APRIL 08, 2022 08:02 AM (EDT)
Best’s Special Report: U.S. Life/Annuity Insurers’ Revenues Rebounded in 2021
|Michael Lynch |
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FOR IMMEDIATE RELEASE
OLDWICK - APRIL 08, 2022 08:02 AM (EDT)
Publicly traded U.S. life/annuity insurance companies saw a strong recovery in 2021, with net income more than tripling to $32.5 billion in 2021 from the previous year, driven largely by a 13% boost in revenue, according to a new AM Best report.
According to the report, the industry saw a $35 billion increase in revenue to $297.5 billion in 2021, coming on the back of a modest increase in premiums, as well as increases in net investment income and realized gains. Companies continue to perform relatively well despite volatility in mortality from COVID-19 and still consider COVID-19 mortality as having an earnings impact rather than a balance sheet impact, suggesting no significant changes to reserves. Most carriers continue to experience higher mortality rates than usual; in 2021, mortality was higher for working-age populations, which affected individual and group life claims.
Other report highlights include:
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=318961 .
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.