MassMutual announces 2017 policyowner dividend
$1.6 billion estimated payout underscores exceptional policyowner value, strong financial position
SPRINGFIELD, Mass., Nov. 7, 2016 /PRNewswire/ -- Massachusetts Mutual Life Insurance Company (MassMutual) announced today that its long-term approach will benefit eligible participating policyowners once again through an estimated $1.6 billion dividend payout in 2017. The payout, approved by the company's Board of Directors, reflects a dividend interest rate1 of 6.70 percent for eligible participating policies.
"As a mutual company operating for the benefit of our participating policyowners and members, the people we protect are our top priority, and we are honored to once again share our success with them through our annual dividend payout," said Roger Crandall, MassMutual Chairman, President and CEO. "Today's announcement is a testament to our strength and stability amid global headwinds, including a prolonged, unprecedented low interest rate environment. We are extremely proud of our ability to sustain a highly competitive dividend while providing accessible financial solutions and sound guidance to help generations of families secure their future and protect the ones they love."
While dividends are not guaranteed, MassMutual has paid them to eligible participating policyowners every year since 1869. In fact, the approved estimated 2017 payout is one of the largest in the company's history and caps a decade in which MassMutual has delivered more than $14 billion of dividends to eligible participating policyowners.
During a similar period from 2006 to 2015, MassMutual also paid more than $32 billion in insurance and annuity benefits, achieved 10 straight years of record weighted whole life insurance sales2, and nearly doubled its total adjusted capital to historic levels of more than $17 billion (as of 9/30/16), while making multiple significant strategic acquisitions. Notably, earlier this year, MassMutual completed the acquisition of the MetLife Premier Client Group, substantially increasing the size of its distribution network to more than 9,300 advisors ready to serve customers across the nation. All of this demonstrates the company's ability to simultaneously deliver exceptional value and excellent service, honor its commitments, and increase its financial strength.
Along with financial strength ratings3 that are among the highest of any company in any industry, strong operating fundamentals and long-term investment philosophy, MassMutual continues to provide excellent customer value through its key strategic differentiator – a distinct mix of high-performing businesses, including its globally renowned asset management subsidiaries, OppenheimerFunds, Inc. and Barings LLC, as well as its retirement and international insurance operations.
"With a highly competitive dividend, a recently expanded and strengthened advisor force, and a host of innovative tools and solutions that help people in every phase of life, we are primed to reach millions more people who need the holistic financial solutions we provide," said Mike Fanning, Executive Vice President and head of MassMutual U.S. "All of this enables us to be strong stewards of the company and provide financial well-being for our customers – deeply understanding their needs, simplifying their lives, and helping them build a more confident future."
About MassMutual
MassMutual is a leading mutual life insurance company that that is run for the benefit of its members and participating policyowners. MassMutual offers a wide range of financial products and services, including life insurance, disability income insurance, long term care insurance, annuities, retirement plans and other employee benefits. For more information, visit www.massmutual.com.
1 The dividend and dividend interest rate (DIR) are determined annually, subject to change and are not guaranteed. Dividends for eligible participating life insurance policies primarily consist of investment, mortality and expense components. The DIR is used to determine the investment component of the dividend. It is not the rate of return on the policy and should not be the sole basis for comparing insurers or policy performance. In addition to receiving payouts in cash, whole life insurance policyowners may use dividends to pay premiums, buy additional insurance coverage, accumulate at interest, or repay policy loans and policy loan interest.
2 Sales are classified as weighted sales, which are based on weighted annualized new premium, with single premium payments weighted at 10 percent.
3 Financial strength ratings for MassMutual and its subsidiaries, C.M. Life Insurance Company and MML Bay State Life Insurance Company are as follows: A.M. Best Company, A++ (Superior); Fitch Ratings, AA+ (Exceptionally Strong); Moody's Investors Service, Aa2 (Excellent); and Standard & Poor's, AA+ (Very Strong). Ratings are as of November 7, 2016, and are subject to change.
Contact:
Paula Tremblay
413-744-0885
[email protected]
SOURCE MassMutual
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