National Life Group is a ‘progressive mutual,’ CEO says, with record sales

Illustration of a trophy with the name "National Life Group" with "IUL" and "FIA" engraved on the front. National Life Group is a 'progressive mutual,' CEO says, with record sales.

By John Hilton

National Life Group is one of the oldest mutual insurance companies in the United States, but CEO Mehran Assadi likes to call the insurer, "a progressive mutual."

"Basically, it's all about performing and being focused like a stock company with a long-term perspective of a mutual insurance company," Assadi said during an investor call this week.

If National Life were a stock company, Wall Street analysts would be flashing the "buy" sign. The insurer ranks No. 1 for fixed-index annuity sales in employer-sponsored plans, No. 1 for indexed universal life insurance sales and No. 8 for overall U.S. individual life insurance sales, all according to LIMRA rankings.

National Life reports five-year life insurance sales growth of 71%, compared to industry growth of 20% in the same timeframe.

Internal financials that National Life executives shared with investors were just as impressive:

$47 billion in total assets to end 2023, up $6 billion over 2022.
Record life insurance sales up 14% over 2022.
Life insurance face amount in force increased $43 billion in 2023, adding to a 19% compound annual growth rate over the past five years.
$472 million in "core earnings," up $79 million from a 2022 record.

"As we move forward to 2024 we are continuing our very strong momentum," said Eric Sandberg, chief financial officer. "Top line results are on a record pace in the first quarter."

Q1 life insurance sales totaled $143 million of weighted new annualized premium, Sandberg said, while single-premium deferred annuity deposits totaled $667 million. Both are the highest quarterly sales in company history.

Serving 'Middle America'

National Life Group traces its roots to 1848, when it was chartered by the Vermont General Assembly. Today, the insurer remains headquartered in Montpelier.

Several member companies make up National Life Group, including National Life Insurance Co., Life Insurance Co. of the Southwest, and Equity Services, Inc., a broker-dealer and registered investment adviser.

Life Insurance Co. of the Southwest recently completed a $4.9 billion reinsurance transaction with 26North Reinsurance Holdings. 26N Re, through its subsidiaries, will reinsure a seasoned and diversified block of LSW's multi- year guarantee and fixed index annuity products.

National Life is firmly focused on "Middle America," Assadi explained, which he called the most underserved market.

"As a matter of fact, over 80% of our business comes from that market, and it's the melting pot that we refer to as United State of America," he added.

The insurer is very active on the charitable front and Assadi told investors it is part of National Life's mission. Founded in 2006, the National Life Group Foundation, the company's charitable arm, sponsors various charitable events and programs focused on ending childhood hunger and supporting youth mental health. The foundation recently awarded nearly $1.2 million to 115 organizations.

"Our values are about doing good, being good and making good, in our intentions, our actions and the outcome, as we have done for the past 175 years," Assadi said.

InsuranceNewsNet Senior Editor John Hilton covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com. Follow him on Twitter @INNJohnH.

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com. Follow him on Twitter @INNJohnH.