2018 ANNUAL AND CORPORATE RESPONSIBILITY REPORT Together always was, and always will be, a better way. Massachusetts Mutual Life Insurance Company and affiliates 1295 State Street, Springfield, MA 01111-0001 10% FIBER DERIVED FROM POST CONSUMER WASTE © 2019 Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001. All rights reserved. www.MassMutual.com. PR1000 2019 CRN202104-246047 About MassMutual MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyowners. MassMutual offers a wide range of financial products and services, including life insurance, disability income insurance, long-term care insurance, annuities, retirement plans and other employee benefits. Roger Crandall Pia Flanagan Subsidiary Leadership Executive Leadership Chairman, President and Chief of Staff to the Chief Chief Executive Officer Executive Officer Eddie Ahmed Head of MassMutual International Susan Cicco Michael O’Connor For more information, Head of Human Resources and General Counsel Tom Finke Employee Experience Chairman and Chief visit www.MassMutual.com. Mark Roellig Executive Officer, Barings Tim Corbett Head of Technology Chief Investment Officer and Administration Art Steinmetz Chairman, President and Geoffrey Craddock Gareth Ross Chief Executive Officer, Chief Risk Officer Head of Digital and OppenheimerFunds Customer Experience Michael Fanning Head of MassMutual U.S. Elizabeth Ward Chief Financial Officer and Chief Actuary Strong demand for our holistic financial solutions for both individuals and institutions drove revenue to a record $32 billion last year. Dear Fellow Policyowners and Customers, A Strong Foundation for the Future These commitments were supported by a As a mutual company, we measure our progress company as financially strong as ever, as we not on where our share price ended up for the increased our total adjusted capital to nearly year or whether we beat analysts’ estimates. $20 billion and maintained among the highest We measure it on how much closer we are to ratings of any company in any industry.1 This helping people build a more confident future. same stability enabled us to approve an estimated $1.72 billion dividend payout in 2019 to our eligible If one thing has been constant in MassMutual’s We did that in 2018 in an environment that was participating policyowners – our highest payout nearly 168 years, it’s change – embracing it, more volatile than we have seen in some time. ever and the 151st consecutive year we have 2 adapting to it, and helping our policyowners While we continued to benefit from historically paid a dividend. and customers succeed throughout it. low unemployment, solid wage growth, and modest inflation pressure, trade wars increased Most importantly, we continued to fulfill our In our company’s early years, groundbreaking uncertainty, and slowly rising interest rates helped commitments to you, delivering more than innovation meant installing phones and buying roil the markets. Geopolitical developments like $5.3 billion in benefits – with real dollars going to typewriters. Growing our customer base meant Brexit, shifting diplomacy with North Korea, and real people. Young adults. Families. Business owners. serving New England farmers, steamship workers, growing populist movements all exacerbated Retirees. Nothing makes me prouder than the fact and Gold Rush pioneers headed west. Today, the uncertainty. that we helped so many in 2018 – and laid a strong adapting to change means investing in data foundation to help even more in the years ahead. analytics, tapping into global markets, and more. In this increasingly unsettled environment, we once again provided a measure of certainty and Adapting to a Rapidly Changing World Yet, while the world continues to shift stability. Strong demand for our holistic financial As we operate from this position of strength, we dramatically, our pledge to our customers has solutions for both individuals and institutions drove are constantly assessing what we must do to build stayed the same: to provide stability and security revenue to a record $32 billion last year, while on our success and stay competitive in a rapidly in a world of change and uncertainty. That helping to increase the insurance protection we changing world. In 2018, we continued on our path mission is at the heart of what we call Live Mutual: provide to more than $700 billion, giving people the to stay nimble, while seizing opportunities to a vision of a world where stronger ties between security and peace of mind to face life’s position us strongly for the long term. people –from friends and family to coworkers uncertainties. Along the way, we also helped and even strangers – help us navigate life’s most more than half a million new people on their path One of our biggest priorities continues to be difficult moments. In 2018, we were proud to to a more secure financial future, whether it was as responding to the biggest trend reshaping advance that commitment – and put ourselves in a breadwinner protecting his or her family, a worker our world: digital transformation. We are seizing a stronger position to have a lasting impact on looking to save a few extra dollars for retirement, or the opportunities that technology has brought the lives of the people we serve. a retiree receiving a pension payment. to make our solutions more affordable and accessible to more people. 2018 Annual and Corporate Responsibility Report MassMutual 4 CEO MESSAGE That’s why we have expanded our use of data close in 2019, the transaction will give us the more than a million students with financial and analytics to provide protection in a fraction of largest ownership stake in the combined firm, life lessons through our FutureSmart program to the time, identify better ways to keep with expanded global scale, greater diversity giving away more than $700 million in insurance your assets safe, and help you of offerings, and additional capital that will protection through our LifeBridge program.3 Our make the best real-time decisions increase our financial strength. ongoing work through these programs is helping about your finances. It’s also why More than us build communities where everyone has the we are providing our dedicated Overall, these transactions will help us opportunity to flourish. network of advisors with digital maximize our investments in these capabilities to serve you better, $5B businesses, which have delivered strong A Live Mutual Future and are creating a seamless in benefits to our results across various market cycles and Taken together, our ongoing progress puts us in digital experience for purchasing customers provided excellent value to our policyowners. a strong position to continue what has driven insurance – from the time you first us since the beginning: helping people apply to when we deliver a claim. secure their future and protect the Moves like these – and the ones they love. opportunities they bring – are why I’m Yet as we adapt to immediate trends, we so confident in MassMutual’s future. Still, have also taken steps to maintain our long-term When I look back on the 168 one thing makes me most confident of performance so we can continue investing in our years since MassMutual was all: our people. We’ve always known business and honor our commitments decades 151st founded, I take great pride in our strategy would only work if our consecutive dividend from now. As such, we have begun to evolve our knowing this purpose has always people are empowered to do their best. payout in 2019 approach to what have long been our key strategic been at the heart of how we see So our approach is founded on one key differentiators – our international insurance and the world and our place in it. principle: people who are at their best in asset management businesses – by finding life are at their best at work. successful and innovative partners to help I am proud of the investments we have maximize their value. From fostering diversity and inclusion to made in 2018 to help make living mutually a advancing continuous improvement and reality for our policyowners and customers, and The 2018 sale of our majority interest in MassMutual learning, we are putting our employees in the incredibly excited for what we will accomplish in Japan to Nippon Life and sale of MassMutual Asia to best position to succeed. We did this in 2018 by the new year and beyond. Yunfeng Financial Group and several modernizing and expanding our benefits to give Asia-based investors are primary our employees greater choice and flexibility, Thank you for being part of the MassMutual examples. Both transactions as well as announcing plans to expand our community. We look forward to working with you enable us to benefit from presence in our home state – recommitting to advance a future where we can all Live Mutual – maintaining an ongoing Nearly to the city we have called home since our this year and for many years to come. interest in strongly positioned founding and establishing a new Boston entities, as well as through campus. This will create an overall Sincerely, potential strategic partnerships $20B environment that fosters greater that will yield additional total adjusted collaboration and innovation for opportunities over time. We capital generations to come. expect to reap similar advantages with our transaction announced last Roger W. Crandall And finally, investments like this are not just October, in which OppenheimerFunds, Chairman, President, and Chief Executive Officer limited to our workforce and workplace – they Inc., our retail asset management affiliate, will extend to our communities as well. We achieved 1 Financial strength ratings for MassMutual and its subsidiaries, C.M. Life combine with Invesco Ltd., to form one of the largest Insurance Company and MML Bay State Life Insurance Company, are as major milestones on the way to improving the follows: A.M.