Weather-related losses this spring took a toll on CUNA Mutual Group’s net income in the first half with a drop to $51 million from $63 million a year ago.
In a report this week, CUNA Mutual said that “like most property and casualty insurance companies” it incurred more weather-related losses in the first half of 2011 than in all of 2010.
Spring tornadoes in northern Alabama and Joplin, Mo along with Midwest flooding and the Southwest drought resulted in losses in auto and home business and the insurer’s crop insurance program, CUNA Mutual said.
Nonetheless, said the report, “solid performance from CUNA Mutual’s lending and financial services products offset the weather-related losses.” Under GAAP rules, operating revenue grew 2.3% during the first half.
In addition, the firm’s statutory total adjusted capital grew to $1.45 billion through June, up $30 million from year-end 2010.
"Weather-related losses are part of the unpredictable nature of the insurance business," said Jerry Pavelich, chief financial officer. "Despite those losses, our other financial measurers continue to head in the right direction, and we continue to execute on initiatives that are within our control."