CUNA Mutual Reports Revenue Up in 2018, Net Income at $215 Million

MADISON, Wis. –CUNA Mutual Group has reported its 2018 financials, noting that in addition to its investments in its solutions, services and workforce, it has also bolstered its philanthropic capabilities by making a $20 million endowment to its Foundation to strengthen corporate and social responsibility work in the communities it serves.

CUNA Mutual’s year-end financial show total revenue rose to $3.7 billion, an increase of 4.5% over 2017, with net income of $215 million and a consolidated GAAP surplus of $3.2 billion. Assets remained “steady” at $20.6 billion with liabilities at $17.4 billion, the company said, adding the “results were achieved while investing a record $195 million in new capabilities to serve customers, enhance their buying and servicing experiences, and meet their needs.”

CUNA Mutual

“In many ways, 2018 was a pivotal year,” said Robert N. Trunzo, CUNA Mutual Group president and CEO. “When I reflect on where we were five years ago, it is remarkable how far we have grown and advanced as a company. We’re innovating and finding new ways to help our customers as we expand and grow in both new and existing markets through acquisitions, investments and fintech partnerships. It is an exciting time at CUNA Mutual Group.”

No Changes to ‘Fundamentals’
CUNA Mutual said it has not changed its fundamental belief in giving back to the community, its support of credit unions and its mission to help ensure everyone has access to a brighter financial future.

The $20 million endowment made to the CUNA Mutual Group Foundation, which celebrated its 50th anniversary in 2018, helps safeguard the important philanthropy work it does to drive positive change in many communities, the company said.
The Foundation donated more than $4.8 million to support community initiatives, and CUNA Mutual Group employees raised more than $600,000 for non-profits while volunteering nearly 16,000 hours of their time, the company added. 
Growth in Innovation and Acquisitions
CUNA Mutual Group noted it acquired three companies in 2018 to expand its footprint in the financial services industry and enhance offerings to its customers. Acquisitions included: 

  • Compliance Systems, Inc.™– a technology company that houses documents for loans and other financial transactions to keep lenders in compliance with government regulations
  • Mirador™ Financial, Inc. – a financial technology startup company that delivers a seamless experience for borrowers and lenders through a completely digital small business lending platform
  • Finivation – a data systems integration and software company that offers real-time data integration for credit unions, community financial institutions and technology providers

‘Testament to Hard Work’

“Our results are a testament to our hard work and focus as we continue to fulfill our purpose,” Thomas J. Merfeld, EVP/CFO. “In 2018, we grew to serve more than 28 million customers and provided more than $1.38 billion to policyholders and their beneficiaries. Increasing our financial strength allows us to invest in new capabilities and build for the future.” 
CUNA Mutual noted A.M. Best Company announced in March 2019 that it affirmed insurance Financial Strength Ratings of A (Excellent) with a stable outlook for CUNA Mutual Group’s key operating entities. Moody’s Investors Service also affirmed Financial Strength Ratings of A2 with a stable outlook for key operating entities in March 2019. 

Support for CUs
CUNA Mutual Group reported during 2018 it contributed $28 million to the credit union system in support of credit union organizations and other industry efforts. That included a $1 million contribution to the Credit Union National Association’s “Open Your Eyes to Credit Unions.” 

Investments in Staff
CUNA Mutual Group said it also continued to look for more ways to be inclusive in serving customers and creating a culture that is supportive of all its employees.
“By signing the CEO Action Pledge for Diversity and Inclusion, I reaffirmed my support for a workplace culture where employees can bring their true selves to work,” said Trunzo. “And, through the launch of our Multicultural Center of Expertise, we now have insights into the unique financial needs of a diverse and growing consumer base—and we’re working to deliver solutions to meet those needs.”

Section: Standard
Word Count: 908
Copyright Holder: CUToday.info
Copyright Year: 2019
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URL: https://www.cutoday.info/THE-market/CUNA-Mutual-Reports-Revenue-Up-in-2018-Net-Income-at-215-Million