Fitch Affirms New York Life's Ratings.CHICAGO -- Fitch affirmed the ratings of New York Life Insurance Company The New York Life Insurance Company (NYLIC) is the largest mutual life-insurance company in the United States, and one of the largest life insurers in the world.[3] (NYLIC NYLIC New York Life Insurance Company NYLIC National Youth Leader Instructor Camp (now National Advanced Youth Leader Experience; Boy Scouts of America) ) and its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Life Insurance and Annuity Corporation - together referred to as New York Life. The Rating Outlook is Stable. See a complete list of ratings below. The affirmation recognizes New York Life's excellent market position in traditional life insurance, where Fitch believes the company has a competitive advantage through its career agency network. Other factors considered in Fitch's rating rationale include solid operating performance, very strong capitalization and a high-quality, liquid asset portfolio. Fitch believes New York Life has strong, high-quality, stable earnings that are in line with expectations. However, future operating earnings growth will be somewhat depressed by pension costs. In 2005, pension costs lowered GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). operating earnings by $158 million and are expected to depress future operating earnings by comparable amounts subject to pension plan assumptions. The commercial paper and surplus notes ratings are based on the organization's moderate consolidated financial leverage and strong debt-repayment capabilities. On Dec. 31, 2005, total consolidated financial leverage (i.e., surplus notes plus commercial paper outstanding divided by adjusted GAAP equity) was 8.1%. The 'AAA' ratings on the note programs and related issues recognize the trust obligations are secured solely by funding agreements issued by NYLIC with cash flow structures that enable the trustees to pay the principal and interest on the notes. Thus, the note programs are dependent upon NYLIC's credit quality and are assigned a rating equal to the company's IFS rating. New York Life is one of the largest life insurance organizations in the United States. Individual life insurance and annuity, investment management and international operations make up the company's three primary lines of business. New York Life also provides group membership association coverage, long-term care insurance and is the exclusive provider of life insurance to the AARP AARP, a nonprofit, nonpartisan national organization dedicated to "enriching the experience of aging"; membership is open to people age 50 or older. Founded in 1958 by Ethel Percy Andrus as American Association of Retired Persons, AARP now has over 30 million . The following ratings are affirmed with a Stable Rating Outlook by Fitch. New York Life Insurance Company -- Issuer default rating at 'AA+'; -- Insurer financial strength at 'AAA'; -- Surplus notes at 'AA'. New York Life Insurance and Annuity Corporation -- Insurer financial strength at 'AAA'. NYL NYL Nylon NYL New York Life NYL New York Liberty NYL New York Lottery NYL National Youth Leadership NYL MCAS Yuma (airport code) Capital Corporation -- Commercial paper at 'F1+'. Fitch affirms the following issues at 'AAA' with a Stable Outlook: New York Life Funding -- EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 300,000,000 series 2001-1 fixed-rate notes due May 18, 2006 -- US$200,000,000 series 2001-2 floating-rate notes due May 18, 2006 -- USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 425,000,000 series 2001-3 floating-rate notes due Dec. 6, 2006 -- EUR300,000,000 series 2002-1 fixed-rate notes due Feb. 16, 2009 -- US$257,000,000 series 2003-1 floating-rate notes due April 14, 2008 -- US$157,484,800 series 2003-3 0% notes due Dec. 15, 2028 -- GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 300,000.000 series 2003-5 fixed-rate notes due Oct. 10, 2008 -- CHF CHF In currencies, this is the abbreviation for the Swiss Franc. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 400,000,000 series 2005-1 fixed-rate notes due Feb. 8, 2010 -- GBP300,000.000 series 2005-2 fixed-rate notes due Feb. 3, 2015 -- GBP130,000.000 series 2005-3 floating-rate notes due May 18, 2006 -- GBP100,000.000 series 2005-4 floating-rate notes due June 27, 2006 New York Life Global Funding -- US$500,000,000 series 2003-1 fixed-rate notes due Sept. 15, 2013 -- US$500,000,000 series 2004-1 fixed-rate notes due Jan. 15, 2009 -- US$250,000,000 series 2004-2 floating-rate notes due Feb. 26, 2007 -- GBP250,000,000 series 2004-3 fixed-rate notes due June 30, 2009 -- US$150,000,000 series 2005-1 floating-rate notes due May 18, 2014 -- US$500,000,000 series 2005-2 floating-rate notes due Aug. 16, 2010 -- US$500,000,000 series 2005-3 floating-rate notes due Sept. 28, 2012 -- US$200,000,000 series 2005-4 floating-rate notes due Dec. 19, 2008 -- GBP350,000,000 series 2006-1 fixed-rate notes due Jan. 17, 2013 -- CHF450,000,000 series 2006-1 fixed-rate notes due Feb. 22, 2016 -- GBP185,000,000 series 2006-2 floating-rate notes due March 15, 2009 Fitch assigns the following rating with a Stable Rating Outlook: New York Life Global Funding -- C$500,000,000 series 2006-3 floating-rate notes due April 20, 2011 'AAA'. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, 'www.fitchratings.com'. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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