MADISON, Wis. -- To further build its retirement planning brand, CUNA Mutual Group said it has some aggressive plans in the works to acquire businesses in the 401(k) provider space.
The company said it currently offers 4,500 plans to 105,000 participants and is the largest 401(k) provider in the credit union industry with a 60% market share. According to Kevin Thompson, vice president, asset accumulation products at CUNA Mutual, a three-prong strategy has been presented to the company's board that includes maintaining and growing its credit union business, increasing distribution, and buying 401(k) providers.
"We're pretty aggressively looking to acquire businesses in the 401(k) space," Thompson said. "It is a demonstration to the commitment of [CUNA Mutual's] product."
Thompson could not disclose potential acquires at this time but did say CUNA Mutual has hired an investment banker to seek out deals.
Last summer, CUNA Mutual conducted a pilot with five credit unions to test out offering the company's 401(k) plans to employees at member-owned small businesses. Thompson said the pilot has since advanced to full production and now has 63 credit unions involved represented by 89 financial advisers.