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2016 Annual Report
JoAnn Martin

“We're confident in our ability to serve the unique individual needs of our customers and honored by the continued loyalty and trust you place in us.”
— JoAnn Martin

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 2016. 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 2016.

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.

I want to express our deepest appreciation to Michael Cambron and Robert Willis, who retired from the Ameritas board of directors in 2016. 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
Chief Executive Officer

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Company Highlights

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Total Members' Realized Equity
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Total GAAP Assets
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Total Assets Under Management
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Total Revenue
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Policyholder Benefits
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Number of Customers
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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.

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.

Standard & Poor’s

A+ (Strong) for insurer financial strength. This is the fifth highest of Standard & Poor’s 21 ratings assigned.

A.M. Best

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 Insurance Ratings

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.

Solid Insurance Ratings

A+

Standard & Poor’s

A+ (Strong) for insurer financial strength. This is the fifth highest of Standard & Poor’s 21 ratings assigned.

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Consolidated Statistics

Total Assets Under Management

GAAP Assets

GAAP Realized Equity

GAAP Revenues

GAAP Pretax Operating Income

GAAP Pretax Income

Statutory Premiums

Life Insurance In Force

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Consolidated Balance Sheets

December 31

Ameritas Mutual Holding Company and subsidiaries (unaudited, in thousands)

2016 2015

Assets

Investments:

Fixed maturity securities $9,681,795 $9,392,787
Equity securities 471,837 498,524
Mortgage loans 1,822,541 1,597,896
Loans on insurance policies 395,313 378,789
Other investments 408,190 300,801
Total Investments $12,779,676 $12,168,797
Cash and cash equivalents 381,177 365,728
Accrued investment income 110,014 111,670
Deferred policy acquisition costs and identifiable intangibles 739,727 715,705
Other assets 972,657 822,434
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 533,174 471,913
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
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Consolidated Statements of Operations

For the Years Ended
December 31

Ameritas Mutual Holding Company and subsidiaries (unaudited, in thousands)

2016 2015

Income

Insurance Revenues:

Premiums $1,125,831 $1,034,684
Contract charges 370,916 353,943
Reinsurance (175,424) (142,660)
Mutual fund management and related fees 99,161 118,122
Broker dealer revenues 109,407 126,661
Net investment income 526,703 457,240
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 767,951 678,971
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 139,387 172,350
Total income tax expense 49,778 61,250

Net Income Attributable to Members

$89,609 $111,100