AM Finest: First-Half 2019 Earnings Flat For U.S. Life/Annuity Insurers


Complete earnings within the U.S. life/annuity business primarily remained flat within the first half of 2019, dropping barely to $422.four billion in contrast with $424.6 billion in the identical prior-year interval.

This monetary assessment is detailed in a brand new Finest’s Particular Report, titled, “First Look—First Half 2019 Life/Annuity Monetary Outcomes,” and the info is derived from firms’ six-month 2019 interim statutory statements that had been acquired as of Aug. 22, 2019, representing an estimated 95% of complete business premiums and annuity concerns.

Based on the report, a $24.9 billion enhance in premiums and annuity concerns in first-half 2019 was negated by a $ billion decline in different earnings. These important swings had been largely the results of modified coinsurance agreements and the recapture of retrocessions from overseas associates at American Basic Life Insurance coverage Firm, United States Life Insurance coverage within the Metropolis of New York and Hannover Life Reassurance Firm of America.

As well as, pre-tax working achieve declined four.9% from the prior 12 months to $ billion. A $1.2 billion enhance in federal and overseas taxes and a $three.eight billion discount in web realized capital losses boosted complete business web earnings by $1.four billion from the identical prior-year interval to $18.eight billion.

The development of lowered money and bond positions within the business continued in the course of the first half of 2019, with additional will increase to mortgage loans and different invested belongings. Mortgage loans, which have grown steadily over the first-half durations of the final 5 years, are up 44% from the primary six months of 2015 and now represent 12.eight% of complete invested belongings.

To entry a replica of this particular report, please go to

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