In the wild kingdom that is today's insurance industry, Mutual of Omaha Insurance Company wants to distinguish itself from the pack. The company provides individual, group, and employee benefits products through a range of affiliated companies. It offers Medicare supplement, disability, illness, and long-term care coverage as well as life insurance and annuities through its United of Omaha Life Insurance unit. Its Mutual of Omaha Investor Services offers brokerage services, pension plans, and mutual funds, while the Mutual of Omaha Bank operates regionally. Mutual of Omaha is owned by its policyholders.
Taking advantage of changes in regulatory restrictions, Mutual of Omaha has expanded into banking through acquisitions. Operating as Mutual of Omaha Bank, it provides commercial and personal banking through nearly 50 locations in 10 states. Its key markets are rapidly growing cities where it already has high numbers of insurance customers. While banking only accounted for 10% of the company's operating results in 2011, it has been growing steadily and the bank intends to eventually offer Internet banking nationwide.
Sales & Marketing
Mutual of Omaha offers its products through its agency sales force and independent agents, as well as via direct marketing.
Mutual of Omaha's revenues and income bounced back from the investment losses it (and most other insurers) incurred in 2008 and 2009. However, weakness in its Medicare Supplement Plan N products prompted Moody's and Standard & Poor's to lower Mutual of Omaha's ratings a notch in 2011. In response, the company halted sales of the product and re-jiggered its premiums to cover the problems. The company's revenues in 2011 ended up exceeding $5.9 billion, representing an increase of more than 12% over 2010. Even though its net income in 2011 dropped by almost half from 2010 to $130 million, mainly due to an increase of about 17% in benefit and expense costs, Mutual of Omaha remains strong and positioned for future growth with total assets of more than $29 billion.
To build up its Retirement Plans division, in 2011 the company struck an alliance with Triad Advisors whereby regional advisors will help to distribute Mutual of Omaha's 401(k) plans. It is also cozying up to third-party administrators (TPAs) by making its retirement products easier to customize for clients.
The company's sponsorship of the long-running Mutual of Omaha's Wild Kingdom introduced it to a generation of Americans. Recognizing that the connection remained strong, the company has revived the television series which now runs on Discovery Communications' Animal Planet cable channel and YouTube.
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