Performance

Performance Review

2019 was another successful year for MassMutual, marked by double-digit sales and earnings growth, as well as record levels of capital. This was achieved against a mixed backdrop, with favorable equity markets counterbalanced by global uncertainty and a continued low interest rate environment.

Total revenue was more than $30 billion, reflecting industry-leading sales in core businesses and a diversified portfolio of products and services.
Highlights include:

Weighted¹ Whole Life Insurance sales of $607 million.
Record annuity sales, topping $5 billion for the second consecutive year.
Strong sales from our Institutional businesses exceeding $14 billion, an increase of 37 percent over prior year.
$25 billion in sales through MML Investors Services, MassMutual’s broker-dealer and registered investment adviser offering investment and wealth management solutions.

Bottom-line results were strong. Statutory net gain from operations before policyowners dividends and taxes, our primary earnings measure as a mutual company, was $2.2 billion, a notable increase over prior year reflecting business growth and operational efficiencies.

Our performance was underscored by our enduring financial strength. Statutory surplus grew to a record $19 billion and total adjusted capital was more than $24 billion. Our ratings remain amongst the highest of any company in any industry. This enabled us to approve a $1.7 billion dividend² payout for 2020 to our eligible participating policyowners, the 152nd consecutive year we have paid a dividend.

Weighted sales are based on annualized new premium, with single premium payments weighted at 10 percent.
Dividends are determined annually, subject to change, and not guaranteed.

U.S. Insurance Sales (In Millions)

MassMutual insurance sales included record contributions from annuities, as well as continued growth in our life and disability income products. Our product offering reflects a focus on creating solutions and long-term value for our policyowners while prudently managing risk.

U.S. Insurance sales include individual life insurance, disability income insurance, long term care insurance, and annuities.

U.S. Whole Life Sales (In Millions)

MassMutual is an industry leader in whole life sales, with sales exceeding $1 billion for the fourth consecutive year.

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.

Annuity Sales (In Millions)

Annuity sales continue to grow, reflecting MassMutual’s competitive offering in the fixed annuity market.

Annuity sales include individual fixed, income, and variable annuities.

Workplace & Institutional Sales (In Billions)

Workplace and Institutional businesses generated record sales, up 18 percent from 2018, with solid results across a broad product line. MassMutual maintains a meaningful presence in the pension risk transfer and bank-owned life insurance markets, with more than $4 billion in combined sales in 2019.

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 risk transfer solutions, and funding agreements.

Consolidated Statutory Results¹

Policyowners’ Dividends² (In Millions)

Our 2019 policyowners’ dividends exceeded $1.6 billion for the fifth year in a row, affirming our commitment to operate for the benefit of our eligible participating policyowners.

Total Adjusted Capital (In Billions)

Total adjusted capital grew to a record $24.5 billion, an increase of 23 percent from 2018, which underscores our enduring financial strength.

Life Company Assets (In Billions)

Life company assets grew 10 percent in 2019 and reached an all-time high of $280 billion.

These are consolidated statutory results of 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.
Dividends are determined annually, subject to change, and not guaranteed. For more information, visit MassMutual.com/Financials.

Summary of Financial Position (Consolidated statutory basis, in Millions)

As of December 31, 2019:	2019	2018
Short-term investments and cash	4,317	4,733
Bonds	106,023	101,504
Other invested assets	85,059	70,125
Total invested assets	$195,399	$176,362
Other assets	7,876	8,048
Separate account assets	76,659	70,431
Total assets	$279,934	$254,841
Policyowners' reserves	150,458	141,073
Policyowners' dividends	1,684	1,713
Other liabilities	27,457	22,601
Asset valuation reserve	4,783	3,413
Separate account liabilities	76,659	70,431
Total liabilities	$261,041	$239,231
Surplus	18,893	15,610
Total liabilities and surplus	$279,934	$254,841

Enterprise Measures

Assets Under Management¹ (In Billions)

The financial assets managed by MassMutual and our subsidiaries ended 2019 at $567 billion, reflecting the contribution of our asset management affiliate, OppenheimerFunds, Inc., to Invesco Ltd. This is partially offset by higher assets under management at Barings due to market appreciation, as well as strong cash flows across MassMutual’s protection and institutional businesses.

Life Insurance in Force (In Billions)

Life insurance in force represents the amount of protection the company has issued and remains outstanding. This measure continues to grow, an increase of 8 percent over prior year, due to strong sales and retention rates.

Premium & Other Deposits² (In Billions)

Results in 2019 reflect the sale of MassMutual Asia and partial sale of MassMutual Japan, offset partially by growth of domestic life insurance and institutional offerings.

Assets under management include assets and certain external investment funds managed by MassMutual subsidiaries, including Barings.
Premium & Other Deposits include net premiums and deposits as defined in the consolidated statutory results of Massachusetts Mutual Life Insurance Company and its U.S.-domiciled life insuranced subsidiaries: C.M. Life Insurance Company and MML Bay State Life Insurance Company, as well as premium and deposits from MassMutual’s international and asset management subsidiaries.

Summary of Operations (Consolidated statutory basis, in Millions)

As of December 31, 2019:	2019	2018
Premium income	23,099	23,262
Net investment income	8,008	8,087
Fees and other income	1,496	1,135
Total revenue	$32,603	$32,484
Policyowners' benefits	25,258	23,515
Increase in policyowners' reserves	897	3,056
Commissions, other expenses, and deductions	4,201	4,049
Total benefits and expenses	$30,356	$30,620
Net gain from operations before dividends and taxes	2,247	1,864
Dividends to policyowners	1,671	1,695
Net gain from operations before taxes	$ 576	$ 169
Federal income tax (benefit) expense	8	(159)
Net gain from operations	$ 568	$ 328
Net realized capital gains	(44)	(1,044)
Net income	$ 524	$ (716)