Published: January 20, 2012
New York Life Appoints John Kim and Chris Blunt to New Business Roles
NEW YORK - (BUSINESS WIRE) - New York Life Insurance Company, America's largest mutual life insurer,
announced today the re-organization of the company into two major
business units: the Insurance Group and the Investments Group. Executive
Vice President Chris Blunt and Executive Vice President John Y. Kim have
been named to run these two businesses, which provide protection, wealth
accumulation, and guaranteed income products and solutions for millions
of Americans.
Mr. Blunt, who has headed the company's Retirement Income Security (RIS)
business since its formation in 2008, will now run the company's
industry-leading insurance business, which has been the core business of
New York Life since its founding in 1845. New York Life leads the
industry in new life insurance premium written, with a market share of
11.7% in the United States.1
Mr. Kim, who is the company's chief investment officer and head of New
York Life Investments, will assume additional responsibility for RIS
products and solutions, which is being combined with New York Life
Investments. New York Life is a leader in providing guaranteed lifetime
income, with a 27.8% market share in fixed immediate annuities.2
The company's other popular solutions include fixed deferred annuities
and variable annuities. New York Life Investments, which Mr. Kim has led
since 2008, has $285 billion in assets under management. The combined
businesses will operate as New York Life's Investments Group.
Executive Vice President Mark Pfaff, who has run the Agency Department
since 2006 and had additional responsibility for life insurance since
2008, will continue to run the company's agency force of 12,000 career
agents. The career agency distribution system is considered New York
Life's most important market differentiator, with agents serving clients
in cities and towns across America. New York Life has led the industry
for 57 consecutive years in agents qualifying for MDRT3, the
premier association of financial professionals. Qualifying agents
demonstrate exceptional professional knowledge, strict ethical conduct
and outstanding client service. Life insurance sales through the
company's career agency system have increased 32% since 2006 and agency
manpower has increased 29% since that time.
Ted Mathas, chairman and CEO of New York Life, said, "This strategic
alignment maintains our industry-leading life insurance business as our
flagship core business, enhances the prospects of New York Life becoming
a true leader in retirement solutions beyond income annuities, where we
lead today, and keeps career agency as our defining core distribution
system going forward, as it has been throughout our history. We are
confident that these moves will enable us to continue to generate strong
growth across our business lines, add consumer benefits to our products
and solutions, and enhance the long-term strength of our company, all to
the benefit of our millions of policyholders."
Mr. Mathas said the alignment also further streamlines the business
groups of New York Life for improved coordination and efficiency. In
addition to Mr. Blunt's responsibility for U.S. life insurance, he will
also be responsible for the company's long-term care insurance business
and the marketing, finance, technology, and service functions that
support those product lines. The newly created Insurance Group also
includes the supplemental distribution channels for the U.S. life
business: the direct response business in Tampa, FL, which is the
leading direct marketer of life insurance in the U.S. through an
endorsed program with AARP geared to its membership; and the Group
Membership Association business, which is the largest underwriter of
professional association insurance programs in the U.S., covering
members of more than 500 associations across the country. Given their
closeness to the core U.S. life business, both geographically and
strategically, New York Life's operations in Mexico are being
incorporated into the Insurance Group, as well.
Mr. Mathas said the alignment of former RIS businesses under Mr. Kim is
designed to take further advantage of the fast-growing retirement area
in which consumers first accumulate funds for retirement and later
convert a portion of those funds for guaranteed lifetime income in
retirement. With his new responsibilities as head of the Investments
Group, Mr. Kim will have a broad array of institutional and retail
products and solutions under his leadership, including retail mutual
funds and annuities, and institutional asset management and retirement
plan services. The marketing, finance, technology, distribution and
service functions that support those product lines are also part of the
Investments Group.
Mr. Mathas said, "This alignment also allows our incredible career
agency system to remain the primary focus of its outstanding leader,
Mark Pfaff, who has steadily increased the number and productivity of
New York Life agents in his five years at the helm of our Agency
operations. With his keen sense of purpose and extensive experience in
agency management, Mark has led us to the first double-digit market
share in new life insurance premium in the company's long history, an
achievement driven almost entirely by our career agents."
Insurance Group
On a consolidated basis, sales of the new Insurance Group operations
were approximately $3.3 billion in 2011.
Mr. Blunt said, "New York Life has remained true to its mutual form of
governance since its founding 166 years ago, and through economic
crises, world wars and pandemics, the company has kept its promises to
its policyholders. The current financial crisis has only served to
highlight once more the importance of financial strength when choosing a
life insurer. With Americans under financial strain today, our goal is
to help those who are insured today keep their policies in force,
protecting their families and businesses, and to help those underinsured
or uninsured to acquire the peace of mind that life insurance can
provide. We relish our role as a force for good, fulfilling promises
every day." He noted that New York Life paid out $4 billion to
beneficiaries in 2011.
Investments Group
On a consolidated basis, sales of the new Investments Group were more
than $50 billion and assets under management were approximately $300
billion in 2011.
Mr. Kim said, "New York Life ranks as one of the largest asset
management firms in the United States, and adding our rapidly growing
annuity and mutual fund businesses to our investment capabilities will
further fuel this growth. It will allow all of our investment
professionals to work even more closely together to provide thoughtful
and meaningful solutions for our customers. Our ability to design and
execute solutions is even more important today with the pending
retirements of 77 million baby boomers and millions of others who are
striving to accumulate savings for their retirements, their children's
college educations, and many other hopes and dreams."
Messrs. Blunt, Kim and Pfaff are members of New York Life's Executive
Management Committee, which comprises its senior executive leadership
and assists the CEO in setting policy for the company. All three
executives report directly to Mr. Mathas.
Mr. Blunt graduated from the University of Michigan and holds an MBA
degree from the Wharton School of the University of Pennsylvania. He
joined New York Life in 2004. Mr. Kim also graduated from the University
of Michigan and holds an MBA degree from the University of Connecticut.
He joined New York Life in 2008. Mr. Pfaff is a graduate of Manhattan
College. He joined New York Life in 1985 as an agent in New Jersey and
entered sales management in 1988.
About New York Life
New York Life Insurance Company, a Fortune 100 company founded in
1845, is the largest mutual life insurance company in the United States4
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+).5 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 Investments6
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. Please visit New York
Life's Web site at www.newyorklife.com
for more information.
1Market share calculations based on New York Life's analysis
of results from LIMRA International, Third Quarter 2011 U.S. Individual
Life Insurance Sales Survey. Single premiums counted at 100%. Counting
singles at 10%, New York Life also leads the industry with a 6.5% market
share.
2Source: LIMRA International Source: LIMRA International,
U.S. Individual Annuity Sales Survey, Fixed Immediates, Third Quarter
2011 results. (Fixed Immediates include Fixed Period Annuities.)
3Formerly known as the Million Dollar Round Table.
4Based on revenue as reported by "Fortune 500, Ranked
within Industries, Insurance: Life, Health (Mutual)," Fortune
Magazine, May 5, 2011. See www.money.cnn.com/magazines/fortune
for methodology.
5Source: Individual Third Party Ratings Report as of 8/23/11.
6New York Life Investments is a service mark used by New York
Life Investment Management Holdings LLC and its subsidiary, New York
Life Investment Management LLC.
New York Life
William Werfelman, 212-576-5385
William_Werfelman@newyorklife.com
or
Terri
Wolcott, 212-576-5624
Theresa_M_Wolcott@newyorklife.com
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