Riding strong sales across all of its product lines, New York Life Insurance Co. will post a record dividend payout in 2014, the company announced on Thursday.
The New York-based mutual insurer plans to pay $1.4 billion in dividends to its participating policyholders next year. The total reflects a $109 million or (for the second consecutive year) 8 percent increase over the $1.3 million recorded in 2012.
“Our dividends and sales reflect the diversity and strength of the company,” says Mark Pfaff, executive vice president in charge of agency at New York Life. “We have a remarkably strong capital surplus, good investment experience and ancillary businesses.”
Individual recurring premium life insurance sales through agents are up 12 percent through the third quarter compared with the same period in 2012. The company attributes the rise to robust demand for the company’s permanent products, including whole life, universal life and variable universal life products.
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“We’re seeing the most significant demand for the company’s whole life solutions — our most popular product line,” says Pfaff. “Our VUL products, which now boast asset allocation, guaranteed accumulation and waiver of premium riders, also are enjoying greater growth in percentage terms, though off a smaller base.”
New York Life’s sales of guaranteed income annuity products, including single premium immediate annuities and the company’s deferred income annuity (Guaranteed Future Income Annuity) increased 17 percent through the third quarter compared with the same period in 2012. Total annuity sales through all channels are up 36 percent compared with the same period of 2012.
Pfaff says that New York Life will secure this year more than $3 billion in variable annuity premium sold through agents — a first for the company. This product line is up 23 percent year-to-date. The company also projects a record $1.7 billion in agent sales of income annuities in 2013.