Penn Mutual Life Insurance Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Market of Yuma

Competition in Yuma Life Insurance Industry

The market of Yuma has some players like Yuma Insurance, who currently hold the major market share for the city. The product range offered are insurance for property, builders risk, business interruption, equipment breakdown, inland marine, general liability, workers compensation, auto, professional liability, directors and officers liability, employment practices liability and surety and fidelity bonds.

The companies represented by them are Allied Insurance, Auto-Owners insurance, EMC insurance companies, SafeCo, The Hartford, UNIGRAD and Zurich.

These are the key competitors Penn Mutual has to face to tap the market of Yuma.

Penn Mutual offers life products such as life insurance, investments tools and services and annuities, which a number of other major players also offer in the market. The core product line that is common in these firms is insurance for every field of life includes traditional policies for life insurance, kinds of annuities such as fixed, immediate or variable. Both independent and captive agents are used to distribute and sell the products as well as some brokers.

The companies that offer similar products/ services in Yuma market include ING, TransAmerica, American General, Prudential, Genworth Financial, MetLife, AARP, GerberLife, New York Life, Colonial Life and Allianz. Thus, there is a very high competition for Penn in the Yuma Market. However, it can be successful in grabbing the market share from these competitors by offering different price policies and discount and using other marketing tactics like market penetration.

Expected Competitive Position of Penn Mutual in Yuma Market

The major three competitors for Penn Mutual in Yuma AZ are Massachusetts Mutual Life Insurance Company, MetLife, Inc., and The Hartford Financial Services Group, Inc.

A.m. Best has insisted the budgetary quality rating of A+ (Superior) and the guarantor credit scores of "aa-" of Penn Mutual Life Insurance Company (Penn Mutual Life) (Horsham, PA) and its wholly claimed subsidiary, Penn Insurance and Annuity Company (PIA) (Wilmington, DE) (together alluded to as Penn Mutual). A.m. Best additionally has insisted the obligation appraisals of "aa" on the $200 million 6.65% surplus notes due June 15, 2034 and the $200 million 7.625% surplus notes due June 15, 2040 of Penn Mutual Life. The viewpoint for all appraisals is stable.

The rating activities reflect Penn Mutual's expansive overabundance surplus position and solid danger balanced underwriting that has been upgraded by the issuance of surplus notes, and a traditionalist settled salary speculation portfolio that is exceptionally fluid, has performed sensibly well and right now is in a net undiscovered addition position. A.m. Best notes that Penn Mutual's budgetary power and investment scope proportions stay inside A.m. Best's rules for its current appraisals.

The rating activities likewise think about the quality of Penn Mutual's business profile, which underlines an expansive portfolio of singular disaster protection items headed by all inclusive existence with optional insurances and recorded general life items, and also a developing square of very reliable entire life business. Settled and variable annuities supplement its center singular life items. Penn Mutual keeps up a settled and intense well-off business sector vicinity created through its keep tabs on relationship-arranged makers. Penn Mutual's life and annuity items are disseminated through notable and blended appropriation channels comprising of vocation and autonomous executors and associations with free broker/dealers centered principally on disaster protection item bargains. These dissemination channels all have helped Penn Mutual's late solid bargains development patterns. Janney Montgomery Scott LLC—Penn Mutual's full administration intermediary merchant gives expansion of both income and profit.

Other positive rating components are Penn Mutual's decently characterized supporting projects and its solid asset/liability administration and money stream methods that help its huge and developing premium delicate organizations. Penn Mutual's duty to keeping up commonality with a keep tabs on more term monetary execution and policyholder profits additionally is seen decidedly.

Halfway counterbalancing these positive rating variables are the tests the assembly faces to enhance its statutory working execution and develop its surplus, which have been affected by a few components as of late. These variables incorporate expanded deals related costs, the proceeding tests of the low premium rate environment and unpredictable value markets and the choice to trust toward oneself AXXX save necessities.....................................

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