https://www.fitchratings.com/entity/mutual-of-america-life-insurance-company-80091235
Rating Action Commentary
Fitch Revises Mutual of America's Outlook to Stable; Affirms IFS Rating at 'BBB+'
Fri 12 Jun, 2026 - 9:49 AM ET
Fitch Ratings - New York - 12 Jun 2026: Fitch Ratings has affirmed the Insurer Financial Strength (IFS) rating of Mutual of America Life Insurance Company (Mutual of America) at 'BBB+'. The Rating Outlook has been revised to Stable from Negative.
The revision of the Outlook reflects Mutual of America's continued balance sheet strength while executing on its strategic turnaround plan. The company produced a modest operating loss in 2025; however, core profitability improved yoy and Fitch views the plan as credible to further improve results through expense reductions and revenue expansion.
Mutual of America's rating is underpinned by its very strong capital position, demonstrated by its regulatory capital ratio, Prism capital model score and its lack of financial leverage. The rating is also highly influenced by the company's business profile, which reflects Mutual of America's position within the niche non-profit, small case retirement plan market and its differentiated approach to distribution, emphasizing underserved and underpenetrated portions of the market. The rating is currently constrained by Mutual of America's challenged profitability.
Key Rating Drivers
Pressured Profitability: Mutual of America's 'BBB+' IFS rating is one notch below the implied IFS rating of 'A-' due to its financial performance and earnings, which is the weakest link. The company reported net income of $2 million for 2025, compared with a net income of $53 million in 2024 and a net loss of $236 million in 2023. Positively, operating results improved yoy with a modest net loss of $15 million in 2025 compared with an operating loss of $155 million in the prior year, excluding the company's sale of the remaining stake in its home office building in New York City. In 1Q26, the company produced a net operating gain of $3 million. Fitch expects a slight loss for the full year 2026, followed by modest profitability in 2027. Profitability will be driven largely by continued reductions in expenses including vendor efficiency, contract rationalization, reduced real estate footprint and workforce optimization.