Special Report from Best: U.S. Life Insurance and Annuities Industry Posts 60% Increase in Net Income in Q1 2022
OLDWICK, NJ–(BUSINESS WIRE)–The U.S. annuity/life (L/A) industry saw net income rise 60% in the first three months of 2022 compared to the same period a year earlier, fueled by falling bonds taxes and realized capital losses. This financial review is detailed in a new Best Special Report“First Look: Three-Month 2022 US Life/Annuity Financial Results”, and the data is derived from the companies’ interim statutory statements for the three months of 2022 which were received as of June 6, 2022, representing approximately 91% of total Net Premiums Written of the L/A industry.
According to the report, total U.S. L/A revenue increased 3.9% over the prior year period, driven by a 2.7% increase in premiums and annuities and a 8.6% increase in net investment income. Total industry spending increased by 7.8%, with increases in buyout and other benefits leading to a 7.2% increase in incurred spending. The industry’s pre-tax net operating gain fell 30.4% to $15.0 billion, but the lower tax burden and a $10.2 billion decrease in losses in realized capital contributed to the surge in net income for the industry to $13.4 billion, from $8.4 billion in the first quarter of 2020.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=320670.
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