The Springfield-based American multinational life insurer Massachusetts Mutual Life Insurance Co., shortly called as MassMutual, employing a total of 10,614 workers across the globe, had been brewing off an option to a potential sell-off of its retirement services division, which had an upsum of $175 billion under its management alongside administration, people familiar with the issue had unveiled later this week on condition of anonymity.
On top of that, while the mutual company has been offering wide-ranging insurance products, the company was no longer contemplating the capital-intensive servicing of retirement policies core to its businesses, two of the sources said.
The retirement service business of MassMutual used to involve administrating various kinds of savings program. Aside from that, one of the sources close to MassMutual was quoted saying on condition of anonymity given the scale of sensitivity of the issue that the Massachusetts-based mutual fund and life insurer could shelve roughly $2 billion for its retirement services business, however, a spokeswoman for MassMutual had neither acknowledged nor declined the feasibility of the issue.
In point of fact, the 169-year-old life insurance company, MassMutual had launched its retirement services wing back in the 1946s, while its 401(K) savings plans, which usually are backed by an employer, became operational in the early-1980s and its defined-contribution plans had begun in the early 1970s.
MassMutual closes in second major divestment in just over a year
In point of fact, although it remains unclear why major insurers and financial service providers had been exiting the retirement plan businesses, MassMutual’s latest divestment plan of its retirement business came forth a year after the Wall St.
lender Wells Fargo & Co. had sold off its retirement plan businesses to Principal Financial Group for $1.2 billion. Apart from that, latest MassMutual move to sell off its retirement business, would mark up the Massachusetts-based insurer’s second major divestment in just over a year, since the company had vended its OppenheimerFunds unit in May last year for a total of $5.7 billion.