MADISON, Wis. – –Write-offs related to the subprime mortgage market took a big chunk out of CUNA Mutual’s investment portfolio in 2007, even as the credit union insurer reported an 11% rise in net income for the year, to $201 million.
Despite the higher earnings, the company had to write off approximately $150 million in losses from various mortgage-backed securities in 2007, according to Jeff Post, CEO of CUNA Mutual. A lot of securities are impaired," Post said in an interview with the Credit Union Journal. "But the net-net is we realized a $20 million loss on the entire investment portfolio."
The rise in revenues last year was due to a 9% increase in revenues, to $3.1 billion, plus a $20 million tax benefit from the merger of the companies two main subsidiaries, as well as reductions in expenses.
