Fitch Releases Special Report on U.S. Life Insurers' Midyear GAAP Results

CHICAGO--()--Link to Fitch Ratings' Report: U.S. Life Insurance GAAP Results Dashboard
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=870656

Fitch Ratings today released a special report summarizing GAAP results for U.S. life insurance companies.

In this report, Fitch analyzes key drivers for first-half 2015 operating results for publicly traded life insurance organizations. The report compiles data from 17 publicly traded life insurers in Fitch's debt rating universe.

Pre-tax operating income increased a modest 2% for GAAP reporting companies in Fitch's rating universe in first-half 2015, as higher fee income was partially offset by lower investment margins and unfavorable mortality.

Operating profitability for the U.S. life insurance industry remained relatively flat during first-half 2015 with average operating ROE of 12.8% in first-half 2015 compared with 12.7% in the prior-year period.

Variable annuities, retirement plans and asset management segments continued to benefit from higher account values caused by strong equity markets and solid sales during first-half 2015. Results in individual life and fixed annuities were adversely affected by unfavorable mortality and continued interest margin compression during the period. The group benefits business benefited from favorable claims experience but continues to face competitive pricing pressure.

The full report 'U.S. Life Insurance - GAAP Results' dated Sept. 3, 2015, is available at 'www.fitchratings.com' under 'Insurance' and 'Special Reports'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria

Insurance Rating Methodology (pub. 14 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=868367

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Contacts

Fitch Ratings
Dafina M. Dunmore, CFA
Director
+1-312-368-3136
Fitch Ratings, Inc.
70 West Madison St.
Chicago, IL 60602
or
Jamie R. Tucker, CPA
Associate Director
+1-212-612-7856
or
Douglas R. Baker
Analyst
+1-312-368-3207
or
Media Relations:
Alyssa Castelli, New York, +1 212-908-0540
Email: alyssa.castelli@fitchratings.com

Contacts

Fitch Ratings
Dafina M. Dunmore, CFA
Director
+1-312-368-3136
Fitch Ratings, Inc.
70 West Madison St.
Chicago, IL 60602
or
Jamie R. Tucker, CPA
Associate Director
+1-212-612-7856
or
Douglas R. Baker
Analyst
+1-312-368-3207
or
Media Relations:
Alyssa Castelli, New York, +1 212-908-0540
Email: alyssa.castelli@fitchratings.com