INSURANCE EMPLOYEE BENEFITS FINANCIAL SERVICES FULFILLING LIFE 2017 ANNUAL REPORT HC 1009

Transcription

1 INSURANCE EMPLOYEE BENEFITS FINANCIAL SERVICES FULFILLING LIFE 2017 ANNUAL REPORT HC 1009

2 CONTENTS A Message to Our Valued Policyholders and Clients Financial Health Overview...4 Consolidated Statistics...5 Financials* Consolidated Balance Sheets...6 Consolidated Statements of Operations Annual Meeting The 2018 annual members meeting of Ameritas Mutual Holding Company will be held at the mutual holding company home office in Lincoln, Nebraska, at 9 a.m. central daylight time on Wednesday, May 2, *Consolidated audited financial statements and individual insurance company financials are available at ameritas.com or by request at Board of Directors...8 Leadership...9 PROTECTING WHAT IS MOST CHERISHED At Ameritas, we are proud to be in the business of fulfilling life. We offer competitive insurance, employee benefits and financial products and services to customers nationwide. We work hard to understand our customers needs and to design valued insurance and financial solutions to help meet those needs. Our goal is to help enable a life that s rich in family, happiness, health and financial security. Founded in 1887, Ameritas remains committed to building enduring relationships. We are a mutual-based organization, focused on providing value generation after generation. We believe in providing our customers with consistent exceptional service and in serving our communities with purpose. We strive to help our customers make life better, and we do it in so many ways. This is who we are. It s our calling. And we would never want it any other way. When lives are fulfilled, our mission is fulfilled.

3 COMPANY HIGHLIGHTS $3.1 Billion Total Members GAAP Equity $23.1 Billion Total GAAP Assets $3.0 Billion Policyholder Benefits $30.3 Billion Total Assets Under Management $2.2 Billion Total Revenue 4.0 Million Number of Customers FULFILLING COMMUNITY Each year, Ameritas associates contribute thousands of hours to community organizations and civic projects. In 2017, they logged 12,905 hours in volunteer time, helping 771 organizations across the nation. We thank them for their eagerness to extend a helping hand and a kind heart to people in need. Giving back is part of who we are and what we value as a company. That s why Ameritas provided $1.6 million in financial support to strengthen education programs, support nonprofit organizations and help fund projects ranging from local arts to mentoring children. 771 Organizations 12, Volunteer Hours $1.6 Million Through these efforts, our company s fulfilling life commitment touches even more lives in even more ways.

4 Ameritas has a heritage of financial strength and exceptional service. Our commitment is to help our customers live life to the fullest and to be there when they need us. JoAnn M. Martin 2

5 TO OUR VALUED POLICYHOLDERS AND CLIENTS In 2017, we adopted a new operating structure, refreshed our product portfolio and pursued new strategies designed to drive growth. We proudly served our customers and communities that give life to our mission and values at Ameritas. The business we re in is special, and we know what we do makes a difference for people. This understanding gives us energy and shapes our thinking. In 2017, Bill took on an expanded role as president and chief operating officer. While JoAnn remains chief executive officer, Bill now leads our business lines. This is the right structure at the right time for Ameritas as we concentrate on our plans for growth. Financially, we had a good year in For the year ended December 31, 2017, Ameritas grew GAAP pretax income to $157.5 million, up 13.0 percent from. Total GAAP assets rose 8.0 percent to $23.1 billion in 2017, and total insurance revenues, net investment income and other revenue totaled $2.2 billion. Our customer-focused culture reflects our mutual-based structure. We are here to serve our members and help them realize their dreams. Our solid foundation of financial health allows us to provide value to customers over the long term and is reflected in continued strong, stable ratings from Standard & Poor s and A.M. Best Company. Our total GAAP equity increased to nearly $3.1 billion in Our total number of customers, which is about 4.0 million, demonstrates how serious we are about our mission to help make the lives of our customers and their families better. Ameritas paid $3.0 billion in benefit payments to policyholders in There s nothing more important than delivering on the promises we make every day. We bring our hearts to work every day because we know we are making a difference for others. It s a way of thinking that also extends to our community service. Ameritas associates gave 12,905 volunteer hours in 2017, and Ameritas contributed nearly $1.6 million to nonprofit organizations nationwide. We do this because investing in our communities is second nature at Ameritas. It s part of who we are. Thanks to the exceptional service provided by our outstanding associates and field partners, Ameritas is strong and growing. We are exploring new opportunities, setting ambitious goals and laying solid groundwork to get there. We are optimistic about the future. We are fulfilling lives. JoAnn M. Martin, CPA, FLMI Chief Executive Officer William W. Lester, CFA, FLMI President and Chief Operating Officer 3

6 FINANCIAL HEALTH OVERVIEW The core financial health of Ameritas Mutual Holding Company lies within its insurance companies. These include Ameritas Life Insurance Corp. and Ameritas Life Insurance Corp. of New York. Deeply rooted with one of the strongest balance sheets in the industry, the financial health of Ameritas provides the strength and stability that customers expect, and is backed by a tradition of financial stewardship and a commitment to a conservative investment and risk management philosophy. It s also reflected in the strong ratings we ve consistently earned from Standard & Poor s and A.M. Best Company. Solid Capital Position The fundamental basis for a financially healthy company resides within our solid capital position. As one of the largest mutualbased insurance organizations in the country, our nearly $3.1 billion in equity helps protect customers against the uncertainties of today s financial markets and helps to ensure we ll be there when they need us the most. With a focus on capital utilization, operational effectiveness, increased revenue and earnings growth, we are poised to strategically strengthen our position as a top-tier industry leader. Solid Financial Ratings The ratings* assigned to Ameritas Life Insurance Corp. and Ameritas Life Insurance Corp. of New York provide an independent opinion of each insurer s financial strength and ability to meet ongoing insurance policy and contract obligations. Standard & Poor s and A.M. Best Company are recognized among the top authorities in analyzing insurance companies. The Best s Rating Report and Standard & Poor s Full Analysis Report are available in the ratings section of Ameritas.com. A+ Standard & Poor s A+ (Strong) for insurer financial strength. This is the fifth highest of Standard & Poor s 21 ratings assigned. A A.M. Best Company A (Excellent) for insurer financial strength. This is the third highest of A.M.Best s 13 ratings assigned. *Ameritas Mutual Holding Company s ratings by Standard & Poor s include Ameritas Life Insurance Corp. and Ameritas Life Insurance Corp. of New York. 4

7 CONSOLIDATED STATISTICS Total Assets Under Management GAAP Assets (In Billions 5of Dollars) (In Billions of Dollars) GAAP Equity GAAP Revenues (In Billions 0.5 of Dollars) (In Billions of Dollars) GAAP Pretax Operating Income GAAP Pretax Income (In Millions of Dollars) (In Millions of Dollars) Statutory Premiums Life Insurance In Force (In Billions of Dollars) (In Billions of Dollars)

8 CONSOLIDATED BALANCE SHEETS Ameritas Mutual Holding Company and Subsidiaries (unaudited, in thousands) 2017 Assets Investments: Fixed maturity securities $ 10,002,602 $ 9,681,795 Equity securities 518, ,837 Mortgage loans 1,969,464 1,822,541 Loans on insurance policies 411, ,313 Other investments 449, ,311 Total Investments $ 13,350,878 $ 12,775,797 Cash, cash equivalents and restricted cash 382, ,056 Accrued investment income 109, ,014 Deferred acquisition costs and identifiable intangibles 752, ,727 Reinsurance receivables 659, ,335 Other assets 358, ,322 Separate accounts 7,526,296 6,451,688 Total Assets $ 23,140,203 $ 21,434,939 Liabilities and Equity Liabilities: Policy and contract liabilities $ 10,668,062 $ 10,366,567 Deposit liability 1,105,350 1,156,976 Deferred income taxes 127, ,743 Surplus notes payable and borrowings 64,231 64,676 Other liabilities 582, ,174 Separate accounts 7,526,296 6,451,688 Total Liabilities $ 20,074,105 $ 18,681,824 Equity: DECEMBER 31 Retained earnings 2,787,002 2,636,832 Accumulated other comprehensive income 279, ,283 Total Members Equity $ 3,066,098 $ 2,753,115 Total Liabilities and Equity $ 23,140,203 $ 21,434,939 6

9 CONSOLIDATED STATEMENTS OF OPERATIONS Ameritas Mutual Holding Company and Subsidiaries (unaudited, in thousands) 2017 Income Insurance Revenues: DECEMBER 31 Premium income $ 1,145,792 $ 1,125,831 Contract charges 398, ,916 Reinsurance, net (166,863) (175,424) Broker dealer revenues and mutual fund management and related fees 121, ,568 Net investment income 570, ,703 Realized capital gains, net 47,307 93,142 Other income 82,957 70,956 Total Revenues $ 2,200,145 $ 2,220,692 Benefits and Expenses Policy benefits $ 1,213,615 $ 1,165,775 Sales and operating expenses 679, ,951 Interest expense 46,587 44,580 Amortization of deferred acquisition costs and identifiable intangibles 102, ,999 Total Benefits and Expenses $ 2,042,672 $ 2,081,305 Income before income taxes 157, ,387 Income tax (benefit) expense (39,798) 49,778 Net Income Attributable to Members $ 197,271 $ 89,609 7

10 BOARD OF DIRECTORS standing, left to right D. Wayne Silby Founding Chairman Calvert Funds Paul C. Schorr IV Senior Managing Director One Equity Partners Patricia A. McGuire President Trinity Washington University James P. Abel Chairman and Chief Executive Officer NEBCO, Inc. JoAnn M. Martin Chief Executive Officer Ameritas Mutual Holding Company Tonn M. Ostergard President and Chief Executive Officer Crete Carrier Corporation John S. Sid Dinsdale Chairman Pinnacle Bancorp, Inc. sitting, left to right James R. Krieger Vice Chairman and Chief Financial Officer Gallup, Inc. John T. Tad Lawrence III Senior Vice President and Senior Institutional Consultant UBS Financial Services, Inc. Bryan E. Slone Attorney/Of Counsel Koley Jessen, LLC Kim M. Robak Senior Partner Mueller Robak, LLC 8

11 AMERITAS LEADERSHIP JoAnn M. Martin, CPA, FLMI Chief Executive Officer William W. Lester, CFA, FLMI President and Chief Operating Officer Group Division Karen M. Gustin, LLIF Executive Vice President Group Division James J. Barone Individual Division, Ameritas Investment Corp. and Retirement Plans Senior Vice President Group Business Development and MGA Distribution Ryan C. Beasley, CFP, CLU, ChFC, MSFS, LLIF Senior Vice President Shared Agency Distribution Senior Vice President Group National Accounts and Key Partnering Relationships Michael D. Burns Bruce E. Mieth Senior Vice President, Chief Compliance and Risk Management Officer Ameritas Investment Corp. Senior Vice President Group Operations Patrick D. Drew Fleming Kelly J. Wieseler, FSA, MAAA Cheryl L. Heilman President Ameritas Investment Corp. Robert M. Jurgensmeier, FSA, MAAA Senior Vice President, Chief Actuary Individual Division Senior Vice President, Group Chief Actuary and Underwriting Shared Services Brent F. Korte Lisa A. Mullen, CPA, FLMI Senior Vice President and Chief Marketing Officer Senior Vice President Individual Financial Operations Christine M. Neighbors, Esq. Steven J. Valerius, FLMI President Individual Division Senior Vice President and Assistant Secretary April L. Rimpley, LLIF, FLMI Senior Vice President, Human Resources Robert-John H. Sands, CLU, ChFC Ameritas Investment Partners James Mikus, CFA, FLMI President and Chief Executive Officer Senior Vice President, General Counsel and Corporate Secretary Linda A. Whitmire, FSA, MAAA Senior Vice President, Chief Actuary, Corporate Richard A. Wiedenbeck Senior Vice President and Chief Information Officer Susan K. Wilkinson, CPA, FLMI Senior Vice President, Chief Financial Officer and Treasurer 9

12 FULFILLINGLIFE.COM Come interact with us online. You ll find: Year in Review, the digital version of this annual report. Customer stories with videos. Leadership page, where video brings our CEO s message to life. Community stories about our associates helping people in the communities where they live and work. Insights articles with information you can use. See more at FulfillingLife.com. Ameritas Mutual Holding Company 5900 O Street Lincoln, Nebraska Toll Free: This information is provided by Ameritas, which is a marketing name for subsidiaries of Ameritas Mutual Holding Company, including, but not limited to: Ameritas Life Insurance Corp., 5900 O Street, Lincoln, Nebraska, 68510; Ameritas Life Insurance Corp. of New York (licensed in New York), 1350 Broadway, Suite 2201, New York, New York, 10018; and Ameritas Investment Corp., member FINRA/SIPC. Each company is solely responsible for its own financial condition and contractual obligations. Ameritas and the bison design are registered service marks of Ameritas Life Insurance Corp. Fulfilling life is a registered service mark of affiliate Ameritas Holding Company Ameritas Mutual Holding Company connect with us For more information about Ameritas, visit Ameritas.com and FulfillingLife.com. Approved for client use.