A.M. Best Special Report: Preliminary Nine-Month 2016 Net Operating Income for U.S. Life/Health Industry Lowest in Five Years

OLDWICK, N.J.--()--The U.S. life/health (L/H) industry reported a net operating income of $17.5 billion, the lowest in the last five nine-month year-to-date interim periods, and down 27.4% from the prior-year period, according to preliminary financial results. These results are detailed in a new Best’s Special Report, titled, “A.M. Best First Look – 3Qtr 2016 U.S. Life/Health Financial Results,” and the data is derived from companies’ statutory statements that were received as of Nov. 18, 2016. These financial results represent approximately 85% of the total U.S. L/H industry’s premiums and annuity considerations.

Although the trend of weakening operating performance continues for the U.S. L/H industry, core results included a net increase of $0.2 billion during the first nine months of 2016 over the period of 2015 for premiums, net investment income and amortization of the interest maintenance reserve. On the expense side, death, annuity and surrender benefits were down $3.1 billion, while direct commissions and expense allowances increased $0.4 billion and policyholder dividends increased by $0.7 billion.

Despite a 55% drop in net income, which was exacerbated by a $7.3 billion decline in realized capital gains, capital and surplus for the U.S. L/H industry reached a record $364.2 billion, as of Sept. 30, 2016. The U.S. L/H industry also saw continued growth in invested assets, reaching a record $3.7 trillion as of Sept. 30, 2016.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=256240.

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Copyright © 2016 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Matthew Coppola, +1 908 439 2200, ext. 5627
Associate Director
– Corporate Data Management
matthew.coppola@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Matthew Coppola, +1 908 439 2200, ext. 5627
Associate Director
– Corporate Data Management
matthew.coppola@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com