MADISON, Wis. — CUNA Mutual Group is reassuring the industry that its operating performance is strong thanks in part to excess capital and revenue growth.
The company said its exposure to AIG, Freddie Mac, Fannie Mae, Lehman Brothers, and Merrill Lynch is less than 0.1% of its general account. That percentage excludes its investments in Freddie Mac and Fannie Mae agency instruments. CUNA Mutual also reported that it had $8.3 billion of cash and investments in its general account at the end of 2007 and it now contains more than $800 million of government and agency securities "as well as a very significant cash position."
"Despite the current economy, CUNA Mutual's operating performance remains strong in 2008–results that follow a three-year period of growing revenues by 25%, doubling our profitability, and increasing benefits to customers by more than $500 million," the company said on its Web site (www.cunamutual.com).
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CUNA Mutual said it has seen a reduction in capital due to economic events however, the company came into "this challenging time with a very strong, excess capital position and we are taking steps to weather this economic crisis."
"We anticipate the difficult economy to continue throughout 2008 and well into 2009. Despite the current economic challenges, we foresee solid operating revenue growth for CUNA Mutual for the remainder of the year and our overall operating outlook is strong," the company said.
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