Welcome!

API Journal Authors: Elizabeth White, Pat Romanski, Liz McMillan, Greg O'Connor, SearchStorage.com News

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
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
Most people haven’t heard the word, “gamification,” even though they probably, and perhaps unwittingly, participate in it every day. Gamification is “the process of adding games or game-like elements to something (as a task) so as to encourage participation.” Further, gamification is about bringing game mechanics – rules, constructs, processes, and methods – into the real world in an effort to engage people. In his session at @ThingsExpo, Robert Endo, owner and engagement manager of Intrepid D...
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Learn how IoT, cloud, social networks and last but not least, humans, can be integrated into a seamless integration of cooperative organisms both cybernetic and biological. This has been enabled by recent advances in IoT device capabilities, messaging frameworks, presence and collaboration services, where devices can share information and make independent and human assisted decisions based upon social status from other entities. In his session at @ThingsExpo, Michael Heydt, founder of Seamless...
The IoT's basic concept of collecting data from as many sources possible to drive better decision making, create process innovation and realize additional revenue has been in use at large enterprises with deep pockets for decades. So what has changed? In his session at @ThingsExpo, Prasanna Sivaramakrishnan, Solutions Architect at Red Hat, discussed the impact commodity hardware, ubiquitous connectivity, and innovations in open source software are having on the connected universe of people, thi...
WebRTC: together these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at WebRTC Summit, Cary Bran, VP of Innovation and New Ventures at Plantronics and PLT Labs, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it may enable, complement or entirely transform.
For manufacturers, the Internet of Things (IoT) represents a jumping-off point for innovation, jobs, and revenue creation. But to adequately seize the opportunity, manufacturers must design devices that are interconnected, can continually sense their environment and process huge amounts of data. As a first step, manufacturers must embrace a new product development ecosystem in order to support these products.
There are so many tools and techniques for data analytics that even for a data scientist the choices, possible systems, and even the types of data can be daunting. In his session at @ThingsExpo, Chris Harrold, Global CTO for Big Data Solutions for EMC Corporation, showed how to perform a simple, but meaningful analysis of social sentiment data using freely available tools that take only minutes to download and install. Participants received the download information, scripts, and complete end-t...
Manufacturing connected IoT versions of traditional products requires more than multiple deep technology skills. It also requires a shift in mindset, to realize that connected, sensor-enabled “things” act more like services than what we usually think of as products. In his session at @ThingsExpo, David Friedman, CEO and co-founder of Ayla Networks, discussed how when sensors start generating detailed real-world data about products and how they’re being used, smart manufacturers can use the dat...
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT’s direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...