Strong Financial Momentum Continues for CUNA Mutual Group in 2017
Company's Continued Investment in Innovation and New Technology Delivers Growth Opportunities Benefiting Credit Unions and Consumers
MADISON, Wis., March 15, 2018 /PRNewswire/ -- CUNA Mutual Group continued its record-setting pace in 2017, producing outstanding financial results while delivering innovative, next-generation solutions to help credit unions thrive and people achieve financial security.
Total revenue rose to $3.54 billion, an increase of 8.3 percent over 2016. Net income increased to $303 million, compared to $223 million in 2016. Consolidated GAAP surplus ended the year at $3.37 billion, an increase of 14.3 percent year-over-year. Assets reached a record high at $20.6 billion, up from $18.5 billion the previous year, driven by solid operating and investment performance.
"We are a vibrant and growing company. Our strong business results illustrate our stability as we bring transformation and advancement to an ever-changing financial services marketplace," said Robert N. Trunzo, CUNA Mutual Group president and CEO. "As a leader in our industry, we are evolving and driving our innovation strategy forward to strengthen all aspects of our business – data analytics, technology, our workforce, new products and the customer experience. I'm proud to say that CUNA Mutual Group is disrupting the traditional financial services industry and building for the future."
Over the last year, the company launched CUNA Mutual AdvantEdge Analytics, LLC, a comprehensive data and analytics business that helps credit unions gain better insights to improve the member experience. The company and its subsidiaries, including CMFG Ventures, LLC, also invested in four additional fintech and insurtech startup companies, totaling 11 investments and $65 million in capital.
The company surpassed $6 billion in assets under management (AUM) for annuity products in 2017 and saw annuity sales grow 7 percent year-over-year through CUNA Brokerage Services, Inc., the company's broker/dealer, and financial advisor network. TruStage®, CUNA Mutual Group's consumer brand, also became one of the first companies to bring two entirely online life insurance products to market, making it easier for families to protect their loved ones. In less than a year, the TruStage™ simplified-issue term life insurance product exceeded $1 billion in issued coverage.
Thomas J. Merfeld, executive vice president and chief financial officer, said, "Our financial strength and record balance sheet allow us to invest in new capabilities to serve our customers and continue to stay true to our purpose of helping people secure their financial futures."
During a devastating year of weather-related disasters including hurricanes, wildfires and tornadoes that shook the lives of thousands, CUNA Mutual Group delivered on its promises to credit unions and its policyholders. The company not only paid claims, but led efforts through its disaster response teams who were on the ground, knocking on doors, and ensuring the well-being of policyholders. In addition, the CUNA Mutual Group Foundation, Inc., the company's charitable entity, along with CUNA Mutual Group's employees, donated a total of $400,000 to the National Credit Union Foundation's CUAid disaster relief fund, which gives 100 percent of its donations to credit unions, their employees and their members to recover from major disasters.
CUNA Mutual Group also paid $1.33 billion in benefits to policyholders and their beneficiaries, and continued its vigorous investment in the credit union system by contributing $27 million to support credit union leagues, organizations and industry efforts.
A.M. Best Company recently announced it upgraded CUNA Mutual Group's key insurance companies' Long-Term Issuer Credit Ratings to "a+" from "a" and affirmed the Financial Strength Ratings of A (Excellent) with a stable outlook. The ratings agency also upgraded the Long-Term Issuer Credit Rating of CUNA Mutual Financial Group, Inc., the intermediate holding company within the group, to "bbb+" from "bbb." The ratings reflect CUNA Mutual Group's consistently strong operating results, strong balance sheet and position as a leading provider of life and annuity products within the credit union marketplace.
For more information, see the company's 2017 Annual Report.
About CUNA Mutual Group:
CUNA Mutual Group is a financially strong insurance and investment company. For generations, we've partnered with credit union leaders to protect and grow their businesses, and help people plan, protect and invest for their future. CUNA Mutual Group offers commercial and personal insurance products; lending and payment security solutions; and retirement, investment and marketing services. Additional information about the company can be found 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. TruStage® Insurance products and programs are made available through TruStage Insurance Agency, LLC and issued by CMFG Life Insurance Company and other leading insurance companies.
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SOURCE CUNA Mutual Group
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