MEMBERSHIP
AMPLIFY
EN ESPAÑOL
Connect With Us
- Popular search terms
- Automobile
- Home + Renters
- Claims
- Fraud
- Hurricane
- Popular Topics
- Automobile
- Home + Renters
- The Basics
- Disaster + Preparation
- Life Insurance
The U.S. life insurance industry’s net income before capital gains dropped by 48.1 percent, from $44.1 billion in 2010 to $22.9 billion in 2011, according to SNL Financial data. This was nearly matched by a 48.8 percent drop in net income during the same period., Revenue increased by 8 percent in 2011, reflecting increases in annuity premiums and most types of life insurance premiums.
LIFE/HEALTH INSURANCE INDUSTRY INCOME STATEMENT, 2007-2011
($ billions, end of year)
|
|
2007 | 2008 | 2009 | 2010 | 2011 | Percent change, 2010-2011 (1) |
|---|---|---|---|---|---|---|
| Revenue | ||||||
| Life insurance premiums | $138.3 | $142.8 | $120.5 | $100.2 | $122.8 | 22.5% |
| Annuity premiums and deposits | 310.4 | 323.0 | 225.4 | 286.3 | 327.0 | 14.2 |
| Accident and health premiums | 143.5 | 156.6 | 162.4 | 169.9 | 171.0 | 0.7 |
| Credit life and credit accident and health premiums | 2.2 | 2.1 | 1.6 | 1.6 | 1.6 | 1.0 |
| Other premiums and considerations | 16.8 | 0.8 | 0.5 | 23.1 | 2.1 | -91.0 |
| Premiums, consideration and deposits | $611.2 | $625.2 | $510.4 | $581.2 | $623.9 | 7.3% |
| Net investment income | 168.0 | 162.2 | 156.6 | 164.1 | 167.3 | 1.9 |
| Reinsurance allowance | -22.4 | 17.8 | 61.5 | -29.3 | -16.3 | -44.5 |
| Separate accounts revenue | 22.9 | 21.2 | 20.4 | 23.4 | 26.1 | 11.7 |
| Other income | 35.3 | 18.3 | 27.8 | 33.9 | 34.0 | 0.2 |
| Total revenue | $815.1 | $844.7 | $776.7 | $773.3 | $835.0 | 8.0% |
| Expense | ||||||
| Benefits | 228.3 | 240.2 | 244.1 | 246.9 | 254.7 | 3.2 |
| Surrenders | 305.2 | 291.6 | 228.7 | 216.8 | 237.3 | 9.4 |
| Increase in reserves | 35.3 | 144.2 | 99.0 | 96.2 | 141.0 | 46.6 |
| Transfers to separate accounts | 66.1 | 22.7 | 11.1 | 29.3 | 32.4 | 10.8 |
| Commissions | 50.7 | 51.7 | 48.9 | 49.3 | 51.8 | 5.1 |
| General and administrative expenses | 52.1 | 53.6 | 54.2 | 56.8 | 58.5 | 3.0 |
| Insurance taxes, licenses and fees | 7.3 | 7.3 | 7.3 | 7.7 | 8.0 | 3.6 |
| Other expenses | 8.0 | 17.2 | 7.4 | 2.2 | 8.1 | 269.2 |
| Total expenses | $753.0 | $828.3 | $700.8 | $705.3 | $791.9 | 12.3% |
| Net income | ||||||
| Policyholder dividends | 17.5 | 17.7 | 15.0 | 15.0 | 15.1 | 0.8 |
| Net gain from operations before Federal income tax | 44.6 | -1.4 | 61.0 | 53.1 | 28.0 | -47.2 |
| Federal income tax | 11.5 | -0.1 | 10.7 | 9.0 | 5.1 | -43.3 |
| Net income before capital gains | 33.1 | -1.4 | 50.3 | 44.1 | 22.9 | -48.1% |
| Net realized capital gains (losses) | -1.5 | -50.9 | -28.7 | -16.0 | -8.5 | -46.8 |
| Net income | $31.6 | -$52.3 | $21.5 | $28.0 | $14.4 | -48.8% |
| Pre-tax operating income | 44.6 | -1.4 | 61.0 | 53.1 | 28.0 | -47.2 |
(1) Calculated from unrounded data.
Source: SNL Financial LC.