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 3.8 million individual policyholders and 9 million members that are part of employer groups. Altogether, the firm serves some 30,000 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.
The group offers health, life, and annuity policies to individuals and families, as well. It also offers individual Medicare and group dental products.
Mutual of Omaha Bank provides commercial and personal banking through some 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.
The company operates in 44 states.
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's revenues have grown over the past five years. Revenue increased 5% to $7.2 billion in 2015, thanks to an 8% growth in life and annuity business and a 5% growth in health and accident business. Net investment income rose 5% that year, also boosting earnings.
Higher revenue led to a 14% net income increase to $333 million. The growth across all businesses was partially offset by an increase in health and accident benefits expenses, as well as policy acquisition costs. Cash flow from operations rose 17% to $979 million in 2015.
Mutual of Omaha is working to increase its health care and dental coverage. In 2014, it introduced coverage that provides lump-sum benefits for cancer; heart attack and stroke; and cancer, heart attack, and stroke. In 2015, the insurer expanded its dental coverage to include 200,000 providers and specialists across the US. The network includes national and regional PPO networks. In 2016, the company launched a new disability insurance product as well as its first indexed universal life product.
To further promote the Mutual of Omaha brand, the company became an associate sponsor of the Andretti Autosport racing team. 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.