The MassMutual Life Insurance Company today announced its plans to pay participating policyholders $1.7 billion in dividends in 2021. This payment equals the same total dividend payment to all participating policyholders in 2020.
In today's press release, MassMutual noted business diversity in its strong business performance in non-participating life insurance that continues to bring additional strength in its ability to pay policyholder dividends.
New Dividend Interest Rate for 2021
The new dividend interest rate for 2021 will be 6.00%. This is a decline from the 6.20% dividend interest rate in 2020. As a reminder, our dividend analysis from earlier this year stated that a dividend rate below 6.10% was potentially indicative of stronger headwinds facing MassMutual's dividend-paying abilities.
Covid-19 and current fed policy concerning interest rates certainly have the potential to pose additional asset management challenges for some life insurers.