American Mutual Share Insurance Corp. announced that at its Dec. 23 board meeting the board declared a 2009 special premium assessment of 15 basis points.
The premium assessment affects all primary insured member credit unions in ASI's nine states of operation.
"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%," said Dennis Adams, president/CEO. "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."
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Adams added that ASI has never before had to charge a premium or special assessment.
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