Fitch Reaffirms CUNA Mutual Group Financial-Strength Rating
Company’s Efforts at Adapting to Changing Marketplace Viewed Positively
October 18, 2006 MADISON, WI – In reaffirming CUNA Mutual Group’s financial-strength rating, Fitch Ratings views the company’s operational restructuring as a positive step in addressing increasing competition in the credit union marketplace.
Fitch reaffirmed its AA- (Very Strong) rating to the principal companies of CUNA Mutual Insurance Society, its affiliate, CUNA Mutual Life Insurance Co., and CUMIS Insurance Society, Inc., a property and casualty subsidiary. Fitch labeled the company’s rating outlook as “Stable.”
Fitch recognized CUNA Mutual’s improved results for the first six months of 2006, citing improved investment results and expense reductions.
“CUNA Mutual is in the midst of a major operational restructuring led by the company’s new CEO (Jeff Post),” Fitch said. “Key elements of the restructuring include reorganizing and consolidating operations, exiting underperforming businesses and reducing expenses. Fitch views positively the company’s efforts to improve its ability to compete in an increasingly competitive market.”
In reaffirming the AA- rating, Fitch recognized the company’s long-standing relationship to the credit union marketplace that “provides CUNA Mutual a competitive advantage relative to other competitors serving credit unions.” Fitch did acknowledge the challenges CUNA Mutual faces in increasing competition and that “any negative impact on the credit union marketplace exposes CUNA Mutual to potential adverse developments.”
“Fitch has indicated it views CUNA Mutual’s change initiative leadership as a positive step,” said Jeff Holley, Executive Vice President, Chief Financial Officer. “Under Jeff Post’s leadership, we have made excellent progress very quickly and it’s great to see Fitch has taken notice.”
Fitch is a global ratings and research company with an international ratings presence.
CUNA Mutual Group is the leading provider of financial services to credit unions and their members worldwide. More information on the company is available at www.cunamutual.com.