Dividend comparison

Newsletter Newsletter Headline This chart gives you a sense of competitors’ current and historical dividend interest rates. The dividend interest rate is not the rate of return on the policy. Dividends are composed of an investment component, a mortality component and an expense component. The way companies apply dividend interest rates to calculate dividends varies. Some companies quote gross rates. Others, including MassMutual, quote rates that are net of investment expenses only, while yet others quote rates that take additional items into consideration. For these reasons, dividend interest rates should not be the sole basis for comparing insurers or policy performance. However, historical trends can provide some insight into how other companies have responded to the economic climate over the past few years. Competitive Insight for Producers MassMutual and key competitors’ dividend interest rate actions Historical dividend interest rates Year MassMutual* Guardian MetLife New York Life Northwestern 2002 8.05 8.00 7.35 7.32 8.60 2003 7.90 7.00 7.10 6.79 8.20 2004 7.50 6.60 6.60 6.79 7.70 2005 7.00 6.75 6.60 6.79 7.50 2006 7.40 6.50 6.25 6.79 7.50 2007 7.50 6.75 6.25 6.79 7.50 2008 7.90 7.25** 6.25 6.79 7.50 2009 7.60 7.30 6.25 6.14 6.50 2010 7.00 7.00 5.75 6.11** 6.15 2011 6.85 6.85 5.50 6.11 6.00 2012 7.00 6.95 5.50 5.80 5.85 * Refers to the MM-TBCC block of business, which comprises policies issued after the merger of Massachusetts Mutual Life Insurance Company and the former Connecticut Mutual Life Insurance Company in 1996 ** Company adjusted the method of dividend calculation in this year Sources: 2002-2011 Full-Disclosure/Blease Research, 2011 Company Press Releases FOR PRODUCER USE ONLY. NOT FOR USE WITH THE PUBLIC. © 2011 Massachusetts Mutual Life Insurance Company, Springﬁeld, MA 01111-0001. All rights reserved. www.massmutual.com. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its afﬁliated companies and sales representatives. LI7261 1211 CRN201211-153989

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Transcript of Dividend comparison

Newsletter

Newsletter HeadlineThis chart gives you a sense of competitors’ current and historical dividend interest rates. The dividend interest rate is not the rate of return on the policy. Dividends are composed of an investment component, a mortality component and an expense component. The way companies apply dividend interest rates to calculate dividends varies. Some companies quote gross rates. Others, including MassMutual, quote rates that are net of investment expenses only, while yet others quote rates that take additional items into consideration. For these reasons, dividend interest rates should not be the sole basis for comparing insurers or policy performance. However, historical trends can provide some insight into how other companies have responded to the economic climate over the past few years.

Competitive Insight for Producers

MassMutual and key competitors’ dividend interest rate actions

Historical dividend interest rates

Year MassMutual* Guardian MetLife New York Life Northwestern

2002 8.05 8.00 7.35 7.32 8.60

2003 7.90 7.00 7.10 6.79 8.20

2004 7.50 6.60 6.60 6.79 7.70

2005 7.00 6.75 6.60 6.79 7.50

2006 7.40 6.50 6.25 6.79 7.50

2007 7.50 6.75 6.25 6.79 7.50

2008 7.90 7.25** 6.25 6.79 7.50

2009 7.60 7.30 6.25 6.14 6.50

2010 7.00 7.00 5.75 6.11** 6.15

2011 6.85 6.85 5.50 6.11 6.00

2012 7.00 6.95 5.50 5.80 5.85

* Refers to the MM-TBCC block of business, which comprises policies issued after the merger of Massachusetts Mutual Life Insurance Company and the former Connecticut Mutual Life Insurance Company in 1996

** Company adjusted the method of dividend calculation in this year

Sources: 2002-2011 Full-Disclosure/Blease Research, 2011 Company Press Releases

FOR PRODUCER USE ONLY. NOT FOR USE WITH THE PUBLIC.

© 2011 Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001. All rights reserved. www.massmutual.com. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives.LI7261 1211 CRN201211-153989