Total Consolidated Assets

Numbers in Billions

Statutory Policy Reserves

Numbers in Billions

Statutory Surplus

Numbers in Billions

Strong Capital Position

In a volatile economy, capital strength gives companies the flexibility to weather the inevitable ups and downs they and their customers will face.

The events of the last few years illustrate the importance of prudent capital management. When the bubble burst, many businesses found themselves in a capital crisis. This erosion of capital, due largely to market declines and losses on risky investments, contributed to the financial crisis that gripped the country.

Mutual of Omaha’s capital position is strong. Thanks to our disciplined balance sheet management and investment strategy as well as our prudent business philosophy, we have avoided drains on our capital. We said “No thank you” to federal bailout money – we did not need it to maintain our financial strength and keep our promises to our customers.

As of Dec. 31, 2011, Mutual of Omaha had $2.3 billion in statutory surplus, a key measure of an insurer’s capital strength. That $2.3 billion represents financial security for our policyholders and ensures we will have the ability to not just survive, but to thrive.

Disciplined Investment Strategy

Mutual of Omaha uses a time-tested, disciplined investment strategy to build the portfolios that support our products for our customers. While investing inherently involves some risk, our thorough investment analysis and decades of experience allow us to build portfolios that offer attractive returns with appropriate levels of risk.

Mutual of Omaha and Insurance Subsidiaries

Invested Assets as of 12/31/2011

Limited Equity Market Exposure

From record-setting peaks to hair-raising declines, dramatic swings in the stock market over the last few years have challenged investors. Mutual of Omaha has limited exposure to the public equity markets. As a result, stock market volatility has not had a material impact on our financial position.

Mutual of Omaha and Insurance Subsidiaries

Bond Portfolio Quality as of 12/31/2011

High Quality Bond Portfolio

Most of Mutual of Omaha’s portfolio – approximately 80 percent – is invested in bonds. Our bond portfolio is very strong, with 95 percent rated as highest or high quality by the National Association of Insurance Commissioners (NAIC). We emphasize investments in those asset classes that can most effectively fund our insurance products while providing adequate risk-adjusted returns.

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