Business
The Marketing Alliance Announces Financial Results for Its Fiscal 2016 Third Quarter and Nine Months Ended December 31, 2015
The Marketing Alliance Announces Financial Results for Its Fiscal 2016 Third Quarter and Nine Months Ended December 31, 2015.
About this update from Marketing Alliance, Inc. (the)
[{"type":"text","content":"\n \n The Marketing Alliance, Inc. (OTC: MAAL) (“TMA”), today announced \n financial results for its fiscal 2016 third quarter and nine months \n ended December 31, 2015.\n \n \n Mr. Timothy M. Klusas, TMA’s Chief Executive Officer, provided \n additional details below on the Company’s operations for the third \n quarter of the 2016 fiscal year:\n \n \n \n Insurance Distribution Business: “We continue to work with our current \n carriers to ensure that the independent agents in our network are able \n to operate efficiently and offer their customers a wide range of \n products. While net operating revenue margins were down for the nine \n month period versus the prior year, we anticipated the decrease due to \n the continuing low-interest rate environment and recognize that \n ongoing changes in product offerings often have led to a transitional \n period for our distributors. The comparison to the first nine-months \n of this fiscal year to the prior one was affected by factors most \n notably in the life insurance business and our long-term care \n business. In-force rate increases and changing product features \n adversely affected our long-term care business as revenues and \n profitability decreased substantially from the prior year. While it is \n unclear whether these factors will reverse, we could not offer more \n long-term products or more carriers’ products to offset the reduction \n in business. We feel our experience was comparable to others in the \n industry. Our life insurance business was affected by the changing \n dynamics of carrier’s relative strengths and our having to adjust to \n these changes by paying more commission expense relative to revenue to \n producers to drive new relationships. Please recall that our insurance \n revenue is driven by new insurance product sales. The most prominent \n example of this phenomena occurred subsequent to the end of the \n quarter when Genworth Financial announced it would suspend new life \n insurance and annuity sales after early March 2016. We had enjoyed a \n significant and beneficial relationship with Genworth as it had \n historically been one of our largest carrier relationships on the \n basis of revenue and new business insurance premium. This particular \n relationship had lasted for many years, even predating our ...