MassMutual Approves $1.7 Billion Estimated 2020 Policyowner Dividend Payout
SPRINGFIELD, Mass.--(BUSINESS WIRE)--Nov 4, 2019--
Massachusetts Mutual Life Insurance Company (MassMutual) announced today that its Board of Directors has approved a $1.7 billion estimated dividend payout in 2020 to eligible participating policyowners and members.
While dividends are not guaranteed, MassMutual has paid policyowner dividends every year since 1869. With the 2020 estimated payout, the company will have paid more than $15 billion of dividends over the past decade.
“Being a mutual company enables us to take a long-term approach to doing what’s best for our customers – from the investments we make, to the solutions we offer, to the experience we provide,” said Roger Crandall, MassMutual Chairman, President and CEO. “But more than anything else, our annual dividend payout has been one of the most enduring benefits of doing business with MassMutual. Four years after the Civil War ended, we began paying a dividend annually to our participating policyowners, and each payout has come with the strength and stability our policyowners can count on. We look forward to continuing to put these qualities to work to help millions more secure their future and protect the ones they love.”
The 2020 estimated dividend payout reflects a dividend interest rate 1 of 6.20 percent for eligible participating policies, illustrating MassMutual’s ability to maintain a leading competitive position in a prolonged and unprecedented low interest rate environment.
This is underscored by the company’s strong financial foundation, including record total adjusted capital of more than $25 billion 2, its ability to maintain among the highest ratings of any company in any industry 3, and its diverse mix of high performing businesses, including its non-participating insurance businesses, as well as its ownership interests in global asset management and other strategic investments.
“For more than 150 years, our policyowner dividend has been a tangible part of delivering on our company’s purpose,” added Crandall. “I am thankful for the leaders before me who helped establish that long-standing commitment, and especially proud of our financial professionals and employees who work each day to help our customers live their lives with greater confidence, dignity and security.”
MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyowners. MassMutual offers a wide range of financial products and services, including life insurance, disability income insurance, long term care insurance, annuities, retirement plans and other employee benefits. For more information, visit www.massmutual.com.
1 The dividend and dividend interest rate (DIR) are determined annually, subject to change and are not guaranteed. Dividends for eligible participating life insurance policies primarily consist of investment, mortality and expense components. The DIR is used to determine the investment component of the dividend. It is not the rate of return on the policy and should not be the sole basis for comparing insurers or policy performance.
2 Estimated as of Sept. 30, 2019.
3 Financial strength ratings for MassMutual and its subsidiaries, C.M. Life Insurance Company and MML Bay State Life Insurance Company are as follows: A.M. Best Company, A++ (Superior); Fitch Ratings, AA+ (Very Strong); Moody’s Investors Service, Aa3 (High Quality); and Standard & Poor’s, AA+ (Very Strong). Ratings are as of November 4, 2019, and are subject to change.
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CONTACT: Paula Tremblay
KEYWORD: MASSACHUSETTS UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE FINANCE
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PUB: 11/04/2019 03:00 PM/DISC: 11/04/2019 03:00 PM