MassMutual Continues Strong Momentum, Announces 2013 Financial Results

SPRINGFIELD, Mass., Feb. 26, 2014 /PRNewswire/ -- Massachusetts Mutual Life Insurance Company (MassMutual) today announced strong consolidated statutory financial results¹ for 2013, including continued record sales in key businesses and sustained levels of statutory surplus and total adjusted capital.  These results, coupled with key milestones and achievements by the company in 2013, reflected MassMutual's continuing momentum and position the company for continued success in 2014 and beyond.

For the year ended 2013, sales² of whole life insurance were $347 million, up 14 percent from the prior year and represented the eighth consecutive year of record whole life sales.  Retirement Services sales totaled more than $11 billion, including a record $7.4 billion in retirement plan sales, up 60 percent and driven largely by the company's acquisition of The Hartford's Retirement Plans business.  Assets under management³ rose 26 percent to $639 billion, the highest level 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 – were $12.5 billion and $14.5 billion respectively, and continued to position the company with substantial financial resources, a significant achievement in a year when the company made its largest acquisition ever.

"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 Roger Crandall, Chairman, President and CEO, MassMutual.  "As a mutual company, it is the successful execution of our strategy rooted in that purpose which helped drive another fantastic year in 2013.  We had record-breaking sales, announced a historic dividend payout, maintained our excellent financial strength, and most importantly, delivered on our commitments to those who rely on our products and services for their financial security."    

"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," Mr. Crandall continued.  "In addition, we have positioned the company for future success as we continue to focus on delivering superior financial strength, high dividends and a high-quality customer experience."

Financial Results
Results for MassMutual and its consolidated life insurance subsidiaries for the year ended Dec. 31, 2013 compared to the year ended Dec. 31, 2012 (unless otherwise noted) include:

• 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 billion as of Dec. 31, 2013, compared to $12.7 billion the prior year.
• Total adjusted capital was $14.5 billion as of Dec. 31, 2013, compared to $14.4 billion the prior year.
• Revenue was $27.6 billion compared to $26.7 billion the prior year.
• Net gain from operations before policyowner dividends and taxes – the company's primary earnings measure as a mutual company – was $1.8 billion compared to $2.1 billion the 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 million higher. 
• An estimated dividend payout⁴ for 2014 of $1.49 billion to eligible participating policyowners, which reflects a dividend interest rate of 7.10 percent on eligible participating life insurance policies⁵.

MassMutual Financial Group's enterprise-wide results⁶ for 2013 include:

• Assets under management were $639 billion as of Dec. 31, 2013, an increase of 26 percent from $508 billion at the end of 2012.
• Worldwide insurance in force was $547 billion at the end of 2013, up 5 percent from $521 billion at the end of 2012.
• Premium and other deposits were $38.8 billion for 2013, a 9 percent increase from $35.5 billion in 2012.         

"MassMutual's solid operating fundamentals and favorable investment results enabled us to continue our trajectory of year-over-year growth in 2013, which showed in our increases in sales, revenues, and assets under management," said Michael Rollings, Executive Vice President and Chief Financial Officer, MassMutual.  "Our unique mix of asset management and international businesses also continued to serve as a strategic differentiator that generated additional earnings which ultimately benefit our policyowners.  Overall, the excellent performance of our broad portfolio of businesses –which include a highly diversified and productive distribution network – reflects continued success for MassMutual and validates our long-term strategy and focus on our policyowners and customers."

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's Retirement Plans business, which was purchased on Jan. 1, 2013.  Through the acquisition, MassMutual assumed 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.
• Two MassMutual subsidiaries made progress on integrating recent acquisitions.  OppenheimerFunds Inc. acquired SteelPath 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's diversification 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. MassMutual was 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's call 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. MassMutual was 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, MassMutual also learned it received a 100 percent rating on the Human Rights Campaign Foundation's Corporate 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 States and enabling the company to continue providing exemplary service to all policyowners and customers regardless of where they live.

Consolidated Statutory Results ($ in Millions)

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 determined annually, subject to change and 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 2/25/14 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 policyowners. 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 policyowners 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

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