On the heels of its acquisition of CuneXus Oct. 15, CUNA Mutual Group today announced yet another move to bolster its digital capabilities by acquiring ForeverCar. The Chicago-based start-up company protects vehicle owners from expensive car repairs with Mechanical Repair Coverage (MRC) policies delivered through online channels.
CMFG Ventures, the venture capital entity of CUNA Mutual Group, was an early-stage investor in ForeverCar in October 2016. Combined with the acquisition of CuneXus, adding ForeverCar’s digital platform and marketing capabilities further enhances CUNA Mutual Group’s lending and insurance product portfolio and its ability to reach and protect more consumers digitally.
“Our investments in start-ups such as ForeverCar and CuneXus, coupled with our focus on modernizing and digitizing our product portfolio, are essential efforts in responding to a rapidly evolving consumer experience,” said Robert N. Trunzo, president and CEO, CUNA Mutual Group. “We’ve been committed to helping people achieve financial security for more than 85 years, and lending insurance products, including MRC, have been an essential pillar of how we protect consumers and help them achieve a brighter financial future.”
MRC is a core offering in CUNA Mutual Group’s lending solutions and payment protection products portfolio. The firm will continue to sell its MRC policies through the ForeverCar platform.
ForeverCar currently contracts with 180 credit unions as their official MRC provider. Maintaining those credit union – and member – relationships will be the top priority during the integration process. The acquisition of ForeverCar expands CUNA Mutual Group’s direct-to-consumer channels and provides new growth opportunities.
Terms of the transaction were not disclosed. ForeverCar’s current customers will be fully supported, and the company will continue to operate in its Chicago location.