MADISON, Wis. – CUNA Mutual Group reported positive financial results for 2018, as it continued to invest in its solutions, services and workforce. The company simultaneously bolstered its philanthropic capabilities by making a $20 million endowment to its Foundation to strengthen corporate and social responsibility work in the communities it serves.
Total revenue rose to $3.7 billion, an increase of 4.5 percent over 2017. Net income finished at $215 million, while consolidated GAAP surplus ended the year at $3.2 billion. Assets remained steady at $20.6 billion with liabilities at $17.4 billion. These results were achieved while investing a record $195 million in new capabilities to serve customers, enhance their buying and servicing experiences, and meet their needs.
“In many ways, 2018 was a pivotal year,” said Robert N. Trunzo, CUNA Mutual Group president and CEO. “When I reflect on where we were five years ago, it is remarkable how far we have grown and advanced as a company. We’re innovating and finding new ways to help our customers as we expand and grow in both new and existing markets through acquisitions, investments and fintech partnerships. It is an exciting time at CUNA Mutual Group.”
What hasn’t changed is the company’s fundamental belief in giving back to the community, its support of credit unions and its mission to help ensure everyone has access to a brighter financial future, added Trunzo.
The $20 million endowment made to the CUNA Mutual Group Foundation, which celebrated its 50th anniversary in 2018, helps safeguard the important philanthropy work it does to drive positive change in many communities.
The Foundation donated more than $4.8 million to support community initiatives, and CUNA Mutual Group employees raised more than $600,000 for non-profits while volunteering nearly 16,000 hours of their time.
Growth in Innovation and Acquisitions
CUNA Mutual Group acquired three companies in 2018 to expand its footprint in the financial services industry and enhance offerings to its customers. Acquisitions included:
- Compliance Systems, Inc.™ – a technology company that houses documents for loans and other financial transactions to keep lenders in compliance with government regulations
- Mirador™ Financial, Inc. – a financial technology startup company that delivers a seamless experience for borrowers and lenders through a completely digital small business lending platform
- Finivation – a data systems integration and software company that offers real-time data integration for credit unions, community financial institutions and technology providers
The company also announced a collaboration with Microsoft™ to develop an industry-wide data platform for credit unions that CUNA Mutual AdvantEdge Analytics is bringing to market. CMFG Ventures, LLC, the venture capital arm of the company, continued its focus on fintech and insurtech startup companies and now has investments totaling more than $85 million.
Thomas J. Merfeld, executive vice president and chief financial officer said, “Our results are a testament to our hard work and focus as we continue to fulfill our purpose. In 2018, we grew to serve more than 28 million customers and provided more than $1.38 billion to policyholders and their beneficiaries. Increasing our financial strength allows us to invest in new capabilities and build for the future.”
A.M. Best Company announced in March 2019 that it affirmed insurance Financial Strength Ratings of A (Excellent) with a stable outlook for CUNA Mutual Group’s key operating entities. Moody’s Investors Service also affirmed Financial Strength Ratings of A2 with a stable outlook for key operating entities in March 2019. The ratings reflect CUNA Mutual Group’s consistent operating results, strong balance sheet and position as a leading provider of insurance products and financial services to the U.S. credit union industry.
Continued Commitment to Credit Unions
CUNA Mutual Group contributed $28 million to the credit union system in support of credit union organizations and other industry efforts. This included a $1 million contribution to the Credit Union National Association’s “Open Your Eyes to Credit Unions,” an awareness initiative designed to dispel common myths associated with credit unions – such as accessibility and limits to membership – and help illustrate how consumers can turn to credit unions for any financial decision, large or small.
Investing in Our People
CUNA Mutual Group also continued to look for more ways to be inclusive in serving customers and creating a culture that is supportive of all its employees.
Trunzo said, “By signing the CEO Action Pledge for Diversity and Inclusion, I reaffirmed my support for a workplace culture where employees can bring their true selves to work. And, through the launch of our Multicultural Center of Expertise, we now have insights into the unique financial needs of a diverse and growing consumer base—and we’re working to deliver solutions to meet those needs.”
For more information, see the company’s 2018 Annual Report.
About CUNA Mutual Group:
CUNA Mutual group is a financially strong insurance and financial services company enabling people to make financial decisions that work for them. The company was built on the principle of “people helping people” and the belief that a brighter financial future should be accessible to everyone. For more information, visit www.cunamutual.com.
CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Corporate headquarters are located in Madison, Wis.