AM Best Information Services

DECEMBER 07, 2021 10:39 AM (EST)

Best’s Special Report: U.S. Life/Annuity Insurance Industry Doubles Net Income in Nine-Month 2021 Period

 Matthew Coppola
Director, Data Management
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Christopher Sharkey
Manager, Public Relations
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Jim Peavy
Director, Communications
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OLDWICK - DECEMBER 07, 2021 10:39 AM (EST)
The U.S. life/annuity (L/A) industry doubled its net income in the first nine months of 2021 to $26.1 billion, compared with the same prior-year period, according to a new AM Best report.

This financial review is detailed in a new Best’s Special Report, “First Look: Nine-Month 2021 Life/Annuity Financial Results,” and the data is derived from companies’ nine-month 2021 interim statutory statements that were received as of Dec. 1, representing an estimated 97% of total U.S. L/A industry premiums and annuity considerations.

According to the report, the U.S. L/A industry total income rose 6.6% from the prior-year period, driven by a 62% increase in other income, a 4.9% increase in net investment income and a 4.5% increase in premiums and annuity considerations.

The pretax net operating gain was $42.5 billion, up 153.3%. A $5.3 billion increase in tax obligations and an additional $7.3 billion of net realized capital losses contributed to the industry’s net income, up from $13.1 billion from the first nine months of 2020.

Capital and surplus rose by 6.7% from the end of 2020 to $468.0 billion, as $64.2 billion of net income, contributed capital, changes in unrealized gains and other changes in surplus were reduced by a $14.1 billion change in asset valuation reserve and $20.7 billion of stockholder dividends.

To access the full copy of this special report, please visit .

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.