Mutual of Omaha’s Strategic Structural Overhaul
Mutual of Omaha Insurance Co. has unveiled plans to restructure under a mutual holding company framework that will remain under policyholder ownership. This strategic move is designed to bolster the company’s access to debt markets while preserving its mutual ownership ethos.
According to a supplementary note within its 2024 financial documentation, the board of directors sanctioned this reorganization initiative last month. The proposal will transition Mutual of Omaha into a stock insurer, with its shares held indirectly by a new entity, the Mutual of Omaha Holding Co.
Approval from at least two-thirds of the eligible voting members is mandatory for the reorganization to proceed. This voting process can occur either in person or by proxy at an upcoming meeting.
Importantly, United of Omaha Life Insurance Co., a current stock insurer and subsidiary, will continue to be fully owned within this new structure.
According to a report by AM Best, a company representative indicated that Mutual of Omaha is targeting a policyholder vote in March 2026. The company has reaffirmed that this plan is not tantamount to demutualization, with no intentions to issue stock or solicit external shareholders.
“It’s crucial to understand that this is not a demutualization or a precursor to one. No stock issuance or external shareholder involvement is planned,” the company stated. “The mutual holding company structure provides access to more economical debt markets, though we are not obligated to engage them if market conditions are adverse.”
The spokesperson highlighted that the proposed arrangement would allow the company to preserve its mutuality, customer-centric focus, and corporate culture. The plan is designed to withstand current market volatility, including those issues related to US tariffs.
Established in 1909, Mutual of Omaha serves over 5.6 million individual product customers and 18.1 million members within 54,000 employer groups, offering a wide range of insurance and financial services across all 50 states.
As of 2024, the US hosts a significant number of mutual insurance companies. The National Association of Mutual Insurance Companies (NAMIC) represents nearly 1,500 member entities, including seven of the top 10 property/casualty insurers nationwide.
The mutual insurers’ combined ratio for Q2 2024 was 103.6, showcasing an improvement from 113.7 in the same quarter of 2023, indicating better underwriting and operational proficiency.
Moreover, the policyholders’ surplus for the US property/casualty mutual sector at the end of 2023 was close to $400 billion, marking an uptick from the previous year. This growth was chiefly fueled by a resurgence in the equity market, resulting in unrealized capital gains exceeding $18 billion from 2022 to 2023.
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