New York Life Continues Strong Life Insurance Sales Through Second Quarter
Sales of Income Annuities and Mutual Funds Also Very Strong
NEW YORK, August 21, 2013—New York Life, America ’s largest mutual life insurer, today announced continued strong sales of life insurance, income annuities and mutual funds through the second quarter of 2013.
The company ’s insurance sales advanced strongly with individual recurring premium life insurance sales through agents up 18 percent compared with the first half of 2012. The solid sales growth of recurring life insurance products came from the company ’s suite of permanent products—whole life, universal life and variable universal life.* In addition, the number of life insurance policies sold through agents continued to rise, up four percent through the second quarter of 2013, indicating strong interest in protection products. The company is also seeing exceptional growth in various cultural markets, with 46 percent of the company ’s new life insurance policies produced by agents serving the African-American, Chinese, Hispanic, Korean, South Asian, and Vietnamese markets in the United States.
“As the economy continues its unsteadiness, Americans are ensuring that their families ’ financial future is secure. The sales figures show that Americans are taking action when it comes to protecting their families with permanent products like whole life and universal life. Our agent force of more than 12,250 continues to educate families on the value of having a solid financial foundation upon which to help build their financial future, while at the same time giving policyholders a flexible way to meet their ever-changing financial demands, ” said Mark Pfaff, executive vice president in charge of Agency.
New York Life remains the leader in sales of fixed immediate annuities, with 32 percent of the market for first quarter 2013, and is the leader in sales of deferred income annuities, with 46 percent of the market for first quarter 2013, according to an industry source.** The company ’s sales of these guaranteed income annuity products, which includes single premium immediate annuities and the company ’s deferred income annuity, Guaranteed Future Income Annuity, increased 13 percent in the first half over the same time period in 2012.
In addition, sales through New York Life Direct increased by 8 percent over the same period last year. New York Life Direct includes the AARP Operation, which is the exclusive provider of life insurance and lifetime income annuities to AARP members. The company recently announced that AARP extended its agreement through 2022 for New York Life to serve as the exclusive provider of life insurance products to AARP ’s 37 million members. New York Life has been offering lifetime income annuities to AARP members since 2006.
Sales of New York Life ’s MainStay family of mutual funds increased by an extremely strong 41 percent to $13.69 billion through the second quarter compared to the first half a year ago. The company ’s exceptionally strong mutual fund sales are being driven by consistent investment performance from the company ’s investment boutiques in funds seeking capital appreciation as well as income oriented funds, which remain in high demand from customers.
New York Life ’s operations in Mexico, Seguros Monterrey New York Life, had a strong first half with 13 percent sales growth compared to the same period last year.
New York Life will hire more than 3,500 agents in the United States in 2013, having hired approximately 1,600 new agents through the second quarter. New York Life is on pace to make this year the seventh consecutive year the company has hired more than 3,200 agents.
New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States*** and one of the largest life insurers in the world. New York Life has the highest possible financial strength ratings currently awarded to any life insurer from all four of the major credit rating agencies: A.M. Best (A++), Fitch (AAA), Moody ’s Investors Service (Aaa), Standard & Poor ’s (AA+).**** Headquartered in New York City, New York Life ’s family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life Investments***** provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as retail mutual funds. Please visit New York Life ’s website at www.newyorklife.com for more information.
*Variable products are offered through properly licensed Registered Representatives of NYLIFE Securities LLC (member FINRA/SIPC), a Licensed Insurance Agency and a wholly owned subsidiary of New York Life Insurance Company.
**Source: LIMRA International, U.S. Individual Annuity Sales Survey, Participants Report, Fixed Immediates and Deferred Income Annuities, First Quarter 2013 results. (Fixed Immediates include Fixed Period Annuities.) Annuities are issued by New York Life Insurance and Annuity Corporation, a wholly owned subsidiary of New York Life Insurance Company.
***Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual), ” Fortune magazine, May 20, 2013. See http://money.cnn.com/magazines/fortune/fortune500/2013/faq/?iid=F500_sp_method for methodology.
****Individual independent rating agency commentary as of 8/1/13.
*****New York Life Investments is a service mark used by New York Life Investment Management Holdings LLC and its subsidiary, New York Life Investment Management LLC. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.