New York Life officials said Wednesday that sales of the insurance company's MainStay [see profile] mutual fund family totaled north of $14 billion in the first three quarters of the year.
That's up 79 percent from a year ago.
Of the $14 billion, $11 billion came via third-party channels.
Strong Sales Continue for New York Life Through the Third Quarter of 2011
Sales of Life Insurance, Income Annuities and Mutual Funds Continue to Surge
New York Life Insurance Company, America’s largest mutual life insurer, today announced very strong third quarter gains in sales of life insurance, income annuities and mutual funds, as well as a solid increase in field force new hires in the first nine months of 2011.
Continued Strong Life Insurance Growth
Individual life insurance sales increased 10% through September compared with the first nine months of 2010. This growth is being driven by agents, with life insurance sales through the company’s national field force up 11% over the same 2010 period.(a) The company’s Custom Whole Life product, an innovative form of whole life that allows consumers to choose how long they pay premiums, continues as the most popular whole life product with a sales increase of 21% over the same period last year.
"Families and businesses across the country continue to need to make financial decisions and what has become even more clear to them as the economy continues to sputter is that they have a strong need for the protection that life insurance provides. With a continued leading 11.9% life insurance market share(b), and solid growth across product lines, New York Life’s 11,900 agents across the country are meeting the needs of individuals who have been under the pressure of three years of a rocky economy, and we are proud that New York Life is providing for so many who seek safety and security,” said Mark Pfaff, executive vice president in charge of U.S. Life and Agency.
“With more than $3.26 billion paid to New York Life beneficiaries through October, it is this infusion of life insurance proceeds that help families and businesses deal with the financial ramifications of a significant loss,” added Mr. Pfaff.
Solid Income Annuity and Mutual Fund Sales Continue
New York Life continues as the market share leader in fixed immediate annuities(c) with an increase of 23% over the same period last year, led by strong sales through New York Life agents and third-party distribution channels. Our new Guaranteed Future Income Annuity contributed to the strong sales growth with sales of $100 million to date since its July 2011 launch.
“Studies have shown that income annuity owners feel more confident about their income in retirement than pre-retirees and retirees who don’t have enough guaranteed lifetime income in retirement. Our continued strong sales growth proves that more Americans are carefully planning for their needs in retirement and we are pleased that income annuities are being appreciated more and more as part of the solution,” said Chris Blunt, executive vice president in charge of Retirement Income Security.
Sales of New York Life’s affiliated mutual funds (The MainStay Funds) are up 79%, totaling more than $14 billion in the first nine months of the year, with strong performances from third-party channels accounting for more than $11 billion of the total. In Barron’s ranking of mutual fund families, MainStay Funds ranked third out of 46 fund families for the 10-year period ended December 31, 2010 − the second year in a row that MainStay commanded the number three spot.(d)
“The sales growth of MainStay Funds proves we are delivering a very attractive value proposition to the marketplace and is a reflection of the strong performance of our individual fund offerings,” said Mr. Blunt.
Field Force Increases Nationwide
Recruitment of the company’s field force is up 4% for the first nine months of 2011 compared to the same period in 2010.
In September over 30 offices across the country held a National Sales Careers Day where our local offices were open to the public to educate Americans on the benefits of a career with New York Life and approximately 500 jobseekers had the opportunity to talk to managers and agents and see if the career is a fit for them. In addition, New York Life employees have referred 98 individuals as agent candidates.
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“The one common thread in these leads is the recognition that work as an agent for New York Life is a great career choice,” said Rich Simonetti, vice president in charge of recruiting.
New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States(e) and one of the largest life insurers in the world. New York Life has the highest possible financial strength ratings currently awarded to any life insurer from all four of the major credit rating agencies: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s (AA+).(f) Headquartered in New York City, New York Life's family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life Investments(g) provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as retail mutual funds.