Mutual of Omaha Insurance Co. has announced its plans to explore the formation of a mutual insurance holding company (MIHC), as confirmed in its 2023 annual statement. The company stated that it is undertaking this exploration to fully understand the structure's requirements and potential consequences, without establishing a specific timeline for the process.

The potential MIHC formation would enable Mutual of Omaha to maintain its policyholder ownership structure while enhancing its access to external sources of capital. This move reflects the company's strategic considerations in the evolving insurance landscape.

In the past, Mutual of Omaha had considered a similar conversion in 1998, as part of a broader industry trend towards MIHC structures. The Securities and Exchange Commission had granted a no-action request for this proposed conversion, highlighting the regulatory aspects involved in such transformations.

The exploration of an MIHC formation by Mutual of Omaha aligns with broader industry trends, where mutual-to-stock conversions have been observed in both the life and property and casualty insurance sectors. The strategy offers companies greater flexibility in responding to market dynamics and accessing capital resources.

This potential transformation within Mutual of Omaha comes at a time when the insurance industry is witnessing various structural changes, with a focus on enhancing operational efficiency and strategic agility. The company's unique business model, encompassing a range of life and health products, positions it as a key player in the market.

The reevaluation of a mutual holdco formation by Mutual of Omaha signals a proactive approach towards adapting to the evolving insurance landscape, reflecting the company's commitment to sustaining its competitive edge while exploring new avenues for growth and resilience in the market.