TRUSTMARK INSURANCE COMPANY (MUTUAL)

  • Overview

One no longer has to be a railway employee to benefit from Trustmark Mutual, but it helps to be employed somewhere. Established in 1913 as the Brotherhood of All Railway Employees to provide disability coverage to railroad workers, the company still provides workplace benefits in the US. Trustmark offers group health insurance to employer and affinity groups, benefits administration for companies that self-fund, and voluntary benefits (life, disability, and illness insurance) sold in the workplace. To help employers control costs and boost employee health, it also offers patient management through units including Health Fitness and Health Contact Partners. Trustmark Mutual Holding is owned by its policyholders.

Operations

Trustmark Mutual's health insurance products are underwritten by its Trustmark Insurance, Trustmark Life Insurance, and Trustmark Life of New York subsidiaries. Other operating units include CoreSource, a third-party administrator for employees that self-fund their benefits plans, and Trustmark Voluntary Benefit Solutions, which provides worksite voluntary coverage programs on an individual basis.

Its Employer Medical division includes Starmark, which provides group benefit plans and plan administration services to small and midsized employers. The company also maintains a closed block of individual health insurance policies. Altogether, Trustmark covers some 2 million plan participants.

Sales and Marketing

Trustmark sell its products directly to employer groups and individuals, as well as through independent benefit brokerage firms.

Financial Performance

Trustmark increased revenues by 7% to a little over $1 billion in 2011, giving it a second consecutive year of operating earnings growth (after a dip in 2009). The increase in revenues in 2011 was due to a strong sales increase at the Health Fitness division, which grew 49% on new service offerings, as well as incremental growth within the CoreSource (10%, mainly from new contracts), Voluntary Benefit Solutions (7%), and Employer Medical (2%) divisions.

Net income increased 5% in 2011 to some $34 million as a result of higher revenues, slightly offset by higher expenses and realized investment losses.

Strategy

Trustmark expands through organic and non-organic growth measures. Internal growth programs include the addition of new product offerings within its Employer Medical division. For instance, in 2011 Starmark launched its new HealthEdge plan, which provides a flexible health plan option for small employer groups.

The company's CoreSource division expands by adding new third-party administration (TPA) contracts. In 2011 Nippon Life Benefits chose CoreSource to administer its health plan offerings for small and large groups, which added some 850 Nippon-insured groups (and their 13,000 employees) to CoreSource's customer roster.

Mergers and Acquisitions

Trustmark has expanded its health plan, administrative, and wellness offerings through acquisitions. To get fit, in 2010 the company acquired Health Fitness Corporation. The $97 million deal gave Trustmark additional health management services, including corporate wellness, fitness, and disease management programs.

In 2011 Trustmark expanded the Health Fitness network by acquiring the assets of Focused Health Solutions, a provider of population health management services including disease management programs and technology platforms.

▲ Show Less▼ Show Full Description


TRUSTMARK INSURANCE COMPANY (MUTUAL)


400 N Field Dr
Lake Forest, IL 60045-4809
Phone: 1 (847) 615-1500
Fax: 1 (847) 6153816
www.trustmarkins.com

STATS


  • Employer Type: Unknown
  • Ceo; President And Ceo: David McDonough
  • Chb: Donald Peterson
  • Chairman; Chief Technology Officer: Wanda Wiley

Major Office Locations

  • Lake Forest, IL