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.
Mutual of Omaha has a customer base of 3.4 million individual policyholders and 7.2 million members that are part of employer groups. Altogether, the firm serves some 24,500 such employer groups. Accident and health policy sales account for more than half of annual revenues, while life and annuity products make up more than a quarter of sales. Mutual of Omaha's products are divided into three operating divisions: The individual financial services (IFS) unit provides health, life and annuity policies to individuals and families, while the group benefit services (GBS) unit issues policies for employees. Certain supplemental disability, accident, and illness products, as well as individual Medicare and group dental products, are offered through the divisions as well.
The third division consists of the Mutual of Omaha Bank, which provides commercial and personal banking through nearly 50 locations in 10 states. Taking advantage of changes in regulatory restrictions, Mutual of Omaha expanded into banking through acquisitions. Offering products including savings and checking accounts, consumer and business loans, and deposit certificates, the bank's key markets are rapidly growing cities where Mutual of Omaha already has high numbers of insurance customers. While banking accounts for a small portion of the company's operating results, it has been growing steadily and the bank intends to eventually offer Internet banking nationwide.
Sales and Marketing
Mutual of Omaha offers its individual products through its career agents, direct sales representatives, and independent agents, while its group offerings are provided through employee benefit consultants and brokers.
Mutual of Omaha reported an 8% increase in revenues in 2012 to some $6.4 billion due to increased sales of core product lines, as well as higher net investment income. Profits also rose more than 150% to $283 million as a result of the increase in revenues and a decline in benefit-related expenses (on accident and health policies).
Mutual of Omaha remains strong and positioned for future growth with total assets of more than $31 billion in 2012, up from $29 billion in 2011. The company also has a statutory surplus of some $2.4 billion. About 70% of its investments are in bonds.
Mutual of Omaha is working to double the size of its retirement plan distribution network by partnering with key brokers and dealers across the US. Towards that end, in 2012 Mutual of Omaha struck an alliance with Securities America; through the deal, the financial advisors at Securities America will sell and support Mutual of Omaha retirement products. The company struck a similar deal with Triad Advisors in 2011. The company is also cozying up to third-party administrators (TPAs) by making its retirement products easier to customize for clients.
To further promote the Mutual of Omaha brand, the company became an associate sponsor of the Andretti Autosport racing team in 2013. Mutual of Omaha is also a sponsor of the US Olympic swim team.
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.