NEW YORK--(BUSINESS WIRE)--New York Life, America’s largest1 mutual life insurer, today announced strong financial results for 2022 that underscore the power of the company’s differentiated business model and its significant contributions to New York Life’s enduring financial strength. The company’s top-line growth was driven by a new record in annuity sales, making New York Life the industry leader in retail annuity sales for 20222. In addition to posting a company record of nearly $2.9 billion in operating earnings, New York Life records of $16.5 billion in policy owner benefits and dividends paid and $1.2 trillion in individual life insurance in force in the U.S. demonstrate the company’s enduring commitment to the millions of individuals, families, and businesses it serves.
Record $2 billion dividend payout in 2023
New York Life declared a record dividend of $2 billion to eligible participating policy owners in 2023, the largest in company history. Paying a dividend3 for a 169th consecutive year highlights New York Life’s ability to deliver ongoing, long-term value to clients.
“We delivered healthy performance across our diversified portfolio of businesses in 2022. Despite ongoing economic uncertainty, New York Life’s financial strength is as robust as ever and we remain exceptionally well-positioned to manage through any environment,” said Craig DeSanto, CEO & President, New York Life.
Strong surplus and leading financial strength ratings
New York Life’s strong surplus – capital above and beyond the reserves already set aside to pay the benefits the company promises – is a key component of its leading financial strength ratings. New York Life is one of only two life insurers with the highest financial strength ratings currently awarded to any U.S. life insurance company by all four major rating agencies4.
According to Craig DeSanto, “Our financial strength enables us to continue to invest in solutions and tools that help us meet our customers’ evolving needs and position our 12,000 agents and advisors to deliver protection-first advice and guidance.”
Financial performance highlights as of and for the year ended December 31, 2022 include:
- $30.1 billion surplus (including the asset valuation reserve) 5
- $16.5 billion in total dividends and benefits paid to policy owners6
- $2.0 billion total dividend payout declared for 20233
- $1.2 trillion of individual life insurance in force in the U.S. 7
- $710 billion in assets under management8
- $1.7 billion in insurance sales9
- $17.7 billion in insurance premiums10
- $23.2 billion in annuity sales11
- $2.9 billion in operating earnings12
ABOUT NEW YORK LIFE
New York Life Insurance Company (www.newyorklife.com), a Fortune 100 company founded in 1845, is the largest1 mutual life insurance company in the United States and one of the largest life insurers in the world. Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments, long-term care insurance, and disability insurance. New York Life has the highest financial strength ratings currently awarded to any U.S. life insurer from all four of the major credit rating agencies4.
Note: “New York Life” or “the company”, can refer either separately to the parent company, New York Life Insurance Company (NYLIC), or one of its subsidiaries, or collectively to all New York Life companies, which include NYLIC and its subsidiaries and affiliates, including New York Life Insurance and Annuity Corporation (NYLIAC), NYLIFE Insurance Company of Arizona (NYLAZ), Life Insurance Company of North America (LINA), and New York Life Group Insurance Company of NY (NYLGICNY). NYLAZ is not authorized in New York or Maine, and does not conduct insurance business in New York or Maine. LINA is not authorized in New York and does not conduct insurance business in New York. LINA and NYLGICNY are referred to as the New York Life Group Benefit Solutions (GBS) business. Any discussion of ratings and safety applies only to the financial strength of New York Life, and not to the performance of any investment products issued by the company. Such products’ performances will fluctuate with market conditions.
Footnotes
1Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, 5/23/2022. For methodology, please see http://fortune.com/fortune500/.
2LIMRA 2022 year-end U.S. individual annuity sales.
3Dividends are not guaranteed. New York Life Insurance Company is a mutual company that issues participating products that are eligible for dividends, but is also the parent of subsidiaries which issue non-participating products. The participating products are invested in separate and distinct portfolios and have their own dividend scales.
4Individual independent rating agency commentary: A.M. Best A++ (as of 9/14/22), Fitch Ratings AAA (as of 10/18/22), Moody’s Aaa (as of 6/14/22), and Standard & Poor’s AA+ (as of 7/29/22).
5Total surplus, which includes the asset valuation reserve (AVR), is one of the key indicators of the company’s long-term financial strength and stability and is presented on a consolidated basis of the company. NYLIC’s statutory surplus was $23.89 billion and $24.57 billion at December 31, 2022 and 2021, respectively. Included in NYLIC’s statutory surplus is NYLIAC’s statutory surplus totaling $8.54 billion and $9.73 billion at December 31, 2022 and 2021, respectively, and LINA’s statutory surplus of $1.65 billion and $1.67 billion at December 31, 2022 and 2021, respectively. AVR for NYLIC was $4.23 billion and $4.17 billion at December 31, 2022 and 2021, respectively. AVR for NYLIAC was $1.89 billion and $1.87 billion at December 31, 2022 and 2021, respectively. AVR for LINA was $0.09 billion and $0.08 billion at December 31, 2022 and 2021, respectively.
Policy owners can view audited statutory financial statements by visiting our website, www.newyorklife.com, beginning in mid-March.
6Policy owner benefits primarily include death claims paid to beneficiaries and annuity payments. Dividends are payments made to eligible policy owners from divisible surplus. Divisible surplus is the portion of the company’s total surplus that is available, following each year’s operations, for distribution in the form of dividends. Dividends are not guaranteed. Each year the board of directors’ votes on the amount and allocation of the divisible surplus. Policy owner benefits and dividends reflect the consolidated results of NYLIC and its domestic insurance subsidiaries. Intercompany transactions have been eliminated in consolidation. NYLIC’s policy owner benefits and dividends were $8.70 billion and $8.80 billion for the years ended December 31, 2022 and 2021, respectively. NYLIAC’s policy owner benefits were $5.78 billion and $5.77 billion for the years ended December 31, 2022 and 2021, respectively. LINA’s policy owner benefits were $1.87 and $1.79 billion for the years ended December 31, 2022 and 2021, respectively.
7Individual life insurance in force is the total face amount of individual life insurance contracts (term, whole and universal life) outstanding for NYLIC and its domestic insurance subsidiaries at a given time. The company’s individual life insurance in force totaled $1,166.01 billion at December 31, 2022 (including $180.61 billion for NYLIAC).
8Assets under management consist of cash and invested assets and separate account assets of the company’s domestic and international insurance operations, and assets the company manages for third-party investors, including mutual funds, separately managed accounts, retirement plans and assets under administration. The company’s general account investment portfolio totaled $317.13 billion at December 31, 2022 (including $122.99 billion invested assets for NYLIAC and $8.39 billion invested assets for LINA). At December 31, 2022, total assets equaled $392.13 billion (including $184.99 billion total assets for NYLIAC and $9.25 billion total assets for LINA). Total liabilities, excluding the Asset Valuation Reserve (AVR), equaled $362.02 billion (including $174.56 billion total liabilities for NYLIAC and $7.50 billion total liabilities for LINA). See Note 4 for total surplus.
9Insurance sales represent annualized first-year premiums on participating issued whole life insurance, term life insurance, universal life insurance, long-term care insurance, disability insurance and other health insurance products. A sale is generally counted when the initial premium is paid and the policy is issued. Adjustments are made to normalize non-recurring premiums to align with our annualized recurring premium methodology for insurance sales. Some examples are: single premium products sold through our agents and Third Party Retail Life and Corporate-Owned Life Insurance distribution channel, our network of independent agents and brokers, are counted at 10 percent. Sales are generated from both domestic and Mexican operations.
10Insurance premiums include direct and assumed premiums, net of ceded premiums on life and accident and health policies, as reported in the Statutory Annual Statement (“Exhibit 1 Part 1 – Premiums and Annuity Considerations for Life and Accident and Health Contracts”). Recurring premiums include both renewal and first year (other than single) net premiums. NYLIC’s insurance premiums were $12.05 billion and $11.84 billion for the years ended December 31, 2022 and 2021, respectively. NYLIAC’s insurance premiums were $2.63 billion and $3.76 billion for the years ended December 31, 2022 and 2021, respectively. LINA’s insurance premiums were $2.74 billion and $2.66 billion for the years ended December 31, 2022 and 2021, respectively.
11Total annuity sales represent premiums on our deferred annuities (both fixed and variable) and on our guaranteed income annuities. Sales are generally recognized when premiums are received. Annuities are primarily issued by NYLIAC.
12Operating earnings is the measure used for management purposes to track the company’s results from ongoing operations and the underlying profitability of the business. This figure is based on Statutory Accounting principles on insurance operations with certain adjustments we believe are more appropriate as a measurement approach. Policy owners can view a detailed reconciliation of our management performance measure by visiting our website, www.newyorklife.com, beginning in mid-March. The New York State Department of Financial Services recognizes only unadjusted statutory accounting practices for determining and reporting the financial condition and results of operations of an insurance company, for determining its solvency under the New York Insurance Law, and for determining whether its financial condition warrants the payment of a dividend to its policy owners.
