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
"This week we're really focusing on scalability, asset preservation and how do you back up to the cloud and in the cloud with object storage, which is really a new way of attacking dealing with your file, your blocked data, where you put it and how you access it," stated Jeff Greenwald, Senior Director of Market Development at HGST, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed ...
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, introduced the technologies required for implementing these idea...
"A lot of times people will come to us and have a very diverse set of requirements or very customized need and we'll help them to implement it in a fashion that you can't just buy off of the shelf," explained Nick Rose, CTO of Enzu, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud enviro...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and containers together help companies achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of Dev...
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, 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 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive ad...
"Plutora provides release and testing environment capabilities to the enterprise," explained Dalibor Siroky, Director and Co-founder of Plutora, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.