Press
Diversification Strategy Aids Strong Financial Results
Jim Buchheim
608.665.6327
jim.buchheim@cunamutual.com
Rick Uhlmann
608.665.8940
rick.uhlmann@cunamutual.com
Despite Weather’s Impact on Crop Insurance, CU Businesses Lift CUNA Mutual Group in 2011
MADISON, Wis. — Bolstered by the performance of its credit union businesses, CUNA Mutual Group posted stronger-than-expected results in 2011, positioning itself to withstand continuing economic pressures in 2012.
The company’s diversification strategy has begun to pay dividends. In 2010, when its credit union business didn’t perform as well, ProAg, CUNA Mutual Group’s crop insurance affiliate, played a significant role in growing the company’s financial results. In 2011, when natural disasters stymied crop insurance results, CUNA Mutual Group’s credit union businesses withstood the year’s economic challenges.
“Our credit union and Wealth Accumulation businesses performed well in 2011, which offset the large amount we paid out in crop claims due to natural disasters,” said Jeff Post, president and CEO of CUNA Mutual Group. “We enter 2012 confidently, focusing on a three-pronged approach to growing our business – continuing expansion in the credit union market, crop insurance and through acquisitions via our recent mutual holding company restructuring.”
Operating revenue grew 5.4 percent in 2011, with more than half of that growth coming from crop insurance. Credit union consumer products (Auto & Home and Life & Health) and Wealth Accumulation offset lending-related revenue due to poor economic conditions. Net income was slightly up, at $88 million, due to strong operating performance and lower investment impairments.
CUNA Mutual Group 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 website at www.cunamutual.com.
CUNA Mutual Group is the marketing name for 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.