The directors American Share Insurance are turning aside any notion of seeking increased assessments based on current conditions, the company's CEO, Dennis Adams said today.
"Our board discussed this issue thoroughly at our meeting this week and we see no need to change course," said Adams, commenting on what he said was a tough year for his industry and many of the 159 credit unions his firm insures, including those suffering serious losses in the sand states.
Despite the huge mortgage losses in Nevada borne by CUs insured either by ASI or the NCUSIF, Adams said the board saw no need "based on cosmetic reasons to start collecting higher premiums" when conditions do not require it. ASI will post a loss for the year, according to Adams, but its equity ratio stands at 1.42% after accounting for last month's failure of the $147 million Cumorah CU of Las Vegas. Cumorah was taken over by Credit Union 1 of Rantoul, Ill., which was also ASI-insured.
Regarding Nevada's largest CU, the $899 million Silver State Schools CU, also insured by ASI, Adams reaffirmed support for that troubled CU, stating, "Despite its losses, it is on the right track and being operated by a very capable CEO, Dave Rhamy." Rhamy has repeatedly refused to return reporters' phone calls, which Adams said "is simply his business decision."
