III - Life/Health: Premiums By Line

INSURANCE

PREMIUMS BY LINE

Measured by premiums written, annuities are the largest life/health product line, followed by life insurance and health insurance (referred to in the industry as accident and health). Life insurance policies can be sold on an individual, or "ordinary," basis or to groups such as employees and associations. Accident and health insurance includes medical expense, disability income and long-term care. Other lines include credit life, which pays the balance of a loan if the borrower dies or becomes disabled, and industrial life, small policies whose premiums are generally collected by an agent on a weekly basis.

LIFE/HEALTH INSURANCE INDUSTRY PREMIUM BY LINE, 2002-2006

($ millions)

	2002		2005		2006
Lines of insurance	Direct premiums written (1)	Percent of total	Direct premiums written (1)	Percent of total	Direct premiums written (1)	Percent of total
Annuities
Ordinary individual annuities	$176,627.7	33.1%	$177,602.1	31.4%	$193,432.6	31.2%
Group annuities	101,886.8	19.1	110,951.6	19.6	117,152.7	18.9
Total	$278,514.5	52.1%	$288,553.6	51.0%	$310,585.2	50.1%
Life
Ordinary life	111,733.3	20.9	123,259.4	21.8	129,241.6	20.9
Group life	28,227.7	5.3	30,220.7	5.3	35,255.0	5.7
Credit life (group and individual)	1,778.3	0.3	1,597.7	0.3	1,555.7	0.3
Industrial life	306.0	0.1	250.2	(2)	239.6	(2)
Total	$142,045.2	26.6%	$155,328.1	27.5%	$166,291.9	26.8%
Accident and health (3)
Group	76,352.9	14.3	78,781.1	13.9	84,235.7	13.6
Other	35,315.2	6.6	40,084.6	7.1	57,169.3	9.2
Credit	1,869.5	0.3	1,495.2	0.3	1,430.7	0.2
Total	$113,537.6	21.3%	$120,360.9	21.3%	$142,835.7	23.0%
All other lines	91.5	(2)	1,325.0	0.2	0.1	(2)
Total, all lines	$534,188.8	100.0%	$565,567.7	100.0%	$619,712.9	100.0%
(1) Before reinsurance transactions. (2) Less than 0.1 percent. (3) Does not include A/H premiums reported on the P/C and health annual statements. Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC.

CREDIT LIFE INSURANCE

Credit life insurance, a form of decreasing term insurance, protects creditors such as banks. The borrower pays the premium, generally as part of the credit transaction, to cover the outstanding loan in the event he or she dies. The face value of a policy decreases as the loan is paid off until both equal zero. When loans are paid off early, premiums for the remaining term are returned to the policyholder. Credit accident and health, a similar product, provides a monthly income in the event the borrower becomes disabled.

CREDIT LIFE, AND CREDIT ACCIDENT AND HEALTH INSURANCE
DIRECT PREMIUMS WRITTEN, 1997-2006

($000)

Year	Credit life	Credit accident and health
1997	$1,969,079	$1,897,056
1998	1,998,488	1,798,194
1999	1,971,462	1,724,729
2000	1,849,655	1,675,327
2001	1,632,806	1,551,697
2002	1,251,275	1,331,639
2003	1,046,474	1,119,672
2004	1,150,182	1,156,540
2005	1,257,314	1,135,342
2006	1,091,659	1,012,255
Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC.

TOP TEN WRITERS OF VARIABLE ANNUITY CONTRACTS BY NEW SALES, 2006

($ millions)

Rank	Company	New sales
1	Teachers Insurance & Annuity Association	$13,671
2	John Hancock Life lnsurance Company (USA)	5,452
3	Jackson National Life Insurance Company	4,414
4	Variable Annuity Life Insurance Company	4,398
5	Pacific Life Insurance Company (Innovations Select)	4,182
6	RiverSource Life Insurance Company	3,478
7	Pacific Life Insurance Company (Value)	3,038
8	Hartford Life Insurance Company (Leaders)	2,919
9	Hartford Life Insurance Company (Leaders Outlook)	2,752
10	AXA EquitabIe Life Insurance Company	2,609
Source: VARDS/Morningstar.

TOP TEN PRODUCERS OF EQUITY INDEX ANNUITIES BY TOTAL SALES, 2006

($ millions)

Rank	Company	Total sales	Market share
1	Allianz Life	$6,681.4	26.37%
2	AVIVA	2,537.5	10.01
3	ING	2,303.2	9.09
4	Old Mutual	2,079.6	8.21
5	Midland National Life	2,003.1	7.91
6	American Equity	1,787.3	7.05
7	Equitrust	1,001.4	3.95
8	Jackson National Life	947.9	3.74
9	Jefferson-Pilot	871.8	3.44
10	Sun Life	731.1	2.89
Source: The Advantage Compendium.

HEALTH INSURANCE

According to the U.S. Census Bureau’s latest health insurance survey, 15.8 percent of the U.S. population lacked coverage in 2006, up from 15.3 percent in 2005.

THE NATION'S HEALTH CARE DOLLAR: 2006
WHERE IT COMES FROM (1)

(1) Does not add to 100 percent due to rounding.
(2) State Children’s Health Insurance Program.

Source: Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Statistics Group.

HEALTH INSURANCE COVERAGE STATUS AND TYPE OF COVERAGE BY SELECTED CHARACTERISTICS, 2006

(000)

				Covered by
	Total	Not covered at any time during the year	Some type of health insurance during the year	Private insurance	Employ-ment based	Own employ-ment based	Direct-purchase insurance	Govern-ment health plan
Total	296,824	46,995	249,829	201,690	177,152	93,150	27,066	80,270
By age
Under 18	74,101	8,661	65,440	47,906	44,257	209	3,890	22,109
18 to 24	28,405	8,323	20,081	17,030	13,768	5,406	1,736	4,006
25 to 34	39,868	10,713	29,154	25,814	24,009	18,193	2,160	4,460
35 to 44	42,762	8,018	34,744	31,531	29,463	21,035	2,788	4,409
45 to 54	43,461	6,642	36,819	33,250	30,868	22,406	3,297	5,182
55 to 64	32,191	4,095	28,096	24,255	21,701	15,989	3,276	6,122
65 and over	36,035	541	35,494	21,904	13,086	9,912	9,918	33,982
By region
Northeast	54,139	6,648	47,491	38,790	34,621	17,965	4,696	14,706
Midwest	65,491	7,458	58,034	48,742	42,787	21,860	6,361	17,100
South	108,030	20,486	87,544	69,209	60,912	32,753	9,267	30,100
West	69,163	12,403	56,760	44,949	38,832	20,572	6,741	18,364
Source: U.S. Census Bureau, Current Population Survey, 2007 Annual Social and Economic Supplement.

REASONS FOR NO HEALTH INSURANCE COVERAGE AMONG UNINSURED PERSONS UNDER AGE 65, 2004 (1)

(1) Persons might be counted in more than one category.
(2) Includes moved, self-employed, never had coverage, did not want or need coverage and other unspecified reasons.

Source: National Health Interview Survey, 2004, National Center for Health Statistics.

The number of people without health insurance increased from 44.8 million in 2005 to 47.0 million in 2006, according to the U.S. Census.

TOP TEN HEALTH INSURANCE COMPANIES
BY DIRECT PREMIUMS WRITTEN, 2006 (1)

($ millions)

Rank	Company	Direct premiums written	Market share (percent)
1	UnitedHealth Group	$56,019.3	12.40%
2	WellPoint Inc. Group	40,904.3	9.05
3	Humana Inc.	18,736.9	4.15
4	Aetna	18,423.8	4.08
5	HCSC Group	13,641.3	3.02
6	American Family Corp.	11,104.5	2.46
7	Highmark Inc.	10,590.7	2.34
8	Independence Blue Cross	9,552.7	2.11
9	CIGNA Health Group	8,377.2	1.85
10	Blue Cross Blue Shield of Michigan Group	7,981.7	1.77
(1) Includes data from the property/casualty, life/health, fraternal and health annual statements. Source: National Association of Insurance Commissioners (NAIC). Reprinted with permission.

HEALTH SAVINGS ACCOUNTS

Established in late 2003 by the Medicare Modernization Act, health savings accounts (HSAs) are designed to give consumers financial incentives to manage their own health expenses. An individual’s HSA must be coupled with a high-deductible health plan (HDHP). HSA funds may be used to cover current and future health care costs.

HEALTH SAVINGS ACCOUNT ENROLLMENT
(COVERED LIVES), 2005-2007 (1)

	March 2005	January 2006	January 2007
Individual market	556,000	855,000	1,106,000
Small group market	147,000	510,000	1,057,000
Large group market	162,000	679,000	2,044,000
Other group (2)	88,000	247,000	291,000
Other (3)	77,000	878,000	34,000
Total	1,031,000	3,168,000	4,532,000
(1) Includes health savings accounts (HSAs) and high deductible health plans (HDHPs). (2) Enrollment data for companies that did not break down their group membership into large and small group categories. (3) Enrollment data for companies that did not provide a breakdown of enrollees by market category. Source: America's Health Insurance Plans.

The number of people covered by HSA/HDHP products reached 4.5 million in January 2007, up 1.3 million from January 2006, according to a survey by America’s Health Insurance Plans.
The vast majority of enrollees in HSAs/HDHPs were in preferred provider organizations (PPOs), accounting for over 85 percent of all markets.

LONG-TERM CARE INSURANCE

Long-term care (LTC) insurance pays for services to help individuals who are unable to perform certain activities of daily living without assistance, or require supervision due to a cognitive impairment such as Alzheimer’s disease.

PERCENTAGE OF WORKERS WITH ACCESS TO LONG-TERM CARE INSURANCE, PRIVATE INDUSTRY, 1999-2006

Year	Percent
1999	6%
2000	7
2003	11
2004	11
2005	11
2006	12
Source: Employee Benefits Survey, U.S. Bureau of Labor Statistics.

According to the NAIC, 194 insurers wrote LTC insurance in 2005, including 11 p/c insurers, 23 health insurers, 6 fraternal insurers and 154 life, accident and health insurers.

TOP TEN LONG-TERM CARE INSURANCE COMPANIES BY DIRECT PREMIUMS EARNED, 2005

Rank	Company	State of domicile	Parent group	Direct premiums earned	Market share
1	John Hancock Life Insurance Co.	MA	John Hancock Group	$1,544,987,143	16.44%
2	Genworth Life Insurance Co.	DE	Genworth Financial Group	1,315,346,296	14.00
3	Metropolitan Life Insurance Co.	NY	Metropolitan Group	601,925,266	6.41
4	Continental Casualty Co.	IL	CNA Insurance Group	585,978,983	6.24
5	Bankers Life & Casualty Co.	IL	Conseco Group	520,143,941	5.54
6	Unum Life Insurance Co. Of America	ME	UnumProvident Corporation Group	388,402,208	4.13
7	Conseco Senior Health Insurance Co.	PA	Conseco Group	280,281,419	2.98
8	Penn Treaty Network America Ins. Co.	PA	Penn Treaty American Group	275,825,664	2.94
9	Metlife Insurance Co. of CT	CT	Metropolitan Group	253,897,635	2.70
10	IDS Life Insurance Co.	MN	Ameriprise Financial Group	219,371,830	2.33
Source: National Association of Insurance Commissioners (NAIC). Reprinted with permission. Further reprint or redistribution strictly prohibited without written permission of NAIC.