Fitch Downgrades CUNA Mutual's IFS to 'A'; Outlook Negative

CHICAGO--(Business Wire)--
Fitch Ratings has downgraded the Insurer Financial Strength (IFS) rating of CUNA
Mutual Insurance Society (CUNA Mutual) and its wholly owned property casualty
subsidiary, CUMIS Insurance Society, Inc., to 'A' from 'AA-'.

Additionally, Fitch revised the Rating Outlook to Negative from Stable. Fitch
also withdrew the ratings assigned to the CMG Notes Program, as that program has
terminated.

As a result of today's action on CUNA Mutual, Fitch has also taken action on the
ratings of CUNA Mutual's 50-percent owned affiliate, CMG Mortgage Insurance
Company. That rating action is addressed in a press release also published
today.

The downgrade of CUNA Mutual reflects Fitch's ongoing review of its exposure to
the current credit market turmoil and an expectation of continued deterioration
in 2009. Particular areas of concern in CUNA Mutual's investment portfolio are
its above-average exposure to residential mortgage backed securities and asset
backed securities, which have experienced significant credit deterioration in
2008 and year-to-date 2009. Based on Fitch's investment loss expectations,
likely impairments over the next 12 - 18 months exceed Fitch's threshold for the
prior rating category.

Fitch's ratings also reflect the expectation that operating performance will be
hindered by a further decline in assets under management. Favorably, CUNA
Mutual's ratings consider its strong market position in the credit union
marketplace, conservative reserving practices and solid liquidity. The company
also employs low levels of financial leverage; however, as a mutual insurance
organization, CUNA Mutual's financial flexibility is somewhat constrained.

CUNA Mutual's combined statutory Total Adjusted Capital is estimated at $1.1
billion on Dec. 31, 2008, which is $142 million or 11% less than year-end 2007,
and risk-based capital ratios were 300% and 337% for the life and
property/casualty companies, respectively, in 2008. CUNA Mutual reported a
$148.9 million net loss in 2008 compared to $183.6 million of net income in
2007, which reflects deterioration in its investment portfolio along with lower
earnings in its asset accumulation and commercial products. Fitch expects
investment market conditions to continue to adversely impact CUNA's earnings
during 2009.

CUNA Mutual is a Wisconsin-based mutual insurance organization formed in 1935.
The company's strategic focus is providing insurance and other financial service
products to credit unions and their members. On Dec. 31, 2008, CUNA Mutual had
total consolidated GAAP assets of $13.2 billion and $1.2 billion of GAAP equity.

Fitch's rating definitions and the terms of use of such ratings are available on
the agency's public site, www.fitchratings.com. Published ratings, criteria and
methodologies are available from this site, at all times. Fitch's code of
conduct, confidentiality, conflicts of interest, affiliate firewall, compliance
and other relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, Chicago
Bruce Cox, +1-312-606-2316 (CUNA Mutual)
Dafina Dunmore, CFA, +1-312-368-3136
Media Relations, New York
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

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