Earnings Surge at CUNA Mutual

MADISON, Wis.– CUNA Mutual Group reported yesterday it was able to brave skyrocketing losses from credit card fraud, to post a 36% rise on fiscal year earnings to $178 million. Jeff Post, CEO of the credit union insurer, attributed the gains to the company’s ongoing restructuring--and to some good luck. The luck included far fewer disaster-related claims than 2005to the tune of about $12 million after taxes. Another $11 million was the result of efforts to shrink CMG's tax liability. Post cited $9 million driven by efficiencies gleaned from a leaner workforce and a whopping $42 million in greater investment income. "What is really exciting about this is that we increased our earning by $47 million, or 36%, essentially without collecting increased premiums from credit unions," Post told The Credit Union Journal yesterday. Offsetting a portion of those gains, CUNA Mutual spent $9 million on increasing benefits to credit unions and their members and invested in a number of initiatives, such as the $18 million for the new call center in Fort Worth, Texas.