Financial Strength

“What you are will show in what you do.”

- Thomas Edison

In 1847, Penn Mutual was founded and Thomas Edison was born. Each set the stage for centuries of innovation and the promise of brighter tomorrows.

The confidence you place in us drives our dedication to serving you with passion, commitment and integrity. Everything we do is motivated by the promises we make to you – now and in the future – and our belief in positively impacting the people and world around us.

I am pleased to share with you the impacts we have made in 2018, yet another record-setting year for Penn Mutual.

• We achieved the highest life insurance sales for the company in 2018, protecting more individuals and businesses through our network of trusted advisers.
• Our GAAP net income grew for the ninth (9^th) consecutive year.¹
• Our statutory surplus grew to over $2 billion, a company record and 10 percent increase over the prior year, further strengthening our financial positioning.
• Once again, we are among a list of companies rated “A” or higher for 75 years from A.M. Best, with Penn Mutual being included on this list for 90 straight years.
• We received a national award recognizing our new digital client experience praising our commitment to innovation and leading the industry to support you and your adviser.
• Our focus on sustainability has motivated us to be 50 percent reliant on renewable energy by 2020 and we are well on our way to reach our commitment.
• We remain steadfast in our passion to support our communities, and in 2018 helped policyholders impacted by natural disasters and provided resources to organizations such as the American Red Cross and the United Way.

We value the trust you place in us as we continue to serve generations of individuals, families, and businesses. I encourage you to continue reading about how our passion, commitment and integrity can be found in everything we do.

Thank you for your continued trust and confidence in Penn Mutual.

Sincerely,

Eileen C. McDonnell
Chairman and Chief Executive Officer

It’s often said that passion breeds success, and we believe in fueling the passion that’s in all of us at Penn Mutual. Mike Pellegrini, an associate in our information technology area, didn’t come to Penn Mutual following the typical path, but his passion was contagious from his first day.

In 2018, Penn Mutual got involved with a program called Year Up and through this partnership we have provided internships to people who may not have had the ability to work in a corporate setting otherwise. Gerald Chertavian founded Year Up in 2000 with the goal of closing the rift between socioeconomic status and opportunity. The program consists of six months of classroom study, and then six months at a pre-selected corporate internship.

In 2018, Mike Pellegrini entered the program with the goal to improve his life and his job prospects. He had a few short stints at a local university and was working in another industry, but didn’t feel fulfilled and was itching for change in his life.

After Mike passed the academic portion of the program, Year Up placed him in the IT department at Penn Mutual. He admits coming here was a culture shock. “I was expecting suits and ties and a lot of formality. I wasn’t expecting to come into work every day and be greeted with a smile and hello. The company culture is very unique and the passion that all my fellow associates feel for the work they’re doing for our policyholders was evident to me right away.”

The aspect of Penn Mutual that most impressed Mike was the approach to teamwork and collaboration. He realized seeking the insights of others on his team helped him quickly grow as a part of the Penn Mutual family.

“Everybody on my team and throughout the whole company has a different perspective or way of approaching a problem. I’ve learned that pretending you know everything undermines your success,” he said. “If you don’t know how to do something, or don’t understand a concept, there is always somebody else who can help.”

Ultimately, Year Up helps employers tap into candidates that they otherwise may not have engaged. “It’s a wonderful way to look into an untapped talent pool. So many people have the drive to succeed, but they do not always have access to the right opportunities,” said Greg Driscoll, SVP and Chief Information Officer. “Year Up bridges this opportunity divide and gives companies like Penn Mutual the chance to participate in having a real effect on the lives of individuals. We’ve had the opportunity to bring in four interns from the program to work with us and we look forward to engaging more.”

Partnering with Year Up has been rewarding both for Penn Mutual and the interns working with us. We’re proud to play a role in helping young people follow their passion and dreams.

Richard F. Micliz, CFP^®, is driven by commitment. Rich, an adviser with Primary Financial, powered by Penn Mutual in Edison, NJ, is committed to building long-term relationships with his clients. He sees them as people, as families, who need the ongoing guidance of a planner, not a “once and done” salesperson. Nowhere is this more evident than in the commitment and relationships Rich has built with his clients who have family members with special needs. One in particular, has been his client for 10 years.

According to Rich, “Speaking to her for only a minute is all that it takes to realize that her entire world revolves around her son’s care, not only today, but long after she’s gone. Any decision she has ever made, or will ever make, is to ensure that he is taken care of in the best way possible.”

And Rich, in concert with her attorney and CPA, crafted a financial plan that gives her complete peace of mind—enough resources to cover her lifestyle expenses and the perpetual care her son will need. “Although cognitively challenged, his life expectancy is that of a typical adult male. Due to his cognitive challenges, my client finds it critical that he remains in the house he is accustomed to living in. The catastrophic event of losing his mother (now 80 years old), then faced with the prospect of uprooting his living situation could be overwhelming for him to handle. Her financial plan is structured in a way that comforts her worries about her son after she’s gone.”

Life insurance is the critical component of her plan. “It’s the building block that all her decisions were made from,” says Rich. “Because of this, I’m happy to say that barring any drastic unforeseen circumstances, her son will live in the home he is familiar with, and maintain the lifestyle he is accustomed to.”

Rich believes in the power of life insurance and is committed to making sure all his clients understand what it can mean for them. “Life insurance is critical because of all those unknowns. If the proper life insurance is in place, not much can happen for the overall financial plan not to come into fruition.”

Delivering with integrity on the promises we make to policyholders is the foundation of our business. Penn Mutual’s culture rests on the principle of always doing the right thing, and it is the heart of who we are.

Nowhere is this more evident than in the work Shereen Bradley does in our claims department. Shereen has been with Penn Mutual for over 33 years and has processed countless death claims. Working directly with beneficiaries and advisers, she helps fulfill our promises to ensure that claims are processed efficiently and with integrity during a time when emotions run high.

“Many times, the beneficiary calling in to report a death is dealing with a lot of grief. Most often, they’ve never had to file a claim and have a lot of questions,” says Shereen. “As a company, we made a promise to their loved one and I do whatever it takes to help them through the process.”

Rob Halligan, an adviser with 1847Financial, powered by Penn Mutual in Conshohocken, PA has worked with Shereen often over his career and knows firsthand how much she cares about the work she does. “Shereen handles very delicate and emotionally charged moments with a soft, reassuring touch,” says Rob. “She embodies integrity in everything she does by delivering on our promise and paying out a death claim.”

Rob has been an adviser for over 40 years and understands the emotional toll the death of a loved one takes on a family. “There are a lot of things to consider when dealing with a loss. My job as an adviser is to fulfill the plans I put in place with my clients and to walk their beneficiaries through the claims process. Knowing someone like Shereen is on the other end of the telephone line gives everyone peace of mind and confidence that the process will be handled efficiently and with empathy,” says Rob.

We are shaped by the exceptional character of our people and Shereen and Rob are shining examples of that character as we fulfill the promises made to policyholders.

With profound gratitude, respect and admiration, we thank Joan P. Carter, William R. Cook and Edmond F. Notebaert for their service as a member of the Penn Mutual Board of Trustees.

Penn Mutual’s annual election of trustees will be held on Tuesday, March 3, 2020 at 10:00 a.m. in the company’s office at 600 Dresher Road, Horsham, PA, 19044.

All policyholders with policies in force at the time of the election are eligible to vote. Voting can be done by mail, online or telephone. Proxy forms or additional information may be obtained through the Secretary’s office at 600 Dresher Road, Horsham, PA 19044.

Our legacy of financial strength, our mutual structure, and our long-term perspective continue to stand the test of time and are foundational to the company and our success. The rating agencies recognize this and have, once again, given us a vote of confidence in 2019, with a stable outlook.

Our continued financial strength is not possible without your confidence in our ability to help you meet your financial needs, by providing the protection that allows you to live life with confidence. On behalf of Penn Mutual’s executive team, advisers, and all of our field and home office associates, we thank you for the trust you place in us, and pledge to keep earning your trust in the years to come.