Fitch Affs New York Life's Rtgs; Assigns 'AAA' to Note Programs & Issues.CHICAGO -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has affirmed all ratings for 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 subsidiaries (all ratings specified below). Fitch has also assigned an 'AAA' rating to both New York Life Funding and New York Life Global Funding and related selected outstanding issues. The Rating Outlook is Stable. The primary factors supporting the ratings are the organization's strong market positions, including individual life insurance where New York Life maintains an extremely strong career agency network. In recent years, the company has enjoyed strong market conditions in which many competitors exited both the whole life insurance business and abandoned the career agency system. During this time, New York Life has embraced both whole life and career agents, positioning it to capitalize on the changing strategies of many industry participants. Other factors considered in Fitch's rating rationale include solid operating performance, very strong capitalization, and a high-quality, liquid asset portfolio. Fitch anticipates that future operating earnings growth will be somewhat depressed by pension costs. In 2003, pension costs lowered GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). operating earnings by $85 million and is expected to depress future operating earnings by 5% - 15% depending upon pension plan assumptions. GAAP operating earnings (excluding pension costs) are expected to grow at a steady pace. In 2003, excluding pension plan costs and back-office facilities expansion expense, New York Life's consolidated GAAP operating earnings increased 15% to $1.0 billion. The earnings growth was driven by improved interest margins, increased fee income, and favorable equity market performance somewhat offset by the company's decision to maintain its dividend scale in a lower interest rate environment. New York Life's internal surplus generation improved in 2003 and Fitch believes 'AAA'-rated companies should consistently demonstrate stable, long-term organic growth in capital. Total adjusted capital (TAC 1. TAC - Translator Assembler-Compiler. For Philco 2000. 2. TAC - Terminal Access Controller. ) remained relatively flat from 1999 to 2002 as weak equity and credit markets, and a goodwill write-off for its acquisition in Mexico offset strong operating earnings, one-time positive benefits from codification The collection and systematic arrangement, usually by subject, of the laws of a state or country, or the statutory provisions, rules, and regulations that govern a specific area or subject of law or practice. and the mutual company tax suspension. The commercial paper and surplus notes ratings take into account that the consolidated organization's financial leverage remains moderate and debt repayment capabilities are strong. On June 30, 2004, total consolidated financial leverage (i.e. surplus notes plus commercial paper outstanding divided by TAC) was 14.9%. The assignment of 'AAA' ratings to the note programs and related issues recognizes that 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 that company's IFS rating. New York Life is one of the largest life insurance organizations in the United States. Individual life 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 . Entity/Issue/Type Action Rating/Outlook New York Life Insurance Company -- Insurer financial strength Affirmed 'AAA'/Stable; -- Surplus note Affirmed 'AA'/Stable. New York Life Insurance and Annuity Corporation -- Insurer financial strength Affirmed 'AAA'/Stable. 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 Affirmed 'F1+'. New York Life Funding (NYLF NYLF National Youth Leadership Forum ) Assigned 'AAA'/Stable. Program Series Currency Rate Maturity NYLF 2001-1 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 Fixed 5/18/06 NYLF 2001-2 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. 200,000,000 Floating 5/18/06 NYLF 2001-3 USD425,000,000 Floating 12/06/06 NYLF 2002-1 EUR300,000,000 Fixed 2/16/09 NYLF 2003-1 USD257,000,000 Floating 4/14/08 NYLF 2003-3 USD157,484,800 Zero 12/15/28 NYLF 2003-5 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 Fixed 10/20/08 New York Life Global Funding (NYLGF) Assigned 'AAA'/Stable. Program Series USD Equivalent Rate Maturity NYLGF 2003-1 USD500,000,000 Fixed 9/15/13 NYLGF 2004-1 USD500,000,000 Fixed 1/15/09 NYLGF 2004-2 USD250,000,000 Floating 2/26/07 |
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