NEW YORK--(BUSINESS WIRE)--
New York Life, the largest mutual life insurance company in the United States, announced that its income annuity policyholders received more than $1 billion in payouts in 2013, an increase of 12 percent over 2012.
“As the leading retirement income provider in the industry1, it’s our hope that the $1 billion paid to our policyholders in 2013 has helped create more fulfilling retirements,” said Matthew Grove, senior managing director and head of retail annuities for New York Life. “The retirement Americans desire can be attained and New York Life agents can help retirees create a stream of guaranteed income that they can never outlive. In fact, for Americans who are in the market for the pension-like income provided by a guaranteed income annuity, one out of three choose New York Life1.”
Of the $1 billion in payouts to New York Life annuity policyholders:
- Nearly 20 percent went to New York Life policyholders between the ages of 65 and 69. This represents a growing segment of the retirement income market that has benefitted from securing income early in their retirements.
- More than 30 percent of payouts were paid to New York Life policyholders between the ages of 70 and 79.
- More than $500 million went to New York Life policyholders 80 years old and older. This includes policyholders who have received income payments for many years and continue to enjoy guaranteed lifetime income well into their retirements.
The $1 billion in payouts was delivered to 129,000 policyholders. To illustrate these numbers in another way, New York Life provides income to as many individuals as the 50th largest employer on the Fortune 500.2
“The impact of an income annuity can help make a difference in many retirees’ lives, especially individuals who solely rely on Social Security for their retirement income,” Mr. Grove added. “Take the example of someone who relies on the average monthly Social Security benefit of $1,2943 for his or her retirement income. Our average monthly income annuity payout in 2013 was $6824, meaning retirees could increase retirement income by nearly 53 percent with the addition of the New York Life income annuity.”
New York Life leads the $10 billion income annuity market with 33 percent market share for immediate income annuities and 40 percent market share for deferred income annuities, according to an industry source.1 New York Life has been the leading provider of income annuities since 2006 and had total income annuity sales of over $3 billion in 2013.
New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States5 and one of the largest life insurers in the world. New York Life has the highest possible financial strength ratings currently awarded to any life insurer from all four of the major credit rating agencies: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s (AA+).6 Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life Investments7 provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as retail mutual funds. Please visit New York Life’s website at www.newyorklife.com for more information.
1 Source: LIMRA, U.S. Individual Annuity Sales Survey, Participants Report, Fixed Immediate and Deferred Income Annuities, Fourth Quarter 2013 results. (Fixed Immediate include Fixed Period Annuities.) One out of three choose New York Life based on 33 percent market share for immediate income annuities and 40 percent market share for deferred income annuities.
3 Social Security Administration Fact Sheet on the Old Age, Survivors, and Disability Insurance Program, Beneficiaries in Current-Payment Status December 31, 2013. Retired Workers, average monthly amount; http://www.socialsecurity.gov/oact/FACTS/
4 Average income annuity payout is based on an average premium of $129,600 and includes principal and interest.
5 Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, May 20, 2013. See http://money.cnn.com/magazines/fortune/fortune500/2013/faq/?iid=F500_sp_method%20 for methodology.
6 Individual independent rating agency commentary as of 2/3/14.
7 New York Life Investments is a service mark used by New York Life Investment Management Holdings LLC and its subsidiary, New York Life Investment Management LLC.
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