what happened to connecticut mutual life insurance company

Massachusetts Mutual Life Insurance Company

Trade proper name

MassMutual
Blazon Private. Mutual
Industry Financial services
Founded May 15, 1851
Founder George W. Rice
Headquarters Springfield, Massachusetts, USA

Expanse served

U.s.

Central people

Roger W. Crandall,[i] President and CEO
Acquirement US$29.6 billion (2016)
AUM Usa$567 billion (March 31, 2020) [2]

Number of employees

8,000 (2016) Edit this on Wikidata
Website www.massmutual.com

The Massachusetts Mutual Life Insurance Company, also known equally MassMutual, is a Springfield, Massachusetts-based life insurance company.

MassMutual provides financial products such equally life insurance, inability income insurance, long term care insurance, retirement/401(k) programme services, and annuities. Major affiliates include Barings LLC, and Haven Life Insurance Agency.

MassMutual ranked at 93 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.[3] The company has revenues of $29.6 billion and avails nether management of $675 billion (as of 2016).[four] [5] The company employs more than 7,000 in the Us, and a total of 10,614 internationally.[6]

History [edit]

Origins [edit]

Massachusetts Mutual Life Insurance Company (MassMutual) began operation on May 15, 1851 in Springfield, Massachusetts. It was founded by George Westward. Rice, who subscribed for a guarantee capital of $100,000.[7] [8] As an insurance agent who sold policies for Connecticut Mutual Life Insurance Visitor in Hartford, Connecticut, Rice wanted to open a company of his own in neighboring Massachusetts. Similar to Connecticut Mutual, this new enterprise grew into a common company.[9]

The popularity of mutual companies in the insurance industry had grown significantly betwixt 1843 and MassMutual's creation. Approximately a dozen competing common companies, including Mutual Life Insurance Company of New York (1842), Common Life Insurance Company of New Jersey (1845), and Connecticut Mutual Life Insurance (1846), experienced promising success, considering minimal amounts of working capital were required for functioning.[10]

Nonetheless, MassMutual's path followed a different grade when an 1851, Massachusetts country law required all insurance companies to take an initial stock subscription of $100,000.[11] Rice met that requirement by recruiting 31 investors to buy stock in his visitor to meet the mandatory subscription. Afterward the company began operations and congenital sufficient reserves to meet regulatory requirements, the 31 stockholders were paid dorsum in 1867, the stock was retired, and MassMutual functioned every bit a mutual company.[12]

Caleb Rice (1792–1873), 1st company president, and 1st mayor of Springfield

Colonel Martin Van Buren Edgerly

MassMutual's outset president was Caleb Rice, appointed in 1851.[13] A cousin of founder George W. Rice, Caleb Rice served equally president of MassMutual for 22 years, making him the longest-serving president in the company'south history.[fourteen] As a former lawyer and Sheriff of Hampden County, Massachusetts, Rice served on the Massachusetts Business firm of Representatives for five years and was subsequently elected every bit the first mayor of Springfield, Massachusetts from 1852 to 1853.[ citation needed ]

MassMutual began to sell policies to homeowners and workers throughout New England. Equally westward expansion grew, fueled past excitement from the California Golden Rush (1848–1855) and railroad development, MassMutual agents began to sell high-premium insurance policies to railway and steamship workers, golden-blitz adventurers, and people relocating southward of the Stonemason–Dixon line. For the adjacent several decades, MassMutual'due south expansion continued to mirror that of the Usa. Past the fourth dimension MassMutual was established, 9,000 miles (14,000 km) of functioning railroad lines had been congenital, giving MassMutual the opportunity to establish agencies in New York City, Cleveland, Chicago, and Detroit by 1855. MassMutual reached the West Coast in 1868 and established an office in San Francisco before the Transcontinental Railroad was completed in 1869.[ commendation needed ]

Beyond the industry, sales of life insurance policies began to substantially increase by the tardily 1850s. Sales reached $200 meg by 1862, and so tripled to merely under $600 million past the end of the Civil War.[xv] Westward expansion and increased marketing efforts of the insurance industry were largely responsible for this growth.[16]

Another effort that contributed to the increased selling of life insurance policies was the passing of a non-forfeiture law past the Massachusetts legislature in 1861.[17] The police force forbade companies from canceling policies, even if premium payments were non received from policyholders, and stated that policies would be converted to term-life policies and companies were to pay whatsoever death claims that occurred during this term period. As the industry continued to abound, and then did MassMutual, and by 1873 – just over xx years since their first $1,000 policy was issued on August 2, 1851– the company held $4,501,909 in assets.[18]

Caleb Rice's presidency of MassMutual came to an end in 1873 when he was succeeded by Eastward.Due west. Bail, who held the position for 13 years. Bond was replaced in 1886 by Colonel Martin Van Buren Edgerly, who started his career with MassMutual in 1859.[nineteen] [20] He was the start major example of MassMutual'due south tendency to expect from within to promote and enforce in leadership.

Regulated Growth: The Late 1800s to Early 1900s [edit]

A historic postcard of Massachusetts Mutual Life Insurance Company building in Springfield, Massachusetts

Edgerly oversaw MassMutual's growth for nigh a decade. John Hall replaced Mr. Edgerly in March 1895 and helped MassMutual's avails exceed $50,000,000.[21] In 1901, MassMutual began to offer policies whose proceeds would be paid over a fixed period or for life, compared to policies that were only payable in lump sums at decease or maturity.[22] Before Mr. Hall's death on September 3, 1908, he guided MassMutual through the late 19th century – particularly through numerous business scandals of the early 20th century.[23] [24]

The 1906 Armstrong Committee investigation in 1905 uncovered the questionable financial practices of several New York life insurance companies. While MassMutual was not a specific target, the investigation required insurance companies to distribute dividends annually, to restrict the size of agents' commissions, and to regulate the nature of their investments.[25] Policies were also required to land the provision upon cosmos.[26]

As the Armstrong Investigation settled, all MassMutual policies issued after Oct ane, 1907 earned value according to the American Experience Table of Bloodshed and 3% interest.[27] MassMutual too began to offer new services and policies to attract customers. In 1914, the company instituted a premium waiver in the event of disability, and designed policies with clauses that provided income in the event of disability in 1918.[28]

Despite the agin furnishings of the influenza epidemic in 1918, MassMutual maintained steady growth. The company employed 400 dwelling house office employees as the amount of insurance in force passed $i billion in 1924.[29]

However, MassMutual began to experience the direct furnishings of the stock market crash in 1929. As the economy plunged 22% in a matter of days and 30% of the land's workforce was faced with unemployment, decease claims and policy lapses drastically increased due to an unusual number of suicides and general economical hardship.[30] MassMutual became a concluding resort for people needing fiscal help as The Bang-up Depression took over the Usa – and the globe – from 1929–1932.[31] While the Great Depression was an economic downfall for the land, MassMutual was able to develop new products and services. MassMutual introduced its outset family-income policy in 1930. Eight years later, the firm issued its kickoff alimony trust policy in 1938.[32]

Postwar Years [edit]

Every bit the Great Depression faded from the United States in 1939, the start of World War Ii spurred the state's industrial and economic progression, workforce and insurance demands. Former actuary Alexander MacLean began his MassMutual presidency in 1945.[33]

Once the U.s. became heavily involved with World State of war II and unemployment significantly decreased, MacLean oversaw the development of insurance products and services for workers. The state of war placed loftier production demands on the country'south industrial workforce. Every bit jobs were speedily created and unions strengthened, MassMutual entered the group marketplace in 1946, offering policies and managing pensions. The first group product was a pension and insurance policy for Brown-Forman Distillers – the Kentucky-based visitor that produced Jack Daniel's whiskey.[34]

MassMutual maintained internal development as the postwar economy boomed past decentralizing operations through field agents. The company's domicile office staff, consisting of i,350 employees, served a client base of more 700,000 customers.[35] MassMutual'southward general and district agencies contributed towards the company's growth – assets totaled $1.4 billion, with $3 billion of insurance in strength past 1951.[36] In addition, MassMutual instituted a training program for field agents and encouraged its workers to complete the American College Chartered Life Underwriter designation. Full life insurance in force doubled from $two.7 billion to $5.4 billion between 1948 and 1957.[37]

Evolution Approaching and Through the 1970s [edit]

James R. Martin was named president in 1968.[38] Martin led MassMutual to invest in diverse projects, including $75 million invested in a Springfield, Mass. office to back up efforts for rejuvenating urban evolution in Springfield.[39]

MassMutual began to offer flextime for employees in 1968.[forty] While MassMutual focused on life insurance, policyowners began to invest money into money marketplace funds. MassMutual responded past forming its own money marketplace in the late 1970s.[41]

MassMutual Reorganizes: 1980s to 1990s [edit]

William Clark, who had taken over as MassMutual's president in 1980, reorganized the visitor irresolute investment policies and introducing several new products – including universal life policies in 1981.[42] [43]

MML Investors Services was founded in 1981, offering common funds and other non-insurance products.[44] MassMutual then reorganized in 1983 into four divisions: individual products, group life and wellness, group pensions, and investments.[45] Group pensions became particularly important in the 1980s subsequently the federal legislation began to oversee employee pensions as the Employee Retirement Income Security Deed was passed in September 1974.[46]

In addition to universal life policies being introduced in 1981, MassMutual's grouping pension unit was upgraded to a division the same year.[47] By early on 1984, the US economy rebounded and the state entered one of the longest periods of sustained economic growth since Globe War Two.[48] The group pension segmentation'due south assets had reached $5 billion – making MassMutual one of the biggest managers in the United States.[49] [l]

The investment management group issued $693 million in commercial mortgage pass-through certificates in 1985 – the largest commercial loan issue to date. Assets stood at $xv.7 billion and rose to $25.one billion by 1989.[51] Private life insurance in force was $81.5 billion in 1989 – up from $54.1 billion in 1985.[52] Despite the huge growth of the group pension and fiscal products divisions, MassMutual was still essentially seen as an insurance visitor.

Diversification and Growth of the 1990s and New Millennium [edit]

The 1990s brought on new opportunities for business advancement, branding, and acquisition. By this time, MassMutual was positioned equally the twelfth-largest insurance visitor in the United States based on total assets.[53]

New Business Acquisition in the 1990s [edit]

  • In 1990, MassMutual caused Oppenheimer Management Corporation from British and Democracy Holdings PLC for $150 meg as office of its strategy to diversify into mutual funds management.[54]
  • In 1993, Concert Capital Management was created as a subsidiary of MassMutual to oversee retirement funds and endowment assets.[55]
  • The investment direction firm of David L. Babson & Co. was purchased in 1995 – increasing MassMutual's avails under management to more $78 billion.[56] Babson & Co. was combined with Concert Capital Management as separate entities of MassMutual.[57]
  • MassMutual agreed to merge with Connecticut Common Life Insurance Company in Feb 1995 with expectations to save on operational costs.[58] [59] The company to run across $82 million in savings by the end of 1996, merely surpassed expectations with $108 one thousand thousand.[60]

MassMutual continued its diversification efforts through 1996 by creating Antares Leveraged Capital letter Corporation — a commercial finance unit providing lending services.[61] By this time, assets of MassMutual surpassed $100 billion.[62]

Growth in the New Millennium [edit]

In 1998, MassMutual posted a record net income with 37% net income over the previous year – $359.2 one thousand thousand. As profits increased through 1999, the company appear a new marketing name, MassMutual Financial Group.[63] This was an attempt to strengthen the make as a diversified financial services company. As Chairman and CEO, Robert Connell foresaw the importance of offering new products and services.[64] Betwixt 1999 and 2001, MassMutual and its domestic insurance subsidiaries launched 40 new products. Past 2001, nearly 70% of revenues stemmed from these products.[65]

MassMutual's financial success connected in 2000 – total sales increased by 31% and full assets under direction grew from 1999's $206.6 billion to $213.1 billion.[66]

International Developments [edit]

Along with increased monetary growth, MassMutual expanded internationally. MassMutual International purchased CRC Protective Life of Hong Kong, which was renamed every bit MassMutual Asia.[67] Back in the United states, MassMutual Trust Company was created in 2000, offering investment services and manor planning, in Hartford, Connecticut.[68]

Mod-twenty-four hour period Growth [edit]

Despite the loss of MassMutual's subsidiary OppenheimerFunds' New York offices on September xi, 2001, the subsidiary recovered well, posting potent results along with its parent visitor for the year.[69] In 2001, MassMutual Financial Grouping'south avails under management reached $234 billion.[70] MassMutual's profit in 2005 rose from $753 million to $810 one thousand thousand.[71]

Under CEO and President Roger Crandall, MassMutual whole life insurance sales rose 28% during the offset vi months of 2010.[72]

In 2012, MassMutual agreed to purchase The Hartford's Retirement Plans business, ultimately acquiring it January 1, 2013. This acquisition built on MassMutual'southward tape retirement business growth, added complementary markets and distribution capabilities, and nigh doubled the number of retirement programme participants MassMutual served.[73]

Oasis Life Insurance Agency, LLC was created as a subsidiary of MassMutual in 2015 with offices in New York.[74] Haven Life exclusively sells term life policies.[75]

In July 2020, Canadian-owned, Denver-based Empower Retirement announced it would exist purchasing MassMutual's retirement plan business for $4.iv billion plus a contingency payout.[76]

A total of 11,593 employees brand up the company'southward global workforce.[77] As of 2016, MassMutual Life Insurance holds Fortune 500's 76th place – upward from 2015's 94th.[78]

Involvement in the Madoff Investment Scandal [edit]

MassMutual owns Tremont Capital Direction, a feeder fund that fed investors' money to Bernard Madoff's Ponzi scheme and ultimately lost $3.iii billion in the resulting scandal.[79] Irving Picard, the receiver who is recovering coin from the Ponzi scheme, extracted a settlement from Tremont worth over one billion dollars.[80]

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External links [edit]

  • Official website

lincolnarither.blogspot.com

Source: https://en.wikipedia.org/wiki/MassMutual

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