Massachusetts Mutual and Connecticut Mutual Life Insurers To Merge
SPRINGFIELD, Mass. (AP) _ Massachusetts Mutual Life Insurance Co. and Connecticut Mutual Life Insurance Co. plan a merger that will form the nation’s fifth largest mutual life insurer.
Terms of the deal were not disclosed Thursaday.
The two companies, which said in June that they were considering a merger, will create an insurer with over $90 billion in managed assets, including $47 billion from insurance policies.
The unified company, _ to be called MassMutual-The Blue Chip Co. _ will do business in group and individual life insurance, health and disability insurance, pension and investment management, and annuities.
Mutual companies are owned by policyholders and do not have stockholders.
The merger will result in 950 job cuts over three years, company officials said. The new company’s headquarters will be in Springfield, Mass., where MassMutual now employs about 4,000. But some operations will be run from Hartford, Conn., where Connecticut Mutual has about 1,600 workers.
The job cuts will be divided equally with 475 in each city, according to Eustis Walcott, a spokesman for MassMutual.
Insurance companies, like banks, are merging to gain marketshare and cut costs. Company executives said this merger will create a larger, more competitive company.
``The size, capital and resources generated by this merger will enable the new organization to achieve levels of growth that would be unobtainable if the two companies remained separate,″ said David E. Sams, president and chief executive of Connecticut Mutual.
Sams will take over as president and chief operating officer of the new company. Thomas B. Wheeler, president and chief executive of MassMutual, will serve as chairman and chief executive of the new company.
Massachusetts Mutual, founded in 1851, is now the nation’s seventh largest mutual insurance company. It manages $78 billion in assets. Connecticut Mutual, which was established in 1846, has $12.8 billion in assets.