DUBLIN, Ohio–American Share Insurance, which provides primary deposit insurance to more than 150 credit unions in nine states, said it will charge its insured CUs a 2009 special premium assessment of 15 basis points.
“The premium is deemed necessary as a result of losses developing, or incurred, in a small number of primary insured member credit unions,” the company said.
Dennis Adams, ASI’s CEO, said in a released statement, “We regret assessing such a charge at this time, but additions to our reserve for losses late in the year have forced us to assess the premium to restore the ASI guarantee fund’s equity ratio to above our minimum level of 1.30%. Record low interest rates and significant guaranty loss provision expense this year have adversely affected ASI’s current earnings causing our year-end 2009 equity ratio to fall below 1.30% for the first time in over 20 years.”
