MADISON, WI (February 20, 2014) – CUNA Mutual Group’s strong operating results in its core credit union business led to the company’s earnings growth in 2013, as consolidated Generally Accepted Accounting Principles (GAAP) operating revenue and net income increased over 2012.
CUNA Mutual Group recorded $162 million of net income (GAAP) in 2013, compared to $150 million in 2012. Strong operating results, particularly in lending, life and health and property & casualty products, helped offset weather-related losses in the company’s crop insurance business. Solid investment performance also contributed greatly to higher net income in 2013.
| *GAAP Financial Results | 2013 | 2012 |
| Total Operating Revenue | $2.8B | $2.6B |
| Operating Revenue Growth | 8.6% | 3.4% |
| Net Income | $162M | $150M |
| Consolidated Surplus | $2.4B | $2.5B |
*Financial results are from the company’s consolidated GAAP statements
GAAP operating revenue grew by 8.6 percent in 2013. An improved lending environment, the company’s focus on investing in and growing its consumer product lines, and growth in the company’s crop insurance business, were key factors driving the year’s revenue growth.
Net income of $162 million for 2013 grew 7.8 percent over 2012. “Strong operating performance in most of our credit union products contributed to earnings growth in 2013,” said Alastair Shore, executive vice president and chief financial officer. “Low catastrophic losses in our Auto and Home and Credit Union Protection products helped offset weather-related losses from our crop insurance business. We continue to invest in new capabilities to grow our core credit union businesses, while improving our already strong capital position.”
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 $1.8 billion in 2013, up $152 million from 2012. The company’s consolidated GAAP surplus ended the year at $2.4 billion, a decline of 4 percent from 2012 despite strong earnings due to reduced net unrealized gains in the investment portfolio driven by rising interest rates.
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’s total cash and investment holdings as of Dec. 31, 2013 were $11.1 billion. The company’s investment portfolio is well diversified with an average credit quality of “A.”
“CUNA Mutual Group has clear momentum. We are financially strong, investing in our company for the long term, and committed to credit unions and their members,” said Robert N. Trunzo, President & CEO. “We remain focused on serving hardworking Americans with the products and services they need to build a strong financial future and protect what matters most.”
CUNA Mutual Group continued its strong advocacy for credit unions in 2013, contributing $38 million to support credit union leagues and industry efforts. In 2013, CUNA Mutual Group also invested more than $50 million primarily to strengthen its lending compliance and grow its consumer business. Benefits paid to domestic credit union policyholders in 2013 of $981 million were up eight percent over 2012.
Source: CUNA Mutual Group Company Earnings Reports: 2012, 2013
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 succeed. More information is available on the company’s website at www.cunamutual.com.