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For 170 years, Penn Mutual has been passionate about serving our clients. Along with our team of advisers, we empower our clients to make sound financial decisions now and into the future. 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 achieved solid financial results in 2016, following our strong performance in 2015. 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, asset management, and broker-dealer segments, for 2016, was $214.4 million, an increase of 2% compared to 2015.
Total Revenue supporting our insurance operations was $1,901.7 million for 2016, an increase of $247.4 million compared to 2015. The increase was the result of higher product revenue generated from the growth in our life and annuity business as well as higher investment earnings from our growing assets.
Total Benefits Paid to policyholders or their beneficiaries through 2016 totaled $629.3 million, which reflects the fulfillment of our promises to them.
Consolidated Net Income for 2016 was $210.8 million, which is a 1% increase from 2015.
Total Surplus (Capital) totaled $1.9 billion as of December 31, 2016, which was consistent with December 31, 2015. 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 December 31, 2016, assets, including the funds we safeguard for our policyholders, totaled $22.3 billion, an increase of 6% from 2015. Total liabilities were $20.4 billion as of December 31, 2016.
Life Insurance Sales for 2016 were $177.4 million, or 13% higher than 2015. Sales in 2016 continue to have a balanced mix, with 40% coming from whole life.
Individual Life Insurance In-Force of $128.0 billion as of December 31, 2016, 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 2016 were $559.4 million. These sales are the result of strong product offerings and the role annuities play in our clients’ financial plans.
These results 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. Annuity sales are reported on a cash basis. Total surplus, statutory assets and investment portfolio information are reported according to a Statutory Accounting basis.
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© 2017 The Penn Mutual Life Insurance Company, Philadelphia, PA 19172 www.pennmutual.com
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