OLDWICK, N.J.–(BUSINESS WIRE)–The U.S. life/annuity (L/A) industry’s net income in the first quarter
of 2019 rose sharply over the prior-year period, to $14.9 billion from
$3.2 billion, due mainly to a significant decline in total expenses.
These preliminary financial results are detailed in a new Best’s
Special Report, titled, “First Look – Three Month 2019 Life/Annuity
Financial Results,” and the data is derived from companies’ three-month
2019 interim period statutory statements that were received by May 29,
2019, representing an estimated 93% of total industry premiums and
annuity considerations.
According to the report, the L/A industry’s total income for the first
three months of 2019 declined slightly by 1.3% from the prior-year
period, as net investment income remained unchanged and a $37.7 billion
increase in premiums and annuity considerations was negated by a $40.7
billion decline in other income.
However, a $12.8 billion decrease in incurred benefits, coupled with a
$9.8 billion reduction in general insurance and other expenses, and an
$8.5 billion reduction in net transfers to separate accounts drove a
$13.6 billion reduction in total expenses. Despite relatively flat
income, the decline in expenses resulted in pre-tax net operating gain
doubling from the prior-year period to $21.9 billion. A $2.0 billion
increase in federal and foreign taxes was offset by a $2.8 billion
reduction in net realized capital losses, boosting the total industry’s
net income.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=286083.
AM Best is the world’s oldest and most authoritative insurance rating
and information source. For more information, visit www.ambest.com.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
Contacts
Matthew Coppola
Associate Director
–
Corporate Data Management
+1 908 439 2200, ext. 5627
[email protected]
Christopher Sharkey
Manager, Public Relations
+1
908 439 2200, ext. 5159
[email protected]
Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644
[email protected]
