MADISON, Wis.–CUNA Mutual Group is reporting strong 2016 financial earnings and operating results, including record revenues and income for the third straight year.
Total revenue rose to $3.3 billion, an increase of 4.7% from 2015. Net income increased 2.8% from the previous year to $223 million, which is attributed to growth in its core business units, positive claims experience and strong investment performance, the company said.
“Our strong earnings and financial standing enable us to continue to grow, invest, and innovate around our credit union customers and members,” said Robert N. Trunzo, president and CEO, CUNA Mutual Group. “As an innovative, data-driven company focused on superior customer experience, we will continue to transform our business to help credit unions make it easier for millions of consumers to plan, protect and invest in their future.”
CUNA Mutual Group said it continues to use its strong financial performance to invest in serving credit unions and consumers. In the past year, the company’s investments focused on new channels and solutions, consumer insights, advanced data analytics, emerging digital platforms, and the overall customer experience. CUNA Mutual Group also launched its venture capital entity, CMFG Ventures, which invests in startup companies that bring new technology to credit unions and their members.
A.M. Best Company recently announced it affirmed CUNA Mutual Group’s key insurance companies’ Financial Strength Ratings at “A” (Excellent) with a stable outlook. The ratings agency also assigned an Issuer Credit Rating of “bbb” to CUNA Mutual Financial Group, Inc., the intermediate holding company within the group. A.M. Best cited that the company’s ratings reflect its position as the leading provider of insurance and financial services to credit unions, their employees and members.
“CUNA Mutual Group is a financially strong and growing organization,” said Thomas J. Merfeld, executive vice president and chief financial officer. “Serving credit unions and members is the core of our business, and our growth enables us to invest in new ways that help credit unions and their members build financial security.”
CUNA Mutual said its consolidated GAAP surplus ended the year at $2.9 billion, an increase of 8% from 2015, driven by solid operating and investment performance. Furthermore, CUNA Mutual Group delivered on its obligations to policyholders and their beneficiaries by paying $1.2 billion in benefits.
In addition, the company continued its vigorous investment in the credit union system, contributing $26 million to support credit union leagues, related organizations and other industry efforts. CUNA Mutual Group also contributed $2.1 million to important non-profit causes in the communities where the company operates.