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New York Life to Increase Dividend Payout by 11 Percent in 2015NEW YORK --(Business Wire)-- New York Life, America's largest mutual life insurer, today announced its dividend payout will increase next year by 11 percent, for a total payout of $1.6 billion. Of this, individual life policyholders will receive $1.56 billion in dividends in 2015 - a new record high for the company and a 12 percent increase over the 2014 level. The company said it will be the third consecutive year of significant dividend increases by New York Life, for an increase of 31 percent over the $1.19 billion paid to individual life policyholders in 2012. Ted Mathas, chairman and CEO, said, "The downward pressure on interest rates continues to be challenging for life insurers, especially those who do not have a diversified business portfolio. However, New York Life's policyholders benefit from our large and growing investment management business, which not only provides the safety of diversification, but meaningfully contributes to both our surplus and our dividends. Our diversified business strategy is a key reason we've been able to increase our dividend for three years running. And it is a very real and sustainable competitive advantage for our policyholders." Mr. Mathas said that in addition to the strong dividend payout reflecting the growth of the participating life business and the contribution from the investment management business, the company also continues to experience very good persistency as policyholders maintain their policies in force despite the challenging economy. This speaks not only to the value proposition the company provides its policyholders but also the consumer appeal of New York Lif's strong 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. 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. "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 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.
*Based on revenue as reported by "Fortune 500 ranked within
Industries, Insurance: Life, Health (Mutual)," Fortune magazine,
6/16/14. For methodology, please see http://fortune.com/fortune500/. # # # |
