Best’s Special Report: U.S. Life/Annuity Industry’s Net Income Drops 80% in First-Quarter 2024
- June 17, 2024 11:10 AM (EDT)
//BestWire// - The U.S. life/annuity industry saw its net income drop by 80% in the first quarter of 2024 compared with the same prior-year period, according to preliminary financial results. This financial review is detailed in a new AM Best report, “First Look: Three-Month 2024 US Life/Annuity Financial Results,” and the data is derived from companies’ three-month 2024 interim statutory statements that were received as of June 7, 2024, representing an estimated 98% of total industry premiums and annuity considerations.
According to the Best’s Special Report, the U.S. life/annuity segment saw total revenue increase 16% over first-quarter 2023, driven by a 21% increase in premiums and annuity considerations, a 44% rise in other income and an 8% increase in net investment income. However, expenses for the life/annuity segment increased by just shy of 20%, largely due to a $40.9 billion increase in surrender and other benefits. The resulting pretax net operating gain of $6.9 billion is half of what the industry recorded in the same prior-year period. Factoring in $2.5 billion of net realized capital losses, the industry’s net income of $1.6 billion represents a $6.5 billion decline from the same period in 2023.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=343763 .
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.