new york life • 2010 annual report annuities/annual... · 2011-05-13 · new york life • 2010...

New York Life • 2010 ANNuAL report

financial highlights*

(dollars in millions)

Policyholder benefits and dividends $ 13,386 $ 12,402

Surplus and asset valuation reserve 16,782 15,009

Operating earnings 1,436 1,186

Operating revenue 15,497 14,383

Insurance sales 3,051 2,655

Investment sales 35,037 32,848

Individual life insurance in force 858,189 816,052

Assets under management 316,085 286,699

december 31, 2009

Note:“NewYorkLife”or“theCompany,”asusedthroughoutthisReport,canrefereitherseparatelytotheparentCompany,NewYorkLifeInsuranceCompany,oroneofits subsidiaries,orcollectivelytoallNewYorkLifecompanies,whichincludetheparentCompanyanditssubsidiariesandaffiliates.

AnydiscussionofratingsandsafetythroughoutthisReportappliesonlytothefinancialstrengthofNewYorkLife,andnottotheperformanceofanyinvestmentproductsissued bytheCompany.Suchproducts’performancewillfluctuatewithmarketconditions. *SeeGlossaryofTermsonpage38.

The New York State Insurance Department recognizes only statutory accounting practices for determining and reporting the financial condition and results of operations of an insurance company. ThecondensedconsolidatedstatutorystatementoffinancialpositioninthisReportincludesNewYorkLifeInsuranceCompany(NYLIC)anditsdomestic,wholly-ownedlifeinsurancesubsidiariesNewYorkLifeInsuranceandAnnuityCorporation(NYLIAC)andNYLIFEInsuranceCompanyofArizona(NYLAZ).NYLAZisnotauthorizedinNewYorkorMaineanddoesnotconductinsurancebusinessinNewYorkorMaine.

Policyholders may request a copy of the audited statutory financial statements applicable to their respective companies, New York Life’s consolidated financial statements prepared in accordance with generally accepted accounting principles (GAAP) and the detailed reconciliation of the Company’s GAAP financial statements to its non-GAAP performance measures (i.e., Operating Revenue and Operating Earnings) by contacting the Secretary of the parent, New York Life Insurance Company, 51 Madison Avenue, New York, New York, 10010. The individual company audited statutory financial statements, New York Life’s consolidated GAAP financial statements and reconciliation to non-GAAP performance measures are also available on our Web site (www.newyorklife.com).

december 31, 2010


contents

4 A Message from ted Mathas

our StorY

8 four who Chose New York Life

12 the principal Businesses of New York Life

16 the Mutual Advantage

17 what Makes New York Life Different?

18the Company of the Community

19the New York Life foundation

20providing Leadership for the Life insurance industry

212010 investment review

272010 financial overview

28Consolidated Statutory Statement of financial position

30 Management’s Discussion of financial responsibility

31 offices of New York Life, its Major Subsidiaries and Affiliates

35 Senior executive officers

36Board of Directors

38Glossary of terms


According to a survey conducted in early 2011, nearly nine out of ten Americans believe that the nation is still in a recession or could easily slip back into one.

Concerned that there could be more challenges ahead, many families have adopted

more disciplined attitudes toward spending and saving. Dabbling in speculative investments has lost its appeal. “Hope” is no longer a strategy for building a financial future. instead, many families are looking for the security of financial guarantees they can count on.

i believe this financial “flight to quality” provides a helpful context for understanding New York Life’s recent performance. As you will read on the pages that follow, the Company did well in 2010, selling more insurance—and offering solid financial protection to more Americans—than at any time in our history.

this is not to say that New York Life is immune to current economic realities, such as the current low interest rate environment, that have put pressure on the investment portfolios of all life insurance companies. However, unlike most others, New York Life can meet these challenges from a position of considerable financial strength. in fact, we remain one of only three life insurers in the united States to receive the highest-possible financial strength rating from all of the major ratings agencies.

in 2010, New York Life paid benefits and dividends totaling nearly $13.4 billion. with this money, the

families we serve were better able to recover from the loss of a breadwinner, fund a comfortable retirement, or help defray the significant costs of long-term care.

At New York Life, our customers and their beneficiaries are the only ones to share in this distribution. None of our capital goes toward paying dividends to outside investors. unlike publicly traded life insurance companies, we are not in business to deliver returns to shareholders. we have none. New York Life is one of the few remaining major life insurers that is still a mutual company, dedicated solely to serving the needs of our policyholders.

perhaps this is another reason why, with 1,000 life insurance companies in the united States, more than 10 percent of all new individual life insurance purchased is from New York Life.* in fact, New York Life’s individual life insurance sales grew 38 percent over 2009—a year in which the Company also exceeded all previous sales records.

a Message fRoM ted Mathas

A MeSSAGe froM teD MAtHAS

*Surveysource:LIMRAInternational,U.S.LifeInsuranceSalesReport,fourthquarterYTD,2010results.Salesbasedonallplannedrecurringpremiumsplus100percentofreportedsinglepremiums.

Opinionsurveycitedinfirstparagraphfrom:“AmericansinPollShowScantConfidenceasPluralitySeesDecline,”Bloomberg.com,March10,2011.

4

In 2010, New York Life paid benefits and dividends totaling nearly $13.4 billion. With this money, the families we serve were better able to recover from the loss of a breadwinner, fund a comfortable retirement, or help defray the significant costs of long-term care.

“



A fouNDAtioN of fiNANCiAL StreNGtHfor a life insurance company, a critical measure of financial strength is its surplus, the funds that ensure future obligations to policyholders can be met and future company growth can be financed. Between December 2009 and December 2010, New York Life’s surplus* grew by nearly $2 billion, from $15 billion to $16.8 billion.

But surplus isn’t the whole story. to really understand a life insurance company’s strength, it’s important to know how that surplus is used.

At a publicly traded life insurance company, the need to maximize shareholders’ returns means there is an incentive to keep surplus lower. the consequences of this became apparent during the difficult economy of the past three years. every major publicly traded u.S. life insurance company experienced a financial strength rating downgrade, and some insurers required massive infusions of capital from the federal government.

New York Life, on the other hand, was well prepared for the downturn in the economy. well before the onset of the recession, we developed models to stress-test our surplus against a number of hypothetical worst-case scenarios, such as a national pandemic or a severe market downturn. we have, since 2002, increased the size of our surplus at an average rate of nearly $1 billion per year.

New York Life manages its $165 billion investment portfolio for the benefit of current and future policyholders. rather than chase financial fads, we continue to seek diversified, high quality investments that we wish to hold for the long term—investments that support the long-term commitments we make to our policyholders.

You may recall reading (in our 2007 and 2008 Annual Reports) the fundamental principles of New York Life’s investment philosophy as explained by executive Vice president and Chief investment officer Gary wendlandt. Gary, who deserves much of the credit for steering the Company’s investment portfolio safely through the worst financial squalls of the recession, retired from New York Life at the end of 2010. we will always be grateful to him for his wise stewardship and his loyal devotion to our policyholders.

we are fortunate to have an outstanding successor to Gary. John kim, who assumed the role of chief investment officer in January, has served as the president and Ceo of New York Life investments† since 2008 and continues as its chairman and chief executive officer today. John not only guided that business through one of the most challenging economic periods in recent history, but also helped New York Life investments attain significant growth while increasing its reputation as one of the most trusted asset managers in the industry. under John’s leadership, New York Life’s investment portfolio—and the principles guiding its management—will continue to be distinguishing strengths of New York Life.

wHY wHoLe Life BeLoNGS iN More portfoLioS in both good economic times and bad, whole life insurance has consistently proven itself to be one of the most essential financial products families can own. How many other assets offer cash value that is guaranteed to grow, can easily and immediately be tapped for cash for any purpose—and, on top of all that, provide a legacy of financial security for the next generation?

5

*Includesassetvaluationreserves.

†NewYorkLifeInvestmentsisaservicemarkusedbyNewYorkLifeInvestmentManagementHoldingsLLCanditssubsidiary,NewYorkLifeInvestmentManagementLLC.



in addition to the guaranteed cash value growth of whole life policies, New York Life, as a mutual life insurance company, can share a portion of its surplus directly with participating policyholders through the annual declaration of dividends. Although annual dividend payments are not guaranteed, New York Life has paid dividends every year for the past 156 years—and in 2011, we will be disbursing $1.3 billion in dividends to our policyholders.

the size of each year’s dividend is influenced by many factors, the most significant being the effect of interest rates. Despite the fact that interest rates have remained at historically low levels, our very strong surplus position allowed us to maintain in 2011 the same dividend scale we paid in 2010.

Among the non-mutual, publicly traded life insurance companies, very few offer participating whole life policies. the reason: it is very difficult to distribute a sizable dividend to policyholders and still fulfill shareholders’ expectations of returns on their investments.

AN uNCoMproMiSeD CoMMitMeNt to poLiCYHoLDer proteCtioN Some publicly traded life insurance companies, under pressure to provide robust quarterly returns to shareholders—even in an unfavorable economic environment—are increasingly favoring products that shift a greater portion of the risk to their customers.

As The Wall Street Journal reported, “Many life insurers, having suffered losses in the financial crisis, have been rethinking product lines from long-term care to retirement offerings to reduce their exposure to volatile markets.”*

it is sad to note that, at a time when more Americans than ever need long-term care insurance to protect their retirement nest eggs, a “parade of insurers” (in the words of The Wall Street Journal) “have exited the business” or “have raised prices and continue to seek approval for price increases from state regulators . . .”.

while other insurance companies have sought long-term care premium rate increases as high as 40 percent*, New York Life has never raised its long-term care insurance premiums on in-force policies. As a matter of fact, in 2010, the Company paid a dividend to eligible long-term care policyholders for the sixth consecutive year!

Americans, in growing numbers, are also turning to New York Life for a secure and stable retirement income. rather than risk their entire retirement savings in today’s uncertain investment environment, they are providing themselves the security of a regular “paycheck for life” with a New York Life Guaranteed Lifetime income annuity. Any annuity provider can promise a lifetime income, but that promise is only as strong as the company behind it. that’s why consumers seeking the assurance of triple-A financial strength have made New York Life the nation’s leading provider of fixed immediate annuities†with record sales in 2010 of $1.8 billion.‡

when i contemplate New York Life’s future—looking ahead to our most compelling opportunities for long-term growth and innovation—it is clear that

*Holm,ErikandTergesen,Ann.“MetLifeStepsBackfromLong-TermCareMarket”

the Wall street Journal,November12,2010.†Surveysource:LIMRAInternational,U.S.IndividualAnnuitySalesSurvey,Fixed

Immediates,fourthquarterYTD,2010results.(FixedImmediatesincludeFixedPeriodAnnuities.)

‡GuaranteedLifetimeIncomesalesreportedat100percent.GuaranteedLifetimeIncomeproductsareissuedbyNewYorkLifeInsuranceandAnnuityCorporation,awholly-ownedsubsidiaryofNewYorkLifeInsuranceCompany.

6



our most significant advances will be built upon New York Life’s unrivaled u.S. leadership in life insurance and other products offering financial guarantees.

we are now implementing plans that will further sharpen this strategic focus. we recently sold our operations in South korea and Hong kong, as well as our ownership interests in joint ventures in China and thailand. we have decided to concentrate on our operations in the united States, where we have a leading market share in life insurance, and on those markets in Asia and Latin America where we have strong positions.

this strategy could not be more timely. today, 30 percent of American households have no life insurance, compared to 22 percent in 2004.* this increase in uninsured households follows a decline in the number of major u.S. insurers whose primary business remains life insurance. Also, some insurers are placing less emphasis on serving the middle income market, which comprises the majority of American families.

we believe this represents a sizable opportunity for New York Life. with our distribution network of career agents serving virtually every community and every market segment, New York Life is well positioned to build upon its current market share leadership in individual life insurance.† for example, we have spent the better part of a decade developing ways to better serve the nation’s Asian-, Hispanic- and African-American communities, which collectively will represent half the nation’s population by mid-century.

Although other companies have stepped back from their commitment to the u.S. life insurance business, we believe that, in the wake of the financial crisis, the demand for life insurance will grow.

As other assets lost value, life insurance ownership brought families a welcome measure of stability and security to their financial portfolios.

the stories told on the following pages by New York Life policyholders offer dramatic evidence of this heightened recognition of the importance of life insurance. Not only are Americans discovering more reasons why life insurance is essential, they now know that selecting the right insurer is a must.

As i stated on the first page of this letter, at New York Life, we do not measure our success by share value or investor return. However, our mission does call for net growth—not just the “net gains” you read about in financial statements, but the growth of another net—the safety net that every family needs. that is our purpose—and that is why we remain proud to be “the Company You keep.”

*Source:LIMRAInternational,TrendsinLifeInsuranceOwnershipstudy,August2010.†Surveysource:LIMRAInternational,U.S.LifeInsuranceSalesReport,fourthquarter

YTD,2010results.

7

Not only are Americans discovering more reasons why life insurance is essential, they now know that selecting the right insurer is a must.

“

ted Mathas Chairman of the Board, president and Chief executive officer


paul Maloney had always been the picture of good health. He did not drink or smoke. He was an avid skier and all-around athlete, a man who worked hard to stay in shape.

that’s why he and his family were shocked two years ago, when he was diagnosed with stage iV throat cancer.

“i was floored when they told me,” he said. “And right after that, it all goes at warp speed. Next thing you know, you’ve got 12 doctors, biopsies, three rounds of chemo and six weeks of radiation treatment. it was brutal.”

it was also expensive. the medical treatments quickly devastated the family’s savings and paul’s health insurance was about to expire. As his wife, Mary, explains, “the financial stress alone was absolutely crippling.”

paul’s New York Life agent, Gary philpott, advised him that there was a provision in his life insurance policy called a Living Benefits rider, which allows policyholders to access a portion of the death benefit if they have been diagnosed to have a life expectancy of one year or less.

Gary recalls the challenge they then faced: “No doctor wants to tell their patient to give up hope. But in truth, paul’s only hope—a long shot at best—was in getting a specialized radiation treatment that his family would not be able to pay for without monies from the policy.”

“our agent,” says Mary, “really stepped up to the plate. He assisted us throughout the claim process and reassured us that New York Life would not make

a decision simply based on what was on a claim form. in fact, they took the time to review paul’s medical records and determined that he was indeed eligible for this benefit. it changed everything. it changed paul’s ability to get treatment. they did the right thing, and you don’t

always expect that from an insurance company.”

paul adds, “i used to be the most cynical person about insurance, and then, all of a sudden, the most important person in my life is my insurance agent and the company that he chose to be associated with. And the company turned out to be exactly what he said it was. i wouldn’t have imagined that there were any companies left in America with this kind of integrity.”

Shortly after beginning his new treatment regimen, paul celebrated the wedding of his daughter, Danielle. the wedding present for the newlyweds? A New York Life insurance policy.

“it was incredibly special for me to be at her wedding,” paul said. “i’m so grateful. Grateful to have a family that loves me. Grateful to have a second chance at life.”

our StorY: four wHo CHoSe New York Life

Paul Maloney “GrAtefuL to HAVe A SeCoND CHANCe At Life.”

TheLivingBenefitsRiderisnotavailablewithallpolicies.Pleaserefertotheriderfortermsandconditions,includingimportantlimitations.Termsandconditionsvarybystate.

paul Maloney with his daughter Danielle; Agent Gary philpott

8


the photo in the newspaper obituary column looked familiar to Agents Mike Norman and Mark Seasholtz. it was Steve Humphreys, one of their former policyholders, who had canceled his life insurance policy several months earlier.

Although neither agent had met Steve’s wife, Mike phoned her to offer his condolences. Lynn Humphreys had recently begun sorting through the papers in her husband’s office. it was then she discovered that there was no longer any life insurance to protect her.

“i’m going to have to figure out how to get by on just my pension from teaching school,” Lynn told Mike. “But there are still bills to pay from Steve’s medical treatments. So, there’s a real possibility i might have to sell our home.”

At one point in their conversation, Mike inquired, “if you don’t mind me asking, what led to your husband’s death?”

Lynn replied, “i guess Steve never told you: He was battling melanoma for the past four years.”

Mike was puzzled. why would someone with life-threatening cancer surrender his life insurance? He asked Lynn’s permission to speak with Steve’s physician.

the doctor indicated that, in addition to advanced melanoma, the medical team discovered a brain tumor during the final months of Steve’s life—a condition characterized by impaired judgment and reasoning.

Mike requested the Company review the circumstances surrounding the policy cancellation, as

it appeared that Steve’s decision to drop his coverage could only be attributed to the effects of his illness. But Lynn was afraid to get her hopes up: “i said to Mike, ‘there’s no way any insurance company would pay this claim.’ And he said, ‘i know that New York Life will make things right if there’s a valid reason.’”

Steve’s medical records provided conclusive evidence of a cognitive impairment. After New York Life conducted its prompt and thorough review, Mike had good news for Lynn: the Company would pay the claim in full, as though the policy were still in force.

“i couldn’t believe it,” Lynn recalls. “it’s wonderful to know we chose the right company. Mike performed a miracle—a miracle made possible by how much he cared.”


lynn huMPhReys“i kNow tHAt New York Life wiLL MAke tHiNGS riGHt.”

Lynn Humphreys with Agent Mike Norman

9


Butch powers still remembers the awe he felt as a child when he visited the home of his grandfather, a prominent architect.

“i’d climb up on his lap and wonder about all the important-looking papers on the table next to his armchair. that’s when i first saw the blue New York Life symbol, on the cover of his insurance policy. And ever since then, i felt you had to be pretty important to be one of their customers.”

Butch went into business for himself in 1989, when he opened an auto body repair shop just outside of Denver, Colorado. He soon acquired a reputation for honesty, integrity and high-quality work.

“i was doing okay,” recalls Butch, “but i never had a real grip on my financial life until a woman named Diane Blanchard brought her car to me after it was hit in a collision. She couldn’t have been happier with how well we restored her vehicle.”

two weeks later, Butch received a phone call from Diane’s husband, Greg, a New York Life agent. Greg said, “i see how well you treat your customers. i’d like the opportunity to show you how i treat my clients.”

“My first reaction,” Butch said, “was, ‘really? Am i important enough to do business with New York Life?’”

A meeting was arranged and Butch was impressed: “As a business owner, i get calls every day from people trying to sell me something. But Greg never asked me to buy anything. we just talked about my long-term goals. And he confirmed something i’ve always believed: the only young person who will take care of me when i’m older is the young person i am right now.”

As it turned out, the whole life insurance policies Butch bought from Greg became useful much sooner than he expected. in 2005, Butch took advantage of an opportunity to purchase the building that adjoined his

business—but the increased debt nearly bankrupted him. He called Greg for advice.

“Greg told me not to worry because i already had access to the cash i needed. ‘what cash? ’ i asked him.”

the cash, of course, was the accumulated cash value of Butch’s whole life policies, available as an immediate loan. with the help of the extra capital, Butch soon was back on his feet. However, three years later, his business faced another test: the Great recession. once again, he was able to borrow funds from the cash value of his life insurance to expand his business—a “life-saver” at a time when bank loans to small businesses had all but disappeared.

today, Butch is well on his way to repaying his policy loans. “i never wanted to be a big-time investor or financial genius,” he says. “So i’m glad to have New York Life in my corner. i know my money is safe, my future’s safe and my wife and daughter will be protected. i just wish Granddad could see that now i’m someone important, too—to Greg and New York Life.”

Butch PoWeRs “i NeVer HAD A reAL Grip oN MY fiNANCiAL Life.”

Policyloansaccrueinterestandreducethepolicy’stotalcashvalueanddeathbenefit.Unpaidloanscanresultinpolicylapse.

Butch powers (left) and Agent Greg Blanchard

10 our StorY: four wHo CHoSe New York Life


ray rodriguez enjoys talking about the two great loves in his life: his wife, Yara, and his career in sales.

of Yara, he says, “everyone who meets her becomes a best friend.”

And of the career he had for 20 years with the California State Lottery: “i had the best job in the world: selling dreams. Dreams that can change your life.”

ray’s life changed two years ago, in a way he did not anticipate. After surgery for a diabetic foot ulcer, his doctor told him, “You were very lucky we were able to save your foot. But you can’t continue all the driving and walking you do for your job. You really should think about retiring.”

it was difficult for ray to give up the work he enjoyed— but even more difficult to admit that he could no longer provide Yara with all he had promised her.

ray and Yara had long dreamed of inviting her friends and family to a big dinner party to celebrate her 65th

birthday. “i had no idea how i was going to pay for it,” he remembers. “i tried to scrape together some extra cash

with yard sales. i had to tell Yara, ‘i hope our guests like pizza slices. But even pizza might be a stretch for us.’”

with their household budget growing tighter, ray placed a call to his New York Life agent, paul Andrus. paul remembers their conversation: “over his 45

years as a New York Life policyholder, ray had bought enough life insurance to make sure his wife would never need to worry. that was very important to him. But since his retirement, it was becoming difficult to pay the premiums and he thought he might have to reduce or cancel the coverage. i could tell he really didn’t want to do this—it was terribly painful for him to talk about it.”

ray mentioned to paul that retirement was not something he had planned, but was due to a disability. upon hearing this, the agent went to work, reviewing ray’s life insurance coverage. After confirming that his New York Life policies included Disability waiver of premium riders, paul helped ray file a claim. once his eligibility was verified, ray received the good news: Not only would his premiums now be waived, he also would receive refunds for the premiums he paid since his disability began.

“with that refund check from New York Life,” ray said, “i gave my wife the celebration she deserved. we invited dozens of her friends and relatives to join us at one of the nicest spots in town. And that’s when i said to her, ‘You see, honey? You are loved.’”


Ray RodRiguez“i GAVe MY wife tHe CeLeBrAtioN SHe DeSerVeD.”

ray rodriguez (left) and Agent paul Andrus

TheWaiverofPremiumriderisnotavailablewithallpolicies.Pleaserefertotheriderfortermsofcoverage,includingimportantexclusionsandlimitations.

11


for many Americans, the shaky economy of the past few years has been a wake-up call—a reminder of the importance of protecting their financial futures with the triple-A financial strength of life insurance from New York Life. in 2010, we set a new Company record with sales of more than $1.5 billion, making New York Life the number one seller of individual life insurance in the nation with a 10.4 percent market share.* whole life insurance, our flagship product, offers customers the peace of mind of knowing that, even in the most severe economic downturns, not only are their families protected, but they also can access the cash value of their policies whenever they need it, no questions asked.† And whole life’s cash value is guaranteed to grow, year after year, for as long as they own their policies.

New York Life provides life insurance primarily through our network of nearly 12,000 career agents nationwide. these agents are backed by one of the most highly regarded training and lifetime education programs in the industry. the value of these trusted advisors was never more apparent than during the onset of the financial crisis, when they quickly rallied to come to the aid of their clients. with confidence in many financial institutions badly shaken, our agents contacted policyholders to reassure them of New York Life’s strength and safety, helped them find solutions to immediate concerns, and worked with them to help assess how best to respond to the impact of the crisis on their families’ financial plans.

the professionalism of our agents is also evidenced by their domination of the Million Dollar round

table (MDrt). Qualifying for MDrt ranks an agent among the top one percent of life insurance professionals in the world, and MDrt membership is a widely recognized sign of superior technical knowledge, client service and ethical standards. for the 56th consecutive year, New York Life led all u.S. insurers in MDrt membership.

in addition to our career agents, we also provide life insurance through our Advanced Market Network of independent insurance brokers, who offer corporate-and bank-owned insurance products, as well as insurance solutions for high- net-worth individuals.

through an exclusive marketing arrangement with AArp, New York Life offers insurance coverage to the association’s 36 million members. the success of this program has made the Company the largest direct response marketer of life insurance in the nation.‡the exclusive term and permanent life insurance products available to AArp members provide the protection of life insurance from New York Life in smaller face amounts. New York Life is also the exclusive provider of fixed immediate group annuities (guaranteed lifetime income annuities) to AArp’s membership.§

New York Life’s Group Membership Association Division provides group life, as well as health and disability income products to more than 500 prominent professional, military, educational and alumni associations and affinity groups. As the insurer to more than one million members of these organizations across the country, New York Life is the recognized leader in this market.

our StorY: tHe priNCipAL BuSiNeSSeS of New York Life

priNCipAL BuSiNeSSeS of New York Life

u.s. life insuRance and agency

12


for many Americans, the shaky economy of the past few years has been a wake-up call—a reminder of the importance of protecting their financial futures with the triple-A financial strength of life insurance from New York Life. in 2010, we set a new Company record with sales of more than $1.5 billion, making New York Life the number one seller of individual life insurance in the nation with a 10.4 percent market share.* whole life insurance, our flagship product, offers customers the peace of mind of knowing that, even in the most severe economic downturns, not only are their families protected, but they also can access the cash value of their policies whenever they need it, no questions asked.† And whole life’s cash value is guaranteed to grow, year after year, for as long as they own their policies.

New York Life provides life insurance primarily through our network of nearly 12,000 career agents nationwide. these agents are backed by one of the most highly regarded training and lifetime education programs in the industry. the value of these trusted advisors was never more apparent than during the onset of the financial crisis, when they quickly rallied to come to the aid of their clients. with confidence in many financial institutions badly shaken, our agents contacted policyholders to reassure them of New York Life’s strength and safety, helped them find solutions to immediate concerns, and worked with them to help assess how best to respond to the impact of the crisis on their families’ financial plans.

the professionalism of our agents is also evidenced by their domination of the Million Dollar round

table (MDrt). Qualifying for MDrt ranks an agent among the top one percent of life insurance professionals in the world, and MDrt membership is a widely recognized sign of superior technical knowledge, client service and ethical standards. for the 56th consecutive year, New York Life led all u.S. insurers in MDrt membership.

in addition to our career agents, we also provide life insurance through our Advanced Market Network of independent insurance brokers, who offer corporate- and bank-owned insurance products, as well as insurance solutions for high net-worth individuals.

through an exclusive marketing arrangement with AArp, New York Life offers insurance coverage to the association’s 36 million members. the success of this program has made the Company the largest direct response marketer of life insurance in the nation.‡the exclusive term and permanent life insurance products available to AArp members provide the protection of life insurance from New York Life in smaller face amounts. New York Life is also the exclusive provider of fixed immediate group annuities (guaranteed lifetime income annuities) to AArp’s membership.§

New York Life’s Group Membership Association Division provides group life, as well as health and disability income products to more than 500 prominent professional, military, educational and alumni associations and affinity groups. As the insurer to more than one million members of these organizations across the country, New York Life is the recognized leader in this market.


u.s. life insuRance and agency

*SalesbasedonNewYorkLife’sinternalreporting.MarketsharecalculationsbasedonNewYorkLife’sanalysisofresultsfromLIMRAInternational,U.S.IndividualLifeInsuranceSalesSurvey,year-end2010results,basedonallplannedrecurringpremiumsplus100%ofreportedsinglepremiums.

† Cashvalueisaccessedthroughpolicyloansandsurrenders,whichbothreducethepolicy’scashsurrendervalueandtotaldeathbenefit.

‡ Source:LIMRAInternational,U.S.IndividualLifeInsuranceSalesSurvey,year-end2010,andotherpubliclyavailablesources.

§NewYorkLife’sfixedannuitiesareissuedbyNewYorkLifeInsuranceandAnnuityCorporation,awhollyownedsubsidiaryofNewYorkLifeInsuranceCompany.

In2010,NewYorkLifehonoredtwooutstandingagents,MarkKline( left)ofourArkansasGeneralOfficeandDavidHerlicka(right)ofourNewHampshireGeneralOffice,astheNewYorkLifeCouncilpresidentandvicepresident,respectively.


Approximately 77 million baby boomers in the united States are now approaching or are already in retirement. for many of these men and women, the economic recession provided a harsh lesson in how costly it can be to assume too much risk when crafting a financial plan for this stage of life.

poorly performing investments can have a devastating impact on retirement security, particularly for the growing number of retirees who do not have defined benefit pensions. Social Security benefits, which were never designed to serve as a sole source of retirement income, today only cover a small fraction of the average retiree’s living expenses. there are also the added financial demands of increasing longevity: for a healthy married couple in their mid-sixties, there is now a 50 percent chance that one spouse will live beyond his or her 92nd birthday.* with so many retirements spanning 30 years or more, many people could face the very real prospect of outliving their savings.

retirement income Security offers access to a comprehensive suite of products that can provide solutions for all stages of retirement planning: investment annuities and MainStay mutual funds for growing your retirement funds†; immediate annuities for turning those hard-earned savings into a guaranteed lifetime income; and long-term care insurance for protecting your assets from the financial devastation often associated with the need for long-term care services.

Guaranteed Lifetime Income products are immediate fixed annuities‡ that offer the security of monthly retirement income checks for life and feature important options such as access to cash for unexpected expenses, inflation protection and legacy benefits.§ New York Life is the number one provider in this marketplace, with a nearly 26 percent share of the market.** GLi products are offered by our agents, by broker-dealers and also by banks.

Investment annuities offer our customers the ability to accumulate money for their retirement on a tax-deferred basis, meaning no tax is paid on earnings until the funds

are withdrawn. our variable deferred annuities, in which money can be allocated among a variety of investment choices and/or to a guaranteed fixed account, are offered by New York Life’s network of career agents.† fixed interest deferred annuities, which earn a guaranteed rate of interest, are offered by agents, as well as a number of banks and broker-dealers nationwide.‡

MainStay Investments brings the expertise of our investment managers to individual investors. ranked third on Barron’s 2010 Best fund families (over a 10-year period)††, MainStay offers clients some of the most highly regarded mutual funds in the industry, including equity, fixed income, blended, international and asset allocation funds.† MainStay Managed Accounts provides individual portfolio solutions for small and mid-size institutions and high net-worth individuals.

Long-Term Care: Current estimates indicate that 70 percent of Americans over the age of 65 will need long-term care services during their lifetime—and the great majority of them will not qualify for government financial assistance. those costs can be great: Average fees for care in an assisted living facility now top $36,000 per year.‡‡ that is why long-term care insurance, which can help pay for either out-of-home or at-home care, is now considered a financial planning essential.

At New York Life, long-term care insurance is offered exclusively through the Company’s network of career agents. 2010 was the sixth consecutive year that New York Life returned a dividend to eligible long-term care insurance policyholders.


RetiReMent incoMe secuRity

our StorY: tHe priNCipAL BuSiNeSSeS of New York Life

* Source:AmericanSocietyofActuaries,2000MortalityTables.

† For important information on MainStay Funds and variable annuities, please see notes on page 38. ‡ NewYorkLife’sfixedannuitiesareissuedbyNewYorkLifeInsuranceandAnnuity

Corporation(NYLIAC),awholly-ownedsubsidiaryofNewYorkLifeInsuranceCompany.

§ Restrictionsandlimitationsmayapply.

** Source:LIMRAInternational,U.S.FixedImmediateAnnuitySalesSurvey,year-end2010results.

††Source:Barron’s,2/7/11.FortheperiodendedDecember31,2010,MainStayFundsranked40fortheone-yearperiod,17forthefive-yearperiod,andthreeforthe10-yearperiodoutof57,53,and46fundfamilies,respectively.Past performance is no guarantee of future results.Allmutualfundsaresubjecttomarketriskandwillfluctuateinvalue.

‡‡Dataonneedforandcostoflong-termcarefrom:U.S.DepartmentofHealthandHumanServices,NationalClearinghouseforLong-TermCareinformation,www.longtermcare.gov.

13



neW yoRk life investMents

New York Life investments, a subsidiary of New York Life, ranks among the largest asset management firms in the united States*, and with its affiliates has $283 billion in assets under management.†

in addition to managing New York Life’s $165 billion General Account, New York Life investments provides investment management services to institutional and retail clients, offers retirement plans for employers and individuals, and delivers guaranteed products to both the qualified and non-qualified markets.

New York Life investments offers one of the broadest arrays of investment management competencies in the industry through multiple businesses:

• New York Life Investments Fixed Income Investors Group‡ is a multi-product fixed income investment manager managing the bulk of New York Life’s General Account fixed income investment portfolio, while also serving clients in the institutional market.

• New York Life Investments Real Estate Group‡ manages a portfolio of real estate debt and equity investments for New York Life’s General Account and third-party investors, with offices across the country providing a national presence.

• New York Life Investments Guaranteed Products‡ is a global provider of institutional fixed income investment products issued by New York Life to investors seeking high quality, low volatility and stable returns.

• Madison Capital Funding§ is a finance company focused exclusively on the corporate financing needs of private equity sponsors throughout the united States, providing leveraged financing for acquisitions, recapitalizations, management buyouts and leveraged buyouts.

• MacKay Shields§ is a fixed income-focused advisory firm, managing assets on behalf of institutional clients and retail sub-advisory relationships.

• Institutional Capital§ is a value-oriented, large cap equity investment firm managing both institutional and retail assets.

• Madison Square Investors§ offers quantitative investment solutions to a wide range of individual, corporate, public, endowment and foundation, and multi-employer retirement plans for union clients.

• New York Life Capital Partners§ manages the private equity investment activities of New York Life and third-party institutional clients.

• McMorgan & Company§ specializes in serving the needs of the union market, linking clients to the investment expertise available across New York Life investments.

• Private Advisors** is an alternative investment firm focused on managing Hedge fund of funds and private equity fund of funds, including its flagship low volatility multi-strategy capability.

• New York Life Retirement Plan Services‡ provides retirement plan management and administration for more than 1,900 corporations and union clients, offering a full range of products and services, including defined contribution, defined benefit and executive benefit plans that help plan sponsors address the ever-changing risks that can affect their retirement plans and help their employees reach their retirement goals.

* Pension & investmentsmagazine,May31,2010.

†AsofDecember31,2010,NewYorkLifeInvestments’assetsundermanagementconsistofcertainassetsoftheCompany’sdomesticandinternationalinsuranceoperationsandassetsmanagedoradministered( forarevenueshare)forthird-partyinvestors,includingmutualfunds,separatelymanagedaccountsandretirementplans.

‡AdivisionofNewYorkLifeInvestments.

§Anindirect,wholly-ownedsubsidiaryofNewYorkLife.

**AnindirectsubsidiaryofNewYorkLife.

our StorY: tHe priNCipAL BuSiNeSSeS of New York Life14



neW yoRk life inteRnational

New York Life international is the global arm of the Company, providing life insurance and other products to emerging markets through its subsidiaries and a joint venture in india. in 2010, it delivered strong revenue and earnings, led by our operations in Mexico and india. As in the united States, career agency is New York Life international’s primary distribution system for life insurance and its asset accumulation products. there are currently more than 51,000 agents registered in our international markets.

MexicoNew York Life international has two wholly-owned subsidiaries in Mexico. its life insurance company, Seguros Monterrey New York Life (SMNYL), has more than 70 years of experience in providing specialized life insurance and medical expense services to the people of Mexico. Headquartered in Mexico City, SMNYL is the second largest provider of new individual life insurance in Mexico*, with more than two million clients. Among the Comany’s 5,000 professional agents, 227 are MDrt members, an honor reserved for the top one percent of life insurance agents in the world. with 25 branch offices across Mexico and a sales force

of 500 active agents and brokers, sister company fianzas Monterrey is one of the top surety bonding companies in this marketplace.

Indiaincorporated as a joint venture between New York Life and Max india Limited (one of india’s leading multi-business corporations) in 2000, Max New York Life offers a suite of life and health insurance products through a network of professional agents, complemented by partnership distribution and bancassurance.

TaiwanNew York Life insurance taiwan Corporation is a wholly-owned subsidiary of New York Life international. in addition to career agency, this company has been a pioneer in helping banks sell protection-related products through branches. it also is a leading telemarketer of products specifically designed for families with infants.

•••

over the last several months, New York Life has been implementing a strategic shift to concentrate on the u.S. market and on markets in Asia and Latin America where we have significant scale, a large market presence, and can achieve strong, sustainable growth. in line with this transition, we have sold our operations in Hong kong and South korea, as well as our ownership interests in joint ventures in China and thailand.

our StorY: tHe priNCipAL BuSiNeSSeS of New York Life 15

“There are currently more than 51,000 agents registered in our international markets.

* Rankingbasedonsalesofindividuallife:AMIS(MexicanAssociationofInsuranceInstitutions).

photo: Mumbai, india


ouR stoRy: the Mutual advantage CreAtiNG VALue for our poLiCYHoLDerS: it ALL CoMeS BACk to You

our StorY: tHe MutuAL ADVANtAGe

Since its founding, New York Life has been a mutual company. we believe the distinction between mutually owned and publicly traded life insurance companies is an important one, influencing a firm’s priorities and purpose. Consider the important differences between these two business models:

Publicly traded life insurance companies serve more than one constituency. Along with their policyholders, they must satisfy the needs of their outside investors. A primary responsibility of these companies is to provide the best possible return on their shareholders’ investment.

Mutual life insurance companies serve only one constituency: their policyholders. there are no outside shareholders. the primary responsibility of these companies is to provide financial security to current and future policyholders by maintaining long-term financial strength. they may return a portion of their surplus as dividend payments to their participating policyholders.

Mutual life insurance companies are able to avoid the potential conflicts that may exist between policyholders and shareholders in publicly traded companies.

SHAreHoLDerS prefer companies that spend heavily to grow the business and increase return on equity (a key driver of share value).

poLiCYHoLDerS would prefer their life insurance company maintain generous capital reserves as assurance that benefits can be paid, even in a bad economy.

SHAreHoLDerS often favor companies that pursue strategies aimed at achieving sizable quarter-to-quarter gains—even though this may mean assuming a higher degree of risk.

poLiCYHoLDerS require long-term financial safety. this is the principal reason for buying life insurance.

As you can see in the diagram on this page, there are three ways in which life insurance companies can use their surplus: to fuel the growth of the business, to enhance financial strength by building up surplus, and to pay dividends. in a mutual company, all three uses of surplus deliver value to current or future policyholders.

New York Life has achieved year after year of continued growth in life insurance and investment sales. the overall profitability of New York Life’s business has remained robust, with record earnings posted in 2010.

unlike publicly traded life insurers, New York Life does not seek growth to impress wall Street, but to build long-term financial strength for the protection of our policyholders. the Company’s record-level surplus and asset valuation reserves represent a cushion of safety sizable enough to honor our commitments to policyholders in both good times and bad.

Dividends are the portion of New York Life’s surplus the Company may return to participating policyholders. keep in mind that these dividends represent an additional return our customers may receive in addition to the guaranteed cash value growth of our whole life policies. in 2011, dividends will total $1.3 billion —with 100 percent going to policyholders, and zero percent to shareholders.

Simply put, publicly traded and mutual life insurance companies operate differently because their most fundamental objectives are different.

At publicly traded insurers, every sale of an insurance policy must, ultimately, create value for shareholders. for us, too, everything begins with the sale of an insurance policy—but at New York Life, it all comes back to you.

tHe MutuAL MoDeL Creating Value for policyholders

Financial Strength

Surplus

Grow

thD

ivid

ends

p

oLiCYHoLDerS

16


our StorY: wHAt MAkeS New York Life DiffereNt?

planning a secure financial future for yourself and your family is an important decision. finding the right life insurance company to help you do that is equally important. Not all life insurance companies are the same. Here are a few of the ways New York Life serves you better and keeps you safer.

A foCuS oN Life iNSurANCe As our name indicates, New York Life is, first and foremost, a life insurance company. A lot of companies call themselves life insurers—but if you look closely, you’ll find that for many life insurance is no longer their primary business.

At New York Life, our focus has been, and always will be, on life insurance. Yes, we sell other types of insurance and financial products and services. But we do not believe anything can supplant life insurance —no other product on the market provides the same level of guaranteed financial security for your family.

fiNANCiAL StreNGtHMaintaining unquestioned financial strength regardless of the economic climate is a critical part of our ability to meet our obligations. it’s a straightforward proposition: we must be prepared to pay all claims from our policyholders, whenever they come due.

for policyholders, a critical measure of that financial strength is surplus—the funds that back our commitments. And today, New York Life’s surplus stands at an all-time high of $16.8 billion.

MutuALitYAs explained on page 16 in this Report, New York Life is a mutual life insurance company—the largest in the united States.* this means we are not publicly traded and have no obligations to shareholders. Mutuality enables us to manage the Company for our one and only constituency: you, our policyholder.

DeDiCAteD AGeNtS New York Life agents are among the most respected and skilled in the business. from the moment a person becomes a New York Life agent, he or she begins a rigorous training program that is unsurpassed in the industry. we are, in fact, one of the only insurers with a full-time training staff in every office across the country—and all agents are required to continue their education and professional development throughout their careers. that’s why you can be confident that your New York Life agent is someone who is knowledgeable and up to date on the best solutions to help you reach your financial goals.

HiGHeSt rAtiNGSStandard & poor’s, Moody’s, fitch and A.M. Best are the most prominent agencies that specialize in examining the operations and finances of companies and assigning a rating that reflects an organization’s financial strength and stability. out of more than 1,000 life insurance companies doing business in the united States today, New York Life is one of only three to earn the highest ratings from each of these four agencies.

166 YeArS of SAfetY AND proMiSeS keptA lot has happened in the world around us since we opened our doors in 1845. there have been wars and epidemics; there have been times of prosperity and times of need. And through all these ups and downs of history, New York Life has never failed to keep its promise to anyone who turned to us for financial protection and peace of mind.

At New York Life, our policyholders—and the promises we make to them—have always been our number one priority. That will never change.

ouR stoRy: What Makes neW yoRk life diffeRent?

*Basedonrevenueasreportedby“fortune 500RankedwithinIndustries,Insurance:Life,Health(Mutual),”fortune magazine,May3,2010.Seewww.money.cnn.com/magazines/fortuneformethodology.

17


our StorY: tHe CoMpANY of tHe CoMMuNitY18

ouR stoRy: the coMPany of the coMMunity

New York Life places a high priority on fostering a richly diverse corporate culture. As a mutual company driven by the needs of our policyholders, we believe it is vitally important for New York Life’s employees and network of career agents to mirror the composition of the communities in which we do business.

our formula for a diverse workforce is a simple one: we recruit from the communities we serve, and we develop and train the people we recruit. However, we recognize that creating and sustaining an environment of inclusion is not about “fitting” people into a homogenous organizational culture. As New York Life Chairman and Ceo ted Mathas explains, “rather than expect employees and agents to adapt themselves to a single way of doing business, everybody is encouraged to bring their own cultural and individual perspectives to the table.”

this philosophy inspired the creation of New York Life’s employee Network Groups. Among these Company-supported groups are three that focus on the career development and cultural heritage of African-American, Asian-American and Latino employees. the women’s Leadership program hosts seminars to help interested employees achieve their professional goals, while NYLpriDe promotes an open and supportive workplace for gay, lesbian, bisexual and transgender individuals. in addition, a Company-wide mentorship program provides all employees the opportunity to receive the one-on-one coaching and the guidance they need to build their careers.

New York Life has long been the company of choice for all Americans, including segments of the population that have traditionally been underrepresented in the

financial services arena. for example, as far back as the 1800s, New York Life was writing policies for women and employing women as agents. today, New York Life sets industry standards for hiring and promoting women

in both sales and management positions. perhaps it’s not surprising that more than 25 percent of all women who earn membership in MDrt—an industry-wide association open only to the top one percent of sales professionals—are from New York Life.

the depth of New York Life’s commitment to diversity is evident in cities and towns across America, where, through our Cultural Markets program, we recruit and train agents from the African-American, Asian-indian, Chinese, Hispanic, korean and Vietnamese communities. in 2010, more than 40 percent of the Company’s new agents were recruited from within these communities. what’s more, the markets listed above accounted for 42 percent of the new life insurance policies sold by New York Life agents last year.

true to our values of integrity, humanity and financial strength, we believe in taking an active role in our communities, supporting education, providing employment, bringing business to qualified suppliers and being part of our customers’ lives. Most importantly, the policies New York Life’s Cultural Markets agents are selling today will put billions of dollars back into those communities tomorrow and become an economic foundation for succeeding generations.

photo: 276 of New York Life’s 3,400 Cultural Markets agents gathered to celebrate the more than 10,000 new life insurance policies they generated in just six months during 2010, protecting families and businesses in their communities.


the business of New York Life can be summed up in a single promise: we will be there in times of need for those who place their trust in us. when a loved one dies, we respond with the financial support families need to carry on.

we also recognize that families need emotional support when they suffer a loss. Children are especially vulnerable following the death of a parent or other person close to them.

As surprising as it may seem, nearly one in ten young people loses a parent before their 20th birthday.* if they do not receive help in coping with their grief, the emotional turmoil can be severe and long-lasting.

Since its founding in 1979, the New York Life foundation has provided more than $140 million in support to nonprofit organizations devoted to mentoring and educating children. in 2008, the foundation launched a series of programs to specifically address the needs of kids who are dealing with the loss of a loved one.

we have partnered with several of the nation’s most respected organizations in the field of childhood bereavement. for example, we currently help fund Comfort Zone Camp and Camp erin bereavement camps throughout the nation. At these camps, grieving children are welcomed into environments where they can share their feelings with kids in similar situations, have fun and learn coping skills from caring, empathetic adults. By the end of 2010, the New York Life foundation was providing support to camps (which are free

to attendees) in more than three dozen cities.

we have also produced “After a Loved one Dies —How Children Grieve”—a booklet designed to guide parents and other concerned adults in how to help young people work through their grief. Available through our web site, the booklet has also been distributed to more than 35,000 school psychologists, thanks to the generosity of our partner, educational publisher Scholastic inc.

in communities across America, New York Life agents, employees and retirees play an important part in the foundation’s work, volunteering their time to organizations, such as the bereavement camps, that serve young people. their spirit of compassion is at the very heart of our philanthropic mission.

to learn more about the New York Life foundation or download a copy of its Annual Report (illustrated above) and childhood bereavement guide, please visit www.newyorklife.com/foundation.

ouR stoRy: the neW yoRk life foundation SupportiNG tHoSe wHo MAke A CHiLD’S worLD BriGHter.

our StorY: tHe New York Life fouNDAtioN

*Source:U.S.mortalitydata(1933-2006)fromtheHumanMortalityDatabase,UniversityofCaliforniaatBerkeley,MaxPlanckInstituteforDemographicResearch.

19


our StorY: proViDiNG LeADerSHip for tHe Life iNSurANCe iNDuStrY

through participation in industry-wide associations, New York Life works with other companies on matters of common interest, such as regulatory developments, professional standards and any other issues that might affect the 75 million families in this country who own life insurance.

Members of New York Life’s management team and New York Life agents serve in leadership roles in virtually every major industry organization.

The American Council of Life Insurers (ACLI) Composed of more than 300 member companies, the ACLi serves as a unified voice for the life insurance industry on issues ranging from retirement security to taxation.

National Association of Insurance and Financial Advisors (NAIFA) NAifA comprises more than 700 state and local associations representing 200,000 financial services professionals.

The Life and Health Insurance Foundation for Education (LIFE) this nonprofit organization’s mission is educational, helping consumers make informed decisions to safeguard their financial futures.

Association of Advanced Life Underwriting (AALU) the AALu works on behalf of financial advisors and their clients, promoting and protecting the use of advanced life insurance planning.

Life Insurance Council of New York (LICONY) this is the trade association for more than 60 life insurance companies in New York, serving as their voice in the state regulatory process.

National Organization of Life & Health Insurance Guaranty Associations (NOLHGA) through NoLHGA, the nation’s 52 life and health insurance guaranty associations voluntarily work together to provide continued protection for policyholders, even if their insurer is declared insolvent.

GAMA International this association is dedicated to the professional development of agency field leaders in the insurance and financial services industry.

Million Dollar Round Table (MDRT) An international network of leading insurance and investment financial services advisors, MDrt was established to recognize the world’s top sales professionals for their excellence and high standards of service.

ouR stoRy: PRoviding leadeRshiP foR the life insuRance industRy

teD MAtHASChairman, president and Chief executive officer

ACLi - incoming Chairman of the Board

roBert MiLLer Agent

NAifA - president-elect

MArViN feLDMANAgent

Life - president and Chief executive officer

GiB SurLeSAgent

AALu - president-elect

SHeiLA DAViDSoNChief Legal officer and General Counsel

LiCoNY - Director

GeorGe NiCHoLS iii Head of the office of Governmental Affairs

NoLHGA - Director

JoHN BAier Managing partner

GAMA international - president

wALtoN roGerS Agent

MDrt - executive Committee Member

20


21

the following investment review presents information for New York Life insurance Company and its domestic insurance subsidiaries, New York Life insurance and Annuity Corporation and NYLife insurance Company of Arizona, assets of which represent most of the invested assets of the Company. the cash and invested asset information below is presented on a statutory accounting basis.*

Sound principles and strict standards guide New York Life’s management of its investment portfolio. this includes conducting our own traditional, bottom-

up research on individual investments and the underwriting of credit risk, rather than relying on third-party credit ratings. the Company maintains strict diversification standards across asset classes, as well as by issuer and sector, and maintains ample liquidity in its investment portfolio.

CASH AND iNVeSteD ASSetS As of December 31, 2010, New York Life and its domestic insurance subsidiaries had cash and invested assets of $164.8 billion and maintained a well-diversified investment portfolio.

2010 investMent RevieW

december 31, 2010

$ 45,283

27,101

31,381

10,123

7,324

6,180

15,075

8,739

8,474

4,294

846

$ 127,392

$ 164,820

77%

100%

27%

16%

19%

6%

4%

4%

9%

5%

5%

3%

1%

cash and invested assets†


subtotal fixed income

total cash and invested assets

public corporate bonds and loans

private corporate bonds and loans

u.s. gov’t and agency securities

commercial mortgage-backed securities

asset-backed securities

non-agency residential mortgage-backed securities

mortgage loans

policy loans

equity and other interests*

cash and short terms‡

derivatives

Numbersmaynotaddupduetorounding.

*IncludesNewYorkLife’sinvestmentsinitsinternationalinsuranceaffiliatesanddomesticnon-insuranceaffiliates.†Includes$68,222millionand$63,666millionofassetsrelatedtoNewYorkLifeInsuranceandAnnuityCorporationfor2010and2009,respectively.‡Includescashprimarilyreceivedonfinancingtransactionsof$2,388millionand$3,364millionfor2010and2009,respectively.

december 31, 2009

$ 43,973

24,568

28,672

10,996

6,718

7,131

15,201

8,363

7,362

3,919

702

$ 122,058

$ 157,605

77%

100%

28%

16%

18%

7%

4%

5%

10%

5%

5%

2%

0%

2010 iNVeStMeNt reView


22

Numbersmaynotaddupduetorounding.*Includes$59,633millionand$54,799millionofassetsrelatedtoNewYorkLifeInsuranceandAnnuityCorporationfor2010and2009,respectively.

december 31, 2010

$ 88,284

28,878

5,140

3,385

1,610

95

$ 117,162

$ 10,230

$ 127,392

92%

8%

100%

69%

23%

4%

3%

1%

0%

fixed income by quality*


investment grade

below investment grade

total

naic rating qualityapproximate rating agency equivalent

naic 1

naic 2

aaa to a-

bbb+ to bbb-

highest quality

high quality

naic 3

naic 4

naic 5

naic 6

bb+ to bb-

b+ to b-

ccc+ to ccc-

cc to d

medium quality

low quality

lower quality

in or near default

fixeD iNCoMe ASSetSthe fixed income portfolio continues to be dominated by high-quality investments, with 92 percent being investment grade. the public and private corporate bond and loan portfolio remains well diversified across the broad industry spectrum and is comprised of securities issued by more than 2,200 individual issuers. the fixed income portfolio is managed to limit exposure to individual issuers according to credit quality and other factors. No single corporate exposure was greater than $285 million. the portfolio’s ten largest holdings by issuer represented 1.4 percent of cash and invested assets.

Numbersmaynotaddupduetorounding.*Includes$32,096millionofassetsrelatedtoNewYorkLifeInsuranceandAnnuityCorporation.

diversification of corporate bonds and loans*

(dollars in millions) december 31, 2010

total

utilities

consumer products

health care

energy

banking

conglomerates/diversified mfg.

reits

sovereign/foreign government

retail

insurance

gas pipelines

cable & media

aerospace & defense

other

$ 11,357

7,076

4,646

4,391

4,372

3,572

3,033

2,597

2,500

2,470

2,367

2,335

1,933

19,735

$ 72,384 100%

16%

10%

6%

6%

6%

5%

4%

4%

3%

3%

3%

3%

3%

27%

december 31, 2009

$ 83,057

27,849

5,455

3,887

1,606

204

$ 110,906

$ 11,152

$ 122,058

91%

9%

100%

68%

23%

4%

3%

1%

0%


2010 investMent RevieW (CoNtiNueD)



CoMMerCiAL MortGAGe-BACkeD SeCuritieS As of year-end 2010, New York Life and its domestic insurance subsidiaries owned $10.1 billion in commercial mortgage-backed securities, representing six percent of cash and invested assets. the majority of these securities were classified NAiC 1, even after repeated downgrades of a large number of such securities by the rating agencies. Notwithstanding the ratings, these securities are selected by our real estate investment professionals based on the quality of the underlying mortgage loans.

*Includes$4,660millionofassetsrelatedtoNewYorkLifeInsuranceandAnnuityCorporation.

commercial mortgage-backed securities by quality*

december 31, 2010

total


naic 1

naic 2

naic 3

naic 4

naic 5

naic 6

aaa to a-

bbb+ to bbb-

bb+ to bb-

b+ to b-

ccc+ to ccc-

cc to d

highest quality

high quality

medium quality

low quality

lower quality

in or near default

$ 9,629

178

177

91

39

9

$ 10,123 100%

95%

2%

2%

1%

0%

0%



24 2010 iNVeStMeNt reView

ASSet-BACkeD SeCuritieS As of year-end 2010, New York Life and its domestic insurance subsidiaries owned $7.3 billion in asset- backed securities, representing four percent of cash and invested assets. Approximately 88 percent of these securities were rated NAiC 1 and are collateralized by a broad range of collateral types. these securities are diversified by issuance year.

Numbersmaynotaddupduetorounding.


asset-backed securities by quality*

december 31, 2010

total


naic 1naic 2naic 3naic 4naic 5naic 6

aaa to a-bbb+ to bbb-bb+ to bb-b+ to b-ccc+ to ccc-cc to d

highest qualityhigh qualitymedium qualitylow qualitylower qualityin or near default

$ 6,471505128

36173

11

$ 7,324 100%

88%7%2%0%2%0%


NoN-AGeNCY reSiDeNtiAL MortGAGe-BACkeD SeCuritieS As of year-end 2010, New York Life and its domestic insurance subsidiaries owned $6.2 billion in non-agency residential mortgage-backed securities, representing four percent of cash and invested assets. the mortgage loans underlying these securities were held predominantly by prime borrowers. the majority of these securities were classified as NAiC 1 and 94 percent are collateralized by fixed-rate mortgage loans.


non-agency residential mortgage-backed securities by quality*

december 31, 2010

total


naic 1

naic 2

naic 3

naic 4

naic 5

naic 6

aaa to a-

bbb+ to bbb-

bb+ to bb-

b+ to b-

ccc+ to ccc-

cc to d

highest quality

high quality

medium quality

low quality

lower quality

in or near default

64%

8%

13%

11%

3%

1%

$ 3,925

510

800

663

195

87

$ 6,180 100%





MortGAGe LoANSAs of year-end 2010, the $15.1 billion of mortgage loans represented $14.4 billion of loans on commercial real estate properties and $0.7 billion of loans on single-family residential properties.

CoMMerCiAL MortGAGe LoANSthe Company’s mortgage loan investment style emphasizes conservative underwriting and a focus on high-quality properties. the commercial mortgage loan portfolio is broadly diversified by both property type and geographic location. the Company employs a proactive portfolio monitoring program with a goal of early identification of potential problems.

the commercial mortgage loan portfolio has historically performed very well and the Company believes that the portfolio is strongly positioned in the current economic environment. As of December 31, 2010, none of the commercial mortgage loans were delinquent. During 2010, only one out of over 600 loans was foreclosed upon, representing $47

million†in outstanding principal.

SiNGLe-fAMiLY reSiDeNtiAL LoANSin addition to the non-agency residential mortgage-backed securities highlighted earlier, New York Life and its domestic insurance subsidiaries owned $0.7 billion‡in fixed-rate residential loans. None of these were sub-prime loans.

eQuitY AND otHer iNtereStSAs of year-end 2010, New York Life and its domestic insurance subsidiaries had $8.5 billion of assets classified as equity and other interests. of this amount, $3.2 billion represented limited partnerships and other interests invested in diverse sectors of the economy. private equity investments of $2.8 billion primarily represent leveraged buyout funds in a range of vintage years that are managed by various third-party private equity groups. Allocations to private equity provide an opportunity to exceed the returns of public equities over the long term.Numbersmaynotaddupduetorounding.


commercial mortgage loans by geographic region*


total

southeast

middle atlantic

pacific

north central

south central

other

$ 3,927

3,199

3,052

1,874

1,307

1,077

$ 14,436 100%

27%

22%

21%

13%

9%

7%


commercial mortgage loans by property type*


total

office buildings

industrial

retail

multi-family

other commercial property

$ 5,237

3,250

3,199

2,585

165

$ 14,436 100%

36%

23%

22%

18%

1%

†Includes$28millionofassetsrelatedtoNewYorkLifeInsuranceandAnnuityCorporation.‡Includes$568millionofassetsrelatedtoNewYorkLifeInsuranceandAnnuityCorporation.§Includes$834millionofassetsrelatedtoNewYorkLifeInsuranceandAnnuityCorporation.

equity and other interests§


various limited partnerships and other interests

private equity

investments in affiliates

real estate

convertible preferred securities

public equity

$ 3,161

2,847

1,850

450

84

82

$ 8,474 100%

37%

34%

22%

5%

1%

1%

total


26

DeriVAtiVeS As of year-end 2010, New York Life and its domestic insurance subsidiaries had certain outstanding derivative positions carried as assets of $846 million.* offsetting these were derivative liabilities of $437 million for a net asset of $409 million. the derivative transactions are entered into to meet the hedging needs of the Company or to replicate permissible investments.

the single largest derivative activity involves the purchase of interest rate options to protect against a rise in interest rates. other derivatives include cross currency swaps, interest rate swaps and forward agreements. Cross currency swaps and forward agreements are typically entered into to convert assets or liabilities of the Company that are designated in a foreign currency into u.S. dollars. interest rate swaps are used to lock in yields of future investments, and to convert fixed-rate investments to floating-rate investments in support of floating-rate liabilities.

New York Life and its domestic insurance subsidiaries control derivative counterparty credit risk through the establishment of collateral support agreements. these agreements require the daily posting of cash collateral by the derivative

counterparties if and when the market value of derivative positions with the counterparty exceeds a predetermined dollar limit. these dollar limits are intentionally set at a low threshold. Credit exposure to each derivative counterparty is combined with other direct credit risk to the same counterparty and managed against prudent credit risk limits.

ASSet/LiABiLitY AND iNVeStMeNt riSk MANAGeMeNtthe long-term promises New York Life makes to policyholders are backed by sound asset/liability management. Because the Company’s liabilities are generally fixed income-like in nature, a well-diversified fixed income portfolio forms the foundation of the investment portfolio. Although the General Account assets collectively support all of our product lines, New York Life’s approach to asset/liability management is founded on the segregation of assets supporting various products offered to clients. these portfolios are specifically tailored to fit the unique interest rate sensitivities and cash flow characteristics associated with each of these product segments. in addition, New York Life takes a comprehensive enterprise view, taking measures to mitigate overall risk exposures at the corporate level.


*Includes$195millionofassetsrelatedtoNewYorkLifeInsuranceandAnnuityCorporation.


2010 fiNANCiAL oVerView


2010 financial oveRvieW

27

the following pages present the consolidated financial results of the Company. for definitions of the Company’s performance measures, please see the Glossary of terms on page 38.

surplus and asset valuation reserves

year in $ billions

2010

2009

2008

2007

2006

16.8

15.0

12.8

14.7

13.9

policyholder benefits and dividends

year

2010

2009

2008

2007

2006

operating earnings

year

2010

2009

2008

2007

2006

year in $ billions

2010

2009

2008

2007

2006

15.5

14.4

13.9

12.9

11.8

operating revenue

investment sales

year in $ billions

2010

2009

2008

2007

2006

32.8

35.0

26.9

25.2

23.7

assets under management

year in $ billions

2010

2009

2008

2007

2006

316.1

286.7

249.1

280.0

261.5

insurance sales

year

2010

2009

2008

2007

2006

individual life insurance in force

year

2010

2009

2008

2007

2006

in $ billions

13.4

12.4

12.3

12.4

11.2

in $ billions

1.44

1.19

1.34

1.28

1.10

3.1

2.7

2.4

2.1

1.9

in $ billions

in $ billions

858.2

816.1

781.2

750.9

694.8


* Policyholders may request a copy of the statutory financial statements audited by an independent accounting firm by contacting the Secretary of the parent, New York Life Insurance Company, 51 Madison Avenue, New York, New York 10010. The individual Company audited financial statements are also available on our Web site (www.newyorklife.com) and from the New York State Insurance Department.

†TheunauditedcondensedconsolidatedstatutorystatementoffinancialpositioncompiledbymanagementreflectstheconsolidationoftheauditedstatutorystatementoffinancialpositionofNewYorkLifeInsuranceCompany(NYLIC)withitsdomesticwhollyownedlifeinsurancesubsidiaries,NewYorkLifeInsuranceandAnnuityCorporation(NYLIAC)andNYLIFEInsuranceCompanyofArizona(NYLAZ).TheconsolidatedstatutorystatementoffinancialpositionhasbeenderivedfromtheindividualseparateauditedstatutorystatementsoffinancialpositionofNYLIC,NYLIAC,andNYLAZwhichwerepreparedinaccordancewithaccountingpracticesprescribedorpermittedbytheNewYork,DelawareorArizonaDepartmentsofInsurance(statutorybasisofaccounting).NYLIC’scashandinvestedassetsandsurplusincludesthesurplusofitsdomesticwhollyownedlifeinsurancesubsidiaries,which,alongwithallothersignificantintercompanytransactions(primarilyinotherassetsandotherliabilities),havebeeneliminatedinconsolidation.Asaresult,amountsintableabovemaynotaddacross.NYLAZisnotauthorizedinNewYorkorMaine,anddoesnotconductinsurancebusinessinNewYorkorMaine.TheNYLAZauditedstatutoryfinancialstatementsareavailableonourWebsiteorfromtheArizonaDepartmentofInsurance.

‡Formoredetailoncashandinvestedassets,seethe2010InvestmentReviewbeginningonpage21.

condensed statutory statement of financial position december 31, 2010

(in millions)

new york life insurance company* consolidated†

new york life insurance

and annuity corporation*

assets

liabilities

surplus and asset valuation reserve

total assets

total liabilities (excluding asset valuation reserve)

total surplus and asset valuation reserve

total liabilities and surplus

cash and invested assets‡

investment income due and accrued

other assets

separate account assets

policy benefit reserves

dividends payable to policyholders

other liabilities

separate account liabilities

asset valuation reserve

surplus

$ 101,933

996

11,612

7,467

90,909

1,330

6,095

7,480

1,477

14,717

$ 68,222

574

6,669

22,252

57,349

–

12,599

21,757

588

5,424

$ 164,820

1,571

3,536

29,719

145,738

1,330

7,112

28,684

2,065

14,717

$ 122,008

105,814

16,194

$ 122,008

$ 97,717

91,705

6,012

$ 97,717

$ 199,646

182,864

16,782

$ 199,646

CoNSoLiDAteD StAtutorY StAteMeNt of fiNANCiAL poSitioN

consolidated statutoRy stateMent of financial Position

28


december 31, 2009

(in millions)

new york life insurance company* consolidated†

new york life insurance

and annuity corporation*

assets

liabilities

surplus and asset valuation reserve

total assets

total liabilities (excluding asset valuation reserve)

total surplus and asset valuation reserve

total liabilities and surplus

cash and invested assets

investment income due and accrued

other assets

separate account assets

policy benefit reserves

dividends payable to policyholders

other liabilities

separate account liabilities

asset valuation reserve

surplus

$ 98,846

1,039

11,342

6,608

88,782

1,276

6,725

6,534

832

13,686

$ 63,666

549

5,983

18,635

52,389

–

12,767

18,188

491

4,998

$ 157,605

1,589

3,335

25,243

138,771

1,276

8,443

24,273

1,323

13,686

$ 117,835

103,317

14,518

$ 117,835

$ 88,833

83,344

5,489

$ 88,833

$ 187,772

172,763

15,009

$ 187,772

CoNSoLiDAteD StAtutorY StAteMeNt of fiNANCiAL poSitioN 29


ManageMent’s discussion of financial ResPonsiBility

MANAGeMeNt’S DiSCuSSioN of fiNANCiAL reSpoNSiBiLitY

Management is responsible for the preparation and integrity of the financial information presented in the Annual Report. the Company has complied with the revised NAiC Model Audit rule and although we are not an SeC registrant, we have elected to comply voluntarily with Section 302 of the Sarbanes-oxley Act of 2002, which identifies management’s responsibilities over its financial statements and requires management to certify as to the integrity of the financial statements and the effectiveness of internal controls. our statement to that effect can be viewed on the Company’s web site, www.newyorklife.com.

the Company maintains a strong system of internal accounting controls, monitored by our corporate staff of professionally trained internal auditors. we encourage strong and effective corporate governance from our Board of Directors, continuously review our business results and strategic choices, and focus on financial stewardship. the Company’s controls are designed to provide reasonable assurance that assets are safeguarded and that transactions and events are recorded properly. the Company has evaluated the effectiveness of its controls and procedures for financial reporting purposes as of December 31, 2010 and 2009, and has concluded that they are effective.

the financial information contained in this Report has been derived from financial statements that have been audited by the Company’s independent auditors, in accordance with auditing standards generally accepted in the united States of America.

the Audit Committee of the Board of Directors of New York Life insurance Company, which is comprised exclusively of Directors who are not officers or employees of the Company, meets regularly with management, the internal auditors and the independent auditors to provide oversight so that management fulfills its responsibilities for accounting controls and preparation of financial statements.

theodore A. Mathas Michael e. Sproule Chairman of the Board, president and executive Vice president and Chief executive officer Chief financial officer April 1, 2011 April 1, 2011

30


offices of neW yoRk life, its MaJoR suBsidiaRies and affiliates

offiCeS of New York Life

New York Life iNsuraNce compaNYwww.newyorklife.com New York Life maintains more than 120 offices throughout the country, as well as a network of dedicated customer service cen-ters. For questions about our products and services, please call your New York Life agent or 800-692-3086.

home office51 madison avenue new york, ny 10010 212-576-7000

home office – Westchester campus1 rockwood road sleepy hollow, ny 10591 914-846-7000

general offices

ALABAMAbirmingham general office 2311 highland avenue south suite 100 birmingham, al 35205 205-933-0302

huntsville general office amsouth center 200 clinton avenue nw suite 600 huntsville, al 35801 256-533-9770

mobile general office 1110 montlimar drive 10th floor, suite 1010 mobile, al 36609 251-460-4606

montgomery general office 4121 carmichael road suite 501 montgomery, al 36106 334-244-1696

ALASKAalaska general office 701 west 8th avenue suite 900 anchorage, ak 99501 907-279-6471

ARIZONAarizona general office 14850 north scottsdale road suite 400 scottsdale, aZ 85254 480-840-2000

tuscon general office one south church avenue suite 1230 tuscon, aZ 85701 520-620-5300

ARKANSASarkansas general office 10810 executive center drive suite 301 little rock, ar 72211 501-223-1600

CALIFORNIAcentral california general office 7112 north fresno street suite 300 fresno, ca 93720 559-447-3900

central coast general office 300 east esplanade drive suite 2050 oxnard, ca 93036 805-656-4598

covina valley general office 3201 temple avenue suite 200 pomona, ca 91768 909-598-2333

east bay general office 2633 camino ramon suite 525 san ramon, ca 94583 925-866-4500

fullerton general office 675 placentia avenue suite 250 brea, ca 92821 714-255-5100

greater san francisco general office 425 market street suite 1600 san francisco, ca 94105 415-393-6060

inland empire general office tri-city corporate center 451 east vanderbilt way suite 400 san bernardino, ca 92408 909-387-1900

los angeles general office 6300 wilshire boulevard suite 2200 los angeles, ca 90048 323-782-3000

northern california general office 2999 douglas boulevard suite 350 roseville, ca 95661 916-774-6200

orange coast general office 2020 main street suite 200 irvine, ca 92614 949-797-2400

san diego general office 8910 university center lane suite 300 san diego, ca 92122 858-623-8600

san fernando valley general office 6320 canoga avenue suite 900 woodland hills, ca 91367 818-884-4009

silicon valley general office 1731 technology drive suite 400 san Jose, ca 95110 408-452-6000

stockton general office 3255 west march lane suite 300 stockton, ca 95219 209-955-2400

coloradocolorado general office 6850 west 52nd avenue suite 200 arvada, co 80002 303-403-5600

CONNECTICUTconnecticut valley general office 360 bloomfield avenue suite 402 windsor, ct 06095 860-285-8884

southern connecticut general office merritt & corporate park 99 hawley lane suite 1400 stratford, ct 06614 203-385-5100

FLORIDAJacksonville general office 7880 gate parkway suite 200 Jacksonville, fl 32256 904-997-3000

orlando general office 200 south orange avenue suite 2900 orlando, fl 32801 407-999-0921

south florida general office lake shore plaza ii 1300 concord terrace 5th floor sunrise, fl 33323 954-772-5200

tampa general office 3109 west dr. martin luther king Jr. boulevard suite 300 tampa, fl 33607 813-281-0100

GEORGIAcentral georgia general office 6055 lakeside commons drive suite 300 macon, ga 31210 478-477-3222

greater atlanta general office 5909 peachtree dunwoody road building d. suite 1100 atlanta, ga 30328 770-730-2000

31



savannah general office 9 park of commerce boulevard suite 200 savannah, ga 31405 912-355-3353

HAWAIIhonolulu general office 841 bishop street suite 1400 honolulu, hi 96813 808-538-3811

IDAHOidaho general office pioneer plaza one 1109 west myrtle street suite 300 boise, id 83702 208-343-4648

ILLINOISchicago north shore general office 520 lake cook road room 600 deerfield, il 60015 847-317-9200

greater chicago general office highland landmark iii 3010 highland parkway suite 700 downers grove, il 60515 630-795-5000

western illinois general office 1051 perimeter drive suite 750 schaumburg, il 60173 847-585-4900

INDIANAindiana general office 11595 north meridian street suite 850 carmel, in 46032 317-580-8200

IOWAcedar rapids general office 4250 river center court ne cedar rapids, ia 52402 319-395-9525

des moines general office 4900 university avenue suite 225 west des moines, ia 50266 515-453-1300

KANSASgreater kansas city general office 7500 college boulevard suite 800 overland park, ks 66210 913-451-9100

kansas general office 125 north market suite 1600 wichita, ks 67202 316-262-0671

KENTUCKYkentucky general office 9300 shelbyville road suite 1250 louisville, ky 40222 502-327-8589

LOUISIANAlouisiana general office 2431 south acadian thruway suite 350 baton rouge, la 70808 225-387-9300

new orleans general office 639 loyola avenue suite 1900 new orleans, la 70113 504-569-0500

shreveport general office louisiana bank tower 401 edwards street suite 1700 shreveport, la 71101 318-222-4143

MAINEmaine general office 500 southborough drive suite 300 south portland, me 04106 207-871-7474

MARYLANDbaltimore general office timonium ii building 1954 greenspring drive suite 700 towson, md 21093 410-321-6161

greater washington general office democracy center 6901 rockledge drive suite 800 bethesda, md 20817 301-214-6600

MASSACHUSETTSboston general office 800 south street suite 600 waltham, ma 02453 781-647-4100

MICHIGANgreater detroit general office 4000 town center suite 1300 southfield, mi 48075 248-352-0620

michigan general office 333 bridge street nw suite 205 grand rapids, mi 49504 616-752-4500

MINNESOTAminnesota general office 3600 minnesota drive suite 100 edina, mn 55435 952-897-5000

MISSISSIPPImississippi general office 1052 highland colony parkway suite 101 ridgeland, ms 39157 601-607-1600

MISSOURIst. louis general office city place one one city place drive suite 260 creve coeur, mo 63141 314-567-9080

MONTANAmontana general office 401 north 31st street suite 800 billings, mt 59101 406-255-6300

NEBRASKAnebraska general office one valmont plaza suite 100 omaha, ne 68154 402-496-6400

NEvADAlas vegas general office 3993 howard hughes parkway suite 500 las vegas, nv 89169 702-796-2000

reno general office 50 west liberty street suite 500 reno, nv 89501 775-323-0751

NEW HAMPSHIREnew hampshire general office 1155 elm street 8th floor manchester, nh 03101 603-669-5957

NEW JERSEYnew Jersey general office 250 pehle avenue suite 503 saddle brook, nJ 07663 201-845-6900

south Jersey general office 1820 chapel avenue, west suite 280 cherry hill, nJ 08002 856-488-6900

NEW MExICOnew mexico general office 6565 americas parkway ne suite 500 albuquerque, nm 87110 505-888-2000

NEW YORKalbany general office 26 century hill drive suite 301 latham, ny 12110 518-220-4200

brooklyn general office one metro tech center 17th floor brooklyn, ny 11201 718-692-5700

buffalo-erie general office 6400 main street suite 110 williamsville, ny 14221 716-631-2323

finger lakes general office 375 woodcliff drive 2nd floor fairport, ny 14450 585-248-6700

greater new york general office 420 lexington avenue 14th & 15th floors new york, ny 10170 646-227-8888

32


(CoNtiNueD)



hudson valley general office 460 temple hill road new windsor, ny 12553 845-569-8200

long island general office 576 broad hollow road melville, ny 11747 631-391-2900

manhattan general office 120 broadway 37th floor new york, ny 10271 212-261-0200

queens general office 1983 marcus avenue suite 210 lake success, ny 11042 516-327-2900

river view general office 390 berry street 4th floor brooklyn, ny 11211 718-486-4600

westchester general office 411 theodore fremd avenue rye, ny 10580 914-934-5500

NORTH CAROLINAcharlotte general office 6100 fairview road suite 400 charlotte, nc 28210 704-371-8500

raleigh general office 3200 beechleaf court suite 820 raleigh, nc 27604 919-781-3100

NORTH DAKOTAnorth dakota general office 2000 44th street south suite 501 fargo, nd 58103 701-237-4311

OHIOcincinnati general office 8044 montgomery road suite 400 cincinnati, oh 45236 513-621-9999

columbus general office 485 metro place south 3rd floor, suite 350 dublin, oh 43017 614-793-2121

northern ohio general office 6000 lombardo center suite 300 seven hills, oh 44131 216-520-1345

toledo general office 1684 woodlands drive suite 100 maumee, oh 43537 419-887-4700

OKLAHOMAoklahoma city general office 3030 nw expressway suite 1800 oklahoma city, ok 73112 405-813-7400

tulsa general office 2431 east 61st street suite 650 tulsa, ok 74136 918-587-3301

OREGONgreater oregon general office 500 liberty street se suite 500 salem, or 97301 503-585-4820

PENNSYLvANIAconstitution general office 555 east city line avenue suite 800 bala cynwyd, pa 19004 610-660-7600

greater philadelphia general office pennsylvania business campus 100 witmer road suite 100 horsham, pa 19044 215-441-3240

harrisburg general office 3401 north front street 1st floor harrisburg, pa 17110 717-232-2555

northeastern pennsylvania general office 220 penn avenue suite 100 scranton, pa 18503 570-969-3111

pittsburgh-Johnstown general office 225 west station square drive suite 640 pittsburgh, pa 15219 412-392-3600

valley forge general office 1205 westlakes drive suite 180 berwyn, pa 19312 484-595-2400

SOUTH CAROLINAcharleston general office 200 meeting street suite 202 charleston, sc 29401 843-720-1900

greenville general office 935 south main street suite 400 greenville, sc 29601 864-213-5433

SOUTH DAKOTAgreat plains general office 5101 south nevada avenue suite 200 sioux falls, sd 57108 605-373-1400

TENNESSEEknoxville general office two center square 625 south gay street suite 400 knoxville, tn 37902 865-523-0741

memphis general office renaissance center 1715 aaron brenner drive suite 204 memphis, tn 38120 901-761-1810

nashville general office 840 crescent centre drive suite 500 franklin, tn 37067 615-224-9500

TExASaustin general office 6200 bridgepoint parkway suite 300 austin, tx 78730 512-329-4200

dallas general office 12201 merit drive 10th & 11th floors suite 1000 dallas, tx 75251 972-387-2929

el paso general office 201 east main street suite 600 el paso, tx 79901 915-534-3200

fort worth general office cater burgess plaza 777 main street suite 3300 fort worth, tx 76102 817-336-2565

houston general office 1330 post oak boulevard suite 1900 houston, tx 77056 713-961-4545

san antonio general office 8000 ih-10 west suite 800 san antonio, tx 78230 210-342-7878

south texas general office 5350 south staples drive suite 101 corpus christi, tx 78411 361-994-1000

west texas general office 6121 79th street unit a lubbock, tx 79424 806-698-5600

UTAHutah general office south towne corporate center 1 150 west civic center drive suite 600 sandy, ut 84070 801-567-7400

33



vERMONT vermont general office the park at water tower hill 463 mountain view drive colchester, vt 05446 802-655-8300

vIRGINIAnorfolk general office 999 waterside drive suite 900 norfolk, va 23510 757-628-1800

northern virginia general office 8075 leesburg pike suite 200 vienna, va 22182 703-749-3700

richmond general office 4400 cox road suite 110 glen allen, va 23060 804-935-5300

roanoke general office 111 franklin plaza 5th floor roanoke, va 24011 540-982-2241

WASHINGTONeastern washington general office 1009 north center parkway suite 200 kennewick, wa 99336 509-783-7461

seattle general office 11400 se 8th street suite 300 bellevue, wa 98004 425-462-4800

tacoma general office 1201 pacific avenue suite 1600 tacoma, wa 98402 253-597-7100

WISCONSIN milwaukee general office 135 south 84th street suite 201 milwaukee, wi 53214 414-256-8700

wisconsin general office 999 fourier drive suite 300 madison, wi 53717 608-831-4416

WYOMING wyoming general office mcmurry business park 6000 east 2nd street suite 2001 casper, wy 82609 307-266-1485

LONG-TERM CARE INSURANCE DIvISION6200 bridgepoint parkway suite 400 austin, tx 78730 800-224-4582

AARP LIFE INSURANCE AND LIFETIME INCOME PROGRAMSwww.nylaarp.com 5505 west cypress street tampa, fl 33607 800-695-5164

GROUP MEMBERSHIP ASSOCIATION DIvISION1 rockwood road sleepy hollow, ny 10591 800-695-4226 (disability insurance claims) 800-792-9686 (life insurance claims)

MAINSTAY INvESTMENTS*www.mainstayinvestments.com169 lackawanna avenue parsippany, nJ 07054 800-mainstay

New York Life iNvestmeNtswww.nylim.comNew York Life Investments’ retail products are available to consum-ers through New York Life’s career agents. For questions and further information, call your New York Life agent or 800-692-3086. To contact one of New York Life Investments’ companies directly, please refer to the list below.

home office(headquarters, real estate group, fixed income investment group and new york life capital partners) 51 madison avenue new york, ny 10010 212-576-7000

NEW YORK LIFE CAPITAL PARTNERS51 madison avenue 16th floor new york, ny 10010 212-576-6500

NEW YORK LIFE RETIREMENT PLAN SERvICESwww.nylim.com/retirement 690 canton street westwood, ma 02090 781-619-2000

MADISON SqUARE INvESTORS LLC www.msinvestors.com 1180 avenue of the americas new york, ny 10036 212-938-6500

MACKAY SHIELDS LLCwww.mackayshields.com 9 west 57th street new york, ny 10019 212-758-5400

ICAP LLCwww.institutionalcap.com 225 west wacker drive suite 2400 chicago, il 60606 312-424-9100

MCMORGAN & CO. LLCwww.mcmorgan.com one front street suite 500 san francisco, ca 94111 415-788-9300

MADISON CAPITAL FUNDING LLCwww.mcfllc.com 30 south wacker drive suite 3700 chicago, il 60606 312-596-6900

PRIvATE ADvISORS, LLCwww.privateadvisors.com 1800 bayberry court richmond, va 23226 804-289-6000

New York Life iNterNatioNaL, LLcNew York Life does business in markets other than the United States through its international subsidiaries In Mexico and Taiwan and a joint venture in India.

home office 51 madison avenue new york, ny 10010 212-576-7000

INDIAmax new york life insurance company limited www.maxnewyorklife.com headquarters: 11th floor, dlf square Jacaranda marg, dlf city, phase ii gurgaon 122 002, haryana, india 91-124-256-1717

MExICOseguros monterrey new york life, s.a. de c.v. www.seguros-monterrey,com.mx headquarters: presidente masaryk #8 col. bosques de chapultepec 11588 mexico, d.f. 52-55-5326-9101

TAIWANnew york life insurance taiwan corporation www.nylitc.com.tw headquarters: 14/f. no. 133 min sheng east road section 3 taipei, taiwan, roc 886-2-2719-5277

34

*MainStayInvestmentsisaregisteredservicemarkandnameunderwhichNewYorkLifeInvestmentManagementLLCdoesbusiness.


(CoNtiNueD)


senioR executive officeRs[ AS of ApriL 1, 2011 ]

SeNior exeCutiVe offiCerS

Chairman of the Board, President and Chief Executive OfficerTheodore A. Mathas*

Executive Vice President and Chief Administrative OfficerFrank M. Boccio*

Executive Vice President, Chief Legal Officer and General CounselSheila K. Davidson*

Executive Vice President and Chief Investment OfficerJohn Y. Kim*

Executive Vice President and Chief Financial OfficerMichael E. Sproule*

Executive Vice PresidentsChristopher O. Blunt*

Richard L. Mucci*

Mark W. Pfaff *

Senior Vice President and General AuditorMark E. Arning

Senior Vice President, Finance and ControllerJohn T. Fleurant

Senior Vice President and Chief Human Resources OfficerBarry A. Schub*

Senior Vice President and Chief Information OfficerEileen T. Slevin*

Senior Vice President and Chief ActuaryJoel M. Steinberg

Senior Vice President, Deputy General Counsel and SecretarySusan A. Thrope*

First Vice President and TreasurerRichard J. Witterschein

Senior Vice PresidentsJames T. Bain Patricia L. Barbari Joseph M. Bennett Alexander A. Burbatsky John R. Cassagne Leonard J. Elmer Thomas F. English Susan B. Ericksen Michael G. Gallo Solomon Goldfinger*

Michael J. Gordon Robert J. Hebron E. Thomas Johnson Thomas W. Kelly Angela T. Kyle Steven D. Lash Akshay Madan Elizabeth W. McCarthy Patrick L. McCraw Allyson McDonald Barbara J. McInerney Robert McKinley John R. Meyer Gary J. Miller George Nichols III *

Katherine R. O’Brien Michael M. Oleske Paul T. Pasteris*

Gideon A. Pell Gerard A. Rocchi Donald A. Salama Albert J. Schiff Michael F. Scovel Arthur H. Seter Ronald J. Terry Benjamin I. Woloshin

NEW YORK LIFE INVESTMENTS

Chairman and Chief Executive OfficerJohn Y. Kim*

Executive Vice PresidentsYie-Hsin Hung Drew E. Lawton Frank J. Ollari

Senior Managing Director and General CounselGeorge S. Shively

Senior Managing Director and Chief Financial Officer John M. Grady

Senior Managing Directors Sara L. Badler Jefferson C. Boyce David J. Castellani Trevor J. Clark Thomas A. Clough Allan Dowiak Stephen P. Fisher Thomas J. Girard Anthony R. Malloy Alison H. Micucci Susan L. Paternoster Richard C. Schwartz Mark W. Talgo Hugh J. Wade Julia A. Warren Jae S. Yoon

INSTITuTIONAL CAPITAL LLC

Chief Executive Officer and Chief Investment Officer Jerrold K. Senser

MACKAY SHIELDS LLC

Chief Operating Officer Lucille Protas

MADISON SquARE INVESTORS LLC

Chief Executive Officer Michael Maquet-Diafouka

McMORGAN & COMPANY LLC

Chief Executive Officer John F. Santaguida

NEW YORK LIFE CAPITAL PARTNERS LLC

Chief Executive Officer Thomas M. Haubenstricker

NEW YORK LIFE INTERNATIONAL, LLCChairman and Chief Executive OfficerRichard L. Mucci*

Vice Chairman and Chief Executive Officer, Latin AmericaWilliam Beaty

Executive Vice President and Chief Executive Officer, Asia RegionGary Bennett

Executive Vice President and Chief Financial Officer Craig A. Merdian

Senior Vice President and General Counsel Maria G. Gutierrez

Senior Vice PresidentsScott L. Berlin Thomas Burke Michael D. Burson May Chun Shauna Collingwood Camille Condon Annette Donselaar Ka Luk Stanley Tai

35

*MemberoftheCompany’sExecutiveManagementCommittee.


wiLLiAM G. wALter elected as a director in 2009, he is the former chairman, president and chief executive officer of fMC Corporation. He is a member of the board’s Corporate organization & Compensation, insurance & operations and investment Committees.

MArk L. feiDLer elected as a director in 2006, he is a founding partner in MSouth equity partners and a former president and chief operating officer of BellSouth Corporation. Mr. feidler chairs the board’s Governance Committee and is a member of the investment and insurance & operations Committees.

ADMirAL JoSepH w. prueHer elected as a director in 2001, he is the James r. Schlesinger Distinguished professor at the university of Virginia, Admiral u.S. Navy (ret.) and former u.S. Ambassador to the people’s republic of China. Admiral prueher chairs the board’s Corporate organization & Compensation Committee and is a member of the Governance and Audit Committees.

GArY e. weNDLANDt elected as a director in 2007, he served through December 2010 as vice chairman of the board and chief investment officer of New York Life.

keNt B. foSter elected as a director in 1995, he is the former chairman and chief executive officer of ingram Micro inc. Mr. foster is a member of the board’s Governance, Audit and Corporate organization & Compensation Committees.

tHoMAS C. SCHieVeLBeiN elected as a director in 2006, he is the former president of Northrop Grumman Newport News. Mr. Schievelbein is a member of the board’s insurance & operations, Audit, and Corporate organization & Compensation Committees. He currently serves as the board’s lead director.

rALpH De LA VeGA elected as a director in 2009, he is president and chief executive officer of At&t Mobility and Consumer Markets. Mr. de la Vega is a member of the board’s insurance & operations Committee.

CHriStiNA A. GoLD elected as a director in 2001, she is the former president, chief executive officer, and director of the western union Company. Mrs. Gold chairs the board’s insurance & operations Committee and is a member of the Audit and Corporate organization & Compensation Committees.

CoNrAD k. HArper He served as a director from 1992 to 1993 and rejoined the board in 1996. He is a retired partner of the law firm of Simpson thacher & Bartlett LLp. Mr. Harper is a member of the board’s Governance and investment Committees.

tHeoDore A. MAtHAS elected as a director in 2006, he is chairman of the board, president and chief executive officer of New York Life.

BettY C. ALewiNe elected as a director in 1998, she is the former president and chief executive officer of CoMSAt Corporation. Mrs. Alewine chairs the board’s Audit Committee and is a member of the Governance and investment Committees.

roBert M. BAYLiS elected as a director in 1996, he is a former vice chairman of CS first Boston. Mr. Baylis chairs the board’s investment Committee and is a member of the Governance and Corporate organization & Compensation Committees.

S. tHoMAS MoSer elected as a director in 2008, he is a former vice chairman of kpMG, LLp, the u.S. member firm of kpMG international. Mr. Moser is a member of the board’s Audit, investment and insurance & operations Committees.

BoArD of DireCtorS

BoaRd of diRectoRs[ AS of DeCeMBer 31, 2010 ]

36


BACK, LEFT TO RIGHT William G. Walter; Mark L. Feidler; Admiral Joseph W. Prueher; Gary E. Wendlandt; Kent B. Foster; Thomas C. Schievelbein

FRONT, LEFT TO RIGHT Ralph de la Vega; Christina A. Gold; Conrad K. Harper; Theodore A. Mathas; Betty C. Alewine; Robert M. Baylis; S. Thomas Moser

BoArD of DireCtorS 37


Policyholder Benefits and Dividends*– include domestic insurance operations and are presented on a statutory basis. Benefits primarily include death claims paid to beneficiaries, annuity payments and surrender benefits. Dividends are payments made to eligible policyholders from divisible surplus.

Surplus and Asset Valuation Reserve – consists of funds that ensure we can meet our future obligations to policyholders and finance our growth. total surplus is one of the key indicators of the Company’s long-term financial strength and stability. this indicator includes statutory surplus and the asset valuation reserve (AVr) of the Company on a consolidated basis (also referred to as Statutory Capital). Statutory surplus represents assets minus liabilities of the Company based on the accounting rules specified by the state insurance regulators. the AVr is required by insurance regulators to stabilize surplus from defaults on bonds, mortgage loans and real estate, along with fluctuations in the market value of equity securities. Changes in the AVr are accounted for as direct increases or decreases in surplus. the AVr on a consolidated basis includes the AVr of New York Life’s domestic insurance subsidiaries.

Operating Earnings† – the key measure used for management purposes to track the Company’s profitability from ongoing operations. operating earnings equal GAAp net income adjusted for the removal, net of applicable tax and Deferred Acquisition Costs (DAC), of: (i) gains and losses from investments and related adjustments. Net income is further adjusted for, net of applicable tax and DAC: (ii) the inclusion of capital gains and/or unassigned surplus that support policyholder dividends; (iii) the inclusion of certain interest maintenance reserve amortization‡; (iv) the revaluation of embedded derivatives on certain annuity reserve guarantees; (v) the removal of costs directly related to the restructuring of our international operations; (vi) certain deferred tax items related to international operations and the 2010 healthcare bill; and (vii) other non-operating items.

Operating Revenue§– the revenue the Company has generated from its domestic and international business and includes statutory premiums for life and annuity products, net margins on guaranteed products and fee income associated with the asset management business. premiums on most life insurance products and considerations on immediate annuity products

(defined as Guaranteed Lifetime income insurance) are weighted at 100 percent. Annuity considerations on investment income products, all BoLi policies and certain ppVuL policies where premium is not expected to recur annually are weighted at 10 percent. the premiums and fees associated with our international subsidiaries are included at their ownership percentage.

Insurance Sales – represent annualized first-year premium on products with significant mortality or morbidity risk, where a sale is generally counted when the policy is paid. Certain insurance sales are discounted to reflect the relative importance of these sales as follows: all single premium and all CoLi sales are counted at 50 percent, except for CoLi private placement Variable universal Life and BoLi sales (which are counted at 10 percent). insurance sales are generated from both our domestic and international businesses (where sales are reported at ownership percentage).

Investment Sales – represent current year purchase of products primarily having market risk, where a sale is counted when money is received. investment sales include individual accumulation annuities, mutual funds and third-party asset management. international investment sales are reported at ownership percentage.

Individual Life Insurance In Force**–the sum of the face amounts of domestic and international life insurance contracts outstanding at a given time.

Assets Under Management – consists of assets of the Company’s domestic and international insurance operations and assets the Company manages or administers in return for a fee from third-party investors, including mutual funds, separately managed accounts and retirement plans.

GLoSSArY of terMS

glossaRy of teRMs

38

MainStay funds are managed by New York Life investment Management, LLC, an indirect wholly owned subsidiary of New York Life insurance Company, and distributed through NYLife Distributors LLC, 169 Lackawanna Avenue, parsippany, NJ, 07054, a wholly owned subsidiary of New York Life insurance Company, Member fiNrA/SipC.

For more information about MainStay Funds, call 800-MAINSTAY (624-6782) for a prospectus, and, if available, a summary prospectus. Investors are asked to consider the investment objectives, risks and charges and expenses carefully before investing. The prospectus, and, if available, a summary prospectus, contains this and other information about the investment company. Please read the prospectus, and, if available, a summary prospectus, carefully before investing.

MainStay investments is a registered service mark and name under which New York Life investment Management LLC does business. MainStay investments, an indirect wholly owned subsidiary of New York Life insurance Company, provides investment advisory products and services.

Variable annuities are issued by New York Life insurance and Annuity Corporation and distributed by NYLife Distributors, LLC, Member fiNrA/SipC and are offered by a prospectus. Contact your financial professional or call 800-598-2019 for a prospectus.

investors are asked to consider the investment objectives, risks, charges and expenses of the investments carefully before investing. Both the product and the underlying fund prospectuses contain this and other information about the product and underlying investment option. please read the prospectus carefully before investing.

* NYLIC’spolicyholderbenefitsanddividendswere$8.0billionand$7.6billionforthetwelvemonthsendedDecember31,2010and2009,respectively.NYLIACpolicyholderbenefitswere$5.4billionand$4.8billionatDecember31,2010and2009,respectively.Dividendsarenotguaranteed.

† AreconciliationofoperatingearningstotheCompany’sconsolidatedGAAPnetincomeisavailableontheCompany’sWebsite(www.newyorklife.com).

‡ InterestMaintenanceReserve(IMR):Inaccordancewithstatutoryaccountingprinciples,interest-relatednetrealizedcapitalgains/lossesonalltypesoffixedincomeinvestmentsareaccumulatedinthisreserve.Thesecapitalgains/lossesarethenamortizedintooperatingearningsovertheremainingmaturityoftheinvestment,assumingitwasnotsold.

§ AreconciliationofoperatingrevenuetotheCompany’sconsolidatedGAAPrevenueisavailableontheCompany’sWebsite(www.newyorklife.com).

** TheCompany’sindividuallifeinsuranceinforcetotaled$858.2billionatDecember31,2010(including$160.7billionforNYLIAC).

A gargoyle peers out from the heights of New York Life’s landmark Home Office building in New York City.

New YOrk Life iNsurANCe COmpANY51 mAdisON AveNue, New YOrk, NY 10010

www.NewYOrkLife.COm800.692.3086

7777 (4/11)

new york life • 2010 annual report annuities/annual... · 2011-05-13 · new york life • 2010...

Documents