Highest-ever policyowner dividend underscores monetary power; strategic transactions place firm for future success
SPRINGFIELD, Mass.--MassMutual in the present day reported sturdy 2018 monetary outcomes fueled by file income, in addition to whole adjusted capital that remained at an all-time excessive. The corporate additionally introduced or accomplished quite a few strategic transactions in 2018 that may yield future alternatives and place the corporate for continued development and success.
For the 12 months ended December 31, 2018, MassMutual reported whole gross sales by its advisor community of $30.eight billion, a 20 % improve over the prior 12 months, led by sturdy demand for its life insurance coverage and annuity choices as a part of the corporate’s broad vary of holistic monetary options. These outcomes, coupled with sturdy funding earnings, resulted in file income of $32.5 billion, a 24 % improve over 2017.
The corporate’s capacity to honor its commitments was as sturdy as ever, with statutory surplus ending the 12 months at $15.6 billion and whole adjusted capital reaching a file $19.9 billion1 – greater than double over the previous decade, and serving to MassMutual preserve among the many highest rankings of any firm in any industry2.
It's this similar stability that enabled the corporate to approve an estimated $1.72 billion dividend payout to eligible collaborating policyowners in 2019, its highest payout ever and the 151st consecutive 12 months it has paid a dividend3.
As well as, MassMutual elevated the insurance coverage safety it supplies to just about $715 billion, and was the number-one author of entire life insurance coverage for the third 12 months in a row4. The corporate additionally delivered greater than $5.three billion in insurance coverage and annuity advantages to its policyowners and prospects, persevering with its ongoing dedication to assist extra People obtain monetary safety.
“All through a risky 2018, we continued to comprehend regular demand for our merchandise, strengthened our monetary place and took steps to boost our long-term competitiveness, all whereas serving to extra individuals construct a extra assured future,” mentioned Roger Crandall, Chairman, President and CEO of MassMutual. “As a purpose-driven group, our concentrate on serving to individuals safe their future and shield those they love continues to serve us nicely, as we’ve constructed a powerful basis for ongoing success, and most significantly, an everlasting measure of safety and stability that our policyowners and prospects deserve.”
MassMutual’s internet acquire from operations earlier than policyowner dividends and taxes – the corporate’s major earnings measure as a mutual firm – was $1.86 billion, up barely over 2017. After factoring in policyowner dividends and different gadgets, the corporate realized a statutory internet loss associated to the extraordinary occasion of its sale of the bulk curiosity of MassMutual Japan to Nippon Life final 12 months. Excluding this one-time affect, the corporate would have realized a statutory revenue of roughly $500 million.
MassMutual additionally took a number of steps in 2018 to bolster its long-term efficiency by evolving the technique for its key, long-time strategic differentiators – its worldwide insurance coverage and asset administration companies. Most notably, the corporate started to evolve the possession construction for a few of these corporations from wholly-owned working subsidiaries to forging distinct, mutually helpful partnerships in broader markets across the globe.
Along with the MassMutual Japan transaction, one other major instance of this technique was the sale of MassMutual Asia to Yunfeng Monetary Group and a number of other Asia-based traders. Each transactions allow MassMutual to profit from sustaining an ongoing curiosity in strongly positioned entities, in addition to present alternatives for potential future collaborations and joint ventures that may yield larger advantages over time.
MassMutual expects to reap comparable benefits with its transaction introduced in October 2018, by which OppenheimerFunds, Inc., the corporate’s retail asset administration affiliate, will mix with Invesco Ltd., to kind one of many largest asset administration corporations on the earth. Anticipated to shut in 2019, the transaction will give MassMutual the most important possession place within the mixed agency – with an approximate 15.5 % stake – and expanded international scale, larger range of choices and extra capital that may improve the corporate’s monetary power.
“Our monetary leads to 2018, coupled with these strategic transactions that place us strongly for the long run, underscore our unwavering dedication to supply enduring worth to our policyowners,” mentioned Elizabeth Ward, Chief Monetary Officer and Chief Actuary of MassMutual. “Moreover, our devoted advisor pressure, broad and various product suite, increasing digital capabilities, and prudent, long-term funding method allow MassMutual to proceed to function from a place of power as we assist extra individuals obtain monetary safety.”
Persevering with its unwavering dedication to its policyowners, prospects and staff, MassMutual earned a number of accolades highlighting its pledge to moral management, range and inclusion, and wonderful customer support. MassMutual reached No. 93 on the FORTUNE® 5005 in 2018 and was named to the 2019 FORTUNE ‘World’s Most Admired Firms®’ list6 – No. 1 in innovation for the third consecutive 12 months. As soon as once more, the corporate additionally earned an ideal rating of 100 on the Human Rights Marketing campaign Company Equality Index, was named a Incapacity Equality Index® (DEI) Finest Place to Work for Incapacity Inclusion and was honored for the 11th straight 12 months with prime awards from ContactCenterWorld. Most just lately, MassMutual was named to Forbes’ 2019 listing of America’s Finest Employers for Variety and, for the sixth consecutive 12 months, was acknowledged as a World's Most Moral Firm by the Ethisphere Institute.
For extra details about MassMutual’s consolidated statutory monetary outcomes, go to: https://www.massmutual.com/about-us/corporate-governance
About MassMutual
MassMutual is a number one mutual life insurance coverage firm that's run for the advantage of its members and collaborating policyowners. MassMutual presents a variety of economic services, together with life insurance coverage, incapacity earnings insurance coverage, long run care insurance coverage, annuities, retirement plans and different worker advantages. For extra info, go to www.massmutual.com.
1 These are consolidated statutory outcomes of Massachusetts Mutual Life Insurance coverage Firm and its U.S.-domiciled life insurance coverage subsidiaries: C.M. Life Insurance coverage Firm and MML Bay State Life Insurance coverage Firm.
2 Monetary power rankings for MassMutual and its subsidiaries, C.M. Life Insurance coverage Firm and MML Bay State Life Insurance coverage Firm are as follows: A.M. Finest Firm, A++ (Superior); Fitch Scores, AA+ (Very Robust); Moody's Buyers Service, Aa2 (Wonderful), and Customary & Poor's, AA+ (Very Robust). Scores are as of February 25, 2019, and are topic to vary.
three Dividends are decided yearly, topic to vary and never assured.
four In response to preliminary outcomes for LIMRA’s Fourth Quarter 2018 U.S. Retail Particular person Life Insurance coverage Gross sales Report.
5 FORTUNE and FORTUNE 500 are registered logos of Time Inc. and are used beneath license. From FORTUNE Journal, June 1, 2018. ©2018 Time Inc. Used beneath license. FORTUNE and Time Inc. aren't affiliated with, and don't endorse services or products of MassMutual.
6 From FORTUNE Journal, February 2019. © 2019 Fortune Media IP Restricted. All rights reserved. Used beneath license. FORTUNE and The World’s Most Admired Firms are registered logos of Fortune Media IP Restricted and are used beneath license. FORTUNE and Fortune Media IP Restricted aren't affiliated with, and don't endorse services or products of, MassMutual.
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Michael McNamara
413-744-3917
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Supply: MassMutual
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