The credit union-owned American Share Insurance in Dublin, Ohio has announced a special premium assessment of nine basis points, or 9% of 1% of total shares, for 2012.
ASI said this week that the premium will be assessed for all primary insured member credit unions on record as of Sept. 30. The assessment will be based on total shares reported as of June 30, subject to final regulatory approvals, and is expected to be invoiced on or around Sep. 30, the company said.
ASI added the assessment doesn’t apply to excess share insurance policyholder credit unions insured by Excess Share Insurance Corp. or ASI.
“Record-low investment yields, combined with the need for ASI to continue funding loss reserves in light of the slow recovery in select markets, is what drove the ASI Board of Directors to make this decision,” said Dennis Adams, president/CEO for ASI.
“The ASI Board of Directors closely monitored ASI’s earnings and reserves throughout the year and reviewed its options for an assessment with ASI’s Primary Insured Credit Union Advisory Council before arriving at nine basis points,” Adams said.
The company said as a result of this assessment’s payment, it expects to sustain its equity ratio of 1.6% at the end of 2012.
Chartered in 1974 to insure credit union members’ savings up to $250,000 per individual member account, ASI currently serves 143 state-chartered credit unions. The company said 20 CEOs from ASI’s primary insured member credit unions sit on its Primary Insured Credit Union Advisory Council.
