Founded in 1845, New York Life started with $17,000 in assets (http://en.wikipedia.org). In its fledgling years, the company insured the lives of slaves for slave owners (http://en.wikipedia.org). Now, New York Life is one of the largest mutual life insurance companies in the world. The company was listed in the 2007 Fortune 100 and received the highest possible rating from Standard and Poor’s (http://en.wikipedia.org). Professional agents, excellent customer service, strategic financial practices, and offering original products to policyholders are the ingredients that have kept New York Life a thriving mutual insurance company.
According to New York Life’s CEO Sy Sternberg, being a mutual life insurance company means that the company can provide for its policyholders in the long-run, unlike an investment life insurance company (www.newyorklife.com).
One of New York Life’s greatest attributes would be its financial strength. In addition to its nearly $169 billion in consolidated assets, New York Life holds a well-diversified portfolio, and receives some of the highest ratings for financial strength from the life insurance industry’s rating agencies (www.newyorklife.com). Most of New York Life’s assets are invested in fixed securities that have investment grade ratings by the National Association of Insurance Commissioners (www.newyorklife.com). The company’s diligence in keeping costs low also assists with its financial stability. An insurer’s total surplus measures its financial solidity. Surplus is a company’s net worth and it corresponds to the company’s earnings after all debts are met. It is also a cushion in case of economic recession. Surplus is the key indicator of a mutual insurance company’s financial strength (www.newyorklife.com). New York Life’s surplus is nearly one and a half times the average of the top 25 insurers (www.newyorklife.com).
New York Life’s products not only include life...