Joint Venture Company, Haier New York Life, Brings America's Largest Mutual Life Insurer to China's Commercial Capital

NEW YORK, N.Y., December 20, 2002 — New York Life Insurance Company today announced it had launched operations of its joint venture life insurance company, Haier New York Life, in Shanghai, China.

Haier New York Life officially launched operations with the sale of its first policy during a ceremony today in Shanghai. The policy was presented jointly by Haier Chairman, Zhang Ruimin, and New York Life International Chairman and CEO, Gary Benanav. Also in attendance at the ceremony were Yang Xiao Du, Vice-Mayor of Shanghai, Zhou Yanli, Director of China Insurance Regulatory Commission - Shanghai office, and Douglas Spelman, United States Consul General in Shanghai, as well as other senior managers from New York Life and Haier.

Commenting from New York, company Chairman and CEO Sy Sternberg said, "New York Life is extremely proud to establish itself in the People's Republic of China. This is one of the most significant developments to date in New York Life's strategy to bring its life insurance expertise to international markets and become a major force in the global life insurance industry."

"This day marks the culmination of a vision begun several years ago when New York Life decided to enter the China market," said Gary Benanav, Chairman & CEO of New York Life International. "It also marks the beginning of the next phase of our vision — the creation of a successful company combining the strengths of two extraordinary organizations, Haier and New York Life. In Haier, we have found the ideal partner, one that shares our commitment to excellence and customer service. It is among the most-admired companies in China, with a loyal customer base throughout the country and an exceptional distribution network. We are extremely pleased to have a company of Haier's caliber as our Chinese partner."

"To Haier, a company committed to creating better life for people, entering into the insurance industry is not just another important step in the strategic integration of the company's manufacturing and financial service businesses, it also will provide Haier's appliance customers with value-added service in the finance area," said Haier Chairman Zhang Ruimin. "Both Haier and New York Life have found the best partner at the best time. This cooperation will leverage the advantages from both sides and achieve a win-win situation."

Haier New York Life Launches in Record Time
This announcement comes only one year after New York Life received government approval to begin setting up a joint venture life insurer, a faster completion, from approval to launch, than any other foreign life insurance company in China to date. New York Life, and two other foreign insurers, received approval on December 11, 2001, the day China acceded to the WTO. Two weeks later, New York Life announced its joint venture with the Haier Group and immediately began the task of setting up the new company.

"The record speed with which New York Life International and Haier have established this company underscores the strength of our management team in Shanghai as well as the experience both partners have in setting up and running joint ventures," said Benanav. "It is also important to recognize the competence and professionalism of the China Insurance Regulatory Commission, which is making great efforts to open the country's insurance market to foreign participation while protecting consumers with a strong regulatory program."

While currently limited to operate in only Shanghai, Haier New York Life expects to establish branches in other major Chinese cities, pending regulatory approval. China is in the process of opening additional cities to foreign life insurance companies as agreed in its accession to the WTO.

Strong Management Team and Rapidly Growing Sales Force
Haier New York Life has a strong management team of life insurance professionals with experience in the competitive Taiwan and Hong Kong markets. The company is led by Mr. Limin Chu, formerly head of New York Life's successful Taiwan operation, its largest operation outside the United States in terms of life sales. The deputy general manager is Mr. Li Zhang, formerly of AXA's Hong Kong office, and the director of the company's agency sales force is Mr. Calvin Wong, formerly head of New York Life's Hong Kong operation.

Haier New York Life will distribute its products largely through a career agency force modeled after New York Life's exceptional sales management system, which was developed in the U. S. and is used in all of New York Life's international ventures. The company is actively hiring and training sales managers and agents and expects to have 800 agents by year-end 2003. All Haier New York Life agents are required to complete New York Life's rigorous agent training program, which stresses professionalism, ethical behavior, and needs-based advice to customers. Haier New York Life aims to have the best trained, most professional sales agents of any life insurance company in Shanghai.

New York Life International offers insurance products through its subsidiaries and affiliates in Hong Kong, India, Argentina, Mexico, the Philippines, South Korea, Taiwan, Thailand, and Shanghai, China. The company has representative offices in the Chinese cities of Beijing, Guangzhou, and Chengdu, and in Hanoi, Vietnam.

New York Life Insurance Company, a Fortune 100 company, is the largest mutual life insurance company in the United States and the fifth largest in the world. Founded in 1845 and headquartered in New York City, New York Life and its affiliates offer life insurance, annuities and long-term care insurance. On the investment side, New York Life's affiliates provide institutional asset management and trust services and, through a subsidiary, NYLIFE Distributors Inc., provide an array of securities products and services such as institutional and retail mutual funds, including 401(k) products.

Contacts:

Fielding Dupuy
New York Life
(917) 295-0062 (mobile)

Bill Werfelman
New York Life
(212) 576-5385

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