User:16912 Rhiannon/New York Life

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New York Life Insurance Company
Company typeMutual
IndustryInsurance: Life & Annuity
Founded1845
HeadquartersNew York Life Building
New York City, New York, U.S.
Key people
Ted Mathas, CEO and Chairman
ProductsLife insurance, annuities, long-term care, asset management
US$1.95 billion (2016)[1]
AUMUS$538 billion (2016)[1]
Number of employees
11,320 employees (2017)[2]
Websitewww.newyorklife.com

New York Life Insurance Company is the largest mutual life-insurance company in the United States and one of the largest life insurers in the world, ranking No. 65 on the 2017 Fortune 500 list. The company provides life insurance, retirement, and long-term care financial products in the United States, and also has insurance operations in Mexico. Additionally, the company offers institutional and retail investment products globally. As of 2017, New York Life has 11,320 employees. The company is headquartered in New York, New York, at 51 Madison Avenue in the New York Life Building, a U.S. national historic landmark.

History[edit]

Early history[edit]

New York Life Insurance Company first opened in Manhattan's Financial District as Nautilus Mutual Life in 1845, 10 years after the first life insurance charter was granted in the United States.[3][4] Originally chartered in 1841, the company also sold fire and marine insurance.[5] The company's first president, James De Peyster Ogden, was appointed in 1845.[6] Nautilus renamed itself New York Life Insurance Company in 1849 to concentrate on its life insurance business.[3][5]

As with other early insurance companies in the U.S., in its early years (1846–1848), at the behest of its Southern agents, the company insured the lives of slaves for their owners.[3] The board of trustees voted to end the sale of insurance policies on slaves in 1848.[3] The company has been open about the sales and these details have been included in books about the company as far back as 1895, including its Semi-Centennial History of the New-York Life Insurance Company.[7]

In its early years, New York Life 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.[8][9] In the late 1800s, the company began employing female agents.[10]

In 1896, New York Life became the first company to insure people with disabilities.[11]

New York Life continued to grow throughout its first 100 years as the national population and the market for life insurance increased.[12] 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.[12] In 1892, company President John A. McCall introduced the branch office system: offices that served as liaisons between New York and field agents.[12]

20th Century[edit]

New York Life Building

The New York Life Building at 51 Madison Avenue in Manhattan, designed by American architect Cass Gilbert, opened in December 1928.[13] The company moved into the 34-story skyscraper in 1929.[12] 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.[12]

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.[12] In 1957, New York Life hired one of the industry's first black agents, Cirilo McSween.[3][14] In the 1970s, New York Life began selling annuities and mutual funds.[12] In the late 1990s and early 2000s, as other mutual life insurance companies became publicly traded corporations, New York Life remained a mutual company.[12] New York Life entered the Mexican market in 1999 when it acquired Seguros Monterrey from Aetna.[15]

Recent history[edit]

New York Life was among the insurers who relaxed their claims process for missing persons in the wake of the September 11 attacks.[12] 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 safer investments such as treasury bonds.[9] In the ensuing financial crisis, New York Life Insurance Company rejected assistance from the U.S. Treasury Department.[16] New York Life credited its diversification and conservative investments to withstanding a hit from the crisis; company CEO Ted Mathas has been quoted as saying, "We were built for times like these".[17][18]

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.[19] As of May 2017, it was ranked No. 26 on Pensions & Investments list of largest money managers.[20]

In 2016, New York Life opened an office in Jersey City, New Jersey, to serve as a tech hub for the company.[21]

In 2017, New York Life CEO Ted Mathas was among 175 CEOs and senior executives to sign the CEO Action for Diversity and Inclusion pledge committing to diversity goals.[22]

Operations[edit]

Overview[edit]

New York Life Insurance Company is the largest mutual life insurance company in the U.S.[23] and the country's third-largest life insurance company.[3] The company is owned by its policyholders and has no outside shareholders.[24] As a mutual, New York Life distributes a portion of its earnings to eligible policyholders as annual dividends.[12][25] The company has paid a dividend every year since 1854.[26]

Because it is not publicly traded, New York Life is able to focus on long-term financial strategies.[9] Its conservative approach to investments has helped it operate through economic cycles, including the Great Depression and Great Recession.[9][12]

New York Life offers life insurance in the U.S., and asset management operations globally.[27] Through Seguros Monterrey New York Life, the company offers insurance in Mexico.[28] Ted Mathas has served as CEO since 2008 and chairman since 2009.[29] As of 2017, New York Life has 11,320 employees[2] and a sales force of about 12,000 agents[30] in 120 offices in the United States.[31] In addition to its headquarters and Jersey City tech hub[21] the company has corporate offices in Austin, Texas; White Plains, New York; and Tampa, Florida.[32][33] [34]

Operating earnings stood at $1.95 billion for 2016.[35] The company reported a general account balance of $230 billion in cash and invested assets,[36] and total assets under management of $538 billion.[37] It raised its surplus and asset valuation reserve to $23.3 billion in 2016.[38]

Insurance operations[edit]

New York Life's core product is whole life insurance, a type of life insurance offering lifelong protection that builds cash value over time.[24][25] New York Life also sells term life insurance, universal life insurance, variable universal life insurance, long-term care insurance and annuities.[25] The company operates New York Life Direct, selling direct-to-consumer policies, and is the exclusive life insurance partner of the AARP.[33]

In 2016, New York Life reported that total dividend and benefits paid to policyholders grew to $10.1 billion and announced a dividend payout of $1.8 billion, a 35 percent increase since 2012.[39][40]

New York Life led the Million Dollar Round Table in the United States for the 62nd consecutive year with 2,511 members in 2016.[41]

Asset management businesses[edit]

New York Life's global asset management business serves both institutional and retail clients.[42] New York Life Investments ranks No. 26 by total worldwide institutional assets under management, according to Pensions & Investments' Largest Money Managers Survey 2017.[20]

The group manages money through independent investment boutiques.[43] These boutiques include:

  • Ausbil, an Australian investment boutique specializing in equities[44][45]
  • Candriam Investors Group, which focuses on high yield, absolute return, emerging debt, sustainable investments and asset allocation strategies[46][47][48]
  • Credit Value Partners, which specializes in opportunistic, distressed debt and high-yield corporate credit[49]
  • GoldPoint Partners, a private equity firm[50][51]
  • IndexIQ, which specializes in exchange-traded funds and alternative investment strategies[52][53]
  • MacKay Shields, an asset management firm that focuses on income generation and offers capital growth through mutual and hedge funds[54]
  • Madison Capital Funding, which provides financing to private equity firms[55]
  • Private Advisors, an asset manager specializing in hedge funds and private equity funds[56]

Corporate responsibility Charitable efforts[edit]

New York Life Foundation is the insurance company's philanthropic arm. Its areas of focus include childhood bereavement.[57][58] New York Life Foundation first became involved in childhood bereavement programs when it supported the Comfort Zone Camp in 2007.[58] 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.[58] It sponsored the HBO documentary One Last Hug.[58]

The company also emphasizes giving to various cultural communities, including the African-American community.[3] 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.[3][59]

Ratings and rankings[edit]

New York Life has the highest financial strength ratings from the four major credit rating agencies: A.M. Best, Fitch, Moody's Investors Service, and Standard & Poor’s.[60]

As of June 2017, New York Life ranks No. 65 on the Fortune 500.[2] Fortune also named New York Life to its Most Admired Companies list for the life insurance industry group in 2017.[61] Forbes ranked New York Life as one of America’s Best Large Employers in 2017.[62]

As of June 2017, New York Life Investments ranks No. 26 by total worldwide institutional assets under management on Pensions & Investments’ Largest Money Managers Survey 2017.[20]

A variety of "Best of" lists have recognized New York Life for its company culture. These include the National Association for Female Executives' Top 60 Companies for Executive Women list in 2017,[63] Working Mother's 100 Best Companies list in 2016 and its Best Companies for Multicultural Women list in 2017,[64][65] Top 50 Companies for Diversity in 2017 by DiversityInc.,[66] and the Anita Borg Institute's 2016 Top Companies for Women Technologists Leadership Index.[67] Also, New York Life earned a score of 100 on the Human Rights Campaign Foundation's Corporate Equality Index in 2017.[68] New York Life was recognized in 2017 by the National Business Inclusion Consortium for diversity and inclusion,[69] and was named to LATINO Magazine's LATINO 100 in 2016.[70]

References[edit]

  1. ^ a b "2016 Annual Report" (PDF). New York Life Insurance Company. Retrieved 31 May 2017. p. ii
  2. ^ a b c "Fortune 500". Fortune. Retrieved 27 June 2017.
  3. ^ a b c d e f g h Rachel Swarns (December 18, 2016). "Insurance Policies on Slaves: New York Life's Complicated Past". New York Times. Retrieved May 26, 2017.
  4. ^ "An early history of life insurance". Library of Congress. 15 August 2012. Retrieved 30 May 2017.
  5. ^ a b "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.
  6. ^ Hudnut, James Monroe (1906). History of the New York Life Insurance Company, 1895-1905. New York: New York Life Insurance Company. p. 2.
  7. ^ Hudnut, James Monroe (1906). History of the New York Life Insurance Company, 1895-1905. New York: New York Life Insurance Company. p. 22.
  8. ^ Hudnut, James Monroe (1906). History of the New York Life Insurance Company, 1895-1905. New York: New York Life Insurance Company. p. 169.
  9. ^ a b c d 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.
  10. ^ Niccolls, J. Fremont (July 1937). "A woman agent in the '90's". NYLIC Review.
  11. ^ Tyya N. Turner, ed. (2005). Vault Guide to the Top Insurance Employers. Vault, Inc. p. 103. ISBN 9781581313208. Retrieved 30 May 2017.
  12. ^ a b c d e f g h i j k "New York Life Insurance Company History". fundinguniverse.com. International Directory of Company Histories. Retrieved 30 May 2017.
  13. ^ "New York Life Building". Cass Gilbert Society. Retrieved 30 May 2017.
  14. ^ 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.
  15. ^ 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.
  16. ^ "Two insurers reject government bailout help". NBC News. 9 November 2008. Retrieved 30 May 2017.
  17. ^ "Built for Times Like These" (PDF). New York Life Insurance Company. Retrieved 30 May 2017.
  18. ^ Robert Goffee and Gareth Jones (2015). Why Should Anyone Work Here?: What It Takes to Create an Authentic Organization. Harvard Business Press. p. 104. ISBN 9781625275097. Retrieved 30 May 2017.
  19. ^ Orzeck, Kurt (24 September 2013). "New York Life buys Dexia Asset Management arm for $512M". Law360. Retrieved 30 May 2017.
  20. ^ a b c "The largest money managers". Pensions & Investments. 29 May 2017. Retrieved 27 June 2017. Cite error: The named reference "P&I17" was defined multiple times with different content (see the help page).
  21. ^ a b Eric Strauss (February 9, 2016). "New York Life shuffling, eliminating jobs as it plans tech hub in Jersey City". NJBiz. Retrieved May 26, 2017.
  22. ^ Feloni, Richard; Turner, Matt (13 June 2017). "175 CEOs and senior execs of the US's biggest companies have signed a pledge committing them to diversity goals". Business Insider. Retrieved 1 August 2017.
  23. ^ Um, Sage (January 17, 2017). "New York Life selects new CIO". Chief Financial Officer. Retrieved 30 May 2017.
  24. ^ a b John E. Girouard (February 10, 2009). "A Financial Bunker For Scary Times". Forbes. Retrieved May 11, 2017.
  25. ^ a b c "New York Life Insurance Review 2017". NerdWallet. 2017. Retrieved 30 May 2017.
  26. ^ 2016 Annual Report, p. 2
  27. ^ "Company Overview of New York Life Insurance Co". Bloomberg LP. Retrieved 30 May 2017.
  28. ^ "Company Overview of Seguros Monterrey New York Life, S.A. de C.V." Bloomberg LP. Retrieved 30 May 2017.
  29. ^ "Theodore A. Mathas has been CEO since 2008 and became Chairman in 2009". Bloomberg LP. Retrieved 30 May 2017.
  30. ^ Adrianne Pasquarelli (September 15, 2016). "New York Life Unveils First Campaign From Anomaly". Advertising Age. Retrieved 8 August 2017.
  31. ^ "Our people". New York Life Insurance Co. Retrieved 1 August 2017.
  32. ^ 2016 Annual Report, p. 20-21
  33. ^ a b Margie Manning (August 15, 2013). "New York Life builds on AARP knowledge to expand direct sales". Bizjournals. Retrieved May 11, 2017.
  34. ^ Liebson, Richard (10 January 2017). "New York Life moving 500 jobs to White Plains". lohud.com. Retrieved 12 September 2017.
  35. ^ 2016 Annual Report, p. ii
  36. ^ 2016 Annual Report, p. 8
  37. ^ 2016 Annual Report, p. 5
  38. ^ 2016 Annual Report, p. ii
  39. ^ 2016 Annual Report, p. 2-3
  40. ^ "2016 Report to Policy Owners" (PDF). New York Life Insurance Company. 2016. p. 3. Retrieved 27 June 2017.
  41. ^ Engstrom, Tim (12 February 2017). "Agent named to Million Dollar Round Table". Fergus Falls Daily Journal. Retrieved 1 August 2017.
  42. ^ Matt Ackermann (October 26, 2000). "N.Y. Life Relaunches Asset Unit". American Banker. Retrieved May 11, 2017.
  43. ^ "Investments group". New York Life Insurance Company. Retrieved 31 May 2017.
  44. ^ 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 {{cite news}}: Unknown parameter |registration= ignored (|url-access= suggested) (help)
  45. ^ 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. {{cite news}}: Unknown parameter |registration= ignored (|url-access= suggested) (help)
  46. ^ 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.
  47. ^ "Candriam Investors opens New York office". Global Investor Group. 9 January 2017. Retrieved 27 June 2017.
  48. ^ Caon, Viola; Paredes-Vanheule, Adrien (5 June 2015). "Candriam looks to seize the retail space". Investment Europe. Retrieved 27 June 2017.
  49. ^ 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. {{cite news}}: Unknown parameter |registration= ignored (|url-access= suggested) (help)
  50. ^ Griffith, Erin (11 May 2017). "Term sheet — Thursday, May 11". Fortune. Retrieved 27 June 2017.
  51. ^ 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. {{cite web}}: Unknown parameter |registration= ignored (|url-access= suggested) (help)
  52. ^ Lau, Ashley (4 December 2014). "New York Life to enter ETF market with acquisition of IndexIQ". Reuters. Retrieved 27 June 2017.
  53. ^ Lisa Shidler (3 April 2017). "Why ProShares yanked ETFs from Schwab's no-commission OneSource ETF exchange". RIABiz. Retrieved 27 June 2017.
  54. ^ J.B. Maverick (18 March 2016). "MacKay Shields: Investment Manager Highlight". Investopedia. Retrieved 27 June 2017.
  55. ^ 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. {{cite news}}: Unknown parameter |registration= ignored (|url-access= suggested) (help)
  56. ^ Delevingne, Lawrence (22 June 2016). "Private advisors shakes up hedge fund investments, staff". Reuters. Retrieved 27 June 2017.
  57. ^ Zaslow, Jeffrey (2 June 2010). "Families With a Missing Piece". The Wall Street Journal. Retrieved 24 May 2018.
  58. ^ a b c d Kyoko Uchida (18 November 2015). "Heather Nesle, president, New York Life Foundation". Philanthropy News Digest. Retrieved 31 May 2017.
  59. ^ Samantha Marshall (5 December 2006). "New York Life gives $10M to City College". Crain Communications. Retrieved 31 May 2017.
  60. ^ 2016 Annual Report, p. 3
  61. ^ "New York Life Insurance". Fortune. 2017. Retrieved 31 May 2017.
  62. ^ "America's Best Employers". Forbes. 2017. Retrieved 1 August 2017.
  63. ^ "The 2017 NAFE Top Companies for Executive Women". Working Mother. 2017. Retrieved 31 May 2017.
  64. ^ "Best companies". Working Mother. 8 November 2016. Retrieved 31 May 2017.
  65. ^ "2017 Best Companies for Multicultural Women". Working Mother. 2017. Retrieved 1 August 2017.
  66. ^ "The 2017 DiversityInc Top 50 Companies for Diversity". DiversityInc. 2017. Retrieved 31 May 2017.
  67. ^ Ioannou, Lori (19 October 2016). "The best companies to work for if you're a woman in tech". CNBC. Retrieved 31 May 2017.
  68. ^ "Corporate Equality Index 2017" (PDF). Human Rights Campaign Foundation. 2017. p. 46. Retrieved 31 May 2017.
  69. ^ Pramuk, Jacob (26 April 2016). "JPMorgan Chase named top US company for diversity". CNBC. Retrieved 1 August 2017.
  70. ^ "2017 LATINO 100". LATINO Magazine. 2017. Retrieved 1 August 2017.

External links[edit]

Category:Life insurance companies of the United States Category:Insurance companies of the United States Category:Life insurance companies Category:Insurance companies based in New York City Category:Mutual insurance companies of the United States *

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