Thursday, January 8, 2015

CUNA Mutual Group Financial Strength Affirmed By A.M. Best

A.M. Best Company has affirmed the financial strength rating of CMFG Life Insurance Company (CMFG Life) and MEMBERS Life Insurance Company at “A” (Excellent). A.M. Best also affirmed the “A” (Excellent) rating for CMFG Life’s property/casualty subsidiaries: CUMIS Insurance Society, Inc. and CUMIS Specialty Insurance Company, Inc.  A.M. Best has assigned an issuer credit rating of “bbb” to CUNA Mutual Financial Group, Inc., the intermediate holding company within the group. The outlook for all ratings is stable.

“CUNA Mutual Group is committed to long-term growth," said Alastair Shore, executive vice president and chief financial officer for CUNA Mutual Group. "This confirmation of our financial ratings is important to us as we shape the company that will serve credit unions and members for generations to come.”

In affirming CMFG Life’s “A” rating, A.M. Best cited the company’s “position as the leading provider of insurance and financial services products to credit unions, their employees, and members, strategic changes to the organizational structure to improve capital flexibility, prudent capital management and reduction in investment risk.” Also cited was the company’s modest financial leverage with strong interest coverage.

Regarding CUNA Mutual Group’s property/casualty subsidiaries, A.M. Best recognized their favorable level of risk-adjusted capitalization, conservative balance sheet, overall operating profitability and well-established niche position in the credit union segment. Producers Agriculture Insurance Company and its 100 percent reinsured affiliate, Producers Lloyds Insurance Company both of Amarillo, Texas, which were previously rated with the property/casualty entities, were acquired by HCC Insurance Holdings, Inc. effective Jan. 1, 2015.