Welcome!

API Journal Authors: Jonathan Fries, Elizabeth White, Sematext Blog, Carmen Gonzalez, Liz McMillan

News Feed Item

MassMutual Announces Record 2012 Financial Results

Sales in key businesses, assets under management, year-end surplus and capital reach historic highs

SPRINGFIELD, Mass., Feb. 27, 2013 /PRNewswire/ -- Massachusetts Mutual Life Insurance Company (MassMutual) today announced strong consolidated statutory financial results1 for 2012, including double digit growth and record sales in its key businesses, increased earnings that support an increased policyowner dividend payout, and unprecedented levels of statutory surplus and total adjusted capital.  These highlights reflect the company's historic ability to achieve strong results despite uncertain economic conditions, as well as successful execution of MassMutual's strategy to provide superior financial strength, high dividends and a high quality customer experience to its policyowners and clients.

For the year ended 2012, sales2 of whole life insurance – the company's core product – were $303 million, up 26 percent from the prior year and the seventh consecutive year of record sales.  Retirement plan and services sales and deposits totaled $11.1 billion, up significantly from $6.2 billion in 2011 and the fourth consecutive year of record sales and deposits.  Net gain from operations before policyowner dividends and taxes – the company's primary earnings measure as a mutual company – was $2.1 billion, up 22 percent from 2011, and net income soared to $872 million, nearly doubling from $459 million earned the prior year.  Assets under management3 rose 15 percent to $508 billion, the highest reported in the company's history.  The company's statutory surplus and total adjusted capital – both key indicators of the company's overall financial strength – grew to record levels of $12.7 billion (up 11 percent) and $14.4 billion (up 9 percent), respectively.

"Our principles and values as a mutual company have long stood the test of time and helped guide us to an outstanding year in 2012," said Roger Crandall, Chairman, President and CEO, MassMutual.  "Our consistent focus on the customer, the strength and stability provided through our products, and our dedicated employees and financial professionals who work to help our customers achieve financial peace of mind all contributed to what in many ways was a record year for our company."

"Despite the uncertainty in the U.S. and global economies, our strategy proved to be resilient in 2012 as we achieved strong results across all key measures, maintained our capital at record levels, explored and entered new markets, and approved the highest estimated dividend payout in our company's history," Mr. Crandall continued.  "While it is likely our environment will remain uncertain and our industry will remain competitive, we have an excellent foundation and results on which to build, and we'll continue to work relentlessly to help provide strength, security and stability even during the most unstable times."

Financial Results

Results for MassMutual and its consolidated life insurance subsidiaries for the year ended Dec. 31, 2012 compared to the year ended Dec. 31, 2011 (unless otherwise noted) include:

  • Sales results within the company's key product lines:
    • Whole life insurance sales increased 26 percent.
    • Total U.S. Insurance sales increased 30 percent.
    • Retirement plan and services sales and deposits increased 79 percent.
    • Investment Management sales increased 11 percent.
  • Surplus was $12.7 billion as of Dec. 31, 2012, up 11 percent from $11.4 billion
  • Total adjusted capital was $14.4 billion at the end of 2012, up 9 percent from $13.2 billion a year earlier.
  • Net gain from operations before policyowner dividends and taxes was $2.1 billion, up 22 percent from $1.7 billion.
  • Net income was $872 million, up 90 percent from $459 million.  
  • Revenue of $26.7 billion increased 36 percent from $19.7 billion.
  • An estimated dividend payout4 for 2013 of $1.39 billion to eligible participating policyowners, the company's highest payout ever.  This approved dividend reflects a dividend interest rate of 7 percent on eligible participating life insurance policies5.

MassMutual Financial Group's enterprise-wide results6 for 2012 include:

  • Assets under management were $508 billion as of Dec. 31, 2012, an increase of 15 percent from $443 billion at the end of 2011.
  • Worldwide insurance in force was $521.1 billion at the end of 2012, up 3 percent from $503.7 billion at the end of 2011.
  • Premium and other deposits was $35.5 billion for 2012, a 55 percent increase from $22.9 billion in 2011.                                                                             

"The strong operating fundamentals of MassMutual's core businesses – coupled with our enduring financial strength and excellent investment results – enabled us to produce remarkable results in 2012, including significant growth in earnings, sales, revenues, assets under management and cash flows," said Michael Rollings, Executive Vice President and Chief Financial Officer, MassMutual.  "In addition, our major subsidiaries – including OppenheimerFunds, Babson Capital Management and Baring Asset Management, as well as our international businesses – were key contributors to our overall results and helped offset some of the profit impact from the low interest rate environment, and our policyowners benefited from their strong performance."

Key Milestones and Achievements

The company also reported significant progress and recognition toward achieving its strategic objectives and cited several noteworthy achievements:

  • Successfully completed the acquisition of The Hartford's Retirement Plans business for $355 million, enabling MassMutual to build on the record growth in its retirement business, add complementary markets and distribution capabilities, and nearly double the number of retirement plan participants it serves to approximately three million.  MassMutual agreed to purchase the business in 2012 and ultimately acquired it on Jan. 1, 2013.
  • Sustained its leadership position in customer service.  In 2012, MassMutual's call centers and representatives captured top awards for client service and best practices for the fourth year in a row by ContactCenterWorld, a global association for contact center best practices and networking.
  • Won recognition for its commitment to diversity and inclusion. The company was named a Top 50 Company for Executive Women for the first time in 2012 by the National Association of Female Executives (NAFE), and the company was once again honored with this recognition in February 2013.  MassMutual was again honored by Working Mother magazine as one of its 10 Best Companies (Working Mother, October 2012), and by DiversityInc. for the second year in a row as one of 25 Noteworthy Companies (DiversityInc., Summer 2012). 
  • Established the Office of the CEO in early 2013, which will focus on key decisions for the company, prioritize critical initiatives and resources, and help enable effective alignment across MassMutual.  The Office of the CEO consists of Mr. Crandall, Mr. Rollings, Michael Fanning, Executive Vice President and head of the U.S. Insurance business, and Elaine Sarsynski, Executive Vice President and head of Retirement Services and Chairman and CEO of MassMutual International LLC.

 

Consolidated Statutory Results ($ in Millions)






2012

2011

% Change

Life Company Assets 

$167,510

$148,600

13%

Life Company Liabilities 

$154,823

$137,183

13%

Net Gain from Operations before   




        Policyowner Dividends and Taxes 

$2,077

$1,709

22%

Dividends to Participating Policyowners  

$1,379

$1,313

5%

Surplus  

$12,687

$11,417

11 %

 

Financial Strength Ratings7

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.

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.

3 Assets under management include assets and certain external investment funds managed by MassMutual subsidiaries, including OppenheimerFunds Inc., Babson Capital Management LLC, Baring Asset Management Limited, and Cornerstone Real Estate Advisers LLC.

4 Dividends are not guaranteed.

5 The dividend interest rate is not the rate of return on the policy.  Dividends consist of an investment component, a mortality component and an expense component.  Therefore, dividend interest rates should not be the sole basis for comparing insurers or policy performance.

6 Enterprise-wide results include the results for Massachusetts Mutual Life Insurance Company and its U.S.-domiciled life insurance subsidiaries, as well as the affiliated companies of MassMutual Financial Group.

7 Ratings are for 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.  Ratings are as of 2/26/13 and are subject to change.

Founded in 1851, MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyholders. 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 policyholders 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.

For more information, visit www.massmutual.com or find MassMutual on Facebook, Twitter, LinkedIn, YouTube and Google+. 

Contact:
Mark Cybulski
413-744-5427
[email protected]

 

SOURCE MassMutual

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2017 New York The 7th Internet of @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, New York. Chris Matthieu is the co-founder and CTO of Octoblu, a revolutionary real-time IoT platform recently acquired by Citrix. Octoblu connects things, systems, people and clouds to a global mesh network allowing users to automate and control design flo...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Unsecured IoT devices were used to launch crippling DDOS attacks in October 2016, targeting services such as Twitter, Spotify, and GitHub. Subsequent testimony to Congress about potential attacks on office buildings, schools, and hospitals raised the possibility for the IoT to harm and even kill people. What should be done? Does the government need to intervene? This panel at @ThingExpo New York brings together leading IoT and security experts to discuss this very serious topic.
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band-aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It does...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for ...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.