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 3.5 million individual policyholders and 8.2 million members that are part of employer groups. Altogether, the firm serves some 28,500 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 4.2% increase in revenues in 2014 to some $6.8 billion due to major increase n revenue from life insurance and annuities along with an increase in health and accident offerings. Profits tumbled 19% to $292 million in 2014. Increases in benefit paid in life insurance annuities offset the higher revenue. Income from investment dropped to $30 million in 2014 from $52 million in 2013.
Mutual of Omaha remains strong and positioned for future growth with total assets of more than $34.5 billion in 2014, up from $32 billion in 2013. The company also has a statutory surplus of some $2.8 billion.
Mutual of Omaha is working to increase its health care and dental coverage. In 2014, it introduced 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.
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.