Best’s News & Research Service - August 24, 2021 08:06 AM (EDT)
Best’s Special Report: First-Half 2021 Net Income Soars in U.S. Life/Annuity Insurance Industry
- August 24, 2021 08:06 AM (EDT)
Oldwick //BestWire// - Net income for U.S. life/annuity (L/A) insurance industry soared in the first half of 2021 on reduced expenses, rising to $18 billion from $1 billion in the same prior-year period, according to a new AM Best report.
This financial review is detailed in a new Best’s Special Report, titled, “First Look: Six-Month 2021 Life/Annuity Financial Results,” and the data is derived from companies’ six-month 2021 interim statutory statements that were received as of Aug. 19, 2021, representing an estimated 93% of the total L/A industry’s net premiums written.
The report states that during first-half 2021, total income declined 5.9% from the prior-year period, as increases in commissions and expense allowances, along with net investment income, were countered by declines in premiums and annuity considerations and other income. However, total expenses for the industry decreased 14.4%, due mainly to a 48.3% decline in other incurred benefits that was driven by significant swings in aggregate reserves for life and accident and health insurance contracts. A $6.1 billion increase in tax obligations and $12.9 billion decrease in net realized capital gains contributed to the industry’s net income gain.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=311945
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.