MassMutual Approves Estimated 2021 Policyowner Dividend Payout of More Than $1.7 Billion
November 4, 2020 by Massachusetts Mutual Life Insurance Company
SPRINGFIELD, Mass.–(BUSINESS WIRE)–Massachusetts Mutual Life Insurance Company (MassMutual) announced today that its Board of Directors has approved an estimated 2021 dividend payout of more than $1.7 billion.
While dividends are not guaranteed, MassMutual has paid them to eligible participating policyowners every year since 1869. With the 2021 estimated payout, the company will have paid nearly $22 billion of dividends over the past 15 years. Additionally, the 2021 dividend marks nearly a quarter of a century that the company has consecutively announced an estimated dividend payout exceeding $1 billion.
“Given the social and economic uncertainty in our world today, people are looking for a semblance of security and stability – the kind that MassMutual has provided since we issued our first policy in 1851,” said MassMutual Chairman, President and CEO Roger Crandall. “Our long, consistent history of dividend payments is proof of this commitment, and our highly competitive dividend for 2021 is a testament to our enduring financial strength, consistent focus on our policyowners and customers, and ability as a mutual company to take a long-term view.”
The 2021 estimated payout reflects a 6.00% dividend interest rate1, demonstrating MassMutual’s long-term commitment to providing a competitive dividend in a historically low interest rate environment while maintaining its financial strength and reaching record levels of total adjusted capital of approximately $29 billion.2 A differentiator for MassMutual continues to be earnings from non-participating insurance businesses, including strong contributions from its annuity and institutional solutions businesses, as well as the company’s ownership interests in global asset management and other strategic investments.
“Together with our dedicated and passionate financial professionals, deep product portfolio with protection and accumulation solutions for each stage of life, and personalized digital experience that we are constantly enhancing, we are well-positioned to help people navigate these challenging times, and help millions more secure their future and protect the ones they love,” added Crandall.
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.
1The 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.
2Estimated results as of Sept. 30, 2020, 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.
Paula Tremblay, Media Relations