Insurance Companies and the Federal Home Loan Banks

You have a vision for your financial future,

our partnership can play a key role to help

get you there.

Note: There is no guarantee that the level of future dividends will
reflect the level of previous dividend payouts.

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. Over the last five years the FHLBNY paid an average dividend of 4.79%. This high performance is a testament to our dedication to provide value to our members.

› About the Federal Home Loan Banks

FHLBNY Insurance Company Members

› American Home Assurance Company
› Ameritas Life Insurance Corp. of NY
› AXA Equitable Life Insurance Company
› Cumberland Mutual Fire Insurance Company
› Genworth Life Insurance Co. of New York
› The Guardian Life Insurance Co. of America
› Horizon Healthcare Services, Inc.
› Kingstone Insurance Company
› Metropolitan Life Insurance Company
› MONY Life Insurance Company
› New Jersey Manufacturers Insurance Co.
› New York Life Insurance Company

› The 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
› Transatlantic Reinsurance Company
› Tudor Insurance Company
› Utica Mutual Insurance Company
› Western World Insurance Company

Whitepapers
Insurers' Funding Agreements With Federal Home Loan Banks Likely to Increase Business Wire Best's Special Report
Understanding the Relationship Between
Life Insurers and the FHLBanks Chicago Fed Letter Federal Reserve Bank of Chicago

Key Takeaways for Insurance Companies

Download our insurance company factsheet.

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 that may 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 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 Member Resource Center

More About Us and Becoming a Member

Strength in Numbers

The FHLBNY is a triple-A–rated, congressionally chartered, wholesale bank within the national Federal Home Loan Banks System.

As of December 31, 2017, the FHLBNY has recorded:

339 member institutions including commercial banks, thrifts, credit unions, community development financial institutions, and insurance companies in New York, New Jersey, Puerto Rico and the U.S. Virgin Islands
$158.9 billion in assets
$122.4 billion dollars in advances

› FHLBNY at a Glance

Membership Eligibility Requirements

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

Tools to Help You Determine Eligibility

Eligibility Worksheet (HLB-009)

This worksheet will help calculate:

Eligibility
Initial FHLBNY stock subscription amount
Financial ratios & real estate collateral ratios

› Application Process Checklist
› Forms & Agreements for New Members

Contact a dedicated Calling Officer that will help determine your insurance company's membership needs (212) 441-6700.