New York Life Global Funding - Irish Stock Exchange

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In 2011 and 2010, there were no instances in which the Company discontinued cash flow hedge accounting because the forecasted transactions did not occur on the anticipated date or in the additional time period permitted. There were no other unrealized gains or losses recoqnized during the reporting period resulting from derivatives that no longer qualify for hedge accounting. The following table presents the effects of derivatives in cash flow hedging relationships in the accompanying Statutory Statements of Operations and Statutory Statements of Changes in Surplus for the years ended December 31, 2011 and 2010 (in millions). Cash Flow Hedging Relationships Amount of Gain or (Loss) Recognized in Surplus on Derivatives 1 Amount of Gain or (Loss) Recognized in Net Realized Capital (Losses) on Derivatives 2 Amount of Gain or (Loss) Recognized in Net Investment Income on Derivatives 2 Amount of Gain or (Loss) Recognized in Other Income on Derivatives 2 2011 2010 2011 2010 2011 2010 2011 2010 $ $ - $ 19 $ 9 $ 3 $ 3 $ - $ - Interest rate contracts - Currency contracts (82) 49 86 (13) (1) (19) (12) (19) Total $ (82) $ 49 $ 105 $ (4) $ 2 $ (16) $ (12) $ (19) 1 The amount of gain or (loss) recognized in surplus is reported as a change in net unrealized gains (losses) in the accompanying Statutory Statements of Changes in Surplus. 2 The amount of gain or (loss) recognized in net income is reported in net realized capital (losses), net investment income or other income in the accompanying Statutory Statements of Operations. The amounts include periodic settlement payments received or paid on the derivatives. Fair Value Hedges For fair value hedges, in which derivatives hedge the fair value of assets and liabilities, changes in the fair value of derivatives are reported based on how the change in the fair value of the underlying asset or liability being hedged is reported. The Company designates and accounts for the following as fair value hedges when they have met the requirements for a qualified hedge: (i) interest rate swaps to convert fixed rate investments to floating rate investments; (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated investments; (iii) equity swaps to hedge the market price risk for common stock investments. For fair value hedges, the Company generally uses a qualitative assessment to assess hedge effectiveness, which matches the critical terms of the derivative with the underlying hedged item. For fair value hedges of equity investments, the Company uses regression analysis, which measures the correlation to the equity exposure being hedged. The Company’s fair value hedges are primarily hedges of fixed maturity securities. The Company did not have any fair value hedges in 2011 and 2010. 48
Net Investment Hedges The following table presents the effects of derivatives in net investment hedging relationships in the accompanying Statutory Statements of Changes in Surplus for the years ended December 31, 2011 and 2010 (in millions): Derivatives in Net Investment Hedging Relationships Currency contracts 3 Amount of Gain or (Loss) Recognized in Surplus on Derivatives 1 Amount of Gain or (Loss) Recognized in Net Realized Capital (Losses) on Derivatives 2 2011 2010 2011 2010 $ $ (12) $ - $ - 1 The amount of gain or (loss) is reflected in unrealized gains and losses as part of the foreign currency translation adjustment in the accompanying Statutory Statements of Changes in Surplus. 2 The amount of gain or (loss) recognized in net income is reported in net realized capital gains (losses) in the accompanying Statutory Statements of Operations. Derivatives Not Qualifying or Designated as Hedging Instruments The Company has derivative instruments that are not designated or do not qualify for hedge accounting treatment. The following table provides the classification and amount of gains and losses on derivative instruments not designated as hedging instruments for the years ended December 31, 2011 and 2010 (in millions): Amount of Gain or (Loss) Recognized in Net Realized Capital (Losses) on Amount of Gain or (Loss) Recognized in Net Investment Income on Derivatives not Qualifying or Designated as Hedging Amount of Gain or (Loss) Recognized in Surplus on Derivatives 1 Derivatives 2 Derivatives 2 Amount of Gain or (Loss) Recognized in Other Income on Derivatives 2 2011 2010 2011 2010 2011 2010 2011 2010 Interest rate swaps $ 224 $ 190 $ (60) $ (76) $ 15 $ (7) $ 18 $ 2 Interest rate options (68) 25 (38) 106 (21) (6) - - Currency swaps 126 (230) (55) 31 27 22 (4) 59 Currency forwards 37 2 - (44) - - - - Equity options - - - - - - - - Treasury locks 31 (24) 59 - - - - - Inflation swaps (10) (1) - - - (1) - - Futures - - - (138) - - - - Credit default swaps CDS - buy protection 1 1 (1) (1) - - - - Bond call option 6 (6) (2) - (7) (7) - - Total $ 347 $ (43) $ (97) $ (122) $ 14 $ 1 $ 14 $ 61 1 The amount of gain or (loss) recognized in surplus is reported as a change in net unrealized gains (losses) in the accompanying Statutory Statements of Changes in Surplus. 2 The amount of gain or (loss) recognized in net income is reported in net realized capital (losses), net investment income or other income in the accompanying Statutory Statements of Operations. The amounts include periodic settlement payments received or paid on the derivatives. 49
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 and 12: A reconciliation of the Company’s
Page 13 and 14: Structured Securities”. The revis
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: December 31, 2010 Derivative type P
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
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New York Life Global Funding - Irish Stock Exchange

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