MassMutual Announces Record 2014 Financial Results
SPRINGFIELD — Massachusetts Mutual Life Insurance Co. announced strong consolidated statutory financial results for 2014, including a substantial increase in earnings and net income, record sales in key businesses, and highest-ever levels of assets under management, statutory surplus, and total adjusted capital.
The company reported that, for the year ended Dec. 31, 2014, sales of whole-life insurance were $418 million, up 20% from the prior 12 months — representing the ninth consecutive year of record highs — while retirement-plan sales rose 23% to $9.1 billion, also a record. The net gain from operations before policyowner dividends and taxes — the company’s primary earnings measure as a mutual company — was up 27% to $2.2 billion.
Further, MassMutual’s highest-ever levels of statutory surplus and total adjusted capital — both key indicators of the company’s overall financial stability — were $14.2 billion and $16.4 billion, respectively, and continued to provide the company with substantial financial resources that help deliver long-term financial confidence and security to policyowners and customers.
“I am pleased to report that 2014 was another tremendous year for MassMutual,” said Roger Crandall, MassMutual’s chairman, president, and CEO. “By delivering record results, outpacing growth in our industry, and increasing our financial strength, we performed favorably against the backdrop of a U.S. economy that continued a slow but steady rebound in 2014. Our results further illustrate our powerful momentum and have positioned the company for another great year in 2015.”
He added, “through our people, products, and solutions, we continued to take steps to build a better company for our policyowners and customers, and deliver on our purpose to help people secure their future and protect the ones they love.”
While dividends are not guaranteed, MassMutual’s board of directors approved an estimated 2015 dividend payout of $1.6 billion, which reflects a dividend interest rate of 7.10% on eligible participating life-insurance policies, highest among its mutual competitors.
Also driving MassMutual’s 2014 success was its growing network of financial professionals, who help people gain confidence by bringing clarity and solutions to some of the biggest financial challenges they face. MassMutual expanded that network by 6% over 2013 to more than 5,500 financial professionals at the end of 2014, an all-time high.