Strong operating results in its core credit union business led to earnings growth in 2013 for CUNA Mutual Group, the company said Thursday.
The Madison, Wis.-based firm said it recorded $162 million of net income in 2013, compared to $150 million in 2012.
Strong operating results, particularly in lending, life and health and property & casualty products, helped offset weather-related losses in the company’s crop insurance business, according to CUNA Mutual. Solid investment performance also contributed greatly to higher net income in 2013, the company noted.
GAAP operating revenue grew by 8.6% in 2013, CUNA Mutual said.
An improved lending environment, the company’s focus on investing in and growing its consumer product lines, and growth in its crop insurance business, were also key factors driving last year’s revenue growth.
The company said it continued to build its financial strength. Statutory total adjusted capital of CMFG Life Insurance Co., CUNA Mutual’s lead life insurance company, grew to $1.8 billion in 2013, up $152 million from 2012.
CUNA Mutual’s consolidated GAAP surplus ended the year at $2.4 billion, a decline of 4% from 2012 despite strong earnings due to reduced net unrealized gains in the investment portfolio driven by rising interest rates, according to the company.
A.M. Best recently affirmed CUNA Mutual’s key insurance companies’ ratings at A, the third highest of 16 financial strength categories, with a stable outlook, the company said.
Its total cash and investment holdings as of Dec. 31, 2013 were $11.1 billion and its investment portfolio is well diversified with an average credit quality of A, CUNA Mutual said.
“We are financially strong, investing in our company for the long term, and committed to credit unions and their members,” said Robert Trunzo, president/CEO of CUNA Mutual. “We remain focused on serving hardworking Americans with the products and services they need to build a strong financial future and protect what matters most.”
CUNA Mutual said it continued its advocacy for credit unions in 2013, contributing $38 million to support leagues and industry efforts. In 2013, it also invested more than $50 million primarily to strengthen its lending compliance and grow its consumer business.
Benefits paid to domestic credit union policyholders in 2013 of $981 million were up 8% over 2012.