Friday, September 10, 2010

ASI to Levy Special Assessment of 15 Basis Points

Credit Union Journal (paid subscription) is reporting that privately-insured credit unions will be assessed a special premium assessment of 15 basis points by American Share Insurance (ASI) for 2010.

The premium will be assessed on all primary insured credit unions of record on September 30 and based on the total shares reported as of June 30.

This is the second consecutive special premium assessment by ASI. Last year, ASI levied a special assessment on privately insured credit unions to help replenish reserves drained by losses at Cumorah CU, a Las Vegas credit union that failed in 2009, and by a $22 million capital infusion into Silver State Schools CU, Nevada’s largest credit union.

ASI, according to Credit Union Journal, is justifying the special premium assessment due to weaker earnings arising from lower yields on its government bond portfolio and more aggressive funding of its loss reserves for problems at some privately insured credit unions.
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