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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 10, 2024 09:54 AM (EST)
The U.S. life/annuity industry reported a 31% decline in net income during the first nine months of 2024 compared with the same prior-year period, driven largely by total expenses for the industry growing by 8.8%, according to a new AM Best report,
This financial review is detailed in a new Best’s Special Report, “First Look: Nine-Month 2024 Life/Annuity Financial Results,” and the data is derived from companies’ nine-month 2024 interim statutory statements that were received as of Dec. 4, representing an estimated 99% of total U.S. life/annuity industry premiums and annuity considerations.
According to the report, the U.S. life/annuity industry’s total income rose 5.3% from the prior-year period, driven by increases of 13.7% in premiums and annuity considerations and 9.6% in net investment income. A $63.0 billion increase in surrender and other benefits contributed heavily to the higher expenses, resulting in a pretax net operating gain of $31.6 billion, a decline of 43% from the first nine months of 2023. Despite an 80.5% reduction in net realized capital losses, the industry’s net income slid to $21.7 billion.
The life/annuity industry’s capital and surplus rose by 1.3% from year-end 2023 to $514.4 billion.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=349586.
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.