News Release

Mutual of Omaha Reports 2014 Financial Results

OMAHA, Neb., March 6, 2015 – Mutual of Omaha today reported record 2014 GAAP pre-tax operating income of $509.5 million on revenues of $6.9 billion, compared with operating income of $491.6 million on revenues of $6.6 billion in 2013.

After one-time charges related to the refinancing of surplus notes to substantially lower interest rates and certain pension-related costs, consolidated net income was $291.7 million in 2014, compared with $359.2 million a year earlier.

"With record-setting operating income and revenue, Mutual of Omaha continues to record very strong earnings and exceptional financial stability. These excellent results reflect the hard work and dedication of our leaders, associates and sales professionals, who I consider the best in the industry," said Chairman and CEO Dan Neary.

"While our net income was reduced by one-time charges, both actions serve to strengthen our long-term capital position," he said. "This is indicative of our mutual structure, which allows us to make long-term decisions for the benefit of our policyholders rather than acting for short-term gains."

Strong performance across Mutual's business units and operations, including the exceptional strength of the company's individual Medicare supplement line, growth in voluntary employee benefits products and consistent banking results contributed to 2014 earnings.

Net realized investment gains for 2014 were $30 million, down from $52 million in 2013, when the company experienced record private equity investment returns.

Mutual finished 2014 with total assets, retained earnings and statutory surplus at record levels.

Consolidated total assets on Dec. 31, 2014 were a record $34.5 billion, up from $32.2 billion at year-end 2013. Retained earnings were $4.9 billion, up from $4.6 billion a year earlier. Statutory surplus ended 2014 at $2.8 billion, compared with $2.7 billion at year-end 2013.

"Mutual of Omaha remains financially strong, customer focused and committed to operational excellence. We firmly believe we are well positioned for continued success," Neary said.

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.