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:
“What people don’t realize is that intimacy has its conventions as well as ordinary social intercourse. There are three cardinal rules—don’t take somebody else’s boyfriend unless you’ve been specifically invited to do so, don’t take a drink without being asked, and keep a scrupulous accounting in financial matters.”
—W.H. (Wystan Hugh)
“A crisis unmasks everyone.”
—Mason Cooley (b. 1927)
“Names on a list, whose faces I do not recall
But they are gone to early death, who late in school
Distinguished the belt feed lever from the belt holding pawl.”
—Richard Eberhart (b. 1904)
“Do not count your chickens before they are hatched.”
—Aesop (6th century B.C.)