OLDWICK, N.J.--(BUSINESS WIRE)--The U.S. life/annuity (L/A) industry posted a 5.6% increase in net income to $36.8 billion in 2022, largely driven by increases in premiums and annuity considerations and other income. These preliminary results are detailed in a new Best’s Special Report, titled, “First Look: 2023 Life/Annuity Financial Results,” and the data is derived from companies’ annual statutory statements received as of April 3, 2023, representing an estimated 97% of the total L/A industry’s premiums and annuity considerations.
According to the report, the L/A industry’s total income rose 11% in 2022 from the prior year to $989.2 billion. Total expenses for the industry grew by 10.9% due to a $35.0 billion reduction in net transfers to separate accounts and a $42.8 billion increase in general insurance and other expenses, which led to a pretax net operating gain of $54.8 billion. Net realized capital losses of $10.2 billion, a 63% increase over 2021, contributed to the industry’s net income result.
Net income plus contributed capital and change in asset valuation reserve totaled $55.2 billion, but a change in unrealized losses, along with other changes in surplus and stockholder dividends amounted to $65.3 billion, resulting in 1.4% decline in industry capital and surplus from the end of 2021 to $473.5 billion.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=330319.
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