New York Life announces 2014 financial results.
New Milestones Reached for the First Time: Policyholder Benefits and Dividends Paid Exceeded $9 Billion; Operating Earnings Surpassed $2 Billion; AUM Exceeded $500 Billion.
- Operating earnings achieved a new record high of $2.02 billion, an increase of 14.7 percent over 2013, marking the fifth consecutive year of record earnings
- Surplus and asset valuation reserve grew by $796 million to $21.9 billion, an
- Assets under management increased to a new high of $541 billion in 2014
- Individual life insurance in force rose to a new record of $871 billion, $31 billion more than 2013, as a new sales record was set in 2014
- Dividends grew by more than 9 percent for the third consecutive year
- Policyholder benefits and dividends paid rose to $9.08 billion, up 5 percent
NEW YORK, April 7, 2015—New York Life Insurance Company, America’s largest mutual life insurance company1, announced a 14.7 percent increase in 2014 operating earnings to a record $2.02 billion, and record surplus and asset valuation reserve, which reached $21.9 billion for the year.
“I also want to thank our policyholders for placing their trust in New York Life. Our company’s founders set forth a singular objective for New York Life 170 years ago—to operate for the benefit of our policyholders—and we will not waver from that course,” added Mr. Mathas. “Our continued commitment to the mutual form of governance informs virtually every decision we make, and makes us confident in our promise to be there for those who rely on us no matter what economic weather lies ahead.”
Dividends Paid to Policyholders Increased 30 Percent Since 2011
Record Earnings Support Responsible Growth
Operating earnings, the company’s measure to track profitability from ongoing operations, grew 14.7 percent in 2014 to $2.02 billion. This marks the fifth consecutive year in which earnings have achieved a new historical record.
“Through our mutual company model, we are able to allocate resources in a way few other companies can,” Mr. Mathas said. “The fact that we achieved record earnings while maintaining our strong surplus and unsurpassed financial strength ratings from all four major
Career Agency Force Key to Year’s Success
New York Life is one of the few companies committed to a career agency system as our primary distribution model. In 2014 the company’s diverse field force of more than 12,000 financial professionals helped life insurance sales reach a new high of $1.2 billion.
Mr. Mathas said, “Agents are the heart and soul of New York Life, working tirelessly to secure the financial footing of families and businesses while still finding time to give back to the community. Our performance this year reflects the unsurpassed combination of our agents’ expertise and commitment to helping families and businesses achieve their financial goals.”
Review of Businesses
Insurance and Agency Group
The Insurance and Agency Group includes the company’s life insurance business in the United States, which has been the core business of New York Life since its founding in 1845, and the company’s career agency system of 12,000 licensed agents in cities and towns across the nation. In 2014, $5.7 billion in benefits and dividends was paid out to the Insurance and Agency Group’s domestic life insurance policyholders. Complementing the Group’s successful agency model are two supplemental distribution channels for the U.S. life business:
- New York Life Direct, the company’s direct response business in Tampa, FL, which is the leading direct marketer of life insurance in the U.S. through an endorsed program with AARP geared to its membership;
- The company’s Group Membership Association business, which is the largest underwriter of professional association insurance programs in the U.S., covering members of more than 500 associations across the country.
The Insurance and Agency Group also includes New York Life’s life insurance operation in Mexico, Seguros Monterrey New York Life, one of the country’s largest life insurers.
The Investments Group includes all of the asset management businesses of New York
New York Life Investments offers retail mutual funds through its MainStay Funds family. In 2014, the Group reported sales of MainStay mutual funds totaling $25.9 billion for the year, the second-highest sales number in MainStay’s history, through the third party market and New York Life agents.
On the annuity side, New York Life continued to lead the industry in providing guaranteed lifetime income, with a 22 percent market share in fixed immediate annuities and 42 percent of the market for deferred income annuities, according to an industry source.4 The Group’s other retirement solutions include fixed deferred annuities and variable annuities.
More Agency Highlights from 2014
In addition to Agency’s accomplishments noted above, here are additional key highlights:
- The company hired 3,680 full-time agents last year, continuing its strong trend of hiring in recent years. Since 2007, the company has grown its active agent force by 24 percent. In 2014, 52 percent of New York Life’s new hires in the field were individuals who represent the cultural markets.
- New York Life continued its leadership of the MDRT5 for the 60th consecutive year. The company had 2,376 agents achieve this recognition in 2014, about one-quarter of New York Life’s active field force in the United States. New York Life also led the industry in the number of women agents qualifying for MDRT in 2014. Impressively, New York Life has one out of every five MDRT qualifiers in the industry overall, one in every three women qualifiers—and four times more women in the organization than the second place company.
2014 Financial Highlights
About New York Life
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. New York Life has the highest possible financial strength ratings currently awarded to any life insurer from all four of the major credit rating agencies: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s & (AA+).** 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 retail mutual funds. Please visit New York Life’s website at www.newyorklife.com for more information.