Ratings Reflect Life Insurers Strong Balance Sheet and Operating Performance
OLDWICK – OCTOBER 23, 2025 02:31 PM (EDT)
AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa+” (Superior) of Massachusetts Mutual Life Insurance Company (MassMutual) (domiciled in Springfield, MA) and its life/health subsidiaries, C.M. Life Insurance Company and MML Bay State Life Insurance Company (both domiciled in Enfield, CT). Concurrently, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IRs) of “aa-” (Superior) on the surplus notes of MassMutual and “aa+” (Superior) on notes issued under the funding agreement-backed securities programs of MassMutual Global Funding II. The outlook of these Credit Ratings (rating) is stable. (See below for a detailed listing of the Long-Term IRs and Short-Term Issue Credit Rating [Short-Term IR]).
Additionally, AM Best has affirmed the FSR of A++ (Superior) and the Long-Term ICRs of “aa+” (Superior) of MassMutual Ascend Life Insurance Company (MassMutual Ascend) and Annuity Investors Life Insurance Company (ALIC) (collectively referred to as MassMutual Ascend Life Group). Furthermore, AM Best has affirmed the FSR of B++ (Good) and the Long-Term ICR of “bbb+” (Good) of Manhattan National Life Insurance Company (Manhattan Life). The outlook of these ratings is stable. These companies are domiciled in Cincinnati, OH.
The ratings reflect MassMutual’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, very favorable business profile and very strong enterprise risk management (ERM).
MassMutual’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is at the very strong level, which reflects the company’s ability to support its insurance, investment and business risks. The company’s capital levels have increased over the years, driven by earnings growth and strong investment income. MassMutual holds elevated investment allocations in private placements, below investment-grade bonds and Schedule BA assets, but these have been effectively managed through MassMutual’s Barings investment subsidiary and are monitored with good asset-liability management capabilities and robust stress testing. Financial flexibility is supported by the organization’s proven ability to access the capital markets. MassMutual maintains sufficient liquidity to meet sudden, unanticipated needs, and this is monitored and stress tested on a regular basis. MassMutual’s leverage ratios remain well within AM Best’s guidelines.
MassMutual continues to hold leading market positions in life insurance, fixed and fixed-indexed annuities, pensions and institutional asset management. The company’s business profile has shifted in recent years toward whole life, fixed annuity, pension risk transfer and institutional asset management. AM Best assesses MassMutual’s ERM program’s capabilities as very strong relative to its risk profile. AM Best expects MassMutual to continue investing in technology across its distribution platforms and enhance its ERM and innovation programs going forward.
The ratings of MassMutual Ascend reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and very strong ERM.
AM Best assesses MassMutual Ascend’s balance sheet strength as very strong. The company’s balance sheet is supported by consistently strong earnings and a funds withheld coinsurance arrangement with Martello Re Limited. The company’s invested assets are managed by Barings. While invested assets are of good credit quality, AM Best noted increased allocations to structured securities, private placements and NAIC class 2 bonds, similar to that of its parent company, MassMutual. Nearly all of MassMutual Ascend’s reserves are interest-sensitive.
MassMutual Ascend’s operating performance has been supported by a trend of favorable earnings results, although results may fluctuate due to the change in the fair value of derivatives held on its fixed-indexed annuities. Premiums have increased over the past few years.
AM Best assesses MassMutual Ascend’s business profile as positive, as the company is benefiting from MassMutual’s business profile and resources. MassMutual Ascend’s ERM is assessed as very strong as it has been integrated into MassMutual’s ERM program.
The ratings of Manhattan Life reflect its balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, limited business profile and appropriate ERM.
Manhattan Life’s book of business is in run-off mode, with most of its liabilities reinsured through highly rated reinsurers. The company’s risk-adjusted capitalization, as measured by BCAR, is assessed at the strongest level, and the parent company has previously demonstrated that they will support the life company with capital contributions when needed. Manhattan Life’s earnings trends have been volatile, and a small increase in life claims can have a material impact on results. Partially mitigating factors include its modest portion of business relative to the enterprise and the support of its parent and a long-term trend of declining reserves due to the nature of the run-off company.
The following Long-Term IRs have been assigned with a stable outlook:
MassMutual Global Funding II—“aa+” (Superior) program rating
– “aa+” (Superior) to the GBP 500 million, 5.023% senior secured medium term notes, due Sept. 29, 2032
– “aa+” (Superior) to the JPY 14 billion, 2.15% senior secured medium term notes, due Oct. 10, 2025
The following Long-Term IRs have been affirmed with stable outlooks:
MassMutual Global Funding II—“aa+” (Superior) program rating
– “aa+” (Superior) on all outstanding notes issued under the program
The following Short-Term IR has been affirmed:
Massachusetts Mutual Life Insurance Company—
– AMB-1+ (Strongest) on commercial paper program
The following Long-Term IRs have been affirmed with stable outlooks:
Massachusetts Mutual Life Insurance Company—
– “aa-” (Superior) on $250 million, 5.625% surplus notes, due 2033 (of which $193 million remains
outstanding)
– “aa-” (Superior) on $750 million, 8.875% surplus notes, due 2039 (of which $129 million remains
outstanding)
– “aa-” (Superior) on $400 million, 5.375% surplus notes, due 2041 (of which $263 million remains
outstanding)
– “aa-” (Superior) on $500 million, 4.5% surplus notes, due 2065 (of which $254 million remains
outstanding)
– “aa-” (Superior) on $475 million, 4.9% surplus notes, due 2077
– “aa-” (Superior) on $838.5 million, 3.729% surplus notes, due 2070
– “aa-” (Superior) on $700 million, 3.375% surplus notes, due 2050
– “aa-” (Superior) on $500 million, 5.672% surplus notes, due 2052
– “aa-” (Superior) on $675 million, 3.2% surplus notes, due 2061 – “aa-” (Superior) on $800 million, 5.077% surplus notes, due 2069
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.
