MassMutual 2010 Financial Results Hit New Records

SPRINGFIELD, Mass., Feb. 24, 2011 /PRNewswire/ -- Massachusetts Mutual Life Insurance Company (MassMutual) today announced consolidated statutory financial results(1) for 2010, including strong increases in earnings and surplus, as well as assets under management for the company and its subsidiaries.  The company also achieved record sales in its core product, whole life insurance – the fifth consecutive year of record sales – as well as record sales in its Retirement Services business for the second consecutive year.  The results underscore the company's success in working toward its mission to be the leading mutual life insurance company based on financial security, high dividends to participating policyholders and quality service.

For the year ended Dec. 31, 2010, net gain from operations before dividends and taxes – the company's primary earnings measure as a mutual company – grew to $1.9 billion, up 3 percent from the prior year, while net income grew to $594 million, up significantly from a net loss of $283 million for 2009.  Weighted sales(2) for whole life insurance were $237 million for 2010, up 17 percent over 2009, and retirement plan sales from its Retirement Services business totaled $5.3 billion, up 11 percent.  Assets under management by MassMutual and its subsidiaries(3) grew to $448 billion as of Dec. 31, 2010, up 10 percent from the end of 2009.  The company's surplus and total adjusted capital – both key indicators of the company's overall financial strength – grew to record levels of $10.4 billion (up 12 percent) and $12.4 billion (up 13 percent), respectively.

"Against the background of a slow and uncertain economic recovery, MassMutual produced excellent results last year, including records in some key areas," said Roger Crandall, Chairman, President and CEO, MassMutual.  "Our ability to focus on long-term financial strength rather than short-term market pressures enabled us to again deliver profitable sales of our core products, continue to build our capital and surplus, and offer quality financial solutions through one of the best career agency systems in the industry."

"Our 2010 performance points to how appealing mutuality – and the value of a company that puts its policyholders first – has become," Crandall continued.  "As we celebrate our 160th anniversary this year, we are in an excellent financial and competitive position.  With our enduring financial strength, mutual structure that focuses on our policyholders, quality products and services that help meet a lifetime of financial needs, and dedicated employees and financial professionals who stand ready to serve our customers, we have great momentum as we begin 2011."

Major results for MassMutual and its consolidated life insurance subsidiaries for the year ended Dec. 31, 2010 compared to the year ended Dec. 31, 2009 (unless otherwise noted) include:

• Sales results within the company's key product lines:
  • Weighted whole life sales increased 17 percent.
  • Retirement Services sales increased 11 percent.
• Net gain from operations before dividends and taxes was $1.9 billion, up 3 percent from $1.8 billion.  
• Net income was $594 million, up significantly from a net loss of $283 million.  
• Revenue was $17.0 billion, down 7 percent from $18.3 billion in the prior year.
• Surplus was $10.4 billion as of Dec. 31, 2010, up 12 percent from $9.3 billion at the end of 2009.
• Total adjusted capital was $12.4 billion at the end of 2010, up 13 percent from $11.0 billion at the end of 2009.

MassMutual Financial Group's Enterprise-wide results(4) for 2010 include:

• Assets under management were $448 billion as of Dec. 31, 2010, up 10 percent from $408 billion at the end of 2009.
• Investment management sales increased 17 percent.
• Worldwide insurance in force was $490 billion at the end of 2010, up 2 percent from $483 billion at the end of 2009.
• Premium and other deposits was $23.3 billion for 2010, down 5 percent from $24.6 billion for 2009.

"Our 2010 financial results include very strong earnings and capital growth that were generated by the solid operating fundamentals of our businesses," said Michael Rollings, Executive Vice President and Chief Financial Officer, MassMutual.  "We achieved record levels of surplus and capital while paying one of the most competitive dividends in the industry to our eligible participating policyholders.  In addition to the strong performance of our insurance operations, our major subsidiaries – including Babson Capital Management, Baring Asset Management and OppenheimerFunds – continued to provide additional earnings and capital growth.  Overall, the continued consumer and institutional demand for our products and services shows that the marketplace continues to see strength in the MassMutual franchise and the value of doing business with a mutual company."  

The company also reported significant progress toward achieving its stated strategic objectives:

• Approved a dividend for 2011 of approximately $1.23 billion to eligible participating policyholders(5).  The dividend approved for 2011 reflects a dividend interest rate of 6.85 percent on new eligible participating life insurance policies(6).
• Grew MassMutual's network of financial professionals to more than 5,200, an increase of 3 percent from the end of 2009.
• Earned continued accolades for its customer service.  In 2010, the company's call centers received top honors in the Contact Center Industry Awards sponsored by ContactCenterWorld.  The company's Retirement Services business earned 32 "Best-In-Class" awards from PlanSponsor magazine for outstanding customer satisfaction.
• Won recognition for its commitment to diversity by receiving the highest rating of 100 percent in the annual Corporate Equality Index conducted by the Human Rights Campaign.

Financial Strength Ratings(7)

A.M. Best Company, A++ (Superior)

Fitch Ratings, AA+ (Very Strong)

Moody's Investors Service, Aa2 (Excellent)

Standard & Poor's, AA+ (Very Strong)

Watch an online video of Chairman, President and CEO Roger Crandall discussing MassMutual's year-end financial results at www.massmutual.com.  For more information about MassMutual's consolidated statutory financial results, visit http://www.massmutual.com/aboutmassmutual/financialinfo/documents.

This press release includes forward-looking statements that are subject to certain risks and uncertainties.  Actual results, performance or achievements may differ materially from those expressed or implied.

Founded in 1851, MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyholders. 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 policyholders every year 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.

SOURCE MassMutual