MassMutual sale of retirement business – driven by need to cut costs – impacts 2,000 workers

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SPRINGFIELD — MassMutual’s decision to sell its retirement plan business will impact 2,000 employees, most of them working at MassMutual’s offices in Enfield, Connecticut, the company said.The Springfield-based insurance giant and Colorado-based Empower Retirement announced Tuesday that Empower has agreed to buy MassMutual’s retirement business for $3.35 billion.The move reflects industry trends of shrinking profit margins and efforts to consolidate and cut costs.Empower will acquire the MassMutual retirement business in a reinsurance transaction for a ceding commission of $2.35 billion. In addition, the balance sheet of the transferred business would be supported by $1 billion of required capital when combined with Empower’s existing U.S. business.“In Empower, we are pleased to have found a strong, long-term home for MassMutual’s retirement plan business, and believe this transaction will greatly benefit our policyowners and customers as we invest in our future growth and accelerate progress on our strategy,” Roger Crandall, MassMutual’s chairman, president and CEO, said in a statement.“This includes strengthening our leading position in the U.S. protection and accumulation industry by expanding our wealth management and distribution capabilities; investing in our global asset management, insurance and institutional businesses; and delivering a seamless digital experience — …

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