New York Life Continues Strong Sales Growth Through Third Quarter Led by 11% Growth of Whole Life Insurance
Company Increases 2013 Dividend Payout by $100 Million, an 8% Rise
NEW YORK, N.Y., November 19, 2012 – New York Life, America’s largest mutual life insurer, today announced very strong third quarter gains in sales of life insurance, annuities and mutual funds, as well as a solid increase in agent new hires in the first nine months of 2012. New York Life agents recorded an increase of 11% in sales of recurring premium whole life insurance over the third quarter of 2011.
The company also announced that its dividend payout to participating policyholders will increase by $100 million in 2013, an 8% rise over the 2012 payout. Even in the face of unprecedented low interest rates, the company had strong operating performance and was able to enhance both its surplus and dividend through the divestiture of certain international businesses. The company also has had better than expected persistency as policyholders maintain their policies in force despite the challenging economy, which speaks to New York Life’s top ratings for financial strength.
“The continued strength of whole life insurance sales speaks to the value that Americans put on safety and security when it comes to planning for their loved ones. During these times of economic unsteadiness, the company’s financial strength and stability offers the peace of mind many are seeking,” said Executive Vice President Mark Pfaff.
In addition to growth in life insurance, the company’s annuity sales increased 16% and mutual fund sales increased 10% compared with the third quarter 2011. Annuity sales in the quarter were driven by income annuity sales, which are up 17%, and variable annuity sales, up 5% compared with the same period a year ago. Mutual fund sales are being driven by consistent investment performance from the company’s investment boutiques in both income oriented and capital appreciation funds, which remain in high demand from customers.
New York Life has recorded a 4% increase in agent recruitment over the same period in 2011, with 2,396 new agents hired through September 30, 2012. The full year 2012 goal for agent recruitment is 3,700. In addition, 79% of the new agent hires in 2012 have been either women or individuals representing cultural markets.
“As our country’s population changes, so does New York Life’s career agent force, with more women and minorities representing New York Life today than at any time in our history,” Mr. Pfaff said.
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 Web site at www.newyorklife.com for more information.
*Based on revenue as reported by “Fortune 500, Ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, May 21, 2011. See http://money.cnn.com/magazines/fortune/fortune500/2011/faq/ for methodology.
**Source: Third Party Ratings Reports as of 6/22/12.
***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.