MassMutual Approves $1.6 Billion Dividend Payout

SPRINGFIELD — Massachusetts Mutual Life Insurance Company (MassMutual) announced that its board of directors has approved an estimated dividend payout of $1.6 billion for 2015, marking the third consecutive year the company has paid a record dividend to eligible participating policy owners and members.

The dividends to be paid in 2015 reflect a dividend interest rate of 7.10% — maintaining the same rate as 2014 — for eligible participating permanent life and annuity blocks of business. The approved estimated payout represents an increase of $92 million — or 6.2% — over 2014, and reflects updated investment, mortality, expense, and other experience, as well as the distribution of other business earnings from the company’s asset-management and non-participating businesses.

The 2015 MassMutual dividend payout marks the 17th consecutive year that it exceeds $1 billion. MassMutual has paid more than $21 billion in dividends over the last two decades, and although dividends are not guaranteed, the company has paid dividends to eligible participating policyowners consistently since the 1860s.

The estimated record payout comes at a time when MassMutual maintains one of the highest financial-strength ratings in its industry and is reporting strong levels of surplus of approximately $14 billion and total adjusted capital of $16 billion, both of which are key indicators of the company’s overall financial strength.

“Our enduring financial strength, excellent operating fundamentals, long-term investment strategy, and diverse mix of businesses have all contributed to our long history of paying competitive dividends to our participating policyowners,” said Roger Crandall, chairman, president, and CEO of MassMutual. “At a time when economic growth is slow and consumers need to take greater accountability for their financial future, our policy owners can take comfort knowing that they’ve chosen a company that can help them secure their future and protect the ones they love.”

Of the estimated $1.6 billion dividend payout, an estimated $1.55 billion has been approved for eligible participating policy owners who have purchased whole life insurance. In 2013, MassMutual realized its eighth consecutive year of growth in whole life insurance policy sales — $347 million — and demand continues to be strong through the first three quarters of 2014.

“Whole life insurance continues to be a sound choice for consumers, as it provides a sense of stability in any economic environment,” said Michael Fanning, executive vice president and head of MassMutual’s U.S. Insurance Group. “In addition to the guaranteed premiums, death benefits, and cash values, the potential to receive dividends is yet another of the many benefits of whole life insurance ownership.”