Best’s Special Report: U.S. Life/Annuity Industry Sees Tenfold Increase in Net Income in First-Quarter 2025

OLDWICK, N.J.--(BUSINESS WIRE)--The U.S. life/annuity industry saw its net income increase significantly to $11.5 billion in the first quarter of 2025 compared with $1 billion in the same prior-year period, according to preliminary financial results. This financial review is detailed in a new AM Best report, “First Look: Three-Month 2025 US Life/Annuity Financial Results,” and the data is derived from companies’ three-month interim statutory statements that were received as of June 5, 2025, representing an estimated 93% of total industry premiums and annuity considerations.

According to the Best’s Special Report, total income increased by 4% compared with the first quarter of 2024, driven by a 140% increase in other income (largely driven by a company reserve adjustment) and a 12% increase in net investment income. Pretax net operating income grew by 124% over the same prior-year period to $14.7 billion. A 38% reduction in taxes, with net realized capital losses nearly cut in half, boosted the industry’s net income to more than 10 times from the same period in 2024.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=354706.

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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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