OLDWICK, N.J.--(BUSINESS WIRE)--Net income for U.S. life/annuity (L/A) insurance industry increased by 62% in the first half of 2021, rising to $20.9 billion from $12.9 billion in the same prior-year period, according to a new AM Best report.
This financial review is detailed in a new Best’s Special Report, titled, “First Look: Six-Month 2022 U.S. Life/Annuity Financial Results,” and the data is derived from companies’ six-month 2022 interim statutory statements that were received as of Sept. 8, 2022, representing an estimated 99% of total industry premiums and annuity considerations.
Total income in the L/A industry rose 3.2% to $478.8 billion from the prior-year period, driven by a 5.3% increase in net investment income and 161.9% rise in other income. Total expenses for the industry grew 4.6%, largely due to a $12.2 billion reduction in net transfers to separate accounts. The resulting pretax net operating gain was $24.1 billion, down 18.0% from first-half 2021. A $1.6 billion decrease in tax obligations and $11.7 billion decline in net realized capital losses contributed to the industry’s net income of $20.9 billion. Capital and surplus declined 1.9% from the end of 2021, to $481.1 billion.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=323829.
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