2017 Annual & Corporate Responsibility Report
2017 Annual & Corporate Responsibility Report
Capitalizing on strong operating fundamentals, prudent risk management and a disciplined investment strategy, MassMutual’s 2017 results reflect continued growth in assets and capital.
| As of December 31: | 2017 | 2016 |
| Short-term investments and cash | $ 3,939 | $ 3,950 |
| Bonds | 94,870 | 88,208 |
| Other invested assets | 70,366 | 67,965 |
| Total invested assets | $ 169,175 | $ 160,123 |
| Other assets | 7,095 | 6,681 |
| Separate account assets | 75,505 | 68,234 |
| Total assets | $ 251,775 | $ 235,038 |
| Policyowners’ reserves | $ 133,547 | $ 128,425 |
| Policyowners’ dividends | 1,601 | 1,609 |
| Other liabilities | 22,109 | 18,092 |
| Asset valuation reserve | 3,308 | 3,264 |
| Separate account liabilities | 75,505 | 68,225 |
| Total liabilities | $ 236,070 | $ 219,615 |
| Surplus | 15,705 | 15,423 |
| Total liabilities and surplus | $ 251,775 | $ 235,038 |
| As of December 31: | 2017 | 2016 |
| Premium income | $17,762 | $21,246 |
| Net investment income | 6,866 | 6,660 |
| Fees and other income | 1,485 | 1,654 |
| Total revenue | $26,113 | $29,560 |
| Policyowners’ benefits | $20,646 | $19,118 |
| Change in policyowners’ reserves | (337) | 5,335 |
| Commissions and other expenses | 3,957 | 3,536 |
| Total benefits and expenses | $24,266 | $27,989 |
| Net gain from operations before dividends and taxes | $1,847 | $1,571 |
| Dividends to policyowners | 1,569 | 1,566 |
| Net gain from operations before taxes | $278 | $5 |
| Federal income tax expense (benefit) | (290) | (277) |
| Net gain from operations | $568 | $282 |
| Net realized capital gains | (431) | (212) |
| Net income | $137 | $70 |
The financial assets managed by MassMutual and its subsidiaries grew to a record $771 billion in 2017, reflecting significant growth in assets under management across MassMutual’s domestic and international life company businesses, as well as its asset management subsidiaries.
Worldwide insurance in force, or the amount of protection the company has issued and outstanding, grew by over 8%. Growth was driven by strong sales, particularly of whole life in the U.S., and is indicative of an attractive product portfolio.
Results in 2017 were driven by growth across our varied businesses, including domestic life insurance, our Institutional offerings, and the asset management companies, partially offset by lower year-over-year volumes in retirement plans.
1 Assets under management include assets and certain external investment funds managed by MassMutual subsidiaries including OppenheimerFunds, Inc. and Barings.
Our 2017 dividends to policyowners exceeded $1.5 billion for the fourth year in a row, affirming MassMutual’s dedication to paying one of the highest dividends in the industry while maintaining financial strength.
Total adjusted capital remained exceptionally strong, growing to a record $17.4 billion, reflecting strong operating results and prudent capital management. This level of capital strengthens our financial foundation, providing flexibility and the ability to manage for optimal long-term results.
Life company assets reached an all-time high of $252 billion, reflecting annual growth of 7%. Steady growth in recent years is an indication of our policyowners and customers recognizing the value of doing business with a mutual company.
2 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.
3 Dividends are determined annually, subject to change and not guaranteed.
For more information, visit MassMutual.com/Financials.
