MassMutual

Nov 13, 2025

and its wholly owned operating subsidiaries' (MassMutual) Insurer Financial Strength (IFS) Ratings at 'AA+' and Issuer Default Ratings (IDR) at 'AA'. The Rating Outlook for MassMutual is Stable. Key Rating Drivers Very Strong Capitalization: Fitch assesses MassMutual and its subsidiaries' capitalization as 'Very Strong' on an absolute and risk-adjusted basis, as measured by our Prism capital model score of 'Extremely Strong' and a risk-based capital (RBC) ratio consistently exceeding 425%. As of Dec. 31, 2024, total adjusted capital was $33.2 billion, down from $34.5 billion yoy. The RBC ratio remained stable at 444% as of Dec. 31, 2024, down slightly from 446% yoy. Statutory capital fell due to net capital losses from derivatives used for interest-rate hedges and a larger proportion of surplus from insurance-entity- affiliated investments excluded from the calculation. As of June 30, 2025, total adjusted capital improved to an estimated $33.8 billion, driven by net operating gains and capital gains from MassMutual Holding LLC. Surplus notes to capital was 14%. Very Strong Company Profile: Fitch assesses MassMutual's company profile as 'Very Strong', supported by strong brand recognition, large operating scale, productive captive agency distribution and market position as a leading seller of participating whole life insurance. MassMutual's product offering remains well diversified, with participating whole life, ordinary life, disability income and fixed deferred annuities. The company also offers institutional solutions, including pension risk transfer, funding agreement-backed notes, bank- and corporate-owned life insurance, and institutional asset management capabilities through Barings LLC. Higher Affiliated and Private Investments: MassMutual holds a higher degree of affiliated investments, driven by investments in strategic entities. This differentiates MassMutual from peers and supports policyholder dividends. MassMutual also holds a higher proportion of private bonds. On a Massachusetts Mutual Life Insurance Company (MMLIC)-only basis, private bonds were 71% of total bonds as of Dec. 31, 2024, according to statutory classifications. MMLIC's allocation to private bonds fell modestly from 72% in 2023 but rose over the last five years from 63% in 2020. Its private bond allocation was well above life industry and highly rated mutual-peer averages of 45% as of Dec. 31, 2024. MassMutual's above-average holdings of private bonds expose the portfolio to market volatility, which could generate impairments or unrealized losses in a stressed environment. However, given the focus on stable liabilities, such as participating whole life and annuities that are not subject to withdrawal or are protected by surrender charges, the company is not expected to be a forced seller. Additionally, the company has a strong history of favorable loss experience and increased its investment-grade holdings in the private bond portfolio to 94% as of YE 2024 from 92% in 2023 and 90% in 2022 and 2021. Only 12% of annuity and deposit liabilities were subject to withdrawal without surrender charges or market value adjustments as of YE 2024. Strong, Stable Earnings Performance: MassMutual's financial performance remains strong and stable on an underlying statutory reporting basis. The company's excess capital position and robust policyholder dividends dampen operating performance metrics. MassMutual's operating results are moderate on an absolute basis but favorable on a risk-adjusted basis. MassMutual's statutory net gains before dividends and taxes was $2.6 billion in 2024, down from $3.0 billion in 2023, mainly due to lower premium volumes and higher credited rates. Returns improved in 1H25, with net gains before dividends and taxes of $1.7 billion. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade -- Sustained declines in regulatory capital, as exhibited by an RBC ratio consistently below 425% or a Prism capital model output below 'Extremely Strong'; -- Significant volatility in earnings due to unexpected declines in profitability or sustained investment losses; -- A material increase in investment risk or realized losses that negatively affects Fitch's view of capital quality; -- Surplus notes-to-capital ratio increases above 20%. The notching of surplus notes could widen if the ratio exceeds 15%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade -- Maintain an RBC ratio above 450% and a Prism capital model score of 'Extremely Strong'; -- Report further growth in the participating whole life insurance market through increased sales and business concentration. REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores RATING ACTIONS Entity / Debt Rating Prior MassMutual Global Funding II senior secured LT AA+ Affirmed AA+ C.M. Life Insurance Company LT IFS AA+ Affirmed AA+ Massachusetts Mutual Life Insurance Company LT IDR AA Affirmed AA ST IDR F1+ Affirmed F1+ LT IFS AA+ Affirmed AA+ subordinated LT AA- Affirmed AA- senior unsecured ST F1+ Affirmed F1+ MML Bay State Life Insurance Company LT IFS AA+ Affirmed AA+ Previous Page of 10 rows 20 rows 50 rows 100 rows 500 rows Next Loading... VIEW ADDITIONAL RATING DETAILS Additional information is available on www.fitchratings.com PARTICIPATION STATUS The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer's available public disclosure. APPLICABLE CRITERIA Insurance Rating Criteria (pub. 04 Mar 2024) (including rating assumption sensitivity) APPLICABLE MODELS Numbers in parentheses accompanying applicable model(s) contain hyperlinks to criteria providing description of model(s). Prism U.S. Life Insurance Capital Model, v1.3.5-2024 ( ADDITIONAL DISCLOSURES Dodd-Frank Rating Information Disclosure Form Solicitation Status Endorsement Policy ENDORSEMENT STATUS C.M. Life Insurance Company EU Endorsed, UK Endorsed Massachusetts Mutual Life Insurance Company EU Endorsed, UK Endorsed MassMutual Global Funding II EU Endorsed, UK Endorsed MML Bay State Life Insurance Company EU Endorsed, UK Endorsed DISCLAIMER & DISCLOSURES All Fitch Ratings (Fitch) credit ratings are subject to certain limitations and disclaimers. Please read these limitations and disclaimers by following this link: https://www.fitchratings.com/understandingcreditratings . 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