The U.S. life/annuity industry reported a 9.3% increase in total income during the first nine months of 2023 compared with a year earlier, driven by growth in premium and annuity considerations, as well as net investment income, according to a new AM Best report.

This financial review is detailed in a new Best’s Special Report, “First Look: Nine-Month 2023 Life/Annuity Financial Results,” and the data is derived from companies’ nine-month 2023 interim statutory statements that were received as of Dec. 8, representing an estimated 99% of total U.S. life/annuity industry premiums and annuity considerations.

According to the report, the U.S. life/annuity industry’s total income increased to $800.9 billion, up from $732.5 billion in the same prior year period. Total expenses for the industry increased 8.0%, largely due to a $48.1 billion increase in surrender benefits. The resulting pretax net operating gain of $56.0 billion increased 30.7% from the prior year period. Including $14.2 billion of net realized capital losses, the industry’s net income of $31.6 billion declined slightly from the same period in 2022.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=339000.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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