Estimated payout marks milestone 150th consecutive year of dividend payouts; underscores exceptional policyowner value, strong financial position
SPRINGFIELD, Mass., Nov. 6, 2017 – 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.
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 include 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."
"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.
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.”