|Matthew Coppola |
Director, Data Management
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Associate Director, Public Relations
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Senior Public Relations Specialist
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FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 25, 2023 08:18 AM (EDT)
Net income for U.S. life/annuity (L/A) insurance industry decreased by 39.5% in the first half of 2023, dropping to $13.2 billion from $21.9 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 2023 U.S. Life/Annuity Financial Results,” and the data is derived from companies’ six-month 2023 interim statutory statements that were received as of Sept. 7, 2023, representing an estimated 98% of total industry premiums and annuity considerations.
The drop in net income was driven partly by $9.4 billion in net realized capital losses, according to the report. Total income in the L/A industry rose 11.6% to $528.9 billion from the prior-year period, driven by a 13.8% increase in premiums and annuity considerations and a 3.9% increase in net investment income. A resulting pretax net operating gain of $29.6 billion reflected an 18.8% increase from the prior year period.
Capital and surplus declined slightly from the end of 2022 to $480.7 billion, as $22.7 billion of net income, change in unrealized gains, contributed capital, and other changes in surplus were reduced by $25.0 billion, consisting of a change in asset valuation reserve and stockholder dividends.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=336004 .
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.