CUNA Mutual Holding Company and Subsidiaries Interim Financial Results, Unaudited As of June 30, 2014 and December 31, 2013 and For the six months

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1 CUNA Mutual Holding Company and Subsidiaries Interim Financial Results, Unaudited As of June 30, 2014 and December 31, 2013 and For the six months ended June 30, 2014 and 2013

2 Consolidated Balance Sheets, unaudited June 30, 2014 and December 31, 2013 Cash and investments June 30, December 31, Assets Debt securities, available for sale, at fair value $ 8,906,707 $ 8,343,111 Equity securities, available for sale, at fair value 63,458 53,148 Mortgage loans, less vauation allowance 1,398,866 1,378,374 Real estate, at cost, net 53,210 53,037 Policy loans 103, ,020 Equity in unconsolidated affiliates - 81,917 Limited partnerships 684, ,318 Short-term investments, at fair value 19, Student loans, at fair value 18,129 19,046 Other invested assets 125, ,165 Total investments 11,372,514 10,794,124 Cash and cash equivalents 381, ,273 Total cash and investments 11,753,717 11,121,397 Accrued investment income 107, ,367 Premiums receivable, net 363, ,087 Reinsurance recoverables 323, ,804 Receivable from the Federal Crop Insurance Corporation 137, ,340 Net federal income taxes recoverable - 32,942 Deferred policy acquisition costs 423, ,343 Office properties, equipment and computer software at cost, net 171, ,649 Goodwill, net 63,227 63,823 Intangible assets, net 34,270 35,618 Other assets and receivables 171, ,112 Separate account assets 4,517,308 4,632,123 Total assets $ 18,066,438 $ 17,503,605 2

3 Consolidated Balance Sheets, unaudited - continued June 30, 2014 and December 31, 2013 Liabilities June 30, December 31, Liabilities and Policyholders' Surplus Policyholder account balances $ 5,171,588 $ 5,165,348 Claim and policy benefit reserves - life and health 3,168,134 3,066,210 Loss and loss adjustment expense reserves - property and casualty 516, ,699 Unearned premiums 604, ,664 Notes and interest payable 377, ,004 Dividends payable to policyholders 13,514 14,229 Reinsurance payable 183, ,995 Net deferred tax liability 105,150 2,130 Net federal income taxes payable 6,566 - Accrued pension and postretirement benefit liability 168, ,540 Accounts payable and other liabilities 555, ,537 Separate account liabilities 4,517,308 4,632,123 Total liabilities 15,389,157 15,133,479 Policyholders' surplus Retained earnings 2,425,878 2,313,558 Accumulated other comprehensive income, net 251,403 56,568 Total policyholders' surplus 2,677,281 2,370,126 Total liabilities and policyholders' surplus $ 18,066,438 $ 17,503,605 3

4 Consolidated Statements of Comprehensive Income, unaudited Six Months Ended June 30, 2014 and 2013 June 30, June 30, Revenues Life and health premiums, net $ 666,207 $ 661,990 Contract charges 41,676 42,669 Property and casualty premiums, net 412, ,017 Net investment income 274, ,095 Net realized investment gains 19,473 13,816 Commission and fee income 149, ,206 Other income 33,903 16,726 Total revenues 1,598,262 1,542,519 Benefits and expenses Life and health insurance claims and benefits, net 448, ,265 Property and casualty insurance loss and loss adjustment expenses, net 291, ,929 Interest credited to policyholder account balances 67,632 82,024 Policyholder dividends 12,065 15,622 Operating and other expenses 611, ,059 Total benefits and expenses 1,431,774 1,409,899 Income before income taxes and equity income of unconsolidated affiliates 166, ,620 Income tax expense 54,168 44,622 Income before equity income of unconsolidated affiliates 112,320 87,998 Equity income of unconsolidated affiliates, net of tax expense - 1,081 Net income 112,320 89,079 Foreign currency translation adjustment, net of tax 868 (253) Change in unrealized gains (losses), net of tax 201,986 (254,038) Change in pension liability, net of tax (8,019) 10,246 Other comprehensive income (loss) 194,835 (244,045) Total comprehensive income (loss) $ 307,155 $ (154,966) 4

5 Consolidated Statements of Cash Flows, unaudited Six Months Ended June 30, 2014 and 2013 June 30, June 30, Cash flows from operating activities Net income $ 112,320 $ 89,079 Adjustments to reconcile income to net cash provided by operating activities: Undistributed (income) losses of unconsolidated subsidiaries - (1,081) Undistributed (earnings) of limited partnerships 2,754 (17,558) Amortization of deferred policy acquisition costs 146, ,517 Policy acquisition costs deferred (167,074) (152,590) Depreciation of office properties, equipment, software and real estate 17,412 17,344 Amortization of intangible assets Amortization of bond premium and discount (3,538) (3,952) Net realized investment gains (19,473) (13,836) Policyholder charges on investment-type contracts (12,292) (12,979) Interest credited to policyholder account balances 67,632 82,024 Gain on sale of operations (3,788) - Changes in other assets and liabilities Accrued investment income (1,691) (2,640) Reinsurance recoverables 54, ,436 Premiums receivable (74,678) (69,408) Receivable from the Federal Crop Insurance Corporation 3,962 (3,967) Other assets and receivables (13,393) (1,721) Reinsurance payable 9,539 (71,646) Net deferred tax liability (97) 40 Insurance reserves 9,137 (115,510) Unearned premiums 121, ,910 Accrued income taxes 39,489 67,206 Accounts payable and other liabilities (12,214) 21,764 Net cash provided by operating activities 277, ,246 5

6 Consolidated Statements of Cash Flows, unaudited - continued Six Months Ended June 30, 2014 and 2013 June 30, June 30, Cash flows from investing activities Purchases of investments Debt securities $ (669,754) $ (710,228) Equity securities (7,115) (11,360) Mortgage loans (127,273) (172,554) Real estate (2,726) (1,807) Short-term investments (18,026) (4) Limited parnerships (83,129) (59,368) Other invested assets (97,703) (122,047) Proceeds on sale or maturity of investments Debt securities 426, ,658 Equity securities Mortgage loans 106,795 61,090 Real estate 1,405 13,932 Short-term investments Limited parnerships 40,835 61,660 Other invested assets 99, ,455 Purchases of office properties, equipment, and computer software (10,750) (10,893) Proceeds from sales 74,779 - Investment in unconsolidated affiliate - (1,500) Change in policy loans and other, net (691) 947 Net cash used in investing activities (266,281) (386,787) Cash flows from financing activities Policyholder account deposits 527, ,195 Policyholder account withdrawals (594,305) (445,723) Change in bank overdrafts (16,475) (2,114) Payment of debt financing costs (3,185) - Capital lease payments (6,240) (5,510) Notes payable - borrowings 245, ,000 Notes payable - repayments (110,000) (198,000) Net cash used in financing activities 42,715 (103,152) Change in cash and cash equivalents 53,595 (139,693) Effect of foreign exchange rate on cash balances 335 2,887 Cash and cash equivalents at beginning of year 327, ,341 Cash and cash equivalents at end of period $ 381,203 $ 302,535 6

7 Consolidated Statement of Policyholders Surplus, unaudited Six Months Ended June 30, 2014 Accumulated other Total Retained comprehensive policyholders' earnings income surplus Balance, December 31, 2013 $ 2,313,558 $ 56,568 $ 2,370,126 Net income 112, ,320 Other comprehensive income - 194, ,835 Balance, June 30, 2014 $ 2,425,878 $ 251,403 $ 2,677,281 7