MassMutual approves billion dollar dividend payout
The board of directors of Massachusetts Mutual Life Insurance Company (MassMutual) has approved a $1.7 billion estimated dividend payout in 2020 to eligible participating policyowners and members.
While dividends are not guaranteed, MassMutual has paid policyowner dividends every year since 1869. With the 2020 estimated payout, the company will have paid more than $15 billion of dividends over the past decade.
“Being a mutual company enables us to take a long-term approach to doing what’s best for our customers – from the investments we make, to the solutions we offer, to the experience we provide,” said Roger Crandall, MassMutual chairman, president and CEO. “But more than anything else, our annual dividend payout has been one of the most enduring benefits of doing business with MassMutual. Four years after the Civil War ended, we began paying a dividend annually to our participating policyowners, and each payout has come with the strength and stability our policyowners can count on. We look forward to continuing to put these qualities to work to help millions more secure their future and protect the ones they love.”
The 2020 estimated dividend payout reflects a dividend interest rate of 6.20 percent for eligible participating policies. The company said this illustrates its ability to maintain a leading competitive position in a prolonged and unprecedented low interest rate environment, and is underscored by its strong financial foundation, including record total adjusted capital of more than $25 billion.
“For more than 150 years, our policyowner dividend has been a tangible part of delivering on our company’s purpose,” added Crandall. “I am thankful for the leaders before me who helped establish that long-standing commitment, and especially proud of our financial professionals and employees who work each day to help our customers live their lives with greater confidence, dignity and security.”
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