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November 13, 2020 at 09:21 AM
The boards of Massachusetts Mutual Life Insurance Company, Northwestern Mutual Life Insurance Company and Ohio National have announced 2021 dividend payout estimates.
The announcements mainly affect holders of the companies’ participating whole life policies.
(Related: Mutual Life Insurers Begin Setting 2020 Dividend Rates)
A mutual life insurer is a life insurance company that’s owned by some or all of its policyholders. A mutual may use dividends to pay part of its profits to the policyholder owners.
MassMutual is cutting its 2021 dividend rate slightly, to 6%, from 6.2% for this year The company says it expects to pay a total of $1.7 billion in dividends in 2021. A year ago, MassMutual said it expected to pay $1.7 billion in dividends for 2020.
MassMutual is a Springfield, Massachusetts-based company that was founded in 1851. It reported $33 billion in 2019 annual revenue.
Northwestern Mutual says the interest rate it uses to calculate the 2021 dividend payments will hold steady at 5%. Total dividend payments are on track to increase to $6.2 billion, up from $6 billion in dividends for 2020, and up from $5.6 billion in 2019.
