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Fitch Affirms New York Life's Ratings

CHICAGO, IL, April 19, 2006 —Fitch affirmed the ratings of New York Life Insurance Company (NYLIC) and its wholly owned subsidiary, New York Life Insurance and Annuity Corporation – together referred to as New York Life. The Rating Outlook is Stable. See a complete list of ratings below.

The affirmation recognizes New York Life's excellent market position in traditional life insurance, where Fitch believes the company has a competitive advantage through its career agency network. Other factors considered in Fitch's rating rationale include solid operating performance, very strong capitalization and a high–quality, liquid asset portfolio.

Fitch believes New York Life has strong, high–quality, stable earnings that are in line with expectations. However, future operating earnings growth will be somewhat depressed by pension costs. In 2005, pension costs lowered GAAP operating earnings by $158 million and are expected to depress future operating earnings by comparable amounts subject to pension plan assumptions.

The commercial paper and surplus notes ratings are based on the organization's moderate consolidated financial leverage and strong debt–repayment capabilities. On Dec. 31, 2005, total consolidated financial leverage (i.e., surplus notes plus commercial paper outstanding divided by adjusted GAAP equity) was 8.1%.

The 'AAA' ratings on the note programs and related issues recognize the trust obligations are secured solely by funding agreements issued by NYLIC with cash flow structures that enable the trustees to pay the principal and interest on the notes. Thus, the note programs are dependent upon NYLIC's credit quality and are assigned a rating equal to the company's IFS rating.

New York Life is one of the largest life insurance organizations in the United States. Individual life insurance and annuity, investment management and international operations make up the company's three primary lines of business. New York Life also provides group membership association coverage, long–term care insurance and is the exclusive provider of life insurance to the AARP.

The following ratings are affirmed with a Stable Rating Outlook by Fitch.

New York Life Insurance Company

  • Issuer default rating at 'AA+';
  • Insurer financial strength at 'AAA';
  • Surplus notes at 'AA'.

New York Life Insurance and Annuity Corporation

  • Insurer financial strength at 'AAA'.

NYL Capital Corporation

  • Commercial paper at 'F1+'.

Fitch affirms the following issues at 'AAA' with a Stable Outlook:

New York Life Funding

  • EUR300,000,000 series 2001–1 fixed–rate notes due May 18, 2006
  • US$200,000,000 series 2001–2 floating–rate notes due May 18, 2006
  • USD425,000,000 series 2001–3 floating–rate notes due Dec. 6, 2006
  • EUR300,000,000 series 2002–1 fixed–rate notes due Feb. 16, 2009
  • US$257,000,000 series 2003–1 floating–rate notes due April 14, 2008
  • US$157,484,800 series 2003–3 0% notes due Dec. 15, 2028
  • GBP300,000.000 series 2003–5 fixed–rate notes due Oct. 10, 2008
  • CHF400,000,000 series 2005–1 fixed–rate notes due Feb. 8, 2010
  • GBP300,000.000 series 2005–2 fixed–rate notes due Feb. 3, 2015
  • GBP130,000.000 series 2005–3 floating–rate notes due May 18, 2006
  • GBP100,000.000 series 2005–4 floating–rate notes due June 27, 2006

New York Life Global Funding

  • US$500,000,000 series 2003–1 fixed–rate notes due Sept. 15, 2013
  • US$500,000,000 series 2004–1 fixed–rate notes due Jan. 15, 2009
  • US$250,000,000 series 2004–2 floating–rate notes due Feb. 26, 2007
  • GBP250,000,000 series 2004–3 fixed–rate notes due June 30, 2009
  • US$150,000,000 series 2005–1 floating–rate notes due May 18, 2014
  • US$500,000,000 series 2005–2 floating–rate notes due Aug. 16, 2010
  • US$500,000,000 series 2005–3 floating–rate notes due Sept. 28, 2012
  • US$200,000,000 series 2005–4 floating–rate notes due Dec. 19, 2008
  • GBP350,000,000 series 2006–1 fixed–rate notes due Jan. 17, 2013
  • CHF450,000,000 series 2006–1 fixed–rate notes due Feb. 22, 2016
  • GBP185,000,000 series 2006–2 floating–rate notes due March 15, 2009

Fitch assigns the following rating with a Stable Rating Outlook:

New York Life Global Funding

  • C$500,000,000 series 2006–3 floating–rate notes due April 20, 2011 'AAA'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times.

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Fitch Affirms New York Life's Ratings

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