In light of the economic crisis that exposed companies thought to be safe and well-established, but that had actually taken on far too much risk, New York Life Insurance has introduced a new stable-value offering for defined contribution plans and advisers that underscores its AAA rating.
“There is a lack of capacity in the stable-value market today,” said Don Salama, senior managing director of the retirement plan business at New York Life Investments. “Sponsors and advisers are clamoring for stable-value products with the backing of a solid financial institution for their participants. The AAA rating maintained by New York Life Insurance Co. provides a credibility that is unsurpassed in the stable-value marketplace right now.”
The new offering rounds out the stable-value group annuity New York Life recently introduced, the Guaranteed Interest Account, and another group annuity stable-value offering, the New York Life Insurance Company Anchor Account. In conjunction with this, by the end of the year, New York Life’s defined contribution investment-only sales staff will double to eight professionals, as the firm expects its current $2.3 billion in DCIO assets will expand in 2010 and beyond.
“We feel it’s the perfect time for us in the stable-value arena,” added Jeff Keller, managing director of New York Life Investments’ defined contribution investment-only group. “In light of the recent recession and market turmoil, defined contribution plan providers and intermediaries want to know their stable-value provider is in top financial shape and will make good on its guarantees.”