CUNA Mutual Group: Posts strong financial results in 2014

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Phil Tschudy 608.665.7188
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Mick Trevey 608.665.7194
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CUNA MUTUAL GROUP POSTS STRONG FINANCIAL RESULTS IN 2014

MADISON, Wis. – Strong operating results led to CUNA Mutual Group’s fourth consecutive year of earnings growth in 2014. Consolidated GAAP revenue, net income and capital levels increased over 2013.

*GAAP Financial Results

2014
2013

Total Revenue

$3.1B
$3.0B

Total Revenue Growth

3.6%
7.5%

Net Income

$206M
$162M

Net Income from Continuing Operations

$243M
$198M

Consolidated Surplus

$2.7B
$2.4B

*Financial results are from the company’s consolidated GAAP statements.
Total revenue excludes results from discontinued operations (crop).

GAAP total revenue grew by 3.6 percent in 2014. Key drivers of this growth included continued improvement in the lending environment and the company’s focus on investing in and growing its TruStageTM auto, home, life, accidental death and dismemberment and health insurance product lines.

“Serving credit unions and members is at the center of everything we do,” said Robert N. Trunzo, CUNA Mutual Group president and CEO. “Our growth is a reflection of their trust and of the dedication of all CUNA Mutual Group employees. We view growth as an opportunity to invest in new and innovative ways to help credit unions and their members build financial security.”

CUNA Mutual Group recorded $206 million of net income (GAAP) in 2014, a 26.8 percent growth over 2013. Strong investment and operating results, particularly in business protection products, drove this growth.

Capital Expansion Builds Financial Strength

The company continued to build financial strength. Statutory total adjusted capital of CMFG Life Insurance Company, CUNA Mutual Group’s lead life insurance company, grew to $2.0 billion in 2014, up 9.4 percent from 2013. The company’s consolidated GAAP surplus ended the year at $2.7 billion, an increase of 15.1 percent from 2013, driven by solid operating and investment performance, coupled with increased net unrealized gains in the investment portfolio driven by declining interest rates.

CUNA Mutual Group’s total cash and investment holdings were $12 billion as of Dec. 31, 2014, and contributed $562 million of net investment income for the year. The company’s investment portfolio is well diversified with an average credit quality of “A.”

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. A.M. Best has also assigned an issuer credit rating of “bbb” to CUNA Mutual Financial Group, Inc., the intermediate holding company within the group.

Vigorous Investment in Credit Union System Continues

CUNA Mutual Group continued its strong advocacy for credit unions in 2014, contributing $35 million to support credit union leagues and industry efforts. In 2014, CUNA Mutual Group also invested more than $50 million primarily to strengthen its lending and consumer businesses. Benefits paid to domestic credit union policyholders were $1.1 billion in 2014.

To streamline its focus and divest non-core business lines, the company closed the sale of its mortgage insurance company joint venture in 2014 and its crop insurance business in early 2015. The divestitures allow the company to put more focus on core business lines protecting credit unions, their employees and members.

CUNA Mutual Group was founded in 1935 by credit union pioneers, and our commitment to their vision continues today. We offer insurance and protection for credit unions, employees and members; lending solutions and marketing programs; TruStage™-branded consumer insurance products; and investment and retirement services to help our customers build a better financial future. More information is available on the company’s website at www.cunamutual.com.

CUNA Mutual Group is the marketing name of CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Life, accident, health and annuity insurance products are issued by CMFG Life Insurance Company. Property and casualty insurance products are issued by CUMIS Insurance Society, Inc. Each insurer is solely responsible for the financial obligations under the policies and contracts it issues. Corporate headquarters are located in Madison, Wis.