Penn Mutual Life Renames Investment Advisor Unit
January 6, 2015 by Fran Matso Lysiak, senior associate editor, BestWeek: fran.lysiak@ambest.com
HORSHAM, Pa. – Penn Mutual Life Insurance Co. has renamed its registered investment adviser unit to Penn Mutual Asset Management with a focus on managing the $20 billion in assets held in its own general account and within its Penn Series Funds.
Formerly called Independence Capital Management Inc., the firm has served as an investment adviser to the Penn Series Funds Inc.
“As a result of Penn Mutual’s significant growth over the past several years, where we’ve outperformed the industry, the launch of Penn Mutual Asset Management helps us better serve Penn Mutual’s policyholders by consolidating all of our investment talent and investment-related activities into one firm,” Dave O’Malley, chairman and chief executive officer of Penn Mutual Asset Management, told Best’s News Service. He also serves as chief operating officer at Penn Mutual Life.
The funds are proprietary investment options within Penn Mutual’s variable life insurance and variable annuity products, said Keith Bratz, a spokesman for the Horsham, Pennsylvania-based Penn Mutual Life.
As of Jan. 1, the asset management subsidiary is now managing the investments of Penn Mutual Life and its subsidiaries’ $12 billion general account. Penn Mutual Asset Management is “bringing on another client” — its parent company, Bratz said.
Independence Capital was Penn Mutual’s wholly owned investment advisory subsidiary, responsible for fund selection and performance of the sub-advisers within Penn Mutual’s variable life and annuity products, Bratz said. Penn Mutual Asset Management — the new name — “takes on that same responsibility, in addition to now managing Penn Mutual’s general account portfolio.”
Penn Mutual Group is the 55th-largest U.S. life insurer out of a list of the top 200 based on total admitted assets in 2013 of $17.94 billion, according to A.M. Best Co.
“Penn Mutual has had a track record of significant growth, doubling its life insurance sales and growing its assets at an 8% compound annual growth rate since 2009,” O’Malley said in a statement.
As of Dec. 1, 2014, the funds had about $8.2 billion in assets, and offer 29 investment options. Penn Mutual Asset Management manages nine, and employs sub-advisers for the remaining 20 funds. Penn Mutual Life supports its sales representatives with brokerage services through a subsidiary, Hornor, Townsend & Kent Inc., a registered investment adviser.
“We look forward to continuing to execute on our core asset management competencies, which include total return-based investing, advisory services and expertise in alternative asset investing, as we enter a new chapter of growth,” Keith Huckerby, president and chief marketing officer of Penn Mutual Asset Management, said in a statement.
Penn Mutual Life Insurance Co. and Penn Insurance and Annuity Co. each currently has a Best’s Financial Strength Rating of A+ (Superior).
