CUNA Mutual Group Profits Down, Revenues Up in 2022
Losses on investments were the biggest drag on earnings as revenue rose.
CUNA Mutual Group’s earnings took a hit last year as interest rates soared and investment values dropped, but its revenues continued to grow.
CUNA Mutual Group is a Madison, Wis.-based company that provides insurance and services, primarily to credit unions. It has roughly 4,200 employees.
CUNA Mutual Group Holding Co. is the parent company. TruStage Financial Group, Inc., is organized as a wholly-owned subsidiary, but currently has the same results as its parent. Later this month, CUNA Mutual Group plans to rebrand its insurance, investment and technology solutions as TruStage, which it established as a consumer brand in 2012.
CUNA Mutual Group’s revenues were $5.2 billion in 2022, up 3% from 2021.
Its net income was $343.3 million in 2022, or 0.8% of the year’s average assets. ROA was down from an unusually high 1.7% in 2021 but better than 2020’s 0.5%. ROA had been about 1.0% in 2018 and 2019.
Net income was diminished by $103.3 million in losses it realized on investments last year, compared with a net gain of $63.1 million in 2021 and a loss of $64.3 million in 2020. Last year’s realized losses included $86.2 million on the sale of debt securities.
After net income, CUNA Mutual reports “comprehensive” income, which includes the effects of non-cash charges.
In 2022, it had a total comprehensive loss of $2.77 billion, reflecting a $3.29 billion increase in unrealized losses. About $2.6 billion of last year’s unrealized losses came from the falling value of corporate bonds available for sale. In 2021 unrealized losses deepened by $505.8 million, and comprehensive income fell 74% to $151.1 million.
In a May 3 news release, CUNA Mutual Group called the 2022 results “another strong financial year” achieved by a diversified mix of products and services and despite “economic volatility.”
“By continually investing in new capabilities to support middle-market consumers, we’re able to further our work of ensuring brighter financial futures for all,” President/CEO Robert Trunzo said.
CFO/EVP Laurie Winger singled out the success in three businesses areas:
- Revenues rose 7% for Preplanning Solutions in 2022 — its first full year in the company.
- Revenue rose nearly 17% for the Fintech Solutions portfolio, which consists of digital-first solutions like Compliance Systems and CuneXus.
- Sales grew 6.6% for lending insurance products — its best year since 2016.
“We’re pleased to deliver strong and stable financial results despite the economic volatility of the past year,” Winger said. “While we anticipate a challenging economic climate to continue in the coming year, CUNA Mutual Group is well-positioned to manage through the ups and downs of the market and will be there when our customers need us the most.”
CUNA Mutual Group paid out $2 billion to customers and their beneficiaries during the year. “Despite volatile markets, the organization successfully managed a more than $30 billion investment portfolio,” its news release said.
CUNA Mutual Group has also invested $293 million to date through its venture capital entity, CMFG Ventures, to help fund what it calls the “next generation of innovators in the financial and insurance industries.” Nineteen portfolio companies now offer products and solutions for credit unions, which have resulted in over 1,000 credit union and fintech partnerships.