CUNA Mutual Approves Limited Mutual Holding Company Structure

CUNA Mutual Group’s Board of Directors has approved a new mutual ownership structure designed to enhance capital flexibility and improve CUNA Mutual’s ability to grow.

CUNA says the board unanimously approved a plan to convert CUNA Mutual Insurance Society from a mutual insurance company structure to a mutual holding company (MHC) structure. In the mutual holding company structure, CUNA Mutual will continue to be mutually owned, with policyholders having full ownership of the MHC.

The board believes in a mutual ownership structure, but sees the mutual holding company structure providing more power to successfully implement the company’s strategy and improve its financial strength and long-term growth, says CUNA. The mutual holding company plan must be approved by a two-thirds majority of a policyholder vote. The plan also requires regulatory approval.