2011 - Year End Results (Life Insurance Industry)

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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.

 

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