 a    2,171,707 
Florida—2.4%                 
Tampa Bay Water,                 
Utility System Improvement                 
Revenue (Insured; FGIC)    5.25    10/1/19    2,575,000    2,727,105 

  6
Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Idaho—1.8%                 
Boise State University,                 
Student Union and Housing                 
System Revenue (Insured; FGIC)    5.38    4/1/12    1,915,000 a    2,059,334 
Boise State University,                 
Student Union and Housing                 
System Revenue (Insured; FGIC)    5.38    4/1/22    40,000    42,654 
Illinois—2.6%                 
Chicago,                 
GO (Insured; FGIC)    5.50    1/1/40    325,000    342,820 
Chicago O’Hare International                 
Airport, General Airport Third                 
Lien Revenue (Insured; MBIA)    5.25    1/1/27    2,500,000    2,642,225 
Indiana—3.2%                 
Indiana Educational Facilities                 
Authority, Educational                 
Facilities Revenue (Butler                 
University Project)                 
(Insured; MBIA)    5.50    2/1/26    3,500,000    3,689,770 
Kansas—2.1%                 
Neosho County Unified School                 
District Number 413, GO                 
(Insured; FSA)    5.00    9/1/20    1,075,000    1,146,928 
Neosho County Unified School                 
District Number 413, GO                 
(Insured; FSA)    5.00    9/1/21    1,200,000    1,279,512 
Massachusetts—2.0%                 
Massachusetts                 
(Insured; FSA)    5.25    9/1/24    2,000,000    2,287,320 
Minnesota—.9%                 
Prior Lake-Savage Area Schools                 
Independent School District                 
Number 719, GO School Building             
(Insured; FSA)    5.00    2/1/18    1,000,000    1,072,930 
Missouri—2.4%                 
Saint Louis,                 
Airport Revenue (Airport                 
Development Program)                 
(Insured; MBIA)    5.63    7/1/11    2,500,000 a    2,685,725 

The Fund 7

STATEMENT OF INVESTMENTS (continued)

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
New Jersey—7.8%                 
New Jersey Economic Development             
Authority, PCR (Public Service                 
Electric and Gas Company                 
Project) (Insured; MBIA)    6.40    5/1/32    7,100,000    7,161,060 
New Jersey Turnpike Authority,                 
Turnpike Revenue (Insured; FSA)    5.25    1/1/26    1,500,000    1,724,490 
New York—13.3%                 
Hudson Yards Infrastructure                 
Corporation, Hudson Yards                 
Senior Revenue (Insured; MBIA)    4.50    2/15/47    5,000,000    4,931,250 
Metropolitan Transportation                 
Authority, Special Obligation                 
State Service Contract                 
(Insured; MBIA)    5.50    1/1/20    2,000,000    2,165,420 
Metropolitan Transportation                 
Authority, Transportation                 
Revenue (Insured; AMBAC)    5.50    11/15/19    5,000,000    5,445,800 
Metropolitan Transportation                 
Authority, Transportation                 
Revenue (Insured; FGIC)    5.00    11/15/32    1,350,000    1,418,283 
New York City Municipal Water                 
Finance Authority, Water and                 
Sewer System Revenue                 
(Insured; MBIA)    5.00    6/15/28    1,000,000    1,061,260 
Ohio—3.9%                 
Cleveland State University,                 
General Receipts                 
(Insured; FGIC)    5.00    6/1/34    1,150,000    1,208,362 
Ohio Turnpike Commission,                 
Turnpike Revenue                 
(Insured; FGIC)    5.50    2/15/17    1,995,000    2,261,991 
Ohio Turnpike Commission,                 
Turnpike Revenue                 
(Insured; FGIC)    5.50    2/15/20    855,000    986,559 
Pennsylvania—1.0%                 
Pennsylvania Turnpike Commission,             
Registration Fee Revenue                 
(Insured; FSA)    5.25    7/15/23    1,000,000    1,140,890 

  8
Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
South Carolina—.9%                 
Spartanburg Sanitary Sewer                 
District, Sewer System Revenue                 
(Insured; MBIA)    5.25    3/1/30    1,000,000    1,071,280 
Texas—9.4%                 
Austin,                 
Electric Utility System                 
Revenue (Insured; FSA)    5.00    11/15/14    1,000,000    1,077,220 
Houston Area Water Corporation,                 
City of Houston Contract                 
Revenue (Northeast Water                 
Purification Plant Project)                 
(Insured; FGIC)    5.25    3/1/23    2,470,000    2,617,780 
Irving,                 
Waterworks and Sewer System                 
New Lien Revenue (Insured; FSA)    5.25    8/15/18    500,000    548,850 
San Antonio,                 
Water System Revenue                 
(Insured; FSA)    5.50    5/15/19    1,000,000    1,078,030 
San Antonio,                 
Water System Revenue                 
(Insured; FSA)    5.50    5/15/20    2,500,000    2,690,325 
Texas Turnpike Authority,                 
Revenue (Central Texas                 
Turnpike System)                 
(Insured; AMBAC)    5.50    8/15/39    2,500,000    2,684,500 
Utah—.9%                 
Utah State University,                 
Student Fee and Housing System                 
Revenue (Insured; MBIA)    5.00    4/1/29    1,000,000    1,050,330 
Virginia—8.1%                 
Danville Industrial Development                 
Authority, HR (Danville                 
Regional Medical Center)                 
(Insured; AMBAC)    5.25    10/1/28    1,500,000    1,687,500 
Upper Occoquan Sewer Authority,                 
Regional Sewer Revenue                 
(Insured; MBIA)    5.15    7/1/20    5,210,000    5,815,610 

The Fund 9

STATEMENT OF INVESTMENTS (continued)

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Virginia (continued)                 
Virginia University,                 
Revenue (General Pledge)                 
(Insured; AMBAC)    5.00    5/1/14    1,615,000    1,738,838 
West Virginia—9.7%                 
West Virginia                 
(Insured; FGIC)    6.50    11/1/16    2,600,000 a    3,188,406 
West Virginia                 
(Insured; FGIC)    0.00    11/1/26    5,450,000    2,336,633 
West Virginia State Building                 
Commission, Subordinate LR                 
(West Virginia Regional Jail                 
and Correctional Facility                 
Authority) (Insured; AMBAC)    5.38    7/1/21    2,505,000    2,829,673 
West Virginia Water Development             
Authority, Water Development             
Revenue (Loan Program II)                 
(Insured; AMBAC)    5.25    11/1/23    1,000,000    1,081,070 
West Virginia Water Development             
Authority, Water Development             
Revenue (Loan Program II)                 
(Insured; AMBAC)    5.00    11/1/29    1,400,000    1,476,510 
Total Long-Term Municipal Investments             
(cost $102,481,201)                107,763,771 
 
 
Short-Term Municipal Investments—4.3%             
Michigan—1.9%                 
Royal Oak Hospital Finance                 
Authority, HR, Refunding                 
(William Beaumont Hospital                 
Obligated Group) (Insured;                 
AMBAC and Liquidity Facility;                 
Morgan Stanley Bank)    4.05    5/1/07    2,200,000 b    2,200,000 
Tennessee—2.4%                 
Blount County Public Building                 
Authority, Local Government                 
Public Improvement Revenue                 
(LOC: KBC Bank and Landesbank             
Baden-Wurttemberg)    4.03    5/1/07    1,000,000 b    1,000,000 

  10
Short-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Tennessee (continued)                 
Sevier County Public Building                 
Authority, Local Government                 
Public Improvement Revenue                 
(Insured; AMBAC and Liquidity             
Facility; DEPFA Bank PLC)    4.03    5/1/07    1,750,000 b    1,750,000 
Total Short-Term Municipal Investments             
(cost $4,950,000)                4,950,000 
 
Total Investments (cost $107,431,201)        98.8%    112,713,771 
Cash and Receivables (Net)            1.2%    1,426,333 
Net Assets            100.0%    114,140,104 

a These securities are prerefunded; the date shown represents the prerefunded date. 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.Variable interest rate—subject to periodic change. 
c At April 30, 2007, 30.8% of the fund’s net assets are insured by AMBAC and 35.1% are insured by MBIA. 

The Fund 11

STATEMENT OF INVESTMENTS (continued)

Summary of Abbreviations         
 
ACA    American Capital Access    AGC    ACE Guaranty Corporation 
AGIC    Asset Guaranty Insurance    AMBAC    American Municipal Bond 
    Company        Assurance Corporation 
ARRN    Adjustable Rate Receipt Notes    BAN    Bond Anticipation Notes 
BIGI    Bond Investors Guaranty Insurance    BPA    Bond Purchase Agreement 
CGIC    Capital Guaranty Insurance    CIC    Continental Insurance 
    Company        Company 
CIFG    CDC Ixis Financial Guaranty    CMAC    Capital Market Assurance 
            Corporation 
COP    Certificate of Participation    CP    Commercial Paper 
EDR    Economic Development Revenue    EIR    Environmental Improvement 
            Revenue 
FGIC    Financial Guaranty Insurance         
    Company    FHA    Federal Housing Administration 
FHLB    Federal Home Loan Bank    FHLMC    Federal Home Loan Mortgage 
            Corporation 
FNMA    Federal National         
    Mortgage Association    FSA    Financial Security Assurance 
GAN    Grant Anticipation Notes    GIC    Guaranteed Investment Contract 
GNMA    Government National         
    Mortgage Association    GO    General Obligation 
HR    Hospital Revenue    IDB    Industrial Development Board 
IDC    Industrial Development Corporation    IDR    Industrial Development Revenue 
LOC    Letter of Credit    LOR    Limited Obligation Revenue 
LR    Lease Revenue    MBIA    Municipal Bond Investors Assurance 
            Insurance Corporation 
MFHR    Multi-Family Housing Revenue    MFMR    Multi-Family Mortgage Revenue 
PCR    Pollution Control Revenue    PILOT    Payment in Lieu of Taxes 
RAC    Revenue Anticipation Certificates    RAN    Revenue Anticipation Notes 
RAW    Revenue Anticipation Warrants    RRR    Resources Recovery Revenue 
SAAN    State Aid Anticipation Notes    SBPA    Standby Bond Purchase Agreement 
SFHR    Single Family Housing Revenue    SFMR    Single Family Mortgage Revenue 
SONYMA    State of New York Mortgage Agency    SWDR    Solid Waste Disposal Revenue 
TAN    Tax Anticipation Notes    TAW    Tax Anticipation Warrants 
TRAN    Tax and Revenue Anticipation Notes    XLCA    XL Capital Assurance 

12
Summary of Combined Ratings (Unaudited)     
 
Fitch    or Moody’s    or    Standard & Poor’s    Value (%) † 
AAA    Aaa        AAA    95.6 
F1    MIG1/P1        SP1/A1    4.4 
                100.0 
 
† Based on total investments.             
See notes to financial statements.             

The Fund 13

STATEMENT OF ASSETS AND LIABILITIES 
April 30, 2007 

    Cost    Value 
Assets ($):         
Investments in securities—See Statement of Investments    107,431,201    112,713,771 
Interest receivable        1,682,091 
Receivable for shares of Common Stock subscribed        219 
Prepaid expenses        19,376 
        114,415,457 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)        74,823 
Cash overdraft due to Custodian        28,729 
Payable for shares of Common Stock redeemed        109,716 
Accrued expenses        62,085 
        275,353 
Net Assets ($)        114,140,104 
Composition of Net Assets ($):         
Paid-in capital        108,446,460 
Accumulated net realized gain (loss) on investments        411,074 
Accumulated net unrealized appreciation         
(depreciation) on investments        5,282,570 
Net Assets ($)        114,140,104 
Shares Outstanding         
(300 million shares of $.001 par value Common Stock authorized)    6,388,640 
Net Asset Value, offering and redemption price per share—Note 3(d) ($)    17.87 

See notes to financial statements.

14
STATEMENT OF OPERATIONS 
Year Ended April 30, 2007 

Investment Income ($):     
Interest Income    5,581,577 
Expenses:     
Management fee—Note 3(a)    713,214 
Service plan and propspectus fees—Note 3(b)    98,728 
Shareholder servicing costs—Note 3(b)    66,418 
Professional fees    52,667 
Registration fees    20,512 
Custodian fees    15,448 
Shareholders’ reports    10,071 
Directors’ fees and expenses—Note 3(c)    9,232 
Loan commitment fees—Note 2    575 
Miscellaneous    14,582 
Total Expenses    1,001,447 
Less—reduction in custody fees due to     
earnings credits—Note 1(b)    (9,771) 
Net Expenses    991,676 
Investment Income—Net    4,589,901 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments    773,074 
Net unrealized appreciation (depreciation) on investments    1,104,799 
Net Realized and Unrealized Gain (Loss) on Investments    1,877,873 
Net Increase in Net Assets Resulting from Operations    6,467,774 

See notes to financial statements.

The Fund 15

STATEMENT OF CHANGES IN NET ASSETS

        Year Ended April 30, 
    2007    2006 
Operations ($):         
Investment income—net    4,589,901    4,844,097 
Net realized gain (loss) on investments    773,074    (259,332) 
Net unrealized appreciation         
(depreciation) on investments    1,104,799    (2,586,733) 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    6,467,774    1,998,032 
Dividends to Shareholders from ($):         
Investment income—net    (4,587,025)    (4,804,483) 
Capital Stock Transactions ($):         
Net proceeds from shares sold    1,406,795    2,737,716 
Dividends reinvested    3,223,904    3,276,730 
Cost of shares redeemed    (14,743,665)    (14,607,399) 
Increase (Decrease) in Net Assets from         
Capital Stock Transactions    (10,112,966)    (8,592,953) 
Total Increase (Decrease) in Net Assets    (8,232,217)    (11,399,404) 
Net Assets ($):         
Beginning of Period    122,372,321    133,771,725 
End of Period    114,140,104    122,372,321 
Undistributed investment income—net    —    25,709 
Capital Share Transactions (Shares):         
Shares sold    79,151    153,051 
Shares issued for dividends reinvested    180,937    183,259 
Shares redeemed    (828,067)    (817,646) 
Net Increase (Decrease) in Shares Outstanding    (567,979)    (481,336) 

See notes to financial statements.

16

FINANCIAL HIGHLIGHTS

The following table describe the performance for the fiscal periods indicated. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.

        Year Ended April 30,     
    2007    2006    2005    2004    2003 
Per Share Data ($):                     
Net asset value, beginning of period    17.59    17.99    17.68    18.35    17.84 
Investment Operations:                     
Investment income—net a    .69    .67    .68    .73    .80 
Net realized and unrealized                     
gain (loss) on investments    .28    (.40)    .51    (.63)    .59 
Total from Investment Operations    .97    .27    1.19    .10    1.39 
Distributions:                     
Dividends from investment income—net    (.69)    (.67)    (.67)    (.73)    (.79) 
Dividends from net realized                     
gain on investments    —    —    (.21)    (.04)    (.09) 
Total Distributions    (.69)    (.67)    (.88)    (.77)    (.88) 
Net asset value, end of period    17.87    17.59    17.99    17.68    18.35 
Total Return (%)    5.58    1.53    6.81    .51    7.98 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    .84    .84    .91    .94    .95 
Ratio of net expenses                     
to average net assets    .83    .84    .82    .85    .85 
Ratio of net investment income                     
to average net assets    3.86    3.75    3.78    4.03    4.39 
Portfolio Turnover Rate    27.33    33.86    42.49    74.22    45.87 
Net Assets, end of period ($ x 1,000)    114,140    122,372    133,772    139,552    157,250 

a Based on average shares outstanding at each month end. 
See notes to financial statements. 

The Fund 17

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, as amended (the “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 (the “Manager” or “Dreyfus”) serves as the fund’s investment adviser.The Manager is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”).Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares, which are sold to the public without a sales charge. Effective November 17, 2006, the fund is closed to any investments for new accounts.

On May 24, 2007, the shareholders of Mellon Financial and The Bank of New York Company, Inc. approved the proposed merger of the two companies.The new company will be called The Bank of New York Mellon Corporation. As part of this transaction, Dreyfus would become a wholly-owned subsidiary of The Bank of New York Mellon Corporation.The transaction is subject to certain regulatory approvals, as well as other customary conditions to closing. Subject to such approvals and the satisfaction of the other conditions, Mellon Financial and The Bank of New York Company, Inc. expect the transaction to be completed in the third quarter of 2007.

The fund’s financial statements are prepared in accordance with U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

The fund enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in securities are valued each business day by an independent pricing service (the “Service”) approved by the Board of Directors. Investments for which quoted bid prices are

18

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. Options and financial futures on municipal and U.S. Treasury securities are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market on each business day.

On September 20, 2006, the Financial Accounting Standards Board (FASB) released Statement of Financial Accounting Standards No. 157 “Fair Value Measurements” (“FAS 157”). FAS 157 establishes an authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair-value measurements. The application of FAS 157 is required for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. Management does not believe that the application of this standard will have a material impact on the financial statements of the fund.

(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 accretion of discount and amortization of premium 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.

The fund has an arrangement with the custodian bank whereby the fund receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the fund includes net earnings credits, as an expense offset in the Statement of Operations.

The Fund 19

NOTES TO FINANCIAL STATEMENTS (continued)

(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 of 1986, as amended (the “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.Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.

(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 Code, and to make distributions of income and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes.

On July 13, 2006, the FASB released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Management does not believe that the application of this standard will have a material impact on the financial statements of the fund.

At April 30, 2007, the components of accumulated earnings on a tax basis were as follows: undistributed tax-exempt income $8,871, undistributed capital gains $224,161 and unrealized appreciation $5,469,483.

20

The tax character of distributions paid to shareholders during the fiscal periods ended April 30, 2007 and April 30, 2006 were as follows: tax exempt income $4,587,025 and $4,804,483, respectively.

During the period ended April 30, 2007, as a result of permanent book to tax differences primarily due to the tax treatment for amortization adjustments, the fund decreased accumulated undistributed investment income-net by $28,585 and increased accumulated net realized gain (loss) on investments by the same amount. Net assets were not affected by this reclassification.

NOTE 2—Bank Line of Credit:

The fund participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the “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 based on prevailing market rates in effect at the time of borrowing. During the period ended April 30, 2007, 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 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 fees, commitment fees, interest on borrowings and extraordinary expenses, exceed 1 1 / 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. During the period ended April 30, 2007, there was no expense reimbursement pursuant to the Agreement.

The Fund 21

NOTES TO FINANCIAL STATEMENTS (continued)

(b) Under the Service Plan (the “Plan”) adopted pursuant to Rule 12b-1 under the Act, the fund reimburses the Distributor for distributing the fund’s shares, servicing shareholder accounts (“servicing”) and for advertising and marketing relating to the fund.The Plan provides for payments to be made at an aggregate annual rate of up to .20% of the value of the fund’s average daily net assets.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 the value of the fund’s average daily net assets for any full fiscal year. During the period ended April 30, 2007, the fund was charged $98,728 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 April 30, 2007, the fund was charged $45,788 pursuant to the transfer agency agreement.

During the period ended April 30, 2007, the fund was charged $4,089 for services performed by the Chief Compliance Officer.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: management fees $56,308, Rule 12b-1 service plan fees $7,508, chief compliance officer fees $3,407 and transfer agency per account fees $7,600.

(c) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

(d) A .10% redemption fee is charged and retained by the fund on certain shares redeemed within thirty days following the date of issuance, subject to exceptions, including redemptions made through the use of fund’s exchange privilege.

22

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended April 30, 2007, amounted to $31,566,573 and $45,077,107, respectively.

At April 30, 2007, the cost of investments for federal income tax purposes was $107,244,288; accordingly, accumulated net unrealized appreciation on investments was $5,469,483, consisting of $5,617,709 gross unrealized appreciation and $148,226 gross unrealized depreciation.

NOTE 5—Plan of Reorganization:

At a meeting of the Board of Trustees of the fund held on November 6, 2006, the Board approved, subject to shareholder approval, an Agreement and Plan of Reorganization (the “Agreement”) between the fund and Dreyfus Municipal Bond Fund (the “Acquiring Fund”).The Agreement provides for the transfer of the fund's assets to the Acquiring Fund in a tax-free exchange for shares of the Acquiring Fund and the assumption by the Acquiring Fund of the fund’s stated liabilities, the distribution of shares of the Acquiring Fund to the fund’s shareholders and the subsequent termination of the fund (the “Reorganization”). The holders of fund shares as of January 26, 2007 were asked to approve the Agreement on behalf of the fund at a special meeting of shareholders that was held on May 23, 2007.The Reorganization took place on June 11, 2007.

The Fund 23

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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, 2007, 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 the standards of the Public Company Accounting Oversight Board (United States).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.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting.Accordingly, we express no such opinion.An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2007 by correspondence with the custodian.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, 2007, 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 U.S. generally accepted accounting principles.

New York, New York 
June 14, 2007 

24

IMPORTANT TAX INFORMATION ( U n a u d i t e d )

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, 2007 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 gains distributions (if any) paid for the 2007 calendar year on Form 1099-DIV and their portion of the fund’s tax-exempt dividends paid for 2007 calendar year on Form 1099-INT, both which will be mailed by January 31, 2008.

The Fund 25

INFORMATION ABOUT THE REVIEW AND APPROVAL OF THE FUND’S MANAGEMENT AGREEMENT (Unaudited)

At a Meeting of the fund’s Board of Directors held on November 6, 2006, the Board considered the re-approval for an annual period of the fund’s Management Agreement,pursuant to which the Manager provides the fund with investment advisory and administrative services.The Board members, none of whom are “interested persons” (as defined in the Investment Company Act of 1940, as amended) of the fund, were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Manager.

Analysis of Nature, Extent, and Quality of Services Provided to the Fund. The Board members received a presentation from representatives of the Manager regarding services provided to the fund and other funds in the Dreyfus fund complex, and discussed the nature, extent, and quality of the services provided to the fund pursuant to the fund’s Management Agreement.The Manager’s representatives reviewed the fund’s distribution of accounts and the relationships that the Manager has with various intermediaries and the different needs of each. The Manager’s representatives noted the diversity of distribution of the fund as well as among the funds in the Dreyfus fund complex, and the Manager’s corresponding need for broad, deep, and diverse resources to be able to provide ongoing shareholder services to each of the fund’s distribution channels. The Board also reviewed the number of shareholder accounts in the fund, as well as the fund’s asset size.

The Board members also considered the Manager’s research and portfolio management capabilities and that the Manager also provides oversight of day-to-day fund operations, including fund accounting and administration and assistance in meeting legal and regulatory requirements.The Board members also considered the Manager’s extensive administrative, accounting, and compliance infrastructure.

Comparative Analysis of the Fund’s Management Fee and Expense Ratio and Performance. The Board members reviewed reports prepared by Lipper, Inc., an independent provider of investment company data, which included information comparing the fund’s management fee and expense ratio with a group of comparable funds (the “Expense Group”) and with a broader group of funds (the “Expense Universe”)

26

that were selected by Lipper. Included in the fund’s reports were comparisons of contractual and actual management fee rates and total operating expenses.

The Board members also reviewed the reports prepared by Lipper that presented the fund’s performance and placed significant emphasis on comparisons of total return performance for various periods ended September 30, 2006 and yield performance for one-year periods ended September 30th for the fund to the same group of funds as the fund’s Expense Group (the “Performance Group”) and to a group of funds that was broader than the fund’s Expense Universe (the “Performance Universe”) that also were selected by Lipper.The Manager previously had furnished the Board with a description of the methodology Lipper used to select the fund’s Expense Group and Expense Universe, and Performance Group and Performance Universe.The Manager also provided a comparison of the fund’s total returns to the fund’s Lipper category average returns for the past 10 calendar years.

The Board reviewed the results of the Expense Group and Expense Universe comparisons for various periods ended September 30, 2006. The Board reviewed the range of management fees and expense ratios of the funds in the Expense Group and Expense Universe, and noted that the fund’s contractual management fee was higher than the Expense Group median and that the fund’s actual management fee was higher than the Expense Group and Expense Universe medians. The Board also noted that the fund’s total expense ratio was lower than the Expense Group and Expense Universe medians.

With respect to the fund’s performance, the Board noted that the fund achieved total returns at the Performance Group median for each reported time period up to 3 years and lower than the Performance Group median for each longer term reported time period up to 10 years. The Board also noted that the fund’s total returns were higher than the Performance Universe median for 5 of the 6 reported time periods up to 10 years. On a yield performance basis, the Board noted that the fund achieved 1-year yields variously at, higher than, or lower than the Performance Group median for each other reported time

The Fund 27

INFORMATION ABOUT THE REVIEW AND APPROVAL OF THE FUND’S MANAGEMENT AGREEMENT (Unaudited) (continued)

period up to 10 years, and that were at or higher than the Performance Universe median for each reported time period up to 10 years.

The Manager’s representatives noted that there were no similarly managed mutual funds, institutional separate accounts, or wrap fee accounts managed by the Manager or its affiliates with similar investment objectives, policies, and strategies (and, as to mutual funds, reported in the same Lipper category) as the fund.

Analysis of Profitability and Economies of Scale. The Manager’s representatives reviewed the dollar amount of expenses allocated and profit received by the Manager for the fund and the method used to determine such expenses and profit.The Board previously had been provided with information prepared by an independent consulting firm regarding the Manager’s approach to allocating costs to, and determining the profitability of, individual funds and the entire Dreyfus mutual fund complex.The Board also had been informed that the methodology had also been reviewed by an independent registered public accounting firm which, like the consultant, found the methodology to be reasonable.The consulting firm also analyzed where any economies of scale might emerge in connection with the management of a fund. The Board members evaluated the profitability analysis in light of the relevant circumstances for the fund, including any decline in fund assets from the prior year, and the extent to which economies of scale would be realized if the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders.The Board members also considered potential benefits to the Manager from acting as investment adviser to the fund and noted that there were no soft dollar arrangements in effect with respect to trading the fund’s portfolio.

It was noted that the Board members should consider the Manager’s profitability with respect to the fund as part of their evaluation of whether the fees under the Management Agreement bear a reasonable relationship to the mix of services provided by the Manager, including the nature, extent, and quality of such services and that a discussion of economies of scale is predicated on increasing assets and that, if the fund’s assets had been decreasing, the possibility that the Manager may

28

have realized any economies of scale would be less. It was noted that the profitability percentage for managing the fund was within ranges determined by appropriate court cases to be reasonable given the services rendered and the fund’s overall performance and generally superior service levels provided.

At the conclusion of these discussions, the Board agreed that it had been furnished with sufficient information to make an informed business decision with respect to continuation of the fund’s Management Agreement. Based on its discussions and considerations as described above, the fund’s Board made the following conclusions and determinations.

  • The Board concluded that the nature, extent, and quality of the services provided by the Manager to the fund are adequate and appropriate.
  • The Board was satisfied with the fund’s overall performance.
  • The Board concluded that the fee paid to the Manager by the fund was reasonable in light of the services provided, comparative perfor- mance and expense and management fee information, costs of the services provided and profits to be realized and benefits derived or to be derived by the Manager from its relationship with the fund.
  • The Board determined that the economies of scale which may accrue to the Manager and its affiliates in connection with the management of the fund had been adequately considered by the Manager in con- nection with the management fee rate charged to the fund, and that, to the extent in the future it were to be determined that material economies of scale had not been shared with a fund, the Board would seek to have those economies of scale shared with the fund.

The Board members considered these conclusions and determinations, along with the information received on a routine and regular basis throughout the year, and, without any one factor being dispositive, the Board determined that re-approval of the fund’s Management Agreement was in the best interests of the fund and its shareholders.

The Fund 29

BOARD MEMBERS INFORMATION ( U n a u d i t e d )

OFFICERS OF THE FUND ( U n a u d i t e d )

J. DAVID OFFICER, President since 
December 2006. 

Chief Operating Officer,Vice Chairman and a director of the Manager, and an officer of 88 investment companies (comprised of 172 portfolios) managed by the Manager. He is 58 years old and has been an employee of the Manager since April 1998.

MARK N. JACOBS, Vice President since 
March 2000. 

Executive Vice President, Secretary and General Counsel of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 61 years old and has been an employee of the Manager since June 1977.

MICHAEL A. ROSENBERG, Vice President 
and Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since October 1991.

JAMES BITETTO, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel and Assistant Secretary of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 40 years old and has been an employee of the Manager since December 1996.

JONI LACKS CHARATAN, Vice President 
and Assistant Secretary since 
August 2005. 

Associate General Counsel of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. She is 51 years old and has been an employee of the Manager since October 1988.

JOSEPH M. CHIOFFI, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 45 years old and has been an employee of the Manager since June 2000.

JANETTE E. FARRAGHER, Vice President 
and Assistant Secretary since 
August 2005. 

Associate General Counsel of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. She is 44 years old and has been an employee of the Manager since February 1984.

JOHN B. HAMMALIAN, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 43 years old and has been an employee of the Manager since February 1991.

ROBERT R. MULLERY, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 55 years old and has been an employee of the Manager since May 1986.

JEFF PRUSNOFSKY, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 41 years old and has been an employee of the Manager since October 1990.

The Fund 33

OFFICERS OF THE FUND (Unaudited) (continued)

JAMES WINDELS, Treasurer since 
November 2001. 

Director – Mutual Fund Accounting of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 48 years old and has been an employee of the Manager since April 1985.

ROBERT ROBOL, Assistant Treasurer 
since August 2005. 

Senior Accounting Manager – Money Market and Municipal Bond Funds of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 43 years old and has been an employee of the Manager since October 1988.

ROBERT SVAGNA, Assistant Treasurer 
since August 2005. 

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 40 years old and has been an employee of the Manager since November 1990.

GAVIN C. REILLY, Assistant Treasurer 
since December 2005. 

Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 38 years old and has been an employee of the Manager since April 1991.

JOSEPH W. CONNOLLY, Chief Compliance 
Officer since October 2004. 

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (89 investment companies, comprised of 188 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon’s Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 49 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

WILLIAM GERMENIS, Anti-Money 
Laundering Compliance Officer since 
October 2002. 

Vice President and Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 85 investment companies (comprised of 184 portfolios) managed by the Manager. He is 36 years old and has been an employee of the Distributor since October 1998.

34

NOTES

Item 2. Code of Ethics.

The Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There have been no amendments to, or waivers in connection with, the Code of Ethics during the period covered by this Report.

Item 3. Audit Committee Financial Expert.

The Registrant's Board has determined that Joseph S. DiMartino, a member of the Audit Committee of the Board, is an audit committee financial expert as defined by the Securities and Exchange Commission (the "SEC"). Joseph S. DiMartino is "independent" as defined by the SEC for purposes of audit committee financial expert determinations.

Item 4. Principal Accountant Fees and Services

(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $30,881 in 2006 and $30,881 in 2007.

(b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item 4 were $0 in 2006 and $0 in 2007.

The aggregate fees billed in the Reporting Periods for non-audit assurance and related services by the Auditor to the Registrant's investment adviser (not including any sub-investment adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant ("Service Affiliates"), that were reasonably related to the performance of the annual audit of the Service Affiliate, which required pre-approval by the Audit Committee were $0 in 2006 and $0 in 2007.

Note: For the second paragraph in each of (b) through (d) of this Item 4, certain of such services were not pre-approved prior to May 6, 2003, when such services were required to be pre-approved. On and after May 6, 2003, 100% of all services provided by the Auditor were pre-approved as required. For comparative purposes, the fees shown assume that all such services were pre-approved, including services that were not pre-approved prior to the compliance date of the pre-approval requirement.

(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $3,220 in 2006 and $3,038 in 2007. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

The aggregate fees billed in the Reporting Periods for Tax Services by the Auditor to Service Affiliates which required pre-approval by the Audit Committee were $0 in 2006 and $0 in 2007.

(d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item, were $117 in 2006 and $128 in 2007. These services consisted of a review of the Registrant's anti-money laundering program.

The aggregate fees billed in the Reporting Periods for Non-Audit Services by the Auditor to Service Affiliates, other than the services reported in paragraphs (b) through (c) of this Item, which required pre-approval by the Audit Committee were $0 in 2006 and $0 in 2007.

Audit Committee Pre-Approval Policies and Procedures. The Registrant's Audit Committee has established policies and procedures (the "Policy") for pre-approval (within specified fee limits) of the Auditor's engagements for non-audit services to the Registrant and Service Affiliates without specific case-by-case consideration. Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor's independence. Pre-approvals pursuant to the Policy are considered annually.

Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to Service Affiliates, for the Reporting Periods were $718,507 in 2006 and $946,380 in 2007.

Auditor Independence. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates which were not pre-approved (not requiring pre-approval) is compatible with maintaining the Auditor's independence.

Item 5.    Audit Committee of Listed Registrants. 
    Not applicable. 
Item 6.    Schedule of Investments. 
    Not applicable. 
Item 7.    Disclosure of Proxy Voting Policies and Procedures for Closed-End Management 
    Investment Companies. 
    Not applicable. 
Item 8.    Portfolio Managers of Closed-End Management Investment Companies. 
    Not applicable. 
Item 9.    Purchases of Equity Securities by Closed-End Management Investment Companies and 
    Affiliated Purchasers. 
    Not applicable. 
Item 10.    Submission of Matters to a Vote of Security Holders. 

The Registrant has a Nominating Committee (the "Committee"), which is responsible for selecting and nominating persons for election or appointment by the Registrant's Board as Board members. The Committee has adopted a Nominating Committee Charter (the "Charter"). Pursuant to the Charter, the

Committee will consider recommendations for nominees from shareholders submitted to the Secretary of the Registrant, c/o The Dreyfus Corporation Legal Department, 200 Park Avenue, 8th Floor East, New York, New York 10166. A nomination submission must include information regarding the recommended nominee as specified in the Charter. This information includes all information relating to a recommended nominee that is required to be disclosed in solicitations or proxy statements for the election of Board members, as well as information sufficient to evaluate the factors to be considered by the Committee, including character and integrity, business and professional experience, and whether the person has the ability to apply sound and independent business judgment and would act in the interests of the Registrant and its shareholders.

Nomination submissions are required to be accompanied by a written consent of the individual to stand for election if nominated by the Board and to serve if elected by the shareholders, and such additional information must be provided regarding the recommended nominee as reasonably requested by the Committee.

Item 11. Controls and Procedures.

(a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes to the Registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12. Exhibits. 
(a)(1)    Code of ethics referred to in Item 2. 
(a)(2)    Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) 
under the Investment Company Act of 1940. 
(a)(3)    Not applicable. 
(b)    Certification of principal executive and principal financial officers as required by Rule 30a-2(b) 
under the Investment Company Act of 1940. 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dreyfus Insured Municipal Bond Fund, Inc. 
 
By:    /s/ J. David Officer 
    J. David Officer 
    President 
 
Date:    June 19, 2007 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:    /s/ J. David Officer 
    J. David Officer 
    President
 
Date:    June 19, 2007 
 
By:    /s/ James Windels 
    James Windels 
    Treasurer
 
Date:    June 19, 2007 

    EXHIBIT INDEX 
(a)(1)    Code of ethics referred to in Item 2. 
(a)(2)    Certifications of principal executive and principal financial officers as required by Rule 30a- 
2(a) under the Investment Company Act of 1940. (EX-99.CERT) 
(b)    Certification of principal executive and principal financial officers as required by Rule 30a- 
2(b) under the Investment Company Act of 1940. (EX-99.906CERT)