A.M. Best: MassMutual Cracks Top 10 in Ranking of Life Insurers by Admitted Assets
July 18, 2014 by Fran Matso Lysiak
OLDWICK – Based on 2013 admitted assets, Hartford Life Group was bumped out of A.M. Best Co.’s top 10 U.S. life/health insurer ranking as MassMutual Financial Group climbed from 12th to 10th, a newly released statistical study shows. Total admitted assets for the U.S. life/health insurance industry rose to $6.1 trillion in 2013, a gain of 6.3% from 2012, the A.M. Best study said.
MassMutual also showed the largest percentage gain among the top 10 as its admitted assets jumped 16.4% to $195.1 billion.
Michael McNamara, a spokesman for MassMutual, said the company acquired Hartford’s retirement plans business, “which nearly doubles our retirement assets.” MassMutual also “realized strong sales and cash flows across our broad portfolio of diversified businesses,” he said in emailed comments.
Every company in the top 20 showed percentage gains in admitted assets — except for two. Hartford Life Group was one as its admitted assets declined 11.3% to $189.5 billion in 2013. Hartford Life dropped to 12th place in 2013 from seventh in 2012. Aflac Inc. Group was the other company in the top 20 to show a drop in admitted assets — a 6.3% decline — to $108.7 billion in 2013. Aflac also fell to 19th from the 16th-largest U.S. life/health insurer in 2012.
In March 2012, Hartford Financial Services Group said it would sell off three units: its life insurance business; its retirement plans business and Woodbury Financial, an independent broker-dealer as Hartford announced plans to focus on businesses that take insurance risk — and reduce its exposure to market risk. In January 2013, Prudential Insurance Company of America completed its $615 million acquisition of Hartford’s individual life insurance business and Massachusetts Mutual Life Insurance Co. completed its acquisition of Hartford’s retirement plans business for $400 million. American International Group Inc.’s life insurance and retirement business also acquired Woodbury in December 2012 for an undisclosed sum.
And earlier this month, Hartford Financial completed the sale of its Japanese annuity company to Orix Life Insurance Corp. for $963 million. “Completing the Japan transaction is another significant milestone in The Hartford’s journey to focus on our P&C, group benefits and mutual funds businesses,” Christopher J. Swift, the new chief executive officer of Hartford Financial effective July 1, said in a statement earlier this month.MassMutual posted a net loss in 2013 partly on the acquisition of Hartford’s retirement plans business. For 2013, MassMutual reported a net loss of $113 million on a consolidated statutory basis.
Among the top five companies, the rankings of Metropolitan Life & Affiliated Cos., Prudential of America Group, John Hancock Life Insurance Group, AIG Life & Retirement Group and TIAA Group were unchanged from 2012, coming in first through fifth place, respectively, by admitted assets in 2013. John Hancock Financial is the U.S.-based subsidiary of Canada’s Manulife Financial Corp. In last year’s study, the No. 3-ranked company’s name on the study was Manulife Financial Life Group.
The No. 1-ranked U.S. life insurer — Metropolitan Life — grew admitted assets by 4.1% to $585.7 billion in 2013.
Massachusetts Mutual Life Insurance Co. currently has a Best’s Financial Strength Rating of A++ (Superior).
(By Fran Matso Lysiak, senior associate editor, BestWeek: fran.lysiak@ambest.com)
