New York Life Reports 2010 Financial Results
- Surplus and Asset Valuation Reserve increased by
$1.8 billion , or 12%, to a record high of$16.8 billion . - Operating earnings of
$1.4 billion increased 21% from 2009, exceeding the record result set in 2008. - Operating revenue grew by
$1.1 billion , or 7.7% over 2009, to a record high$15.5 billion . - Total insurance sales surpassed
$3 billion , an increase of 15% over 2009, setting a new record, withU.S. Life Insurance leading the way with a 26% increase. - Total investment sales exceeded
$35 billion , a rise of 6.7% over 2009 and a new record. - Assets under management reached a record of
$316 billion , a 10.2% increase from 2009.
Our agents and employees have worked hard to inform our policyholders and the public about the important role that life insurance can play in their financial planning and New York Life’s superior financial strength and track record of providing long-term guarantees. In the last three years in particular, the public has come to appreciate the importance of who is providing their family’s protection. This financial flight to quality provides the context for understanding our company’s recent performance. Meanwhile, New York Life remains one of only three life insurers in the U.S. with the highest-possible ratings from all four of the major rating agencies. Tied closely to our financial strength is our mutual structure, which perfectly aligns our business with the long-term interests of our policyholders. Our single focus on policyholders and managing for the long term has enabled us to pay a cash dividend to policyholders for 157 consecutive years, and despite the low interest rate environment we decided to hold our dividend scale for 2011 at a time when so many major U.S. life insurers are reducing their dividend scales. I am confident we can continue to differentiate our company by staying true to our fundamental strategies, including our focus on life insurance, on career agents, on remaining a mutual company, and of course, maintaining superior financial strength.”
Strong Surplus Position Provides Safety
Surplus, a main measure of financial strength, increased 12% in 2010 to
Record Operating Earnings
Operating earnings, the company’s measure to track profitability from ongoing operations, were a very strong
Records Set for Sales, Operating Revenue and Assets Under Management
Insurance sales increased 15% in 2010, to
New York Life is the largest seller oflife insurance andlifetime income annuities in
Investment sales increased 6.7% to
Review of Businesses
U.S. Life Insurance and Agency Operations
The company’s U.S. Life Insurance and Agency Operation includes the manufacture and sale of all life insurance products in
- For the fourth consecutive year, New York Life recruited more than 3,000 financial representatives in
the United States in 2010. Agents who plan to work in specific ethnic communities represented more than 40 percent of agent appointments in 2010. - New York Life continued its leadership in the MDRT (formerly known as the
Million Dollar Round Table ), the industry’s most prestigious professional organization for agents, for the 56th consecutive year. The company had 1,995 agents achieve this recognition in 2010, about one-quarter of New York Life’s active field force inthe United States . New York Life also led the industry in the number of women agents qualifying for MDRT in 2010. - New York Life is America’s leading direct marketer of life insurance through an endorsed program with
AARP geared to its membership. - New York Life is also the largest underwriter of professional association insurance programs in
the United States , covering members of more than 500 associations across the country.
Retirement Income Security
Retirement Income Security (RIS) is a leader in providing solutions to the retirement income challenge facing Americans, both in the accumulation and income phases of retirement. RIS makes available income annuities, investment annuities, the company’s family of MainStay mutual funds and long-term care insurance.
In 2010, RIS achieved new sales records in income annuities and new sales records for MainStay mutual funds. The long-term care operation generated a double digit increase in sales. While other insurers were exiting the long-term care business or raising prices, the company paid a dividend on its policies for the sixth consecutive year. New York Life is the fourth-largest seller of new individual long-term care insurance premium in
New York Life Investments*****
New York Life Investments ranks among the largest asset management firms in
In 2010, New York Life Investments also achieved company records in both gross and net sales, while expanding product offerings in key asset classes with the acquisition of
New York Life Ratings Are Exceptionally Strong
New York Life has the highest possible ratings for financial strength/claims paying ability from the four major rating agencies: Moody’s Investors Service (Aaa), Standard & Poor’s (AAA), Fitch (AAA) and A.M. Best (A++).
Visit New York Life’s Web site at www.newyorklife.comfor more information.
Note to Editors: New York Life was the number one seller of fixed immediate annuities in 2010, according to an industry source.Source:
Note: “New York Life” or “the Company,” as used throughout this release, can refer either separately to the parent company,
Please call 800-MAINSTAY (624-6782) for a prospectus. Investors are asked to consider the investment objectives, risks, and charges and expenses carefully before investing. The prospectus contains this and other information about the investment company. Please read the prospectus carefully before investing.
Securities distributed by
MainStay and MainStay Investments are registered names under which New York Life Investments does business. New York Life Investments serves as the investment manager of
*Source: Fortune 500, ranked within industries, Insurance: Life, Health (Mutual), Fortune magazine,
**Source:
***New York Life counts Agency insurance sales of single premiums at 50%.
****Source:
*****New York Life Investments is a service mark used by
New York Life Insurance Company |
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2010 Financial Highlights (in millions) |
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2010 | 2009 | ||||
Insurance Sales | $ | 3,051</td> | $ | 2,655 | |
Investment Sales | $ | 35,037 | $ | 32,848 | |
Operating Earnings1 | $ | 1,436 | $ | 1,186 | |
Operating Revenue2 | $ | 15,497 | $ | 14,383 | |
Surplus and Asset Valuation Reserve3 | $ | 16,782 | $ | 15,009 | |
Assets Under Management4 | $ | 316,085 | $ | 286,699 | |
Individual Life Insurance In Force | $ | 858,189 | $ | 816,052 | |
1 The key measure used by management to track the Company’s profitability from ongoing operations. This indicator is based on generally accepted accounting principles in the United States (GAAP) with certain adjustments we believe are appropriate as a measurement approach (non-GAAP), primarily the removal of gains or losses on investments and related adjustments. 2009 results have been revised to conform to the Company’s change in definition of this measure effective 1/1/2010. |
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2 A non-GAAP performance measure which includes primarily premium and fee income from our domestic and international insurance operations and fee income from our asset management operations. This indicator excludes net investment income and net investment gains (losses). | |||||
3 Represents statutory surplus and the asset valuation reserve (“AVR”) on a consolidated basis of the Company. | |||||
4 Represents Consolidated Domestic and International Insurance Company Statutory assets and third-party assets principally managed by New York Life Investment Management Holdings LLC, a wholly-owned subsidiary of New York Life Insurance Company. | |||||
The New York State Insurance Department recognizes only statutory accounting practices for determining and reporting the financial condition and results of operations of an insurance company. The separate statutory financial statements (including assets, liabilities, and surplus and AVR) for our insurance companies, as well as a copy of the GAAP basis consolidated financial statement and a detailed reconciliation to our non-GAAP performance measures (i.e. Operating Revenue and Operating Earnings) are available on our Web site, www.newyorklife.com. Copies of these items are also available by contacting the Secretary of New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010. |
New York Life
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