|PR Newswire Association LLC|
For the year ended 2013, sales2 of whole life insurance were
"Throughout MassMutual's 162-year history, one thing has remained constant, and that is our purpose: to help people secure their future and protect the ones they love," said
"At a time when economic growth is slow and consumers need to take more responsibility for their financial future, our results and achievements highlight the benefits of doing business with a financially strong company focused on delivering long-term value to its policyowners and customers,"
- Sales results within the company's key product lines:
- Whole life insurance sales increased 14 percent.
- Retirement plan sales increased 60 percent.
- Annuity sales increased 57 percent.
- Disability income insurance sales increased 10 percent.
- Investment management sales increased 44 percent.
- Surplus totaled
$12.5 billionas of Dec. 31, 2013, compared to $12.7 billionthe prior year.
- Total adjusted capital was
$14.5 billionas of Dec. 31, 2013, compared to $14.4 billionthe prior year.
- Revenue was
$27.6 billioncompared to $26.7 billionthe prior year.
- Net gain from operations before policyowner dividends and taxes – the company's primary earnings measure as a mutual company – was
$1.8 billioncompared to $2.1 billionthe year before. The earnings reduction year over year and the statutory net loss reflect the impact of the acquisition of The Hartford Retirement Plans business. Excluding the purchase price impact of the acquisition, earnings would have been more than $350 millionhigher.
- An estimated dividend payout4 for 2014 of
$1.49 billionto eligible participating policyowners, which reflects a dividend interest rate of 7.10 percent on eligible participating life insurance policies5.
- Assets under management were
$639 billionas of Dec. 31, 2013, an increase of 26 percent from $508 billionat the end of 2012.
- Worldwide insurance in force was
$547 billionat the end of 2013, up 5 percent from $521 billionat the end of 2012.
- Premium and other deposits were
$38.8 billionfor 2013, a 9 percent increase from $35.5 billionin 2012.
Key Milestones and Achievements
The company also reported significant progress and recognition toward achieving its strategic objectives and cited several noteworthy achievements:
- Successfully integrated The
Hartford'sRetirement Plans business, which was purchased on Jan. 1, 2013. Through the acquisition, MassMutualassumed more than 1.2 million retirement plan participants, grew sales significantly in the small plan market, and seamlessly combined operations to position the business for future success.
MassMutualSteelPath Capital Management and SteelPath Fund Advisors, which is focused on energy infrastructure Master Limited Partnerships, and Baring Asset Management acquired SEI Asset Korea Co., Ltd., enabling the firm to expand its asset management services into Korea. All of the acquisitions both within our retirement and asset management businesses illustrate MassMutual'sdiversification and ongoing ability to implement its growth strategy.
- Grew the company's network of financial professionals by 5.3 percent over 2012, bringing the company's total field force to more than 5,200 financial professionals at the end of 2013.
- Named as one of the top 100 companies on the FORTUNE 500®, moving up 27 spots to No. 94.
MassMutualwas also named the third most admired company on FORTUNE's Most Admired list in its industry category (life and health insurance), and was also the highest-ranked mutual company.
- Sustained its leadership position in customer service. In 2013,
MassMutual'scall centers and representatives captured top awards for client service and best practices for the fifth year in a row by ContactCenterWorld, a global association for contact center best practices and networking.
- Continued to earn recognition for its commitment to diversity and inclusion.
MassMutualwas again honored by Working Mother magazine as one of its 100 Best Companies (Working Mother, October 2013), by DiversityInc. for the third year in a row as one of 25 Noteworthy Companies (DiversityInc., Summer 2013), and was named a Top 50 Company for Executive Women by the National Association of Female Executives(NAFE). In late 2013, MassMutualalso learned it received a 100 percent rating on the Human Rights Campaign Foundation'sCorporate Equality Index, earning a place on its 2014 Best Places to Work List.
- Established a new operations center in
Phoenix, Ariz., creating a corporate presence in the Western United Statesand enabling the company to continue providing exemplary service to all policyowners and customers regardless of where they live.
Consolidated Statutory Results($ in Millions)
Life Company Assets
Life Company Liabilities
Net Gain from Operations
Before Dividends and Taxes
Dividends to Participating Policyowners
Financial Strength Ratings7
Fitch Ratings, AA+ (Very Strong)
Moody's Investors Service, Aa2 (Excellent)
Standard & Poor's, AA+ (Very Strong)
For more information about
1 These are consolidated statutory results of
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
4 Dividends are determined annually, subject to change and not guaranteed.
5The 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
7 Ratings are for
Contact: Mark Cybulski