Press Release - MARCH 12, 2020
Best’s Special Report: Preliminary 2019 Results Show 13% Net Income Increase for U.S. Life/Annuity Industry
FOR IMMEDIATE RELEASE
OLDWICK - MARCH 12, 2020
According to the report, the life/annuity industry’s total income for 2019 increased by 3.0% to $872.3 billion compared with the previous year, as a $59.5 billion increase in premiums and annuity considerations was offset by a $38.0 billion decline in other income. These significant swings were primarily the result of modified coinsurance agreements and the recapture of retrocessions from foreign affiliates at American General Life Insurance Company, Hannover Life Reassurance Company of America and United States Life Insurance in the City of New York.
Income growth slightly outpaced a 2.5% increase in total expenses, leading to a pre-tax operating gain of $55.1 billion, 11.8% higher than in the previous year. A $4.2 billion increase in taxes was offset by a $3.5 billion reduction in net realized capital losses, resulting in the $5.1-billion year-over-year increase in net income. Capital and surplus for the industry increased by 6.2% from the end of 2018, reaching $415.6 billion at year-end 2019.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=295354 .
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.