Boca retiree here. Finally some good news from the Great State of Florida.
Weiss Ratings, LLC out of plush & ritzy Palm Beach Gardens Florida has released its ratings of Mutual of America.
B Rating
https://weissratings.com/en/insurer/l88668
It rates 654 Life & Annuity Companies with 8 receiving an A Rating and 119 receiving a B rating so mutual is in the top third.
They are saying the following:
B Good. This insurance company offers good financial security and has the resources to deal with a variety of adverse economic conditions. It comfortably exceeds the minimum levels for all of our rating criteria, and is likely to remain healthy for the near future. However, in the event of a severe recession or major financial crisis, we feel that this assessment should be reviewed to make sure that the firm is still maintaining adequate financial strength.
Major Rating Factors: Good quality investment portfolio (5.8 on a scale of 0 to 10) despite mixed results such as: no exposure to mortgages and large holdings of BBB rated bonds but small junk bond holdings. Fair overall results on stability tests (4.6) including excessive premium growth, weak results on operational trends, negative cash flow from operations for 2024 and fair risk adjusted capital in prior years. Weak profitability (1.7).
Other Rating Factors: Strong capitalization (7.1) based on excellent risk adjusted capital (severe loss scenario). Excellent Liquidity (7.0).
Safety Rating
Our financial strength ratings are based on a complex analysis of hundreds of factors that are synthesized into a series of indexes: capitalization, investment safety (Life & Annuity and Health companies only), reserve adequacy (Property & Casualty companies only), profitability, liquidity, and stability. These indexes are then used to arrive at a letter grade rating measured on a scale from A to F. A good rating requires consistency across all indexes. A weak score on any one index can result in a low rating, as insolvency can be caused by any one of a number of factors, such as inadequate capital, unpredictable claims experience, poor liquidity, speculative investments, inadequate reserving, or consistent operating losses.
The ratings are derived, from annual and quarterly financial data provided by SNL Financial LC, the National Association of Insurance Commissioners and State Insurance Regulators. This data may be supplemented by information that we request from the insurance companies themselves. Although we seek to maintain an open line of communication with the companies being rated, we do not grant them the right to influence the ratings or stop their publication. (See Rating Definitions)
F-ck the Comdex ratings