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.

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