2017 Annual & Corporate Responsibility Report
2017 Annual & Corporate Responsibility Report
2017 was an outstanding year for MassMutual. Record sales in life insurance and Institutional sales, a highly diversified investment strategy coupled with strong market performance, and a productive distribution network helped MassMutual protect and grow the assets of the company.
Historically high sales in core businesses outperformed the industry, a reflection of the company’s attractive portfolio of products and services. Highlights included:
Earnings results were also impressive. Net gain from operations before policyowner dividends and taxes – the company’s primary earnings measure as a mutual company – was $1.8 billion, up 18 percent from 2016, driven by double-digit increases in all insurance business lines – life, annuities, disability and long-term care insurance.
Statutory surplus and total adjusted capital – the two key measures of a company’s overall financial strength – both reached record high levels. Surplus grew to $15.7 billion while total adjusted capital increased slightly to $17.4 billion – in spite of the negative impact from tax reform – positioning MassMutual with the financial resources and flexibility needed to manage for optimal long-term results.
MassMutual approved an estimated payout of $1.6 billion in policyowner dividends2 for 2018, upholding our commitment to operate for the benefit of eligible participating policyowners. In addition, $5.1 billion in insurance and annuity benefits were paid in 2017, as we delivered on our purpose to help people secure their future and protect the ones they love.
MassMutual insurance sales included record-breaking contributions from whole life as well as continued growth in all other products. Our product offering reflects a focus on prudent risk management and creating long-term value for our policyowners.
U.S. Insurance sales include life insurance, disability income insurance, long-term care insurance, and annuities.
MassMutual achieved a record high in whole life sales for the twelfth consecutive year. The whole life product suite is designed with flexibility to meet market needs and create long-term value for our participating policyowners.
These consolidated results of Massachusetts Mutual Life Insurance Company also include its U.S.-domiciled, wholly owned subsidiaries: MML Bay State Life Insurance Company and C.M. Life Insurance Company. Prior year results have been restated to include additional products.
Workplace and Institutional businesses continue to generate significant sales growth, with strong results across a broad product line and over $20 billion of combined sales in 2017. Executive Benefits product sales topped $1 billion for the fifth consecutive year.
Workplace sales include defined contribution plans in addition to disability and life insurance products sold at the workplace. Institutional sales include defined benefit plans, bank-owned life insurance, investment-only and pension buyout solutions, and funding agreements.
Retirement Plan sales remain strong, averaging $10 billion in sales annually in recent years. MassMutual currently serves roughly 2.6 million participants in over 30,000 plans.
MassMutual’s strong risk management process provides a disciplined and forward-looking enterprise-wide approach, ensuring risk views are included in key strategic and operational decisions. We take a broad and multifaceted approach to identifying risk by analyzing trends in the business environment, evaluating key risk metrics, and assessing the capabilities and risks of key competitors. This allows us to identify possible risk events, prioritize them, and proactively prepare and manage for their possible occurrence – all to help protect the financial interests of our policyowners.
1 Weighted sales are based on annualized new premium with single premium payments weighted at 10 percent.
2 Dividends are determined annually, subject to change and not guaranteed.
