INSURANCE COMPANIES

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 2019.

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

Show Members List

American Home Assurance Company	New York Life Insurance Company
Ameritas Life Insurance Corp. of New York	Prudential Insurance Company of America
Build America Mutual Assurance Company	SBLI USA Life Insurance Company, Inc.
Cooperativa de Seguros Múltiples de Puerto Rico	SCOR Reinsurance Company
Cumberland Mutual Fire Insurance Company	Security Mutual Life Insurance Company of New York
Empire HealthChoice Assurance, Inc.	Selective Insurance Company of America
Equitable Financial Life Insurance Company	Selective Insurance Company of New York
Everest Reinsurance Company	Spinnaker Insurance Company
Excellus Health Plan, Inc.	Sterling Insurance Company
Genworth Life Insurance Company of New York	Stratford Insurance Company
Gerber Life Insurance Company	Teachers Insurance and Annuity Association of America
Guardian Life Insurance Company of America	The United States Life Insurance Company in the City of New York
Horizon Healthcare of New Jersey, Inc.	Trans-Oceanic Life Insurance Company
Horizon Healthcare Services, Inc.	Transamerica Financial Life Insurance Company
Kingstone Insurance Company	Transatlantic Reinsurance Company
Lincoln Life & Annuity Company of New York	Triple-S Salud, Inc.
MAPFRE PRAICO Insurance Company	Triple-S Vida, Inc.
Merchants Mutual Insurance Company	Tudor Insurance Company
Metropolitan Life Insurance Company	Universal Insurance Company
Metropolitan Tower Life Insurance Company	Utica Mutual Insurance Company
MONY Life Insurance Company	Western World Insurance Company

Insurance Company Membership - 3Q21 Image

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

View our Credit Products

Key Benefits

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

Visit our Resource Center

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:

Eligibility
Initial FHLBNY Stock Subscription Amount
Financial Ratios & Real Estate Collateral Ratios

Tools to Help you Determine Eligibility

Eligibility Worksheet (HLB-009)

Contact a dedicated Relationship Manager that will help determine
your insurance company’s membership needs (212) 441-6700

Key Contacts

Alex Sornoza
VP, Member Relations and Business Development Officer

(212) 441-6708
[email protected]

You have a vision for your financial future.

Our partnership can play a key role to help get you there.

DOWNLOAD THE MEMBERSHIP APPLICATION

Whitepapers

Business Wire
Best’s Special Report:

Insurers’ Funding Agreements With Federal Home Loan Banks Likely to Increase