CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JUNE 10, 2004 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating of A++ (Superior) of Massachusetts Mutual Life Insurance Company (MassMutual) (Springfield, MA) and its subsidiaries. Concurrently, A.M. Best has assigned senior debt ratings of "aa" on MassMutual's $250 million 5.625% 30-year surplus notes, $250 million 7.625% 30-year surplus notes and $100 million 7.5% 30-year surplus notes. The outlook for all ratings is stable.
The ratings reflect MassMutual's consistently favorable earnings performance and strong cash flows driven primarily by its core life and pension businesses. The ratings also recognize MassMutual's strong brand identity and diversified product offerings in the individual high net worth market, its well-established niche in the 401(k) market and the benefits the group derives from its ownership of OppenheimerFunds Inc., the organization's asset management subsidiary. Additionally, robust capital growth, strong returns on equity and consistent net operating gains are evidence of MassMutual's effective strategy.
Partially offsetting these positive factors are the intense competition MassMutual faces in its core individual life, asset accumulation and financial services businesses, as well as the challenges in continuing to profitably diversify its distribution channels.
The financial strength rating of A++ (Superior) has been affirmed with a stable outlook for Massachusetts Mutual Life Insurance Company and its following subsidiaries:
- C.M. Life Insurance Company
- MML Bay State Life Insurance Company
The following senior debt ratings have been assigned with a stable outlook:
Massachusetts Mutual Life Insurance Company-
- "aa" on $250 million 5.625 % 30-year surplus notes, due 2033
- "aa" on $250 million 7.625 % 30-year surplus notes, due 2023
- "aa" on $100 million 7.5% 30-year surplus notes, due 2024
For a list of A.M. Best's debt ratings, please visit Best's Debt Rating Center.
A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.