MADISON, Wis. – CUNA Mutual Group yesterday said strong performance in its core credit unions business pushed operating revenues up 4% last year to $2.5 billion, and net income inched up 1% to $88 million for the year.
The credit union insurer said the diversification into crop insurance, which boosted profits in 2010, was more of a drain in 2011 as it paid out in crop claims due to natural disasters. However, its core credit unions and wealth accumulation businesses offset the crop insurance losses.
Operating revenue grew 5.4% in 2011, 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, said the company.
Policyholder dividends were down to $30 million in 2011, from $31 million in 2010.
“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,” said Jeff Post, CEO of CUNA Mutual Group.
