MADISON, Wis. — There is a different CUNA Mutual Group today than there was less than a decade ago. For that, credit unions can thank Jeff Post.
Post was an unknown to the often insular credit union community nine years ago when he was named president/CEO of CUNA Mutual, after having previously held the same position at Fireman's Fund. Today he is well-known to many, and even to those for whom the name is not familiar certainly the changes and initiatives he has led are.
Post, 54, plans to step-down as president/CEO at year-end and will be succeeded by Bob Trunzo.
As Post told Credit Union Journal in an
During Post's tenure, the company has grown more profitable, reporting $150 million in net income in 2012 on $2.6 billion in total operating revenue; that figure is up 80% from the $83 million in net income it reported in 2011. It closed 2012 with total cash and investments of $11.1 billion. CUNA Mutual has 450,000 participating policies, which "means we have 450,000 owners," noted Post, the majority of which are credit unions, employees and members.
Post has also overseen investments in a number of companies, including completing the purchase of Amarillo, Texas-based Producers Ag Insurance Group (ProAg), a multi-peril crop insurer, in 2009. That same year it also acquired retirement plan record keeper CPI Qualified Plan Consultants Inc. Great Bend, Kan., in an effort to expand its portfolio of retirement plans.
Also in 2009 it divested itself of its independently operated affiliate, CUMIS Group Ltd., which operated in Canada, selling it to Co-operators Life Insurance Co. and Central 1 Credit Union. Post also oversaw the addition of a large, national customer service center in Dallas/Ft. Worth, as well as expansion of CUNA Mutual's investment team to better manage its cash.
What difference in the company does Post see now vs. when he joined in 2005?
"From a customer standpoint, we certainly have delivered some critical products to credit unions, such as AskAuto and TruStage, at a time when there has been a great need for diversification of income streams," said Post. "We have been trying to help credit unions stay ahead of the game on fee income and revenue. From an inside perspective, the culture inside the company is much different than it was nine years ago. We used to be referred to as 'Mother Mutual' and as the 'Country Club of Madison,' and not just because we owned a golf course (which has since been sold). Last year we were named one of the best employers in Madison. The buzz inside the company is different. Employees are aligned and motivated. They know what it takes for them and for the company to be successful. There's been a cultural transformation."
Before leaving Fireman's Fund, Post said he contacted numerous people prior to joining CUNA Mutual for their perceptions of the company and found that while many "could not put their finger on it," they also felt the "clearly the organization had to change the way it operated and the way people were fronting the organization."
"We want people to feel they want to do business with CUNA Mutual, not that they have to do business with CUNA Mutual because they are a credit union," said Post. "It's impossible to forecast every challenge, and among those that Post said he did not foresee in 2005 is "all the pressure credit unions are under from a regulatory standpoint and a level of complexity. For us and for them, it's increased exponentially since 2008. That's going to remain a challenge going forward. I knew coming in there were some headwinds, but that challenges have been so much greater, such as with Dodd Frank."
Those challenges, particularly around compliance, have driven many to mergers, especially the small and mid-size CUs that make up the bulk of credit unions — and CUNA Mutual's customers. Post said he is well aware of the issues and the resulting fallout.
"There are always things that can be done," he said. "The question is getting everyone in line and in a direction to support them. There is no magic dust. Years ago there was a lot of talk about a common back-office and common platforms for credit unions, and we already do a lot of that, as does CUNA. Moving forward, something does need to be done to relieve some of the stress on these small organizations."
Regardless of asset size, Post said he believes the majority of credit union CEOs understand what CUNA Mutual means to credit unions, including putting between $35 million and $40-million back into the credit union system in various ways. "Not many partners do that," he observed.
Post plans to remain with CUNA Mutual in an advisory capacity through mid-2014. After that, he said he's unsure of his plans. But he indicated he is satisfied with what he helped to accomplish at CUNA Mutual as CEO.
"Hindsight is always 20/20," he said. "The company is larger today, more profitable, and has a better reputation. Policyholders have more surplus behind them. I think there will always be things you wish you could go back and do differently. But I'm very pleased. We've had record surplus and we have strong momentum and a good set of products to help credit unions grow. If you can say the company is better off now than when you got there, you can feel good about what you've done."
