News
Dedication to niche markets fuels Minnesota Mutual's Group Division's success
from Minnesota Mutual's bi-monthly newsletter, Excel, 9/15/97
Minnesota Mutual's Group Insurance division, with year-to-date sales at approximately $210 million, is already 70 percent ahead of total sales for 1996 – all of 1996 – which was a record year. Focusing on niche markets and emphasizing tailored products and services, Group continues its explosive growth rate.
Today, the Group Insurance division is the Company's largest business unit in terms of underwriting mortality risk, and Minnesota Mutual is the nation's ninth largest writer of group life insurance based on direct premiums. From 1995 to 1996, Minnesota Mutual experienced 50 percent growth in direct group life premiums written. This growth positioned Minnesota Mutual as the fastest growing group life insurer in the United States!
Key messages for target market
"Financial strength is key to buyers of group insurance products," says
Kris Helberg, Group Insurance. "Minnesota Mutual's financial credentials,
flexible products and commitment to the group market are messages we consistently
deliver within our niches."
The division's competitive advantage lies in its commitment to tailor-made solutions for clients.
"We listen to customer needs," says Jim Johnson, Group Insurance. "Listening is the first step in customizing a program that will satisfy a new client."
Many factors contribute to success
Variable Group Universal Life (VGUL) has given the Company a significant
competitive advantage when soliciting new business from employers. Last
month, a VGUL sale of more than $150 million — the largest premium
ever received by the Company — was closed.
In addition, Group's Farm Credit area reached its 1997 sales goal in June and will likely reach double the goal by the end of the year.
Association business is also a key to Group division's success. A group office in Washington D. C., dedicated to the association market, has been open one year.
More than just Minnesota Mutual
One of Group's major goals is to expand the Company's presence nationally.
"Our presence outside the Midwest has increased dramatically the past
two years," says Helberg. "We haven't sacrificed our local growth, which
makes this success even more exciting."
For example, eight of the top 26 publicly-held employers in Minnesota, as ranked by revenue, purchase their employee group life insurance from Minnesota Mutual.
Still on the move
When A.M. Best releases its 1997 rankings of group life insurance companies
based on direct premiums written, Minnesota Mutual expects to move up
to the sixth largest company nationally. This accomplishment can be attributed
to Group targeting customers who fit within the division's strategy.
"We have a clear and well-defined vision that focuses on our customers," says Johnson. "These customers are located in well-established niches. Our success is directly related to our dedication to these niches, enabling us to continue doing what we do best."
