“We were delighted when we heard The Hartford was going to be disposing of its retirement services business because it is so complementary to our business,” Elaine Sarsynski, executive vice president and head of MassMutual’s Retirement Services Division, told PLANSPONSOR.
The Hartford will add small plans business to MassMutual’s typically mid- to large-market book of business. According to PLANSPONSOR’s 2012 Recordkeeping Survey, $29 billion of The Hartford’s recordkeeping assets are with plans of size $10 million and less, while MassMutual has nearly $35 billion in the $1 million to $200 million plan market. Both companies work with fully-bundled and third party administrator (TPA) service models and both are very adviser-centric, Sarsynski said. She noted that the combined business will move MassMutual from its current place at number 20 to number 11 in the industry, in terms of assets under management, serving more than three million participants, with $125 billion in assets under management.
Hugh O'Toole, senior vice president of sales and client management for MassMutual's Retirement Services Division, noted that MassMutual was considering government markets as the next niche it would pursue for growth, and The Hartford’s existing 457 plan business complements that strategy.
O’Toole said MassMutual does not envision that the company will “break” what is currently working for the companies and their adviser, plan sponsor and participant clients. The Hartford has a fully-operational recordkeeping platform that works well for its plans, and MassMutual’s proprietary platform works well for mid-market clients, he noted. For the foreseeable future, they will use both platforms, meaning that The Hartford’s current clients will not be forced into a platform conversion.