CUNA Mutual Group said it is selling the majority ownership of its independently managed affiliate The CUMIS Group Ltd. to a business partner of the Canadian company and a Canadian credit union central.
CUMIS's board of directors decided to enter into an agreement with Co-operators Life Insurance Co., and Central 1 credit union, who will assume full ownership of CUMIS by the end of the year, according to CUNA Mutual. The sale amount was not disclosed.
CUMIS became an affiliate of CUNA Mutual in 1977. The company provides insurance and financial solutions to the Canadian credit union system. Its principal companies are CUMIS Life Insurance Co. and CUMIS General Insurance Co.
As of Dec. 31, 2008, CUMIS's assets were almost $1 billion, according to CUNA Mutual. The Burlington, Ontario-based organization has more than 360 full-time employees and seven offices in Canada.
The Co-operators is a cooperative based in Canada that focuses on insurance and investment products for consumers. It is owned by a group of Canadian co-operatives and credit union centrals. Central 1 is a Canadian corporate credit union based in Vancouver, B.C. It serves as a central financial facility, payments clearinghouse and trade association for its member credit unions.
CUNA Mutual President/CEO Jeff Post said the sale will help improve the company's financial strength and simplify its business while allowing it to pursue new avenues of growth.