The insurer plans to invest $300 million in Massachusetts by 2021
On the heels of MAPFRE’s announcement that 2018 would bring a renewed focus to its operations in Massachusetts, the Massachusetts Mutual Life Insurance Company has announced that it too will be renewing its commitment to both Massachusetts as well as the insurance industry here.
The life insurer, which has called Springfield home for the past 165 years, unveiled a multi-year plan which will see the company expand its geographic footprint in both its hometown of Springfield as well as Boston. The company’s plans also include investing approximately $300 million in the Commonwealth as well as increasing the size of its workforce here by 70 percent, all before the end of 2021.
Massachusetts has all MassMutual needs for growth
MassMutual says that its decision to expand in Massachusetts was due to the fact that it has everything the company needs to grow and to serve its policyowners: A highly skilled workforce, a rich pipeline of talent from the state’s best-in-class network of higher education institutions; robust local economies; convenient access to transportation, and a diversity of communities, including the best of both metropolitan and suburban locations.
“Following a thorough strategic assessment of our operations and footprint, we concluded that our home state of Massachusetts is the best place for us to grow and thrive over the long term,” said Roger Crandall, MassMutual Chairman, President, and CEO.
“We have deep roots and a supportive community in our hometown of Springfield, and we will continue to invest and grow our workforce in the city. At the same time, as we evolve, a stronger Boston presence immerses us in a booming financial and digital economy and provides us with an enhanced opportunity to recruit innovators from the area’s deep and diverse talent pool.”
More on the new MassMutual campuses in Massachusetts
First, and foremost, the insurer says that it will be renewing its commitment to Springfield, the company’s hometown since 1851. Plans for the company’s Springfield headquarters will be two-pronged:
In addition to adding 1,500 positions to its Springfield facility, which will increase its workforce there by 50 percent, the insurer will also invest approximately $50 million to renovate its State Street campus. The result will be a revamped corporate headquarters able to accommodate the approximately 4,500 employees that will be housed there by 2021.
“MassMutual remains one of our leading corporate citizens, and I am pleased that we have once again been able to work together to support the company’s continued growth and expansion here in its hometown of Springfield,” said Mayor Domenic Sarno. “My administration has been working hard to create an environment that encourages job growth and today’s announcement illustrates that through collaboration, we can find constructive solutions to support our communities for the long-term.”
The company also announced plans to expand its geographic footprint eastwards within the state, with a brand-new satellite campus in Boston. The new $240-million dollar campus, which is slated to be completed by 2021, will be housed on an undeveloped parcel the company owns on Fan Pier, in Boston’s Seaport district. In excess of 300,000 square feet, the new MassMutual Boston campus will be a multi-office structure focused on housing those company functions that will benefit most from being located in an “a vibrant ecosystem with access to financial markets and digital talent” and that can accommodate the approximately 1,000 employees who will work there.
“We are thrilled to have MassMutual expand its presence and build a new campus on Fan Pier,” Mayor Martin J. Walsh remarked. “MassMutual’s decision to grow in Boston will give the company greater access to the growing technology and financial services industries in our city and enhance its ability to attract the best available talent. I am delighted another major employer has decided the City of Boston can contribute to its successful future.”
State meets MassMutual halfway in response to job creation in Boston and Springfield
In exchange for MassMutual’s renewed commitment to job creation in Massachusetts, the Commonwealth has agreed to provide incentives to the insurer valued at approximately $46 million dollars. In his official remarks on the deal, Governor Baker noted that this was the largest commitment ever made to a Springfield-based company.
“Our highly educated and skilled workforce helps the Commonwealth and great companies like MassMutual continue to lead the nation in a number of competitive categories,” commented Governor Charlie Baker. “We are proud MassMutual has called the Commonwealth home for over 165 years and we look forward to what their investments in Western and Eastern Massachusetts will mean for Massachusetts, our economy and their employees.”
Governor Baker also noted that the incentives for MassMutual are contingent upon the insurer’s job-creation promise of adding 2,000 jobs to Massachusetts.
The insurer has already begun consolidating its out-of-state facilities
Inevitably, MassMutual’s increase in investment and job creation in Massachusetts will come at the expense of its other facilities outside of the Commonwealth. The company already has announced its plans to consolidate certain facilities in other parts of the country, moving those positions to both its Springfield and Boston campuses.
For example, On February 8th, The Hartford Courant reported that the insurer has already started the process of closing its Enfield office, forgoing the $13 million in tax incentives the state of Connecticut previously had offered the insurer. In addition, the Charlotte Observer reported that MassMutual also will be moving 300 corporate jobs from the state back to Massachusetts.
The insurer says, however, that it will not be closing all of its offices outside of Massachusetts and expects to retain offices in Amherst, Mass., New York City and Phoenix, AZ, three areas that allow the company access to specific talent pools and business solutions.
About MassMutual
Founded in 1851 in Springfield, the Massachusetts Mutual Life Insurance Company, or MassMutual, is a leading mutual life insurance company that is run for the benefit of its members and participating policyowners. One of the top mutual life insurance companies in both Massachusetts and the country, the company also was named one of the world’s 2018 most ethical companies.
On a final note, for those who missed this year’s Super Bowl, the insurer scored a touchdown this year with one of the most watched and talked about ads. For those readers who missed it, we are sharing it here:
https://youtu.be/7Bq_H1ci9ec
