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NEW YORK LIFE INSURANCE COMPANY

New York, New York

A++

Ultimate Parent: New York Life Insurance Company

New York Life benefits from the competitive advantages associated with its core career agency force, which has led the industry in Million Dollar Round Table membership for 57 consecutive years. The agency channel has contributed to the group's strong persistency and prominent market presence in individual life with particular strength in the middle market, while delivering strong sales growth. Amid an industry-wide double-digit decline in life insurance sales in 2009, New York Life experienced a year-over-year increase in its U.S. life sales, and sales growth again outpaced the industry in 2010 and 2011. With its sizable in-force block of traditional life insurance and conservative product portfolio, New York Life has one of the more creditworthy liability profiles in the industry. The strong fundamentals within New York Life's core domestic individual life operation continue to be the foundation of the group's operating performance, which supports the group's superior risk-adjusted and absolute capitalization levels. A.M. Best also notes that New York Life possesses some financial flexibility to maintain its strong risk-based capital position through the management of its policyholder dividend scale. Finally, A.M. Best views New York Life's mutual form of ownership as a positive rating factor. As a mutual insurer, New York Life is able to manage its businesses with a long-term perspective, as well as a singular focus on providing value to its policyholders. Overall, A.M. Best believes New York Life's future investment losses will be lower than the industry average (as a percentage of capital and surplus) and that statutory earnings will exceed expected losses. While A.M. Best believes that New York Life's investment management capabilities are strong, the potential still exists for higher than normal, but manageable, credit losses within the group's general account investment portfolio as the group maintains significant holdings in public/private corporate bonds and structured securities.

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NEW YORK LIFE INSURANCE COMPANY

51 Madison Avenue New York, NY 10010 Web: www.newyorklife.com Tel: 212-576-7000 AMB#: 006820 Ultimate Parent#: 006820 Fax: 212-576-7317 NAIC#: 66915 FEIN#: 13-5582869

BEST'S CREDIT RATING

Best's Financial Strength Rating: A++ Outlook: Stable Best's Financial Size Category: XV RATING RATIONALE The following text is derived from the report of New York Life Group. Rating Rationale: The ratings of New York Life Group (New York Life), which include New York Life Insurance Company and its insurance subsidiaries, reflect the group's market position among the leaders in the U.S. life insurance industry, its highly productive career agency force and its superior risk-adjusted capitalization. The ratings also consider New York Life's favorable liability profile, stable operating earnings and commitment to mutuality. Partially offsetting these positive factors are the potential for higher than normal, but manageable, credit losses, albeit declined, within the group's general account investment portfolio, its relatively large exposure to interest rate risk and the intense competition the group faces in its core individual life and asset accumulation businesses.

© 2012 A.M. Best Company, Oldwick, NJ 08858

Printed July 30, 2012

In addition, New York Life has approximately $17.1 billion (representing roughly 95% times capital and surplus and AVR) of direct exposure to whole commercial mortgage loans, and the generally negative outlook for commercial real estate suggests the potential for impairments. However, A.M. Best notes that the commercial mortgage portfolio maintains below average exposure to properties in the higher loan-to-value ratio and lower debt service coverage ratio bands. A.M. Best also notes that New York Life maintains a relatively high exposure to interest rate risk related to its blocks of interest-sensitive life and annuity reserves, although this risk is actively managed through hedging and other techniques. Lastly, similar to all of its market-leading peers in the domestic individual life and annuity marketplaces, New York Life continues to face intense competition and will be challenged to maintain its market position and sales momentum over the long term. While New York Life continues to maintain A.M. Best's highest available ratings, a potential negative rating action could result from a significant increase in realized investment losses, a shift towards a greater weighting of interest-sensitive liabilities, and/or a material decline in risk-adjusted capitalization.

KEY FINANCIAL INDICATORS ($000) Total Capital Capital Condit'l Net Net Surplus Reserve Premiums Invest Funds Funds Written Income

11,959,230 11,793,474 13,686,268 14,716,846 15,128,949 2,256,960 648,853 831,822 1,477,334 2,070,302 9,751,463 11,285,898 11,161,524 12,473,513 14,107,160 5,594,843 5,148,919 5,035,365 4,860,580 4,865,404

Year

2007 2008 2009 2010 2011

Assets

122,753,467 117,305,625 117,835,521 122,007,530 130,685,773

Net Income

856,435 -564,359 455,267 525,557 262,613

CORPORATE OVERVIEW New York Life Insurance Company (NYLIC), a mutual life insurer, and its subsidiaries (collectively referred to as NYL), offers a wide range of insurance and investment products and services including life, long term care (LTC) insurance, annuities, pension products, mutual funds and other investments and investment advisory services. NYL maintains strong market positions in the life insurance, annuities and executive benefits markets for middle and upper income individuals, as well as institutions of all sizes throughout the United States and abroad. NYL is one of the largest ordinary life writers in the country. The company's vast career agency distribution network, with a wide geographic reach, helped establish this strong competitive position, which has been enhanced in recent years by new distribution sources. NYL includes New York Life Insurance and Annuity Corporation (NYLIAC), a wholly owned subsidiary through which NYL offers variable and interest-sensitive products, and NYLIFE Insurance Company of Arizona (NYLAZ). The company intends to maintain its status as a mutual company in order to remain uniquely aligned with its customers, with sufficient capital available to support its growth strategies. NYL's businesses are managed under two primary segments: Insurance Group and Investments Group.

BUSINESS PROFILE The following text is derived from the report of New York Life Group. In 2012, NYL reorganized into two major business units: Insurance Group and Investments Group. Businesses that operate within the Insurance Group include: Domestic Life, Long Term Care Insurance, New York Life Direct, Group Membership Association and Mexico. The NYL Investments Group is focused around the following key businesses: General Account Investment Management; Investment Annuities; Retail Mutual Funds; Investment Management Boutiques; Guaranteed Products; Retirement Solutions. INSURANCE GROUP NYL is one of the leading writers of individual life insurance in the U.S. and offers a broad array of participating whole life, survivorship whole life, fixed and variable universal life, fixed and variable survivorship universal life, term life insurance, and LTC insurance. The company also offers corporate-owned life insurance (COLI) and bank-owned life insurance (BOLI) opportunistically. NYL markets its traditional life insurance products primarily to middle and also to upper income individuals primarily through its large career agency system. This nationwide system is one of NYL's most valuable strengths, typically producing over two thirds of total life insurance sales. Approximately one-fourth (2,066) of active field agents in the U.S. are members of the "Million-Dollar Round Table" (MDRT), demonstrating their success in meeting high standards for productivity and professionalism. In addition to the wide geographic reach, the system has a strong presence in various cultural and women's markets. To increase productivity through the career agency channel, NYL has introduced innovative new products and technology-aided support and training. Life and annuity sales through this channel have grown steadily. LTC insurance products are also sold on an individual basis through NYL's career agency force. NYL brings a strong pricing and underwriting discipline to this market as evidenced by pricing that, while higher than some other carriers, better aligns with the risk in the business. The Advanced Markets Network (AMN) provides an additional distribution channel for the sale of life insurance to high net worth individuals and corporate and bank markets through high-end independent agents and insurance brokers. This channel distributes products that are often customized for the needs of these markets. New York Life Direct is responsible for the AARP Life Insurance Program and AARP Lifetime Income Program, which market group life insurance products and guaranteed lifetime immediate income annuities to AARP members. Through an exclusive marketing arrangement with AARP, NYL directly markets life insurance and fixed immediate annuities to the association's 37 million members. By virtue of this relationship, NYL is the largest direct marketer of life insurance in the U.S., insuring over 1.9 million AARP members with over $31 billion of life insurance inforce. NYL has increased its sales in this line, while maintaining strong persistency, favorable mortality and expense management. In late 2006, NYL began to directly market fixed immediate annuity products (AARP Lifetime Income Program) to its members. Additionally, NYL's direct marketing expertise is utilized to generate leads for products sold through

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© 2012 A.M. Best Company, Oldwick, NJ 08858

Printed July 30, 2012

the career agency force. The extended term of the AARP contract, along with the addition of the AARP Lifetime Income Program, provides strong growth potential in this line. Group Membership Association sells life insurance and related products to members of professional associations through specialized brokers. Group Membership Association underwrites and administers Group Life, Accidental Death and Dismemberment (AD&D) and Disability Income insurance programs to large professional associations. The portfolio also includes an in-force block of major medical business. Serving the members of more than 600 associations, Group Membership Association is the leading provider of life insurance programs to professional associations. Mexico is NYL's strategic presence in international markets. The company has recently exited China, Hong Kong, Thailand and South Korea and has reached an agreement to exit India. The largest remaining subsidiary, Seguros Monterrey New York Life, S.A. (SM), was acquired in 2000 and ranks among top insurers providing individual life insurance in the Mexican marketplace. NYL also maintains an operation in Taiwan. INVESTMENTS GROUP With the increasing market demand for retirement solutions and asset management services, along with low capital requirements and potential for high profit margins, investment management represents an attractive business for NYL. The Investments Group leverages its investment management expertise, its established multi-channel distribution network and its diversified customer base to expand institutional investment management services. As of March 31, 2012, the Investments Group held over $335 billion of assets under management. General Account Investment Management This business is primarily focused on delivering superior riskadjusted performance for the General account of New York Life. This is done through the company's Fixed Income and Real Estate groups. In addition to managing the general account assets of the New York Life insurance companies, General Account Investment Management business generates third party fee revenue predominantly by structuring and managing collateralized debt transactions through a boutique, Madison Capital Funding. Madison Capital Funding provides financing solutions primarily to private equity backed middle market companies in the form of senior loans, mezzanine financing and equity co-investment. Investment Annuities NYL's Investment Annuities include fixed and variable deferred annuities, structured settlements and fixed period annuities. Other than structured settlements, Investment Annuities are sold through NYLIAC. Variable products are offered exclusively through NYL agents while fixed annuities are sold through banks and other financial institutions in addition to the core agency channel. For more than half of new variable annuity premiums, fees are based on a percentage of premium versus the common industry practice of a percentage of assets. This approach provides greater earnings stability for the company, as fee revenue is less sensitive to equity market downturns. Guaranteed Lifetime Income, GLI, products are immediate fixed annuities that are sold through NYLIAC. The company's strong agency and bank distribution performance has led to record sales of Guaranteed Lifetime Income products for several years.

© 2012 A.M. Best Company, Oldwick, NJ 08858

Mutual Funds NYL's Mutual Funds are sold through the company's MainStay fund brand, which offers over 50 mutual funds. MainStay is among the fastest growing fund complexes, ranked by Barron's for four consecutive years among the top fund families for long term investment performance. The funds leverage the expertise of NYL's boutiques to provide investment solutions across a full array of asset classes. The products are sold through a substantial Third Party Distribution group who market through leading financial intermediaries in 3 primary channels: national / regional broker dealers, independents and banks. NYL Agents are another key sales channel as well as New York Life Retirement Solutions. Institutional Investment Boutiques Through its multiple boutique investment structure, NYL Investments offers a broad array of investment capabilities and strategies managed for the benefit of institutional and individual clients. Guaranteed Products Guaranteed Products (GP) provides a full array of products to both the qualified and non-qualified markets via guaranteed interest contracts and funding agreement-backed note programs to serve the needs of institutional investors (including plan sponsors, pension funds, and institutional fixed income managers) seeking stable returns and superior credit quality. The business is managed opportunistically to increase profitability by leveraging New York Life's strong balance sheet and high credit ratings to raise liabilities at an attractive cost of funding. Retirement Solutions New York Life Retirement Solutions provides a comprehensive array of bundled retirement programs and investment solutions to defined benefit and defined contribution plans. Clients include corporations, governments, collective bargaining units and non-profit organizations as well as the many individual participants therein. Distribution is through intermediaries including benefits consultants, financial advisors and New York Life's agent field force. Additionally, Retirement Solutions distributes Mainstay Funds through competing bundled retirement platforms and key retirement advisors through the Defined Contribution Investment Only team and provides custom stable value solutions to large corporate plan sponsors and leading stable value managers through its Stable Value Investment effort. OPERATING PERFORMANCE The following text is derived from the report of New York Life Group. Operating Results: As a mutual company with a long-term focus and a large block of ordinary life insurance in force, NYL's new business development utilizes a strict pricing discipline in order to deliver stable profits. The investment in future business results is a strain on current statutory earnings, but better positions the company for future profitability. On a consolidated GAAP basis, NYL reported strong operating earnings in 2011 of $1,437 million, which represented a 2% increase over the $1,407 million recorded in 2010. NYL's GAAP net income was strong at $1,281 million in 2011, albeit declined from the $1,655 million in 2010.

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Printed July 30, 2012

Insurance sales increased 4% in 2011 led by strong sales of life insurance in the U.S. through its agency channel. Investment sales increased 35% driven from growth in sales of institutional separate managed accounts, retail mutual funds and stable value products for retirement planning providers. On a statutory basis, NYL reported combined pre-tax net operating gains of $1,233 million in 2011 compared to the $1,544 million reported in 2010. Primary drivers of the decline include a $129 million reserve increase in 2011 for universal life policies with a No Lapse Guarantee provision, representing a stricter interpretation of Actuarial Guideline 38 and a $75 million charge related to unreported claims that were uncovered as a result of incorporating a quarterly review of the Social Security Death Master Index into NYL's claims process. Consolidated net income was $557 million in 2011 compared to $1,091 million in 2010. The decrease resulted from a lower tax liability in 2010 due to a $550M contribution into the Company's pension plan and the aforementioned reserve increase in 2011 for universal life policies with No Lapse Guarantee provisions. BALANCE SHEET STRENGTH The following text is derived from the report of New York Life Group. Capitalization: NYL maintains a superior capital position relative to its overall insurance and investment risks. For year-end 2011, NYL reported its highest-ever statutory surplus and AVR of $17.9 billion, increasing by 6% from the prior year and well above where it was before the financial crisis hit. In addition to its recent organic surplus growth, a portion of the 2009 increase was attributable to $1 billion of 6.75% surplus notes issued in October 2009. A.M. Best views surplus notes as a lower quality of capital than retained earnings or paid-in capital as surplus notes are debt instruments that have the expectation of repayment. Therefore, A.M. Best notes that NYL's quality of capital is negatively impacted as a result of the surplus note issuance. Surplus notes represented 13.2% of capital and surplus as of year-end 2011 compared to 8.4% at year-end 2008. However, New York Life's adjusted GAAP financial leverage of 12.3% (excluding accumulated other comprehensive income along with secured and non-recourse debt) is within A.M. Best's guidelines for the company's current ratings. Also, GAAP interest coverage is very strong at almost 12 times. NYL has more than ample resources for funding planned growth in the near term with the ability to take advantage of growth opportunities. The company also maintains flexibility in managing surplus accumulation through its ability to adjust its policyholder dividend scale. The following text is derived from the report of New York Life Group. Liquidity: With $174.9 billion in invested assets on a consolidated basis at year-end 2011, NYL maintains an investment portfolio that is very well diversified and of high quality. Based on past performance and current positions of the portfolio, A.M. Best anticipates that realized losses will be manageable. However, holdings in structured securities expose the portfolio to potentially higher realized losses and impairments than in the past, given the current investment environment.

Bonds represent roughly three quarters of invested assets. NYL's large corporate bond portfolio (approximately 42% of invested assets) is well diversified by sector and has significantly below average exposure to financial institutions. Investments in non-agency mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities totaled approximately $23.4 billion at year-end 2011. Given the recent economic environment, these asset classes have the potential to experience higher defaults and delinquencies; however, NYL's portfolio has performed very well with losses well below industry averages in these asset classes. NYL's exposure to public/private equity and mezzanine debt (3.4% of invested assets) represents additional risk to the investment portfolio. Historically, NYL has maintained a lower exposure to mortgage loans than its peers, comprising 10% of invested assets. A.M. Best considers the company to be very conservative in managing this asset class and notes NYL's low level of underperforming assets. Nevertheless, A.M. Best expects defaults to rise and is most cautious on retail, hotel and office properties within close proximity to distressed housing markets and/or labor markets where unemployment is high. NYL is well positioned in most of these areas with below industry average exposure to retail and virtually no exposure to hotel properties. With the predominance of reserves in participating ordinary life insurance, a very stable line of business, and a strong surplus position, NYL has extremely strong liquidity. Sources of liquidity of over $84 billion includes NYL's portfolio of liquid assets and other funding sources including the company's facility for short-term borrowing arranged through New York Life Capital Corporation (NYLCC). NYLCC serves as a conduit for NYL to the credits markets and is authorized to issue up to $2 billion of commercial paper. For back-up liquidity needs, NYL maintains $4.3 billion of available borrowing capacity through the Federal Home Loan Bank of NY, and has a $1.0 billion revolving credit facility with a consortium of banks. To date, NYL has not utilized this facility. MANAGEMENT Officers: Chairman of the Board, President and Chief Executive Officer, Theodore A. Mathas; Executive Vice President and Chief Financial Officer, Michael E. Sproule; Executive Vice President and Chief Investment Officer, John Y. Kim; Executive Vice President and Chief Administrative Officer, Frank M. Boccio; Executive Vice President, General Counsel and Chief Legal Officer, Sheila K. Davidson; Executive Vice Presidents, Christopher O. Blunt (Retirement Income Security), Richard L. Mucci (NYL Enterprises), Mark W. Pfaff (Agency); Senior Vice President and Chief Information Officer, Susan B. Ericksen; Senior Vice President and Secretary, Susan A. Thrope; Senior Vice President and Chief Actuary, Joel M. Steinberg; Senior Vice President and General Auditor, Mark E. Arning; Senior Vice President and Controller, John T. Fleurant (Finance); Senior Vice President and Chief Human Resource Officer, Barry A. Schub; Senior Vice Presidents, Solomon Goldfinger (Senior Advisor to CEO), George Nichols, III (Office of Government Affairs); First Vice President and Treasurer, Richard J. Witterschein.

© 2012 A.M. Best Company, Oldwick, NJ 08858

Printed July 30, 2012

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Directors: Betty C. Alewine, Ralph de la Vega, Mark L. Feidler, Kent B. Foster, Christina A. Gold, Conrad K. Harper, Theodore A. Mathas (Chairman), S. Thomas Moser, Joseph W. Prueher, Thomas C. Schievelbein, William G. Walter. TERRITORY The company is licensed in the District of Columbia, Guam, Puerto Rico, U.S. Virgin Islands and all states. The company also is licensed in Canada.

Balance Sheet Assets ($000)

12/31/2011 *Total bonds . . . . . . . . . . . . . . . . . . . . . . . . . $ 68,137,822 *Total preferred stocks . . . . . . . . . . . . . . . . 65,917 *Total common stocks . . . . . . . . . . . . . . . . . 9,014,914 Mortgage loans . . . . . . . . . . . . . . . . . . . . . . 10,101,770 Real estate . . . . . . . . . . . . . . . . . . . . . . . . . . 410,107 Contract loans . . . . . . . . . . . . . . . . . . . . . . . 8,191,053 Cash & short-term inv . . . . . . . . . . . . . . . . . 2,594,753 Other invested assets . . . . . . . . . . . . . . . . . 8,320,698 Funds held or dep with reins . . . . . . . . . . . . 4,748,657 Prems and consids due . . . . . . . . . . . . . . . 1,571,099 Accrued invest income . . . . . . . . . . . . . . . . 1,034,695 Other assets . . . . . . . . . . . . . . . . . . . . . . . . 6,551,137 Separate account bus . . . . . . . . . . . . . . . . . 9,943,150 Assets . . . . . . . . . . . . . . . . . . . . . . . . . . $130,685,773

Liabilities ($000)

Net policy reserves . . . . . . . . . . . . . . . . . . . $ 79,544,929 Policy claims . . . . . . . . . . . . . . . . . . . . . . . . 706,378 Deposit type contracts . . . . . . . . . . . . . . . . 13,304,991 Interest maint reserve . . . . . . . . . . . . . . . . . 374,000 Comm taxes expenses . . . . . . . . . . . . . . . . 1,046,269 Asset val reserve . . . . . . . . . . . . . . . . . . . . . 2,070,302 Contingency reserve . . . . . . . . . . . . . . . . . . 410,489 Other liabilities . . . . . . . . . . . . . . . . . . . . . . . 8,159,221 Separate account bus . . . . . . . . . . . . . . . . . 9,940,247 Total Liabilities . . . . . . . . . . . . . . . . . . . . $115,556,824 Surplus notes . . . . . . . . . . . . . . . . . . . . . . . 1,990,817 Unassigned surplus . . . . . . . . . . . . . . . . . . . 12,437,562 Other surplus . . . . . . . . . . . . . . . . . . . . . . . . 700,570 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . $130,685,773

*Securities are reported on the bases prescribed by the National Association of Insurance Commissioners.

© 2012 A.M. Best Company, Oldwick, NJ 08858

Printed July 30, 2012

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Why is this Best's® Rating Report important to you?

A Rating Report from the A.M. Best Company represents an independent opinion from the leading provider of insurer ratings of a company's financial strength and ability to meet its obligations to policyholders. The A.M. Best Company is the oldest, most experienced rating agency in the world and has been reporting on the financial condition of insurance companies since 1899. The Best's Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. The rating is not assigned to specific insurance policies or contracts and does not address any other risk, including, but not limited to, an insurer's claims-payment policies or procedures; the ability of an insurer to dispute or deny claims payment on grounds of misrepresentation or fraud; or any specific liability contractually borne by the policy or contract holder. A Best's Financial Strength Rating is not a recommendation to purchase, hold or terminate any insurance policy, contract or any other financial obligation issued by an insurer, nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser. The company information appearing in this pamphlet is an extract from the complete company report prepared by the A.M. Best Company. A Best's Financial Strength Rating is assigned after a comprehensive quantitative and qualitative evaluation of a company's balance sheet strength, operating performance and business profile.

© 2012 A.M. Best Company, Oldwick, NJ 08858

Best's Financial Strength Ratings are assigned according to the following scale: Secure Best's Financial Strength Ratings A++ and A+ . . . . . . . . . . . . . . . . . . . . . . . . . . .Superior A and A- . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Excellent B++ and B+ . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Good Vulnerable Best's Financial Strength Ratings B and B- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Fair C++ and C+ . . . . . . . . . . . . . . . . . . . . . . . . . .Marginal C and C- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Weak D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Poor E . . . . . . . . . . . . . . . . . .Under Regulatory Supervision F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .In Liquidation S . . . . . . . . . . . . . . . . . . . . . . . . . . . .Rating Suspended For the latest Best's Financial Strength Ratings and AMB Credit Reports visit the A.M. Best web site at www.ambest.com. You may also obtain AMB Credit Reports by calling our Customer Service department at +1-908-4392200, ext. 5742. To expedite your request, please provide the company's identification number (AMB #).

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Printed July 30, 2012

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