SPRINGFIELD, Mass., Nov. 3 /PRNewswire/ -- Massachusetts Mutual Life Insurance Company (MassMutual) today announced it has approved the payment of approximately $1.35 billion in dividends to eligible participating policyholders in 2009. The total approved payout for 2009 reflects a dividend interest rate of 7.60 percent on new eligible participating life insurance policies(1).

"MassMutual remains strategically committed to providing our policyholders with high value products and services, and this includes providing strong dividends to our eligible participating policyholders, even during these uncertain and turbulent economic times," said Stuart H. Reese, chairman, president and CEO, MassMutual. "Our approved 2009 dividend payout reflects MassMutual's commitment to help provide financial stability and security to our policyholders, and demonstrates the company's continued strong financial position."

As a mutual company, MassMutual is owned by its policyholders, meaning they share in the ownership of the company(2). Given this commitment to provide long-term value to its policyholders, the company has a strong track record of paying dividends to eligible participating policyholders. MassMutual has consistently paid dividends since the 1860s.

"To borrow from the company's brand position, we view our dividend payout as the result of a 'good decision' by our participating policyholders in choosing to do business with MassMutual," said William F. Glavin Jr., co-chief operating officer of MassMutual and executive vice president of the company's U.S. Insurance Group.

Customers who purchase participating products from MassMutual receive an equitable share of a portion of the company's divisible surplus in the form of dividends as approved by MassMutual's Board of Directors each year. The dividends, which are not guaranteed, come primarily from three sources: investment results, mortality savings and savings on expenses. Dividends for a given policy are influenced by such factors as policy series, issue age, policy duration, policy loan rate and changes in mortality experience. The majority of MassMutual's dividends are paid to those who have purchased whole life insurance.

"With a guaranteed death benefit and cash value that grows over the life of the policy, whole life insurance provides valuable benefits as individual needs evolve over time," said Glavin. "Whole life insurance offers living benefits that provide flexibility and security, two attributes that people highly value as they seek to make good decisions about their financial future."

Policyholders can use dividends from participating products such as whole life for a wide variety of purposes. Options include receiving dividends in cash, or using them to reduce premiums, purchase additional insurance coverage, accumulate at interest in the policy, or repay policy loans and policy loan interest.

MassMutual has among the highest financial strength ratings of any company in any industry, and the 2009 approved payout reflects MassMutual's continued strong position. As of November 3, 2008, financial strength ratings for MassMutual and its subsidiaries, C.M. Life Insurance Company and MML Bay State Life Insurance Company are as follows: A.M. Best Company, A++ (Superior); Fitch Ratings, AAA (Exceptionally Strong); Moody's Investors Service, Aa1 (Excellent); and Standard & Poor's, AAA (Extremely Strong). Ratings are subject to change.

(1) This refers to business written since the MassMutual-Connecticut Mutual merger in 1996. For policies issued prior to the merger, the dividend interest rates are 7.45% for those issued by MassMutual and 7.40% for those issued by the former Connecticut Mutual. The dividend interest rate is not the rate of return on the policy. Dividends are composed of an investment component, a mortality component and an expense component. Therefore, dividend interest rates should not be the sole basis for comparing insurers or policy performance.

(2) MassMutual does not have stockholders. Instead, its policyholder members are often described as sharing in the ownership of the company. For example, an insured under a MassMutual whole life policy is a member entitled to certain voting rights and, if also the policy owner, is entitled to share in the dividends the company may declare.

MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. MassMutual and its subsidiaries had more than $500 billion in assets under management at year-end 2007. Assets under management include assets and certain external investment funds managed by MassMutual's subsidiaries.

Founded in 1851, MassMutual is a mutually owned financial protection, accumulation and income management company headquartered in Springfield, Mass. MassMutual's major affiliates include: OppenheimerFunds, Inc.; Babson Capital Management LLC; Baring Asset Management Limited; Cornerstone Real Estate Advisers LLC; The First Mercantile Trust Company; MML Investors Services, Inc., member FINRA and SIPC (www.finra.org and www.sipc.org); MassMutual International LLC and The MassMutual Trust Company, FSB. MassMutual is on the Internet at www.massmutual.com.

    MEDIA CONTACTS:
    Jim Lacey
    413-744-2365

    Mark Cybulski
    413-744-5427

SOURCE Massachusetts Mutual Life Insurance Company