Press Release - MAY 30, 2019
Best’s Special Report: U.S. Life/Annuity Insurers’ Net Income Increases Sharply in First-Quarter 2019
FOR IMMEDIATE RELEASE
OLDWICK - MAY 30, 2019
According to the report, the L/A industry’s total income for the first three months of 2019 declined slightly by 1.3% from the prior-year period, as net investment income remained unchanged and a $37.7 billion increase in premiums and annuity considerations was negated by a $40.7 billion decline in other income.
However, a $12.8 billion decrease in incurred benefits, coupled with a $9.8 billion reduction in general insurance and other expenses, and an $8.5 billion reduction in net transfers to separate accounts drove a $13.6 billion reduction in total expenses. Despite relatively flat income, the decline in expenses resulted in pre-tax net operating gain doubling from the prior-year period to $21.9 billion. A $2.0 billion increase in federal and foreign taxes was offset by a $2.8 billion reduction in net realized capital losses, boosting the total industry’s net income.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=286083 .
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