Omaha, Neb. – (March 8, 2010) Mutual of Omaha today reported 2009 consolidated net income of $143.8 million on total revenues of $4.55 billion, compared to net income of $47 million on total revenues of $4.07 billion in 2008.
Robust core product growth, record-setting Medicare supplement sales and lower realized investment losses contributed to the company’s strong results in a challenging economy, said Mutual of Omaha Chairman and CEO Dan Neary.
“Although we’ll continue to be challenged by the economy, these results illustrate that our financial foundation is strong, our business strategy is sound and we’re well-positioned for continued growth and profitability,” he said.
Led by record-setting Medicare supplement sales totaling $469 million, revenue generated by the company’s core products grew by $270 million, or 9.4 percent, in 2009. Net realized investment losses were $31.5 million in 2009 compared with net realized investment losses of $133.7 million in 2008.
While the investment losses show the company is not immune to the economic and market forces, Neary noted that the company’s portfolio produced $958 million in investment income in 2009 and the $31.5 million in net realized investment losses represents significantly less than 1 percent of Mutual’s $19 billion in invested assets.
“Our disciplined investment philosophy has served us well,” Neary said. “We have minimal exposure in the subprime mortgage market, we’ve never invested in hedge funds due to the lack of transparency and our investment portfolio is well diversified.”
Mutual finished 2009 with total surplus, assets and retained earnings at record levels.
Statutory surplus at Dec. 31, 2009 was a record $2.22 billion, up from $2.1 billion at year-end 2008. Consolidated total assets were $23.8 billion, up from $21.2 billion at year-end 2008. Retained earnings were $3.79 billion, up from $3.61 billion a year earlier.
The company reported consolidated pre-tax operating earnings of $235.2 million in 2009 compared with $225.7 million a year earlier.
Mutual of Omaha remains in a very strong financial position, Neary said, thanks to the focused efforts of its workforce, and a consistent strategy that emphasizes growth in core products, a strong extended product portfolio and new business ventures that complement the company’s strengths.
Mutual of Omaha provides insurance, banking and financial services products for individuals, businesses and groups throughout the United States.
Note: Unless otherwise noted, all financial results discussed above are based on Generally Accepted Accounting Principles.
