Increased Earnings, Record Capital and Sales Growth Drive MassMutual’s Strong 2017 Financial Results

SPRINGFIELD, Mass., February 27, 2018 – Bolstered by substantial gains in earnings, record levels of capital and assets under management (AuM) and continuing its decade of industry-leading sales growth, Massachusetts Mutual Life Insurance Company (MassMutual) today announced strong financial results for the year ended December 31, 2017.

MassMutual’s net gain from operations before policyowner dividends and taxes – its primary earnings measure as a mutual company – rose 18 percent, to $1.85 billion in 2017. This increase, along with a doubling of the company’s net income to $137 million, can be primarily attributed to a significant rise in net investment income and favorable underwriting experience. The company also enhanced its financial strength with record levels of statutory surplus and total adjusted capital, $15.7 billion and $17.4 billion, respectively1.

Additionally, MassMutual continued its industry-leading life insurance sales momentum, showing increased demand for its solutions to meet the needs of a growing number of underinsured Americans. Sales of whole life insurance2 reached $678 million, an increase of more than $20 million, marking the 12th consecutive year of record sales, continuing a growth rate that has outpaced the industry over the past decade, and solidifying MassMutual’s position as the number-one writer of whole life insurance in the U.S.3 Further, total sales2 of life insurance were $752 million, up from more than $710 million last year, bringing the overall amount of life insurance protection the company provides to nearly $670 billion.

MassMutual also had strong contributions from its workplace and institutional businesses, which combined to post more than $20 billion in sales, up 13 percent, reflecting significant growth in its workplace whole life, defined contribution investment only and defined benefit products.

“Fueled by a surging market performance and an improving global economy, MassMutual maintained its unwavering focus on serving its policyowners and customers, which drove our exceptional financial results in 2017,” said Roger Crandall, MassMutual Chairman, President and CEO. “Our diverse mix of high-performing businesses, outstanding financial strength, expanded advisor force and ongoing investments in enhancing our digital experience, all enabled us to reach more Americans in greater numbers last year, helping them secure their future and protect the ones they love.”

The strong performance of the company’s domestic and international insurance, workplace and institutional businesses, as well as its global asset management firms – OppenheimerFunds, Inc. and Barings – amid favorable market conditions drove AuM to a record $771 billion4, up from $675 billion in 2016, while premium and other deposits rose 33 percent, to $58.9 billion.

MassMutual’s ability to provide value to its policyowners and customers and deliver on its commitments was further exemplified by more than $5 billion in benefits delivered in 2017, and its announcement of an estimated 2018 dividend payout of $1.6 billion to eligible participating policyowners – the 150th consecutive year the company will be paying a dividend5.

“Our 2017 results reflect the strong operating fundamentals across MassMutual’s businesses, as well as our ability to successfully execute our strategy,” said Elizabeth Ward, Chief Financial Officer and Chief Actuary of MassMutual. “Our long-term prudent investment approach enables MassMutual to not only endure domestic and global market fluctuations, but also positions us to consistently pay a competitive dividend and sustain among the highest financial ratings of any company in any industry6.”

Capping MassMutual’s successful financial results in 2017, the company earned several accolades highlighting its commitment to diversity and inclusion, ethical leadership and excellent customer service. MassMutual reached No. 77 on the FORTUNE® 5007 in 2017 and was named a FORTUNE Most Admired8 company for 2018 – No. 1 in innovation and the top mutual life insurance company on the list. The company earned a perfect score of 100 on the Human Rights Campaign Corporate Equality Index for the ninth time, and was honored for the 10th straight year with top awards from ContactCenterWorld. Most recently, for the fifth consecutive year, MassMutual was recognized as a World's Most Ethical Company by the Ethisphere Institute.

For more information about MassMutual’s consolidated statutory financial results, visit: https://www.massmutual.com/about-us/our-financial-strength-and-documents/

About MassMutual

MassMutual is a leading mutual life insurance company 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 These are consolidated statutory results of Massachusetts Mutual Life Insurance Company and its U.S.-domiciled life insurance subsidiaries: C.M. Life Insurance Company and MML Bay State Life Insurance Company.

2 Sales are classified as weighted sales, which are based on weighted annualized new premium, with single premium payments weighted at 10 percent.

3According to preliminary results for LIMRA’s Fourth Quarter 2017 U.S. Retail Individual Life Insurance Sales Report.

4 Assets under management include assets and certain external investment funds managed by MassMutual subsidiaries, including OppenheimerFunds Inc., and Barings.

5Dividends are determined annually, subject to change and not guaranteed.

6 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+ (Very Strong); Moody's Investors Service, Aa2 (Excellent), and Standard & Poor's, AA+ (Very Strong). Ratings are as of February 27, 2018, and are subject to change.

7 Fortune® Magazine, June 15, 2017.

8 Fortune® Magazine, January 22, 2018.