March 2nd, 2020
SPRINGFIELD, Mass., March 2, 2020 – MassMutual today reported excellent financial results1 for 2019 in a number of key areas – including significant sales, earnings and capital growth – as it also took steps to solidify its leading competitive position and provide financial security to more Americans.
For the year ended December 31, 2019, MassMutual reported total sales through its U.S. insurance and retirement operations of $28.6 billion, a 15 percent increase over the prior year, led by steady demand for its life insurance and annuity products, as well as strong, opportunistic sales in its institutional solutions business.
These results, together with exceptional net investment income and equity market performance, as well as other factors, drove net gain from operations before policyowner dividends and taxes to $2.2 billion, up 21 percent from prior year. After factoring in policyowner dividends and other items, MassMutual reported net income of $524 million, also up significantly from the prior year.
MassMutual also maintained its excellent financial strength and flexibility. Statutory surplus grew 21 percent to $19 billion over prior year and total adjusted capital rose 23 percent to more than $24 billion, while the company continued to hold ratings among the highest of any company in any industry2. This enduring strength enabled MassMutual to approve an estimated $1.7 billion dividend payout to eligible participating policyowners in 2020, the 152nd consecutive year it has paid a dividend3.
Above all, MassMutual provided financial security and confidence to a growing number of people. The company increased the insurance protection it provides to nearly $775 billion, while delivering more than $5.7 billion in insurance and annuity benefits to its policyowners and customers.
“As the U.S. economic expansion persisted despite global uncertainty, MassMutual posted exceptional results in 2019, as we grew our profitability, enhanced our financial strength, and took bold steps to ensure our long-term competitiveness,” said Roger Crandall, Chairman, President and CEO, MassMutual. “Most importantly, we fulfilled our obligations to those who rely on us today, while continuing to find new ways to simplify and demystify financial security to help even more Americans secure their future and protect the ones they love.”
Along with strong 2019 results, MassMutual took steps to solidify its long-term financial position by continuing to evolve the strategy for its key differentiators, including its asset management businesses. Most notably, the company completed the previously announced transaction to combine its asset management affiliate OppenheimerFunds with Invesco, making MassMutual the largest shareholder in one of the world’s biggest asset management companies. This transaction helped the company significantly increase its total adjusted capital while providing it with a reliable stream of earnings and expanded investment offerings in the future.
In addition, MassMutual grew its suite of digital capabilities to make its financial solutions more accessible and improve the overall experience for its policyowners and customers. This included:
• Harnessing data to drive better outcomes. The company expanded its use of algorithms to provide insurance protection more quickly and efficiently, while also using them to introduce MyLifeScoreSM, a risk-scoring system to help people better understand the link between personal health and insurance costs.
• Introducing online enhancements that meet customers on their terms. This included the introduction of MapMyFinancesSM, a digital tool that helps customers at the workplace prioritize protection and savings based on their personal situation. Haven Life, MassMutual’s in-house start up, also continued to roll out innovative new offerings, including expanded health and wellness services, as well as AgeUpSM, an online solution that helps protect families from the financial risk of loved ones living into their 90s and beyond.
• Using technology to strengthen personal connections. To digitize and enhance the experience customers have with its network of financial professionals, the company signed an agreement with Advisor 360 LLC, a wealthtech spin-out from Commonwealth Financial Network, to bring its suite of award-winning software tools into MassMutual. Once implemented, it will integrate all financial and account information into one place, allowing MassMutual’s financial professionals to better serve clients in providing holistic financial solutions.
“Our financial results in 2019 reflect MassMutual’s excellent operating fundamentals as well as the ongoing successful execution of our strategy,” said Betsy Ward, Chief Financial Officer, MassMutual. “As the world and our industry continue to change rapidly, we will evolve with them, driven by our commitment to help people build a more confident future. Along the way, we’ll be guided by our strong and flexible financial position, long-term investment approach, growing suite of digital capabilities, and passionate and dedicated team of employees and financial professionals.”
MassMutual also continues to earn accolades for its ethical leadership and commitment to diversity and inclusion. The company reached No. 84 on the FORTUNE® 5004 in 2019 and was named a FORTUNE Most Admired company for 20205. Once again, the company earned a perfect score of 100 on the Human Rights Campaign Corporate Equality Index, and was also named a Disability Equality Index® (DEI) Best Place to Work for Disability Inclusion. Most recently, MassMutual was named to Forbes’ 2020 list of America’s Best Employers for Diversity and, for the seventh consecutive year, 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/corporate-governance.
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 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, Aa3 (High Quality); and S&P Global Ratings, AA+ (Very Strong). Ratings are current as of March 2, 2020 and are subject to change.
3 Dividends are determined annually, subject to change and not guaranteed.
4 FORTUNE and FORTUNE 500 are registered trademarks of Time Inc. and are used under license. From FORTUNE Magazine, May 16, 2019. ©2019 Time Inc. Used under license. FORTUNE and Time Inc. are not affiliated with, and do not endorse products or services of MassMutual.
5 From FORTUNE Magazine, January 21, 2020. © 2020 Fortune Media IP Limited. All rights reserved. Used under license. FORTUNE and The World’s Most Admired Companies are registered trademarks of Fortune Media IP Limited and are used under license. FORTUNE and Fortune Media IP Limited are not affiliated with, and do not ensdorse products or services of 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.