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
In order to meet the rapidly changing demands of today’s customers, companies are continually forced to redefine their business strategies in order to meet these needs, stay relevant and continue to see profitable growth. IoT deployment and development is integral in this transformation, and today businesses are increasingly seeing the value of investing their resources into IoT deployments. These technologies are able increase ROI through projects such as connecting supply chains or enabling sm...
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
SYS-CON Events announced today that EARP 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. "We are a software house, so we perfectly understand challenges that other software houses face in their projects. We can augment a team, that will work with the same standards and processes as our partners' internal teams. Our teams will deliver the same quality within the required time and budget just as our partn...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
SYS-CON Events announced today that Tappest will exhibit MooseFS 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. MooseFS is a breakthrough concept in the storage industry. It allows you to secure stored data with either duplication or erasure coding using any server. The newest – 4.0 version of the software enables users to maintain the redundancy level with even 50% less hard drive space required. The software func...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software in the hope of capturing value in IoT. Although IoT is relatively new in the market, it has already gone through many promotional terms such as IoE, IoX, SDX, Edge/Fog, Mist Compute, etc. Ultimately, irrespective of the name, it is about deriving value from independent software assets participating in an ecosystem as one comprehensive solution.
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
SYS-CON Events announced today that Systena America 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. Systena Group has been in business for various software development and verification in Japan, US, ASEAN, and China by utilizing the knowledge we gained from all types of device development for various industries including smartphones (Android/iOS), wireless communication, security technology and IoT serv...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
SYS-CON Events announced today that Outscale 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. Outscale's technology makes an automated and adaptable Cloud available to businesses, supporting them in the most complex IT projects while controlling their operational aspects. You boost your IT infrastructure's reactivity, with request responses that only take a few seconds.
Everywhere we turn in our industry we can find strong opinions about the direction, type and nature of cloud’s impact on computing and business. Another word that is used in every context in our industry is “hybrid.” In his session at 20th Cloud Expo, Alvaro Gonzalez, Director of Technical, Partner and Field Marketing at Peak 10, will use a combination of a few conceptual props and some research recently commissioned by Peak 10 to offer a real-world consideration of how the various categories of...
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).
DevOps at Cloud Expo – being held October 31 - November 2, 2017, 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 world's largest enterprises – and delivering real r...
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...