Mutual of Omaha Insurance Co. ‘A+’ Rating Affirmed; Outlook Remains Stable
August 25, 2026 by S&P Global Ratings
NEW YORK (S&P Global Ratings) Aug. 20, 2026–S&P Global Ratings today affirmed its ‘A+’ long-term local currency financial strength and issuer credit ratings on Mutual of Omaha Insurance Co. The outlook remains stable.
Our view of Mutual of Omaha’s financial risk and capital and earnings strength has improved. The company has maintained an extremely strong capital position with redundancy at the 99.99% confidence level. However, its exposure to long-term care (LTC) tempered our view. As of year-end 2025, total statutory reserves for the LTC block were approximately $4.1 billion (close to 10% of total reserves).
While Mutual of Omaha remains one of the few providers of stand-alone LTC products, it has mitigated risk from this portfolio through proactive rate actions and strategic reinsurance. The LTC products now underwritten by the company have lower tail risk, in our view, due to the lack of lifetime benefits. Only 6% of the block has lifetime benefits, and the loss ratio has remained close to or below 60%.
Historically, the company’s LTC portfolio also has not produced material capital volatility, which reflects disciplined pricing. As such, we believe our view of the company’s capital as excellent largely captures the inherent risks of this exposure. Furthermore, Mutual of Omaha has established a holding company structure intended to provide additional financial flexibility, although its access to capital markets is limited relative to its public peers.
We view Mutual of Omaha’s business as strong, reflecting its highly diversified life, health, and institutional products through its multichannel distribution strategy. The company has solid positions in its core markets, ranking second in Medicare supplement and fourth in whole life and holding top 10 positions in group life, disability, indexed universal life, pension risk transfer, and structured settlement. The company has also been taking rate actions in its Medicare supplement book to improve its loss ratio and limit earnings volatility from this segment.
As of year-end 2025, the company reported statutory net income of $311 million and a statutory return on assets of 0.75%. Its financial leverage was about 26% (including unfunded postretirement liabilities and operating leases) with EBITDA fixed-charge coverage of 9x (including imputed interest on operating leases).
The company has about $711 million in surplus notes outstanding, with maturities spread over 2036, 2040, and 2064. We assign these notes intermediate equity content as long as they have at least 10 years until maturity and meet other aspects of our criteria.
The group’s exceptional liquidity at its insurance operating subsidiaries reflects the relatively high quality of its investment portfolio and its products’ general lack of callable liabilities.
The stable outlook reflects our view that Mutual of Omaha will maintain its positions in its key markets while demonstrating solid operating performance. We expect capital adequacy to remain at the 99.99% confidence level of our risk-based capital model, with financial leverage of less than 40% and fixed-charge coverage above 4x.
We could lower our ratings in the next 12-24 months if the group’s competitive position deteriorates due to a weakening market position and if operating performance declines significantly relative to peers. We may also lower our ratings if capital is no longer redundant at the 99.99% level for a sustained period.
Although we are unlikely to raise our ratings over the next 24 months, we could do so if Mutual of Omaha maintains its earnings diversity, maintains its strong positions in key markets, and consistently generates operating performance that is better than its peers’ while maintaining capital redundancy at the 99.99% confidence level.
Related Criteria
- General Criteria: Hybrid Capital: Methodology And Assumptions, Oct. 13, 2025
- Criteria | Insurance | General: Insurer Risk-Based Capital Adequacy–Methodology And Assumptions, Nov. 15, 2023
- General Criteria: Environmental, Social, And Governance Principles In Credit Ratings, Oct. 10, 2021
- Criteria | Insurance | General: Insurers Rating Methodology, July 1, 2019
- General Criteria: Group Rating Methodology, July 1, 2019
- General Criteria: Principles Of Credit Ratings, Feb. 16, 2011
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