2018 Summary Annual Report to Members

Message from management

In 2018, Minnesota Mutual Companies, Inc. and its subsidiaries, who operate using the marketing name Securian Financial, generated solid results while making significant advancements to support future success.

The organization continued to deliver on its purpose in 2018, proudly helping more than 19 million customers build secure tomorrows. We ended the year with more than $1.2 trillion of life insurance in force, $78.5 billion of assets under management and paid nearly $5.7 billion in statutory benefits when our customers needed us most.

Financial strength is central to our ability to fulfill our purpose, and we maintained our strength in 2018 by preserving the characteristics that have defined us for generations: high capital levels, excellent investment quality and thoughtful risk management.

Staying true to these fundamentals earned Minnesota Mutual Companies’ domestic insurance affiliates, Minnesota Life Insurance Company and Securian Life Insurance Company, ratings upgrades from Standard & Poor’s in 2018 that further solidified our position among the most highly rated insurance companies in the country.

In 2018, we continued our commitment to producing smart growth, increasing our market share and maintaining retention levels that we expect to exceed industry averages.

Our 2018 financial results reflect solid performance across our businesses:

  • Insurance in force increased to more than $1.2 trillion
  • Proprietary sales increased to $3.9 billion, including $2.6 billion of annuity sales and $1.3 billion of insurance sales
  • Assets under management were consistent with 2017 at $78.5 billion
  • Total revenue decreased 9 percent to $5.5 billion
  • Surplus decreased 5 percent to $4.9 billion
  • Operating earnings increased 6 percent to $328.6 million

Financial highlights

Condensed Consolidated (December 31, 2018 and 2017)

in thousands 2018 2017
Insurance in force $1,211,275,300
$1,184,935,500
Assets 51,904,800 51,248,500
Revenues 5,496,400 6,067,300
Operating earnings* 328,600 308,800
Policyholder benefits** 3,500,400 4,090,200
Surplus 4,874,400 5,129,800

* Operating earnings equal net income less net realized investment gains (losses), net of taxes.

** Policyholder benefits equal the sum of policyholder benefits, dividends to policyholders and interest credited.

Our ratings

Minnesota Life Insurance Company and Securian Life Insurance Company, the insurance company affiliates of Minnesota Mutual Companies, Inc., are highly rated by the four independent rating organizations that analyze financial strength and claims-paying history.

For more information about the rating agencies and to see where our rating ranks relative to other ratings, please see our ratings.

Structure and facts

Our mutual holding company structure preserves our mutual heritage and provides the flexibility to manage change and provide long-term value for our customers.

The members of Minnesota Mutual Companies, Inc. collectively own the mutual holding company, the ultimate parent company of Minnesota Life Insurance Company, which is a stock subsidiary but is not publicly traded. No one, including members of management and the Board of Directors, has been issued any stock.

Minnesota Mutual Companies, Inc. is the holding company parent of a group of companies that provide a broad range of financial services, including Securian Financial Group, Inc.; Allied Solutions, LLC; Asset Allocation & Management Company, LLC; Canadian Premier Life Insurance Company, Canadian Premier General Insurance Company, CRI Canada Ltd., Minnesota Life Insurance Company; Securian Asset Management, Inc.; Securian Casualty Company; Securian Financial Services, Inc.; Securian Life Insurance Company,  Securian Trust Company, N.A. and Selient Inc.

With more than $1.2 trillion of life insurance in force, Minnesota Mutual Companies, Inc. serves more than 19 million customers through 5,600 employees and representatives throughout North America.

Directors of Minnesota Mutual Companies, Inc.

As of December 31, 2018

Wilson G. Bradshaw

President Emeritus (Retired)
Florida Gulf Coast University
Fort Myers, Florida

Committees

Corporate Governance and Public Affairs; Human Resources and Compensation; Non-Overlapping Directors

Mary K. Brainerd

Retired President and Chief Executive Officer
HealthPartners
Minneapolis, Minnesota

Committees

Audit (Chair); Investment; Executive

John W. Castro

Retired Chief Executive Officer
Merrill Corporation
St. Paul, Minnesota

Committees

Corporate Governance and Public Affairs (Chair)
Human Resources and Compensation; Executive

Benjamin G. S. Fowke, III

Chairman, President and Chief Executive Officer
Xcel Energy, Inc.
Minneapolis, Minnesota

Committees

Human Resources and Compensation; Audit

Sara H. Gavin

President, North America
Weber Shandwick 
Bloomington, Minnesota

Committees

Corporate Governance and Public Affairs; Human Resources and Compensation

Eric B. Goodman

Retired Chief Investment Officer
AEGON USA
Cedar Rapids, Iowa

Committees

Audit; Investment

Christopher M. Hilger

Chairman, President and Chief Executive Officer
Securian Financial Group, Inc.
St. Paul, Minnesota

Committees

Corporate Governance and Public Affairs; Investment; Executive

John H. Hooley

Retired Executive Vice President/President
SUPERVALU Retail Companies
Eden Prairie, Minnesota

Committees

Human Resources and Compensation (Chair); Audit; Executive

Ronald J. Peltier

Chairman and Chief Executive Officer
HomeServices of America, Inc.
Minneapolis, Minnesota

Committees

Human Resources and Compensation; Investment; Non-Overlapping Directors

Trudy A. Rautio

Retired President and Chief Executive Officer
Carlson
Minnetonka, Minnesota

Committees

Audit; Investment (Chair); Executive

Robert L. Senkler

Former Chairman and Retired Chief Executive Officer
Securian Financial Group, Inc.
St. Paul, Minnesota

Committees

Audit; Investment

Paul L. Snyder

Former Managing Partner
KPMG LLP
Minneapolis, Minnesota

Committees

Audit; Investment; Non-Overlapping Directors

Kevin F. Warren

Chief Operating Officer
Minnesota Vikings Football, LLC
Eagan, Minnesota

Committees

Corporate Governance and Public Affairs; Human Resources and Compensation

Contact information

For member-related inquiries, please contact:

Member Relations

Minnesota Mutual Companies
400 Robert Street North
St. Paul, MN 55101-2098

651-665-3500 (main)
651-665-4128 (fax)