MUTUAL INSURERS
Mutual of Omaha Board Approves Reorganization as Mutual Holding Company
OMAHA, Neb. //BestWire// - Mutual of Omaha Insurance Co. is considering a reorganization plan that would see it brought under a mutual holding company structure owned by policyholders, which it said would improve access to debt markets.
Last month, Mutual of Omaha's board of directors approved and adopted a reorganization plan to become a stock insurer whose shares will be held indirectly by a to-be-formed Mutual of Omaha Holding Co, the company said in a supplemental paragraph to a 2024 financial statement.
"The plan of reorganization is subject to and expressly contingent upon the approval of at least two-thirds of the eligible members of Mutual of Omaha voting in person or by proxy at a meeting of the company's members," the report said. "United of Omaha will remain a stock insurance company and wholly owned subsidiary of Mutual of Omaha."
United of Omaha Life Insurance Co. is currently a stock insurer that is a subsidiary of Mutual of Omaha.
A company spokesman said in an email the company is working toward a policyholder vote in March 2026.
Formation of a mutual holding company could see a mutual insurer create a downstream stock company with shareholder ownership. "It is important to understand that this is not a demutualization or a step toward demutualization, and there is no plan to issue stock or to bring in external shareholders," the email said. "While a mutual holding company structure provides access to new and more economical debt markets, we are not required to access them if debt market conditions are unfavorable."
The plan would ensure the continuation of the company's "mutuality, customer focus and culture," the email said. Current market turmoil prompted by U.S. tariffs does not impact the effort, the spokesman said.
Founded in 1909, Mutual of Omaha has more than 5.6 million individual product customers, 18.1 million members and 54,000 employer groups, according to company information. It offers insurance and financial products and services in all 50 states.
Mutual of Omaha reported $11.86 billion in total admitted assets as of Dec. 31, according to an audited statement. That was up from $10.98 billion a year earlier, according to the statement. The company reported total surplus of $4.15 billion at the close of 2024, up from $3.98 billion in the prior year, according to the statement.
The financial data puts Mutual of Omaha among a list of mutual life insurers who reported strong performance in 2024.
Northwestern Mutual Life Insurance Co. said in February it had a record surplus of $40 billion during 2024, which grew by more than $1.9 billion from the prior year as total revenue reached more than $38 billion, the company said (BestWire, Feb. 21, 2025).
Operating entities of Mutual of Omaha Insurance Co. have current Best's Financial Strength Ratings of A+ (Superior).
(By Terrence Dopp, senior associate editor, Best’s Review: Terry.Dopp@ambest.com)