CUNA Mutual Posts 4th Straight Year of Earnings Growth
FOR IMMEDIATE RELEASE:
March 20, 2013
Reinvestment in Core CU Businesses Lead to Favorable Results, Despite Weather Losses
MADISON, Wis. – CUNA Mutual Group’s strong operating results in three of its core credit union businesses led to the company’s fourth consecutive year of earnings growth in 2012. Consolidated GAAP operating revenue, net income and capital levels all increased over 2011.
CUNA Mutual Group recorded $150 million of net income (GAAP) in 2012, compared to $83 million in 2011. Strong operating results, particularly in lending, direct-to-consumer and asset accumulation products, helped offset drought-related losses in the company’s crop insurance business and weather-related losses in its auto and home businesses. Solid investment performance also contributed heavily to higher net income in 2012.
|GAAP Financial Results*||2011||2012|
|Total Operating Revenue||$2.5B||$2.6B|
|Operating Revenue Growth||5%||3%|
“Based on 2012 CUNA Mutual Holding Company and Subsidiaries Consolidated Financial Statements”
GAAP operating revenue grew by 3 percent in 2012. An improved lending environment, the company’s focus on investing in and growing its consumer product lines and strong immediate annuity sales, were key factors driving the year’s revenue growth.
“Despite a sluggish economy and weather-related losses, CUNA Mutual Group posted its fourth consecutive year of earnings growth in 2012,” said Alastair Shore, EVP and chief financial officer. “Strong operating results in our core credit union businesses, prudent expense management and a $40 million reinvestment in a number of those businesses all contributed to very favorable results.”
CUNA Mutual Group’s total cash and investments grew to $11.1 billion in 2012, an increase of $1.2 billion over 2011. The company’s investment portfolio is well diversified with an average credit quality of “A.”
The company continued to build its financial strength. Statutory total adjusted capital of CMFG Life Insurance Company, CUNA Mutual Group’s lead life insurance company, grew to $1.6 billion in 2012, up $133 million from 2011. The company’s consolidated GAAP surplus ended the year at $2.5 billion, a 17 percent increase from 2011. A.M. Best recently affirmed CUNA Mutual Group’s key insurance companies’ ratings at “A” (Excellent), the third highest of 16 financial strength categories, with a stable outlook.
CUNA Mutual Group continued its strong advocacy for credit unions in 2012, contributing $39 million to support credit union leagues and industry efforts, compared to $35 million in 2011. In 2012, CUNA Mutual Group also reinvested more than $40 million in a number of businesses, including consumer, asset management, crop insurance and technology to name a few. Benefits paid to credit unions in 2012 of $964 million were up slightly from 2011.
CUNA Mutual Group’s insurance, retirement and investment products provide financial security and protection to credit unions and their members worldwide. With more than 75 years of true market commitment, CUNA Mutual Group’s vision is unwavering: To be a trusted business partner who delivers service excellence through customer-focused products and market-driven insight. More information on the company is available on the company’s web site at www.cunamutual.com.
CUNA Mutual Group is the marketing name of CUNA Mutual Group Holding Company, its affiliates and subsidiaries, including CMFG Life Insurance Company and CUMIS Insurance Society, Inc. Product availability and features may vary by jurisdiction and are subject to actual policy language. Corporate headquarters are located in Madison, Wisconsin.