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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

AM Best Affirms Credit Ratings of Mutual of Omaha Insurance Company and Its Subsidiaries

AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings of “aa-” (Superior) of Mutual of Omaha Insurance Company and its subsidiaries, United of Omaha Life Insurance Company, Companion Life Insurance Company (Melville, NY) and United World Life Insurance Company. Concurrently, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IRs) of “a” (Excellent) of Mutual of Omaha Insurance Company’s surplus notes. (Please see below for a detailed listing of the Long-Term IRs.) The outlook of these Credit Ratings (ratings) is stable. The group (collectively referred to as Mutual of Omaha) is domiciled in Omaha, NE, unless otherwise specified.

The ratings reflect Mutual of Omaha’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

Mutual of Omaha’s balance sheet strength is supported by its strongest risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The company has good liquidity with access to an unsecured credit facility, as well as facilities available to the insurance entities through the Federal Home Loan Bank of Topeka. Mutual of Omaha maintains a relatively conservative investment portfolio, which is highly diversified with good credit quality. Operating leverage has been rising the last few years due to its global funding program. However, operating leverage metrics are expected to remain within AM Best’s guidelines and financial leverage is modest.

Mutual of Omaha has reported solid operating results which have been aided by investment income that has increased steadily the last few years. Operating earnings are generated across product segments. The organization has exhibited strong growth in net premiums written (NPW) with a five-year compounded annual growth rate for premiums of more than 10% through 2023. This favorable revenue growth is reflective of Mutual of Omaha’s well diversified portfolio of products. While NPW growth slowed in 2024, sales were strong in several core product lines.

Mutual of Omaha’s favorable business profile is driven by its diversified product portfolio and strong brand name recognition. The company has a top ten market share in several product lines, including group disability and voluntary products, indexed universal life, pension risk transfer by number of contracts and structured settlements. Additionally, Mutual of Omaha is a leading carrier of Medicare Supplement. While Medicare Supplement remains Mutual of Omaha’s largest product in terms of revenue, the portion of revenues from this product has decreased, driven by an increase in sales and revenues in other product lines. AM Best believes that the company’s product suite, distribution network and partnerships are becoming increasingly diverse, supporting its overall favorable business profile.

Mutual of Omaha maintains a formal ERM program, which is assessed as appropriate. The company has clear risk appetite statements that guide it and are embedded in its ERM policy. Furthermore, capital modeling is used to assess risks and allocate capital based upon, and to support, business decisions. In addition, Mutual of Omaha also maintains an ongoing focus on cyber risk capabilities and expansion of its risk culture throughout the organization.

The following Long-Term IRs have been affirmed with stable outlooks:

Mutual of Omaha Insurance Company—

- “a” (Excellent) on $300 million 6.144% surplus notes, due 2064

- “a” (Excellent) on $300 million 6.80% surplus notes, due 2036

- “a” (Excellent) on $300 million 6.95% surplus notes, due 2040

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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