Founded in 1847, Penn Mutual Life Insurance offers life insurance, annuities, and investment products and services. Its core product line consists of life insurance every which way, including traditional life insurance products (term life, whole, and universal life) and a variety of fixed, variable, and immediate annuities. The company sells its products throughout the US through several channels, using both independent and captive agents, as well as brokers. Two of its financial services subsidiaries -- broker/dealer Hornor, Townsend & Kent and Janney Montgomery Scott -- also distribute Penn Mutual products.
In 2011 Penn Mutual sold its Pennsylvania Trust Company subsidiary to its officers. The regional trust services firm provided services to individuals and institutions in the Delaware Valley region.
Penn Mutual's total revenue increased 7% in 2011 from 2010 to about $1.7 billion, continuing an upward trend over the past several years. Its net income of $90.7 million represented a 6% increase over 2010. The company's positive growth was largely attributable to a whopping 20% increase in life insurance sales, as well as increases in product fees, broker/dealer fees and commissions, and investment income from higher average asset balances. The increases were partially offset by lower income from the company's alternative asset portfolio, together with lower interest margins and trading gains. Penn Mutual's surplus for the year increased to $1.6 billion, indicating that its future obligations were secure.
The company's conservative investment strategies, which are typically held by mutual insurance firms in general, have helped it to weather difficult economic times better than its stock company competitors. While Penn Mutual saw its investments soften somewhat in 2008, it has achieved steady investment growth since 2009, all while maintaining very strong ratings and building its financial strength. Building client relations for the long term is another important aspect of the company's strategy, which it addresses by supporting its financial professionals. – less