American Share Insurance President Sees Various Reasons for Switch
Dennis Adams, the president/CEO of private insurer American Share Insurance Inc., said Wednesday he does not read too much into a handful of planned NCUA to ASI conversions now in the pipeline.
“Reasons for credit unions to convert vary greatly” and they can include a desire for less-constricting rules on account segregation or they may be wariness over investment losses relating to “NCUA transparency,” said the head of the Ohio-based firm.
Adams, in Chicago this week for a meeting of the National Conference of Credit Union Supervisors, said only one planned ASI convert, the $135 million School Employees Lorain County CU in Elyria, Ohio, has given notice to members and NCUA on a vote to convert on deposit insurance.
“There are a couple more totaling $100 million in other states but they haven’t announced the member vote so I can’t talk about them,” Adams said.
The ASI head also declined to elaborate on a special 15 basis point premium assessment his company has announced for 2011.
“The press release explains our position,” Adams said, pointing to lower yields on ASI’s government bond portfolio and “hesitant economic recovery” straining earnings.
The NCUA said Monday because of such conversion’ relative rarity, it was not making contingency plans to help credit unions that stay in its system deal with any additional costs from losing participants.