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 dividend payout of $1.9 billion in 2020, the largest in the company’s history. This record milestone will mark the 166th consecutive year that New York Life has paid a dividend to policy owners, underscoring the company’s continued financial strength. New York Life is the only major U.S. mutual life insurance company to declare a record total dividend payout in each of the last six years.
According to Chairman and CEO Ted Mathas, “New York Life’s record total dividend payout exemplifies our ongoing commitment to our noble purpose as a mutual company and to delivering long-term value to our policy owners. As we prepare to celebrate New York Life’s first 175 years in 2020, we continue to deliver on our promises by investing wisely, building on our financial strength, and ensuring our policy owners’ interests are fully aligned with our mission of providing financial security and peace of mind.”
The dividend payout declared for 2020 highlights the strategic benefits of the company’s commitment to human guidance which is delivered in communities across the U.S. by New York Life’s industry leading, best-trained, and highest-achieving agent force of over 12,000 financial professionals.
The payout follows another exceptional year of financial performance, supported by New York Life’s strong business diversification. The company’s strategic insurance businesses complement New York Life’s foundational life insurance franchise and support the company’s earnings and financial strength by delivering diversified revenue streams.
New York Life will also pay dividends on participating Mutual Income Annuities for the fourth consecutive year. As income annuities have grown to become a core retirement solution for millions of Americans, New York Life and its subsidiaries remain a leading income annuity provider according to LIMRA.
For policy owners, the dividend payout validates their decision to purchase participating life insurance from New York Life. Dividends can add value to a life insurance policy in several ways. As policy owners’ financial needs change over time, many use dividends to increase life insurance coverage without additional underwriting (known as Paid-Up Additions, or PUAs). By choosing PUAs, policy owners may purchase additional cash value and death benefit, and their money continues to grow income tax deferred. Dividends are payable on PUAs, as well. Dividends can also be used to pay a portion of premiums, thus lowering out-of-pocket costs; taken in the form of a check to be used any way a policy owner sees fit; or left on deposit with the company where dividends can earn interest.
New York Life remains one of only two life insurance companies with the highest financial strength ratings currently awarded to any U.S. life insurer by all four major rating agencies, out of 800 life insurers operating in the United States today. In addition, surplus and asset valuation reserve remain strong at a record $27.1 billion, bolstered by the company’s ability to strategically manage its $267.1 billion general account.
About New York Life
New York Life Insurance Company (www.newyorklife.com), 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. 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 has the highest financial strength ratings currently awarded to any U.S. life insurer from all four of the major credit rating agencies.