MADISON, Wis. (2/21/14)--CUNA Mutual Group Thursday reported a net income increase of 7.8% for 2013. Net income rose to $162 million, compared with $150 million in 2012.
Strong operating results in lending, life, health and property and casualty products helped offset weather-related losses in the company's crop insurance business. Solid investment performance also contributed to higher net income in 2013, the company said.
"Low catastrophic losses in our auto and home and credit union protection products helped offset weather-related losses from our crop insurance business," said Alastair Shore, executive vice president and chief financial officer. "We continue to invest in new capabilities to grow our core credit union businesses, while improving our already strong capital position."
Operating revenue increased by 8.6% in 2013. A better lending environment, and improvements in consumer product lines and the crop insurance business, were key factors driving the year's revenue gain.
"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 President/CEO Bob Trunzo. "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's total cash and investment holdings as of Dec. 31 were $11.1 billion. The company's investment portfolio is well diversified with an average credit quality of "A."
CUNA Mutual Group contributed $38 million to support credit union leagues and industry efforts in 2013. The company 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 8% over 2012.
Statutory total adjusted capital of CMFG Life Insurance Co., CUNA Mutual Group's lead life insurance company, increased to $1.8 billion in 2013, up $152 million from 2012. The company's consolidated generally accepted accounting principle surplus ended the year at $2.4 billion, a decline of 4% from 2012 despite strong earnings. 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.