Click here to close now.




















Welcome!

News Feed Item

MassMutual Continues Strong Momentum, Announces 2013 Financial Results

Sales in key businesses, assets under management reach new records, financial strength remains at high levels

SPRINGFIELD, Mass., Feb. 26, 2014 /PRNewswire/ -- Massachusetts Mutual Life Insurance Company (MassMutual) today announced strong consolidated statutory financial results1 for 2013, including continued record sales in key businesses and sustained levels of statutory surplus and total adjusted capital.  These results, coupled with key milestones and achievements by the company in 2013, reflected MassMutual's continuing momentum and position the company for continued success in 2014 and beyond.

For the year ended 2013, sales2 of whole life insurance were $347 million, up 14 percent from the prior year and represented the eighth consecutive year of record whole life sales.  Retirement Services sales totaled more than $11 billion, including a record $7.4 billion in retirement plan sales, up 60 percent and driven largely by the company's acquisition of The Hartford's Retirement Plans business.  Assets under management3 rose 26 percent to $639 billion, the highest level reported in the company's history.  The company's statutory surplus and total adjusted capital – both key indicators of the company's overall financial strength – were $12.5 billion and $14.5 billion respectively, and continued to position the company with substantial financial resources, a significant achievement in a year when the company made its largest acquisition ever.

"Throughout MassMutual's 162-year history, one thing has remained constant, and that is our purpose: to help people secure their future and protect the ones they love," said Roger Crandall, Chairman, President and CEO, MassMutual.  "As a mutual company, it is the successful execution of our strategy rooted in that purpose which helped drive another fantastic year in 2013.  We had record-breaking sales, announced a historic dividend payout, maintained our excellent financial strength, and most importantly, delivered on our commitments to those who rely on our products and services for their financial security."    

"At a time when economic growth is slow and consumers need to take more responsibility for their financial future, our results and achievements highlight the benefits of doing business with a financially strong company focused on delivering long-term value to its policyowners and customers," Mr. Crandall continued.  "In addition, we have positioned the company for future success as we continue to focus on delivering superior financial strength, high dividends and a high-quality customer experience."

Financial Results
Results for MassMutual and its consolidated life insurance subsidiaries for the year ended Dec. 31, 2013 compared to the year ended Dec. 31, 2012 (unless otherwise noted) include:

  • Sales results within the company's key product lines:
    • Whole life insurance sales increased 14 percent.
    • Retirement plan sales increased 60 percent.
    • Annuity sales increased 57 percent.
    • Disability income insurance sales increased 10 percent.
    • Investment management sales increased 44 percent.
  • Surplus totaled $12.5 billion as of Dec. 31, 2013, compared to $12.7 billion the prior year.
  • Total adjusted capital was $14.5 billion as of Dec. 31, 2013, compared to $14.4 billion the prior year.
  • Revenue was $27.6 billion compared to $26.7 billion the prior year.
  • Net gain from operations before policyowner dividends and taxes – the company's primary earnings measure as a mutual company – was $1.8 billion compared to $2.1 billion the year before.  The earnings reduction year over year and the statutory net loss reflect the impact of the acquisition of The Hartford Retirement Plans business.  Excluding the purchase price impact of the acquisition, earnings would have been more than $350 million higher. 
  • An estimated dividend payout4 for 2014 of $1.49 billion to eligible participating policyowners, which reflects a dividend interest rate of 7.10 percent on eligible participating life insurance policies5.

MassMutual Financial Group's enterprise-wide results6 for 2013 include:

  • Assets under management were $639 billion as of Dec. 31, 2013, an increase of 26 percent from $508 billion at the end of 2012.
  • Worldwide insurance in force was $547 billion at the end of 2013, up 5 percent from $521 billion at the end of 2012.
  • Premium and other deposits were $38.8 billion for 2013, a 9 percent increase from $35.5 billion in 2012.         

"MassMutual's solid operating fundamentals and favorable investment results enabled us to continue our trajectory of year-over-year growth in 2013, which showed in our increases in sales, revenues, and assets under management," said Michael Rollings, Executive Vice President and Chief Financial Officer, MassMutual.  "Our unique mix of asset management and international businesses also continued to serve as a strategic differentiator that generated additional earnings which ultimately benefit our policyowners.  Overall, the excellent performance of our broad portfolio of businesses –which include a highly diversified and productive distribution network – reflects continued success for MassMutual and validates our long-term strategy and focus on our policyowners and customers."

Key Milestones and Achievements
The company also reported significant progress and recognition toward achieving its strategic objectives and cited several noteworthy achievements:

  • Successfully integrated The Hartford's Retirement Plans business, which was purchased on Jan. 1, 2013.  Through the acquisition, MassMutual assumed more than 1.2 million retirement plan participants, grew sales significantly in the small plan market, and seamlessly combined operations to position the business for future success.
  • Two MassMutual subsidiaries made progress on integrating recent acquisitions.  OppenheimerFunds Inc. acquired SteelPath Capital Management and SteelPath Fund Advisors, which is focused on energy infrastructure Master Limited Partnerships, and Baring Asset Management acquired SEI Asset Korea Co., Ltd., enabling the firm to expand its asset management services into Korea.  All of the acquisitions both within our retirement and asset management businesses illustrate MassMutual's diversification and ongoing ability to implement its growth strategy.
  • Grew the company's network of financial professionals by 5.3 percent over 2012, bringing the company's total field force to more than 5,200 financial professionals at the end of 2013.
  • Named as one of the top 100 companies on the FORTUNE 500®, moving up 27 spots to No. 94. MassMutual was also named the third most admired company on FORTUNE's Most Admired list in its industry category (life and health insurance), and was also the highest-ranked mutual company.
  • Sustained its leadership position in customer service.  In 2013, MassMutual's call centers and representatives captured top awards for client service and best practices for the fifth year in a row by ContactCenterWorld, a global association for contact center best practices and networking.
  • Continued to earn recognition for its commitment to diversity and inclusion. MassMutual was again honored by Working Mother magazine as one of its 100 Best Companies (Working Mother, October 2013), by DiversityInc. for the third year in a row as one of 25 Noteworthy Companies (DiversityInc., Summer 2013), and was named a Top 50 Company for Executive Women by the National Association of Female Executives (NAFE).  In late 2013, MassMutual also learned it received a 100 percent rating on the Human Rights Campaign Foundation's Corporate Equality Index, earning a place on its 2014 Best Places to Work List.
  • Established a new operations center in Phoenix, Ariz., creating a corporate presence in the Western United States and enabling the company to continue providing exemplary service to all policyowners and customers regardless of where they live.

Consolidated Statutory Results ($ in Millions)


2013

2012

 % Change

Life Company Assets

$195,007

$175,111

11%

Life Company Liabilities

$182,483

$162,424

12%

Net Gain from Operations




            Before Dividends and Taxes

$1,763

$2,077

(15)%

Dividends to Participating Policyowners

$1,475

$1,379

7%

Surplus

$12,524

$12,687

(1)%

Financial Strength Ratings7

A.M. Best Company, A++ (Superior)
Fitch Ratings, AA+ (Very Strong)
Moody's Investors Service, Aa2 (Excellent)
Standard & Poor's, AA+ (Very Strong)

For more information about MassMutual's consolidated statutory financial results, visit: http://www.massmutual.com/aboutmassmutual/financialinfo/documents.

1 These are consolidated statutory results of Massachusetts Mutual Life Insurance Company and its U.S.-domiciled life insurance subsidiaries: C.M. Life Insurance Company and MML Bay State Life Insurance Company.

2 Sales are classified as weighted sales, which are based on weighted annualized new premium, with single premium payments weighted at 10 percent.

3 Assets under management include assets and certain external investment funds managed by MassMutual subsidiaries, including OppenheimerFunds Inc., Babson Capital Management LLC, Baring Asset Management Limited, and Cornerstone Real Estate Advisers LLC.

4 Dividends are determined annually, subject to change and not guaranteed.

5 The dividend interest rate is not the rate of return on the policy.  Dividends consist of an investment component, a mortality component and an expense component.  Therefore, dividend interest rates should not be the sole basis for comparing insurers or policy performance.

6 Enterprise-wide results include the results for Massachusetts Mutual Life Insurance Company and its U.S.-domiciled life insurance subsidiaries, as well as the affiliated companies of MassMutual Financial Group.

7 Ratings are for Massachusetts Mutual Life Insurance Company and its U.S.-domiciled life insurance subsidiaries:  C.M. Life Insurance Company and MML Bay State Life Insurance Company.  Ratings are as of 2/25/14 and are subject to change. Founded in 1851, MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyowners. The company has a long history of financial strength and strong performance, and although dividends are not guaranteed, MassMutual has paid dividends to eligible participating policyowners consistently since the 1860s. With whole life insurance as its foundation, MassMutual provides products to help meet the financial needs of clients, such as life insurance, disability income insurance, long term care insurance, retirement/401(k) plan services, and annuities. In addition, the company's strong and growing network of financial professionals helps clients make good financial decisions for the long-term.

MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. MassMutual is headquartered in Springfield, Massachusetts and its major affiliates include: Babson Capital Management LLC; Baring Asset Management Limited; Cornerstone Real Estate Advisers LLC; The First Mercantile Trust Company; MassMutual International LLC; MML Investors Services, LLC, Member FINRA and SIPC; OppenheimerFunds, Inc.; and The MassMutual Trust Company, FSB. For more information, visit www.massmutual.com or find MassMutual on Facebook, Twitter, LinkedIn, YouTube and Google+.

Contact:  Mark Cybulski 
               413-744-5427 
               [email protected]

SOURCE MassMutual

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, will introduce the technologies required for implementing thes...
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the ...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
ElasticBox, the agile application delivery manager, announced freely available public boxes for the DevOps community. ElasticBox works with enterprises to help them deploy any application to any cloud. Public boxes are curated reference boxes that represent some of the most popular applications and tools for orchestrating deployments at scale. Boxes are an adaptive way to represent reusable infrastructure as components of code. Boxes contain scripts, variables, and metadata to automate proces...
In his session at @ThingsExpo, Lee Williams, a producer of the first smartphones and tablets, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. He will explain how M2M controllers work through wirelessly connected remote controls; and specifically delve into a retrofit option that reverse-engineers control codes of existing conventional controller systems so the...
To support developers and operations professionals in their push to implement DevOps principles for their infrastructure environments, ProfitBricks, a provider of cloud infrastructure, is adding support for DevOps tools Ansible and Chef. Ansible is a platform for configuring and managing data center infrastructure that combines multi-node software deployment, ad hoc task execution, and configuration management, and is used by DevOps professionals as they use its playbooks functionality to autom...
The 3rd International WebRTC Summit, to be held Nov. 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 15th International Cloud Expo, 6th International Big Data Expo, 3rd International DevOps Summit and 2nd Internet of @ThingsExpo. WebRTC (Web-based Real-Time Com...
It’s been proven time and time again that in tech, diversity drives greater innovation, better team productivity and greater profits and market share. So what can we do in our DevOps teams to embrace diversity and help transform the culture of development and operations into a true “DevOps” team? In her session at DevOps Summit, Stefana Muller, Director, Product Management – Continuous Delivery at CA Technologies, answered that question citing examples, showing how to create opportunities for ...
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advance...
Skeuomorphism usually means retaining existing design cues in something new that doesn’t actually need them. However, the concept of skeuomorphism can be thought of as relating more broadly to applying existing patterns to new technologies that, in fact, cry out for new approaches. In his session at DevOps Summit, Gordon Haff, Senior Cloud Strategy Marketing and Evangelism Manager at Red Hat, discussed why containers should be paired with new architectural practices such as microservices rathe...
IBM’s Blue Box Cloud, powered by OpenStack, is now available in any of IBM’s globally integrated cloud data centers running SoftLayer infrastructure. Less than 90 days after its acquisition of Blue Box, IBM has integrated its Blue Box Cloud Dedicated private-cloud-as-a-service into its broader portfolio of OpenStack® based solutions. The announcement, made today at the OpenStack Silicon Valley event, further highlights IBM’s continued support to deliver OpenStack solutions across all cloud depl...
Puppet Labs is pleased to share the findings from our 2015 State of DevOps Survey. We have deepened our understanding of how DevOps enables IT performance and organizational performance, based on responses from more than 20,000 technical professionals we’ve surveyed over the past four years. The 2015 State of DevOps Report reveals high-performing IT organizations deploy 30x more frequently with 200x shorter lead times. They have 60x fewer failures and recover 168x faster
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
Containers are not new, but renewed commitments to performance, flexibility, and agility have propelled them to the top of the agenda today. By working without the need for virtualization and its overhead, containers are seen as the perfect way to deploy apps and services across multiple clouds. Containers can handle anything from file types to operating systems and services, including microservices. What are microservices? Unlike what the name implies, microservices are not necessarily small,...