Minnesota Mutual Companies, Inc.
2009 Summary Annual Report to Members

Message from Management

We fully participated in the economic recovery of 2009, a year characterized by the resurgence of investment markets and emerging sales opportunities for financially strong companies. Our robust capital position, asset quality and the diversification of our businesses prepared us well to weather the economic storm that began in 2008.  We are strongly positioned to gain competitive advantage in 2010.

In 2009:

  • Combined sales of proprietary individual and group life insurance increased 17 percent, and individual annuity sales by advisors increased 38 percent, setting new records.1
  • Total Revenue increased 15.8 percent to $3.2 billion, including $2.6 billion of product revenue2 and $566 million of net investment income. 
  • Insurance in force3 increased 10 percent to $609 billion.
  • Assets under management, including the funds we safeguard for our clients, increased 14 percent to $28 billion.
  • Earnings were excellent during the second half of 2009 but lower than expected during the first half of the year due to depressed investment markets.  As a result, operating earnings4 of $95.6 million decreased seven percent compared to 2008.
  • Our ratings for financial strength and claims-paying ability maintained our status among the most highly rated insurance companies.
  • The benefits we provide.  In 2009, we paid nearly $3.8 billion in statutory benefits, including $1.4 billion of life insurance death benefits. We sell a promise to pay, and our performance clearly demonstrates our ability to keep all of the promises we make.

1 Sales equal annualized premiums, funds deposits, net assets deposits and commission revenue, as applicable to specific business units.

2 Product revenue equals total revenue less net investment income and net realized gains (losses).

3 Insurance in force excludes Federal Employees’ Group Life Insurance (FEGLI) and Servicemembers’ Group Life Insurance (SGLI). We exited the FEGLI and SGLI markets in 2009.

4 Operating earnings equal net income less realized investment gains and losses net of taxes.