September 20, 2024 Newswires

Best’s Special Report: First-Half 2024 Net Income in U.S. Life/Annuity Insurance Industry Increases by 7%

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
Net income for the U.S. life/annuity (L/A) insurance industry increased by 7.1% in the first half of 2024 over the same prior-year period to $14.1 billion, driven largely by lower realized capital losses, according to a new AM Best report.

This financial review is detailed in a new Best’s Special Report, titled, “First Look: Six-Month 2024 US Life/Annuity Financial Results,” and the data is derived from companies’ six-month 2024 interim statutory statements that were received as of Sept. 10, representing an estimated 99% of total industry premiums and annuity considerations.

The L/A industry’s total income increased by 7.7% from the first half of 2023 to $578.3 billion, as premiums and annuity considerations increased by 10.6% and net investment income rose by 10.0%. Total expenses for the industry increased by nearly 10%, largely due to a $55.6 billion spike in surrender and other benefits. As a result, the pretax net operating gain of $21.8 billion represented a 26% decline from the same prior-year period. However, given an 80% reduction in net realized capital losses, the industry’s net income rose by 7.1% over 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=346917.

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. For more information, visit www.ambest.com.