Best’s Special Report: U.S. Life/Annuity Insurers’ Revenues Rebounded in 2021
Publicly traded
According to the report, the industry saw a
Other report highlights include:
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Net investment income rose by roughly
$11.9 billion to$85.7 billion . The persistent drag from the low interest rate environment continues to impact margins, but ongoing growth in general account invested assets, aided by premium growth and assets under management, has pushed investment income higher. - Of the 17 publicly traded companies in the analysis, 13 experienced a decline in capital, amounting to an overall 5% decrease. Share buybacks, which were halted during the pandemic, resumed in 2021; the return of share repurchases, as well as a modest increase in dividends paid, contributed to the decline in capital.
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Total debt among publicly traded life/annuity insurers remained essentially flat in 2021 at
$85.7 billion . Most of the companies that have been able to take advantage of the low interest rate environment and issue long-term debt have already done so, either to fund business growth or for upcoming maturities. - Investors continue to shift to indexed products from fixed-rate ones to seek protection from rising inflation. Traditional variable annuities experienced very strong growth, bolstered by favorable equity markets—while registered indexed-linked annuities continued the rapid growth of prior years.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=318961.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in
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Source: AM Best
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