MADISON, Wis.-CUNA Mutual Group reported that losses on its investments created a fiscal-year loss of $148.9 million for 2008.
The 2008 loss, which reflects the falling market value of its investment portfolio, along with lower earnings in its asset accumulation and commercial products, compares to net income of $183.6 million for 2007.
CUNA Mutual's combined statutory Total Adjusted Capital declined 11% in 2008 to $1.1 billion. Fitch Ratings recently downgraded CMG's Insurer Financial Strength and its wholly owned property casualty subsidiary, CUMIS Insurance Society, to 'A' from 'AA'-' Fitch also revised the rating outlook for the insurer to "negative" from "stable" and placed CMG's 50% owned subsidiary CMG Mortgage Insurance on its Rating Watch Negative because of the downgrade of the parent.
Jim Buchheim, chief spokesman for CUNA Mutual, acknowledged the market's impact on the company. "CUNA Mutual is not immune to market events, but even in the current economic environment we remain financially strong," said Buchheim. "Our ability to pay claims has not been impeded and we remain well capitalized. In providing us with a strong rating, we're pleased Fitch continues to recognize our conservative reserving practices and solid liquidity."
