MADISON, Wis. - CUNA Mutual Group is exploring a merger that would unite its CUNA Mutual Life Insurance Company (CUNA Mutual Life) in Waverly, Iowa, and its CUNA Mutual Insurance Society (CUMIS) here, and changing the company's state of domicile to Iowa.
The two moves are part of the company's three-year improvement plan, with the proposed merger allowing CUNA Mutual to manage the two companies as one, while the change in domicile allows the company to be regulated by only one state regulator instead of two.
While the merger is still under consideration by CUNA Mutual's board, the firm cited a number of potential benefits to the marriage. "This benefits both us and our customers in a number of different ways," said Rick Uhlmann, CUNA Mutual spokesman. "It creates a more streamlined governance structure, making it a more efficient, well-run business that is easier to manage. Additionally, for policyholders, they would have the financial strength of both organizations as one.
This is not the first time CUNA Mutual has considered bringing these two parts together, Uhlmann said, noting the idea was discussed when CUNA Mutual Life was first brought on board-then as Century Life-in 1990. The idea has also been kicked around since then.
While the change in domicile will mean that only Iowa's regulatory agency will have oversight over CUNA Mutual's insurance companies, the firm's main headquarters will remain in Madison, Wis., and no jobs will be affected by the move. Currently, both Iowa and Wisconsin have regulatory jurisdiction over the firm's insurance companies.
The company plans to bring the proposal to a vote of all policy owners by yearend.
