Your Key to Reliable Liquidity
Insurance companies play a key role within the U.S. housing market. The Federal Home Loan Bank of New York (FHLBNY) promotes housing and economic development by providing low-cost, flexible liquidity to member financial institutions. This closely aligns with our insurance company members’ significant investments and participation in the mortgage market along with their economic development initiatives. Our insurance company members count on us to be a reliable and stable source of liquidity in any market condition.
Membership and advances by insurance companies have increased exponentially as more and more realize the integral role the FHLBNY plays to insurers looking to converge liquidity and working capital needs (as shown in the chart to the right). Overall, the Federal Home Loan Bank System (FHLBanks) has over 400 insurance company members, while the percentage of all FHLBanks borrowings by insurance companies has more than quadrupled between 2007 and 2018.
Insurance companies typically capitalize on their membership to satisfy contingent and strategic funding needs, in addition to financing capital, acquisition costs, and new facilities. This enables them to manage their liquidity positions and obtain affordable financing to support lending, investing, daily operations and grow their business in order to support the housing markets and the communities they serve.
Since the FHLBNY is structured as a cooperative, our members are shareholders. Paid from 2019 income, we returned $352.5 million in dividends to our members for a full-year dividend rate of 6.35%. This high performance is a testament to our dedication to provide value to our members.
FHLBNY Insurance Company Members
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American Home Assurance Company
Ameritas Life Insurance Corp. of NY
Build America Mutual Assurance Company
Cumberland Mutual Fire Insurance Company
Equitable Financial Life Insurance Company
Everest Reinsurance Company
Genworth Life Insurance Co. of New York
Guardian Life Insurance Co. of America
Horizon Healthcare of New Jersey, Inc.
Horizon Healthcare Services, Inc.
Kingstone Insurance Company
Merchants Mutual Insurance Company
Metropolitan Life Insurance Company
Metropolitan Tower Life Insurance Company
MONY Life Insurance Company
New Jersey Manufacturers Insurance Co.
New York Life Insurance Company
Prudential Insurance Co. of America
Security Mutual Life Insurance Co. of NY
Selective Insurance Company of America
Selective Insurance Company of New York
Stratford Insurance Company
Teachers Ins. & Annuity Assoc. of America
The US Life Ins. Co. in the City of NY
Ticonderoga Insurance Company
Trans-Oceanic Life Insurance Company
Transamerica Financial Life Insurance Co.
Transatlantic Reinsurance Company
Triple-S Salud, Inc.
Triple-S Vida, Inc.
Tudor Insurance Company
Universal Insurance Company
Utica Mutual Insurance Company
Western World Insurance Company
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You have a vision for your financial future.
Our partnership can play a key role to help get you there.
Best’s Special Report:
Benefits of Partnering with the FHLBNY
Flexible Funding Source
Membership at the FHLBNY affords insurance companies access to a wide range of liquidity tools through the use of our various credit products called “advances.”
Members can gain access to low-cost, wholesale funding for financial flexibility and backup liquidity to help meet unexpected cash flow needs and manage risk and profitability.
Explore FHLBNY funding solutions to:
Meet liquidity and working capital needs
Augment income streams
Benefit from letters of credit and other products to enhance operating leverage
Increase earnings through strategic liquidity management and quarterly dividends
Finance capital, acquisition costs, or new facilities without liquidating earning assets
Manage cash flow needs
Grow investment income by reducing short-term liquidity balances and increasing invested asset balances
Fill liability maturity gaps and support match funding programs
Enhance operating leverage and liquidity with letters of credit as an alternative form of collateral
Secure grant money for low-income housing or community development projects
Access discounted community investment funds
Demonstrate an enhanced liquidity position to regulators and rating agencies
How are Insurance Companies Taking Advantage of Membership?
They typically use membership to fulfill the following needs:
Contingent and strategic liquidity
Match funding or pool funding
Asset and liability management
We also offer exclusive resources to our members for beneficial insight and education
Membership Eligibility Requirements
In order to be eligible for membership, your company will be:
Duly organized by law
Subject to inspection and regulation
Of sound financial condition
Committed to ensuring sound and economical financial policies
Able to purchase membership stock upon approval as outlined in the membership application
This worksheet will help calculate:
Initial FHLBNY Stock Subscription Amount
Financial Ratios & Real Estate Collateral Ratios
Contact a dedicated Relationship Manager that will help determine your insurance company’s membership needs (212) 441-6700
You have a vision for your financial future,
our partnership can play a key role to help get you there.
Insurers’ Funding Agreements With Federal Home Loan Banks Likely to Increase
Best’s Special Report