Mutual Strength

Why we are a mutual...
“Purely mutual.” This distinctive claim was bannered across New York Life’s earliest advertisements, some 150 years ago. Today, at the dawn of the 21st century, New York Life remains a mutual life insurance company.

“Mutual companies (are able to) avoid the potential conflicts of interest that exist between policyholders and shareholders in publicly traded companies. We believe that fact appeals to a number of policyholders.”
—Moody’s Investors Service, April 2001

“Sometimes you want to go in the opposite direction of the herd.”
—Sy Sternberg, as quoted in American Banker, January 11, 1999

	Chairman Sy Sternberg on Mutuality (3:19) Windows Media Player: Broadband | 56k Real Player: Broadband | 56k
	The History of New York Life Windows Media Player: Broadband | 56k Real Player: Broadband | 56k

What is a “mutual insurance company?”
Unlike a stock company, a mutual insurance company, such as New York Life, does not offer shares of stock on public exchanges. Rather, it is operated and maintained for the benefit of its members, or policyowners. All policyowners have the right to vote for the Company’s Board of Directors and to receive a fair share of the dividends declared by the Board each year. In a stock company, by contrast, any dividends are paid first to shareholders, and only after to policyholders.

Why is New York Life a mutual company?
“We believe that the mutual structure has a great deal of vitality—it underscores our focus on policyholders and our long-term commitment to their needs. The primary responsibility of a mutual insurance company is to ensure that the long-term benefits promised to its policyholders are secure and protected. For over 150+ years New York Life has fulfilled this responsibility. Our view is that our company can best serve its policyholders as a mutual.”

“To fully appreciate our decision to remain a mutual, one must recognize that New York Life is driven by its commitment to its policyholders. Unlike most consumer products, life insurance has to work flawlessly for decades, so its benefits can be there when our customers need them. Financial strength is a cornerstone of this commitment. Our company’s conservative management philosophy over more than a century and a half has served our policyholders extremely well. By remaining a mutual, New York Life can continue to manage for the long term, instead of the quarter-to-quarter orientation of the investment community.” —Sy Sternberg

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