• Operating Revenue Rises 11% to $13 Billion
• Life Insurance Sales in U.S. Soar 41%; International Insurance Sales Up 31%
• Investment Management Sales Up 20%

NEW YORK, March 11, 2002 — For the second consecutive year, New York Life Insurance Company reported net income of more than one billion dollars. Net income in 2001 was $1.086 billion, compared with $1.205 billion in 2000. The 2001 results include realized capital losses of $56 million, compared with $387 million in realized capital gains in 2000.

With its life insurance sales up 41% in the United States, New York Life achieved the number one rank in market share for new life premium in 2001, according to the association that compiles market data from among the 84 largest insurers.* In annuities, New York Life's total annuity business grew more than $250 million in a year of declining annuity sales in the industry. International sales increased a robust 31% in 2001, and investment management sales rose 20% in a volatile year in that industry.

Operating revenue — comprised of premiums and fees — increased 11% in 2001 to $13.0 billion, compared with $11.7 billion in the prior year. The company's surplus and investment reserves — the funds that finance growth and protect policyholders — grew to $8.741 billion, representing one of the strongest capital positions in the industry.

*Source: LIMRA International. Sales survey based on new periodic premium, plus 100% of single premium.

Sy Sternberg, New York Life's chairman, president and chief executive officer, said, "New York Life's success is primarily a result of two things, a clear strategic focus and a great team of employees and agents. During the bull market, our focus stayed on life insurance while most of our competitors diverted their attention to other financial services. That focus is paying off. Furthermore, our decision four years ago to focus on top-line revenue growth through emerging international markets is paying off. Now more than 25 percent of New York Life's total insurance sales are derived from nine countries outside the United States. And finally, our decision to remain a mutual is proving to be a competitive advantage because a mutual can best deliver on the promise to policyholders of long-term safety and stability."

Life and Annuity, Special Markets Businesses Continue Solid Growth

The company's Life and Annuity business sells a full array of products including individual, bank- and corporate-owned life insurance, as well as a variety of immediate and deferred, variable and fixed annuities. In 2001, the Life and Annuity business achieved exceptional results with operating revenue of $10.2 billion, an increase of 12% over 2000. Sales of life insurance products soared 41% and annuity products gained 6%. New York Life's agency system increased sales of life products for the fifth consecutive year to $707 million in 2001, an increase of 17% over 2000. In 2001, New York Life extended its lead in the number of agents qualifying for the Million Dollar Round Table, the industry's most prestigious agent organization for sales and customer service. This marked the 47th consecutive year that the company led the industry in qualifying agents, a validation of the strength of our agency system.

In 2001, Group Membership maintained its leadership position in the association marketplace and was the largest underwriter of professional association life insurance programs in the U.S. New York Life covers 775,000 lives in 450 associations across the country. The company's AARP Operation, the exclusive provider of life insurance products to members of the American Association of Retired Persons, insures over 660,000 members with operating revenue reaching $262 million, a 14% increase in 2001. Through its relationship with AARP, New York Life is the largest direct marketer of life insurance in the United States. Long-Term Care insurance business operating revenue rose 18% to $60 million on sales production by the agency force.

Investment Management Business Continues to Grow

New York Life's investment management business, New York Life Investment Management LLC (NYLIM), is among the 25 largest asset management firms in the United States. Its assets under management reached $152.9 billion in 2001, an increase of 32% over 2000. This increase in assets under management was aided by the acquisition of McMorgan & Co., a company at the forefront of providing investment management services to the multi-employer benefit plan marketplace. NYLIM recorded operating revenue of $632 million in 2001, comparable to the prior year's results despite the volatile stock market last year. In this challenging environment, sales climbed to $16.4 billion, up 20% over 2000. NYLIM has a team of investment professionals focused on virtually every sector of the capital markets, and includes:

• MainStay Funds, Eclipse Funds and McMorgan Funds, mutual funds for individual and retirement plan investors.
• New York Life Investment Management Institutional Funds, mutual funds for institutional cash management.
• Guaranteed Products, a premier provider of Guaranteed Investment Products.
• MacKay Shields LLC and McMorgan & Co., institutional money management firms.
• New York Life Capital Partners, a private equity investment business.
• NYLIM Real Estate, a provider of mortgage and equity real estate capital.
• NYLIM Retirement Plan Services, offering bundled defined benefit and defined contribution plans.
• Madison Capital Funding LLC, a specialty finance company.
• New York Life Trust Company FSB, a federally chartered trust company.

International Operations — Significant Growth, Increasing Contribution to Results

New York Life International LLC produced excellent results in 2001 in the nine countries in which it operates. In fact, International now accounts for more than 25% of New York Life's total insurance sales as it continues to experience strong growth in its existing markets and expands its reach into new, high-growth emerging markets.

Sales from International insurance operations were up 31% from the previous year. Operating revenue increased 13% to reach $1.4 billion, up from $1.2 billion in 2000. International's wholly-owned life insurance operation in Mexico, Seguros Monterrey New York Life, was a clear market leader in individual life sales in 2001. The company's joint venture in India, Max New York Life, made great strides in 2001. In under a year Max New York Life launched operations in nine cities and established itself as one of the top three life insurers amidst formidable competition in this burgeoning market. In December 2001, New York Life was authorized to form a joint venture in China, and the Haier Group, a major conglomerate, is now its local partner. Insurance sales in China are expected to commence by year-end. New York Life International now has operations in Argentina, Hong Kong, India, Mexico, Philippines, South Korea, Thailand, and Taiwan, and representative offices in Beijing, Shanghai, Guangzhou and Chengdu in the People's Republic of China, and Hanoi, Viet Nam.

New York Life Insurance Company, a Fortune 100 company, is the largest mutual life insurance company in the United States. Founded in 1845 and headquartered in New York City, New York Life and its affiliates offer life insurance, annuities and long term care insurance. Through New York Life Investment Management, New York Life's affiliates provide institutional asset management, retirement plan and trust services and an array of securities products and services such as institutional and retail mutual funds.

Contacts:

Bill Werfelman
New York Life
(212) 576-5385

Karen Finkston Payes
New York Life
(212) 576-5624

 Rate This
Rating: 0/0 (0 votes cast)

 Be the first to Comment