![]() "We have been a good owner of that business," said Nestlé CFO François-Xavier Roger during his appearance at the February investor conference. A series of M&A transactions resulted in Gerber Products becoming part of pharmaceutical company Novartis in the 1990s, and Novartis ultimately sold Gerber to Nestlé in 2007. Gerber Products unveiled Gerber Life in the late 1960s, according to a subsequent report in The New York Times, to provide diversification at a time when the U.S. The other accident-and-health business includes accidental death and dismemberment, vision, dental and Medicare supplement. Gerber Life offers accident-and-health products to employer groups, which the company said mostly consists of medical stop-loss coverage. Its total across product lines was $945.2 million, an increase from $907.7 million in 2016. In addition to the life business, Gerber Life also produced direct premiums of $365.1 million and $108.5 million in the group and other accident-and-health lines, respectively, in 2017. In the past 20 years, including 2017, its total direct ordinary life premiums rose at an average annual rate of 7.6% and never rose by less than 1.1% during that stretch. Though Gerber Life's volume of first-year ordinary life premiums has exhibited volatility over time, falling as much as 20.3% and rising as much as 51.2% on year-over-year bases in the past decade, its overall direct ordinary life writings have been much more consistent. ![]() Direct ordinary life renewal premiums rose 9.9% in 2017, however, which allowed Gerber Life to generate overall expansion in direct ordinary life premiums of 8.2% on a year-over-year basis. It marked the company's slowest rate of growth in that measure of business volume since 2010, when first-year premiums fell by 9.7%. ![]() Gerber Life generated first-year direct ordinary life premiums of $75.9 million in 2017, an increase of less than 0.4% from 2016. among individual life entities allocated more in advertising costs to the life business lines than Gerber Life in absolute dollar terms in 2017. Only United of Omaha Life and New York Life Insurance Co. and Physicians Life Insurance Co., also produced ratios of ad spend to first-year and single-premium direct life business that were well in excess of the industry average. Other companies that are active in the juvenile whole life business, such as Mutual of Omaha Insurance Co.'s United of Omaha Life Insurance Co. Colonial Penn is arguably best known for television advertisements featuring game-show host Alex Trebek. had a higher ratio of life-related advertising expenses to first-year and/or single-premium direct ordinary and group life premiums at 117.5%. life entities for which 2017 data was available as of March 29, only Colonial Penn Life Insurance Co. ![]() The $67.5 million in advertising expenses Gerber Life allocated to its life insurance business in 2017 represented nearly 88.9% of the company's direct first-year premiums in the ordinary and group life lines and 14.3% of its total direct life premiums, including renewals.Īmong the individual U.S. When Nestlé SA announced in February that it had initiated a strategic review of Gerber Life Insurance Co., company executives told the audience at an investor conference that the process involved a subsidiary that "you might not have been aware that we had."īut while the insurer's lines of ownership may not have been well-known to investors in a global food and beverage conglomerate, its mass marketing for the Gerber Grow-Up Plan juvenile whole life insurance policy has made the company something of a household name to cable television viewers in the United States. A business that decades ago provided a new and diverse revenue stream for a baby food manufacturer has become a relatively obscure noncore activity for its current owner.
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