SPRINGFIELD — MassMutual on Tuesday announced a $1.9 billion dividend for 2023, setting a new record for the third consecutive year.
The Springfield-based insurance giant has paid dividends to eligible participating policyowners every year since 1869. Last year, it announced a $1.85 billion in dividends for 2022. In 2021 it was $1.7 billion.
The dividend is paid to holders of participating life insurance policies.
“This year has been rife with instability and uncertainty – from geopolitical shocks to rising inflation and supply chain shortages, to stock and bond market volatility – which have driven to a global economic slowdown,” said Roger Crandal, Chairman of the Board, President and Chief Executive Officer in a written statement. “Yet at MassMutual, persevering in the face of such pressures is what we have done since our founding in 1851. Our record dividend payout for 2023 is a testament to our financial strength and stability, our long-term investment approach and our commitment to delivering continued value. to our policyholders.
MassMutual said its total adjusted capital is over $33 billion and its protection in force, the total of all active policies, is $918 billion. MassMutual maintained a 6% dividend interest rate for its 2023 payout.
MassMutual said dividends are not guaranteed. But MassMutual participating products, including whole life and disability policies, are eligible to receive dividends.
Generally, dividends from a whole life policy can be applied to increase a policy’s coverage and cash value, reduce premiums or policy loans, or be taken in cash. Three out of four MassMutual policyowners choose to apply their dividends to add to a policy’s coverage and, over the long term, dividends can be a very strong contributor to cash value and death benefit growth. of a font, the company said in its press release.
“With our people and network of finance professionals, our broad portfolio of solutions for every stage of life, and a personalized digital experience that we are constantly improving, we are well positioned to help people through these difficult times and help millions of people to be more secure in their future and protect those they love,” said Crandall.
MassMutual has approximately 6,000 employees in the United States and approximately 3,400 of them are based in Springfield.