Reaches new firm highs for surplus, life insurance coverage and annuity gross sales, and dividend payout
NEW YORK--(BUSINESS WIRE)-- New York Life, America’s largest mutual life insurer, at this time introduced robust monetary outcomes for 2018, marked by report firm highs in surplus, life insurance coverage and annuity gross sales, and working earnings.
The corporate exceeded $1 trillion of particular person life insurance coverage in power in the US in 2018 and paid the very best degree of whole dividends and advantages to coverage homeowners and their beneficiaries in its historical past.
“Our excellent outcomes underscore a deal with delivering persistently robust monetary efficiency that allows us to maintain our guarantees to prospects at this time and many years to return,” stated New York Life CEO and Chairman Ted Mathas. “These outcomes are made potential by the 1000's of economic professionals and workers who present skilled steering and repair each day, and by prudently managing our numerous set of companies to make sure peace of thoughts for the thousands and thousands of households and companies who place their belief in New York Life.”
New York Life’s report surplus in 2018 represents a key contributor to the corporate’s robust monetary power scores. As soon as once more, all 4 main monetary ranking businesses gave New York Life the very best scores at present awarded to any life insurer, making the corporate one in every of solely two within the trade to attain this customary. Moreover, having introduced the most important whole dividend payout within the firm’s historical past in November 2018, New York Life is the one main U.S. mutual life insurance coverage firm to declare a report whole dividend payout in every of the final 5 years1.
The corporate’s report gross sales instantly replicate the experience delivered by its 12,000 monetary professionals in communities throughout the nation, a foundational element of New York Life’s confirmed enterprise mannequin. The corporate achieved its 22nd consecutive 12 months of progress in life insurance coverage gross sales in 2018.
“As we glance towards our 175th anniversary in 2020, our mutual construction and long-term orientation stay cornerstones of our monetary power,” Mathas added. “We'll proceed to construct on New York Life’s unmatched monetary basis and put money into improvements that ship ongoing worth to coverage homeowners.”
Monetary efficiency highlights as of December 31, 2018 embrace:
Grew surplus (together with the asset valuation reserve) to a $24.eight billion report.
Reported life insurance coverage gross sales of over $1.three billion and over $1 trillion of particular person life insurance coverage in power.
Reached a report excessive in annuity gross sales of $14.2 billion.
Reached over $2.three billion in working earnings for 2018, the very best within the firm’s historical past.
Paid over $11 billion in whole dividends and advantages to coverage homeowners.
Introduced a report whole dividend payout of $1.eight billion in 2019.
Reported a basic account steadiness of $256 billion in money and invested property, and whole property below administration of $572 billion.
New York Life Insurance coverage Firm
2018 Monetary Highlights (in thousands and thousands)
2018
2017
Surplus and Asset Valuation Reserve2
$24,814
$24,198
Insurance coverage Sales3
$1,370
$1,332
Annuity Sales4
$14,169
$13,809
Working Earnings5
$2,316
$2,058
Particular person Life Insurance coverage in Force6
$1,029,308
$992,821
Policyholder Advantages and Dividends7
$11,103
$10,633
Property Below Management8
$572,285
$585,919
About New York Life
New York Life Insurance coverage Firm (www.newyorklife.com), a Fortune 100 firm based in 1845, is the most important mutual life insurance coverage firm in the US* and one of many largest life insurers on the planet. Headquartered in New York Metropolis, New York Life’s household of corporations provides life insurance coverage, retirement earnings, investments and long-term care insurance coverage. New York Life has the very best monetary power scores at present awarded to any U.S. life insurer from all 4 of the most important credit standing businesses**.
*Based mostly on income as reported by “Fortune 500 ranked inside Industries, Insurance coverage: Life, Well being (Mutual),” Fortune journal, 6/1/18. For methodology, please see http://fortune.com/fortune500/.
**Particular person impartial ranking company commentary as of seven/30/2018: A.M. Greatest (A++), Fitch (AAA), Moody’s Buyers Service (Aaa), Customary & Poor’s (AA+).
Footnotes
1 Based mostly on publicly out there info on New York Life’s peer mutual U.S. life insurers. This peer group is comprised of main mutual U.S. insurance coverage corporations for whom life insurance coverage is the first focus and first line of enterprise, whose dividend info is made publicly out there and who seem throughout the high 200 of the Fortune 500 based mostly on income as reported by “Fortune 500 ranked inside Industries, Insurance coverage: Life, Well being (Mutual),” Fortune journal, 6/1/18.
2 Whole surplus, which incorporates the Asset Valuation Reserve (AVR), is without doubt one of the key indicators of the corporate’s long-term monetary power and stability and is offered on a consolidated foundation of the corporate. NYLIC’s statutory surplus was $21.01 billion and $20.36 billion at December 31, 2018 and 2017, respectively. Included in NYLIC’s statutory surplus is NYLIAC’s statutory surplus totaling $eight.59 billion and $9.19 billion at December 31, 2018 and 2017, respectively. AVR for NYLIC was $2.59 billion and $2.65 billion at December 31, 2018 and 2017, respectively. AVR for NYLIAC was $1.21 billion and $1.19 billion at December 31, 2018 and 2017, respectively.
Coverage homeowners can view the statutory monetary statements relevant to their respective corporations by visiting https://www.newyorklife.com/about/our-strength/.
three Insurance coverage gross sales characterize annualized first-year premiums on taking part issued complete life insurance coverage, time period life insurance coverage, common life insurance coverage, long-term care insurance coverage, and different medical health insurance merchandise. A sale is mostly counted when the preliminary premium is paid and the coverage is issued. Changes are made to normalize non-recurring premiums to align with our annualized recurring premium methodology for insurance coverage gross sales. Some examples are: single premium merchandise offered by our brokers and Superior Markets Community retail and COLI distribution channel, our community of impartial brokers and brokers, are counted at 10 %. Gross sales are generated from each home and Mexican operations.
four Whole annuity gross sales characterize premiums on our deferred annuities (each mounted and variable) and on our assured earnings annuities. Gross sales are usually acknowledged when premiums are obtained. Annuities are primarily issued by NYLIAC.
5 Working earnings is the measure used for administration functions to trace the corporate’s outcomes from ongoing operations and the underlying profitability of the enterprise. This metric is predicated on accounting ideas usually accepted in the US of America (GAAP) with sure changes we imagine are extra acceptable as a measurement method (non-GAAP). Working earnings equal GAAP web earnings adjusted for, primarily, the removing of positive aspects and losses from investments and associated changes and dividends to coverage homeowners which can be supported by capital positive aspects or earnings from different companies.
Coverage homeowners can view the GAAP-basis consolidated monetary statements and an in depth reconciliation to our non-GAAP efficiency measures by visiting: https://www.newyorklife.com/about/our-strength/.
The New York State Division of Monetary Companies (the Division) acknowledges solely statutory accounting practices for figuring out and reporting the monetary situation and outcomes of operations of an insurance coverage firm, for figuring out its solvency below the New York Insurance coverage Regulation, and for administration figuring out whether or not its monetary situation warrants the cost of a dividend to its coverage homeowners. No consideration is given by the Division to monetary statements ready in accordance with GAAP in making such determinations.
6 Particular person life insurance coverage in power is the full face quantity of particular person life insurance coverage contracts (time period, complete life and common life) excellent for NYLIC and its home insurance coverage subsidiaries at a given time. The corporate’s particular person life insurance coverage in power totaled $1029.three billion at December 31, 2018 (together with $175.three billion for NYLIAC).
7 Coverage proprietor advantages primarily embrace dying claims paid to beneficiaries and annuity funds. Dividends are funds made to eligible coverage homeowners from divisible surplus. Divisible surplus is the portion of the corporate’s whole surplus that's out there, following every year’s operations, for distribution within the type of dividends. Dividends are usually not assured. Annually the board of administrators votes on the quantity and allocation of the divisible surplus. Coverage proprietor advantages and dividends replicate the consolidated outcomes of NYLIC and its home insurance coverage subsidiaries. Intercompany transactions have been eradicated in consolidation. NYLIC’s coverage proprietor advantages and dividends had been $7.47 billion and $7.38 billion for the 12 months ended December 31, 2018 and 2017, respectively. NYLIAC’s coverage proprietor advantages had been $three.68 billion and $three.26 billion for the 12 months ended December 31, 2018 and 2017, respectively.
eight Property below administration consist of money and invested property and separate account property of the corporate’s home and worldwide insurance coverage operations, and property the corporate manages for third-party buyers, together with mutual funds, individually managed accounts, retirement plans and property below administration. The corporate’s basic account funding portfolio totaled $256.10 billion as of
December 31, 2018 (together with $105.04 billion invested property of NYLIAC). As of December 31, 2018, whole property equaled $311.46 billion (together with $153.46 billion whole property of NYLIAC). Whole liabilities, excluding the AVR, equaled $286.63 billion (together with $143.66 billion whole liabilities of NYLIAC). See Be aware 2 for whole surplus.
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