AM Best confirms credit ratings of Massachusetts Mutual Life Insurance Company and its subsidiaries
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OLDWICK, NJ – (BUSINESS WIRE) –
AM Best confirmed the financial strength rating of A ++ (superior) and the long-term issuer credit rating of “aa +” (superior) of the Massachusetts Mutual Life Insurance Company (MassMutual) (domiciled in Springfield, MA) and its life / health subsidiaries, CM Life Insurance Company and MML Bay State Life Insurance Company (both domiciled in Enfield, CT). At the same time, AM Best confirmed the long-term credit ratings (IR long-term) of “aa-” (Superior) on the existing excess banknotes of MassMutual and “aa +” (Superior) on the banknotes issued under the programs. securities of MassMutual Global Funding, LLC and MassMutual Global Funding II. The outlook for these credit ratings (rating) is stable. (See below for a detailed list of Long Term IRs and Short Term Issue Credit Rating [Short-Term IR].)
The ratings reflect the strength of MassMutual’s balance sheet, which AM Best considers to be the strongest, as well as its strong operational performance, very favorable business profile and very strong Enterprise Risk Management (ERM).
MassMutual’s risk-adjusted capitalization, as measured by Best’s capital adequacy ratio (BCAR), is considered the highest, reflecting the group’s ability to bear its business, investment and insurance risks. . Capital and surpluses increased due to organic earnings growth and proceeds from the sale of its group retirement business. Although AM Best considers the group’s investment risk to be above average mainly related to lower quality bonds and BA assets, it is managed effectively with good asset-liability management capabilities and robust stress tests. MassMutual’s balance sheet is strengthened by strong liquidity capabilities and financial flexibility, and the group’s financial and operational leverage ratios as well as interest coverage ratios remain in line with AM Best guidelines.
The good operational performance of the group is well diversified but evolving. Historically, profits have come from its insurance operations, its asset management and its majority interests in national and international subsidiaries. In recent years, the group has withdrawn from non-strategic businesses and has extended its strategic investments while making significant investments in technology and digitization. Going forward, AM Best expects continued improvement in statistical and GAAP operating results, as MassMutual’s earnings are expected to improve over time as its business strategy focuses more on areas of business. higher margin activity.
MassMutual is one of the largest and most recognized insurers in the United States, with leading positions in life insurance, fixed and fixed indexed annuities, pensions and asset management. institutional. Its business profile has changed in recent years with the sale of its group retirement business to Empower, a growing non-controlling interest in Rothesay Life and, more recently, the acquisition of Great American Life Insurance Company and its subsidiaries in May 2021. AM Best assesses the capabilities of MassMutual’s ERM program as strong relative to its risk profile and reflects strong liquidity management capabilities and strong stress testing capabilities using economic capital modeling. On a forward-looking basis, AM Best expects Mass Mutual to continue to make significant advancements in technology and digital innovation across all distribution platforms, while demonstrating continuous improvements in ERM and innovation over time.
The following short-term IR has been confirmed:
Massachusetts Mutual Life Insurance Company—
– AMB-1 + (strongest) on the commercial paper program
The following long-term IRs have been confirmed with a stable outlook:
Massachusetts Mutual Life Insurance Company—
– “aa-” (Superior) on excess notes of $ 250 million at 7.625%, maturing in 2023
– “aa-” (Superior) on excess notes of $ 100 million at 7.500%, maturing in 2024
– “aa-” (Superior) on excess notes of $ 250 million at 5.625%, maturing in 2033 (of which $ 193 million remains
– “aa-” (Superior) on the excess notes of $ 750 million at 8.875%, maturing in 2039 (of which $ 130 million remains
– “aa-” (Superior) on excess notes of $ 400 million at 5.375%, maturing in 2041 (of which $ 263 million remains
– “aa-” (Superior) on excess notes of $ 500 million at 4.5%, maturing in 2065 (of which $ 258 million remains
– “aa-” (Superior) on excess notes of $ 475 million at 4.9%, maturing in 2077
– “aa-” (Superior) on excess notes of $ 838.5 million at 3.729%, maturing in 2070
– “aa-” (Superior) on excess notes of $ 700 million at 3.375%, maturing in 2050
– “aa-” (Superior) on excess notes of $ 800 million at 5.077%, due 2069
MassMutual Global Funding, LLC — program rating “aa +” (superior)
MassMutual Global Funding II — program rating “aa +” (superior)
– “aa +” (Superior) on all banknotes in circulation issued under the program
This press release relates to credit ratings published on the AM Best website. For all rating information relating to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best Recent rating activity Web page. For more information on the use and limits of credit rating opinions, please see Best Credit Score Guide. For more information on the appropriate media use of Best’s credit ratings and AM Best press releases, please see Media Guide – Appropriate Use of Best Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Based in the United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information visit www.ambest.com.
Copyright © 2021 by AM Best Rating Services, Inc. and / or its affiliates. ALL RIGHTS RESERVED.
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Source: AM Best