New York Life dividend payout on life policies increases 37% since 2012.

$1.7 billion payout to participating policyholders in 2016 is largest in Company’s 170 years.

CEO Mathas cites strength of diversified business model as key to superior dividend performance.


NEW YORK, November 23, 2015 —New York Life, America’s largest mutual life insurer, today announced that participating policyholders will receive a record payout of $1.7 billion in 2016. Of the $1.7 billion being distributed next year, individual life insurance policyholders are expected to receive more than $1.6 billion, also a record payout.

Even more impressively, the 2016 payout to the company’s life insurance policyholders represents a 37 percent increase in dividend payout in the four years since the 2012 distribution of $1.19 billion.

Ted Mathas, chairman and CEO, said, “The robust, four-year 37 percent increase in our dividend payout to life insurance policyholders since 2012 is a direct result of our execution of a diversified business strategy. Specifically, New York Life policyholders are benefiting from our large and growing investment management business, which not only provides the safety of diversification, but also meaningfully contributes to both our surplus and our dividends. Other smaller business lines are also contributing to policyholder dividends. This is a very real and sustainable competitive advantage for our policyholders, who have the best of both worlds: unsurpassed credit-worthiness while delivering superior performance.”

Mr. Mathas continued, “With the zero interest rate policy of the Federal Reserve now in its seventh year, and only modest interest rate increases expected over the near term, policyholders can be comforted by the fact that New York Life’s diversified strategy is working to their benefit. Our ability to sustain and grow our dividend payout is working as planned.”

Every year since 1854 New York Life has paid a dividend to policyholders, a validation of the company’s mutual structure and singular focus on creating value for its customers. 2015 will mark the 161st consecutive year that New York Life has paid a dividend, through the Civil War, world wars, pandemics and financial crises.

Mr. Mathas said that the company also continues to experience very good persistency as policyholders maintain their policies in force despite the slow-growth economy. This speaks not only to the value proposition the company provides its policyholders but also the consumer appeal of New York Life’s unsurpassed ratings for financial strength. Of the 825 life insurers in the United States today, only two—including New York Life—have the highest ratings for financial strength currently awarded to any life insurer by the four major rating agencies.

2016 will mark the 162nd consecutive year that New York Life has paid a dividend to policyholders, through the Civil War, world wars, pandemics and financial crises, a validation of the company’s mutual structure and singular focus on creating value for its customers.

“As a mutual company we are uniquely aligned with our policyholders and are able to manage our operations for their long-term insurance and financial needs,” Mr. Mathas said. “This year’s dividend payout, however, also reflects the success of our business strategy, which couples our market-leading life and annuity businesses with a growing, global asset management operation,” added Mr. Mathas. “Because we are not publicly traded, the profits we generate from our asset management business can be used in part to support policyholders by allowing us to pay a healthy dividend while maintaining the financial strength necessary to provide safety and soundness, in good times and bad.”

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 www.newyorklife.com for more information.

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*Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, 6/16/15. For methodology, please see http://fortune.com/fortune500/.

**Individual independent rating agency commentary as of 8/13/15.

***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.