According to a new report from AM Best, the net income of the US annuity/life industry has increased by more than 50% compared to the same period last year.
The report also showed that total revenue for the US annuity/life industry increased 3.9% over the prior year period, with premiums and annuities up 2.7%, and 8.6% increase in net investment income being the main drivers of the increase. .
At the same time, total industry spending grew strongly with an increase of 7.8%, while increases in buy-backs and other benefits led to a 7.2% increase in incurred spending.
However, the resulting pretax net operating gain was $15 billion, down 30.4%, a significant drop from the $21.6 billion period last year.
In addition, a $1.4 billion decrease in tax liabilities and a $10.2 billion decrease in net realized capital losses were strong contributors to the industry’s net profit of $13.4 billion.
Additionally, capital and surplus decreased 1.1% from the end of 2021 to $478.9 billion, while $18.9 billion of net income, capital contribution and change in asset valuation reserve were reduced by $24 billion.
AM Best also noted that holdings of cash and short-term investments were down 11.9% from the end of 2021, while investments in mortgages were up 2.7% from the end of 2021. end of 2021.
Additionally, this report comes shortly after the ratings agency recently released another report which highlighted how publicly traded U.S. life/annuity insurers experienced a strong recovery in 2021, rising $35 billion. dollars in revenue to $297.5 billion.
Meanwhile, the rating agency also released another recent report that discusses how integrated insurance is gaining popularity globally.