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
"Storage is growing. All of IDC's estimates say that unstructured data is now 80% of the world's data. We provide storage systems that can actually deal with that scale of data - software-defined storage systems," stated Paul Turner, Chief Product and Marketing Officer at Cloudian, in this SYS-CON.tv interview at 17th Cloud Expo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Cloud Expo, Inc. has announced today that Aruna Ravichandran, vice president of DevOps Product and Solutions Marketing at CA Technologies, has been named co-conference chair of DevOps at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
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 session at @ThingsExpo, Steve Wilkes, CTO and founder of Striim, will delve into four enterprise-scale, business-critical case studies where streaming analytics serves as the key to enabling real-time data integration and right-time insights in hybrid cloud, IoT, and fog computing environments. As part of this discussion, he will also present a demo based on its partnership with Fujitsu, highlighting their technologies in a healthcare IoT use-case. The demo showcases the tracking of patie...
DevOps and microservices are permeating software engineering teams broadly, whether these teams are in pure software shops but happen to run a business, such Uber and Airbnb, or in companies that rely heavily on software to run more traditional business, such as financial firms or high-end manufacturers. Microservices and DevOps have created software development and therefore business speed and agility benefits, but they have also created problems; specifically, they have created software securi...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business. Though, IoT is far more complex than most firms expected with a majority of IoT projects having failed. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, Chief IoTologist at Wipro, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology portfolios and business models to adopt and leverage IoT. He will delve in...
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facing...