MassMutual Posts 27% Earnings Jump
March 20, 2015 by Jim Kinney
MassssMutual Financial Group announced year-end results for 2014 on Thursday.
Net gain from operations before policyowner dividends and taxes – the company’s primary earnings measure as a mutual company – was up 27 percent to $2.2 billion, MassMutual said in a news release. In 2013, this primary earnings measure was $1.8 billion, down from $2.1 billion in 2012.
The 2013 results were $350 million lower than they would have been if not for MassMutual’s purchase of the Hartford Retirement Plans business that year. It was the largest purchase in the MassMutual’s history.
Other highlights from the release:
• As reported in November, MassMutual estimates a 2015 dividend payout of $1.6 billion. That total dividend reflects a dividend interest rate of 7.10 percent on eligible participating life insurance policies, highest among its mutual competitors.
• For Dec. 31, 2014, sales of whole life insurance were $418 million, up 20 percent from the prior year. This is the the ninth consecutive year of record highs.
• Retirement plan sales rose 23 percent to $9.1 billion.
• Net income reached $799 million, compared to a net loss of $113 million in 2013 that was largely due to the acquisition and integration costs associated with the purchase of The Hartford Retirement Plans business.
• Weighted sales of whole life insurance were $418 million, up 20 percent from the prior 12 months, while retirement plan sales totaled $9.1 billion, up 23 percent. Both figures represent record sales amounts.
• The company’s statutory surplus was $14.2 billion, up 14 percent over the prior year, while total adjusted capital was $16.4 billion, a 13 percent increase over 2013. Both are all-time highs for MassMutual.
Roger Crandall, MassMutual chairman, president and CEO, said in a release: “I am pleased to report that 2014 was another tremendous year for MassMutual. By delivering record results, outpacing growth in our industry and increasing our financial strength, we performed favorably against the backdrop of a U.S. economy that continued a slow but steady rebound in 2014. Our results further illustrate our powerful momentum and have positioned the company for another great year in 2015.”
MassMutual has about 6,700 employees, including about 3,500 at the headquarters on State Street in Springfield.
