Credit union and individual policyholders overwhelmingly approved a new mutual ownership structure for CUNA Mutual Group at the 2011 annual meeting of policyholders Wednesday.

More than 93% of policyholders who voted approved the plan to reorganize CUNA Mutual Insurance Society from a mutual insurance company into a mutual insurance holding company structure, the company said.

The CUNA Mutual Group board had approved the plan at its June meeting.

As a mutual insurance holding company, CUNA Mutual Group will continue to be mutually owned with policyholders having full ownership of the new parent mutual holding company entity.

A two-thirds majority was needed for approval. More than 80,000 policyholders voted, the company said.

The new structure requires regulatory approval from the insurance commissioner in Iowa, where CUNA Mutual Insurance Society is domiciled.

The commissioner will consider the reorganization plan at a public hearing on Thursday and issue her final order in the coming weeks, CUNA Mutual said. If the commissioner approves the Plan of Reorganization, the new structure could become effective by Jan. 31, 2012. 

“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 Group. “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.”

In asking policyholders for approval, the CUNA Mutual Group board said it determined the MHC structure would enhance the company's ability to access capital and provide much greater flexibility to diversify in a way that keeps its focus on credit unions and ultimately strengthens its support of the credit union system and all policyholders.

Insurance policies and annuity contracts would remain the same and policyholder benefits and rights would not be reduced nor altered in any way, the company said, nor will premiums increase as a result of the MHC reorganization.