Postal Issues — Rate Case Pushes Forward

In a sense, even with reform, Mutual of Omaha is looking at a future that doesn’t include the mailstream as a cornerstone of its marketing efforts.

“As we figure out how to switch away from the mail, I don’t see us coming back to it just because the rate of increase will become more predictable,” Graham says. “It’s unlikely that, at some point, we’ll be completely priced out of the market. Long before that happens, we can pull the targeting levers and simply increase the minimum return rates we need to offset the higher cost structure. If we got to that point, we’d really be talking about a smaller business than we have today.”