News Release

Mutual of Omaha Reports 2010 Financial Results

OMAHA, Neb., March 7, 2012 – Mutual of Omaha today reported 2011 GAAP consolidated net income of $130.0 million on revenues of $5.97 billion, compared with net income of $247.7 million on revenues of $5.31 billion in 2010.

Lower than expected profitability in the company’s Medicare supplement line due to higher than expected claims experience contributed to the dip in 2011 net income.

“Each of Mutual of Omaha’s business units was profitable in 2011, the company experienced vigorous core product growth and our financial foundation remained very strong. This reflects the hard work and dedication of our associates as well as our focused business strategy,” said Mutual of Omaha Chairman and CEO Dan Neary. “We experienced some challenges in our Medicare supplement line, but have taken decisive action to meet these challenges and create a strong foundation for future success.”

Revenue generated by the company’s core products grew by $740.8 million, or 18.7 percent, in 2011. Net realized investment gains were $24.5 million, compared with $49.5 million in 2010.

“Despite the challenges presented by the continuing low interest rate environment, our disciplined investment strategy allowed us to generate more than $1 billion in investment income as well as $24.5 million in net realized investment gains in 2011,” Neary said

Mutual finished 2011 with total assets and retained earnings at record levels.

Consolidated total assets on Dec. 31, 2011 were a record $29.20 billion, up from $26.91 billion at year-end 2010. Retained earnings were $4.17 billion, up from $4.04 billion a year earlier. Statutory surplus ended 2011 at $2.31 billion, compared with $2.58 billion at year-end 2010.

Mutual’s banking operations contributed $39.4 million to 2011 operating earnings.

Note: Unless otherwise noted, all financial results discussed above are based on Generally Accepted Accounting Principles.

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.