American Share Insurance on Friday announced its primary insured credit unions will pay a 7.5 basis points assessment for 2013.
That’s a reduction from 2012’s assessment of 9 basis points and the 15 basis points it assessed in 2011.
As in previous years, ASI said the charge was needed to fund loss reserves due to continued low yields on its government bond portfolio.
“The ASI Board of Directors closely monitored ASI’s earnings, reserves and equity throughout the year and has given due consideration to the inputs of our actuaries, member/owner credit unions and ASI’s Primary Insured Credit Union Advisory Council before arriving at this decision,” President/CEO Dennis Adams said in a statement.
In the past five years, the credit union-owned ASI has assessed its members a total of 61.50 basis points, which the insurer pointed out is 26% less than the 83.32 basis points federally insured credit unions have been required to pay over the same time period. That federally insured figure includes assessments collected by the NCUA to pay for corporate stabilization.
After the assessment is applied, ASI said it anticipates ending the year with a superior equity ratio of 1.59%.
The assessment does not apply to federally insured credit unions with excess share insurance underwritten by the Dublin, Ohio-based ASI.
Chartered in 1974 to insure credit union members’ savings up to $250,000 per individual member account, ASI currently serves approximately 140 state-chartered credit unions.