Bangkok--Apr 22--Siam Commercial New York Life Insurance
- U.S. Life Insurance Sales Jump 42% On Strong Performance from Agents, Brokers
- International Operations Attain Profitability; Life Insurance Sales Up 28%
In an industry growing at a rate of 6% a year, New York Life Insurance Company's life insurance sales in the United States have soared for two consecutive years, increasing 42% in 2002 and 41% in 2001. The company attributes the strong sales to strategies that focus on the company's core business of selling life insurance and annuities through career agents and to a commitment to mutuality that resonates with consumers.
Sy Sternberg, chairman and chief executive officer, said, "Four years ago we took contrarian positions in four major areas: to stay focused on life insurance when others were venturing into other financial services; to maintain our career agency system when some claimed it was too expensive; to remain a mutual when others were going public; and to go global when others feared the risk. All four of these decisions are paying off. In a year of sales and earnings duress in our industry, New York Life set records for both operating earnings and life sales. This was the second year in a row that domestic life sales increased over 40 percent, and International now contributes nearly a quarter of our total life insurance sales. And finally, our decision to remain a mutual has struck a chord with consumers who want their life insurance company to put their long term interests first."
Key Financial Measures Rise for New York Life in 2002
-Net income rose 23% to $1.106 billion, compared with 2001 net income of $824 million*.
-Excluding net realized capital gains and losses, after tax and a related adjustment, net income would have been $1.095 billion in 2002, compared with $893 million in 2001.
-Adjusted operating revenue grew more than $830 million to $13.86 billion in 2002.
-Adjusted operating earnings increased to a record $884 million from $848 million in 2001.
-Surplus and Asset Valuation Reserve grew to $8.78 billion, an increase of $38 million.
-Assets Under Management increased by $1.5 billion to $179.77 billion in 2002.
-Individual life insurance in force set a new record of $524 billion.
*According to Generally Accepted Accounting Principles (GAAP).
International Operations Achieve Record Sales, Turn First Profit
New York Life International LLC produced a banner year with record sales of $531 million, up 28% from the prior year. International achieved another important milestone in 2002, turning its first profit a year ahead of plan. Operating earnings were $13 million, reflecting a positive swing of $26 million from 2001. International now accounts for approximately 25% of New York Life's total insurance sales. Sales in Taiwan led Asia operations in 2002, and sales in Mexico led operations in Latin America.
"New York Life International produced excellent results in 2002 in the ten countries in which it operates," said Gary Benanav, chairman and CEO of New York Life International. "Our excellent local management teams continue to produce outstanding results in each of their markets, oftentimes in the face of very challenging local conditions. But the best indication of their skill is New York Life International's turn to profitability in 2002."
A highlight of New York Life International's operations in Asia during 2002 was the commencement of life insurance sales in Shanghai, China in December. New York Life's joint venture with local partner, the Haier Group positions the company to participate in the fast-growing Chinese life insurance market. Sales in New York Life International's seven other Asian markets saw rapid growth resulting from continued improvements in distribution, primarily through further implementation of New York Life's successful agency management system as well as supplemental distribution channels such as bancassurance and direct marketing.
In Latin America, the political and economic environment continued to be challenging, particularly in Argentina where the company's operations performed above expectations despite the extremely volatile conditions. In Mexico, the slowing economy failed to deter New York Life's outstanding local operation. Life insurance sales for New York Life in Mexico were up 18% compared to industry-wide growth of less than 10% in individual life.
Thai Market Showed Strong Growth
For Thai operation, Siam Commercial New York Life Insurance (SCNYL) has achieved dramatic growth since its entry into Thailand in 2000. Last year, it earned total premium of 1.412 billion baht, an increase of 32% and 10% ahead of target. Its first year premium recorded at 677 million baht and grew by 45% over the year 2001.
During January to February this year, SCNYL's total premium was 313 million baht, jumped 53% over last year results. New business premium totaled 162 million baht showing a tremendous rise of 143%, compared to industry's growth of 27%. It ranked No 7 for new business premium and No 8 of total premium respectively.
Life and Annuity, Special Markets Businesses Excel
The company's domestic Life and Annuity business sells a full array of products including individual, bank- and corporate-owned life insurance, and a variety of immediate and deferred, variable and fixed annuities. Operating revenue in Life and Annuity increased 8% to $11 billion in 2002, compared with $10.2 billion in the prior year.
For the second consecutive year, New York Life achieved the number one market share for new life premium, according to the association that compiles market data from among the 77 largest insurers, representing three-quarters of the industry*. The company's sales of individual life insurance in the United States reached a new high of $1.55 billion in 2002, a 42% increase over the $1.09 billion in 2001. The company's agency system increased life sales for the sixth consecutive year to $783 million, an increase of 11% over 2001. New York Life doubled its sales in the advanced market in 2002, as the company won more business from brokers serving this market.
Sales of individual annuities rose 13% to $4.99 billion in 2002, with increases in sales from both agents and banks.
Ratings Agencies Affirm New York Life's Strong Ratings
In a year in which many insurers were downgraded by the major financial strength ratings agencies, the agencies affirmed New York Life's strong ratings. The company's ratings at Standard & Poor's (AA+), Moody's (Aa1), Fitch (AAA) and A.M. Best (A++) have all been affirmed. * Source: LIMRA International. Sales survey based on new periodic premium, plus 100% of single premium
For more information, please contact
Khun Nantawan
Tel. 0-2655-3000 ext 3839 Fax. 0-2256-1517
Email :
[email protected] End.
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