The Massachusetts Mutual Life Insurance Company announced its intentions to pay $1.6 billion in dividends to policyholders in 2017. This represents a decrease from 2016 ofabout $100 million.
This is the first time in four consecutive years that MassMutual has decreased the total dividend payment from the prior year.
In the announcement, MassMutual noted sharp declines in the 10-year Treasury as a strong headwind the company faces. The dividend interest rate for 2017 will decrease to 6.70% for 2017. This is a 0.40% decline vs. 2016.
Despite the decline, the company appeared upbeat about the dividend announcement. MassMutual President and CEO Roger Candrall stated:
“Today’s announcement is a testament to our strength and stability amid global headwinds, including a prolonged, unprecedented low interest rate environment. We are extremely proud of our ability to sustain a highly competitive dividend while providing accessible financial solutions and sound guidance to help generations of families secure their future and protect the ones they love.”
You can read the press release from MassMutual here.
Brandon launched the Insurance Pro Blog in July of 2011 as a project to de-mystify the life insurance industry. Brandon was born in Northern New England, and he currently calls VT home. He attended Syracuse University and graduated with a triple major in Economics, Public Administration, and Political Science.