Record Sales in Core Markets and Year-end Surplus, Capital
SPRINGFIELD, Mass., February 26, 2016 – Massachusetts Mutual Life Insurance Company (MassMutual) today announced strong consolidated statutory financial results1 for 2015, fueled in large part by continued momentum in its core markets and record highs in both statutory surplus and total adjusted capital – further underscoring the company’s financial strength and ability to help millions of policyowners and customers achieve financial security.
For the year ended December 31, 2015, MassMutual reported that sales2 of whole life insurance were $483 million, up 15 percent from 2014, which represents the 10th consecutive year of record results. For the third year in a row, retirement plan sales were also the highest in company history, rising 9 percent to $9.9 billion. Due largely to the growth in those principal segments, as well as significant contributions from MassMutual’s mix of other businesses, revenue in 2015 increased to $29.5 billion, up from $26.4 billion the prior year, while premium and other deposits grew to $45.3 billion, compared to $39.7 billion in 2014.
Statutory surplus and total adjusted capital reached record levels of $15.0 billion and $17.3 billion, respectively, and continued to provide the company with substantial financial resources that help deliver long-term financial confidence to its policyowners and customers.
“I’m extremely proud to report that MassMutual achieved such strong results – reflecting our unwavering commitment to managing the company for our policyowners’ and customers’ benefit,” said Roger Crandall, Chairman, President and CEO, MassMutual. “Moreover, our competitive products and solutions, diverse business mix, long-term investment approach and outstanding operating fundamentals all illustrate the soundness of our strategy, which helps us to continue building an even better company over the long term.”
Assets under management3 (AUM) was relatively unchanged at $642 billion, a testament to the solid performance of MassMutual’s insurance and retirement businesses, as well as its global asset management and insurance subsidiaries, including Babson Capital Management LLC, Baring Asset Management Limited, OppenheimerFunds, Inc., and MassMutual International LLC. MassMutual reached its second highest AUM total ever in 2015, despite the Standard & Poor’s 500 Index and the Dow Jones Industrial Average both ending lower for the year. Additionally, net gain from operations before policyowner dividends and taxes – the company’s primary earnings measure as a mutual company – was $2.1 billion.
Further, in November, MassMutual’s Board of Directors approved an estimated 2016 dividend payout of $1.7 billion4 to eligible participating policyowners, a $100 million increase over 2015 and the fourth consecutive year it reached a new record. This also reflects a dividend interest rate of 7.1 percent5, which is the highest among MassMutual’s mutual competitors. While not guaranteed, the 2016 dividend marks nearly two decades that the company has announced an estimated payout exceeding $1 billion.
“The fact we achieved such strong results in a number of key areas despite a challenging business climate – including global instability, market declines and a historically low interest rate environment – again demonstrates MassMutual’s stability and the value we provide to our policyowners and customers,” said Michael Rollings, Executive Vice President and Chief Financial Officer. “We believe our mutual structure enables us to take a long term view of our business, better weather financial storms and maintain among the highest financial strength ratings6 of any company in any industry. Most importantly, we can remain focused on serving the best interests of our policyowners and customers.”
MassMutual’s 2015 success can be attributed in part to its growing network of financial professionals – all of whom are dedicated to providing customers with the financial guidance they need. MassMutual expanded that network to 5,800 at the end of the year, another all-time high for the company.
MassMutual also focused on reaching people in new and different ways by launching innovative solutions and programs to enhance the customer experience. These included expanding options to buy life insurance, helping demystify the world of personal finance for Millennials and other underserved markets and using data analytics to help customers. Together, these initiatives support the company’s purpose of helping even more people secure their future and protect the ones they love.
Highlighting its steadfast commitment to its policyowners, customers and employees, in 2015, MassMutual – ranked number 94 on the FORTUNE® 5007 – was consistently acknowledged for its client service, ethical leadership and support of diversity and inclusion. Notably, MassMutual was named for the first time on DiversityInc’s 2015 Top 50 companies for diversity, achieved a perfect score of 100 on the Human Rights Campaign Corporate Equality Index and was recognized as a World’s Most Ethical Company by the Ethisphere Institute. Additional MassMutual awards and recognition can be found at www.massmutual.com
Consolidated Statutory Results ($ in Millions)
2015 2014 % Change
Life Company Assets $222,197 $209,096 6%
Life Company Liabilities $207,214 $194,865 6%
Net Gain from Operations
Before Dividends and Taxes $ 2,115 $ 2,243 (6)%
Dividends to Participating Policyowners $ 1,728 $ 1,553 11%
Surplus $ 14,983 $ 14,231 5%
Net Income $ 546 $ 799 (32)%
Financial Strength Ratings6
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.
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.