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HC1009 - 2018 Ameritas Mutual Holding Company Annual Report
JoAnn Martin

“The Ameritas mission to help make the lives of our customers and their families better is a powerful statement about what’s important to us. This is what our exceptional associates and field partners do every day.”
— JoAnn M. Martin

To our valued customers

As leaders of more than 2,400 Ameritas associates and thousands of outstanding field partners, we have a passion for developing and distributing lasting financial strategies and products that help our millions of customers navigate uncertainty and fulfill life.

Ameritas enjoyed robust sales in 2018, energized by competitive new products, enhanced recruiting in our distribution networks and investment in the core capabilities that build our momentum. Sales were particularly strong in individual life insurance, annuities and group benefits, which posted significant gains over the prior year.

Ameritas helped meet the needs of more than 4.0 million customers early in 2018, and exceeded 4.2 million by year end. We are proud of our growing customer base and take seriously our responsibility to every person who puts their trust in Ameritas. We paid $3.0 billion in benefit payments in 2018.

We delivered solid financial results in 2018. For the year ended December 31, 2018, total GAAP assets rose 7.8 percent to $24.9 billion. Total insurance revenues, net investment income and other revenues totaled $2.4 billion, an increase of 7.0 percent. Ameritas GAAP pretax income grew to $291.6 million in 2018, an impressive improvement of 85 percent.

Financial health serves as the secure foundation of our mutual-based structure. Our strong ratings from Standard & Poor’s and A.M. Best Company remained stable, and our total GAAP members’ equity exceeded $2.9 billion in 2018. We are constantly refining the strategic path our business lines are taking to grow and maintain our financial strength.

Our emphasis on customer service reflects our commitment to being there when our customers need us the most. The satisfaction we derive from helping others is deeply embedded in the Ameritas culture. We are a purpose-driven organization, and it shines through everything we do.

That sense of purpose extends to serving our communities, a core value that helps define our character as a company. Every year Ameritas associates devote many thousands of volunteer hours to the community causes that matter to them. Ameritas contributed nearly $1.6 million to nonprofit organizations in 2018.

Our evolving operating structure positions Ameritas to compete successfully in a dynamic business environment. Bill took on the role of president and chief executive officer of Ameritas Life Insurance Corp. as 2019 began, while JoAnn continues as chief executive officer of Ameritas Mutual Holding Company. JoAnn also continues as board chair for Ameritas Life and Ameritas Life Insurance Corp. of New York.

The Ameritas mission to help make the lives of our customers and their families better is a powerful statement about what’s important to us. This is what our exceptional associates and field partners do every day.

It’s what we mean by fulfilling life.

JoAnn M. Martin, CPA, FLMI
Chief Executive Officer
Ameritas Mutual Holding Company

William W. Lester, CFA, FLMI
President and Chief Executive Officer
Ameritas Life Insurance Corp.

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Company Highlights

$ 0
billion
Total Members' GAAP Equity
$ 0
billion
Total GAAP Assets
$ 0
billion
Total Assets Under Management
$ 0
billion
Total Revenue
$ 0
billion
Policyholder Benefits
0
million
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 its solid capital position. As one of the largest mutual-based insurance organizations in the country, Ameritas has $2.9 billion in equity to help protect customers against the uncertainties of today’s financial markets and help 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 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.

Solid Insurance Ratings

A

A.M. Best Company

A (Excellent) for insurer financial strength. This is the third highest of A.M. Best’s 13 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 Members' Equity

GAAP Realized Equity

GAAP Revenues

GAAP Pretax Operating 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)

2018 2017

Assets

Investments:

Fixed maturity securities $9,933,022 $10,002,602
Equity securities 413,887 518,372
Mortgage loans 2,161,721 1,969,464
Loans on insurance policies 438,858 411,096
Other investments 373,954 449,344
Total Investments $13,321,442 $13,350,878
Cash and cash equivalents 344,771 382,793
Accrued investment income 111,228 109,746
Deferred acquisition costs and identifiable intangibles 899,175 752,250
Reinsurance receivables 672,522 659,688
Other assets 377,809 358,552
Separate accounts 9,221,857 7,526,296

Total Assets

$24,948,804 $23,140,203

Liabilities and Equity

Liabilities:

Policy and contract liabilities $11,115,650 $10,668,062
Deposit liability 1,075,069 1,105,350
Deferred income taxes 48,470 127,682
Surplus notes payable and borrowings 63,871 64,231
Other liabilities 521,049 582,484
Separate accounts 9,221,857 7,526,296
Total Liabilities $22,045,966 $20,074,105

Equity:

Retained earnings 3,018,632 2,787,002
Accumulated other comprehensive income (115,794) 279,096

Total Members' Equity

$2,902,838 $3,066,098

Total Liabilities and Equity

$24,948,804 $23,140,203
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Consolidated Statements of Operations

December 31

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

2018 2017

Income

Insurance Revenues:

Premiums $1,228,883 $1,145,792
Contract charges 390,907 398,996
Reinsurance, net (172,227) (166,863)
Broker-dealer revenues 124,870 116,180
Net investment income 519,724 570,862
Realized capital gains, net 175,373 47,307
Other 90,179 87,871

Total Revenues

$2,357,709 $2,200,145

Benefits and Expenses

Policy benefits $1,232,429 $1,213,615
Sales and operating expenses 711,485 679,714
Interest expense 41,869 46,587
Amortization of deferred acquisition costs and identifiable intangibles 80,344 102,756
Total Benefits and Expenses $2,066,127 $2,042,672
Income before income taxes 291,582 157,473
Income tax (benefit) expense 57,957 (39,798)

Net Income Attributable to Members

$233,625 $197,271