MADISON, Wis. (4/12/12)--CUNA Mutual Group posted stronger-than-expected results in 2011, positioning itself to withstand continuing economic pressures in 2012. The company said its bottom line was bolstered by the performance of its credit union businesses and diversification.
Cuna Mutual Group said its 2011 bottom line was bolstered by the performance of its credit union businesses and diversification.
The company's diversification strategy has begun to pay dividends. In 2010, when its credit union business didn't perform as well, ProAg, CUNA Mutual Group's crop insurance affiliate, helped improve the company's financial results. In 2011, when natural disasters stymied crop insurance results, CUNA Mutual Group's credit union businesses withstood the year's economic challenges.
"Our credit union and Wealth Accumulation businesses performed well in 2011, which offset the large amount we paid out in crop claims due to natural disasters," said Jeff Post, CUNA Mutual president/CEO. "We enter 2012 confidently, focusing on a three-pronged approach to growing our business--continuing expansion in the credit union market, crop insurance and through acquisitions via our recent mutual holding company restructuring."
Total operating revenue grew 5.4% to $2.5 billion from $2.4 billion in 2010, with more than half of that growth coming from crop insurance. Credit union consumer products--Auto & Home and Life & Health--and Wealth Accumulation offset lending-related revenue due to poor economic conditions.
Net income was slightly up--at $88 million from $87 million in 2010--due to strong operating performance and lower investment impairments.
Assets increased to $16.5 billion from $15.4 billion in 2010.
To see the CUNA Mutual annual report, use the link.