MassMutual Approves $1.6 Billion 2018 Policyowner Dividend Payout
Estimated payout marks milestone 150th consecutive year of dividend payouts; underscores exceptional policyowner value, strong financial position
SPRINGFIELD, Mass., Nov. 6, 2017 /PRNewswire/ -- Demonstrating the longstanding commitment to its policyowners and customers, Massachusetts Mutual Life Insurance Company (MassMutual) announced today that its Board of Directors has approved an estimated $1.6 billion dividend payout in 2018 to eligible participating policyowners and members. The landmark accomplishment marks 150 consecutive years that MassMutual will be paying a dividend.
"This is truly a significant achievement that illustrates MassMutual's strength and stability as a mutual company – a century and a half of sharing our success with our eligible participating policyowners and members through a consistent annual dividend payout," said Roger Crandall, MassMutual Chairman, President and CEO.
Crandall added, "Against the backdrop of a prolonged low interest rate environment, this accomplishment embodies MassMutual's competitive advantage – particularly the contribution of earnings from our diverse portfolio of businesses, which includes our institutional, workplace and international insurance businesses, as well as global asset management subsidiaries OppenheimerFunds, Inc. and Barings. Combined, these enable us to provide exceptional value to our policyowners and help them secure their future and protect the ones they love."
The 2018 estimated payout reflects a dividend interest rate1 of 6.40 percent for eligible participating policies. While dividends are not guaranteed, MassMutual has paid them to eligible participating policyowners every year since 1869. In fact, with the 2018 estimated payout, MassMutual will have paid more than $14 billion in dividends since 2009.
Over the past decade, MassMutual has also paid more than $35 billion in insurance and annuity benefits – including $5 billion in 2016, the most the company has ever paid in a year – delivering on its obligations to its policyowners and customers. Additionally, in 2016, MassMutual achieved its 11th straight year of record weighted whole life insurance sales2, while total adjusted capital has reached nearly $18 billion (as of September 30, 2017).
Moreover, MassMutual's financial strength ratings3 remain among the highest of any company in any industry, illustrating its strong operating fundamentals and a prudent, long-term investment philosophy.
"This estimated dividend payout once again demonstrates our ability to honor our commitments," said Mike Fanning, head of MassMutual U.S. "It is also yet another way we help our policyowners protect their families, support their communities and help one another. Still, there are millions of individuals and families who are financially underprepared4 and, through our expanded tools and channels, we have an opportunity to make our solutions more accessible to a broader range of people."
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.
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 6, 2017, and are subject to change.
4 LIMRA Facts of Life and Annuities 2017 Update
CRN201803-221257
CONTACT:
Michael McNamara
(413) 744 3917
[email protected]
SOURCE MassMutual
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