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2008-10-21 issue:

MMA strong and stable despite economy

by Mennonite Mutual Aid

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GOSHEN, Ind.—The financial markets have experienced significant turmoil and losses. The question on the minds of many Mennonite Mutual Aid members is what all of this means for them and for MMA—particularly since their retirement savings and investment accounts may have been losing value this year before this most recent Wall Street streak of problems.

“MMA, like all investment managers, has exposure to several of the names in the recent headlines, through direct ownership of securities, via direct and indirect business relationships, and through major shifts in the financial system,” said Chad Horning, MMA chief investment officer, on Sept. 18. “In general, our exposure to the securities has been modest, since one of the hallmarks of MMA and its subadvisors’ styles has been to create diversified portfolios.”
With big-name banks and insurance companies in trouble, MMA released a statement on Sept. 30 saying that it is still strong and stable.

“As stewards of your funds, we assure you MMA remains financially sound and strong,” said Larry Miller, MMA president. “We have surpluses well above our reserves. Our investment managers and financial management staff are closely monitoring the financial industry situation to safeguard MMA and our members.”

“We’ve had investment losses during the third quarter like many investors,” said Chad Horning, chief investment officer. “No one really knows what the effect of this current market turbulence will be or how long it will last. But we’ve fortunately had very diversified investments, and we are concentrating on being prudent as we manage our way through this crisis within the financial services and insurance industry.”

“MMA has reserves above the requirements established by insurance regulators and an additional significant surplus,” added Mel Claassen, chief financial officer at MMA. “Our reserves are there for our members who depend on our financial stability to fund health insurance claims, life insurance claims, and annuity payments.”

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