September 26, 2025 Reinsurance

Best’s Special Report: First-Half 2025 Net Income in U.S. Life/Annuity Insurance Industry Increases by Nearly 40%

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
Net income for the U.S. life/annuity (L/A) insurance industry increased by 39% in the first half of 2025 over the same prior-year period to $19.7 billion, according to a new AM Best report.

This financial review is detailed in a new Best’s Special Report, titled, “First Look: Six-Month 2025 US Life/Annuity Financial Results,” and the data is derived from companies’ six-month 2024 interim statutory statements that were received as of Sept. 8, representing an estimated 96% of total industry premiums and annuity considerations.

The L/A industry’s total income increased by 10.9% from the same prior-year period, driven by a 6% increase in premiums and annuity considerations and a 9% increase in net investment income. In addition, other income nearly doubled to nearly $50 billion, though this was largely due to $19.7 billion of reserve adjustments on reinsurance ceded at American United Life Insurance Co. Factoring in a 10.2% increase in total industry expenses, the six-month 2025 pretax net operating result was $27.5 billion, which was 30% higher than the first half of 2024. Taxes dropped by nearly 30% but were offset by an increase in realized capital losses. Net income of $19.7 billion for the six-month period was $5.5 billion higher than that recorded in the same prior-year period.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=358276.

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.