DUFF & PHELPS: MUTUAL LIFE INSURANCE COMPANY OF NEW YORK CLAIMS PAYING ABILITY RATING DOWNGRADED TO 'A+'
CHICAGO, July 16 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has downgraded the claims paying ability rating of Mutual Life Insurance Company of New York (MONY), to "A+" (Single-A-Plus) from "AA-" (Double- A-Minus). The rating action reflects the continuing real estate recession and MONY's above average industry exposure to commercial real estate. Positively, MONY is a large company, which has taken aggressive management initiative and has a highly qualified professional career sales force. MONY is a large mutual life insurance company based in New York City with admitted assets of $17.2 billion (including $4.5 billion in separate accounts) and adjusted surplus of $935 million at March 31, 1993. The company is one of the country's oldest life insurers, currently celebrating its 150th anniversary. Over the last several years, a new management team has undertaken positive initiatives including restructuring the company's asset portfolio, establishing separate account products, disposing of non-strategic subsidiaries, implementing expense control measures, and refocusing on the company's core businesses. MONY's two core business lines are Individual Financial Services (IFS) and Pensions. In the IFS area, the company targets the advanced market through a career agency system. Sales production, as measured by first year commissions, declined in 1992 as a result of unfavorable economic and market conditions. However, the ordinary life lapse ratio improved from 11.1 percent in 1991 to 10.6 percent in 1992. This positive trend is expected to continue this year even though the dividend scale was reduced. The loyalty and quality of the career field force has been a key strength in helping MONY to weather the adverse market environment of recent years. In the Pension area, MONY has continued to emphasize high quality services and has introduced a variety of new separate account investment options for its customers. -0- 7/16/93 /CONTACT: Julie A. Burke, CPA of Duff & Phelps, 312-368-3158/
CO: Mutual Life Insurance Company of New York ST: New York IN: INS SU: RTG
LG-MG -- NY047 -- 2585 07/16/93 15:29 EDT
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|Date:||Jul 16, 1993|
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