mutual of america life insurance company · mutual of america's general account invested...

Mutual of America Life Insurance Company320 Park Avenue, New York, New York, United States 10022

AMB #: 008851 NAIC #: 88668 FEIN#: 13-1614399

Phone: 212-224-1600 Fax: 212-224-2520 Website: www.mutualofamerica.com

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Mutual of America Life Insurance CompanyCredit Report

Report Release Date: Group Members Rating Effective Date:

January 19, 2018 December 13, 2017

Disclosure Information: View A.M. Best’s Rating Disclosure Form

Analytical Contacts

A.M. Best Rating Services, Inc.

Edward Kohlberg Kenneth Johnson

Associate Director Senior Director

[email protected] [email protected]

+1(908) 439-2200 Ext. 5664 +1(908) 439-2200 Ext. 5056

Ultimate Parent: N/A

A.M. Best Rating Unit: 008851 - Mutual of America Life Insurance Company

Best's Credit Ratings:Rating Effective Date: December 13, 2017

Best's Financial Strength Rating: A+ Outlook: Stable Action: Affirmed

Best's Issuer Credit Rating: aa- Outlook: Stable Action: Affirmed

Last Five Rating Events:

Best's Financial Strength Ratings Best's Issuer Credit RatingsDate Rating Outlook Action Rating Outlook Action12/13/2017 A+ Stable Affirmed aa- Stable Affirmed

12/02/2016 A+ Stable Affirmed aa- Stable Affirmed





Rating Rationale:

Balance Sheet Strength: Strongest

• Quality of surplus is strong as its absolute and risk-adjusted capitalization is more than sufficient to support its insurance andbusiness risks. The main driver of capital growth is organic earnings, with no financial leverage and modest use of reinsurance.

Credit Analysis008851 - Mutual of America Life Insurance Company

of 18 Print Date: April 10, 2018

http://ratings.ambest.com/DisclosurePDF.aspx?AMBNum=8851&URatingId=624022&AltSrc=152

• The invested asset portfolio is of good credit quality, comprised mostly of investment-grade bonds. Bond portfolio holdings consistmainly of corporates and U.S. government mortgage-backed securities and are predominately publicly traded, with readilydeterminable values and a relatively high degree of liquidity. There is a modest percentage of below-investment-grade bonds.Although the company does not directly invest in them, this position arises because of rating changes to individual securitiessubsequent to their purchase. The company's main real estate holding is its home office building, which has a fair market value wellabove its book value, is fully occupied and can be viewed as a source of unrealized surplus.

• Low-risk liability profile, which is made up of general account and separate account reserves, allows the company to have a minimalasset/liability mismatch. Each block of product liability, which can be determined with a relatively high degree of certainty, issupported by assets specifically assigned to that liability and supporting liquidity needs when warranted, although, nearly eighty-eightpercent of general account liabilities are viewed as interest sensitive.

Operating Performance: Strong

• Benefits from the favorable historical retention rates from the company's field force of salaried consultants. Retention is alsoenhanced by the stable nature of the tax-qualified market, the company's asset/liability management expertise and strong liquidityposition.

• Rates of return remain low relative to industry averages, as the company generally maintains a lower-yielding higher credit qualityfixed income portfolio. Also noted was the decrease in earnings in 2016 largely due to higher one-time expenses as well as lower netinvestment income.

• Continued premiums and sales growth. Premiums in 2016 benefited by two pension risk transfer deals.

Business Profile: Favorable

• The ratings for Mutual of America Life Insurance Company (MofA) reflect its niche market position as a provider of retirementproducts to non-profit organizations.

• MofA's target market is the group retirement plan market, specializing primarily in plans to non-profit entities between twenty-five toone hundred employees. Products are separated into two classes: growth and mature. Growth products are those productsmanagement expects to drive future profitability, and include 403(b), 401(k), 401(a) plans and individual retirement accounts. Eightypercent of total premium is generated from growth product sales. Mature products are current products being de-emphasized andinclude defined benefits plans, flexible annuity premiums (defined contribution money-purchase plans - FLAP), tax-deferred annuities,section 457 plans and group and individual insurance products.

Enterprise Risk Management: Appropriate

• ERM practices adequately address the company's risk profile. The company is generally viewed as conservative when it comes to itsproduct and investment profile.

• Risk governance is set at the top and includes detailed policies and guidelines that set the tone for the risk management for theenterprise.

• The company has ERM policies in place, which support capital management, investments, regulatory risk and underwriting. Thecompany, as a result of utilizing this program, has identified 32 material risks, which it can then run through its capital model andallocate the appropriate level of capital.

Outlook

The stable outlooks reflect the continued growing capital, solid Best's Capital Adequacy Ratio (BCAR) results and leadership position inthe small case not-for-profit retirement market.

Rating Drivers



The ratings could be negatively impacted by sustained trends of negative operating performance.

Financial Data Notes:

Time Period: Annual - 2016 Status: A.M. Best Quality Cross Checked Data as of: 12/01/2017

Key Financial Indicators:

Key Financial Indicators (000)Year End - December 31

2016 2015 2014 2013 2012

Assets 19,041,784 17,865,445 17,790,884 16,666,682 14,643,757

Policyholders' Surplus 993,422 1,032,188 997,719 951,163 907,912

Asset Valuation Reserve 85,637 80,299 79,563 72,740 53,607

Net Premiums Written 2,263,872 2,043,271 1,963,697 1,771,833 1,684,560

Net Investment Income 306,553 318,396 327,282 330,833 341,627

Net Income 16,359 64,503 59,168 49,372 45,090Source: Bestlink - Best's Statement File - L/A, US

(*) Within several financial tables of this report, this company is compared against the Group Annuity Composite.(*) Data reflected within all tables of this report has been compiled from the company-filed statutory statement.

Best's Capital Adequacy Ratio Summary -AMB Rating Unit (%)Confidence Level 95.0 99.0 99.5 99.6

BCAR Score 52.5 38.4 31.2 30.2Source: Best's Capital Adequacy Ratio Model - L/H, US

Credit Analysis:Balance Sheet Strength: Strongest

Capitalization:

Mutual of America's absolute and risk-adjusted capitalization is more than sufficient to support its insurance and business risks. Capital andsurplus is also considered to be of good quality, due to organic capital growth, modest use of reinsurance, investment portfolio of goodcredit quality and no financial leverage. In recent years, in accordance with its Long Range Strategic Plan, excess surplus has beenreinvested into its technology platform, sales distribution, and product pricing. As a result, capital and surplus growth has been relativelymodest.

Statutory capital and surplus decreased in 2016 and as of 3Q 2017 mainly due to the charges related to accounting for pensions, otherpostretirement benefits and the deferred compensation plan. In addition the company recorded lower net income in 2016 due largely tohigher one-time expenses as well as lower net investment income.



Capitalization: (Continued...)

Capital Generation AnalysisYear End - December 31

2016 2015 2014 2013 2012

Pre-Tax Net Operating Gain ($000) 24,511 59,623 58,847 49,271 39,061

Realized Capital Gains ($000) -11,866 505 1,144 935 7,135

Income Taxes ($000) -3,714 -4,375 823 835 1,106

Unrealized Capital Gains ($000) 3,494 -4,671 -853 13,001 -4,546

Change in AVR ($000) -5,339 -736 -6,823 -19,133 -4,209

Other Changes ($000) -53,280 -24,627 -4,936 11 25,399

Change in Capital & Surplus ($000) -38,767 34,469 46,557 43,251 61,734

Change in Capital & Surplus (%) -3.8 3.5 4.9 4.8 7.3Source: Bestlink - Best's Statement File - L/A, US

Liquidity AnalysisYear End - December 31

2016 2015 2014 2013 2012

Operating Cash Flow ($000) 386,893 119,669 93,828 262,814 311,874

Non-Investment Grade Bonds / Capital (%) 60.0 38.5 39.4 31.1 27.7

Mortgage Loans & RE to Capital (%) 21.0 21.0 22.1 23.3 25.6

Affiliated Investment to Capital (%) 22.2 22.7 23.9 25.0 27.4

Liquidity Ratios (%)Company Industry Composite

Year End - December 31 Year End - December 31

2016 2015 2014 2013 2012 2016 2015 2014 2013 2012

Quick Liquidity 81.2 81.4 79.2 79.3 78.0 35.0 35.6 37.3 38.3 38.8

Current Liquidity 107.6 107.7 107.1 106.5 106.2 69.6 69.6 70.9 72.3 74.0Source: Bestlink - Best's Statement File - L/A, USIndustry Composite: Group Annuity Composite - Bestlink - Best's Statement File - L/A, US

Leverage Analysis (%)Company Industry Composite

Year End - December 31 Year End - December 31

2016 2015 2014 2013 2012 2016 2015 2014 2013 2012

Capital & Surplus to Liabilities 14.4 15.5 15.1 14.4 13.9 11.1 11.6 10.6 10.3 10.3

Reinsurance Leverage 0.1 0.1 0.1 0.1 0.1 323.0 323.9 223.7 235.8 219.0

NPW & Deposits to Total Capital 2.1 1.8 1.8 1.7 1.8 2.1 1.3 1.9 1.9 2.5

Change in NPW & Deposits 10.6 4.3 10.3 5.6 7.0 62.1 -31.6 6.5 -20.4 47.8Source: Bestlink - Best's Statement File - L/A, USIndustry Composite: Group Annuity Composite - Bestlink - Best's Statement File - L/A, US



Capitalization: (Continued...)

Capital & Surplus to Liabilities

0.0

4.0

8.0

12.0

16.0

20.0

2012 2013 2014 2015 2016

13.9 14.4 15.1 15.514.4

10.3 10.3 10.6 11.6 11.1

- Company - Industry Composite

Source: Bestlink - Best's Statement File - L/A, USIndustry Composite: Group Annuity Composite - Bestlink - Best's Statement File - L/A, US

Reinsurance Leverage

0.0

75.0

150.0

225.0

300.0

375.0

2012 2013 2014 2015 20160.1 0.1 0.1 0.1 0.1

219.0 235.8 223.7

323.9 323.0

- Company - Industry Composite

Source: Bestlink - Best's Statement File - L/A, USIndustry Composite: Group Annuity Composite - Bestlink - Best's Statement File - L/A, US



Asset Liability Management – Investments:

Mutual of America's general account invested assets are predominantly in bonds, real estate, and the balance in stocks, contract loans,cash & short-term assets and BA and other invested assets. The company's primary investment goal is to match the General Accountportfolio's assets with the related insurance liabilities in conjunction with maximizing returns and maintaining a high quality investmentportfolio. Diversification among sectors, industries and individual issuers, as well as detailed credit analyses, are key components of thecompany's investment process. The company employs an asset/liability management strategy that aims to maximize investment yieldswhile at the same time protecting against the adverse effects of disintermediation and providing excellent liquidity. Consequently, theasset/liability matching is very tight with modest differences in the durations of liabilities and their corresponding assets.

The bond portfolio is comprised mainly of U.S. Government Mortgage Backed, Industrials and Banks & Finance. Below investment gradehas increased in recent periods due to rating changes to securities subsequent to their purchase. There are modest holdings in privateplacements. The low interest rate environment has impacted net yields for MofA. In an effort to increase yield, MofA has increased itsallocation to NAIC class 2 bonds in recent years. However, A.M. Best continues to believe that MofA will be challenged to maintain itsinvestment spreads if low interest rates persist.

Mutual of America's real estate holdings consist of its corporate office building in New York, in a prime location, and its data center in BocaRaton, Florida. The asset value of these buildings represents less than 3% of general account statutory assets at year-end 2016. Thecorporate office building's market value is well in excess of its book value and is fully leased.

Favorable equity markets in recent years, along with retirement plan sales and positive net flows, have increased separate account assets,which comprise over half of total statutory assets. Also, MofA does not have any credit risk exposure to its surplus related to its SeparateAccount if equity markets decline. The Separate Account currently includes twenty-four funds that are managed by Mutual of America andfourteen funds managed by other well-known mutual fund companies, such as Fidelity Investments, Vanguard, American Century,Oppenheimer, American Funds, T. Rowe Price and PIMCO.

Bond Portfolio - 2016 Bonds Distribution by Maturity (%)Years Years Average

0-1 1-5 5-10 10-20 20+ Maturity

Government 3.7 9.2 7.3 3.8 1.3 6.9

Government Agencies 3.6 8.3 3.7 1.8 0.4 5.1

Industrial & Miscellaneous 3.1 26.3 25.0 1.4 1.0 5.5

Total 10.4 43.8 36.1 7.0 2.6 5.8Source: Bestlink - Best's Statement File - L/A, US

Bond Distribution by Issuer TypeYear End - December 31

2016 2015 2014 2013 2012

Bonds ($000) 7,959,484 7,669,881 7,597,960 7,525,014 7,304,934

US Government (%) 25.4 21.4 14.3 13.8 14.0

Foreign Government (%) ... 0.3 0.3 0.3 0.3

State, Municipal & Special Revenue - US (%) 17.5 21.5 27.0 26.6 29.6

Industrial & Miscellaneous - US (%) 57.1 56.9 58.5 59.2 56.1Source: Bestlink - Best's Statement File - L/A, US



Asset Liability Management – Investments: (Continued...)

2016 Bond Distribution By Issuer Type

25.4%

17.5%

57.1%

US Government (%) State, Municipal & Special Revenue - US (%) Industrial & Miscellaneous - US (%)

Source: Bestlink - Best's Statement File - L/A, US

Operating Performance: Strong

Mutual of America's earnings trends have been positive in recent years due to stable premium growth, higher management fees arisingfrom the growth in its Separate Accounts business, lower credited interest rates and capital gains from the sale of invested assets.

The company continues to be profitable although net income has been lower in 2016 and 2017 due to expenses related to one-time non-qualified deferred compensation expenses incurred during the first quarter of 2016 related to certain executive officer retirements.Operating results were also impacted by lower than expected net income and lower Separate Account management and advisory fees dueto the volatility in the equity markets during the year. It was also noted that premiums continue to grow in 2016 and 2017 through favorablesales for the period.

Underwriting Results:

Profitability Test (%)Year End - December 31

2016 2015 2014 2013 20125-YR

Avg/Total

Benefits Paid to NPW & Deposits 89.2 99.8 85.2 87.3 89.1 90.3

Commissions & Expenses to NPW & Deposits 11.8 11.8 12.4 13.7 14.0 12.6

Net Operating Gains to Total Assets 0.2 0.4 0.3 0.3 0.3 0.3

Net Operating Gains to Total Revenues 1.0 2.6 2.4 2.2 1.8 2.0

Operating Return on Equity 2.8 6.3 6.0 5.2 4.3 4.9

Net Yield 3.74 3.99 4.57 4.26 4.55 4.21

Pre-tax Invest Total Return 3.62 3.93 4.15 4.65 5.05 4.26Source: Bestlink - Best's Statement File - L/A, US



Underwriting Results: (Continued...)

Net Operating Gain ($000)Year End - December 31

2016 2015 2014 2013 2012

Ordinary life -2,416 -122 -2,463 -2,297 -2,697

Group life -907 4,488 521 2,194 950

Supplementary contracts 580 -87 229 705 723

Individual annuities 39,572 2,659 46,855 42,893 37,472

Group annuities -6,491 57,863 15,175 6,624 2,868

Group A&H -2,112 -803 -2,293 -1,681 -1,362

Total 28,225 63,998 58,025 48,437 37,955Source: Bestlink - Best's Statement File - L/A, US

Accident & Health StatisticsYear End - December 31

2016 2015 2014 2013 2012

Net Premiums Written ($000) 3,247 3,401 3,534 3,704 3,894

Net Premiums Earned ($000) 3,261 3,402 3,545 3,717 3,913

Loss Ratio (%) 59.2 36.6 80.0 73.0 75.3

Expense Ratio (%) 148.3 133.6 128.8 118.7 109.6

Underwriting Results ($000) -3,485 -2,387 -3,845 -3,390 -3,301Source: Bestlink - Best's Statement File - L/A, US

Business Profile: Favorable

Mutual of America Life Insurance Company (MofA) is a mutual life insurance company formed in 1945 and domiciled in the State of NewYork. As a mutual company, MofA operates for the benefit of its policyholders, which also allows MofA to adopt a more strategic, long-termapproach to its business strategy.

MofA provides retirement plan products and services for nonprofit health and social welfare organizations, charitable, religious andeducational organizations, governmental entities and small-to-medium size for-profit employers and their employees. Generally, MofAtargets employers who have fewer than 100 employees and under $5 million in plan assets. There are some large employer pension planswith significant assets, and the company also provides retirement savings products suitable for individuals.

MofA's products are categorized as either 'growth' or 'mature'. Growth products represent those offerings which will drive sales andprofitability in the future. These products include thrift plans for 401(a), 401(k), and 403(b) plans. Other growth products are individualretirement annuities, non-qualified flexible premium annuities and SEP-IRAs. Mature products include those offerings which are no longerin favor in the market and as such are no longer the main focus of MofA's marketing programs. The mature product asset base has beendeclining in recent years due to a contracting client base as clients covert their mature product plans to growth product plans. Matureproducts include defined benefit plans, flexible annuity premiums (FLAP), tax deferred annuities and section 457 plans, and group andindividual insurance products.

For variable product offerings MofA offers 38 mutual funds, of which 24 are internally managed. An increasingly popular mutual fund groupamong policyholders are target retirement funds.

MofA distributes its group and individual offerings through salaried, non-commissioned employee sales personnel through 34 sales officeslocated in major metropolitan areas across the country. Each regional office is staffed by a Regional Officer, who has supervisoryresponsibility for that office, and is staffed by about five salaried sales personnel and four support individuals. Regional Office Marketing



Operations are divided into four regions: Eastern, Mid-South, Mid-West and Western, with each region headed by an Executive Field VicePresident. Sales personnel are licensed, as life insurance agents and as registered representatives for FINRA. The regional offices areprovided with standard sales literature and proposals, pre-approved from the Home Office. Management maintains that this distributionmodel, along with MofA's centralized underwriting review and approval procedures, significantly minimizes market conduct issues and is acompetitive advantage.

2016 Top Product Lines of Business (Net Premiums Written)

0.1%

0.2%

26.5%

73.1%

0.1%

Ordinary life Group life Individual annuities Group annuities Group A&H


2016 By-Line Business

Product Line

Direct PremiumsWritten

ReinsurancePremiumsAssumed

ReinsurancePremiums Ceded

Net PremiumsWritten

($000) (%) ($000) (%) ($000) (%) ($000) (%)

Ordinary life 1,402 0.1 25 99.4 42 4.4 1,385 0.1

Group life 6,408 0.3 ... ... 805 85.6 5,603 0.2

Individual annuities 599,623 26.5 ... 0.6 93 9.9 599,529 26.5

Group annuities 1,654,108 73.0 ... ... ... ... 1,654,108 73.1

Group A&H 3,247 0.1 ... ... ... ... 3,247 0.1

Total 2,264,787 100.0 25 100.0 940 100.0 2,263,872 100.0




Geographical Breakdown By Direct Premium Writings

2016 2015 2014 2013 2012

New York 463,919 415,399 331,260 327,789 362,853

Ohio 200,329 61,442 34,790 40,059 40,693

California 175,240 179,997 156,928 161,397 153,338

Florida 114,257 117,231 111,426 89,733 97,989

Pennsylvania 101,224 100,843 79,901 87,738 86,084

Texas 89,874 108,478 94,483 96,615 96,969

Minnesota 77,956 55,951 71,246 58,384 60,333

New Jersey 70,059 64,827 50,000 60,542 58,065

Illinois 63,337 64,778 64,807 47,170 47,024

Michigan 62,141 39,324 30,872 36,380 33,040

All Other 802,580 794,461 900,065 743,968 626,340

Total 2,220,916 2,002,731 1,925,778 1,749,776 1,662,729Source: Bestlink - Best's Statement File - L/A, US

Enterprise Risk Management: Appropriate

Mutual of America's risk governance is set at the top by Senior Management and is administered through the Company's Enterprise RiskManagement department reporting to the Executive Vice President - Enterprise Risk Management. The department utilizes policies andguidelines, including an internal committee structure that sets the tone for the risk management for the group, with clearly defined roles andresponsibilities. Balance sheet strength is reviewed on a regular basis through review of the A.M. Best BCAR and NAIC RBC models.Senior management and committees meet on a regular basis to review reports and operating trends which may uncover new risks to theenterprise. The asset/liability matching process is closely monitored and evaluated by business segment on a monthly basis bymanagement. Investment decisions are made taking into account percentage holding guidelines. The company also identifies and monitorstheir 32 key material risks which are applied to their capital model for stress testing. Lastly, cash flow and interest rate sensitivity testing isroutinely completed by the Actuarial Department.



Financial Statements:

Balance Sheet:

Balance Sheet:

Admitted Assets Year End - December 31

2016 ($000) 2015 ($000)

Bonds 7,959,484 7,669,881

Preferred Stocks ... ...

Common Stocks 71,398 35,383

Mortgage Loans ... ...

Real Estate 226,581 233,532

Contract Loans 107,059 107,621

Cash & short-term Investments 76,702 39,031

Premiums & Consideration Due 309 278

Investment income due & accrued 79,168 77,997

Other Assets 72,565 111,131

Total assets excluding separate accounts 8,593,267 8,274,853

Separate account assets 10,448,517 9,590,592

Total Assets 19,041,784 17,865,445

Liabilities & Surplus Year End - December 31

2016 ($000) 2015 ($000)

+ Net Policy Reserves 7,128,433 6,777,541

Liabilities for deposit type contracts 27,899 33,929

Policy Claims 4,932 4,722

Interest maintenance reserve 72,462 92,792

Commissions, taxes and expenses 38,555 37,024

Liabilities for employee benefits 174,483 181,526

Asset Valuation Reserve 85,637 80,299

Other Liabilities 67,444 34,831

Total liabilities excluding separate accounts 7,599,845 7,242,665

Separate account liabilities 10,448,517 9,590,592

Total Liabilities 18,048,363 16,833,257

YE 2016: + Analysis of reserves; Life $12,048; annuities $921,443; supplementary contracts with life contingencies $6,533; accidentaldeath benefits $5; disability disabled lives $10,087; miscellaneous reserves $6,155,754; accident & health $22,563.

YE 2015: + Analysis of reserves; Life $12,318; annuities $778,874; supplementary contracts with life contingencies $7,157; accidentaldeath benefits $5; disability disabled lives $11,059; miscellaneous reserves $5,943,788; accident & health $24,340.



Balance Sheet: (Continued...)

Balance Sheet: (Continued...)

Capital & Surplus Year End - December 31

2016 ($000) 2015 ($000)

Special Surplus Funds ... ...

Contingency Reserve 750 750

Unassigned Surplus 992,272 1,031,038

Special Reserve 400 400

Total Policyholders' Surplus 993,422 1,032,188

Total Liabilities & Surplus 19,041,784 17,865,445Source: Bestlink - Best's Statement File - L/A, US



Summary of Operations:

Summary Of Operations (000)

Statement of Income 2016 ($000) Expenses 2016 ($000)

Premiums: Death benefits 4,287

Ordinary life premiums 1,385 Claims incurred (PC) ...

Individual annuities premiums 599,529 Matured endowments ...

Credit life premiums ... Annuity & old age benefits 71,886

Group life premiums 5,603 Disability & Accident & Health benefits ...

Group annuities premiums 1,654,108 Coupons, annual endowments & similar benefits ...

Accident & Health group premiums 3,247 Surrender benefits 1,943,339

Accident & Health credit premiums ... Group conversion ...

Accident & Health other premiums ... Accident & Health benefits 3,695

Industrial life premiums ... Interest on contract or deposit-type funds 1,035

Miscellaneous premiums ... Payments on supplemental contracts 102

Premiums & annuity considerations ... Accumulated coupon payments ...

Fraternal premiums ... Total benefits recodes ...

Aviation reinsurance premiums ... Increase in life reserves 357,999

Deposit type funds ... Increase in accident & health reserves -1,777

Employee benefits plan premiums ... Increase in liabilities for premium deposit funds ...

Deposit administration funds ... Change in reserves ...

Other premiums ... Reserve adjustment on reinsurance assumed ...

Reinsurance premiums ... Other reserves ...

Total net premiums 2,263,872 Claim adjustment (PC only) ...

Supplementary contracts 78 Administrative expenses (PC only) ...

Coupon accum interest ... Commissions on premiums & annuityconsiderations

...

Net investment income 306,553 Commissions & expenses on reinsuranceassumed

...

Amortization of Interest Maintenance Reserve 24,347 Other commissions & expenses ...

Net operating gain from separate accounts ... Reinsurance expenses ...

Commissions & expense allowance on rein ceded 2 Interest expenses ...

Reserve adjustment on reinsurance ceded -423 Insurance taxes, licenses & fees 9,735

Reinsurance income ... General insurance expenses 257,642

Other income 80,387 Net transfer to separate accounts 20,355

Difference between net earned & net written (PConly)

... Other expenses ...

Management and/or service fees 18,055

Total operating income 2,692,872 Total expenses 2,668,298

Net operating gain before federal income taxes ...

Net operating gain before taxes & dividends 24,575

Net operating gain before refunds to members ...

Dividends - life 64

Dividends - accident & health ...

Refund to members (fraternal only) ...



Summary of Operations: (Continued...)

Summary Of Operations (000) (Continued...)

Statement of Income 2016 ($000) Expenses 2016 ($000)

Net operating gain after dividends & before taxes 24,511

Federal income taxes -3,714

Net operating gain ...

Net operating gain after federal income taxes ...

Net operating gain after dividends & taxes 28,225

Net operating gain after refunds to members ...Source: Bestlink - Best's Statement File - L/A, US

Cash Flow Analysis ($000)

Cash Flow Analysis ($000)

Funds Provided 2016 ($000) Funds Applied 2016 ($000)

Gross cash from operations 2,704,214 Benefit and loss payments 2,029,930

Transfers from separate accounts ... Commissions, taxes & expenses paid 272,888

Federal income tax refunds ... Transfers to separate accounts ...

Decrease in contract loans & premium notes ... Dividends to policyholders ...

Bond proceeds 1,465,835 Federal income taxes paid ...

Stock proceeds ... Increase in contract loans & premium notes ...

Mortgage loans proceeds ... Surplus notes paid back ...

Real estate proceeds ... Capital notes paid back ...

Collateral loans proceeds ... Capital paid back ...

Surplus notes paid in ... Repaid borrowed money ...

Capital notes paid in ... Repaid capital notes ...

Capital paid in ... Bonds acquired 1,790,693

Borrowed money ... Stocks acquired ...

Capital notes ... Mortgage loans acquired ...

Other investment proceeds ... Real estate acquired ...

Collateral loans acquired ...

Other investments acquired ...

Dividends to stockholders ...

Total Other cash provided 49,846 Total Other cash apportioned 88,712

Decrease in cash & short-term investments ... Increase in cash & short-term investments 37,672

Total 4,219,895 Total 4,219,895Source: Bestlink - Best's Statement File - L/A, US



Mutual of America Life Insurance CompanyReport Revision Date:February 16, 2018

Company Attributes:

Industry: InsuranceBusiness Type: Life, Annuity, and AccidentEntity Type: Operating CompanyOrganization Type: MutualBusiness Status: In Business - Actively UnderwritingMarketing Type: Direct ResponseFinancial Size: XII ($1 Billion to $1.25 Billion)

Company History:

Date Incorporated: 01/03/1945 Date Commenced: 10/01/1945 Domicile: United States: New York

Originally incorporated in 1945 as National Health & Welfare Retirement Association, on December 31, 1978, the Association converted toa mutual life insurance company under the title National Health & Welfare Mutual Life Insurance Association, Inc., and in 1984, the presenttitle was adopted.

Historically, MofA's pension business (the core of its operations) had been exempt from United States federal income tax under Section501(a) of the Internal Revenue Code. With the passage of the Taxpayer Relief Act of 1997, effective January 1, 1998, MofA's pensionbusiness was no longer exempt from federal income taxes. However, this tax legislation provided for certain special transition rules thathave moderated the impact of taxation since 1997 and will continue to do so going forward. While A.M. Best notes that its historical tax-exempt status has contributed to the company's favorable earnings profile, the change in tax status is not expected to materially impact thecompany's overall profitability.

Affiliations: While Mutual of America Life Insurance Company is the lead company in the enterprise, non-insurance affiliates and whollyowned subsidiaries are listed below.

Mutual of America Investment Corporation is a non-insurance affiliated investment management company, which offers a broad array ofinvestments for MofA separate accounts. Currently, 38 mutual fund options are available to MofA variable product policyholders, of which 24are managed internally. Mutual of America Institutional Funds, Inc. offers mutual funds for not for profit organizations, endowments,foundations and municipalities.

Three entities are wholly owned by Mutual of America Life Insurance Company via a downstream holding company named Mutual ofAmerica Holding Company, LLC. Mutual of America Capital Management, LLC is wholly owned and is an investment advisor. Investmentmanagement services are provided to the MofA General Account, the Mutual of America Investment Corporation, the MofA InstitutionalFunds, Inc. and a portfolio of clients not affiliated with Mutual of America pension plans. Mutual of America Securities, LLC is the distributorof Mutual of America Institutional Funds. 320 Park Analytics, LLC provides objective benchmarking services to assist plan sponsors infulfilling their fiduciary responsibilities with respect to the investment alternatives offered under Mutual of America group annuity contracts.

Company Operations:

Licensed Territory: (Current since 09/12/2001).The company is licensed in the District of Columbia and all states.

Company Information008851 - Mutual of America Life Insurance Company


Company Operations: (Continued...)

2017Rank Top 5 Lines of Business by NPW1 Group annuities 76.8%2 Individual annuities 22.8%3 Group life 0.2%4 Group A&H 0.1%4 Ordinary life 0.1%

2017Rank Top 5 Geographic Distribution by DPW1 United States: NY 18.0%2 United States: CA 8.9%3 United States: OH 6.5%4 United States: PA 5.9%5 United States: TX 5.2%

Source: Bestlink - Best's Statement File - L/H, US

Company Management:

Last significant update on 01/19/2018

Officers

President and CEO: John R. GreedSenior EVP and COO: William S. ConwaySenior EVP and CFO: Chris W. FestogSenior EVP and Chief Marketing Officer: William RoseSenior EVP and General Counsel: James J. RothEVP and Corporate Secretary: Diane M. AramonyEVP: Jeffrey M. AngeloEVP: Jeffrey W. DonaldsonEVP: Robert GiaquintoEVP: Thomas E. GilliamEVP: Jared GutmanEVP: Theodore L. HermanEVP: Joseph HummelEVP: Daniel J. LeSaffreEVP: Kathryn A. LuEVP: George L. MedlinEVP: Scott H. RothsteinEVP: Sonia SamuelsEVP: Brian Q. Severin

Directors

Clifford L. Alexander Jr.Kimberly A. CasianoWilliam S. ConwayWayne A. I. Frederick, M.D.John R. GreedEarle H. Harbison Jr.Maurine A. HaverFrances R. HesselbeinAmir LearLaSalle D. Leffall Jr., M.D.Connie Mack



Company Management: (Continued...)

Directors (Continued...)

Robert J. McGuireThomas J. Moran (Chairman)Ellen OchoaRoger B. PorterDennis J. ReimerJames J. Roth

Regulatory:

Auditor: KPMG, LLP

An examination of the financial condition is being made as of November 30, 2016, by the insurance department of New York. The 2016annual independent audit of the company was conducted by KPMG, LLP. The annual statement of actuarial opinion is provided by JeffreyTsai, FSA, Mutual of America Life Insurance Company.

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A Best's Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. The ratings are not assigned to specific insurance policies or contracts and donot address any other risk, including, but not limited to, an insurer's claims-payment policies or procedures; the ability of the insurer to dispute or deny claims payment on grounds of misrepresentation orfraud; or any specific liability contractually borne by the policy or contract holder. A Financial Strength Rating is not a recommendation to purchase, hold or terminate any insurance policy, contract or anyother financial obligation issued by an insurer, nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser.

A Best's Issue/Issuer Credit Rating is an opinion regarding the relative future credit risk of an entity, a credit commitment or a debt or debt-like security.

Credit risk is the risk that an entity may not meet its contractual, financial obligations as they come due. These credit ratings do not address any other risk, including but not limited to liquidity risk, marketvalue risk or price volatility of rated securities. The rating is not a recommendation to buy, sell or hold any securities, insurance policies, contracts or any other financial obligations, nor does it address thesuitability of any particular financial obligation for a specific purpose or purchaser.

In arriving at a rating decision, A.M. Best relies on third-party audited financial data and/or other information provided to it. While this information is believed to be reliable, A.M. Best does not independentlyverify the accuracy or reliability of the information. Any and all ratings, opinions and information contained herein are provided "as is," without any express or implied warranty.

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