MADISON, Wis. — It's official, barring any unforeseen objections from the Iowa Commissioner of Insurance or Iowa Attorney General, the CUNA Mutual Life Insurance Company and CUNA Mutual Insurance Society will merge sometime later this year.
Just over 93% of the policyholders almost 46,000 CMLIC policyholders voted to approve the merger, which CMIS policyholders had approved in April.
“Merging the two organizations creates efficiencies, flexibility and enhances our combined balance sheet, making us a stronger organization,” said Jeff Post, CUNA Mutual President/CEO. “This vote–a more than 93 percent approval–reflects policyholder understanding of the issue and sends a clear message that our owners agree a single, stronger mutual insurance company is better prepared to meet the future needs of credit unions and their members.”
The companies have long been considered merger candidates, but CUNA Mutual Group said the move previously would have brought a tax liability. A change in tax law has not only removed that penalty, but created an even larger, one-time tax benefit of $15 million to $20 million prompting the Board to move forward with efforts to merge the two entities, the insurer said.
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