Mutual of Omaha Reports 2010 Financial Results
OMAHA, Neb., March 7, 2011 – Mutual of Omaha today reported 2010 consolidated net income of $247.7 million on revenues of $5.31 billion, compared with net income of $143.8 million on total revenues of $4.55 billion in 2009.
Vigorous core product growth, record-setting Medicare supplement sales, positive banking results and realized investment gains contributed to the company’s strong 2010 results, said Mutual of Omaha Chairman and CEO Dan Neary.
“All of our business units experienced healthy profitability in 2010, which is a testament to the hard work and dedication of our associates as well as our focused business strategy,” Neary said. “By concentrating on our core products, supplemented by a well-rounded extended product portfolio and complementary business ventures such as banking, we have created a strong foundation for future success.”
Led by record-setting Medicare supplement sales totaling $805 million, revenue generated by the company’s core products grew by $564 million, or 17.9 percent, in 2010. Net realized investment gains were $49.5 million, compared with net realized investment losses of $31.5 million in 2009.
“Our disciplined investment philosophy has served us well.” Neary said. “Despite the continuing low interest rate environment, our well-diversified investment portfolio generated more than $1 billion in investment income as well as $49.5 million in realized gains in 2010.”
Mutual finished 2010 with total surplus, assets and retained earnings at record levels.
Statutory surplus at Dec. 31, 2010 was a record $2.58 billion, up from $2.22 billion at year-end 2009. Consolidated total assets were $26.9 billion, up from $23.8 billion at year-end 2009. Retained earnings were $4.04 billion, up from $3.79 billion a year earlier.
The company reported consolidated pre-tax operating earnings of $317.4 million in 2010 compared with $235.2 million a year earlier. Formed in 2007, Mutual of Omaha Bank contributed $32 million to 2010 operating earnings.
Mutual of Omaha is a full-service, multi-line organization providing insurance, banking and financial products for individuals, businesses and groups throughout the United States.