A large mutual insurer says results in markets such as India helped compensate for the cost of investment risk-management efforts.

New York Life Insurance Company, New York, is reporting $855 million in GAAP net income for 2005 on $11 billion in revenue, compared with $10 billion in revenue for 2004.

New York Life says 2004 was an excellent year and that 2005 net GAAP results were affected by a $512 million capital loss caused by “an effective risk-management strategy that does not qualify for hedge accounting.”

Operating earnings were $934 million in 2005, compared with $974 million in 2003, according to New York Life.

U.S. life and annuity operating revenue increased just 4.4%, to $6.8 billion, but revenue from the special markets unit, which includes long term care insurance, membership association business and a major AARP life insurance program, increased 12%, to $1.3 billion, New York Life says.

Gains in India, Mexico and Thailand helped increase international revenue 23%, to $1.8 billion, according to New York Life.

In related news, New York Life says it will pay a dividend to holders of its LTCSelect Premier long term care insurance policies for the second consecutive year. The policy appears to be the only U.S. LTC policy that pays a dividend, New York Life says.

CORRECTION: New York Life’s 2004 revenue figures was described incorrectly in an earlier version of this story. The correct revenue figure is $10 billion.