Despite hits from drought and storms, CUNA Mutual Group said this week that it recorded its fourth straight year of earnings growth in 2012.
The Madison, Wis., company said it recorded $150 million in GAAP net income in 2012, up from $83 million in 2011, and that strong operating results in three of its four core credit union businesses helped boost GAAP operating revenue, net income and capital levels over 2011 numbers.
Total operating revenue for 2012 was $2.6 billion in 2012, compared with $2.5 billion in 2011, while operating revenue growth was up 3% last year, compared with a 5% increase the year before.
CUNA Mutual said in its announcement Wednesday that strong operating results, particularly in lending, direct-to-consumer and asset accumulation products, helped offset drought-related losses in crop insurance and weather-related losses in auto and home businesses.
“Solid investment performance also contributed heavily to higher net income in 2012,” the company said in its announcement.
“Strong operating results in our core credit union businesses, prudent expense management and a $40 million reinvestment in a number of those businesses all contributed to very favorable results,” said Alastair Shore, executive vice president and chief financial officer.
The company said its total cash and investments grew to $11.1 billion in 2012, an increase of $1.2 billion over 2011 and that its investment portfolio is well diversified with an average credit quality of “A.”