New York Life Global Funding - Irish Stock Exchange

More documents

Recommendations

Info

guarantee is remote. This includes related party guarantees, except when the transaction is considered an “unlimited guarantee,” such as a rating agency requirement to provide a commitment to support a subsidiary, or a guarantee made on behalf of a wholly owned subsidiary. The guidance also requires new disclosures for the reporting entity’s guarantees. This guidance applies to all guarantees issued and outstanding as of December 31, 2011. The Company’s adoption of this guidance effective December 31, 2011 resulted in a $4 million reduction to Statutory Surplus that was recorded as a change in accounting principle. During 2010, the NYSDFS issued Circular Letter No. 11 (2010), dated August 6, 2010, as well as the Seventh Amendment to Regulation No. 172, Financial Statement Filings and Accounting Practices and Procedures (“Reg. 172”), dated December 9, 2010. Circular Letter No.11 clarified the accounting for deferred premium assets when reinsurance is involved. Reg. 172 prescribed the establishment of an admitted unearned reinsurance premium asset. The associated $135 million decrease in the deferred premium asset and loading and the additional $51 million unearned reinsurance premium asset replaced a $23 million reinsurance reserve credit adjustment that was made for December 31, 2006 and later reporting dates in response to an industry-wide reinsurance credit treatment proposed by the California Insurance Department. The net impact of these changes resulted in a direct decrease to Statutory Surplus of $39 million, net of taxes, that was recorded as a change in accounting principle. Discontinued Operations On October 26, 2010, NYL Enterprises entered into a definitive agreement (“the Share Purchase Agreement”) to sell its South Korea and Hong Kong subsidiaries to ACE INA International Holdings, Ltd. The sale of South Korea closed on February 1, 2011 and the sale of Hong Kong closed on April 1, 2011. On January 7, 2011, the Company announced definitive agreements with its Chinese joint venture partner Qingdao Haier Investment & Development Company Limited and Japanese insurer Meiji Yasuda Life Insurance Company to sell the Company’s ownership stake in Haier New York Life Insurance Company Limited (“HAIER”), the joint venture life insurance company formed between the Company and Qingdao Haier Investment & Development Company Limited in 2002. The sale closed on January 28, 2011. On February 17, 2011, the Company announced a definitive agreement between NYL Enterprises and the Company's Thai affiliate (collectively "the New York Life Companies") and Siam Commercial Bank Public Company Limited ("SCB") to sell the New York Life Companies' ownership stake in Siam Commercial New York Life Insurance Public Company Limited, a joint venture life insurance company formed between the New York Life Companies and SCB in 2000. The sale closed on March 17, 2011. New Accounting Pronouncements In October 2010, the NAIC revised guidance pertaining to disclosure of withdrawal characteristics. These revisions expand the disclosure requirements for annuity actuarial reserves and deposit liabilities by withdrawal characteristics in accordance with the following categories: general account, separate account with guarantees, separate account nonguaranteed and the total. This guidance which was effective January 1, 2011 had no financial impact on the Company. The required disclosures have been incorporated in Note 8 – Insurance Liabilities. In October 2010, the NAIC modified the definition of loan-backed and structured securities included in SSAP No. 43R, “Loan-Backed and Structured Securities,” (“SSAP 43R”) an amendment of SSAP No. 43, “Loan-Backed and Structured Securities”, replacing SSAP No. 98, “Treatment of Cash Flows When Quantifying Changes in Valuation and Impairments, an Amendment of SSAP No. 43-Loan-Backed and 12
Structured Securities”. The revised definition expands the requirement to include any securitized asset where the underlying cash flows are from all types of asset pools and not just those emanating from either mortgages or securities. Regardless of the underlying collateral, each security issued through a special purpose entity, trust, or limited liability company, when the Company’s recourse is limited to the assets of the issuing entity, is expected to be reported as a SSAP 43R security, not as an issuer obligation under SSAP No. 26, “Bonds, excluding Loan-Backed and Structured Securities.” This guidance was effective January 1, 2011. The Company reclassified securities with a book value of $1,653 million as a result of this new guidance. In October 2010, the NAIC adopted substantive revisions to SSAP No. 35, “Guaranty Fund and Other Assessments”. The revised SSAP modifies the conditions required before recognizing liabilities for insurance-related assessments. The accounting for guaranty fund assessments would be determined in accordance with the type of guaranty fund assessment imposed, and would incorporate the concept of an "obligating event" for prospective-based premiums assessments in determining whether a liability should be accrued. The Company’s adoption of this guidance effective January 1, 2011 did not have a material effect on the Company’s financial statements. In June 2010, the NAIC clarified its intent on bifurcation of all realized gains and losses on sales of loanbacked and structured securities. This new guidance requires a cash flow analysis at date of sale to bifurcate the realized gain or loss between credit and noncredit. The credit portion goes to the asset valuation reserve (“AVR”) and the noncredit portion to the interest maintenance reserve (“IMR”). This guidance was issued as a revision to SSAP No. 43R. The adoption of this guidance effective January 1, 2011 did not have a material impact on the Company’s financial statements. In December 2011, the NAIC further expanded on its guidance for determining NAIC designations for all loan-backed and structured securities (“LBASS”). The RMBS initiative, which began in 2009 to create a modeling and rating process for non-agency residential mortgage-backed-securities (“RMBS”), was expanded in 2010 to include commercial mortgage-backed-securities (“CMBS”) and all other LBASS securities (ABS, CBO, CMO, etc.). In December 2011, this guidance was amended to allow securities rated by the Securities Valuation Office (“SVO”) or certain securities rated by an Acceptable Rating Organization (“ARO”) to utilize those ratings. As part of this initiative, all LBASS designations are to be determined using one of the following four methods: (i) modeling for RMBS and CMBS; (ii) derived from SVO or ARO ratings where rated securities are not modeled and certain criteria is met; (iii) derived from Modified Filing Exempt process, where securities are not modeled, have a NAIC designation from 2-5 using the ARO equivalent, or are not rated by the SVO or an ARO; or (iv)the current 5*/6* rule. A security’s carrying amount is based upon the initial NAIC Designation, which is determined using the security's amortized cost. A final NAIC designation is determined using the security’s carrying amount. This final NAIC designation is applicable for all statutory accounting and reporting purposes, including establishing IMR, AVR, and Risk Based Capital (“RBC”) except for establishing the appropriate carrying value. This guidance was effective for December 31, 2011 and did not have a material impact on the Company's financial statements. In May 2010, the NAIC modified SSAP No. 91R, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities” (“SSAP 91R”), effective for December 31, 2010. This statement addresses collateral requirements for securities lending transactions and repurchase agreements by (1) clarifying that collateralization should be measured as the fair value of the collateral obtained, (2) defining when collateral is on or off balance sheet in securities lending transactions, and (3) clarifying that the change in fair value of reinvested collateral represents a separate risk and should be evaluated for other-than-temporary impairments. The Company adopted this guidance effective December 31, 2010; however, it did not have a material impact on the Company’s financial statements. 13
Page 1 and 2: New York Life Global Funding $11,00
Page 3 and 4: NEW YORK LIFE INSURANCE COMPANY FIN
Page 5 and 6: NEW YORK LIFE INSURANCE COMPANY STA
Page 11: A reconciliation of the Company’s
Page 15 and 16: • life insurance companies are re
Page 17 and 18: The following table reconciles the
Page 19 and 20: are adjusted to reflect historical
Page 21 and 22: Real estate held for the production
Page 23 and 24: Dividends to Policyholders The liab
Page 25 and 26: Benefit Plans The Company maintains
Page 27 and 28: During periods of low or declining
Page 29 and 30: 2011 2010 Estimated Estimated Carry
Page 31 and 32: Common and Preferred Stocks The car
Page 33 and 34: The Company maintains a watchlist o
Page 35 and 36: The related allowance for credit lo
Page 37 and 38: issued to the Federal Home Loan Ban
Page 39 and 40: Proceeds from investments in bonds
Page 41 and 42: 2010 Less than 12 months Greater th
Page 43 and 44: NOTE 5 - DERIVATIVE FINANCIAL INSTR
Page 45 and 46: Income Generation The Company seeks
Page 47 and 48: December 31, 2010 Derivative type P
Page 49 and 50: Net Investment Hedges The following
Page 51 and 52: Loan Agreement, when aggregated wit
Page 53 and 54: agreements. At December 31, 2011 an
Page 55 and 56: Life Reserves Reserves for life ins
Page 57 and 58: of NY was $5,033 million of which $
Page 59 and 60: Fair value separate accounts fundin
Page 61 and 62: The following is a reconciliation o
Page 63 and 64:
The tax effects of temporary differ
Page 65 and 66:
As discussed in Note 2 - Significan
Page 67 and 68:
at an adjusted treasury rate plus 2
Page 69 and 70:
The assets of the Pension Plan and
Page 71 and 72:
The tables below are for financial
Page 73 and 74:
Weighted-average assumptions used t
Page 75 and 76:
eimbursements under the ERRP for ce
Page 77 and 78:
The fair values of the Pension Plan
Page 79 and 80:
The fair values of other postretire
Page 81 and 82:
All participants who complete an ho
Page 83 and 84:
participants age 50 and over to mak
Page 85 and 86:
Guarantees At December 31, 2011 the
Page 87 and 88:
Nature and circumstances of guarant
Page 89 and 90:
At December 31, 2011, the lease agr
Page 91 and 92:
The following tables present the te
Page 93 and 94:
The following table presents the ch
Page 95 and 96:
NOTE 16 - WRITTEN PREMIUMS Deferred
Page 97 and 98:
Mortgage loans The estimated fair v
Page 99 and 100:
The levels of the fair value hierar
Page 101 and 102:
The following table represents the
Page 103 and 104:
Transfers between Levels 1 and 2 Du
Page 105 and 106:
and on-going review of third-party
Page 107 and 108:
APPENDIX 107
Page 109 and 110:
IMPAIRMENTS TAKEN ON CURRENT HOLDIN
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
show all

New York Life Global Funding - Irish Stock Exchange

Create successful ePaper yourself

Delete template?

Save as template?