Springfield’s Massachusetts Mutual Life Insurance Co. (MassMutual) has approved payment of an estimated $1.33 billion in dividends to eligible participating policyholders in 2012, an increase of $105.5 million, or 8.6 percent, over the prior year.

The annual dividend, which MassMutual has paid to policyholders consistently since the 1860s, is one of the key benefits of purchasing a participating policy from a mutual company that is operated for the benefit of its policyholders.

"In a continuing unstable economic environment, consumers are seeking security with financially strong, stable companies that truly have their best interests in mind," said Roger Crandall, chairman, president and CEO of MassMutual. "The value of doing business with a mutual company has never been more abundantly clear, and MassMutual is proud to deliver on that enduring value by continuing our legacy of strong dividend payouts. Our increased dividend payout in 2012 demonstrates our longstanding commitment to mutuality, financial strength, and those who matter most to us, our policyholders."

The total dividends for 2012, approved by MassMutual’s board of directors, include a dividend interest rate of 7 percent on all eligible participating life insurance policies. Over the past 50 years, the company has paid more than $25 billion in dividends to eligible participating policyholders, according to a statement.

"The celebration of our 160th anniversary this year reminds us that the hallmarks that have made MassMutual successful – our financial strength, our integrity, and our commitment to our policyholders – are as clear and as steadfast as they were when we first opened for business in 1851," Crandall continued. "More than a century and a half after we were founded, we are still providing the strength and stability people have come to expect from us, and we look forward to continuing to make doing business with MassMutual a good decision."