Dedicated to Making a Difference
Just 45 years ago the vast majority of health and welfare workers had no insurance coverage.
They had been excluded under the Social Security Act of 1935. They were desperate as they looked forward to a crushing and bleak retirement. Out of this pressing need a new company was born with a small S10,000 grant. Today it is known as Mutual of America, an organization with consolidated assets of over $6 billion.
Loyal people are the core of the success of this company. That loyalty didn’t happen overnight nor did it arise from a void. It was inspired by the loyalty shown to others by the one man who has guided Mutual of America for over 20 years, its Chief Executive Officer and Chairman of the Board, William J. Flynn.
Flynn is a man who believes in getting things done through person-to-person contact and open dialogue. Mutual of America reflects that philosophy.
The company provides a full range of employee benefit and pension services to its thousands of clients — from medical centers, social service agencies, schools, The United Way, Goodwill Industries and countless others — and these clients may have hundreds of employees or be one or two person offices.
Whatever their size, each is treated equally.
The smallest receive the same care and attention as the largest. And because Mutual of America has 36 regional offices across the country, clients have casy access to full-service staff that are ready to meet their needs on a daily basis. They can sit across a desk and discuss their problems face to face, and not have to rely on a fax machine or an impersonal telephone. Regional offices bridge the distance between a large city home office and smaller villages and towns.
A sense of family, of being there, is an important part of the Mutual of America mystique. And family is very important to Bill Flynn.
Born in New York City, Flynn’s mother’s family is from County Mayo and his father’s from County Down. He is a frequent visitor to Ireland, and has a clear recognition of the need to put something back into the land of his ancestors.
“We need to get Irish Americans together, to use the vast economic clout we have to help Ireland,” he said in an interview with Irish America.
For Flynn, giving something back can mean serving on the board of Co-operation Ireland, or as member of the board of governors of The Irish American Partnership or it can simply mean playing host at the First Annual Maynooth Golf Tournament’s Fund Raising Event.
Flynn recently brought his entire family to Ireland, wife Peggy Collins, from the Bronx, whom he married while stationed with the U.S. Air Force in Texas, and his three sons and daughter. But as usual.
Flynn’s trip was not simply for entertainment. He was there to participate in the international conference in Derry on conflict resolution “Beyond Hate — Living with our Deepest Differences,” which included participants from more than 22 countries racked by strife and four of the former Beirut hostages. The conference, as Ireland’s President Mary Robinson (introduced by Flynn) said, was seen as a means towards creating “a climate of justice and tolerance.”
Mutual of America reflects the philosophical bent of its chairman in a number of different ways. The company encourages voluntarism, expansion of educational opportunities and making a difference in the world.
Mutual of America supports a series of Bill Moyers television specials on PBS. “Circle of Recovery” (October 1991) dealt with African-American men recovering from drug and alcohol addiction who discussed racism, powerlessness and rage. Some other specials were “Minimum Wages” (January 1992) about workers trying to make ends meet and “Hate on Trial” (February 1992) which explored prejudice and the law. Mutual of America also supported the Oslo Conference of August 1990 at which world leaders came together to explore new ways to combat the many faces of hatred. It also supported the Williamsburg Charter celebration of the freedom of conscience guaranteed by the First Amendment and a curriculum to help leaders address the practice of religious liberty in a pluralistic society.
Naturally, Mutual of America has limited resources for these programs and must choose wisely among the many worthwhile projects that are proposed.
The men and women of Mutual of America are a hard working group, a uniquely dedicated people who day after day spend their talents and imagination in caring and serving. There is a loyalty in the company that flows from the top down and back up again. Business is not simply a matter of proper accounting and payouts but the quality of life of each employee.
The business of Mutual of America is people. It always has been and always will be. And to make each person and department a living part of the team an annual meeting is held at which a presentation is made that is identical to the one made to the Board of Directors. The turnover in the company is very small and even in these times of massive layoffs the workforce remains constant, everyone is fully employed.
There is another important element that separates Mutual of America from most other insurance companies: Its employees are all on salary. No commissions are paid to anyone, so the service a client receives is completely dictated by need.
Of course, any insurance company is only as good as its financial strength, and always aware of its clients’ particular needs and goals, Mutual of America has consistently followed a conservative investment policy and avoided junk bonds as tempting as they were in a booming economy. In fact, there are no junk bonds at all in its portfolio. One hundred percent of the company’s General Account portfolio is made up of investment grade bonds. The overall portfolio rating is “Aa+”. Less than three percent of this portfolio and less than two percent of Mutual of America’s total assets are invested in mortgage and real estate holdings.
Mutual of America’s financial strength is further demonstrated by its total surplus-to-asset ratio, which constitutes the margin for protection of its clients. In excess of seven percent of General Account assets on a consolidated basis for the first half of 1992, this margin significantly exceeds the industry average and the level considered adequate by regulatory authorities and independent rating organizations.
In terms of total assets, Mutual of America ranks among the top three percent of the nation’s life insurance companies. Assets have grown sixfold since 1980.
It is impossible to be a wise financial administrator without carefully watching how you spend your money. In 1991, Mutual of America’s expenses, as a percentage of its premium income, were practically the same as in the year before and lower then they were three years earlier. At 13.7 percent, this percentage is well below the average of 17.0 percent reported by A.M. Best Company for the 100 leading life/health insurance companies.
This does not mean Mutual of America skimps on services. It offers its clients advanced technology, high quality products and services as well as the personal attention of a professional and responsive staff.
All modern companies pride themselves on their advanced technology. In its own field, Mutual of America feels it leads the pack. Its National Communications Center in Boca Raton, Florida, is state of the art. Computers work round the clock updating records, processing payments and storing new information. Our clients benefit daily and will do so for years to come.
Holline is another innovation in telecommunications. Clients who use this service have immediate access to the latest information about their employees’ benefits under their plans and greater control in the administration of their plans.
It is one thing to talk about yourself, it is another to hear what independent rating services have to say.
Moody’s Investors Services – “Aa2” insurance financial strength rating; attributed to “high quality investment portfolio, good capitalization.
- Standard & Poor’s – “AA+” for claims paying ability.
- Duff & Phelps – “AA+” for claims paying ability.
- A.M.Best – “A+” (Superior); attributed to “surplus funds… significantly above those of the average life insurance company.”
Finally, Mutual of America was cited by a report broadcast on NBC-TV as one of the ten “safest big insurance companies” in the nation.
There are many other things that can be said about Mutual of America: the wide variety of products it offers, the many investment opportunities it provides, how it deals and consults with its clients. A company with so much experience and expertise could fill many pages.
It has been said, “what’s past is prologue” and so it is planned for Mutual of America. The giant pioneering strides it has taken in its brief history offer a fine guide to what to expect for tomorrow.
There is nothing beyond its vision and little beyond its reach. If a history is written of the insurance industry in this century, Mutual of America will surely deserve a special paragraph of recognition.
Editor’s Note: This article was originally published in the October 1992 issue of Irish America. ♦
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