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

Complete revenue within the U.S. life/annuity trade basically 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 information is derived from firms’ six-month 2019 interim statutory statements that have been acquired as of Aug. 22, 2019, representing an estimated 95% of whole trade premiums and annuity issues.


In response to the report, a $24.9 billion improve in premiums and annuity issues in first-half 2019 was negated by a $26.zero billion decline in different revenue. These important swings have 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 acquire declined four.9% from the prior 12 months to $25.zero billion. A $1.2 billion improve in federal and overseas taxes and a $three.eight billion discount in web realized capital losses boosted whole trade web revenue by $1.four billion from the identical prior-year interval to $18.eight billion.


The development of decreased money and bond positions within the trade continued through 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 whole invested belongings.


To entry a replica of this particular report, please go to http://www3.ambest.com/bestweek/buy.asp?record_code=289072.


A.M. Finest is a world ranking company and data supplier with a singular concentrate on the insurance coverage trade. Go to www.ambest.com for extra info.


Copyright © 2019 by A.M. Finest Ranking Companies, Inc. and/or its associates. ALL RIGHTS RESERVED.

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