Apparently Rich and the Board are planning to sell MOA with the executives going away with Hugh packages.
With all the layoffs and assumed more coming,cutting of benefits,reducing staff,ETC, it should be obvious that they are making MOA more sellable.
apparently brian severince just sued steve johnson riche
@2sj sue-i-cidal.
@OP sellable? Or survivable?
Quote:
"Surplus is down $1B in 5 yrs if you factor out Landmark, 1150 Broken Sound, & 320 Park. Just like the fully disclosed Annual Report used to only book and classify $250M of real estate assets towards the surplus"
No kidding, that is why MOA is reorganizing and will have a profit this year. Last year they had appox. 2 million gain. Only been appox. two years Rich is in charge and he has made aggressively major changes that has resulted in MOA becoming stronger financially. Only disgruntled employees will constantly state irrelevant past results. Going forward is what is important. Rich has put MOA back on track to be profitable.
Why exclude anything? Surplus is surplus, it is not fake.
MOA is regulated by NYS and audited by a major CPA firm so stating MOA is reporting fake numbers is in it self a fake statement..
@11m why doesn’t the company post the full quarterly NYDFS filings on the public website ? Why not post them to the Employee Intranet ? What are you hiding ? Why not show all of the schedules including all compensation for the C-Suite ? Why no fully disclose the special incentives packages for sales reps and c-suites ? TRANSPARENCY Means full disclosure. Not cherry picking fake news. Real Surplus is down $1B in 5 yrs if you factor out Landmark, 1150 Broken Sound, & 320 Park. Just like the fully disclosed Annual Report used to only book and classify $250M of real estate assets towards the surplus.
Leave out the sales? so funny. Why leave them out they happened.
Below are the real numbers.
On a GAAP basis there was Approximately $715 million in surplus (as of December 31, 2024), according to Mutual of America’s 2024 Annual Report selected financial highlights; Statutory total surplus was about $577.5 million.
Scroll down about 3 pages.
LINK:
https://www.mutualofamerica.com/about-us/annual-report
Mutual of America’s official 2024 Annual Report lists Total Surplus of $715M as of year-end 2024, along with a surplus ratio of 12.4% (Total Surplus as a percentage of General Account assets).
In the company’s statutory financial statements (prepared under New York State Department of Financial Services practices), Total Surplus is reported as $577,493,175 (assigned surplus $1.15 million + unassigned surplus ~$576.3 million)
Number of Active 401(k) and 403(b) Plan Participants
494,000
Surplus Ratio
(Total Surplus as a percentage of General Account assets)
12.4%
@x3 so at the end of 2024, without the remaining sale of 320 Park, the actual surplus was what, $290M ? So, it fell from $1B 5 yrs before to under $300M. Yes or No ? Rating agencies & NYDFS had MoA on high watch alert. Yes or No ?
Quotes:
"Assets sales like Landmark, 1150 Broken Sound, and 320 park ave. The surplus dipped to under $300M in late 2024 w/out these sales. So, the current surplus is artificially propped up. Accounting tricks"
"The company really only has only 350,000 active contributing participants in group plans."
How is selling assets artificially propping up surplus. Answer they are not. What goes into Surplus is the Sale price over and above carried book value. Real money not artificial.
Secondly, 350,000 only in group plans? What about individual plans, there are many thousands.
Third: Accounting tricks? (see detail under " Why surplus is higher under GAAP"
Every company uses them,but what is not mentioned, the Balance Sheet is in compliance with statuary accounting,whereas on a GAAP basis the surplus would be higher. since the are charges against surplus such as A haircut on the Bonds /stocks and all invested assets (AVR) Which reduces surplus .Asset Valuation Reserve (AVR) is a statutory liability required under NAIC SSAP No. 7 for U.S. life and health insurance companies . It acts as a contingency reserve to absorb potential credit-related (default) losses and equity risk on invested assets, reducing surplus volatility
Another reserve that also reduces surplus is the IMR. The IMR captures and defers realized capital gains and losses (net of tax) on fixed-income investments (and certain related items) that arise from changes in the general level of interest rates. These amounts are then amortized into investment income over the approximate remaining life (or expected maturity) of the assets sold, rather than being recognized immediately in surplus or earnings.
Prepaid expenses also reduce surplus since statuary accounting requires the company to charge surplus.
So add back the IMR, Prepaid expenses, furniture/equipment, part of the AVR and other reserves required for Statuary Accounting and surplus would be higher under GAAP accounting.
Why surplus is higher under GAAP
Statutory Accounting Principles (SAP) are deliberately more conservative than GAAP. Their main goal is to protect policyholders by emphasizing solvency and liquidity (can the company pay claims if it stops writing new business tomorrow?). GAAP focuses more on matching revenues and expenses and showing the ongoing economic performance of a going-concern company for investors.Key differences that make statutory surplus lower (and therefore GAAP surplus/equity higher) include:Non-admitted assets
Under SAP, certain assets that cannot be readily converted to cash to pay claims (e.g., furniture, equipment, some deferred tax assets, prepaid expenses, certain receivables) are “non-admitted.” They are written off against surplus.
GAAP includes them as assets (subject to normal impairment/depreciation rules). This alone reduces statutory assets and surplus relative to GAAP.
Acquisition costs (DAC)
SAP usually requires more conservative (higher) reserves, often using prescribed tables, higher margins for adverse deviation, or undiscounted amounts in some cases. GAAP typically uses best-estimate assumptions with smaller margins. Higher liabilities under SAP reduce surplus.
Other conservative items Certain valuation reserves or provisions (e.g., Asset Valuation Reserve in life insurance) are charged directly to statutory surplus.
Timing of investment gains/losses and other items is often more conservative or smoothed differently under SAP.
@g7 net outflows are massive. Assets sales like Landmark, 1150 Broken Sound, and 320 park ave. The surplus dipped to under $300M in late 2024 w/out these sales. So, the current surplus is artificially propped up. Accounting tricks that they have used to their advantage the last few years to book cost savings in the current year instead of spreading them out over future year are outrageous & should be illegal. They constantly use slush funds in and out to prop up artificially the true revenue & profit numbers. Slight of hand. Smoke & mirrors. Accounting tricks. Call it what you may. Company can’t find easy ways to raise revenue. Sales is down. Accenture will cost more, not less over massive QA issues medium term leading to more client defections. Bottom line is that they with all these changes HAVE NOT IMPROVED THE CLIENT EXPERIENCE & MUTUAL IS NOT EASY TO DO BUSINESS WITH. In reality, the reality is, the company really only has about 4,000 group plans left which mean anything & only 350,000 active contribting participants in group plans. TEAM CX really does SUCX.
@d8 they both denied it hard last year that the company may be sold. I have learned over many years in the corporate world that the harder someone denies something they are lying & covering up. When a CEO & CFO both deny hard at the same time, it usually means the opposite. They both have lost all credibility. Don’t believe a word either one of they say. When the company is sold, they each will walk away with millions in a golden parachute plus their special incentive 3 yrs deferred comp shares.
@g7 company’s net flows are negative $1B a year. Slow constant bleed. $1B net flows out neg translates into -$20M in lost revenue .
That is why they are downsizing and reducing costs so in 2-3 years from now they will be profitable and become salable at a higher price as i previous stated, read it again.
By the way they have value. Look at the Balance sheet and see what their surplus is and they still have 10's of thousands of clients.
No one will buy a company that has no value.
Yes.
They are playing on words. What they are saying is referring as of now. It is planned though, but latter down the road. Maybe 2-3 years from now.
@b4 the company is still spending lavishly on NFL Stadium Suites in LA, ATL, chicago, and Minnesota. $1M per year & 1/2 the people who go are regional office friends & family.
@OP wait. Both Janofsky & Rich said to our faces last year that the company is not being sold. Are we to as.sume they are liars ?
@b4 how about the once loyal employees..? Rip to them.
Does this surprise anyone??? This company has taken a nose dive since greed ruined this company! He was more concerned with his favorite music he wanted to play after meetings, or the d-mb wine and crapes videos when the company was failing. Not to mention the horrendous spending on the lavish meeting for the sales VPs in Florida and Texas! It is embarrassing that the once loyal clients are now suffering...