Helping the Commonwealth – and our Country

Aug 19, 2021

When a life insurance policyholder in Massachusetts pays their premium, they are undoubtedly aware of the financial protection and peace of mind they are providing for their loved ones.

But how many realize that life insurers have continued to fully function and provide crucial services for Massachusetts families during the COVID-19 pandemic? Or that life insurers remain a major source of jobs, employing 72,400 people in Massachusetts?

Even fewer policyholders are likely aware that their premium payments are turned into long-term investments by life insurers that build local communities throughout the Commonwealth and the nation. These investments help families get their first homes, finance education, fund infrastructure and much more.

To keep their long-term promises to 90 million American families, life insurers invest in stable, long-duration assets that yield solid returns, helping keep life insurance and other industry products accessible and affordable. Solid returns also help life insurers deliver guaranteed benefits to families and businesses in times of financial need. In Massachusetts alone, life insurers pay out $55.5 million daily on average to families and businesses.

Investments by life insurers can be relatively small – mortgages for single-family homes in Pittsfield averaging $176,000, for example. They can be large as well – including office space loans in and around Boston, each averaging $37 million.

In addition to single-family homes and office space, other insurance company investments include:

  • Apartments/Multifamily: More than $4.8 billion in mortgage loans throughout the Commonwealth.
  • Retail: $1.7 billion in mortgages, including $102 million in Springfield, $27 million in Barnstable and $15 million in Pittsfield, in addition to $1.4 billion in Boston.
  • Education: More than one-third of the industry’s $1.5 billion education bond portfolio comes from the Massachusetts School Building Authority.
  • Infrastructure: $1.3 billion in bonds issued by infrastructure-based entities include $190 million from the Massachusetts Water Authority, $210 million from the Massachusetts Port Authority and nearly $870 million from state transportation agencies.

Life insurers also invest in corporate bonds and stocks issued by private companies, putting total industry investments in Massachusetts at $171 billion.

Boston Mutual has been dedicated to helping the communities where we live and work for 130 years. Our company and other life insurers will continue investing into the Bay State in the years ahead, strengthening our communities, protecting families and helping workers and retirees plan for the future.

Paul A. Quaranto, Jr.

Paul A. Quaranto, Jr., MBA, LLIF, is Chairman, CEO and President of Boston Mutual Life Insurance Company.