Fulfilling Insurance Fulfilling Employee Benefits Fulfilling Financial Services Fulfilling Life Annual Report HC 1020

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1 Fulfilling Insurance Fulfilling Employee Benefits Fulfilling Financial Services Fulfilling Life 2016 Annual Report HC 1020

2 Table of Contents 2017 Annual Meeting A Message From Our President and Chief Executive Officer Financial Health Overview Consolidated Statistics Financials* Consolidated Balance Sheets Consolidated Statements of Operations... 7 The 2017 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 3, *Consolidated audited financial statements and individual insurance company financials are available at ameritas.com or by request at Board of Directors Leadership 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 people helping people in the communities where they live and work. Fulfilling Insights articles with information you can use. See more at FulfillingLife.com. We are Ameritas At Ameritas, fulfilling life is what we do daily. This is our calling. We offer competitive insurance, retirement and investment products. And we service them in a highly welcoming, ethical and professional manner that builds lasting trust and enduring relationships. We re here to help customers put worry behind and a brighter future ahead. And to help enable a life that s rich in family, happiness, health and financial security. When lives are fulfilled, our mission is fulfilled. As a mutual-based organization, we always put our customers first. With our long-standing financial strength, we ve established a tradition of striving to deliver the very best in products and services generation after generation. Although we re proud of our ratings from Standard & Poor s and A.M. Best Company, we measure our success by how many people we ve helped. By how many promises we've kept. That s the true measure of who we are. We are Ameritas: Proud to say we re in the business of fulfilling life.

3 Company Highlights $2.6 Billion $21.4 Billion $25.8 Billion Total Members Realized Equity Total GAAP Assets Total Assets Under Management $2.2 Billion $2.6 Billion 3.8 Million Total Revenue Policyholder Benefits Number of Customers Fulfilling Community What could be more fulfilling than making a positive difference in someone s life? Nurturing a child through mentoring. Extending a helping hand and a kind heart to people in need. Providing funds to strengthen education programs. Supporting the local arts. Giving back is part of who we are and what we value as a company. And we re so proud of the thousands of volunteer hours Ameritas associates contribute each year to community organizations and civic projects. In 2016, Ameritas associates logged nearly 18,700 hours in volunteer time, helping 320 organizations across the nation. This company-wide effort exemplifies how we embrace our fulfilling life commitment to help people enjoy life at its very best.

4 2 We take pride in the nature of our mutual structure, which allows us to focus on providing value and being good stewards of the resources people entrust to us for the long term.

5 To Our Valued Policyholders and Clients It was a busy and productive year for Ameritas in 2016, marked by growth and change as we sharpened our plans for the future. We actively pursued growth through acquisitions, which had a positive impact on all of our insurance lines of business. We expanded our distribution opportunities and introduced innovative new products. As part of our review of our strategy, we decided to sell the assets of Calvert Investments in 2016 after concluding that Calvert, while a great company, didn t fit with our long-term strategy. Our industry faced a challenging interest rate environment in 2016, which prompted us to revise our future view of economic assumptions that are reflected in GAAP pretax income of $139.4 million in For the year ended December 31, 2016, Ameritas posted a 4.6 percent increase in total GAAP assets to $21.4 billion, which was a record for the company. Total insurance revenues, net investment income and other revenue increased a strong 8.5 percent, growing to $2.2 billion in I want to express our deepest appreciation to Michael Cambron and Robert Willis, who retired from the Ameritas board of directors in We are grateful for their leadership and wisdom and wish them both all the best. I am confident 2017 will be a good year for Ameritas, based on the excellent foundation we have built. We welcome our new policyholders and customers to the Ameritas family as we help you achieve your dreams. I want to recognize our associates and our growing number of field partners for their commitment to fulfilling life. Thanks to them, our future is bright. JoAnn M. Martin, CPA, FLMI President and Chief Executive Officer We take pride in the nature of our mutual structure, which allows us to focus on providing value and being good stewards of the resources people entrust to us for the long term. Ameritas continues building on a solid foundation of financial health, with a total equity position of more than $2.7 billion in capital and continued strong ratings from Standard & Poor s and A.M. Best. Ameritas fosters a culture where associates understand they truly can make a difference every day. Ameritas paid $2.6 billion in benefit payments to policyholders in 2016 alone, just one measure of how we are there when people need us to help protect what is most cherished. Serving our communities is a priority. In 2016, Ameritas contributed more than $1.8 million to nonprofit organizations and Ameritas associates devoted nearly 18,700 hours to volunteerism. These numbers illustrate the values that drive our dedication to giving back and speak volumes about the caring nature of our associates. 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 mutual insurance organizations in the country, our more than $2.7 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. 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 financial strength and operating performance. This is the third highest of A.M. Best s 15 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. 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. 4

7 Consolidated Statistics Total Assets Under Management GAAP Assets (In Billions 5of Dollars) (In Billions of 5 Dollars) GAAP Realized Equity GAAP Revenues (In Billions 0.5 of Dollars) (In Billions of 0.5 Dollars) GAAP Pretax Operating Income GAAP Pretax Income (In Millions of 30 Dollars) (In Millions of Dollars) Statutory Premiums Life Insurance In Force (In Billions of Dollars) (In Billions of 20 Dollars)

8 Consolidated Balance Sheets Ameritas Mutual Holding Company and Subsidiaries (unaudited, in thousands) Assets Investments: December Fixed maturity securities $ 9,681,795 $ 9,392,787 Equity securities 471, ,524 Mortgage loans 1,822,541 1,597,896 Loans on insurance policies 395, ,789 Other investments 408, ,801 Total Investments $ 12,779,676 $ 12,168,797 Cash and cash equivalents 381, ,728 Accrued investment income 110, ,670 Deferred acquisition costs and identifiable intangibles 739, ,705 Other assets 972, ,434 Separate accounts 6,451,688 6,314,191 Total Assets $ 21,434,939 $ 20,498,525 Liabilities and Equity Liabilities: Policy and contract liabilities $ 11,510,874 $ 10,940,723 Dividends payable to policyowners 12,669 14,192 Surplus notes payable 49,659 49,624 Borrowings 15,017 15,383 Deferred income taxes 108,743 84,069 Other liabilities 533, ,913 Separate accounts 6,451,688 6,314,191 Total Liabilities $ 18,681,824 $ 17,890,095 Equity: Retained earnings 2,636,832 2,547,223 Accumulated other comprehensive income 116,283 61,207 Total Members Equity $ 2,753,115 $ 2,608,430 Total Liabilities and Equity $ 21,434,939 $ 20,498,525 6

9 Ameritas Mutual Holding Company and Subsidiaries (unaudited, in thousands) Income Insurance Revenues: Consolidated Statements of Operations For the Years Ended December Premiums $ 1,125,831 $ 1,034,684 Contract charges 370, ,943 Reinsurance (175,424) (142,660) Mutual fund management and related fees 99, ,122 Broker dealer revenues 109, ,661 Net investment income 526, ,240 Realized gains, net 93,142 40,723 Other 70,956 57,320 Total Revenues $ 2,220,692 $ 2,046,033 Benefits and Expenses Policy benefits $ 1,165,775 $ 1,103,802 Sales and operating expenses 767, ,971 Interest expense 44,580 7,527 Amortization of deferred acquisition costs and identifiable intangibles 102,999 83,383 Total Benefits and Expenses $ 2,081,305 $ 1,873,683 Income before income taxes 139, ,350 Total income tax expense 49,778 61,250 Net Income Attributable to Members $ 89,609 $ 111,100 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 President and 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 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 President and Chief Executive Officer Individual Division, Ameritas Investment Corp. and Retirement Plans Tim L. Stonehocker Executive Vice President Individual, AIC and Retirement Plans Ryan C. Beasley, CFP, CLU, ChFC, MSFS, LLIF Shared Agency Distribution Bret L. Benham, FLMI, CLU Retirement Plans Michael D. Burns, Chief Compliance Officer and Risk Management Officer Ameritas Investment Corp. Scott E. Fletcher AIC Capital Markets Cheryl L. Heilman Individual Operations Salene M. Hitchcock-Gear President and Chief Executive Officer Ameritas Investment Corp. Robert M. Jurgensmeier, FSA, MAAA, Chief Actuary Individual Division Lisa A. Mullen, CPA, FLMI Individual Financial Operations Steven J. Valerius, FLMI President, Individual Division Ameritas Investment Partners James Mikus, CFA, FLMI President and Chief Executive Officer Group Division Karen M. Gustin, LLIF Executive Vice President Group Division James J. Barone Group Business Development and MGA Distribution Patrick D. Drew Fleming Group National Accounts and Key Partnering Relationships Bruce E. Mieth Group Operations Kelly J. Wieseler, FSA, MAAA Group Chief Actuary and Underwriting Shared Services William W. Lester, CFA, FLMI Executive Vice President Investments/Finance and Corporate Treasurer Brent F. Korte and Chief Marketing Officer Randee G. Manley and Chief Human Resources Officer Robert-John H. Sands, CLU, ChFC, General Counsel and Corporate Secretary Linda A. Whitmire, FSA, MAAA, Chief Actuary Corporate Richard A. Wiedenbeck and Chief Information Officer Susan K. Wilkinson, CPA, FLMI and Chief Financial Officer 9

12 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 life insurance companies are not fiduciaries under the federal Employee Retirement Income Security Act or Internal Revenue Code Section 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.