DUBLIN, Ohio-American Mutual Share Insurance Corp. (ASI) has changed its current pricing formula for primary share insurance, a move that should mean significant savings to most of the company's primary insured member credit unions starting in 2009.
The change, effective Dec. 31, reduces the share insurance capital contribution (deposit) required of CAMEL 2-rated member credit unions from 1.1% of total shares to 1.0% of total shares. The new rate compares to that charged CAMEL 1-rated credit unions and "frees up millions of dollars of funds that can be used to better serve individual member needs," ASI sad. No other rates are affected by this change.
"This initiative by the board benefits many of our member credit unions at a time when resources are needed to aid individual members," ASI CEO Dennis Adams said. "The company is projecting a year-end equity ratio of 1.50% for the insurance fund, and the board wanted to reward those healthy credit unions that allowed us to achieve this milestone of financial stability."
