avatar New York Life Insurance Company Finance, Insurance, And Real Estate
  • Location: New York 
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    Moments that Matter 2015 Annual Report


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    2015 Financial Highlights (IN $ MILLIONS) 2015 2014 Policyholder Benefits and Dividends $ 9,832 $ 9,076 Individual Life Insurance In Force $ 923,434 $ 871,138 Assets Under Management $ 528,197 $ 540,895 Operating Earnings $ 1,875 $ 2,024 Surplus and Asset Valuation Reserve $ 22,688 $ 21,937 Insurance Sales $ 1,269 $ 1,196 Annuity Sales $ 12,015 $ 11,289 Mutual Fund Sales $ 19,455 $ 25,867 For definitions of the company’s performance measures, please see the Glossary of Terms on page 26. All amounts shown are as of December 31. Note: “New York Life” or “the company,” as used throughout this Report, can refer either separately to the parent company, New York Life Insurance Company, or one of its subsidiaries, or collectively to all New York Life companies, which include the parent company and its subsidiaries and affiliates. Any discussion of ratings and safety throughout this Report applies only to the financial strength of New York Life, and not to the performance of any investment products issued by the company. Such products’ performance will fluctuate with market conditions. The New York State Department of Financial Services recognizes only statutory accounting practices for determining and reporting the financial condition and results of operations of an insurance company. The condensed consolidated statutory statement of financial position in this Report includes New York Life Insurance Company (NYLIC) and its domestic, wholly owned life insurance subsidiaries: New York Life Insurance and Annuity Corporation (NYLIAC) and NYLIFE Insurance Company of Arizona (NYLAZ). NYLAZ is not authorized in New York or Maine and does not conduct insurance business in New York or Maine. Policyholders may request a copy of the audited statutory financial statements applicable to their respective companies, New York Life’s consolidated financial statements prepared in accordance with generally accepted accounting principles (GAAP), and the detailed reconciliation of the company’s GAAP financial statements to its non-GAAP performance measure (i.e., Operating Earnings) by contacting the Secretary of the parent, New York Life Insurance Company, 51 Madison Avenue, New York, New York 10010. The individual company audited statutory financial statements, New York Life’s consolidated GAAP financial statements, and reconciliation to non-GAAP performance measures are also available on our website (www.newyorklife.com).


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    A message from Ted Mathas This past year, New York Life Insurance deep operational management and marketing Company marked its 170th year in expertise from his successful career as a senior business. While the world has certainly executive at The Gillette Company, The Procter & Gamble Company, and Bacardi Limited. Finally, changed since we opened in 1845, what Robert B. Carter, executive vice president and hasn’t changed is our mission. chief information officer at FedEx, was elected We’re here to help people make the thoughtful to the Board in November and formally joined and necessary decisions to protect those us in January 2016. they care about most; to help people plan While no one can predict the future, we today to achieve their dreams tomorrow. And remain humbly confident that we’re prepared then our job is to live up to our promises—a to navigate whatever it may hold. Our focus is responsibility we don’t take lightly. always on the long term, and our number one Despite continued low interest rates and priority continues to be meeting our obligations equity market volatility, our team of agents when they come due, whether that’s tomorrow and employees turned in another strong or 10, 20, 30 years or more down the road. That’s performance in 2015 on behalf of the millions why out of approximately 800 life insurers of individuals and families who count on us. In doing business in the United States, we remain the pages throughout this Report, you can learn one of only two to have the highest ratings more about our financial performance, the for financial strength from the four major composition of our investment portfolio, what ratings agencies.* And as the largest U.S. mutual it means to be part of a mutual life insurance life insurer† (we have no shareholders) our company, and the story behind our record strength and success is something we’re able to dividend payout to eligible policyholders. exclusively share with our policyholders. The commitment to our customers that our Thank you for your interest in New York Life. entire team brings to our work each day is also We stand ready to fulfill our promises, and help reflected through the guidance provided by keep the good things going in our lives. our Board of Directors. The unique insights and diverse perspectives from this group of experienced leaders are a critical part of the oversight and governance of our organization. This past year, we bid farewell to our esteemed member, Admiral Joseph W. Prueher, who Ted Mathas Chairman of the Board and Chief Executive Officer retired in April. Having forged a career of distinguished service to our country as a naval * The “highest ratings” refers to the highest ratings currently officer and Ambassador to the People’s Republic awarded to any life insurer, specifically: A.M. Best A++ (as of 7/1/2015), Fitch Ratings of AAA (as of 8/11/2015), of China, New York Life was the beneficiary Moody’s Aaa (as of 8/6/2015), Standard & Poor’s AA+ (as of of his vast experience and sound judgment 6/24/2015). Source: third-party reports. for the 14 years he served on our Board. We † Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune also welcomed Edward D. Shirley, who joined magazine, 6/15/15. For methodology, please see: our Board in November, bringing with him http://fortune.com/fortune500/#methodology 2015 Annual Report 1


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    As a mutual life insurance company, we are uniquely aligned with our policyholders. As is the case with any business, New York Life needs to generate earnings—or profits. But because we’re a mutual life insurer, earnings are not our true bottom line. Unlike publicly traded companies that must distribute the money they make to their shareholders, we put that money to work on behalf of our policyholders. 37%INCREASE IN In 2016, we will pay nearly $1.7 billion in dividends to eligible policyholders— the largest amount in the DIVIDEND PAYOUT company’s 171 years. SINCE 2012 2 New York Life Insurance Company


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    In the four years since 2012, our dividend payout to our eligible participating policyholders has increased 37 percent. This is a result of the company’s financial strength and a diversified business strategy. Policyholder Benefits and Dividends Year In $ Billions 2015 9.8 This graph shows how dividends, along with other benefits such as payments 2014 9.1 to beneficiaries and lifetime income payments, have collectively grown over 2013 8.6 the last several years. 2012 8.1 For definitions of the company’s performance measures, see Glossary of Terms on page 26. 2011 7.6 Mutuality: Sharing our success. opportunity to contribute earnings to company surplus, When it comes to dividends, no other economic factor as well as policyholder dividends. And our smaller business has a bigger effect than interest rates. Although the lines are contributing to policyholder dividends, too. government made a modest rate increase in December Because we are a financially strong mutual company,* we for the first time in seven years, the continuing low levels offer the best of both worlds: a company with the highest remain a challenge for life insurers. ratings for financial strength currently awarded to any life There are only a few options available to life insurers to insurer by the four major rating agencies, and a company help offset smaller investment returns in a low interest that can share its success with policyholders—instead of rate environment. They can tap into surplus. They can seek shareholders—by paying a healthy dividend. out larger returns by taking on more investment risk. Or Every year since 1854—through wars, pandemics, and they can operate other businesses to generate additional financial crises—we have paid a dividend. Our track record earnings to support dividends. However, these options is validation of our mutual structure and our singular focus can be challenging for publicly traded life insurers where on managing our business for long-term insurance needs their primary obligation is to share their success with their and financial security. shareholders, or for mutual life insurers that do not have other business operations or robust surplus. Sharing our success with policyholders. That’s mutuality in action—mutuality the New York Life way. Our diverse business strategy and superior financial strength are put to work for our policyholders. New York Life policyholders are benefiting from our large * New York Life Insurance Company (NYLIC) is a mutual life insurer. Its life and expanding global investment management operation. insurance subsidiaries, NYLIAC and NYLAZ, are wholly owned subsidiaries of NYLIC. NYLIC’s asset management operations are primarily conducted This business not only provides the entire organization through New York Life Investment Management Holdings LLC, an indirect, with the added safety of diversification, it creates an wholly owned subsidiary of NYLIC. 2015 Annual Report 3


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    Helping to make plans today for tomorrow’s dreams 4 New York Life Insurance Company


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    Helping to plan for a better tomorrow. Life insurance is a product that has withstood The premiums and fees we collect on the the test of time. Regardless of what is going individual life insurance and annuity products on in the world, it continues to have a place in we sell are invested and managed to ensure we virtually every prudent financial plan. meet our long-term obligations to all of our customers. In addition, our expanding global Our consistent growth in individual life insurance investment management business manages in force means we are helping more people assets for both retail and institutional investors. prioritize what’s important to them and make the decision to protect their families and businesses. Individual Life Insurance in Force Assets Under Management Year In $ Billions Year In $ Billions 2015 923 2015 528 2014 871 2014 541 2013 841 2013 425 2012 816 2012 378 2011 790 2011 336 Trust, backed by our financial strength. Every company needs to generate operating than surplus. It is an additional source of earnings—or profits. As a mutual life insurer, capital above and beyond the ample reserves we focus on enhancing the financial strength of already set aside to pay the benefits we promise. the organization and paying healthy dividends It helps provide a cushion against potential to our policyholders. future adverse economic activity so we can continue to always meet our obligations. When assessing the financial strength of life insurers, no other measure is more important Operating Earnings Surplus and Asset Valuation Reserve Year In $ Millions Year In $ Billions 2015 1,875 2015 22.7 2014 2,024 2014 21.9 2013 1,764 2013 21.1 2012 1,586 2012 19.6 2011 1,340 2011 17.9 For definitions of the company’s performance measures, see Glossary of Terms on page 26. 2015 Annual Report 5


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    6 New York Life Insurance Company


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    Insurance Sales Year In $ Millions 2015 1,269 2014 1,196 2013 1,173 2012 1,134 2011 1,192 Annuity Sales Year In $ Billions 2015 12.0 We have 2014 11.3 2013 9.7 the solutions 2012 7.5 people need. 2011 8.1 Guaranteed Income Annuities All Other Annuities Mutual Fund Sales Year In $ Billions 2015 19.5 Protecting families or businesses against the unexpected. Paying for college. Saving for 2014 25.9 retirement. Enjoying the golden years. Whatever the 2013 31.3 objectives are, we are here to help achieve them. 2012 17.2 Regardless of what products people may need, no 2011 18.9 one will ever feel they have to “go it alone” when they do business with us. We’re here to help tailor the solutions to meet our customers’ needs and help For definitions of the company’s performance them make the decisions they need to make. measures, see Glossary of Terms on page 26. 2015 Annual Report 7


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    2015 Investment Review The following investment review presents Sound principles and strict standards guide information for New York Life Insurance New York Life’s management of its investment Company and its domestic insurance portfolio. This includes conducting our own subsidiaries, New York Life Insurance and traditional, bottom-up research on individual Annuity Corporation and NYLIFE Insurance investments and the underwriting of credit Company of Arizona. The assets of these risk, rather than relying on third-party credit entities represent most of the invested assets ratings. The company maintains disciplined of the company. diversification standards by asset classes, issuers, and sectors, while continuing to hold ample liquidity in its investment portfolio. Cash and Invested Assets Cash and Invested Assets* As of December 31, 2015, New York Life (IN $ MILLIONS) DECEMBER 31, 2015 DECEMBER 31, 2014 and its domestic insurance subsidiaries had cash and invested assets of $218.3 Public Corporate Bonds and Loans $ 59,994 27% $ 53,882 27% billion and maintained a well-diversified Private Corporate Bonds and Loans 43,556 20% 39,481 20% investment portfolio. U.S. Gov’t and Agency Securities 30,143 14% 29,764 15% Non-Agency Asset-Backed Securities 13,413 6% 10,577 5% Non-Agency Commercial Mortgage-Backed Securities 8,483 4% 8,885 5% Non-Agency Residential Mortgage-Backed Securities 2,546 1% 3,276 2% Subtotal Fixed Income $ 158,135 72% $ 145,865 74% Mortgage Loans $ 26,698 12% $ 22,208 11% Equity and Other Interests 13,924 7% 14,421 7% Policy Loans 11,287 5% 9,742 5% Cash and Short-Term Investments 6,916 3% 3,926 2% Derivatives 1,386 1% 1,074 1% Total Cash and Invested Assets $ 218,346 100% $ 197,236 100% * Includes $89,203 million and $84,118 million of assets related to New York Life Insurance and Annuity Corporation for 2015 and 2014, respectively. 8 New York Life Insurance Company


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    Fixed Income Assets Fixed Income by Quality* The fixed income portfolio continues (IN $ MILLIONS) DECEMBER 31, 2015 DECEMBER 31, 2014 to be dominated by high-quality investments, with 92 percent rated NAIC APPROX. RATING RATING AGENCY EQUIVALENT QUALITY as investment grade. The public and private corporate bond and loan NAIC 1 AAA to A- Highest Quality $ 98,896 62% $ 95,764 66% portfolio remains well diversified NAIC 2 BBB+ to BBB- High Quality 47,324 30% 39,256 27% across the broad industry spectrum and is comprised of securities issued by about 2,600 individual issuers. The Investment Grade $ 146,220 92% $ 135,020 93% fixed income portfolio is managed to limit exposure to individual issuers NAIC 3 BB+ to BB- Medium Quality $ 7,324 5% $ 5,919 4% according to credit quality and other NAIC 4 B+ to B- Low Quality 4,032 3% 3,738 2% factors. The portfolio’s 10 largest NAIC 5 CCC+ to CCC- Lower Quality 487 – 1,088 1% holdings by issuer represented 1.4 NAIC 6 CC+ to D In or Near Default 72 – 100 – percent of cash and invested assets. Below Investment Grade $ 11,915 8% $ 10,845 7% Total Fixed Income $ 158,135 100% $ 145,865 100% * Includes $71,792 million and $68,111 million of assets related to New York Life Insurance and Annuity Corporation for 2015 and 2014, respectively. Diversification of Corporate Bonds and Loans* (IN $ MILLIONS) DECEMBER 31, 2015 Utilities $ 15,461 15% Transportation $ 4,365 4% Energy 8,958 9% Cable & Media 3,609 3% Banking/Brokerage 8,834 9% Technology 3,389 3% Consumer Products 8,315 8% Retail 3,169 3% Healthcare 6,500 6% Aerospace & Defense 3,039 3% Municipal 6,197 6% Chemicals 3,015 3% Real Estate Investment Trusts 6,123 6% Gaming/Lodging/Leisure 2,032 2% Conglomerates/Diversified Mfg. 4,591 4% Other (No single category exceeds $2.0 billion) 15,953 16% Total $ 103,550 100% * Includes $43,583 million of assets related to New York Life Insurance and Annuity Corporation. 2015 Annual Report 9


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    Non-Agency Asset-Backed Securities Non-Agency Asset-Backed Securities by NAIC Rating Category* As of year-end 2015, New York Life and (IN $ MILLIONS) DECEMBER 31, 2015 its domestic insurance subsidiaries owned $13.4 billion in non-agency APPROX. RATING asset-backed securities, representing NAIC RATING AGENCY EQUIVALENT QUALITY six percent of cash and invested assets. The majority of these securities are of NAIC 1 AAA to A- Highest Quality $ 10,790 81% the highest quality, as 81 percent were NAIC 2 BBB+ to BBB- High Quality 1,803 13% classified as NAIC 1 and are collateralized NAIC 3–6 BB+ to D Medium Quality and Below 820 6% by a broad range of collateral types. These securities are diversified by issuance year. Total $ 13,413 100% * Includes $6,610 million of assets related to New York Life Insurance and Annuity Corporation. Non-Agency Commercial Non-Agency Commercial Mortgage-Backed Mortgage-Backed Securities Securities by NAIC Rating Category* As of year-end 2015, New York Life and its (IN $ MILLIONS) DECEMBER 31, 2015 domestic insurance subsidiaries owned $8.5 billion in non-agency commercial APPROX. RATING NAIC RATING AGENCY EQUIVALENT QUALITY mortgage-backed securities, representing four percent of cash and invested NAIC 1 AAA to A- Highest Quality $ 8,416 99% assets. Nearly the entire portfolio is of the highest quality, as 99 percent were NAIC 2 BBB+ to BBB- High Quality - - classified as NAIC 1. Notwithstanding the NAIC 3–6 BB+ to D Medium Quality and Below 67 1% ratings, these securities are selected by our real estate investment professionals Total $ 8,483 100% based on the quality of the underlying mortgage loans. * Includes $4,609 million of assets related to New York Life Insurance and Annuity Corporation. 10 New York Life Insurance Company


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    Non-Agency Residential Non-Agency Residential Mortgage-Backed Mortgage-Backed Securities Securities by NAIC Rating Category* As of year-end 2015, New York Life and (IN $ MILLIONS) DECEMBER 31, 2015 its domestic insurance subsidiaries owned $2.5 billion in non-agency APPROX. RATING NAIC RATING AGENCY EQUIVALENT QUALITY residential mortgage-backed securities, representing one percent of cash and NAIC 1 AAA to A- Highest Quality $ 2,079 82% invested assets. The mortgage loans underlying these securities were held NAIC 2 BBB+ to BBB- High Quality 206 8% predominantly by prime borrowers. The NAIC 3–6 BB+ to D Medium Quality and Below 261 10% majority of these securities are of the highest quality, as 82% were classified as Total $ 2,546 100% NAIC 1, and 94 percent are collateralized by fixed-rate mortgage loans. * Includes $1,206 million of assets related to New York Life Insurance and Annuity Corporation. Mortgage Loans Commercial Mortgage Loans by Geographic Region* The $26.7 billion mortgage loans portfolio (IN $ MILLIONS) DECEMBER 31, 2015 consists of $26.6 billion of loans on commercial real estate properties and Southeast $ 6,722 25% $89 million of loans on single-family Middle Atlantic 6,086 23% residential properties as of year-end 2015. Pacific 5,540 21% Commercial Mortgage Loans North Central 3,012 11% The company’s mortgage loan investment New England 2,479 9% style emphasizes conservative underwriting South Central 1,988 8% and a focus on high-quality properties. Other 782 3% The commercial mortgage loan portfolio is broadly diversified by both property Total $ 26,609 100% type and geographic location. Commercial Mortgage Loans by Property Type* (IN $ MILLIONS) DECEMBER 31, 2015 Office Buildings $ 8,805 33% Multi-Family 7,342 28% Retail 6,736 25% Industrial 3,337 13% Other Commercial Property 389 1% Total $ 26,609 100% * Includes $12,019 million of assets related to New York Life Insurance and Annuity Corporation. 2015 Annual Report 11


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    Equity and Other Interests Equity and Other Interests* New York Life and its domestic (IN $ MILLIONS) DECEMBER 31, 2015 insurance subsidiaries had $13.9 billion of assets classified as equity and other Private Equity $ 4,189 30% interests as of year-end 2015. Private Investments in Affiliates 2,899 21% equity investments totaled $4.2 billion Various Limited Partnerships and Other Interests 2,812 20% and is comprised primarily of leveraged Real Estate 2,357 17% buyout funds in a range of vintage years that are managed by various Public Equity 1,603 12% third-party private equity groups. Preferred Stock 64 – Investments in affiliates of $2.9 billion encompasses the company’s holdings Total $ 13,924 100% in its investment management and * Includes $1,810 million of assets related to New York Life Insurance and Annuity Corporation. international insurance operating subsidiaries. The $2.8 billion of various limited partnerships and other interests consists of a broad range of investments diversified across numerous sectors of the economy. Real estate of $2.4 billion includes diversified real estate investment properties and properties occupied by New York Life. Public equities of $1.6 billion are invested in multiple strategies diversified across various companies, sectors, and regions. 12 New York Life Insurance Company


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    Derivatives products offered to clients. These portfolios As of year-end 2015, New York Life and are specifically tailored to fit the unique its domestic insurance subsidiaries had interest rate sensitivities and cash flow outstanding derivative asset positions of characteristics associated with each of these $1,386 million, offset by derivative liabilities product segments. In addition, New York of $487 million, resulting in a net asset value Life takes a comprehensive enterprise view, of $899 million. implementing measures at the corporate level to mitigate overall risk exposures. New York Life enters into derivative transactions to meet the hedging needs New York Life has established policies and of the company or to replicate permissible procedures at the enterprise and business investments. Derivatives include currency unit levels to manage risk exposures. The swaps, forward agreements, interest rate swaps, Investment Committee of the Board of interest rate options, and equity options. Directors provides oversight of New York Currency swaps and forward agreements are Life’s investment activity, including review typically used to convert assets or liabilities of various risk factors and establishment of the company that are designated in a of investment policies. New York Life foreign currency into U.S. dollars. Interest supplements financial modeling with rate swaps are mainly used for asset/liability comprehensive stress testing, which is management. Interest rate options are used to intended to assess the company’s financial protect against a significant increase in market resilience and sustainability of our business interest rates. model under extreme events. The stress testing results lead to the implementation of New York Life and its domestic insurance risk mitigation strategies and contingency subsidiaries control over-the-counter planning, both key to ensuring the long-term derivative counterparty credit risk through the financial strength of the company. establishment of collateral support agreements. These agreements require the daily posting of cash collateral by the derivative counterparties if and when the market value of derivative positions exceeds zero. Asset/Liability and Investment Risk Management The long-term promises New York Life makes to policyholders are backed by sound asset/ liability management. A well diversified fixed income portfolio forms the foundation of the investment portfolio that supports these liabilities. New York Life’s approach to asset/ liability management is founded on the segmentation of assets supporting various 2015 Annual Report 13


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    Consolidated Statutory Statement of Financial Position (IN $ MILLIONS) DECEMBER 31, 2015 New York Life New York Life Insurance Consolidated2 Insurance Company1 and Annuity Corporation1 ASSETS Cash and invested assets3 $ 137,216 $ 89,201 $ 218,346 Investment income due and accrued 1,250 613 1,864 Other assets 12,761 7,646 4,353 Separate account assets 12,327 34,779 47,105 Total Assets $ 163,554 $ 132,329 $ 271,668 LIABILITIES Policy benefit reserves $ 114,953 $ 75,950 $ 187,694 Dividends payable to policyholders 1,789 -- 1,789 Other liabilities 12,740 13,322 14,044 Separate account liabilities 12,316 33,890 45,452 Total Liabilities (excluding Asset Valuation Reserve) $ 141,798 $ 123,162 $ 248,980 SURPLUS AND ASSET VALUATION RESERVE Asset Valuation Reserve $ 2,260 $ 931 $ 3,192 Surplus 19,496 8,146 19,496 Total Surplus and Asset Valuation Reserve $ 21,756 $ 9,077 $ 22,688 Total Liabilities and Surplus $ 163,554 $ 132,239 $ 271,668 1 Policyowners may request a copy of the statutory financial statements audited by an independent accounting firm by contacting the Secretary of the parent, New York Life Insurance Company, 51 Madison Avenue, New York, New York 10010. The individual company audited financial statements are also available on our website (www.newyorklife.com) and from the New York State Department of Financial Services. 2 The unaudited condensed consolidated statutory statement of financial position compiled by management reflects the consolidation of the audited statutory statement of financial position of New York Life Insurance Company (NYLIC) with its domestic wholly owned life insurance subsidiaries, New York Life Insurance and Annuity Corporation (NYLIAC) and NYLIFE Insurance Company of Arizona (NYLAZ). The consolidated statutory statement of financial position has been derived from the individual separate audited statutory statements of financial position of NYLIC, NYLIAC and NYLAZ, which were prepared in accordance with accounting practices prescribed or permitted by the New York State Department of Financial Services, or the Delaware or Arizona Department of Insurance (statutory basis of accounting). NYLIC’s cash and invested assets and surplus include the surplus of its domestic wholly owned life insurance subsidiaries, which, along with all other significant intercompany transactions (primarily in other assets and other liabilities), have been eliminated in consolidation. As a result, amounts in the table above may not add across. NYLAZ is not authorized in New York or Maine, and does not conduct insurance business in New York or Maine. The NYLAZ audited statutory financial statements are available on our website or from the Arizona Department of Insurance. 3 For more detail on cash and invested assets, see 2015 Investment Review beginning on page 8. 14 New York Life Insurance Company


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    (IN $ MILLIONS) DECEMBER 31, 2014 New York Life New York Life Insurance Consolidated2 Insurance Company1 and Annuity Corporation1 ASSETS Cash and invested assets $ 120,706 $ 84,118 $ 197,236 Investment income due and accrued 1,310 624 1,934 Other assets 12,442 7,473 4,063 Separate account assets 11,809 34,622 46,431 Total Assets $ 146,267 $ 126,837 $ 249,664 LIABILITIES Policy benefit reserves $ 104,165 $ 71,412 $ 172,495 Dividends payable to policyholders 1,625 -- 1,625 Other liabilities 7,641 13,088 8,819 Separate account liabilities 11,792 33,775 44,788 Total Liabilities (excluding Asset Valuation Reserve) $ 125,223 $ 118,275 $ 227,727 SURPLUS AND ASSET VALUATION RESERVE Asset Valuation Reserve $ 2,438 $ 893 $ 3,331 Surplus 18,606 7,669 18,606 Total Surplus and Asset Valuation Reserve $ 21,044 $ 8,562 $ 21,937 Total Liabilities and Surplus $ 146,267 $ 126,837 $ 249,664 2015 Annual Report 15


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    Families grow. Careers take unexpected turns. Priorities change. We’re a partner who’s here to help. Our business is personal. It’s about protecting families and helping to secure financial futures. It’s built on relationships that span decades and, sometimes, generations. A commitment like that requires a tremendous amount of trust. And earning trust begins with one of our agents. Their guidance is one of the most valuable services we offer. And our people are among the best in the business.” 16 New York Life Insurance Company


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    Insurance and financial planning decisions are arguably among the most important people will ever make. That’s why our customers find themselves between, our agents can find the solutions and, doing most of the talking when they meet with most important, help people take the important one of our agents. His or her job is not about steps they know they need to take. Their pitching the latest and greatest product on our guidance is one of the most valuable services shelves. It’s about listening to concerns and we offer. And our people are among the best in understanding what someone wants to achieve. the business. Whether it’s starting a first job, welcoming the first great-grandchild, or somewhere in New York Life agents have led the United States in membership in the Million Dollar Round Table* for 61 consecutive years. According to its website, the Million Dollar Round Table’s mission is “To be a valued, member-driven, international network of leading insurance and investment financial services professionals/advisors who serve their clients by exemplary performance and 61 CONSECUTIVE YEARS LEADING THE MILLION the highest standards of ethics, knowledge, service and productivity.” DOLLAR ROUND TABLE * The Million Dollar Round Table (MDRT), the premier association of financial professionals, is an organization that recognizes excellence in the life insurance industry. 2015 Annual Report 17


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    New York Life’s mission, in business and in philanthropy, is to be there when we are needed. In 2015, the New York Life Foundation afterschool program employs teams of contributed over $17.4 million, primarily trained corps members, who serve in schools to national charities which help children for the entire school day. They tutor and mentor middle schoolers, helping them in our two areas of focus: educational improve their attendance, behavior, and enhancement and childhood bereavement. academic performance. Middle schoolers also get help from our Educational Enhancement support of Higher Achievement’s intensive, There is a large body of evidence that points year-round Leveraging Middle School for to the critical juncture that middle school Long-term Success program, which aims to plays in determining a young person’s improve students’ academics and their social academic trajectory. Research has also shown and emotional skills to prepare them for the that for disadvantaged students, more rigors of high school. Each student works learning time in the form of high-quality with volunteer mentors in math, English afterschool, expanded-day, and summer and the arts. Higher Achievement’s Summer programs, leads to greater achievement, Academy, Afterschool Academy, and High better school attendance and more engaged School Advising components all focus on students. For these reasons, the Foundation math, science, literature, and help students supports City Year, whose middle school get into the high school of their choice. 18 New York Life Insurance Company


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    2015: A YEAR OF GIVING And, because technological proficiency is mandatory for all of today’s students, we fund Classroom, Inc.’s Transforming Futures are also partnering with local and national organizations to help members get the grief support services they need. $17.4M Foundation through Digital Learning Tools project, which Grants uses a suite of game-based literacy programs We’re also helping to pioneer high-tech with wrap-around project-based activities to solutions in this field. We support Columbia improve students’ reading and writing skills. University’s Digital Strategies to Promote The curriculum features computer simulations Resilience in Bereaved Families project, which aims to develop an online application of virtual workplace environments that involve students solving real world problems. These digital learning games help students develop (“app”) to help bereaved families evaluate and monitor their grief. Families can also share $1.5M Matching Gifts workplace knowledge while also developing their experiences, ask questions, and find self- to Schools and academic skills. assessment and referral materials in the app’s Childhood social space. Bereavement Childhood Bereavement Organizations As a life insurer, New York Life provides Volunteers for Good financial support to families suffering a loss. While the Foundation supports charities The New York Life Foundation supports financially, New York Life’s employees and bereaved families by funding organizations agents volunteer in communities all across which help grieving children. One example is through our support of the Tragedy Assistance the nation through our Volunteers for Good program. In 2015, our people volunteered over $1.8M 94,000 hours, helping raise money for medical Volunteer Program for Survivors’ (TAPS) Good Grief Grants Camps for kids grieving the death of a military research, working with at-risk youth in sports parent or family member. Each camper is programs, and refurbishing community matched with a trained military service facilities, among many other projects. person who acts as their “big buddy” for the $800K weekend; grief professionals lead therapeutic Matching Gifts and fun activities. Additionally, New York Life The Foundation also supports the schools and volunteers assist with registration, logistics childhood bereavement organizations close to Community and general support during camp. New York Life employees’ and agents’ hearts Impact Grants by matching their monetary gifts, up to $5,000 To support grieving children in their per calendar year. afterschool activities, the Foundation also supports the Boys and Girls Clubs of America’s Be There initiative, which helps its members cope with loss by fostering a culture of wellness across all Clubs. Through this grant, Clubs $206K Scholarships 2015 Annual Report 19


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    Management’s Discussion of Financial Responsibility Management is The company has complied with the auditors, in accordance with auditing responsible for the internal control over financial reporting standards generally accepted in the United preparation and requirements of the NAIC Model Audit States of America. Rule. The requirements are similar to those integrity of the We support strong and effective corporate required by the Sarbanes-Oxley Act of financial information 2002, in that they identify management’s governance from our Board of Directors, presented in the continuously review our business results responsibilities over its financial statements and strategic choices, and focus on financial Annual Report. and require management to certify as to stewardship. The Audit Committee of the integrity of the financial statements the Board of Directors of New York Life and the effectiveness of internal control Insurance Company, which is comprised over financial reporting. Our statement to exclusively of directors who are not officers that effect can be viewed on the company’s or employees of the company, meets regularly website, www.newyorklife.com. with management, the internal auditors, Certain of the financial information and the independent auditors to provide contained in this Annual Report has been oversight of management’s fulfillment of its derived from financial statements that have responsibilities for accounting controls and been audited by the company’s independent preparation of financial statements. Theodore A. Mathas John T. Fleurant Chairman of the Board and Executive Vice President and Chief Executive Officer Chief Financial Officer April 1, 2016 April 1, 2016 20 New York Life Insurance Company


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    Executive Management Committee Theodore A. Mathas Sheila K. Davidson Katherine O’Brien CHAIRMAN OF THE BOARD AND EXECUTIVE VICE PRESIDENT, CHIEF LEGAL OFFICER, SENIOR VICE PRESIDENT AND CHIEF EXECUTIVE OFFICER AND GENERAL COUNSEL CHIEF HUMAN RESOURCES OFFICER As CEO, Ted Mathas is responsible Sheila Davidson oversees all of Katherine O’Brien oversees all of for managing all aspects of the the company’s legal, compliance, and the human resources operations for company, including all domestic and corporate governance operations. New York Life. She is responsible for international business operations. In employee relations, talent acquisition addition, as chairman he has overall John T. Fleurant and management, HR business partners, responsibility for matters pertaining to EXECUTIVE VICE PRESIDENT AND and compensation and benefits. She CHIEF FINANCIAL OFFICER the Board of Directors. is also responsible for oversight of the John Fleurant oversees the company’s Office of Diversity and Inclusion. John Y. Kim finance functions, including accounting PRESIDENT AND CHIEF INVESTMENT OFFICER policy, financial reporting and controls, Joel M. Steinberg John Kim is responsible for the tax, treasury, financial planning SENIOR VICE PRESIDENT, CHIEF RISK OFFICER, business divisions of the company, and analysis, risk management, and AND CHIEF ACTUARY which include the Insurance and actuarial functions. He also oversees Joel Steinberg is responsible for Agency Group and the Investments corporate services. the oversight of risk management Group. He also oversees the company’s and actuarial activities across the technology operations and, in his role Mark Madgett company, including monitoring as Chief Investment Officer, has SENIOR VICE PRESIDENT AND HEAD OF AGENCY and measurement of risk, financial ultimate responsibility for management Mark Madgett leads the company’s reporting, product pricing and required of New York Life’s investments. career Agency distribution system, capital determination. which comprises approximately 12,000 Christopher O. Blunt agents affiliated with 119 General Susan A. Thrope EXECUTIVE VICE PRESIDENT AND Offices across the country, as well SENIOR VICE PRESIDENT, DEPUTY GENERAL COUNSEL, AND SECRETARY HEAD OF THE INVESTMENTS GROUP as the business units that provide Chris Blunt leads the Investments strategy and support for our agents Susan Thrope is responsible for the Group, which is comprised of asset and field managers. Office of the Corporate Secretary, management firms New York Life which assists New York Life’s chairman Investment Management and NYL George Nichols III and CEO in all matters pertaining to Investors, as well as the company’s SENIOR VICE PRESIDENT IN CHARGE OF the Board of Directors, its Standing retail and institutional annuity THE OFFICE OF GOVERNMENTAL AFFAIRS Committees, and the Executive businesses. In addition, he has George Nichols oversees New York Life’s Management Committee, including oversight for the company’s insurance Office of Governmental Affairs, which the development and administration operation in Mexico. monitors and advocates efforts related of policies, procedures, and legal to state, federal, and international advice with respect to corporate legislative and regulatory activity on governance matters. behalf of the company. He is responsible for assisting senior management in developing New York Life’s position and strategy on public policy issues and in communicating with key policymakers and regulators. 2015 Annual Report 21


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    New York Life Board of Directors Back, Left to Right: William G. Walter, Gerald B. Smith, Mark L. Feidler, Kent B. Foster, Thomas C. Schievelbein Front, Left to Right: Ralph de la Vega, Christina A. Gold, S. Thomas Moser, Theodore A. Mathas, Betty C. Alewine, Michele G. Buck, Edward D. Shirley 22 New York Life Insurance Company


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    Betty C. Alewine Kent B. Foster Edward D. Shirley Elected as a director in 1998, she Elected as a director in 1995, he is the Elected as a director in 2015, he is is the former president and chief former chairman and chief executive a former senior executive of The executive officer of COMSAT officer of Ingram Micro Inc. Mr. Foster Gillette Company and The Procter Corporation. Mrs. Alewine is chair of is a member of the Board’s Governance & Gamble Company, and the former the Board’s Governance Committee and Investment Committees. president and chief executive officer and is a member of the Compensation of Barcardi Limited. Mr. Shirley is Committee. Christina A. Gold a member of the Board’s Audit and Elected as a director in 2001, she is Insurance & Operations Committees. Michele G. Buck the former president, chief executive Elected as a director in 2013, she is officer, and director of The Western Gerald B. Smith the president, North America of Union Company. Mrs. Gold is a Elected as a director in 2012, he is the The Hershey Company. Ms. Buck is member of the Board’s Compensation chairman and chief executive officer a member of the Board’s Audit and and Governance Committees. of Smith, Graham & Co. Investment Insurance & Operations Committees. Advisors, L.P. Mr. Smith is chair of Theodore A. Mathas the Board’s Investment Committee Ralph de la Vega Elected as a director in 2006, he is and is a member of the Audit and Elected as a director in 2009, he is the chairman of the board and chief Compensation Committees. vice chairman of AT&T Inc., and chief executive officer of New York Life. executive officer of AT&T Business William G. Walter Solutions and AT&T International, S. Thomas Moser Elected as a director in 2009, he is LLC. Mr. de la Vega is chair of the Elected as a director in 2008, he is the former chairman, president Board’s Audit Committee and is a former vice chairman of KPMG, and chief executive officer of FMC a member of the Governance and LLP, the U.S. member firm of KPMG Corporation. Mr. Walter is a member Insurance & Operations Committees. International. Mr. Moser is chair of of the Board’s Investment and the Board’s Insurance & Operations Insurance & Operations Committees. Mark L. Feidler Committee and is a member of the Elected as a director in 2006, he is a Audit Committee. founding partner of MSouth Equity Partners and a former president and Thomas C. Schievelbein chief operating officer of BellSouth Elected as a director in 2006, he is Corporation. Mr. Feidler is a member the chairman, president and chief of the Board’s Compensation, executive officer of The Brink’s Governance, and Investment Company. Mr. Schievelbein is chair of Committees. He currently serves as the Board’s Compensation Committee the Board’s lead director. and is a member of the Governance and Investment Committees. 2015 Annual Report 23


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    Offices of New York Life Its major subsidiaries and affiliates (as of April 1, 2016) New York Life Insurance Company Group Membership www.newyorklife.com Association Division New York Life maintains nearly 120 1 Rockwood Road offices throughout the country, as well as a Sleepy Hollow, NY 10591 network of dedicated customer service 800-695-4226 centers. For questions about our products (Disability Insurance Claims) and services, please call your New York Life 800-792-9686 Agent or 800-692-3086. (Life Insurance Claims) Home Office Seguros Monterrey New York Life 51 Madison Avenue www.mnyl.com.mx New York, NY 10010 Headquarters 212-576-7000 Paseo de la Reforma #342, Piso 12 Col. Juárez Home Office – 06600 México D.F. Westchester Campus +52-55-53269000 1 Rockwood Road New York Life Investments Group Sleepy Hollow, NY 10591 www.nylinvestments.com 914-846-7000 The retail products of the New York Life Investments Group are available to consumers Long-Term Care through New York Life’s career Agents. For Insurance Division questions and further information, call your 6200 Bridgepoint Parkway New York Life Agent or 800-692-3086. To Suite 400 contact one of the New York Life Investments Austin, TX 78730 Group companies directly, please refer to the 800-224-4582 list below. NYL Direct NYL Investors LLC 5505 West Cypress Street www.newyorklife.com/nylinvestors Tampa, FL 33607 51 Madison Avenue 866-801-9615 New York, NY 10010 212-576-7000 24 New York Life Insurance Company


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    New York Life Investment Cornerstone Capital Management Management LLC www.cornerstonecapital.com 51 Madison Avenue 1180 Avenue of the Americas, 22nd Floor New York, NY 10010 New York, NY 10036 212-576-7000 212-938-6500 3600 Minnesota Drive, Suite 70 MainStay Investments1 Minneapolis, MN 55435 www.mainstayinvestments.com 952-229-8100 30 Hudson Street Jersey City, NJ 07302 800-624-6782 GoldPoint Partners LLC www.goldpointpartners.com 51 Madison Avenue, Suite 1600 Ausbil Investment New York, NY 10010 Management Limited 212-576-6500 www.ausbil.com.au Level 27 Institutional Capital LLC (ICAP) 225 George Street www.institutionalcap.com Sydney NSW 2000 353 N Clark Street, Suite 3500 Australia Chicago, IL 60654 +61 2 9259 0200 312-424-9100 Candriam Investors Group MacKay Shields LLC www.candriam.com www.mackayshields.com 1345 Avenue of the Americas Belgium New York, NY 10105 Avenue des Arts 58 212-758-5400 B-1000 Bruxelles Belgium +32 2 509 60 00 Madison Capital Funding LLC www.mcfllc.com France 30 South Wacker Drive, Suite 3700 40, rue Washington Chicago, IL 60606 75408 Paris Cedex 08 312-596-6900 France +33 1 53 93 40 00 Private Advisors, LLC www.privateadvisors.com Luxembourg 901 East Byrd Street, Suite 1400 136, route d’Arlon Richmond, VA 23219 1150 Luxembourg 804-289-6000 Luxembourg +352 27 97 1 1 MainStay Investments is a registered service mark and name under which New York Life Investment Management LLC does business. 2015 Annual Report 25


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    Glossary of Terms Policyholder Benefits and Dividends1 – reflect the consolidated results of Annuity Sales – represent premium income on our deferred annuities (both NYLIC and its domestic insurance subsidiaries presented on a statutory basis. fixed and variable) and on our Guaranteed Income Annuities, which includes Intercompany transactions have been eliminated in consolidation. Benefits our immediate fixed annuity product (Guaranteed Lifetime Income) and primarily include death claims paid to beneficiaries and annuity payments. our flexible premium deferred income annuity product (Guaranteed Future Dividends are payments made to eligible participating policyholders from Income). Sales are generally recognized when premiums are received. divisible surplus. Divisible surplus is the portion of the company’s total surplus Annuities are primarily issued by NYLIAC. that is available, following each year’s operations, for distribution in the form of dividends. Each year the board of directors votes on the amount and allocation Mutual Fund Sales – represent total cash deposited to new and existing accounts of the divisible surplus. of the MainStay Funds, New York Life’s proprietary mutual funds. MainStay Funds are managed by New York Life Investment Management LLC and distributed Individual Life Insurance In Force2 – represents the total face amount of through NYLIFE Distributors LLC, a wholly owned subsidiary of New York Life individual life insurance contracts (term, whole life and universal life) outstanding Insurance Company. for NYLIC and its domestic insurance subsidiaries at a given time. Assets Under Management – consists of the cash and invested assets and 1 NYLIC’s policyholder benefits and dividends were $6.92 billion and $6.44 billion separate account assets of the company’s domestic and international insurance for the 12 months ended December 31, 2015 and 2014, respectively. NYLIAC operations and assets the company manages for third-party investors, including policyholder benefits were $2.91 billion and $2.64 billion for the 12 months ended mutual funds, separately managed accounts, retirement plans and assets under December 31, 2015 and 2014, respectively. Dividends are not guaranteed. administration associated with only those agreements under which New York Life Investments3 receives a revenue share. 2 The Company’s individual life insurance in force totaled $923.43 billion at December 31, 2015 (including $174.44 billion for NYLIAC). Operating Earnings – is the measure used for management purposes to track 4 the company’s results from ongoing operations and the underlying profitability 3 NYL Investments is a service mark used by New York Life Investment of the business. This metric is based on accounting principles generally accepted Management Holdings LLC and its subsidiary, New York Life Investment in the United States of America (GAAP) with certain adjustments we believe are Management LLC. more appropriate as a measurement approach (non-GAAP). Operating earnings equal GAAP net income adjusted for, primarily, the removal of gains and losses 4 A reconciliation of operating earnings to the Company’s consolidated GAAP from investments and related adjustments. net income is available on the company’s website (www.newyorklife.com). Surplus and Asset Valuation Reserve – Total surplus, which includes the Asset 5 Adjustments are made to reflect the relative importance of certain sales, Valuation Reserve, is one of the key indicators of the company’s long-term financial primarily: single premium sales sold through our Agents and Advanced strength and stability and is presented on a consolidated basis of the company. Markets Network (AMN) retail distribution channel, our network of independent agents and brokers, are counted at 10 percent. Sales are Insurance Sales5 – represent annualized first-year premium on participating generated from both domestic and Mexican operations. issued whole life insurance, term life insurance, universal life insurance, long- term care insurance and other health insurance products. A sale is generally Where applicable, prior period numbers have been restated to conform to counted when the initial premium is paid and the policy is issued. current year definition. MainStay Funds are managed by New York Life Investment Management, LLC, an indirect wholly owned subsidiary of New York Life Insurance Company, an indirect wholly owned subsidiary of New York Life Insurance Company, provides investment advisory products and services. and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ, 07054, a wholly owned subsidiary of New York Life Insurance Variable annuities are issued by New York Life Insurance and Annuity Company, Member FINRA/SIPC. Corporation and distributed by NYLIFE Distributors, LLC, Member FINRA/ SIPC and are offered by a prospectus. Contact your financial professional or For more information about MainStay Funds, call 800-MAINSTAY (624-6782) call 800-598-2019 for a prospectus. for a prospectus, or a summary prospectus. Investors are asked to consider the investment objectives, risks and charges and expenses carefully before Investors are asked to consider the investment objectives, risks, charges investing. The prospectus and summary prospectus contains this and other and expenses of the investments carefully before investing. Both the information about the investment company. Please read the prospectus or product and the underlying fund prospectuses contain this and other summary prospectus, carefully before investing. information about the product and underlying investment option. Please read the prospectus carefully before investing. MainStay Investments is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, 26 New York Life Insurance Company


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    7777 (4/16) New York Life Insurance Company 51 Madison Avenue New York, NY 10010 www.newyorklife.com (800) 692-3086


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