JUNE 10, 2022 07:05 AM (EDT)
Best’s Special Report: U.S. Life/Annuity Industry Posts 60% Net Income Increase in First-Quarter 2022
|Matthew Coppola |
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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 10, 2022 07:05 AM (EDT)
The U.S. life/annuity (L/A) industry saw its net income increase by 60% in the first three months of 2022 compared with the same prior-year period, fueled by declines in tax obligations and realized capital losses. This financial review is detailed in a new Best’s Special Report, “First Look: Three-Month 2022 U.S. Life/Annuity Financial Results,” and the data is derived from companies’ three-month 2022 interim statutory statements that were received as of June 6, 2022, representing an estimated 91% of the total L/A industry’s net premiums written.
According to the report, the U.S. L/A total income rose 3.9% from the prior-year period, driven by a 2.7% increase in premiums and annuity considerations and an 8.6% increase in net investment income. Total expenses for the industry grew 7.8%, as increases in surrender and other benefits drove a 7.2% rise in incurred expenses. The industry’s pretax net operating gain was down by 30.4% to $15.0 billion, but the lower tax burden and a $10.2 billion decrease in net realized capital losses contributed to the industry’s net income spike to $13.4 billion, compared with $8.4 billion in first-quarter 2020.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=320670 .
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.