New York Life Insurance Company

Last updated
New York Life Insurance Company
Type Private. Mutual
Industry Insurance: life and annuity
Founded1845;178 years ago (1845)
Headquarters New York Life Building
New York, New York, U.S.
Key people
Craig DeSanto, CEO
Ted Mathas, Chairman [1]
Products Life insurance, annuities, long-term care, asset management
RevenueIncrease2.svg US$$58.445 billion (2022) [2]
Decrease2.svg US$-1.13 billion (2022) [2]
AUM Increase2.svgUS$670 billion (2023) [3]
Total assets Increase2.svg US$392.13 billion (2022) [2]
Total equity Increase2.svg US$23.88 billion (2022) [2]
Number of employees
Increase2.svg 15,050 (2022) [2]
Subsidiaries New York Life Investments
Website newyorklife.com

New York Life Insurance Company (NYLIC) is the third-largest life insurance company [4] and the largest mutual life insurance company in the United States, [5] and is ranked #71 on the 2023 Fortune 500 list of the largest U.S. corporations by total revenue. [6] In 2023, NYLIC achieved the best possible ratings by the four independent rating companies (Standard & Poor's, AM Best, Moody's and Fitch Ratings). [7] Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds.

Contents

History

Early history

Advertisement from Shole's Directory of the City of Macon, December 1st, 1894. Sholes' directory of the city of Macon, December 1st, 1894. Volume VII - DPLA - 33bbbeda62298ecf983e1a2e2b17c8b1.pdf
Advertisement from Shole's Directory of the City of Macon, December 1st, 1894.

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. [8] [9] Originally chartered in 1841, the company also sold fire and marine insurance. [10] The company's first president, James De Peyster Ogden, was appointed in 1845. [11] Nautilus renamed itself New York Life Insurance Company in 1845 to concentrate on its life insurance business. [8] [10]

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. [8] The board of trustees voted to end the sale of insurance policies on slaves in 1848. [8] 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. [12] [13] In the late 1800s, the company began employing female agents. [14]

New York Life continued to grow throughout its first 100 years as the national population and the market for life insurance increased. [15] 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. [15] In 1892, company President John A. McCall introduced the branch office system: offices that served as liaisons between New York and field agents. [15]

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. [16] In 1896, New York Life became the first company to insure people with disabilities or in hazardous occupations. [16]

20th century

The New York Life Building at 51 Madison Avenue in Manhattan, designed by American architect Cass Gilbert, opened in December 1928. [17] The company moved into the 34-story skyscraper in 1929. [15] 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. [15]

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. [15] In 1957, New York Life hired one of the industry's first black agents, Cirilo McSween. [8] [18] In the 1970s, New York Life began selling annuities and mutual funds. [15] In the late 1990s and early 2000s, as other mutual life insurance companies became publicly traded corporations, New York Life remained a mutual company. [15] New York Life entered the Mexican market in 1999 when it acquired Seguros Monterrey from Aetna. [19]

Recent history

New York Life, along with other insurance companies, relaxed the claims process for missing persons in the wake of the September 11 attacks. [15] 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. [13] In the ensuing financial crisis, New York Life Insurance Company rejected assistance from the U.S. Treasury Department. [20]

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. [21]

In November 2021, the company announced that company president Craig DeSanto was replacing CEO Ted Mathas. The transition was finalized in April 2022, and Mathas stayed with the company as a non-executive chairman. [1]

Operations

As of 2016, New York Life Insurance Company was the country's third-largest life insurance company. [4] A mutual insurance company, New York Life is owned by its policyholders and has no outside shareholders. [22] As a mutual, New York Life distributes a portion of its earnings to eligible policyholders as annual dividends. [15] [23] As of 2016, the company has paid a dividend every year since 1854. [24] Through Seguros Monterrey New York Life, the company offers insurance in Mexico. [25]

New York Life's core product is whole life insurance, a type of life insurance offering lifelong protection that builds cash value over time. [22] [23] New York Life also sells term life insurance, universal life insurance, variable universal life insurance, long-term care insurance, annuities and disability insurance. [23] The company operates New York Life Direct, selling direct-to-consumer policies, and is the exclusive life insurance partner of the AARP. [26]

New York Life Building, Kansas City NY Life Bldg St-Gaudens Eagle Kansas City MO.jpg
New York Life Building, Kansas City

Asset management businesses

New York Life Investments is a subsidiary global asset management business which serves both institutional and retail clients. [27] It ranks No. 26 by total worldwide institutional assets under management, according to Pensions & Investments' Largest Money Managers Survey 2017. [28]

The group manages money through independent investment boutiques. [29] These boutiques include:

Charitable efforts

New York Life Foundation is the insurance company's philanthropic arm. Its areas of focus include childhood bereavement. [43] [44] New York Life Foundation first became involved in childhood bereavement programs when it supported the Comfort Zone Camp in 2007. [44] 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. [44] It sponsored the HBO documentary One Last Hug. [44]

The company also emphasizes giving to various cultural communities, including the African-American community. [4] 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. [4] [45]

Ratings and rankings

In 2017 Fortune named New York Life among its Most Admired Companies in the life insurance industry. [46] Forbes ranked New York Life #364 among America's Best Employers for 2017. [47] [48] As of 2023, New York Life ranks No. 71 on the Fortune 500. [6]

By the end of 2023, 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. [7]

Related Research Articles

<span class="mw-page-title-main">Financial services</span> Economic service provided by the finance industry

Financial services are economic services tied to finance provided by financial institutions. Financial services encompass a broad range of service sector activities, especially as concerns financial management and consumer finance.

<span class="mw-page-title-main">Fidelity Investments</span> American multinational financial services corporation

Fidelity Investments, commonly referred to as Fidelity, earlier as Fidelity Management & Research or FMR, is an American multinational financial services corporation based in Boston, Massachusetts. The company was established in 1946 and is one of the largest asset managers in the world with $4.3 trillion in assets under management, and, as of December 2022, their assets under administration amount to $10.3 trillion. Fidelity Investments operates a brokerage firm, manages a large family of mutual funds, provides fund distribution and investment advice, retirement services, index funds, wealth management, securities execution and clearance, asset custody, and life insurance.

The Vanguard Group, Inc., is an American registered investment advisor based in Malvern, Pennsylvania, with about $7.7 trillion in global assets under management, as of April 2023. It is the largest provider of mutual funds and the second-largest provider of exchange-traded funds (ETFs) in the world after BlackRock's iShares. In addition to mutual funds and ETFs, Vanguard offers brokerage services, educational account services, financial planning, asset management, and trust services. Several mutual funds managed by Vanguard are ranked at the top of the list of US mutual funds by assets under management. Along with BlackRock and State Street, Vanguard is considered to be one of the Big Three index fund managers that play a dominant role in corporate America.

<span class="mw-page-title-main">Teachers Insurance and Annuity Association of America</span> Financial services organization

The Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, is an American financial services organization that is a private provider of financial retirement services in the academic, research, medical, cultural and governmental fields. TIAA is listed on the Fortune 100 and serves over 5 million active and retired employees participating at more than 15,000 institutions and has $1 trillion in combined assets under management with holdings in more than 50 countries.

Net asset value (NAV) is the value of an entity's assets minus the value of its liabilities, often in relation to open-end, mutual funds, hedge funds, and venture capital funds. Shares of such funds registered with the U.S. Securities and Exchange Commission are usually bought and redeemed at their net asset value. It is also a key figure with regard to hedge funds and venture capital funds when calculating the value of the underlying investments in these funds by investors. This may also be the same as the book value or the equity value of a business. Net asset value may represent the value of the total equity, or it may be divided by the number of shares outstanding held by investors, thereby representing the net asset value per share.

<span class="mw-page-title-main">BlackRock</span> American multinational investment management corporation

BlackRock, Inc. is an American multinational investment company. It is the world's largest asset manager, with $9.42 trillion in assets as of June 30, 2023. Headquartered in New York City, Blackrock has 70 offices in 30 countries, and clients in 100 countries. BlackRock is the manager of the iShares group of exchange-traded funds, and along with The Vanguard Group and State Street, it is considered to be one of the Big Three index fund managers. Its Aladdin software keeps track of investment portfolios for many major financial institutions and its BlackRock Solutions division provides financial risk management services. BlackRock is ranked 184th on the Fortune 500 list of the largest United States corporations by revenue.

<span class="mw-page-title-main">Ameriprise Financial</span> Financial services company

Ameriprise Financial, Inc. is a diversified financial services company and bank holding company incorporated in Delaware and headquartered in Minneapolis, Minnesota. It provides financial planning products and services, including wealth management, asset management, insurance, annuities, and estate planning.

The Massachusetts Mutual Life Insurance Company, also known as MassMutual, is a Springfield, Massachusetts-based life insurance company.

Unitised insurance funds or unit-linked insurance funds are a form of collective investment offered life assurance policies.

A unit-linked insurance plan is a product offered by insurance companies that, unlike a pure insurance policy, gives investors both insurance and investment under a single integrated plan.

<span class="mw-page-title-main">Public–Private Investment Program for Legacy Assets</span>

On March 23, 2009, the United States Federal Deposit Insurance Corporation (FDIC), the Federal Reserve, and the United States Treasury Department announced the Public–Private Investment Program for Legacy Assets. The program is designed to provide liquidity for so-called "toxic assets" on the balance sheets of financial institutions. This program is one of the initiatives coming out of the implementation of the Troubled Asset Relief Program (TARP) as implemented by the U.S. Treasury under Secretary Timothy Geithner. The major stock market indexes in the United States rallied on the day of the announcement rising by over six percent with the shares of bank stocks leading the way. As of early June 2009, the program had not been implemented yet and was considered delayed. Yet, the Legacy Securities Program implemented by the Federal Reserve has begun by fall 2009 and the Legacy Loans Program is being tested by the FDIC. The proposed size of the program has been drastically reduced relative to its proposed size when it was rolled out.

A with-profits policy (Commonwealth) or participating policy (U.S.) is an insurance contract that participates in the profits of a life insurance company. The company is often a mutual life insurance company, or had been one when it began its with-profits product line. Similar arrangements are found in other countries such as those in continental Europe.

<span class="mw-page-title-main">Northwestern Mutual</span> American financial services company

Northwestern Mutual is an American financial services mutual organization based in Milwaukee, Wisconsin. The financial security company provides consultation on wealth and asset income protection, education planning, retirement planning, investment advisory services, Financial Planning trust and private client services, estate planning and business planning. Its products include life insurance, permanent life insurance, disability income, and long-term care insurance; annuities; investments; and investment advisory products and services. Northwestern Mutual ranked No. 90 on the 2021 Fortune 500 list of the largest United States corporations by total revenue and is in the top 30 by assets held. The firm distributes a portion of its earnings to eligible policyholders as annual dividends.

New York Life Investments is a U.S. investment management company based in Jersey City, New Jersey. New York Life Investments is a service mark and trade name of New York Life Investment Management LLC. Founded in 1986, New York Life Investment's parent company is New York Life Insurance Company, the largest mutual life-insurance company in the United States, and one of the largest life insurers in the world, ranking #71 on the 2023 Fortune 500 list.

Candriam, a subsidiary of New York Life, is a global multi-specialist asset management firm. By 31 December 2022, Candriam had 139 billion euros of assets under management (AUM).

Naïm Abou-Jaoudé, born on 9 July 1966 in Jal-El-Dib (Lebanon), is the Chief Executive Officer (CEO) of New York Life Investment Management (NYLIM).

OppenheimerFunds, Inc. was a global asset manager. As of February 28, 2019, the company managed over $260 billion in assets in over 13,000,000 investor accounts. In May 2019, the company was acquired by Invesco.

<span class="mw-page-title-main">Kotak Mutual Fund</span> Indian finance company

Kotak Mutual Fund is an Indian mutual fund that is managed by Mahindra Asset Management Company (KMAMC). KMAMC started operations in December 1998 and as of 2018, had approximately 74 Lakh investors in various schemes. The fund is a wholly-owned subsidiary of Kotak Mahindra Bank.

References

  1. 1 2 "DeSanto assumes position as New York Life CEO". Reinsurance News. April 19, 2022. Retrieved May 24, 2022.
  2. 1 2 3 4 5 "New York Life Insurance | 2023 Fortune 500".
  3. ↑ "New York Life Investments Announces Name Change for the MainStay CBRE Global Infrastructure Megatrends Fund". Yahoo Finance. June 20, 2023. Retrieved July 11, 2023.
  4. 1 2 3 4 Swarns, Rachel (December 18, 2016). "Insurance Policies on Slaves: New York Life's Complicated Past". New York Times .
  5. ↑ Jarboe, Michelle (16 April 2016). "New York Life leases 3 floors at 200 Public Square, will bring hundreds of jobs to downtown Cleveland". The Plain Dealer . Retrieved 15 February 2018.
  6. 1 2 "New York Life Insurance - 2023 Fortune 500". Fortune. Retrieved 2023-07-11.
  7. 1 2 "Financial Strength Ratings from Four Rating Agencies | New York Life". www.newyorklife.com. Retrieved 2023-12-31.
  8. 1 2 3 4 5 Rachel Swarns (December 18, 2016). "Insurance Policies on Slaves: New York Life's Complicated Past". New York Times . Retrieved May 26, 2017.
  9. ↑ "An early history of life insurance". Library of Congress. 15 August 2012. Retrieved 30 May 2017.
  10. 1 2 "Landmarks Preservation Commission February 10, 1987; Designation List 187 LP-1512" (PDF). New York City Landmarks Preservation Commission. 10 February 1987. Retrieved 30 May 2017.
  11. ↑ Hudnut, James Monroe (1906). History of the New York Life Insurance Company, 1895-1905. New York: New York Life Insurance Company. p. 2.
  12. ↑ Hudnut, James Monroe (1906). History of the New York Life Insurance Company, 1895-1905. New York: New York Life Insurance Company. p. 169.
  13. 1 2 t (December 8, 2010). "NY Life ex-Chairman Sy Sternberg on Trust in the Life Insurance Business: Trust Quotes #16". Trustedadvisor.com. Trusted Advisor. Retrieved March 26, 2017.
  14. ↑ Niccolls, J. Fremont (July 1937). "A woman agent in the '90's". NYLIC Review.
  15. 1 2 3 4 5 6 7 8 9 10 "New York Life Insurance Company History". fundinguniverse.com. International Directory of Company Histories. Retrieved 30 May 2017.
  16. 1 2 Tyya N. Turner, ed. (2005). Vault Guide to the Top Insurance Employers. Vault, Inc. p. 103. ISBN   9781581313208 . Retrieved 30 May 2017.
  17. ↑ "New York Life Building". Cass Gilbert Society. Retrieved 30 May 2017.
  18. ↑ Martin L. Deppe (2017). Operation Breadbasket: An Untold Story of Civil Rights in Chicago, 1966–1971. Athens, Georgia: University of Georgia Press. p. 69. ISBN   9780820350455 . Retrieved 30 May 2017.
  19. ↑ Lohse, Deborah; Millman, Joel (7 December 1999). "New York Life Insurance to buy Mexican insurer for $570 million". The Wall Street Journal . Retrieved 30 May 2017.
  20. ↑ "Two insurers reject government bailout help". NBC News . 9 November 2008. Retrieved 30 May 2017.
  21. ↑ Orzeck, Kurt (24 September 2013). "New York Life buys Dexia Asset Management arm for $512M". Law360 . Retrieved 30 May 2017.
  22. 1 2 John E. Girouard (February 10, 2009). "A Financial Bunker For Scary Times". Forbes . Retrieved May 11, 2017.
  23. 1 2 3 "New York Life Insurance Review 2017". NerdWallet. 2017. Retrieved 30 May 2017.
  24. ↑ 2016 Annual Report, p. 2
  25. ↑ "Company Overview of Seguros Monterrey New York Life, S.A. de C.V." Bloomberg LP . Retrieved 30 May 2017.
  26. ↑ Margie Manning (August 15, 2013). "New York Life builds on AARP knowledge to expand direct sales". Bizjournals . Retrieved May 11, 2017.
  27. ↑ Matt Ackermann (October 26, 2000). "N.Y. Life Relaunches Asset Unit". American Banker . Retrieved May 11, 2017.
  28. ↑ "The largest money managers" . Pensions & Investments. 29 May 2017. Retrieved 27 June 2017. 26: New York Life Investments: $373,225 [in millions]
  29. ↑ "Investments group". New York Life Insurance Company. Retrieved 31 May 2017.
  30. ↑ 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
  31. ↑ 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.
  32. ↑ 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.
  33. ↑ "Candriam Investors opens New York office". Global Investor Group. 9 January 2017. Retrieved 27 June 2017.
  34. ↑ Caon, Viola; Paredes-Vanheule, Adrien (5 June 2015). "Candriam looks to seize the retail space". Investment Europe. Retrieved 27 June 2017.
  35. ↑ 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.
  36. ↑ Griffith, Erin (11 May 2017). "Term sheet — Thursday, May 11". Fortune . Retrieved 27 June 2017.
  37. ↑ 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.
  38. ↑ Lau, Ashley (4 December 2014). "New York Life to enter ETF market with acquisition of IndexIQ". Reuters . Retrieved 27 June 2017.
  39. ↑ Lisa Shidler (3 April 2017). "Why ProShares yanked ETFs from Schwab's no-commission OneSource ETF exchange". RIABiz. Retrieved 27 June 2017.
  40. ↑ J.B. Maverick (18 March 2016). "MacKay Shields: Investment Manager Highlight". Investopedia. Retrieved 27 June 2017.
  41. ↑ 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.
  42. ↑ Delevingne, Lawrence (22 June 2016). "Private advisors shakes up hedge fund investments, staff". Reuters . Retrieved 27 June 2017.
  43. ↑ Zaslow, Jeffrey (2 June 2010). "Families With a Missing Piece". The Wall Street Journal . Retrieved 24 May 2018.
  44. 1 2 3 4 Kyoko Uchida (18 November 2015). "Heather Nesle, president, New York Life Foundation". Philanthropy News Digest. Retrieved 31 May 2017.
  45. ↑ Samantha Marshall (5 December 2006). "New York Life gives $10M to City College". Crain Communications . Retrieved 31 May 2017.
  46. ↑ "New York Life Insurance". Fortune. 2017. Retrieved 31 May 2017.
  47. ↑ "America's Best Employers". Forbes . 2017. Retrieved 1 August 2017.
  48. ↑ New York Life Forbes
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.