Record Performance in an Uncertain Recovery

We made significant strides toward that purpose in 2021, despite the year’s many fits and starts. With the pandemic prompting more people to seek out financial security for themselves and their loved ones, our company saw increased demand for its protection and planning solutions, solidifying our position as a top life insurance provider. We posted record sales of whole life insurance and total individual life insurance, bringing the total amount of insurance protection the company provides to $895 billion. These results — along with strong sales contributions from our broader portfolio of products and businesses, the excellent performance of the markets, and sound business and expense management — helped drive operating earnings to $2.1 billion.

And during a period of ongoing uncertainty, we maintained our excellent financial strength and flexibility, as total adjusted capital grew to nearly $33 billion for the first time, and we maintained ratings that are among the highest of any company in any industry.¹ These results — coupled with strong earnings contributions — enabled us to approve an estimated $1.85 billion dividend payout for 2022 to our eligible participating policyowners, the largest payout in our history.² Most importantly, we delivered on our commitments, paying $7 billion in insurance and annuity benefits to our customers at the time they needed us most.

To us, these results aren’t just numbers on a ledger. They represent the many individuals, families, and businesses we’ve helped, and the peace of mind we’ve provided. We’re proud that we have the chance to touch so many lives — and this exceptional year positions us to help even more people in the future.

Investing in Our People and Communities

Of course, our achievements aren’t just a reflection of the investments we make in the solutions we provide, but also in our many stakeholders. Simply put, for us to succeed, we must ensure those around us can, too.

That starts with our people. In 2021, we continued to provide our employees with extra time off and wellness programs to help manage through COVID-19, while introducing a new approach to daily work which balances personal flexibility with in-person teamwork. And to help maximize those connections, we opened a new office building in Boston’s thriving Seaport District, immersing ourselves in one of the leading centers for innovation in the U.S. With spaces that embrace the future of collaborative work while recognizing our long history in our home city of Springfield, we’re fueling our growth by tapping into the best of both ends of the Commonwealth.

As we pursue this growth strategy, we’re equally focused on doing so responsibly and sustainably. That’s why we’re embedding a comprehensive approach on environmental, social, and governance (ESG) topics throughout our operations, building upon years of work to address climate change. We’ve made net-zero commitments for MassMutual’s operations and investment portfolio, and have made a strategic investment in Low Carbon, a U.K.-based renewable energy investor and asset manager, to leverage proven technologies that advance renewable energy at scale. This builds a foundation for our work in the coming years to help build a stronger, more sustainable world for future generations.

And of course, environmental factors are just one part of that future. We must accelerate social progress as well by advocating for greater equity and opportunity for all. Over the past decade, MassMutual has deepened our commitment to this important work by building an organization that is more diverse, equitable, and inclusive, while holding ourselves accountable for our progress. Last year, we began publicly sharing our employee demographics, achieving a new level of transparency on our journey. Our Board of Directors continues to be one of the most diverse among FORTUNE^® 500 companies⁴, as its members draw from a broad range of backgrounds and perspectives to strengthen our governance and foster inclusive decision making. And we’ve expanded our efforts to ensure greater belonging and fairness while embarking on new ones — from increasing employee learning opportunities on allyship and anti-racism, to pledging $150 million to partner with underrepresented diverse businesses in our procurement operation.

As vital as these actions are, true progress depends on increasing opportunities where historic disparities exist, whether it is access to capital or education. That’s why we launched the $50 million MM Catalyst Fund, which invests in both Black-owned businesses in Massachusetts as well as technology and sustainability companies outside of Boston. Our efforts to expand opportunity in the Commonwealth have also included million-dollar grants to the Springfield public schools and the King Boston Center for Economic Justice. Meanwhile, we’ve continued to lend our leadership and talent to the CEO Action for Racial Equity, where we’re advocating for policies that strengthen early childhood education and close the digital divide.

While any societal change won’t happen overnight, looking out for our communities is core to who we are as a company. Year after year, we define success by ensuring our actions advance a greater good — and help forge a better future for all.

Evolving for the Long Term

Looking ahead, I’ve never been more confident in the course we’ve charted or our ability to endure challenges along the way. We know that times of transition don’t map cleanly to calendar years, and the future will bring continued uncertainty. But as we’ve shown in 2021, MassMutual is undeterred by the unknown.

By making investments that serve our communities, our company, and you — our policyowners and customers — we’re able to thrive while improving our world along the way. That’s our enduring commitment to mutuality in action, and one that will illuminate our path ahead.

After a remarkable 170th year, we’re just getting started. Thank you for being a part of this journey.

Sincerely,

Roger W. Crandall
Chairman, President and Chief Executive Officer

1. Financial strength ratings for MassMutual and its subsidiaries, C.M. Life Insurance Company and MML Bay State Life Insurance Company, are as follows: A.M. Best Company, A++ (Superior); Fitch Ratings, AA+ (Very Strong); Moody’s Investors Service, Aa3 (High Quality); and S&P Global Ratings, AA+ (Very Strong). Ratings are current as of February 1, 2022 and are subject to change. 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.
2. Dividends are determined annually, subject to change, and are not guaranteed.
3. Sales include Great American Life Insurance Company annuity sales of $2.4 billion from the first five months of 2021, before MassMutual acquired the company.
4. From FORTUNE. ©2021 FORTUNE Media IP Limited. All rights reserved. FORTUNE 500 (June 2021) and FORTUNE World’s Most Admired Company (February 2022) are registered trademarks of FORTUNE Media IP Limited and are used under license. FORTUNE and FORTUNE Media IP Limited are not affiliated with, and do not endorse products or services of MassMutual.

Our Purpose

MassMutual was founded in 1851 in Springfield, Massachusetts, by a small group of investors who pooled $100,000 to start writing policies for their friends and neighbors. Our founders knew that creating shared value would require discipline, commitment, and a sense of purpose. Now, 170 years later, throughout unimaginable change, we remain guided by that same purpose: to help people secure their future and protect the ones they love.

In service of our purpose, we operate as a mutual company, promoting strength through interdependence and helping one another. We thrive when our customers and communities do well. We grow by following our vision to provide financial well-being for all Americans with comprehensive solutions, education, and guidance.

Celebrating the Opening
of Our Boston Building

For more than 170 years, MassMutual has been proud to call Massachusetts, and more specifically, the city of Springfield, home.

By tapping into the best of both ends of the Commonwealth, we're building on this commitment and helping to connect the great talent and resources that span our state.

In 2021, we celebrated the opening of our new location at 10 Fan Pier in Boston’s Seaport neighborhood, which serves as a central hub for access to the city’s thriving financial market, startup community and workforce, as well as a vibrant neighborhood for employees to enjoy.

This building and our investment in Massachusetts reflect our strong belief that the Commonwealth provides everything we need to continue to grow and succeed over the long term: a highly skilled workforce, including a rich pipeline of talent from the state’s best-in-class network of higher education institutions; robust local economies; convenient access to transportation; and a rich diversity of communities, including the best of both metropolitan and suburban locations.

With hundreds of collaborative spaces and variety of amenities, the new office is designed to foster teamwork and innovation. It was also constructed with sustainability in mind, operating with 70 percent fewer natural resources than the average regional office building.

MassMutual commemorated the grand opening of 10 Fan Pier with a $1 million grant from the MassMutual Foundation to King Boston, an organization that works to drive civic engagement and advance economic justice. This is in addition to the donation of a floor to MassChallenge, deepening our partnership with the accelerator and support of the regional innovation ecosystem.