DUBLIN, Ohio (9/13/12)--Private share insurer American Mutual Share Insurance Corp. (ASI) has announced its board approved a special premium assessment for 2012--in the amount of nine basis points, or 9% of 1% of total shares.
The premium will be assessed of all its primary insured member credit unions of record as of Sept. 30, 2012. Subject to final regulatory approvals, the assessment will be based on total shares reported as of June 20, 2012, and invoiced on or about Sept. 30.
The assessment means the Dublin, Ohio-based ASI will end the year sustaining its equity ratio of 1.6%, said ASI in a press release.
The assessment does not apply to excess share insurance policyholder credit unions insured by Excess Share Insurance Corp. (ESI) 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 ASI President/CEO Dennis Adams.
The ASI board "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 ASI Advisory Council comprises 20 CEOs from primary insured member credit unions and provides a venue for member credit union input on critical issues, said ASI.
ASI, a credit union-owned share guaranty corporation, provides share insurance for members of 143 state-chartered credit unions in nine states. It insures these members' savings up to $250,000 per individual member account.