OCTOBER 13, 2021 09:08 AM (EDT)
AM Best Affirms Credit Ratings of New York Life Ins Co; Upgrades ICRs of New York Life Group Ins Co of NY and Life Ins Co of NA
Senior Financial Analyst
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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 13, 2021 09:08 AM (EDT)
AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “aaa” (Exceptional) of New York Life Insurance Company and New York Life Insurance and Annuity Corporation. Additionally, AM Best has upgraded the Long-Term ICRs to “aaa” (Exceptional) from “aa+” (Superior) and affirmed the FSR of A++ (Superior) of Life Insurance Company of North America (LINA) and New York Life Group Insurance Company of NY (NYLGICNY). All companies are referred to as New York Life and are headquartered in New York, NY. AM Best also has affirmed the Long-Term ICRs of “aaa” (Exceptional) of New York Life Global Funding and New York Life Funding. Lastly, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IRs) on the funding agreement-backed securities programs, the outstanding notes issued thereunder and the Long-Term IRs on the existing surplus notes of New York Life Insurance Company. The outlook of the Credit Ratings (rating) is stable. (See below for a detailed listing of the Long- and Short-Term IRs)
The ratings reflect New York Life’s balance sheet strength, which AM Best assesses as strongest, as well as its very strong operating performance, very favorable business profile and very strong enterprise risk management.
The Long-Term ICR upgrades of LINA and NYLGICNY and rating affirmations include the addition of these two companies, which were acquired from Cigna Corporation on Dec. 31, 2020. LINA and NYLGICNY focus on the employee benefits segment. The addition of this segment expands the diversification of the group business as a core competency for New York Life, with expectations of management that the expanded business segment will be accretive to earnings, further supporting continued organic capital growth through positive earnings. AM Best expects that these new companies will maintain strategic importance to the parent as early indications are that the financial fundamentals and operations are fully integrated into New York Life.
The ratings of the group reflect its ability to maintain capital levels, financial flexibility and earnings while funding a business acquisition during a period of volatile financial markets. The company continues to exhibit the ability to absorb, through its balance sheet, continued financial market volatility and credit impairments. As assessed over time, the group’s well-diversified asset portfolio has provided protection from credit market impairments during the past rating cycle.
The group’s very strong operating performance is derived from a diverse revenue base, which has improved as a result of the recent acquisition, providing ample additional protection from financial market volatility. An expanding and diverse profitable book of annuities, life insurance and employee benefits provides support of the New York Life’s favorable business profile.
The following Long-Term IRs have been affirmed with stable outlooks:
New York Life Funding - “aaa” (Exceptional) program rating
New York Life Global Funding - “aaa” (Exceptional) program rating
— “aaa” (Exceptional) on all outstanding notes issued under the program
New York Life Insurance Company—
— “aa” (Superior) on $1 billion 5.875% surplus notes, due May 2033
— “aa” (Superior) on $1 billion 6.75% surplus notes, due November 2039
— “aa” (Superior) on $1.25 billion 3.75% surplus notes, due May 2050
— “aa” (Superior) on $1 billion 4.45% surplus notes, due May 2069
The following Short-Term IR has been affirmed:
New York Life Capital Corporation —
— AMB-1+ (Strongest) on the commercial paper program
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.