NEW YORK--(BUSINESS WIRE)--New York Life, America’s largest mutual life insurer, today announced that the company expects to pay eligible participating policy owners a record dividend payout of $1.78 billion in 2018, the largest in the company’s history. This will mark the 164th consecutive year that New York Life has paid a dividend to policy owners.* Since 2012, New York Life has increased its dividend payout by 36 percent, despite years of record low interest rates. In fact, New York Life is the only major mutual life insurer to have increased its dividend payout every year in this time period.
According to CEO and Chairman Ted Mathas, “As America’s largest and oldest mutual life insurance company, we take great pride in consistently sharing our success with our eligible policy owners through dividends. We have done so since 1854 and will again in 2018, returning a record $1.78 billion to Americans from all walks of life, who wisely chose to place their trust in New York Life. This impressive payout demonstrates the lasting power of our business model, which pairs a conservative investment strategy with a strong set of complementary businesses, to support our unsurpassed financial strength.”
The record payout declared in 2017 follows an outstanding year of performance in 2016, during which New York Life announced record sales of insurance and annuities, and paid out more than $10 billion dollars in dividends and benefits.
Year to date, the company continues to post impressive sales gains, driven by the industry’s largest, best-trained and highest-achieving** agent force. Surplus and asset valuation reserve remain strong, expected to reach $24.8 billion by year-end 2017, up six percent over 2016. The surplus is bolstered by the company’s ability to strategically manage its $230 billion general account and successfully operate its portfolio of supporting businesses, which deliver diversified revenue streams to support New York Life’s financial strength.
New York Life remains one of only two life insurance companies in the country with the highest financial strength ratings currently awarded by the four major rating agencies, reflecting a level of safety and soundness that is unsurpassed among US life insurers.
New York Life will continue to pay out a dividend on its Mutual Income Annuities in 2018. Income annuities have grown to become a core retirement solution for millions of Americans. New York Life and its subsidiaries remain the income annuity leader according to an industry source.***
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. 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.
*Dividends are not guaranteed.
**New York Life leads U.S. membership in the Million Dollar Round Table (MDRT), the Premier Association of Financial Professionals®.
***Source: LIMRA International, U.S. Individual Annuity Sales Survey, Participants Report, Fixed Immediates and Deferred Income Annuities, Second Quarter 2017 results. (Fixed Immediates include Fixed Period Annuities.) Annuities are issued by New York Life Insurance and Annuity Corporation, a wholly owned subsidiary of New York Life Insurance Company.
**** Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, 6/12/17. For methodology, please see http://fortune.com/fortune500/.
***** Individual independent rating agency commentary as of 8/1/17.
****** 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.
