Financial Crisis of Early 21st Century
According to their Report to Policyholders 2007, in early 2007 the company's managers became concerned about the state of credit markets, so in February 2007 "based on our belief that the markets were acting irrationally" New York Life decided to move much of its cash flow into safer investments such as US Treasury bonds. "By August 2007, the credit market problems we had feared were front page news," the Report notes.
In November 2008, the company announced it will not participate in the Troubled Asset Relief Program. "The company can meet all of its strategic objectives without government capital, its businesses are strong and profitable, and it is committed to remaining a mutual company operating for the sole benefit of its policyholders," states a company press release.
Theodore "Ted" Mathas, president and CEO in 2008, said at the time of the financial crisis that New York Life is "built for times like these." This phrase became the title for the 2008 report to policyholders. Ted Mathas becomes the company chairman on June 1, 2009.
New York Life maintains "superior" financial ratings from A.M. Best, Fitch Ratings, Moody's and Standard and Poor's, all of which have reaffirmed the ratings during the financial crisis of autumn 2008.
Read more about this topic: New York Life Insurance Company
Famous quotes containing the words financial, crisis, early and/or century:
“For the merchant, even honesty is a financial speculation.”
—Charles Baudelaire (1821–1867)
“We can’t afford the wrath of Heaven. We survived a deluge by the skin of our teeth, but an economic crisis would be disastrous.”
—Friedrich Dürrenmatt (1921–1990)
“I have always had something to live besides a personal life. And I suspected very early that to live merely in an experience of, in an expression of, in a positive delight in the human cliches could be no business of mine.”
—Margaret Anderson (1886–1973)
“Even the ignorant may appear very worthy,
If they keep silent before the learned.”
—Tiruvalluvar (c. 5th century A.D.)