SAN JUAN – Massachusetts Mutual Life Insurance Co. (MassMutual) has announced that its board approved a record $1.72 billion estimated dividend payout in 2019 to eligible participating policyowners and members.
The estimated dividend payout represents an increase of more than $125 million over 2018, and marks the 151st consecutive year that MassMutual will be paying a dividend, according to the company, which offers mutual life, disability income and long term care insurance, as well as annuities, retirement plans and other benefit services.
Additionally, the 2019 estimated payout reflects a dividend interest rate of 6.4 percent for eligible participating policies, maintaining the same rate as 2018. The dividends “primarily consist of investment, mortality and expense components,” the insurer explained.
“This record dividend payment is a testimony to the company’s strength and stability,” said Fernando López, general agent of MassMutual Puerto Rico, adding that the company has more than 10,000 customers and more than $3 billion in insurance policies.
While dividends are not guaranteed, MassMutual said it has paid them to eligible participating policyowners every year since 1869. “In fact, with the 2019 estimated payout, MassMutual will have delivered $14.7 billion in dividends to eligible participating policyowners since 2010,” a release reads.
“Our record estimated dividend payout for 2019 reflects the strength of our operations, the longevity of our success, and ongoing stewardship that has helped generations of people secure their future and protect the ones they love,” said Roger Crandall, MassMutual chairman, president and CEO.
MassMutual said the 2019 estimated dividend payout reflects “improved mortality experience and favorable investment performance, as well as MassMutual’s strategic differentiator – its diverse mix of high-performing businesses, including its institutional and workplace businesses as well as its investments in international insurance and global asset management operations. It also underscores MassMutual’s financial strength, as the company has consistently earned among the highest ratings of any company in any industry.”
It has paid more than $35 billion in insurance and annuity benefits – including more than $5 billion in 2017 – “and has increased total adjusted capital more than 60 percent to historic levels of more than $18 billion,” as of Sept. 30, it said.
“Our 2019 estimated dividend payout reflects our steadfast commitment to our participating policyowners and members,” said Mike Fanning, head of MassMutual U.S. “Through our dedicated financial professionals and innovative digital tools that meet people on their terms, we are strongly positioned to provide holistic financial solutions to the millions more who need them.”