At its Sept. 7 annual policyholders meeting Sept.7 CUNA Mutual Group said 93% of them approved a new mutual ownership structure for the company.
CUNA Mutual said the policyholders approved the plan to reorganize CUNA Mutual Insurance Society from a mutual insurance company into a mutual insurance holding company structure.
As a mutual insurance holding company, CUNA Mutual will continue to be mutually owned with policyholders having full ownership of the new parent mutual holding company entity. A two-thirds majority was needed for approval, according to the company. More than 80,000 policyholders voted.
The new structure requires regulatory approval from the insurance commissioner in Iowa, where CUNA Mutual Insurance Society is domiciled. The commissioner was scheduled to consider the plan of reorganization at a public hearing Sept. 8, and will issue a final order in the coming weeks, according to CUNA Mutual. If the commissioner approves the plan, the new structure could become effective by Jan. 31, 2012.
"The conversion to a mutual holding company structure will maintain policyholders' rights and significantly enhance our ability to compete and serve," said Jeff Post, president/CEO of CUNA Mutual. "This is a natural and positive next step in our continuing commitment to credit unions and to the successful and proven strategy we have been pursuing in recent years."
In asking policyholders for approval, CUNA Mutual's board of directors said they determined the MHC structure would "enhance the company's ability to access capital and provide much greater flexibility to diversify in a way that not only keeps its focus on credit unions and ultimately strengthens its support of the credit union system."
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