CUNA Mutual Acquires ForeverCar, Boosting Digital Capabilities
The Madison, Wis.-based organization announces its second major acquisition in less than a month.
In its second acquisition in a month, CUNA Mutual Group announced Thursday the purchase of another start-up company.
The Madison, Wis.-based organization said it had acquired ForeverCar, a Chicago-based start-up that protects vehicle owners from expensive car repairs with “Mechanical Repair Coverage (MRC) policies delivered through online channels.”
The acquisition, according to CUNA Mutual Group, will further boost the digital capabilities for the organization.
According to the announcement, MRC is a core offering in CUNA Mutual Group’s lending solutions and payment protection products portfolio. The firm will continue to sell its MRC policies through the ForeverCar platform. “Combined with the acquisition of CuneXus, adding ForeverCar’s digital platform and marketing capabilities further enhances CUNA Mutual Group’s lending and insurance product portfolio and its ability to reach and protect more consumers digitally,” the statement said.
“Our investments in start-ups such as ForeverCar and CuneXus, coupled with our focus on modernizing and digitizing our product portfolio, are essential efforts in responding to a rapidly evolving consumer experience,” Robert Trunzo, president/CEO for CUNA Mutual Group, said. “We’ve been committed to helping people achieve financial security for more than 85 years, and lending insurance products, including MRC, have been an essential pillar of how we protect consumers and help them achieve a brighter financial future.”
According to the announcement, ForeverCar currently contracts with 180 credit unions as their official MRC provider. The statement from CUNA Mutual Group said, “Maintaining those credit union – and member – relationships will be the top priority during the integration process. The acquisition of ForeverCar expands CUNA Mutual Group’s direct-to-consumer channels and provides new growth opportunities.”
The purchase was made through CUNA Mutual Group’s venture capital arm, CMFG Ventures. Terms of the transaction were not made public. According to the information provided, ForeverCar and its employees will remain in Chicago.