Page 26 - Demo CEOs of the Fortune 500

• Expand Footprint in the U.S.: Crandall said he’s considering expansion of money-management operations after reaching a deal this year to acquire a network of almost 4,000 financial advisers from MetLife Inc., according to a September 2016 Bloomberg article. "On the asset management side, we’re constantly looking at things," Crandall said in an interview with Bloomberg Television.... Crandall has been reshaping the Springfield, Massachusetts-based insurer, combining units including a real estate advisory firm under the Barings brand this year and appointing Tom Finke to lead that group. Another MassMutual unit, OppenheimerFunds, struck a deal in 2015 to purchase VTL Associates LLC, pushing into smart-beta exchange-traded funds. And Cornerstone Real Estate Advisers announced an agreement this year to buy ACRE Capital Holdings LLC in a bet on multifamily loans. The MetLife transaction helped policyholder-owned MassMutual gain more distribution, particularly on the U.S. East Coast and mid-Atlantic region. "It was a big increase," Crandall said. "It’s the kind of thing that doesn’t happen all that often, and we were thrilled to have the opportunity to do it. It happened quickly and we’re in the midst of putting that together right now, but so far, so good. Off to a good start.”
• Organizational Restructuring: MassMutual in April 2016 announced a newly aligned organization it says is "better positioned to meet customers’ evolving needs and seize new market opportunities around the globe. The streamlined, unified structure will also better enable the company to deliver a differentiated brand, customer and digital experience, and maximize the value of its international insurance operations." Crandall said, “MassMutual is a company with tremendous momentum. We have achieved record results, increased our financial strength and delivered innovative solutions to a growing number of customers. With more people in need of financial help than ever, I am confident we have the leadership in place to deliver even greater value and best serve our policyowners and customers as expectations continue to rapidly grow in the digital age. Our newly aligned organization will accelerate growth and enable us to reach even more people and provide them with the overall experience they have come to deserve and expect.” The company announced the following changes, effective May 2016:
• MassMutual will combine its U.S. insurance and retirement operations into a single, integrated business focused on providing holistic financial solutions to individuals and institutions. This includes the company’s portfolio of protection products – including life, disability income and long term care insurance and annuities for individuals – as well as retirement plans, worksite insurance and other specialty products and solutions for institutions. These offerings, sold through MassMutual’s career agency system, third-party intermediaries and directly to consumers, will be supported by aligned product development, marketing and operations functions. This new business will maintain the company’s strategic focus, further enhance its customers’ and clients’ experience, and accelerate MassMutual’s industry-leading sales growth.
• The company will form a new Customer Experience Group, focused on delivering a distinct brand and customer experience, and enabling delivery of innovative solutions through digital channels. This division will further develop and refine MassMutual’s current suite of digital assets used across its customer base, including the technology that powers Haven Life Insurance Agency, LLC, its online insurance subsidiary; Beneclick!, the company’s integrated employee benefits exchange, as well as its growing data science practice.
• MassMutual will place greater focus on maximizing the value of MassMutual International LLC, its overseas insurance operations in China, Japan and Hong Kong. Despite significant instability in the global markets, MassMutual International sales grew 21% last year to $4.0 billion, and assets under management increased to $23.9 billion. The company will seek to continue this strong momentum and further capitalize on market opportunities.
Copyright 2017 Boardroom Insiders www.boardroominsiders.com 26