MSI Insurance | Footnotes

MSI Historical Materials Matt's Résumé e mail me

1 When we talk about MSI we are referring to several companies. These are:

2 An example of this is the Pension area of MSI. They administered pension plans for small businesses. This is a pretty thin-margin business in which they got paid something like 25 basis points, 0.25%, of the assets in the plan. However, if a new customer whose plan totalled $10 million came in, it was insisted that the internal results showing this be called Revenues. They weren't revenues at all; the revenues would be, over a year's time, 0.25% of $10,000,000, or $25,000. I pointed out that the table was actually Assets on which we earned some administration fee, but I was told that Jim Van Houten wanted this called Revenues and thus revenues it stayed.

3 When we talk about COUNTRY we are also referring to several companies. At various times, this ensemble was called Country Companies, COUNTRY Insurance & Financial Services and then finally just COUNTRY Financial. The component companies are:

4 I'm counting the $12M surplus note, the $18M surplus note and the purchase of Modern for $22.9M for a combined $52.9M. So, fiddy mill, more or less.

5 The writeoffs related to IGF and AgPI totalled $41,244,904. MSC's surplus first exceeded this amount in 1980 but fell back to $33.6M in 1985. In 1986, 52 years after being founded, MSC's surplus went to $43.6M and stayed there and higher until the events related on this page took it below $0. Thus, the AgPI writeoffs wiped out the amount of equity it took MSC slightly more than half a century to build.

Page last updated 1/28/2014

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