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Second Quarter 2014 Financial Highlights (95.6 kb)
For 167 years, Penn Mutual has been driven by our noble purpose to create a world of possibilities. As an original pioneer of mutual life insurance in America, we believe that life insurance is the center of a sound financial plan. Permanent life insurance provides a safety net through the protection it provides, builds cash value to allow you to do more in life, and makes an enduring impact for generations to come. Penn Mutual is committed to helping individuals, families and small businesses unlock life’s possibilities through life insurance and annuity solutions. That commitment is evidenced by our recent milestone of reaching $100 billion of life insurance in force. Penn Mutual achieved solid financial results in 2013, and we have continued that position into the first half of 2014. Our financial strength and mutual structure allow us to stay focused on what matters—serving the best interests of our policyholders, as well as ensuring our long-term viability and well-being.
Operating Income, which includes our insurance product and broker-dealer segments, for the six months ended June 30 2014, was $100.0 million, an increase of 31% compared to the prior year-to-date.
Total Revenue supporting our insurance operations was $716.6 million year-to-date through June 30, 2014, an increase of $82.1 million compared to the prior year-to-date.
Total Benefits Paid to policyholders or their beneficiaries for the six months ended June 30, 2014 totaled $304.8, which reflects the fulfillment of our promises to them.
Consolidated Net Income through six months for 2014 was $98.6 million, which reflects higher income from the growth in our in-force business and positive equity market trends.
Total Surplus (Capital) totaled $1.63 billion at June 30, 2014, an increase of $77 million from December 31, 2013. Surplus is the amount we set aside for unexpected losses and is our financial protection against business volatility. The company continues to be heavily focused on managing our financial strength. This gives our policyholders the confidence that Penn Mutual is positioned to meet its obligations to them today and well into the future.
Statutory Assets and Liabilities — As of June 30, 2014, assets totaled $18.8 billion. Total liabilities were $17.3 billion as of June 30, 2014.
Life Insurance Sales for the six months ended June 30, 2014 were $51.4 million. Sales in the first half of 2014 have a more balanced mix with 35% coming from whole life, up from 14% from the comparable period in 2013. Individual Life Insurance In-Force of $101.8 billion as of June 30, 2014, is the amount of life insurance protection that Penn Mutual provides to policyholders. Once again, this demonstrates that policyholders value the complete value of life insurance - both the protection and the cash accumulation - that our products offer.
New Annuity Sales for the first six months of 2014 were $297.1 million, lower than the comparable 2013 period and a reflection of the company’s proactive management of our complementary annuity portfolio in order to maintain the proper balance between new sales and reserves for life insurance and annuities.
These results, excluding Life Sales, are reported according to Generally Accepted Accounting Principles in the United States of America (GAAP), unless otherwise noted. Life sales are reported on a life weighted-premium basis. Total surplus, statutory assets and investment portfolio information are reported according to a Statutory Accounting basis.