AM Best Comments on Credit Ratings of Massachusetts Mutual Life Insurance Company and Its Subsidiaries Following Launch of New Reinsurer

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has commented that the Credit Ratings (ratings) of Massachusetts Mutual Life Insurance Company (MassMutual) (Springfield, MA) and its life/health subsidiaries, remain unchanged following the Jan. 12, 2022, announcement that it has launched a licensed Class E Bermuda-based life/annuity reinsurance company, Martello Re Limited (Martello Re).

The launch of Martello Re, with an initial equity of $1.65 billion, has the financial support of MassMutual, Centerbridge Partners, Brown Brothers Harriman and other institutional investors, including Hudson Structured Capital Management. Barings, a global investment manager owned by MassMutual, and Centerbridge Partners will act as asset managers for Martello Re. The company initially will provide MassMutual and its subsidiaries with reinsurance capacity, and then offer services to other top insurers in the life/annuity space.

MassMutual and its subsidiaries initially will cede approximately $14 billion of general account liabilities to Martello Re and enter into a flow arrangement to reinsure new business. Both transactions have received regulatory approval and are expected to close in February 2022.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Frank Walko
Financial Analyst

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Jacqalene Lentz, CPA

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Christopher Sharkey
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Jim Peavy
Director, Communications

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Source: AM Best