Enterprise Structure
OneAmerica can trace its roots back to 1877. Since that time, the companies of OneAmerica have operated under the mutual philosophy that they exist for one main purpose: to deliver on our promises when customers need us most.
Being mutual is at the heart of who we are and how we conduct our business. As a mutual organization, our first priority is the customer, not Wall Street. Because we don’t have the short-term distractions of quarterly earnings calls, stock prices and other pressures felt by public companies, our mutual structure enables us to focus on providing long-term value for customers by creating and protecting their assets. Policyholders elect our board of directors, as we have no external shareholders.
In 2000, we reorganized into a mutual holding company structure. This structure supports our strategy to seize growth opportunities by providing the flexibility to bring other mutual insurance companies into the organization. It also enables us to be more efficient in our capital structure so that we can support growth and financial strength over the long term. In the end, the mutual holding company structure is advantageous from a business standpoint while retaining all of the important aspects of mutuality.
Our customers’ best interests drive our business decisions. First, it drives us to manage our customers’ resources in a responsible manner because it’s their money, not ours. Second, it drives us to develop and deliver products and services that add real value because, if we don’t, our customers can go elsewhere.
At OneAmerica, mutual is more than a structure. It’s a philosophy, a commitment and a way of life. Most important, it’s a promise to be there when our customers need us most.
The following are frequently asked questions regarding OneAmerica’s mutual organization structure.
Is OneAmerica part of a mutual insurance organization?
Yes, OneAmerica and its operating companies (including American United Life Insurance Company®, The State Life Insurance Company and Pioneer Mutual Life Insurance Company) are part of a mutual holding company group. All companies are ultimately owned by American United Mutual Insurance Holding Company (AUMIHC).
When I look up OneAmerica, AUL, State Life and Pioneer, it says they are stock companies. How can you be a mutual organization when you have stock companies?
These stock companies are ultimately owned by the mutual holding company parent (AUMIHC). There are no external shareholders. American United Mutual Insurance Holding Company (AUMIHC) owns all of the stock of OneAmerica, and OneAmerica owns all of the stock of AUL, State Life and Pioneer. When a customer purchases a policy at AUL, State Life or Pioneer, they become a member of the holding company (AUMIHC) and gain certain rights, including the right to vote for the AUMIHC board of directors. Being a family of companies ultimately controlled by its policyholders makes OneAmerica a mutual organization.
Who controls OneAmerica and its operating companies?
Policyholders. Eligible policyholders of our insurance subsidiaries elect the board of directors of the holding company that ultimately provides the direction and guidance to the enterprise.
Are there any outside shareholders who influence or control OneAmerica and its companies?
No, there are no external shareholders.
Does OneAmerica plan to issue stock to external shareholders or "go public?"
Our plan is to remain a mutual organization because we believe it is in the interest of our policyholders to continue to manage the company for their benefit rather than for the benefit of external shareholders.
Why did the company convert to a mutual holding company structure?
The mutual holding company structure allows us to add other like-minded mutual companies to the structure. State Life and Pioneer were added in recent years. We believe policyholders have benefited from the increased scale, financial strength and resources of the combined organization. In addition, the holding company structure enables us to more efficiently and effectively manage capital.
Why is mutuality so important?
As a financial services organization, we make long-term promises. Benefits often don’t come due for 20 or 30 years, and a great deal can happen in that time frame. We believe that a long-term view and a focus on the customer are vitally important. Therefore, in our opinion, mutuality is a superior form of ownership. Our performance during the recent downturn is a testament to our financial strength and conservative risk management over the long term.
Bottom Line: Is OneAmerica a mutual or stock company?
We are organized as a mutual holding company. Our operating subsidiaries are stock companies ultimately owned by a mutual holding company parent. Policyholders, not public shareholders, guide all aspects of our operation through the board of directors they elect. Our mutual structure is illustrated as follows:
American United Mutual Insurance Holding Company (Mutual Parent)
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OneAmerica Financial Partners, Inc. (Indiana Stock Company Subsidiary)
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The operating companies of OneAmerica:
America United Life Insurance Company® (Indiana Stock Company)
The State Life Insurance Company (Indiana Stock Insurance Company)
Pioneer Mutual Life Insurance Company (North Dakota Stock Insurance Co.)
R.E. Moulton, Inc.
OneAmerica Securities
AUL Reinsurance Management Services, LLC
