Printer Friendly

DUFF & PHELPS: CUNA MUTUAL INSURANCE SOCIETY CLAIMS PAYING ABILITY RATING REAFFIRMED AT 'AA'

 CHICAGO, July 23 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has reaffirmed the `AA' (Double-A) claims paying ability rating of CUNA Mutual Insurance Society (CUNA Mutual). CUNA Mutual has a strong capital position relative to its insurance risks and benefits from an exceptionally high quality investment portfolio. Somewhat offsetting these strengths are the periodic need for capital infusions into some insurance subsidiaries to support growth and diversification, and reduced profitability of credit insurance products which has slowed surplus growth. The company has a valuable market franchise in the credit union market place.
 CUNA Mutual together with its subsidiaries forms the CUNA Mutual Insurance Group. CUNA Mutual writes group credit life and group credit disability insurance for credit unions and their members. The company also provides group life and health and pension products to credit union employees. CUNA Mutual's insurance subsidiaries write individual insurance products for credit union members, including life/health and personal lines property/casualty insurance. Through a strategic "permanent affiliation" with Century Life of America formed in 1990, the two companies have dedicated a single, common management team to direct all activities of both companies in an integrated manner. The affiliation has resulted in large administrative efficiencies and has provided additional distribution opportunities, particularly in selling individual life and annuity products to credit union members. CUNA Mutual also has property/casualty insurance subsidiaries that provide commercial coverages to credit unions. The Credit Union National Association endorses the CUNA Mutual Insurance Group as the insurance carrier for the credit union movement.
 CUNA Mutual had admitted assets of $1,536 million and total adjusted surplus (surplus, asset valuation reserve, interest maintenance reserve and voluntary mortgage reserve) of $286 million at the end of the first quarter of 1993. The company has very modest exposure to real estate related assets, has a very high grade bond portfolio, and has minimal problem investments. We consider CUNA Mutual's operating leverage (adjusted liabilities to adjusted surplus) of approximately 4 times to be conservative relative to its investment and insurance risks.
 -0- 7/23/93
 /CONTACT: Kevin A. Ceurvorst, CFA, of Duff & Phelps Credit Rating Co., 312-368-3144


CO: CUNA Mutual Insurance Society ST: IN: INS SU: RTG

MP -- NY047 -- 5128 07/23/93 11:58 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 23, 1993
Words:370
Previous Article:DUFF & PHELPS RATES SUBSIDIARIES OF MANULIFE FINANCIAL
Next Article:DUFF & PHELPS: CUMIS INSURANCE SOCIETY, INC. CLAIMS PAYING ABILITY REAFFIRMED AT 'AA'
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters