MassMutual Financial Group announces record $1.7 billion dividend payout

The MassMutual Financial Group headquarters on State Street in Springfield. The company announced Monday an estimated dividend payout of $1.7 billion for 2016. (DAVE ROBACK / THE REPUBLICAN). (Staff-Shot)

MassMutual: UNBELIEVABLE PERFORMANCE, Again & Again!

7.10% dividend, 3rd year in a row.

9th consecutive year of record growth in whole life policies. Can anyone even compete? Especially in this economy!

Slow and steady...still wins the race: 

"...whether it's through world wars, pandemics, market crashes, and most recently, a historically low interest rate environment where even three-month Treasury bills are yielding zero percent."

"SPRINGFIELD - MassMutual Financial Group announced a record dividend Monday of $1.7 billion for 2016.

The payout, which goes to eligible holders of MassMutual whole life insurance polices and some annuities, works out to a dividend interest rate of 7.10 percent, the Springfield-based company said Monday. Policy and annuity holders receive their payments on the anniversary dates of their polices and can take the money in one of four ways:as cash, to pay their insurance premiums, to buy more insurance coverage  or they can leave the money on interest with MassMutual.

Elizabeth Ward, MassMutual executive vice president, chief enterprise risk officer and chief actuary said the payment reflects MassMutual's financial health during an era of low interest rates and an up-and-down stock market. The dividend amount is based on MassMutual's operating performance not just in its insurance business but in what it calls non-participating businesses like asset management. As a mutual, MassMutual returns its profits to these eligible policy holders.

"This isn't just about looking at a simple quarter. It's about looking at who we are through time," she said.

The payout is nearly a $100 million increase over 2015, and the fourth consecutive year it has reached a new record, MassMutual said.

More than 1 million policy holders will get the dividend. The three oldest MassMutual policies were issued in 1926.

Ward said the interest rate reflects the investment portion of the dividend. There are three components: investment, expense and mortality.

In the release, Roger Crandall, MassMutual, chairman, president and CEO said:

"Today is a special day where the commitment we've made our policyowners is brought to life through our annual dividend payout. Through nearly our entire history, our policyowners have received an annual dividend regardless of what is happening in our world – whether it's through world wars, pandemics, market crashes, and most recently, a historically low interest rate environment where even three-month Treasury bills are yielding zero percent."

MassMutual said it had its ninth consecutive record year of growth in whole life policy sales... ."


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