Posted September 19, 2008

As you read the headlines and hear the financial news, it's important you know CUNA Mutual stands committed to credit unions, credit union members, and its policyholders through these challenging times.

Despite the current economy, CUNA Mutual’s operating performance remains strong in 2008 — results that follow a three-year period of growing revenues by 25%, doubling our profitability, and increasing benefits to customers by more than $500 million.

CUNA Mutual had $8.3 billion of cash and investments in its general account at the end of 2007. Our general account contains more than $800 million of government and agency securities as well as a very significant cash position. While we have seen a reduction in capital due to economic events, we entered this challenging time with a very strong, excess capital position and we are taking steps to weather this economic crisis.

In addition, CUNA Mutual’s exposure to AIG, Freddie Mac, Fannie Mae, Lehman Brothers, and Merrill Lynch is less than 0.1% of our general account.  (Note: This excludes our investment in Freddie Mac and Fannie Mae agency instruments, which now carry a U.S. Government guarantee.)

Thanks to our solid history, strong operating performance, and actions we’re taking to mitigate and counteract the negative effects of the weak economy, we are confident we will weather this economic downturn.

We anticipate the difficult economy to continue throughout 2008 and well into 2009. Despite the current economic challenges, we foresee solid operating revenue growth for CUNA Mutual for the remainder of the year and our overall operating outlook is strong.