Penn Mutual said it has launched Penn Mutual Asset Management, a registered investment advisory (RIA) and wholly owned subsidiary of Penn Mutual
David O’Malley, CEO of Penn Mutual Asset Management, called the news a “consolidation” of the life insurer’s RIA (formerly branded Independence Capital Management) and the investment activity of and the talent managing Penn Mutual’s general account assets.
Until Dec. 31, 2014, Independence Capital Management had served as the investment advisor for Penn Series Funds, a fund complex with approximately $8.25 billion assets and 29 investment options within Penn Mutual’s variable life and annuity products.
Managing those funds was separate from managing the $12 billion in general account assets belonging to Penn Mutual and its subsidiaries.
As of Jan. 1, Penn Mutual Asset Management is managing both pools of money amounting to about $20 billion, the company said.
The rebranding, which took effect Jan. 1, makes sense because of Penn Mutual’s significant growth over the past several years — outpacing the insurance industry. This rebranding also will benefit its policyholders by consolidating its investment talent and activities into one firm, O’Malley told InsuranceNewsNet.
O’Malley also said that Penn Mutual Asset Management has launched a new webpage and blog that feature regular market and economic outlooks and thought leadership
Over the past year, Penn Mutual Asset Management has grown into a unit with about 25 full-time investment professionals.
Penn Mutual also owns Hornor, Townsend & Kent, a broker/dealer subsidiary, as well as independent broker/dealer Janney Montgomery Scott.
O’Malley said that since 2009 Penn Mutual has doubled its life insurance sales and grown assets at an 8 percent compound annual growth rate.
Penn Mutual works with about 5,000 independent producers and another 700 to 1,000 career agents, Thomas H. Harris, executive vice president of distribution, told InsuranceNewsNet last year.
Both producer channels have grown over the past several years.
Independent producers make up about 60 percent of the company’s life insurance sales force, and the career agents about 40 percent, and there are no plans to change those ratios, Harris also said.
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