The Iowa Insurance Commissioner has approved CUNA Mutual Group’s plan for a new mutual ownership structure, the company said Wednesday.
The commissioner’s approval was the final step needed for the reorganization to move forward, according to the company. CUNA Mutual said it has targeted Jan. 31, 2012 as the date for the new structure to take effect.
On Sept. 7, 93% of CUNA Mutual’s policyholders voted to approve organizing CUNA Mutual Insurance Society from a mutual insurance company into a mutual insurance holding company structure.
As a mutual insurance holding company, CUNA Mutual said it will continue to be mutually owned with policyholders having full ownership of the new parent mutual holding company entity.
“The conversion to a mutual holding company structure will maintain policyholders’ rights and significantly enhance our ability to compete and serve,” said Jeff Post, president/CEO of CUNA Mutual. “This is a natural and positive next step in our continuing commitment to credit unions and to the successful and proven strategy we have been pursuing in recent years.”
Under the new structure, insurance policies and annuity contracts would remain the same and policyholder benefits and rights would not be reduced or altered in any way, according to CUNA Mutual, adding premiums will not increase.