This financial review is detailed in a new Best’s Special Report, titled, “First Look: Six-Month 2023 U.S. Life/Annuity Financial Results,” and the data is derived from companies’ six-month 2023 interim statutory statements that were received as of Sept. 7, 2023, representing an estimated 98% of total industry premiums and annuity considerations.

The drop in net income was driven partly by $9.4 billion in net realized capital losses, according to the report. Total income in the L/A industry rose 11.6% to $528.9 billion from the prior-year period, driven by a 13.8% increase in premiums and annuity considerations and a 3.9% increase in net investment income. A resulting pretax net operating gain of $29.6 billion reflected an 18.8% increase from the prior year period.

Capital and surplus declined slightly from the end of 2022 to $480.7 billion, as $22.7 billion of net income, change in unrealized gains, contributed capital, and other changes in surplus were reduced by $25.0 billion, consisting of a change in asset valuation reserve and stockholder dividends.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=336004.

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