New York Life Insurance Company
|Industry||Insurance: life and annuity|
|Headquarters||New York Life Building|
New York, New York, U.S.
|Ted Mathas, Chairman and CEO|
|Products||Life insurance, annuities, long-term care, asset management|
|Revenue||US$44.117 billion (2019)|
|US$1.004 billion (2019)|
|AUM||US$593 billion (2020)|
|Total assets||US$330.8 billion (2019)|
|Total equity||US$22.03 billion (2019)|
Number of employees
New York Life Insurance Company (NYLIC) is the third-largest life insurance company in the United States, the largest mutual life insurance company in the United States and is ranked #71 on the 2019 Fortune 500 list of the largest United States corporations by total revenue. NYLIC has about $593 billion in total assets under management, and more than $25 billion in surplus and AVR. In 2007, NYLIC achieved the best possible ratings by the four independent rating companies (Standard & Poor's, AM Best, Moody's and Fitch). Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds.
New York Life Insurance Company first opened in Manhattan's Financial District as Nautilus Mutual Life in 1841, 10 years after the first life insurance charter was granted in the United States. Originally chartered in 1841, the company also sold fire and marine insurance. The company's first president, James De Peyster Ogden, was appointed in 1845. Nautilus renamed itself New York Life Insurance Company in 1845 to concentrate on its life insurance business.
In its early years (1846–1848) the company, along with other insurance companies of the day including Aetna and US Life, insured the lives of slaves for their owners. By 1847 these accounted for one‑third of New York Life's policies. The board of trustees voted to end the sale of insurance policies on slaves in 1848. The company also sold policies to soldiers and civilians involved in combat during the American Civil War and paid claims under a flag of truce during that time. In the late 1800s, the company began employing female agents.
New York Life continued to grow throughout its first 100 years as the national population and the market for life insurance increased. New York Life's growth was in part fueled by its introduction of a system by which the company used agents to find new business. In 1892, company President John A. McCall introduced the branch office system: offices that served as liaisons between New York and field agents.
In 1894, the company became the first US-based insurance provider to offer life insurance to women at the same cost as men; social reformer Susan B. Anthony was one of the company's first female policyholders. In 1896, New York Life became the first company to insure people with disabilities or in hazardous occupations.
The New York Life Building at 51 Madison Avenue in Manhattan, designed by American architect Cass Gilbert, opened in December 1928. The company moved into the 34-story skyscraper in 1929. Later that year, New York Life's assets survived the stock market crash; state regulation and company investing policy had led New York Life to invest in government bonds and real estate, not common stocks.
Following World War II, New York Life further diversified; it invested in real estate development in the late 1940s and launched a mortgage-loan program for veterans in 1946. In 1957, New York Life hired one of the industry's first black agents, Cirilo McSween. In the 1970s, New York Life began selling annuities and mutual funds. In the late 1990s and early 2000s, as other mutual life insurance companies became publicly traded corporations, New York Life remained a mutual company. New York Life entered the Mexican market in 1999 when it acquired Seguros Monterrey from Aetna.
New York Life, along with other insurance companies, relaxed the claims process for missing persons in the wake of the September 11 attacks. Fearful of the stability of the market during the two years prior to the financial crisis of 2007–2008, New York Life moved its cash into other investments such as treasury bonds. In the ensuing financial crisis, New York Life Insurance Company rejected assistance from the U.S. Treasury Department.
Following the 2013 acquisition of Dexia Asset Management, later renamed Candriam Investors Group, New York Life Investments became one of the largest asset managers worldwide, with access to markets in Europe, Asia and Australia, in addition to the United States.
As of 2016, New York Life Insurance Company was the country's third-largest life insurance company. A mutual insurance company, New York Life is owned by its policyholders and has no outside shareholders. As a mutual, New York Life distributes a portion of its earnings to eligible policyholders as annual dividends. As of 2016, the company has paid a dividend every year since 1854. Through Seguros Monterrey New York Life, the company offers insurance in Mexico.
New York Life's core product is whole life insurance, a type of life insurance offering lifelong protection that builds cash value over time. New York Life also sells term life insurance, universal life insurance, variable universal life insurance, long-term care insurance and annuities. The company operates New York Life Direct, selling direct-to-consumer policies, and is the exclusive life insurance partner of the AARP.
Asset management businesses
New York Life Investments is a subsidiary global asset management business which serves both institutional and retail clients. It ranks No. 26 by total worldwide institutional assets under management, according to Pensions & Investments' Largest Money Managers Survey 2017.
The group manages money through independent investment boutiques. These boutiques include:
- Ausbil, an Australian investment boutique specializing in equities
- Candriam Investors Group, which focuses on high yield, absolute return, emerging debt, sustainable investments and asset allocation strategies
- Credit Value Partners, which specializes in opportunistic, distressed debt and high-yield corporate credit
- GoldPoint Partners, a private equity firm
- IndexIQ, which specializes in exchange-traded funds and alternative investment strategies
- MacKay Shields, an asset management firm that focuses on income generation and offers capital growth through mutual and hedge funds
- Madison Capital Funding, which provides financing to private equity firms
- Private Advisors, an asset manager specializing in hedge funds and private equity funds
New York Life Foundation is the insurance company's philanthropic arm. Its areas of focus include childhood bereavement. New York Life Foundation first became involved in childhood bereavement programs when it supported the Comfort Zone Camp in 2007. Its partners and programs include the National Alliance of Grieving Children, Grief Reach, Coalition to Support Grieving Students, Camp Erin/Moyer Foundation, Tragedy Assistance Program for Survivors and Boys and Girls Clubs of America. It sponsored the HBO documentary One Last Hug.
The company also emphasizes giving to various cultural communities, including the African-American community. The company also funded a $10 million endowment to the Colin Powell Center for Policy Studies at the City College of New York called the New York Life Endowment for Emerging African-American Issues in 2006.
Ratings and rankings
In June 2018, New York Life ranks No. 69 on the Fortune 500. In 2017 Fortune named New York Life among its Most Admired Companies in the life insurance industry. Forbes ranked New York Life #364 among America's Best Employers for 2017. As of 2019, New york Life ranks No. 71 on the Fortune 500.
By the end of 2019, New York Life had earned the highest financial strength ratings from major four rating agencies: A++ from A.M.Best, AAA from Fitch Ratings, Aaa from Moody and AA+ from Standard & Poor's.
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- Orzeck, Kurt (24 September 2013). "New York Life buys Dexia Asset Management arm for $512M". Law360. Retrieved 30 May 2017.
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- 2016 Annual Report, p. 2
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- "The largest money managers". Pensions & Investments. 29 May 2017. Retrieved 27 June 2017.
26: New York Life Investments: $373,225 [in millions]
- "Investments group". New York Life Insurance Company. Retrieved 31 May 2017.
- Thompson, Sarah; Macdonald, Anthony; Moullakis, Joyce (22 June 2017). "Ausbil MicroCap Fund makes key appointments". Australian Financial Review. Retrieved 27 June 2017.
Ausbil Investment Management has hired Mason Willoughby-Thomas as a portfolio manager and Arden Jennings as an equities analyst at its MicroCap fund
- Moullakis, Joyce (24 October 2013). "Fund manager Ausbil Dexia will embrace New York Life". Australian Financial Review. Retrieved 17 May 2018.
Fund manager Ausbil Dexia will embrace New York Life Insurance Co, the largest US life-insurer owned by policyholders, as its new equity partner, likely leading to a bolstering of funds under management and a rebranding within months. New York Life’s investment unit has agreed to acquire Dexia Asset Management unit for €380 million ($542 million), and hopes to close the transaction about December 31. Dexia has about $US100 billion in funds under management and owns 70 per cent of Sydney-based Ausbil Dexia.
- Rolland, Sophie (13 March 2017). "Candriam bien parti pour atteindre 150 milliards d'euros d'actifs dans cinq ans". Les Echos. Retrieved 27 June 2017.
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- Caon, Viola; Paredes-Vanheule, Adrien (5 June 2015). "Candriam looks to seize the retail space". Investment Europe. Retrieved 27 June 2017.
- Comtois, James (4 January 2017). "New York Life Investments takes majority stake in Credit Value Partners". Pensions & Investments. Retrieved 27 June 2017.
New York Life Investments has agreed to acquire a majority stake in Credit Value Partners, a boutique investment firm specializing in opportunistic and distressed debt and high-yield corporate credit, spokesman Kevin Maher said.
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- Kamaron Leach (11 May 2017). "GoldPoint reaffirms middle-market mezzanine financing with fourth fund". Mergers & Acquisitions. Retrieved 1 August 2017.
GoldPoint, the private equity affiliate of New York Life Investments, currently manages $11.8 billion in private equity assets.
- Lau, Ashley (4 December 2014). "New York Life to enter ETF market with acquisition of IndexIQ". Reuters. Retrieved 27 June 2017.
- Lisa Shidler (3 April 2017). "Why ProShares yanked ETFs from Schwab's no-commission OneSource ETF exchange". RIABiz. Retrieved 27 June 2017.
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- Beltran, Luisa (10 January 2017). "Madison Capital Funding's Klimmeck, Marks to exit at end of 2017". Buyouts. Retrieved 27 June 2017.
Chicago-based Madison Capital provides financing for PE firms. It operates as a unit of New York Life Insurance Co and had $8.2 billion in assets under management as of Sept. 30.
- Delevingne, Lawrence (22 June 2016). "Private advisors shakes up hedge fund investments, staff". Reuters. Retrieved 27 June 2017.
- Zaslow, Jeffrey (2 June 2010). "Families With a Missing Piece". The Wall Street Journal. Retrieved 24 May 2018.
- Kyoko Uchida (18 November 2015). "Heather Nesle, president, New York Life Foundation". Philanthropy News Digest. Retrieved 31 May 2017.
- Samantha Marshall (5 December 2006). "New York Life gives $10M to City College". Crain Communications. Retrieved 31 May 2017.
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- New York Life Forbes
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