Sales Propelled by Consumer Demand for Safety, Agent Dedication to Providing Solutions to Americans
Long-Term Care Insurance, Income Annuities and Mutual Funds See Continued Strong Growth As Protection, Accumulation and Income Needs Grow Among Consumers
NEW YORK, N.Y., November 11, 2010 – New York Life Insurance Company, America's largest mutual life insurer, today announced strong gains in sales of life insurance, income annuities, long-term care insurance and mutual funds through the first nine months of 2010.
Strong Pace Continues for Life Insurance Sales
Individual life insurance sales increased 47% through September, compared to the previous all-time record for sales in the first nine months of 2009. This growth is being driven by agents, with life insurance sales through the company's national field force up 34% over the same 2009 period.* Sales of whole life insurance continue to be strong with sales up 9% over third quarter 2009. Notably, the company's Custom Whole Life product, an innovative form of whole life that allows consumers to choose how long they pay premiums, saw an increase of 27% over the same period last year.
"These sales figures reflect the phenomenal effort by the company's 11,500 agents who have delivered a record setting performance again this year. The story behind these numbers is even more significant because our agents, who live and work in communities across the country, are building solid foundations for families one life insurance policy at a time when Americans need this stability most. The continued economic uncertainty is driving Americans to seek help with their financial plans and more and more they are turning to New York Life, the market share leader in life insurance," said Mark Pfaff, executive vice president in charge of U.S. Life and Agency. According to an industry source New York Life has the largest share of new life insurance premium in the nation.**.
Permanent insurance is an affordable way for Americans to attain the economic stability they seek, evidenced by a recent LIMRA figure that states consumers earning less than $100,000 annually represent 72% of newly purchased permanent life insurance policies.*** In fact at New York Life, 75% of in-force policies have an annual premium of less than $2,000, and 60% of these are permanent.
Even further, in the wake of the financial crisis, Americans are recognizing that the traditional definition of financial wealth - stocks, bonds, mutual funds, real estate holdings, and retirement savings - is incomplete. As they work to optimize their total economic wealth they are combining insurance and investment decisions in one plan, with permanent life insurance playing a key part.
Income Annuity, Long-Term Care Insurance and Mutual Fund Sales Record Milestones
New York Life continues as the market share leader in fixed immediate annuities with another record milestone of sales reaching $1.3 billion in the first nine months of 2010. This represents an increase of 4% over the same period last year led by strong sales through New York Life agents and third party distribution channels.
"We're on pace to achieve a seventh consecutive year of record sales of lifetime income annuities. Americans are more actively taking personal responsibility for their financial needs in retirement and seeking safe and secure solutions as a foundation on which to build," said Chris Blunt, executive vice president in charge of Retirement Income Security.
Sales of New York Life's mutual funds (MainStay Funds) are up 43%, totaling more than $7 billion in the first nine months of the year, with strong performances from third party channels accounting for approximately $6 billion of the total.
"Our strong sales growth in mutual funds is an indication that Americans are being careful with selecting the institution they use for accumulating assets. They continue to recognize the benefits of working with New York Life to build and preserve their retirement assets," said Mr. Blunt.
New York Life's agents are seeing more and more consumers who recognize that long-term care insurance is needed to help mitigate the financial impact of a long-term care event and preserve their nest egg. The company's sales of the product are up 10% over last year. New York Life reported earlier this year that for the sixth consecutive year, it will pay a dividend to its LTCSelect Premier long-term care insurance policyholders. In addition, New York Life is one of only a few insurers that has never raised premium rates on in-force policies.
"As consumers take careful steps to save for retirement, there is increasing recognition that the high cost of a long-term care event could wipe out years of savings. The strong sales growth this year is a validation that more Americans recognize the value of this product and are looking to New York Life agents for answers to their questions around developing a well-designed, comprehensive retirement plan with a long-term care insurance component," said Mike Gallo, senior vice president, Long-Term Care Insurance.
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. 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 institutional and retail mutual funds.
Please visit New York Life's Web site at www.newyorklife.com for more information.
*New York Life counts Agency insurance sales of single premiums at 50%.
**Source: LIMRA International, second quarter 2010 sales survey; using recurring premium and 100% of single premiums.
***"Life Insurance Makes Sense for Most, Not Just the Rich," Wall Street Journal, October 11, 2010.
****New York Life is the largest mutual life insurance company based on the Fortune 500, ranked within industries, Insurance: Life, Health (Mutual), Fortune magazine, May 3, 2010.
*****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.
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|New York Life Continues Strong Pace With 47% Increase In Life Sales Through Third Quarter|