For more information: 
Jim Buchheim 608/232-6327 jim.buchheim@cunamutual.com
Rick Uhlmann 608/231-8940 rick.uhlmann@cunamutual.com
            
Sept. 7, 2007
 
CUNA Mutual Insurance Society Merger Approved
CUNA Mutual Life-CMIS: Larger, Stronger Mutual Insurance Company

MADISON, Wis. – The merger of CUNA Mutual Life Insurance Company (CMLIC) with CUNA Mutual Insurance Society (CMIS) has received approval from the state of Iowa Insurance Commissioner. The Madison, Wis.-based company expects the merger process to be completed by Dec. 31, 2007.

“The merger approved by policyholders and the state of Iowa will create a larger and financially stronger mutual insurance company,” said Jeff Post, president and CEO of CUNA Mutual Group. “The combined companies will make CUNA Mutual Group more efficient, stronger and better able to meet the needs of credit unions and their members.” 

Policyholders of CUNA Mutual Insurance Society (CMIS) and CUNA Mutual Life Insurance Company (CMLIC) overwhelmingly approved merging the two entities on April 20, 2007, and Aug. 2, 2007, respectively. The state of Iowa announced its approval of the merger Sept. 6.

CMIS and CMLIC have operated on an affiliated basis since 1990 when the two companies signed an Agreement of Permanent Affiliation.  Since that time, the CMIS and CMLIC boards have considered merging the two companies.  Until recently, a key obstacle to merger was the existence of a significant, adverse tax provision that imposed a tax on the surplus of mutual life insurance companies.  As a result of recent changes in tax law, merging the two companies will produce a one-time federal tax savings in the range of $15 million to $20 million and an annual savings of about $500,000.

CUNA Mutual Group is the leading provider of financial products and services to credit unions and their members worldwide. More information on the company is available at www.cunamutual.com.