Welcome!

Search Authors: Carmen Gonzalez, Lori MacVittie, Liz McMillan, Shelly Palmer, Lacey Thoms

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
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at Internet of @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, will discuss how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money! Speaker Bio: Esmeralda Swartz, CMO of MetraTech, has spent 16 years as a marketing, product management, and busin...
Samsung VP Jacopo Lenzi, who headed the company's recent SmartThings acquisition under the auspices of Samsung's Open Innovaction Center (OIC), answered a few questions we had about the deal. This interview was in conjunction with our interview with SmartThings CEO Alex Hawkinson. IoT Journal: SmartThings was developed in an open, standards-agnostic platform, and will now be part of Samsung's Open Innovation Center. Can you elaborate on your commitment to keep the platform open? Jacopo Lenzi: Samsung recognizes that true, accelerated innovation cannot be driven from one source, but requires a...
SYS-CON Events announced today that Red Hat, the world's leading provider of open source solutions, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, a...
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Robin Raymond, Chief Architect at Hookflash Inc., will walk through the shifting landscape of traditional telephone a...
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
BSQUARE is a global leader of embedded software solutions. We enable smart connected systems at the device level and beyond that millions use every day and provide actionable data solutions for the growing Internet of Things (IoT) market. We empower our world-class customers with our products, services and solutions to achieve innovation and success. For more information, visit www.bsquare.com.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic • Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it’s a mix of architectural style...
SYS-CON Events announced today that SOA Software, an API management leader, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. SOA Software is a leading provider of API Management and SOA Governance products that equip business to deliver APIs and SOA together to drive their company to meet its business strategy quickly and effectively. SOA Software’s technology helps businesses to accelerate their digital channels with APIs, drive partner adoption, monetize their assets, and achieve a...
From a software development perspective IoT is about programming "things," about connecting them with each other or integrating them with existing applications. In his session at @ThingsExpo, Yakov Fain, co-founder of Farata Systems and SuranceBay, will show you how small IoT-enabled devices from multiple manufacturers can be integrated into the workflow of an enterprise application. This is a practical demo of building a framework and components in HTML/Java/Mobile technologies to serve as a platform that can integrate new devices as they become available on the market.
SYS-CON Events announced today that Utimaco will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Utimaco is a leading manufacturer of hardware based security solutions that provide the root of trust to keep cryptographic keys safe, secure critical digital infrastructures and protect high value data assets. Only Utimaco delivers a general-purpose hardware security module (HSM) as a customizable platform to easily integrate into existing software solutions, embed business logic and build s...
Connected devices are changing the way we go about our everyday life, from wearables to driverless cars, to smart grids and entire industries revolutionizing business opportunities through smart objects, capable of two-way communication. But what happens when objects are given an IP-address, and we rely on that connection, sometimes with our lives? How do we secure those vast data infrastructures and safe-keep the privacy of sensitive information? This session will outline how each and every connected device can uphold a core root of trust via a unique cryptographic signature – a “bir...
Internet of @ThingsExpo Silicon Valley announced on Thursday its first 12 all-star speakers and sessions for its upcoming event, which will take place November 4-6, 2014, at the Santa Clara Convention Center in California. @ThingsExpo, the first and largest IoT event in the world, debuted at the Javits Center in New York City in June 10-12, 2014 with over 6,000 delegates attending the conference. Among the first 12 announced world class speakers, IBM will present two highly popular IoT sessions, which will take place November 4-6, 2014 at the Santa Clara Convention Center in Santa Clara, Calif...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at Internet of @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, will discuss how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.

SUNNYVALE, Calif., Oct. 20, 2014 /PRNewswire/ -- Spansion Inc. (NYSE: CODE), a global leader in embedded systems, today added 96 new products to the Spansion® FM4 Family of flexible microcontrollers (MCUs). Based on the ARM® Cortex®-M4F core, the new MCUs boast a 200 MHz operating frequency and support a diverse set of on-chip peripherals for enhanced human machine interfaces (HMIs) and machine-to-machine (M2M) communications. The rich set of periphera...

SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue business and deliver exceptional experiences to their customers.
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
The Internet of Things (IoT) is making everything it touches smarter – smart devices, smart cars and smart cities. And lucky us, we’re just beginning to reap the benefits as we work toward a networked society. However, this technology-driven innovation is impacting more than just individuals. The IoT has an environmental impact as well, which brings us to the theme of this month’s #IoTuesday Twitter chat. The ability to remove inefficiencies through connected objects is driving change throughout every sector, including waste management. BigBelly Solar, located just outside of Boston, is trans...
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
Predicted by Gartner to add $1.9 trillion to the global economy by 2020, the Internet of Everything (IoE) is based on the idea that devices, systems and services will connect in simple, transparent ways, enabling seamless interactions among devices across brands and sectors. As this vision unfolds, it is clear that no single company can accomplish the level of interoperability required to support the horizontal aspects of the IoE. The AllSeen Alliance, announced in December 2013, was formed with the goal to advance IoE adoption and innovation in the connected home, healthcare, education, aut...