LIFE/HEALTH INSURANCE INDUSTRY INCOME STATEMENT, 2008-2012

($ billions, end of year)

  2008 2009 2010 2011 2012 Percent change,
2011-2012 (1)
Revenue            
Life insurance premiums $142.7 $120.6 $100.3 $122.8 $130.6 6.3%
Annuity premiums and deposits 323.0 225.5 286.3 327.0 339.9 4.0
Accident and health premiums 154.5 160.0 167.8 168.3 170.7 1.4
Credit life and credit accident and health premiums 2.1 1.6 1.6 1.6 1.6 -1.7
Other premiums and considerations 0.8 0.5 23.1 2.1 2.2 8.5
Total premiums, consideration and deposits $623.1 $508.2 $579.1 $621.8 $645.0 3.7%
Net investment income 162.2 156.6 164.1 167.3 166.8 -0.3
Reinsurance allowance 17.8 61.5 -29.3 -16.3 -30.8 89.2
Separate accounts revenue 21.2 20.4 23.4 26.1 29.5 13.2
Other income 20.4 30.0 36.0 36.1 41.5 15.2
Total revenue $844.7 $776.7 $773.3 $835.0 $852.1 2.1%
Expense            
Benefits 238.4 242.2 245.2 252.8 257.8 2.0
Surrenders 291.5 228.7 216.8 237.3 245.7 3.6
Increase in reserves 144.2 99.2 96.2 141.2 83.8 -40.7
Transfers to separate accounts 22.7 11.1 29.3 32.4 61.6 89.8
Commissions 51.6 48.9 49.3 51.8 53.1 2.4
General and administrative expenses 53.3 54.0 56.6 58.3 59.3 1.7
Insurance taxes, licenses and fees 7.3 7.2 7.7 8.0 8.2 3.0
Other expenses 17.2 7.2 2.2 8.1 6.7 -17.9
Total expenses $826.1 $698.4 $703.3 $790.0 $776.1 -1.8%
Net income            
Policyholder dividends 17.7 15.0 15.0 15.1 15.2 0.7
Net gain from operations before Federal income tax -1.4 61.0 53.1 28.0 60.5 116.0
Federal income tax -0.1 10.7 9.0 5.1 10.2 101.0
Net income before capital gains
-$1.4 $50.3 $44.1 $22.9 $50.3 119.8%
Net realized capital gains (losses) -50.9 -28.7 -16.0 -8.5 -9.4 10.7
Net income -$52.3 $21.5 $28.0 $14.4 $40.9 184.6%
Pre-tax operating income -1.4 61.0 53.1 28.0 60.5 116.0

(1) Calculated from unrounded data.

Source: SNL Financial LC.