CUNA Mutual Holding Company
and Subsidiaries
Interim Financial Results, Unaudited
As of September 30, 2013 and December 31, 2012
For the nine months ended September 30, 2013 and 2012
CUNA Mutual Holding Company and Subsidiaries
Consolidated Balance Sheets, unaudited
September 30, 2013 and December 31, 2012
(000s omitted)
September 30,
December 31,
2013
2012
Assets
Cash and investments
Debt securities, available for sale, at fair value
$
Equity securities, available for sale, at fair value
Mortgage loans, less vauation allowance
Real estate, at cost, net
Real estate held-for-sale, at cost, net
Policy loans
Equity in unconsolidated affiliates
Limited partnerships
Short-term investments, at fair value
Student loans, at fair value
Other invested assets
8,279,648
$
8,514,673
53,796
40,218
1,379,133
1,160,648
40,762
35,857
-
10,608
102,802
104,667
80,259
79,099
623,953
604,445
984
2,004
18,913
19,751
104,097
96,776
10,684,347
10,668,746
Cash and cash equivalents
525,641
439,341
Total cash and investments
11,209,988
11,108,087
Accrued investment income
106,609
104,318
Premiums receivable, net
392,365
263,486
Reinsurance recoverables
381,234
571,481
Receivable from the Federal Crop Insurance Corporation
216,175
101,102
Total investments
Net federal income taxes recoverable
-
51,381
Deferred policy acquisition costs
412,553
383,204
Office properties, equipment and computer software at cost, net
174,409
180,289
Net deferred tax asset
57,467
-
Goodwill, net
63,823
63,823
Intangible assets, net
36,024
37,246
Other assets and receivables
96,724
93,838
4,514,880
4,345,841
Separate account assets
Total assets
$
2
17,662,251
$
17,304,096
CUNA Mutual Holding Company and Subsidiaries
Consolidated Balance Sheets, unaudited - continued
September 30, 2013 and December 31, 2012
(000s omitted)
September 30,
December 31,
2013
2012
Liabilities and Policyholders' Surplus
Liabilities
Policyholder account balances
$
Claim and policy benefit reserves - life and health
5,181,952
$
5,152,611
2,999,903
2,890,050
Loss and loss adjustment expense reserves - property and casualty
633,842
712,425
Unearned premiums
610,159
466,811
Notes and interest payable
341,329
264,100
16,158
16,282
193,756
204,188
Dividends payable to policyholders
Reinsurance payable
Net deferred tax liability
Net federal income taxes payable
Accrued pension and postretirement benefit liability
Accounts payable and other liabilities
Separate account liabilities
Total liabilities
-
75,433
49,188
-
214,527
224,376
562,638
494,982
4,514,880
4,345,841
15,318,332
14,847,099
2,280,042
2,151,314
63,877
305,683
2,343,919
2,456,997
Policyholders' surplus
Retained earnings
Accumulated other comprehensive income, net
Total policyholders' surplus
Total liabilities and policyholders' surplus
$
3
17,662,251
$
17,304,096
CUNA Mutual Holding Company and Subsidiaries
Consolidated Statements of Comprehensive Income, unaudited
Nine Months Ended September 30, 2013 and 2012
(000s omitted)
September 30,
2013
Revenues
Life and health premiums
Contract charges
Property and casualty premiums
Net investment income
Net realized investment losses
Commission and fee income
Other income
$
Total revenues
Benefits and expenses
Life and health insurance claims and benefits
Property and casualty insurance loss and loss
adjustment expenses
Interest credited to policyholder account balances
Policyholder dividends
Operating and other expenses
Total benefits and expenses
Income from continuing operations before income
taxes and equity income (loss) of unconsolidated affiliates
Income tax expense
Income from continuing operations before equity
income (loss) of unconsolidated affiliates
Equity income (loss) of unconsolidated affiliates,
net of tax expense (benefit)
September 30,
2012
991,379
64,065
751,658
407,575
31,021
222,198
23,466
$
2,491,362
2,297,756
639,364
632,156
574,910
125,868
23,251
929,147
501,909
118,524
23,085
826,229
2,292,540
2,101,903
198,822
195,853
71,387
59,718
127,435
136,135
1,293
Net income from continuing operations
Gain from discontinued operations
Net income
Foreign currency translation adjustment, net of tax
Change in unrealized gains (losses), net of tax
Change in pension liability, net of tax
Change in discontinued operations, net of tax
Other comprehensive income (loss)
Total comprehensive income (loss)
$
4
946,691
63,646
647,549
400,913
8,672
210,447
19,838
(1,097)
128,728
135,038
-
251
128,728
135,289
24,695
(279,660)
13,159
-
(557)
212,895
7,392
6,593
(241,806)
226,323
(113,078) $
361,612
CUNA Mutual Holding Company and Subsidiaries
Consolidated Statements of Cash Flows, unaudited
Nine Months Ended September 30, 2013 and 2012
(000s omitted)
September 30,
2013
Cash flows from operating activities
Net income from continuing operations
Adjustments to reconcile income to
net cash provided by operating activities:
Undistributed (income) losses of unconsolidated subsidiaries
Undistributed (earnings) of limited partnerships
Amortization of deferred policy acquisition costs
Policy acquisition costs deferred
Depreciation of office properties, equipment,
software and real estate
Amortization of intangible assets
Amortization of bond premium and discount
Net realized investment losses
Policyholder charges on investment-type contracts
Interest credited to policyholder account balances
Changes in other assets and liabilities
Accrued investment income
Reinsurance recoverables
Premiums receivable
Receivable from the Federal Crop Insurance Corporation
Other assets and receivables
Reinsurance payable
Net deferred tax asset
Insurance reserves
Unearned premiums
Accrued income taxes
Accounts payable and other liabilities
Net cash provided by operating activities
5
$
128,728
September 30,
2012
$
60,882
(1,293)
(13,735)
219,104
(232,204)
2,629
(3,358)
160,220
(174,388)
29,537
1,221
(6,523)
(31,021)
(19,620)
125,868
15,744
696
3,278
(12,359)
(12,407)
78,979
(2,234)
190,249
(128,802)
(115,073)
(3,812)
(10,435)
(1,449)
25,222
150,516
100,510
73,015
(1,866)
109,018
(102,927)
20,770
(11,312)
73,626
(233)
(97,878)
179,715
51,547
60,302
477,769
400,678
CUNA Mutual Holding Company and Subsidiaries
Consolidated Statements of Cash Flows, unaudited - continued
Nine Months Ended September 30, 2013 and 2012
(000s omitted)
September 30,
2013
Cash flows from investing activities
Purchases of investments
Debt securities
Equity securities
Mortgage loans
Real estate
Short-term investments
Limited parnerships
Other invested assets
Proceeds on sale or maturity of investments
Debt securities
Equity securities
Mortgage loans
Real estate
Short-term investments
Limited parnerships
Other invested assets
Purchases of office properties, equipment,
and computer software
Investment in unconsolidated affiliate
Change in policy loans and other, net
$
September 30,
2012
(931,958) $
(19,806)
(320,852)
(2,162)
(5)
(87,119)
(176,672)
(1,146,179)
(17,997)
(136,728)
(1,269)
(24)
(44,524)
(178,811)
721,661
2,841
101,366
16,037
991
81,328
205,128
874,436
3,351
50,891
413
1,942
37,833
158,248
(17,037)
(1,500)
1,880
(27,326)
6
Net cash used in investing activities
(425,879)
(425,738)
Cash flows from financing activities
Policyholder account deposits
Policyholder account withdrawals
Change in bank overdrafts
Capital lease payments
Notes payable - borrowings
Notes payable - repayments
567,971
(610,526)
(15,671)
(8,265)
185,000
(111,000)
363,917
(417,671)
(30,140)
(6,210)
162,000
(6,133)
Net cash provided by financing activities
7,509
Change in cash and cash equivalents
Cash flows from discontinued operations
Effect of foreign exchange rate on cash balances
Cash and cash equivalents at beginning of year
65,763
59,399
26,901
439,341
Cash and cash equivalents at end of period
$
6
525,641
40,703
571
(973)
263,434
$
303,735
CUNA Mutual Holding Company and Subsidiaries
Consolidated Statement of Policyholders’ Surplus, unaudited
Nine Months Ended September 30, 2013
(000s omitted)
Accumulated
Retained
earnings
Balance, December 31, 2012
$
Net income
Total
comprehensive
income
policyholders'
surplus
$
128,728
Other comprehensive loss
Balance, September 30, 2013
2,151,314
other
7
2,280,042
$
-
$
305,683
128,728
(241,806)
$
63,877
2,456,997
(241,806)
$
2,343,919