Filed Under:Annuities, Variable

New York Life's dividends to policyholders to rise 8% in 2013

Photo credit: jscreationzs
Photo credit: jscreationzs

New York Life Insurance Company, New York, announced in its third quarter earnings results, released Monday, that the company's dividends to participating policyholders will increase by $100 million in 2013, an 8% rise over the company’s 2012 payout. 

Mark Pfaff, New York Life’s executive vice president of agency operations, says the dividend distribution is in part a result of the “ongoing strength” of the company’s whole life portfolio, robust earnings, operating cost savings and growth of the company’s capital surplus, which now exceeds $19 billion.

Moody’s Strauss believes, however, that if New York Life and other mutual life insurance companies can continue to maintain high dividend payments to policyholders, then the company should be able to insulate itself in some measure from low interest rates, which tend to depress insurers’ earnings on investments and the credit ratings they can offer policyholders on their products.

“Mutual insurers will be impacted less than other companies [by low interest rates] next year because dividends let them absorb some of the negative effect,” he says. “Though not immune to the interest rate environment, the mutual companies are more protected against low interest rates than publicly held insurers.”

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Nichole Morford

Nichole Morford
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