OLDWICK, N.J.--(BUSINESS WIRE)--The U.S. life/health industry’s total income for year-end 2017 dropped just 2.8% from the prior year, as a $7.9 billion improvement in net investment income helped offset declines in premiums and annuity considerations and commissions and expense allowances on reinsurance ceded, as well as other income. These preliminary financial results are detailed in a new Best’s Special Report, titled, “First Look – 2017 U.S. Life/Health Financial Results,” and the data is derived from companies’ annual statutory statements that were received by Mar. 13, 2018, representing an estimated 89% of total industry premiums and annuity considerations.
According to the report, notable changes in premium and annuity considerations in 2017 include a combined $17.0 billion decline reported by Prudential Annuities Life Assurance Corporation and MetLife, Inc., a total decline of $27.1 billion at Transamerica Life Insurance Company and Forethought Life Insurance Company, related to reinsurance agreements entered into in 2017 and a $14.7 billion increase at AGC Life Insurance Company, as $14.0 billion of reserves were ceded in 2016.
Pretax net operating gain for the industry declined to $53.2 billion in 2017, down 14.6% from the prior year. A $4.6 billion reduction in federal and foreign taxes and a $4.0 billion decrease in net realized losses resulted in 2017 total industry net income declining just 1.4% from 2016 to $33.9 billion. Capital and surplus for the industry increased $11.2 billion, reaching $372.5 billion as of year-end 2017.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=271766.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
